[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6 Engrossed Amendment House (EAH)]

                In the House of Representatives, U. S.,

                                                      December 6, 2007.
    Resolved, That the House agree to the amendments of the Senate to 
the bill (H.R. 6) entitled ``An Act to reduce our Nation's dependency 
on foreign oil by investing in clean, renewable, and alternative energy 
resources, promoting new emerging energy technologies, developing 
greater efficiency, and creating a Strategic Energy Efficiency and 
Renewables Reserve to invest in alternative energy, and for other 
purposes'', with the following

                 HOUSE AMENDMENTS TO SENATE AMENDMENTS:

            In lieu of the matter proposed to be inserted by the 
      amendment of the Senate to the text of the bill, insert the 
      following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Relationship to other law.

     TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

     Subtitle A--Increased Corporate Average Fuel Economy Standards

Sec. 101. Short title.
Sec. 102. Average fuel economy standards for automobiles and certain 
                            other vehicles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and heavy-
                            duty truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling 
                            procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.

                Subtitle B--Improved Vehicle Technology

Sec. 131. Transportation electrification.
Sec. 132. Domestic manufacturing conversion grant program.
Sec. 133. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 134. Loan guarantees for fuel-efficient automobile parts 
                            manufacturers.
Sec. 135. Advanced battery loan guarantee program.
Sec. 136. Advanced technology vehicles manufacturing incentive program.

                   Subtitle C--Federal Vehicle Fleets

Sec. 141. Federal vehicle fleets.
Sec. 142. Federal fleet conservation requirements.

   TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

                  Subtitle A--Renewable Fuel Standard

Sec. 201. Definitions.
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodiesel labeling.
Sec. 206. Study of credits for use of renewable electricity in electric 
                            vehicles.
Sec. 207. Grants for production of advanced biofuels.
Sec. 208. Integrated consideration of water quality in determinations 
                            on fuels and fuel additives.
Sec. 209. Anti-backsliding.
Sec. 210. Effective date, savings provision, and transition rules.

             Subtitle B--Biofuels Research and Development

Sec. 221. Biodiesel.
Sec. 222. Biogas.
Sec. 223. Grants for biofuel production research and development in 
                            certain States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E-85 
                            fuel.
Sec. 226. Study of engine durability and performance associated with 
                            the use of biodiesel.
Sec. 227. Study of optimization of biogas used in natural gas vehicles.
Sec. 228. Algal biomass.
Sec. 229. Biofuels and biorefinery information center.
Sec. 230. Cellulosic ethanol and biofuels research.
Sec. 231. Bioenergy research and development, authorization of 
                            appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.

                  Subtitle C--Biofuels Infrastructure

Sec. 241. Prohibition on franchise agreement restrictions related to 
                            renewable fuel infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
Sec. 245. Study of the adequacy of transportation of domestically-
                            produced renewable fuel by railroads and 
                            other modes of transportation.
Sec. 246. Federal fleet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biofuels infrastructure.

                  Subtitle D--Environmental Safeguards

Sec. 251. Waiver for fuel or fuel additives.

TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND 
                                LIGHTING

                Subtitle A--Appliance Energy Efficiency

Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procedures.
Sec. 303. Residential boilers.
Sec. 304.  Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and clarifying 
                            State authority.
Sec. 306. Regional standards for furnaces, central air conditioners, 
                            and heat pumps.
Sec. 307. Procedure for prescribing new or amended standards.
Sec. 308. Expedited rulemakings.
Sec. 309. Battery chargers.
Sec. 310. Standby mode.
Sec. 311. Energy standards for home appliances.
Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor efficiency standards.
Sec. 314. Standards for single package vertical air conditioners and 
                            heat pumps.
Sec. 315. Improved energy efficiency for appliances and buildings in 
                            cold climates.
Sec. 316. Technical corrections.

                 Subtitle B--Lighting Energy Efficiency

Sec. 321. Efficient light bulbs.
Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy 
                            systems.
Sec. 324. Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic products.

           TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

Sec. 401. Definitions.

              Subtitle A--Residential Building Efficiency

Sec. 411. Reauthorization of weatherization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured housing.

           Subtitle B--High-Performance Commercial Buildings

Sec. 421. Commercial high-performance green buildings.
Sec. 422. Zero Net Energy Commercial Buildings Initiative.
Sec. 423. Public outreach.

             Subtitle C--High-Performance Federal Buildings

Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Federal 
                            buildings.
Sec. 433. Federal building energy efficiency performance standards.
Sec. 434. Management of Federal building efficiency .
Sec. 435. Leasing.
Sec. 436. High-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runoff requirements for Federal development 
                            projects.
Sec. 439. Cost-effective technology acceleration program.
Sec. 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.

                Subtitle D--Industrial Energy Efficiency

Sec. 451. Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.

              Subtitle E--Healthy High-Performance Schools

Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.

                   Subtitle F--Institutional Entities

Sec. 471. Energy sustainability and efficiency grants and loans for 
                            institutions.

                Subtitle G--Public and Assisted Housing

Sec. 481. Application of International Energy Conservation Code to 
                            public and assisted housing.

                     Subtitle H--General Provisions

Sec. 491. Demonstration project.
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency demonstration grant program 
                            for local governments.
Sec. 494. Green Building Advisory Committee.
Sec. 495. Advisory Committee on Energy Efficiency Finance.

     TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

               Subtitle A--United States Capitol Complex

Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E-85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master 
                            plan.
Sec. 504. Promoting maximum efficiency in operation of Capitol power 
                            plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility 
                            study and demonstration projects.

           Subtitle B--Energy Savings Performance Contracting

Sec. 511. Authority to enter into contracts; reports.
Sec. 512. Financing flexibility.
Sec. 513. Promoting long-term energy savings performance contracts and 
                            verifying savings.
Sec. 514. Permanent reauthorization.
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy 
                            efficiency contracts.
Sec. 518. Study of energy and cost savings in nonbuilding applications.

           Subtitle C--Energy Efficiency in Federal Agencies

Sec. 521. Installation of photovoltaic system at Department of Energy 
                            headquarters building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.

          Subtitle D--Energy Efficiency of Public Institutions

Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy efficiency programs.

      Subtitle E--Energy Efficiency and Conservation Block Grants

Sec. 541. Definitions.
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 544. Use of funds.
Sec. 545. Requirements for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
Sec. 548. Funding.

             TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

                        Subtitle A--Solar Energy

Sec. 601. Short title.
Sec. 602. Thermal energy storage research and development program.
Sec. 603. Concentrating solar power commercial application studies.
Sec. 604. Solar energy curriculum development and certification grants.
Sec. 605. Daylighting systems and direct solar light pipe technology.
Sec. 606. Solar Air Conditioning Research and Development Program.
Sec. 607. Photovoltaic demonstration program.

                     Subtitle B--Geothermal Energy

Sec. 611. Short title.
Sec. 612. Definitions.
Sec. 613. Hydrothermal research and development.
Sec. 614. General geothermal systems research and development.
Sec. 615. Enhanced geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and 
                            recovery and production of geopressured gas 
                            resources.
Sec. 617. Cost sharing and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619. GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 621. Reports.
Sec. 622. Applicability of other laws.
Sec. 623. Authorization of appropriations.
Sec. 624. International geothermal energy development.
Sec. 625. High cost region geothermal energy grant program.

   Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies

Sec. 631. Short title.
Sec. 632. Definition.
Sec. 633. Marine and hydrokinetic renewable energy research and 
                            development.
Sec. 634. National Marine Renewable Energy Research, Development, and 
                            Demonstration Centers.
Sec. 635. Applicability of other laws.
Sec. 636. Authorization of appropriations.

    Subtitle D--Energy Storage for Transportation and Electric Power

Sec. 641. Energy storage competitiveness.

                  Subtitle E--Miscellaneous Provisions

Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for clean coal power Initiative.
Sec. 654. H-Prize.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.

              TITLE VII--CARBON CAPTURE AND SEQUESTRATION

Subtitle A--Carbon Capture and Sequestration Research, Development, and 
                             Demonstration

Sec. 701. Short title.
Sec. 702. Carbon capture and sequestration research, development, and 
                            demonstration program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development grant program.

 Subtitle B--Carbon Capture and Sequestration Assessment and Framework

Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous 
                            oxide emissions from ecosystems.
Sec. 713. Carbon dioxide sequestration inventory.
Sec. 714. Framework for geological carbon sequestration on public land.

            TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY

                  Subtitle A--Management Improvements

Sec. 801. National media campaign.
Sec. 802. Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources 
                            to generate energy.
Sec. 807. Geothermal assessment, exploration information, and priority 
                            activities.

 Subtitle B--Prohibitions on Market Manipulation and False Information

Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trade Commission.
Sec. 814. Penalties.
Sec. 815. Effect on other laws.

                TITLE IX--INTERNATIONAL ENERGY PROGRAMS

Sec. 901. Definitions.

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

Sec. 911. United States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India, China, 
                            and other countries.
Sec. 913. United States trade missions to encourage private sector 
                            trade and investment.
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United States Trade and Development Agency.
Sec. 916. Deployment of international clean and efficient energy 
                            technologies and investment in global 
                            energy markets.
Sec. 917. United States-Israel energy cooperation.

           Subtitle B--International Clean Energy Foundation

Sec. 921. Definitions.
Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 924. Annual report.
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
Sec. 927. Authorization of appropriations.

                  Subtitle C--Miscellaneous Provisions

Sec. 931. Energy diplomacy and security within the Department of State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage 
                            contingent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.

                          TITLE X--GREEN JOBS

Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training 
                            program.

           TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE

                Subtitle A--Department of Transportation

Sec. 1101. Office of Climate Change and Environment.

                         Subtitle B--Railroads

Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III railroads.

                   Subtitle C--Marine Transportation

Sec. 1121. Short sea transportation initiative.
Sec. 1122. Short sea shipping eligibility for capital construction 
                            fund.
Sec. 1123. Short sea transportation report.

                          Subtitle D--Highways

Sec. 1131. Increased Federal share for CMAQ projects.
Sec. 1132. Distribution of rescissions.
Sec. 1133. Sense of Congress regarding use of complete streets design 
                            techniques.

               TITLE XII--SMALL BUSINESS ENERGY PROGRAMS

Sec. 1201. Express loans for renewable energy and energy efficiency.
Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy 
                            efficient technologies.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy 
                            efficient technologies and purchases.
Sec. 1205. Energy saving debentures.
Sec. 1206. Investments in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.

                         TITLE XIII--SMART GRID

Sec. 1301. Statement of policy on modernization of electricity grid.
Sec. 1302. Smart grid system report.
Sec. 1303. Smart grid advisory committee and smart grid task force.
Sec. 1304. Smart grid technology research, development, and 
                            demonstration.
Sec. 1305. Smart grid interoperability framework.
Sec. 1306. Federal matching fund for smart grid investment costs.
Sec. 1307. State consideration of smart grid.
Sec. 1308. Study of the effect of private wire laws on the development 
                            of combined heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid systems.

               TITLE XIV--RENEWABLE ELECTRICITY STANDARD

Sec. 1401. Renewable electricity standard.

   TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007

Sec. 1500. Short title; amendment of 1986 Code.

        Subtitle A--Clean Renewable Energy Production Incentives

            Part I--Provisions Relating to Renewable Energy

Sec. 1501. Extension and modification of renewable energy credit.
Sec. 1502. Production credit for electricity produced from marine 
                            renewables.
Sec. 1503. Extension and modification of energy credit.
Sec. 1504. Extension and modification of credit for residential energy 
                            efficient property.
Sec. 1505. Extension and modification of special rule to implement FERC 
                            and State electric restructuring policy.
Sec. 1506. New clean renewable energy bonds.

       Part II--Provisions Relating to Carbon Mitigation and Coal

Sec. 1507. Expansion and modification of advanced coal project 
                            investment credit.
Sec. 1508. Expansion and modification of coal gasification investment 
                            credit.
Sec. 1509. Seven-year applicable recovery period for depreciation of 
                            qualified carbon dioxide pipeline property.
Sec. 1510. Special rules for refund of the coal excise tax to certain 
                            coal producers and exporters.
Sec. 1511. Extension of temporary increase in coal excise tax.
Sec. 1512. Carbon audit of the tax code.

         Subtitle B--Transportation and Domestic Fuel Security

                            Part I--Biofuels

Sec. 1521. Credit for production of cellulosic biomass alcohol.
Sec. 1522. Expansion of special allowance to cellulosic biomass alcohol 
                            fuel plant property.
Sec. 1523. Modification of alcohol credit.
Sec. 1524. Extension and modification of credits for biodiesel and 
                            renewable diesel.
Sec. 1525. Clarification of eligibility for renewable diesel credit.
Sec. 1526. Provisions clarifying treatment of fuels with no nexus to 
                            the United States.
Sec. 1527. Comprehensive study of biofuels.

              Part II--Advanced Technology Motor Vehicles

Sec. 1528. Credit for new qualified plug-in electric drive motor 
                            vehicles.
Sec. 1529. Exclusion from heavy truck tax for idling reduction units 
                            and advanced insulation.

               Part III--Other Transportation Provisions

Sec. 1530. Restructuring of New York Liberty Zone tax credits.
Sec. 1531. Extension of transportation fringe benefit to bicycle 
                            commuters.

             Subtitle C--Energy Conservation and Efficiency

                 Part I--Conservation Tax Credit Bonds

Sec. 1541. Qualified energy conservation bonds.
Sec. 1542. Qualified forestry conservation bonds.

                          Part II--Efficiency

Sec. 1543. Extension and modification of energy efficient existing 
                            homes credit.
Sec. 1544. Extension and modification of energy efficient commercial 
                            buildings deduction.
Sec. 1545. Modifications of energy efficient appliance credit for 
                            appliances produced after 2007.
Sec. 1546. Seven-year applicable recovery period for depreciation of 
                            qualified energy management devices.

                      Subtitle D--Other Provisions

                      Part I--Forestry Provisions

Sec. 1551. Deduction for qualified timber gain.
Sec. 1552. Excise tax not applicable to section 1203 deduction of real 
                            estate investment trusts.
Sec. 1553. Timber REIT modernization.
Sec. 1554. Mineral royalty income qualifying income for timber REITs.
Sec. 1555. Modification of taxable REIT subsidiary asset test for 
                            timber REITs.
Sec. 1556. Safe harbor for timber property.

                         Part II--Exxon Valdez

Sec. 1557. Income averaging for amounts received in connection with the 
                            Exxon Valdez litigation.

                     Subtitle E--Revenue Provisions

Sec. 1561. Limitation of deduction for income attributable to domestic 
                            production of oil, gas, or a primary 
                            products thereof.
Sec. 1562. Elimination of the different treatment of foreign oil and 
                            gas extraction income and foreign oil 
                            related income for purposes of the foreign 
                            tax credit.
Sec. 1563. Seven-year amortization of geological and geophysical 
                            expenditures for certain major integrated 
                            oil companies.
Sec. 1564. Broker reporting of customer's basis in securities 
                            transactions.
Sec. 1565. Extension of additional 0.2 percent FUTA surtax.
Sec. 1566. Termination of treatment of natural gas distribution lines 
                            as 15-year property.
Sec. 1567. Time for payment of corporate estimated taxes.
Sec. 1568. Modification of penalty for failure to file partnership 
                            returns.

                    Subtitle F--Secure Rural Schools

Sec. 1571. Secure rural schools and community self-determination 
                            program.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. RELATIONSHIP TO OTHER LAW.

    Except to the extent expressly provided in this Act or an amendment 
made by this Act, nothing in this Act or an amendment made by this Act 
supersedes, limits the authority provided or responsibility conferred 
by, or authorizes any violation of any provision of law (including a 
regulation), including any energy or environmental law or regulation.

     TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

     Subtitle A--Increased Corporate Average Fuel Economy Standards

SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Ten-in-Ten Fuel Economy Act''.

SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN 
              OTHER VEHICLES.

    (a) Increased Standards.--Section 32902 of title 49, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``Non-Passenger Automobiles.--'' 
                and inserting ``Prescription of Standards by 
                Regulation.--'';
                    (B) by striking ``(except passenger automobiles)'' 
                in subsection (a); and
                    (C) by striking the last sentence;
            (2) by striking subsection (b) and inserting the following:
    ``(b) Standards for Automobiles and Certain Other Vehicles.--
            ``(1) In general.--The Secretary of Transportation, after 
        consultation with the Secretary of Energy and the Administrator 
        of the Environmental Protection Agency, shall prescribe 
        separate average fuel economy standards for--
                    ``(A) passenger automobiles manufactured by 
                manufacturers in each model year beginning with model 
                year 2011 in accordance with this subsection;
                    ``(B) non-passenger automobiles manufactured by 
                manufacturers in each model year beginning with model 
                year 2011 in accordance with this subsection;
                    ``(C) work trucks in accordance with subsection 
                (k); and
                    ``(D) commercial medium-duty or heavy-duty on-
                highway vehicles in accordance with subsection (l).
            ``(2) Fuel economy standards for automobiles.--
                    ``(A) Automobile fuel economy average for model 
                years 2011 through 2020.--The Secretary shall prescribe 
                a separate average fuel economy standard for passenger 
                automobiles and a separate average fuel economy 
                standard for non-passenger automobiles for each model 
                year beginning with model year 2011 to achieve a 
                combined fuel economy average for model year 2020 of at 
                least 35 miles per gallon for the total fleet of 
                passenger and non-passenger automobiles manufactured 
                for sale in the United States for that model year.
                    ``(B) Automobile fuel economy average for model 
                years 2021 through 2030.--For model years 2021 through 
                2030, the average fuel economy required to be attained 
                by each fleet of passenger and non-passenger 
                automobiles manufactured for sale in the United States 
                shall be the maximum feasible average fuel economy 
                standard for each fleet for that model year.
                    ``(C) Progress toward standard required.--In 
                prescribing average fuel economy standards under 
                subparagraph (A), the Secretary shall prescribe annual 
                fuel economy standard increases that increase the 
                applicable average fuel economy standard ratably 
                beginning with model year 2011 and ending with model 
                year 2020.
            ``(3) Authority of the secretary.--The Secretary shall--
                    ``(A) prescribe by regulation separate average fuel 
                economy standards for passenger and non-passenger 
                automobiles based on 1 or more vehicle attributes 
                related to fuel economy and express each standard in 
                the form of a mathematical function; and
                    ``(B) issue regulations under this title 
                prescribing average fuel economy standards for at least 
                1, but not more than 5, model years.
            ``(4) Minimum standard.--In addition to any standard 
        prescribed pursuant to paragraph (3), each manufacturer shall 
        also meet the minimum standard for domestically manufactured 
        passenger automobiles, which shall be the greater of--
                    ``(A) 27.5 miles per gallon; or
                    ``(B) 92 percent of the average fuel economy 
                projected by the Secretary for the combined domestic 
                and non-domestic passenger automobile fleets 
                manufactured for sale in the United States by all 
                manufacturers in the model year, which projection shall 
                be published in the Federal Register when the standard 
                for that model year is promulgated in accordance with 
                this section.''; and
            (3) in subsection (c)--
                    (A) by striking ``(1) Subject to paragraph (2) of 
                this subsection, the'' and inserting ``The''; and
                    (B) by striking paragraph (2).
    (b) Fuel Economy Standard for Work Trucks.--Section 32902 of title 
49, United States Code, is amended by adding at the end the following:
    ``(k) Work Trucks.--
            ``(1) Study.--Not later than 1 year after the date of the 
        enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of 
        Transportation, in consultation with the Secretary of Energy 
        and the Administrator of the Environmental Protection Agency, 
        shall examine the fuel efficiency of work trucks and 
        determine--
                    ``(A) the appropriate test procedures and 
                methodologies for measuring the fuel efficiency of work 
                trucks;
                    ``(B) the appropriate metric for measuring and 
                expressing work truck fuel efficiency performance, 
                taking into consideration, among other things, the work 
                performed by work trucks and types of operations in 
                which they are used;
                    ``(C) the range of factors, including, without 
                limitation, design, functionality, use, duty cycle, 
                infrastructure, and total overall energy consumption 
                and operating costs that affect work truck fuel 
                efficiency; and
                    ``(D) such other factors and conditions that could 
                have an impact on a program to improve work truck fuel 
                efficiency.
            ``(2) Rulemaking.--Not later than 24 months after 
        completion of the study required under paragraph (1), the 
        Secretary, in consultation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency, by 
        regulation, shall determine in a rulemaking proceeding how to 
        implement a work truck fuel efficiency improvement program 
        designed to achieve the maximum feasible improvement, and shall 
        adopt and implement appropriate test methods, measurement 
        metrics, fuel economy standards, and compliance and enforcement 
        protocols that are appropriate, cost-effective, and 
        technologically feasible for work trucks. Any fuel economy 
        standard prescribed under this section shall be prescribed at 
        least 18 months before the model year to which it applies. The 
        Secretary may prescribe separate standards for different 
        classes of vehicles under this subsection.''.
    (c) Fuel Economy Standard for Commercial Medium-Duty and Heavy-Duty 
On-Highway Vehicles.--Section 32902 of title 49, United States Code, as 
amended by subsection (b), is further amended by adding at the end the 
following:
    ``(l) Commercial Medium- and Heavy-Duty On-Highway Vehicles.--
            ``(1) Study.--Not later than 1 year after the National 
        Academy of Sciences publishes the results of its study under 
        section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary 
        of Transportation, in consultation with the Secretary of Energy 
        and the Administrator of the Environmental Protection Agency, 
        shall examine the fuel efficiency of commercial medium- and 
        heavy-duty on-highway vehicles and determine--
                    ``(A) the appropriate test procedures and 
                methodologies for measuring the fuel efficiency of such 
                vehicles;
                    ``(B) the appropriate metric for measuring and 
                expressing commercial medium- and heavy-duty on-highway 
                vehicle fuel efficiency performance, taking into 
                consideration, among other things, the work performed 
                by such on-highway vehicles and types of operations in 
                which they are used;
                    ``(C) the range of factors, including, without 
                limitation, design, functionality, use, duty cycle, 
                infrastructure, and total overall energy consumption 
                and operating costs that affect commercial medium- and 
                heavy-duty on-highway vehicle fuel efficiency; and
                    ``(D) such other factors and conditions that could 
                have an impact on a program to improve commercial 
                medium- and heavy-duty on-highway vehicle fuel 
                efficiency.
            ``(2) Rulemaking.--Not later than 24 months after 
        completion of the study required under paragraph (1), the 
        Secretary, in consultation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency, by 
        regulation, shall determine in a rulemaking proceeding how to 
        implement a commercial medium- and heavy-duty on-highway 
        vehicle fuel efficiency improvement program designed to achieve 
        the maximum feasible improvement, and shall adopt and implement 
        appropriate test methods, measurement metrics, fuel economy 
        standards, and compliance and enforcement protocols that are 
        appropriate, cost-effective, and technologically feasible for 
        commercial medium- and heavy-duty on-highway vehicles. Any fuel 
        economy standard prescribed under this section shall be 
        prescribed at least 18 months before the model year to which it 
        applies. The Secretary may prescribe separate standards for 
        different classes of vehicles under this subsection.
            ``(3) Lead-time; regulatory stability.--The first 
        commercial medium- and heavy-duty on-highway vehicle fuel 
        efficiency regulatory program adopted pursuant to this 
        subsection shall provide not less than--
                    ``(A) 4 full model years of regulatory lead-time; 
                and
                    ``(B) 3 full model years of regulatory 
                stability.''.

SEC. 103. DEFINITIONS.

    (a) In General.--Section 32901(a) of title 49, United States Code, 
is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) except as provided in section 32908 of this title, 
        `automobile' means a 4-wheeled vehicle that is propelled by 
        fuel, or by alternative fuel, manufactured primarily for use on 
        public streets, roads, and highways and rated at less than 
        10,000 pounds gross vehicle weight, except--
                    ``(A) a vehicle operated only on a rail line;
                    ``(B) a vehicle manufactured in different stages by 
                2 or more manufacturers, if no intermediate or final-
                stage manufacturer of that vehicle manufactures more 
                than 10,000 multi-stage vehicles per year; or
                    ``(C) a work truck.'';
            (2) by redesignating paragraphs (7) through (16) as 
        paragraphs (8) through (17), respectively;
            (3) by inserting after paragraph (6) the following:
            ``(7) `commercial medium- and heavy-duty on-highway 
        vehicle' means an on-highway vehicle with a gross vehicle 
        weight rating of 10,000 pounds or more.'';
            (4) in paragraph (9)(A), as redesignated, by inserting ``or 
        a mixture of biodiesel and diesel fuel meeting the standard 
        established by the American Society for Testing and Materials 
        or under section 211(u) of the Clean Air Act (42 U.S.C. 
        7545(u)) for fuel containing 20 percent biodiesel (commonly 
        known as `B20')'' after ``alternative fuel'';
            (5) by redesignating paragraph (17), as redesignated, as 
        paragraph (18);
            (6) by inserting after paragraph (16), as redesignated, the 
        following:
            ``(17) `non-passenger automobile' means an automobile that 
        is not a passenger automobile or a work truck.''; and
            (7) by adding at the end the following:
            ``(19) `work truck' means a vehicle that--
                    ``(A) is rated at between 8,500 and 10,000 pounds 
                gross vehicle weight; and
                    ``(B) is not a medium-duty passenger vehicle (as 
                defined in section 86.1803-01 of title 40, Code of 
                Federal Regulations, as in effect on the date of the 
                enactment of the Ten-in-Ten Fuel Economy Act).''.

SEC. 104. CREDIT TRADING PROGRAM.

    (a) In General.--Section 32903 of title 49, United States Code, is 
amended--
            (1) by striking ``section 32902(b)-(d) of this title'' each 
        place it appears and inserting ``subsections (a) through (d) of 
        section 32902'';
            (2) in subsection (a)(2)--
                    (A) by striking ``3 consecutive model years'' and 
                inserting ``5 consecutive model years'';
                    (B) by striking ``clause (1) of this subsection,'' 
                and inserting ``paragraph (1)'';
            (3) by redesignating subsection (f) as subsection (h); and
            (4) by inserting after subsection (e) the following:
    ``(f) Credit Trading Among Manufacturers.--
            ``(1) In general.--The Secretary of Transportation may 
        establish, by regulation, a fuel economy credit trading program 
        to allow manufacturers whose automobiles exceed the average 
        fuel economy standards prescribed under section 32902 to earn 
        credits to be sold to manufacturers whose automobiles fail to 
        achieve the prescribed standards such that the total oil 
        savings associated with manufacturers that exceed the 
        prescribed standards are preserved when trading credits to 
        manufacturers that fail to achieve the prescribed standards.
            ``(2) Limitation.--The trading of credits by a manufacturer 
        to the category of passenger automobiles manufactured 
        domestically is limited to the extent that the fuel economy 
        level of such automobiles shall comply with the requirements of 
        section 32902(b)(4), without regard to any trading of credits 
        from other manufacturers.
    ``(g) Credit Transferring Within a Manufacturer's Fleet.--
            ``(1) In general.--The Secretary of Transportation shall 
        establish by regulation a fuel economy credit transferring 
        program to allow any manufacturer whose automobiles exceed any 
        of the average fuel economy standards prescribed under section 
        32902 to transfer the credits earned under this section and to 
        apply such credits within that manufacturer's fleet to a 
        compliance category of automobiles that fails to achieve the 
        prescribed standards.
            ``(2) Years for which used.--Credits transferred under this 
        subsection are available to be used in the same model years 
        that the manufacturer could have applied such credits under 
        subsections (a), (b), (d), and (e), as well as for the model 
        year in which the manufacturer earned such credits.
            ``(3) Maximum increase.--The maximum increase in any 
        compliance category attributable to transferred credits is--
                    ``(A) for model years 2011 through 2013, 1.0 mile 
                per gallon;
                    ``(B) for model years 2014 through 2017, 1.5 miles 
                per gallon; and
                    ``(C) for model year 2018 and subsequent model 
                years, 2.0 miles per gallon.
            ``(4) Limitation.--The transfer of credits by a 
        manufacturer to the category of passenger automobiles 
        manufactured domestically is limited to the extent that the 
        fuel economy level of such automobiles shall comply with the 
        requirements under section 32904(b)(4), without regard to any 
        transfer of credits from other categories of automobiles 
        described in paragraph (6)(B).
            ``(5) Years available.--A credit may be transferred under 
        this subsection only if it is earned after model year 2010.
            ``(6) Definitions.--In this subsection:
                    ``(A) Fleet.--The term `fleet' means all 
                automobiles manufactured by a manufacturer in a 
                particular model year.
                    ``(B) Compliance category of automobiles.--The term 
                `compliance category of automobiles' means any of the 
                following 3 categories of automobiles for which 
                compliance is separately calculated under this chapter:
                            ``(i) Passenger automobiles manufactured 
                        domestically.
                            ``(ii) Passenger automobiles not 
                        manufactured domestically.
                            ``(iii) Non-passenger automobiles.''.
    (b) Conforming Amendments.--
            (1) Limitations.--Section 32902(h) of title 49, United 
        States Code, is amended--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) may not consider, when prescribing a fuel economy 
        standard, the trading, transferring, or availability of credits 
        under section 32903.''.
            (2) Separate calculations.--Section 32904(b)(1)(B) is 
        amended by striking ``chapter.'' and inserting ``chapter, 
        except for the purposes of section 32903.''.

SEC. 105. CONSUMER INFORMATION.

    Section 32908 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(g) Consumer Information.--
            ``(1) Program.--The Secretary of Transportation, in 
        consultation with the Secretary of Energy and the Administrator 
        of the Environmental Protection Agency, shall develop and 
        implement by rule a program to require manufacturers--
                    ``(A) to label new automobiles sold in the United 
                States with--
                            ``(i) information reflecting an 
                        automobile's performance on the basis of 
                        criteria that the Administrator shall develop, 
                        not later than 18 months after the date of the 
                        enactment of the Ten-in-Ten Fuel Economy Act, 
                        to reflect fuel economy and greenhouse gas and 
                        other emissions over the useful life of the 
                        automobile;
                            ``(ii) a rating system that would make it 
                        easy for consumers to compare the fuel economy 
                        and greenhouse gas and other emissions of 
                        automobiles at the point of purchase, including 
                        a designation of automobiles--
                                    ``(I) with the lowest greenhouse 
                                gas emissions over the useful life of 
                                the vehicles; and
                                    ``(II) the highest fuel economy; 
                                and
                            ``(iii) a permanent and prominent display 
                        that an automobile is capable of operating on 
                        an alternative fuel; and
                    ``(B) to include in the owner's manual for vehicles 
                capable of operating on alternative fuels information 
                that describes that capability and the benefits of 
                using alternative fuels, including the renewable nature 
                and environmental benefits of using alternative fuels.
            ``(2) Consumer education.--
                    ``(A) In general.--The Secretary of Transportation, 
                in consultation with the Secretary of Energy and the 
                Administrator of the Environmental Protection Agency, 
                shall develop and implement by rule a consumer 
                education program to improve consumer understanding of 
                automobile performance described in paragraph (1)(A)(i) 
                and to inform consumers of the benefits of using 
                alternative fuel in automobiles and the location of 
                stations with alternative fuel capacity.
                    ``(B) Fuel savings education campaign.--The 
                Secretary of Transportation shall establish a consumer 
                education campaign on the fuel savings that would be 
                recognized from the purchase of vehicles equipped with 
                thermal management technologies, including energy 
                efficient air conditioning systems and glass.
            ``(3) Fuel tank labels for alternative fuel automobiles.--
        The Secretary of Transportation shall by rule require a label 
        to be attached to the fuel compartment of vehicles capable of 
        operating on alternative fuels, with the form of alternative 
        fuel stated on the label. A label attached in compliance with 
        the requirements of section 32905(h) is deemed to meet the 
        requirements of this paragraph.
            ``(4) Rulemaking deadline.--The Secretary of Transportation 
        shall issue a final rule under this subsection not later than 
        42 months after the date of the enactment of the Ten-in-Ten 
        Fuel Economy Act.''.

SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.

    Nothing in this subtitle, or the amendments made by this subtitle, 
shall be construed to affect the application of section 32902 of title 
49, United States Code, to passenger automobiles or non-passenger 
automobiles manufactured before model year 2011.

SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary of Transportation shall execute an agreement 
with the National Academy of Sciences to develop a report evaluating 
vehicle fuel economy standards, including--
            (1) an assessment of automotive technologies and costs to 
        reflect developments since the Academy's 2002 report evaluating 
        the corporate average fuel economy standards was conducted;
            (2) an analysis of existing and potential technologies that 
        may be used practically to improve automobile and medium-duty 
        and heavy-duty truck fuel economy;
            (3) an analysis of how such technologies may be practically 
        integrated into the automotive and medium-duty and heavy-duty 
        truck manufacturing process; and
            (4) an assessment of how such technologies may be used to 
        meet the new fuel economy standards under chapter 329 of title 
        49, United States Code, as amended by this subtitle.
    (b) Report.--The Academy shall submit the report to the Secretary, 
the Committee on Commerce, Science, and Transportation of the Senate, 
and the Committee on Energy and Commerce of the House of 
Representatives, with its findings and recommendations not later than 5 
years after the date on which the Secretary executes the agreement with 
the Academy.
    (c) Quinquennial Updates.--After submitting the initial report, the 
Academy shall update the report at 5 year intervals thereafter through 
2025.

SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY AND HEAVY-
              DUTY TRUCK FUEL ECONOMY.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary of Transportation shall execute an agreement 
with the National Academy of Sciences to develop a report evaluating 
medium-duty and heavy-duty truck fuel economy standards, including--
            (1) an assessment of technologies and costs to evaluate 
        fuel economy for medium-duty and heavy-duty trucks;
            (2) an analysis of existing and potential technologies that 
        may be used practically to improve medium-duty and heavy-duty 
        truck fuel economy;
            (3) an analysis of how such technologies may be practically 
        integrated into the medium-duty and heavy-duty truck 
        manufacturing process;
            (4) an assessment of how such technologies may be used to 
        meet fuel economy standards to be prescribed under section 
        32902(l) of title 49, United States Code, as amended by this 
        subtitle; and
            (5) associated costs and other impacts on the operation of 
        medium-duty and heavy-duty trucks, including congestion.
    (b) Report.--The Academy shall submit the report to the Secretary, 
the Committee on Commerce, Science, and Transportation of the Senate, 
and the Committee on Energy and Commerce of the House of 
Representatives, with its findings and recommendations not later than 1 
year after the date on which the Secretary executes the agreement with 
the Academy.

SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.

    (a) In General.--Section 32906 of title 49, United States Code, is 
amended to read as follows:
``Sec. 32906. Maximum fuel economy increase for alternative fuel 
              automobiles
    ``(a) In General.--For each of model years 1993 through 2019 for 
each category of automobile (except an electric automobile), the 
maximum increase in average fuel economy for a manufacturer 
attributable to dual fueled automobiles is--
            ``(1) 1.2 miles a gallon for each of model years 1993 
        through 2014;
            ``(2) 1.0 miles per gallon for model year 2015;
            ``(3) 0.8 miles per gallon for model year 2016;
            ``(4) 0.6 miles per gallon for model year 2017;
            ``(5) 0.4 miles per gallon for model year 2018;
            ``(6) 0.2 miles per gallon for model year 2019; and
            ``(7) 0 miles per gallon for model years after 2019.
    ``(b) Calculation.--In applying subsection (a), the Administrator 
of the Environmental Protection Agency shall determine the increase in 
a manufacturer's average fuel economy attributable to dual fueled 
automobiles by subtracting from the manufacturer's average fuel economy 
calculated under section 32905(e) the number equal to what the 
manufacturer's average fuel economy would be if it were calculated by 
the formula under section 32904(a)(1) by including as the denominator 
for each model of dual fueled automobiles the fuel economy when the 
automobiles are operated on gasoline or diesel fuel.''.
    (b) Conforming Amendments.--Section 32905 of title 49, United 
States Code, is amended--
            (1) in subsection (b), by striking ``1993-2010,'' and 
        inserting ``1993 through 2019,'';
            (2) in subsection (d), by striking ``1993-2010,'' and 
        inserting ``1993 through 2019,'';
            (3) by striking subsections (f) and (g); and
            (4) by redesignating subsection (h) as subsection (f).
    (c) B20 Biodiesel Flexible Fuel Credit.--Section 32905(b)(2) of 
title 49, United States Code, is amended to read as follows:
            ``(2) .5 divided by the fuel economy--
                    ``(A) measured under subsection (a) when operating 
                the model on alternative fuel; or
                    ``(B) measured based on the fuel content of B20 
                when operating the model on B20, which is deemed to 
                contain 0.15 gallon of fuel.''.

SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING 
              PROCEDURES.

    Beginning in December, 2009, and not less often than every 5 years 
thereafter, the Administrator of the Environmental Protection Agency, 
in consultation with the Secretary of Transportation, shall--
            (1) reevaluate the fuel economy labeling procedures 
        described in the final rule published in the Federal Register 
        on December 27, 2006 (71 Fed. Reg. 77,872; 40 C.F.R. parts 86 
        and 600) to determine whether changes in the factors used to 
        establish the labeling procedures warrant a revision of that 
        process; and
            (2) submit a report to the Committee on Commerce, Science, 
        and Transportation of the Senate and the Committee on Energy 
        and Commerce of the House of Representatives that describes the 
        results of the reevaluation process.

SEC. 111. CONSUMER TIRE INFORMATION.

    (a) In General.--Chapter 323 of title 49, United States Code, is 
amended by inserting after section 32304 the following:
``Sec. 32304A. Consumer tire information
    ``(a) Rulemaking.--
            ``(1) In general.--Not later than 24 months after the date 
        of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary 
        of Transportation shall, after notice and opportunity for 
        comment, promulgate rules establishing a national tire fuel 
        efficiency consumer information program for replacement tires 
        designed for use on motor vehicles to educate consumers about 
        the effect of tires on automobile fuel efficiency, safety, and 
        durability.
            ``(2) Items included in rule.--The rulemaking shall 
        include--
                    ``(A) a national tire fuel efficiency rating system 
                for motor vehicle replacement tires to assist consumers 
                in making more educated tire purchasing decisions;
                    ``(B) requirements for providing information to 
                consumers, including information at the point of sale 
                and other potential information dissemination methods, 
                including the Internet;
                    ``(C) specifications for test methods for 
                manufacturers to use in assessing and rating tires to 
                avoid variation among test equipment and manufacturers; 
                and
                    ``(D) a national tire maintenance consumer 
                education program including, information on tire 
                inflation pressure, alignment, rotation, and tread wear 
                to maximize fuel efficiency, safety, and durability of 
                replacement tires.
            ``(3) Applicability.--This section shall apply only to 
        replacement tires covered under section 575.104(c) of title 49, 
        Code of Federal Regulations, in effect on the date of the 
        enactment of the Ten-in-Ten Fuel Economy Act.
    ``(b) Consultation.--The Secretary shall consult with the Secretary 
of Energy and the Administrator of the Environmental Protection Agency 
on the means of conveying tire fuel efficiency consumer information.
    ``(c) Report to Congress.--The Secretary shall conduct periodic 
assessments of the rules promulgated under this section to determine 
the utility of such rules to consumers, the level of cooperation by 
industry, and the contribution to national goals pertaining to energy 
consumption. The Secretary shall transmit periodic reports detailing 
the findings of such assessments to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Energy and Commerce.
    ``(d) Tire Marking.--The Secretary shall not require permanent 
labeling of any kind on a tire for the purpose of tire fuel efficiency 
information.
    ``(e) Application With State and Local Laws and Regulations.--
Nothing in this section prohibits a State or political subdivision 
thereof from enforcing a law or regulation on tire fuel efficiency 
consumer information that was in effect on January 1, 2006. After a 
requirement promulgated under this section is in effect, a State or 
political subdivision thereof may adopt or enforce a law or regulation 
on tire fuel efficiency consumer information enacted or promulgated 
after January 1, 2006, if the requirements of that law or regulation 
are identical to the requirement promulgated under this section. 
Nothing in this section shall be construed to preempt a State or 
political subdivision thereof from regulating the fuel efficiency of 
tires (including establishing testing methods for determining 
compliance with such standards) not otherwise preempted under this 
chapter.''.
    (b) Enforcement.--Section 32308 of title 49, United States Code, is 
amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d)and (e), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Section 32304A.--Any person who fails to comply with the 
national tire fuel efficiency information program under section 32304A 
is liable to the United States Government for a civil penalty of not 
more than $50,000 for each violation.''.
    (c) Conforming Amendment.--The chapter analysis for chapter 323 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 32304 the following:

``32304A. Consumer tire information''.

SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.

    Section 32912 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(e) Use of Civil Penalties.--For fiscal year 2008 and each fiscal 
year thereafter, from the total amount deposited in the general fund of 
the Treasury during the preceding fiscal year from fines, penalties, 
and other funds obtained through enforcement actions conducted pursuant 
to this section (including funds obtained under consent decrees), the 
Secretary of the Treasury, subject to the availability of 
appropriations, shall--
            ``(1) transfer 50 percent of such total amount to the 
        account providing appropriations to the Secretary of 
        Transportation for the administration of this chapter, which 
        shall be used by the Secretary to support rulemaking under this 
        chapter; and
            ``(2) transfer 50 percent of such total amount to the 
        account providing appropriations to the Secretary of 
        Transportation for the administration of this chapter, which 
        shall be used by the Secretary to carry out a program to make 
        grants to manufacturers for retooling, reequipping, or 
        expanding existing manufacturing facilities in the United 
        States to produce advanced technology vehicles and 
        components.''.

SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.

    (a) Repeal.--Paragraphs (6), (7), and (8) of section 32904(b) of 
title 49, United States Code, are repealed.
    (b) Effect of Repeal on Existing Exemptions.--Any exemption granted 
under section 32904(b)(6) of title 49, United States Code, prior to the 
date of the enactment of this Act shall remain in effect subject to its 
terms through model year 2013.
    (c) Accrual and Use of Credits.--Any manufacturer holding an 
exemption under section 32904(b)(6) of title 49, United States Code, 
prior to the date of the enactment of this Act may accrue and use 
credits under sections 32903 and 32905 of such title begining with 
model year 2011.

                Subtitle B--Improved Vehicle Technology

SEC. 131. TRANSPORTATION ELECTRIFICATION.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Battery.--The term ``battery'' means an electrochemical 
        energy storage system powered directly by electrical current.
            (3) Electric transportation technology.--The term 
        ``electric transportation technology'' means--
                    (A) technology used in vehicles that use an 
                electric motor for all or part of the motive power of 
                the vehicles, including battery electric, hybrid 
                electric, plug-in hybrid electric, fuel cell, and plug-
                in fuel cell vehicles, or rail transportation; or
                    (B) equipment relating to transportation or mobile 
                sources of air pollution that use an electric motor to 
                replace an internal combustion engine for all or part 
                of the work of the equipment, including--
                            (i) corded electric equipment linked to 
                        transportation or mobile sources of air 
                        pollution; and
                            (ii) electrification technologies at 
                        airports, ports, truck stops, and material-
                        handling facilities.
            (4) Nonroad vehicle.--The term ``nonroad vehicle'' means a 
        vehicle--
                    (A) powered--
                            (i) by a nonroad engine, as that term is 
                        defined in section 216 of the Clean Air Act (42 
                        U.S.C. 7550); or
                            (ii) fully or partially by an electric 
                        motor powered by a fuel cell, a battery, or an 
                        off-board source of electricity; and
                    (B) that is not a motor vehicle or a vehicle used 
                solely for competition.
            (5) Plug-in electric drive vehicle.--The term ``plug-in 
        electric drive vehicle'' means a vehicle that--
                    (A) draws motive power from a battery with a 
                capacity of at least 4 kilowatt-hours;
                    (B) can be recharged from an external source of 
                electricity for motive power; and
                    (C) is a light-, medium-, or heavy-duty motor 
                vehicle or nonroad vehicle (as those terms are defined 
                in section 216 of the Clean Air Act (42 U.S.C. 7550)).
            (6) Qualified electric transportation project.--The term 
        ``qualified electric transportation project'' means an electric 
        transportation technology project that would significantly 
        reduce emissions of criteria pollutants, greenhouse gas 
        emissions, and petroleum, including--
                    (A) shipside or shoreside electrification for 
                vessels;
                    (B) truck-stop electrification;
                    (C) electric truck refrigeration units;
                    (D) battery powered auxiliary power units for 
                trucks;
                    (E) electric airport ground support equipment;
                    (F) electric material and cargo handling equipment;
                    (G) electric or dual-mode electric rail;
                    (H) any distribution upgrades needed to supply 
                electricity to the project; and
                    (I) any ancillary infrastructure, including panel 
                upgrades, battery chargers, in-situ transformers, and 
                trenching.
    (b) Plug-in Electric Drive Vehicle Program.--
            (1) Establishment.--The Secretary shall establish a 
        competitive program to provide grants on a cost-shared basis to 
        State governments, local governments, metropolitan 
        transportation authorities, air pollution control districts, 
        private or nonprofit entities, or combinations of those 
        governments, authorities, districts, and entities, to carry out 
        1 or more projects to encourage the use of plug-in electric 
        drive vehicles or other emerging electric vehicle technologies, 
        as determined by the Secretary.
            (2) Administration.--The Secretary shall, in consultation 
        with the Secretary of Transportation and the Administrator, 
        establish requirements for applications for grants under this 
        section, including reporting of data to be summarized for 
        dissemination to grantees and the public, including safety, 
        vehicle, and component performance, and vehicle and component 
        life cycle costs.
            (3) Priority.--In making awards under this subsection, the 
        Secretary shall--
                    (A) give priority consideration to applications 
                that--
                            (i) encourage early widespread use of 
                        vehicles described in paragraph (1); and
                            (ii) are likely to make a significant 
                        contribution to the advancement of the 
                        production of the vehicles in the United 
                        States; and
                    (B) ensure, to the maximum extent practicable, that 
                the program established under this subsection includes 
                a variety of applications, manufacturers, and end-uses.
            (4) Reporting.--The Secretary shall require a grant 
        recipient under this subsection to submit to the Secretary, on 
        an annual basis, data relating to safety, vehicle performance, 
        life cycle costs, and emissions of vehicles demonstrated under 
        the grant, including emissions of greenhouse gases.
            (5) Cost sharing.--Section 988 of the Energy Policy Act of 
        2005 (42 U.S.C. 16352) shall apply to a grant made under this 
        subsection.
            (6) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $90,000,000 for 
        each of fiscal years 2008 through 2012, of which not less than 
        \1/3\ of the total amount appropriated shall be available each 
        fiscal year to make grants to local and municipal governments.
    (c) Near-Term Transportation Sector Electrification Program.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Secretary of Transportation and the Administrator, shall 
        establish a program to provide grants for the conduct of 
        qualified electric transportation projects.
            (2) Priority.--In providing grants under this subsection, 
        the Secretary shall give priority to large-scale projects and 
        large-scale aggregators of projects.
            (3) Cost sharing.--Section 988 of the Energy Policy Act of 
        2005 (42 U.S.C. 16352) shall apply to a grant made under this 
        subsection.
            (4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $95,000,000 for 
        each of fiscal years 2008 through 2013.
    (d) Education Program.--
            (1) In general.--The Secretary shall develop a nationwide 
        electric drive transportation technology education program 
        under which the Secretary shall provide--
                    (A) teaching materials to secondary schools and 
                high schools; and
                    (B) assistance for programs relating to electric 
                drive system and component engineering to institutions 
                of higher education.
            (2) Electric vehicle competition.--The program established 
        under paragraph (1) shall include a plug-in hybrid electric 
        vehicle competition for institutions of higher education, which 
        shall be known as the ``Dr. Andrew Frank Plug-In Electric 
        Vehicle Competition''.
            (3) Engineers.--In carrying out the program established 
        under paragraph (1), the Secretary shall provide financial 
        assistance to institutions of higher education to create new, 
        or support existing, degree programs to ensure the availability 
        of trained electrical and mechanical engineers with the skills 
        necessary for the advancement of--
                    (A) plug-in electric drive vehicles; and
                    (B) other forms of electric drive transportation 
                technology vehicles.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to carry out 
        this subsection.

SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is 
amended to read as follows:

``SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    ``(a) Program.--
            ``(1) In general.--The Secretary shall establish a program 
        to encourage domestic production and sales of efficient hybrid 
        and advanced diesel vehicles and components of those vehicles.
            ``(2) Inclusions.--The program shall include grants to 
        automobile manufacturers and suppliers and hybrid component 
        manufacturers to encourage domestic production of efficient 
        hybrid, plug-in electric hybrid, plug-in electric drive, and 
        advanced diesel vehicles.
            ``(3) Priority.--Priority shall be given to the 
        refurbishment or retooling of manufacturing facilities that 
        have recently ceased operation or will cease operation in the 
        near future.
    ``(b) Coordination With State and Local Programs.--The Secretary 
may coordinate implementation of this section with State and local 
programs designed to accomplish similar goals, including the retention 
and retraining of skilled workers from the manufacturing facilities, 
including by establishing matching grant arrangements.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.''.

SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is 
amended--
            (1) by redesignating subsections (a) through (d) as 
        subsections (b) through (e), respectively;
            (2) by inserting before subsection (b) the following:
    ``(a) Definitions.--In this section:
            ``(1) Fuel cell electric vehicle.--The term `fuel cell 
        electric vehicle' means an on-road or nonroad vehicle that uses 
        a fuel cell (as defined in section 803 of the Spark M. 
        Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).
            ``(2) Hybrid electric vehicle.--The term `hybrid electric 
        vehicle' means a new qualified hybrid motor vehicle (as defined 
        in section 30B(d)(3) of the Internal Revenue Code of 1986).
            ``(3) Medium- or heavy-duty electric vehicle.--The term 
        `medium- or heavy-duty electric vehicle' means an electric, 
        hybrid electric, or plug-in hybrid electric vehicle with a 
        gross vehicle weight of more than 8,501 pounds.
            ``(4) Neighborhood electric vehicle.--The term 
        `neighborhood electric vehicle' means a 4-wheeled on-road or 
        nonroad vehicle that--
                    ``(A) has a top attainable speed in 1 mile of more 
                than 20 mph and not more than 25 mph on a paved level 
                surface; and
                    ``(B) is propelled by an electric motor and on-
                board, rechargeable energy storage system that is 
                rechargeable using an off-board source of electricity.
            ``(5) Plug-in electric drive vehicle.--The term `plug-in 
        electric drive vehicle' means a vehicle that--
                    ``(A) draws motive power from a battery with a 
                capacity of at least 4 kilowatt-hours;
                    ``(B) can be recharged from an external source of 
                electricity for motive power; and
                    ``(C) is a light-, medium-, or heavy duty motor 
                vehicle or nonroad vehicle (as those terms are defined 
                in section 216 of the Clean Air Act (42 U.S.C. 
                7550).'';
            (3) in subsection (b) (as redesignated by paragraph (1))--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
            ``(1) Allocation.--The Secretary''; and
                    (B) by adding at the end the following:
            ``(2) Electric vehicles.--Not later than January 31, 2009, 
        the Secretary shall--
                    ``(A) allocate credit in an amount to be determined 
                by the Secretary for--
                            ``(i) acquisition of--
                                    ``(I) a hybrid electric vehicle;
                                    ``(II) a plug-in electric drive 
                                vehicle;
                                    ``(III) a fuel cell electric 
                                vehicle;
                                    ``(IV) a neighborhood electric 
                                vehicle; or
                                    ``(V) a medium- or heavy-duty 
                                electric vehicle; and
                            ``(ii) investment in qualified alternative 
                        fuel infrastructure or nonroad equipment, as 
                        determined by the Secretary; and
                    ``(B) allocate more than 1, but not to exceed 5, 
                credits for investment in an emerging technology 
                relating to any vehicle described in subparagraph (A) 
                to encourage--
                            ``(i) a reduction in petroleum demand;
                            ``(ii) technological advancement; and
                            ``(iii) a reduction in vehicle 
                        emissions.'';
            (4) in subsection (c) (as redesignated by paragraph (1)), 
        by striking ``subsection (a)'' and inserting ``subsection 
        (b)''; and
            (5) by adding at the end the following:
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2013.''.

SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS 
              MANUFACTURERS.

    (a) In General.--Section 712(a)(2) of the Energy Policy Act of 2005 
(42 U.S.C. 16062(a)(2)) (as amended by section 132) is amended by 
inserting ``and loan guarantees under section 1703'' after ``grants''.
    (b) Conforming Amendment.--Section 1703(b) of the Energy Policy Act 
of 2005 (42 U.S.C. 16513(b)) is amended by striking paragraph (8) and 
inserting the following:
            ``(8) Production facilities for the manufacture of fuel 
        efficient vehicles or parts of those vehicles, including 
        electric drive vehicles and advanced diesel vehicles.''.

SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.

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

SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.

    (a) Definitions.--In this section:
            (1) Advanced technology vehicle.--The term ``advanced 
        technology vehicle'' means a light duty vehicle that meets--
                    (A) the Bin 5 Tier II emission standard established 
                in regulations issued by the Administrator of the 
                Environmental Protection Agency under section 202(i) of 
                the Clean Air Act (42 U.S.C. 7521(i)), or a lower-
                numbered Bin emission standard;
                    (B) any new emission standard in effect for fine 
                particulate matter prescribed by the Administrator 
                under that Act (42 U.S.C. 7401 et seq.); and
                    (C) at least 125 percent of the average base year 
                combined fuel economy for vehicles with substantially 
                similar attributes.
            (2) Combined fuel economy.--The term ``combined fuel 
        economy'' means--
                    (A) the combined city/highway miles per gallon 
                values, as reported in accordance with section 32904 of 
                title 49, United States Code; and
                    (B) in the case of an electric drive vehicle with 
                the ability to recharge from an off-board source, the 
                reported mileage, as determined in a manner consistent 
                with the Society of Automotive Engineers recommended 
                practice for that configuration or a similar practice 
                recommended by the Secretary.
            (3) Engineering integration costs.--The term ``engineering 
        integration costs'' includes the cost of engineering tasks 
        relating to--
                    (A) incorporating qualifying components into the 
                design of advanced technology vehicles; and
                    (B) designing tooling and equipment and developing 
                manufacturing processes and material suppliers for 
                production facilities that produce qualifying 
                components or advanced technology vehicles.
            (4) Qualifying components.--The term ``qualifying 
        components'' means components that the Secretary determines to 
        be--
                    (A) designed for advanced technology vehicles; and
                    (B) installed for the purpose of meeting the 
                performance requirements of advanced technology 
                vehicles.
    (b) Advanced Vehicles Manufacturing Facility.--The Secretary shall 
provide facility funding awards under this section to automobile 
manufacturers and component suppliers to pay not more than 30 percent 
of the cost of--
            (1) reequipping, expanding, or establishing a manufacturing 
        facility in the United States to produce--
                    (A) qualifying advanced technology vehicles; or
                    (B) qualifying components; and
            (2) engineering integration performed in the United States 
        of qualifying vehicles and qualifying components.
    (c) Period of Availability.--An award under subsection (b) shall 
apply to--
            (1) facilities and equipment placed in service before 
        December 30, 2020; and
            (2) engineering integration costs incurred during the 
        period beginning on the date of enactment of this Act and 
        ending on December 30, 2020.
    (d) Direct Loan Program.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, and subject to the availability of 
        appropriated funds, the Secretary shall carry out a program to 
        provide a total of not more than $25,000,000,000 in loans to 
        eligible individuals and entities (as determined by the 
        Secretary) for the costs of activities described in subsection 
        (b).
            (2) Application.--An applicant for a loan under this 
        subsection shall submit to the Secretary an application at such 
        time, in such manner, and containing such information as the 
        Secretary may require, including a written assurance that--
                    (A) all laborers and mechanics employed by 
                contractors or subcontractors during construction, 
                alteration, or repair that is financed, in whole or in 
                part, by a loan under this section shall be paid wages 
                at rates not less than those prevailing on similar 
                construction in the locality, as determined by the 
                Secretary of Labor in accordance with sections 3141-
                3144, 3146, and 3147 of title 40, United States Code; 
                and
                    (B) the Secretary of Labor shall, with respect to 
                the labor standards described in this paragraph, have 
                the authority and functions set forth in Reorganization 
                Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 
                3145 of title 40, United States Code.
            (3) Selection of eligible projects.--The Secretary shall 
        select eligible projects to receive loans under this subsection 
        in cases in which, as determined by the Secretary, the award 
        recipient--
                    (A) is financially viable without the receipt of 
                additional Federal funding associated with the proposed 
                project;
                    (B) will provide sufficient information to the 
                Secretary for the Secretary to ensure that the 
                qualified investment is expended efficiently and 
                effectively; and
                    (C) has met such other criteria as may be 
                established and published by the Secretary.
            (4) Rates, terms, and repayment of loans.--A loan provided 
        under this subsection--
                    (A) shall have an interest rate that, as of the 
                date on which the loan is made, is equal to the cost of 
                funds to the Department of the Treasury for obligations 
                of comparable maturity;
                    (B) shall have a term equal to the lesser of--
                            (i) the projected life, in years, of the 
                        eligible project to be carried out using funds 
                        from the loan, as determined by the Secretary; 
                        and
                            (ii) 25 years;
                    (C) may be subject to a deferral in repayment for 
                not more than 5 years after the date on which the 
                eligible project carried out using funds from the loan 
                first begins operations, as determined by the 
                Secretary; and
                    (D) shall be made by the Federal Financing Bank.
    (e) Improvement.--The Secretary shall issue regulations that 
require that, in order for an automobile manufacturer to be eligible 
for an award or loan under this section during a particular year, the 
adjusted average fuel economy of the manufacturer for light duty 
vehicles produced by the manufacturer during the most recent year for 
which data are available shall be not less than the average fuel 
economy for all light duty vehicles of the manufacturer for model year 
2005. In order to determine fuel economy baselines for eligibility of a 
new manufacturer or a manufacturer that has not produced previously 
produced equivalent vehicles, the Secretary may substitute industry 
averages.
    (f) Fees.--Administrative costs shall be no more than $100,000 or 
10 basis point of the loan.
    (g) Priority.--The Secretary shall, in making awards or loans to 
those manufacturers that have existing facilities, give priority to 
those facilities that are oldest or have been in existence for at least 
20 years. Such facilities can currently be sitting idle.
    (h) Set Aside for Small Automobile Manufacturers and Component 
Suppliers.--
            (1) Definition of covered firm.--In this subsection, the 
        term ``covered firm'' means a firm that--
                    (A) employs less than 500 individuals; and
                    (B) manufactures automobiles or components of 
                automobiles.
            (2) Set aside.--Of the amount of funds that are used to 
        provide awards for each fiscal year under subsection (b), the 
        Secretary shall use not less than 10 percent to provide awards 
        to covered firms or consortia led by a covered firm.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.

                   Subtitle C--Federal Vehicle Fleets

SEC. 141. FEDERAL VEHICLE FLEETS.

    Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is 
amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Vehicle Emission Requirements.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Federal agency.--The term `Federal agency' 
                does not include any office of the legislative branch, 
                except that it does include the House of 
                Representatives with respect to an acquisition 
                described in paragraph (2)(C).
                    ``(B) Medium duty passenger vehicle.--The term 
                `medium duty passenger vehicle' has the meaning given 
                that term section 523.2 of title 49 of the Code of 
                Federal Regulations, as in effect on the date of 
                enactment of this paragraph.
                    ``(C) Member's representational allowance.--The 
                term `Member's Representational Allowance' means the 
                allowance described in section 101(a) of the House of 
                Representatives Administrative Reform Technical 
                Corrections Act (2 U.S.C. 57b(a)).
            ``(2) Prohibition.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no Federal agency shall acquire a 
                light duty motor vehicle or medium duty passenger 
                vehicle that is not a low greenhouse gas emitting 
                vehicle.
                    ``(B) Exception.--The prohibition in subparagraph 
                (A) shall not apply to acquisition of a vehicle if the 
                head of the agency certifies in writing, in a separate 
                certification for each individual vehicle purchased, 
                either--
                            ``(i) that no low greenhouse gas emitting 
                        vehicle is available to meet the functional 
                        needs of the agency and details in writing the 
                        functional needs that could not be met with a 
                        low greenhouse gas emitting vehicle; or
                            ``(ii) that the agency has taken specific 
                        alternative more cost-effective measures to 
                        reduce petroleum consumption that--
                                    ``(I) have reduced a measured and 
                                verified quantity of greenhouse gas 
                                emissions equal to or greater than the 
                                quantity of greenhouse gas reductions 
                                that would have been achieved through 
                                acquisition of a low greenhouse gas 
                                emitting vehicle over the lifetime of 
                                the vehicle; or
                                    ``(II) will reduce each year a 
                                measured and verified quantity of 
                                greenhouse gas emissions equal to or 
                                greater than the quantity of greenhouse 
                                gas reductions that would have been 
                                achieved each year through acquisition 
                                of a low greenhouse gas emitting 
                                vehicle.
                    ``(C) Special rule for vehicles provided by funds 
                contained in members' representational allowance.--This 
                paragraph shall apply to the acquisition of a light 
                duty motor vehicle or medium duty passenger vehicle 
                using any portion of a Member's Representational 
                Allowance, including an acquisition under a long-term 
                lease.
            ``(3) Guidance.--
                    ``(A) In general.--Each year, the Administrator of 
                the Environmental Protection Agency shall issue 
                guidance identifying the makes and model numbers of 
                vehicles that are low greenhouse gas emitting vehicles.
                    ``(B) Consideration.--In identifying vehicles under 
                subparagraph (A), the Administrator shall take into 
                account the most stringent standards for vehicle 
                greenhouse gas emissions applicable to and enforceable 
                against motor vehicle manufacturers for vehicles sold 
                anywhere in the United States.
                    ``(C) Requirement.--The Administrator shall not 
                identify any vehicle as a low greenhouse gas emitting 
                vehicle if the vehicle emits greenhouse gases at a 
                higher rate than such standards allow for the 
                manufacturer's fleet average grams per mile of carbon 
                dioxide-equivalent emissions for that class of vehicle, 
                taking into account any emissions allowances and 
                adjustment factors such standards provide.''.

SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.

    Part J of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6374 et seq.) is amended by adding at the end the following:

``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.

    ``(a) Mandatory Reduction in Petroleum Consumption.--
            ``(1) In general.--Not later than 18 months after the date 
        of enactment of this section, the Secretary shall issue 
        regulations for Federal fleets subject to section 400AA to 
        require that, beginning in fiscal year 2010, each Federal 
        agency shall reduce petroleum consumption and increase 
        alternative fuel consumption each year by an amount necessary 
        to meet the goals described in paragraph (2).
            ``(2) Goals.--The goals of the requirements under paragraph 
        (1) are that not later than October 1, 2015, and for each year 
        thereafter, each Federal agency shall achieve at least a 20 
        percent reduction in annual petroleum consumption and a 10 
        percent increase in annual alternative fuel consumption, as 
        calculated from the baseline established by the Secretary for 
        fiscal year 2005.
            ``(3) Milestones.--The Secretary shall include in the 
        regulations described in paragraph (1)--
                    ``(A) interim numeric milestones to assess annual 
                agency progress towards accomplishing the goals 
                described in that paragraph; and
                    ``(B) a requirement that agencies annually report 
                on progress towards meeting each of the milestones and 
                the 2015 goals.
    ``(b) Plan.--
            ``(1) Requirement.--
                    ``(A) In general.--The regulations under subsection 
                (a) shall require each Federal agency to develop a 
                plan, and implement the measures specified in the plan 
                by dates specified in the plan, to meet the required 
                petroleum reduction levels and the alternative fuel 
                consumption increases, including the milestones 
                specified by the Secretary.
                    ``(B) Inclusions.--The plan shall--
                            ``(i) identify the specific measures the 
                        agency will use to meet the requirements of 
                        subsection (a)(2); and
                            ``(ii) quantify the reductions in petroleum 
                        consumption or increases in alternative fuel 
                        consumption projected to be achieved by each 
                        measure each year.
            ``(2) Measures.--The plan may allow an agency to meet the 
        required petroleum reduction level through--
                    ``(A) the use of alternative fuels;
                    ``(B) the acquisition of vehicles with higher fuel 
                economy, including hybrid vehicles, neighborhood 
                electric vehicles, electric vehicles, and plug-in 
                hybrid vehicles if the vehicles are commercially 
                available;
                    ``(C) the substitution of cars for light trucks;
                    ``(D) an increase in vehicle load factors;
                    ``(E) a decrease in vehicle miles traveled;
                    ``(F) a decrease in fleet size; and
                    ``(G) other measures.''.

   TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

                  Subtitle A--Renewable Fuel Standard

SEC. 201. DEFINITIONS.

    Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is 
amended to read as follows:
            ``(1) Definitions.--In this section:
                    ``(A) Additional renewable fuel.--The term 
                `additional renewable fuel' means fuel that is produced 
                from renewable biomass and that is used to replace or 
                reduce the quantity of fossil fuel present in home 
                heating oil or jet fuel.
                    ``(B) Advanced biofuel.--
                            ``(i) In general.--The term `advanced 
                        biofuel' means renewable fuel, other than 
                        ethanol derived from corn starch, that has 
                        lifecycle greenhouse gas emissions, as 
                        determined by the Administrator, after notice 
                        and opportunity for comment, that are at least 
                        50 percent less than baseline lifecycle 
                        greenhouse gas emissions.
                            ``(ii) Inclusions.--The types of fuels 
                        eligible for consideration as `advanced 
                        biofuel' may include any of the following:
                                    ``(I) Ethanol derived from 
                                cellulose, hemicellulose, or lignin.
                                    ``(II) Ethanol derived from sugar 
                                or starch (other than corn starch).
                                    ``(III) Ethanol derived from waste 
                                material, including crop residue, other 
                                vegetative waste material, animal 
                                waste, and food waste and yard waste.
                                    ``(IV) Biomass-based diesel.
                                    ``(V) Biogas (including landfill 
                                gas and sewage waste treatment gas) 
                                produced through the conversion of 
                                organic matter from renewable biomass.
                                    ``(VI) Butanol or other alcohols 
                                produced through the conversion of 
                                organic matter from renewable biomass.
                                    ``(VII) Other fuel derived from 
                                cellulosic biomass.
                    ``(C) Baseline lifecycle greenhouse gas 
                emissions.--The term `baseline lifecycle greenhouse gas 
                emissions' means the average lifecycle greenhouse gas 
                emissions, as determined by the Administrator, after 
                notice and opportunity for comment, for gasoline or 
                diesel (whichever is being replaced by the renewable 
                fuel) sold or distributed as transportation fuel in 
                2005.
                    ``(D) Biomass-based diesel.--The term `biomass-
                based diesel' means renewable fuel that is biodiesel as 
                defined in section 312(f) of the Energy Policy Act of 
                1992 (42 U.S.C. 13220(f)) and that has lifecycle 
                greenhouse gas emissions, as determined by the 
                Administrator, after notice and opportunity for 
                comment, that are at least 50 percent less than the 
                baseline lifecycle greenhouse gas emissions. 
                Notwithstanding the preceding sentence, renewable fuel 
                derived from co-processing biomass with a petroleum 
                feedstock shall be advanced biofuel if it meets the 
                requirements of subparagraph (B), but is not biomass-
                based diesel.
                    ``(E) Cellulosic biofuel.--The term `cellulosic 
                biofuel' means renewable fuel derived from any 
                cellulose, hemicellulose, or lignin that is derived 
                from renewable biomass and that has lifecycle 
                greenhouse gas emissions, as determined by the 
                Administrator, that are at least 60 percent less than 
                the baseline lifecycle greenhouse gas emissions.
                    ``(F) Conventional biofuel.--The term `conventional 
                biofuel' means renewable fuel that is ethanol derived 
                from corn starch.
                    ``(G) Greenhouse gas.--The term `greenhouse gas' 
                means carbon dioxide, hydrofluorocarbons, methane, 
                nitrous oxide, perfluorocarbons, sulfur hexafluoride. 
                The Administrator may include any other 
                anthropogenically-emitted gas that is determined by the 
                Administrator, after notice and comment, to contribute 
                to global warming.
                    ``(H) Lifecycle greenhouse gas emissions.--The term 
                `lifecycle greenhouse gas emissions' means the 
                aggregate quantity of greenhouse gas emissions 
                (including direct emissions and significant indirect 
                emissions such as significant emissions from land use 
                changes), as determined by the Administrator, related 
                to the full fuel lifecycle, including all stages of 
                fuel and feedstock production and distribution, from 
                feedstock generation or extraction through the 
                distribution and delivery and use of the finished fuel 
                to the ultimate consumer, where the mass values for all 
                greenhouse gases are adjusted to account for their 
                relative global warming potential.
                    ``(I) Renewable biomass.--The term `renewable 
                biomass' means each of the following:
                            ``(i) Planted crops and crop residue 
                        harvested from agricultural land cleared or 
                        cultivated at any time prior to the enactment 
                        of this sentence that is either actively 
                        managed or fallow, and nonforested.
                            ``(ii) Planted trees and tree residue from 
                        actively managed tree plantations on non-
                        federal land cleared at any time prior to 
                        enactment of this sentence, including land 
                        belonging to an Indian tribe or an Indian 
                        individual, that is held in trust by the United 
                        States or subject to a restriction against 
                        alienation imposed by the United States.
                            ``(iii) Animal waste material and animal 
                        byproducts.
                            ``(iv) Slash and pre-commercial thinnings 
                        that are from non-federal forestlands, 
                        including forestlands belonging to an Indian 
                        tribe or an Indian individual, that are held in 
                        trust by the United States or subject to a 
                        restriction against alienation imposed by the 
                        United States, but not forests or forestlands 
                        that are ecological communities with a global 
                        or State ranking of critically imperiled, 
                        imperiled, or rare pursuant to a State Natural 
                        Heritage Program, old growth forest, or late 
                        successional forest.
                            ``(v) Biomass obtained from the immediate 
                        vicinity of buildings and other areas regularly 
                        occupied by people, or of public 
                        infrastructure, at risk from wildfire.
                            ``(vi) Algae.
                            ``(vii) Separated yard waste or food waste, 
                        including recycled cooking and trap grease.
                    ``(J) Renewable fuel.--The term `renewable fuel' 
                means fuel that is produced from renewable biomass and 
                that is used to replace or reduce the quantity of 
                fossil fuel present in a transportation fuel.
                    ``(K) Small refinery.--The term `small refinery' 
                means a refinery for which the average aggregate daily 
                crude oil throughput for a calendar year (as determined 
                by dividing the aggregate throughput for the calendar 
                year by the number of days in the calendar year) does 
                not exceed 75,000 barrels.
                    ``(L) Transportation fuel.--The term 
                `transportation fuel' means fuel for use in motor 
                vehicles, motor vehicle engines, nonroad vehicles, or 
                nonroad engines (except for ocean-going vessels).''.

SEC. 202. RENEWABLE FUEL STANDARD.

    (a) Renewable Fuel Program.--Paragraph (2) of section 211(o) (42 
U.S.C. 7545(o)(2)) of the Clean Air Act is amended as follows:
            (1) Regulations.--Clause (i) of subparagraph (A) is amended 
        by adding the following at the end thereof: ``Not later than 1 
        year after the date of enactment of this sentence, the 
        Administrator shall revise the regulations under this paragraph 
        to ensure that transportation fuel sold or introduced into 
        commerce in the United States (except in noncontiguous States 
        or territories), on an annual average basis, contains at least 
        the applicable volume of renewable fuel, advanced biofuel, 
        cellulosic biofuel, and biomass-based diesel, determined in 
        accordance with subparagraph (B) and, in the case of any such 
        renewable fuel produced from new facilities that commence 
        construction after the date of enactment of this sentence, 
        achieves at least a 20 percent reduction in lifecycle 
        greenhouse gas emissions compared to baseline lifecycle 
        greenhouse gas emissions.''.
            (2) Applicable volumes of renewable fuel.--Subparagraph (B) 
        is amended to read as follows:
                    ``(B) Applicable volumes.--
                            ``(i) Calendar years after 2005.--
                                    ``(I) Renewable fuel.--For the 
                                purpose of subparagraph (A), the 
                                applicable volume of renewable fuel for 
                                the calendar years 2006 through 2022 
                                shall be determined in accordance with 
                                the following table:
                                    Applicable volume of renewable fuel
``Calendar year:                              (in billions of gallons):
        2006...................................................     4.0
        2007...................................................     4.7
        2008...................................................     9.0
        2009...................................................    11.1
        2010...................................................   12.95
        2011...................................................   13.95
        2012...................................................    15.2
        2013...................................................   16.55
        2014...................................................   18.15
        2015...................................................    20.5
        2016...................................................   22.25
        2017...................................................    24.0
        2018...................................................    26.0
        2019...................................................    28.0
        2020...................................................    30.0
        2021...................................................    33.0
        2022...................................................    36.0
                                    ``(II) Advanced biofuel.--For the 
                                purpose of subparagraph (A), of the 
                                volume of renewable fuel required under 
                                subclause (I), the applicable volume of 
                                advanced biofuel for the calendar years 
                                2009 through 2022 shall be determined 
                                in accordance with the following table:
                                         Applicable volume of advanced 
                                                                biofuel
``Calendar year:                              (in billions of gallons):
        2009...................................................     0.6
        2010...................................................    0.95
        2011...................................................    1.35
        2012...................................................     2.0
        2013...................................................    2.75
        2014...................................................    3.75
        2015...................................................     5.5
        2016...................................................    7.25
        2017...................................................     9.0
        2018...................................................    11.0
        2019...................................................    13.0
        2020...................................................    15.0
        2021...................................................    18.0
        2022...................................................    21.0
                                    ``(III) Cellulosic biofuel.--For 
                                the purpose of subparagraph (A), of the 
                                volume of advanced biofuel required 
                                under subclause (II), the applicable 
                                volume of cellulosic biofuel for the 
                                calendar years 2010 through 2022 shall 
                                be determined in accordance with the 
                                following table:
                                       Applicable volume of cellulosic 
                                                                biofuel
``Calendar year:                              (in billions of gallons):
        2010...................................................     0.1
        2011...................................................    0.25
        2012...................................................     0.5
        2013...................................................     1.0
        2014...................................................    1.75
        2015...................................................     3.0
        2016...................................................    4.25
        2017...................................................     5.5
        2018...................................................     7.0
        2019...................................................     8.5
        2020...................................................    10.5
        2021...................................................    13.5
        2022...................................................    16.0
                                    ``(IV) Biomass-based diesel.--For 
                                the purpose of subparagraph (A), of the 
                                volume of advanced biofuel required 
                                under subclause (II), the applicable 
                                volume of biomass-based diesel for the 
                                calendar years 2009 through 2012 shall 
                                be determined in accordance with the 
                                following table:
                                    Applicable volume of biomass-based 
                                                                 diesel
``Calendar year:                              (in billions of gallons):
        2009...................................................     0.5
        2010...................................................    0.65
        2011...................................................    0.80
        2012...................................................     1.0
                            ``(ii) Other calendar years.--For the 
                        purposes of subparagraph (A), the applicable 
                        volumes of each fuel specified in the tables in 
                        clause (i) for calendar years after the 
                        calendar years specified in the tables shall be 
                        determined by the Administrator, in 
                        coordination with the Secretary of Energy and 
                        the Secretary of Agriculture, based on a review 
                        of the implementation of the program during 
                        calendar years specified in the tables, and an 
                        analysis of--
                                    ``(I) the impact of the production 
                                and use of renewable fuels on the 
                                environment, including on air quality, 
                                climate change, conversion of wet 
                                lands, eco-systems, wildlife habitat, 
                                water quality, and water supply;
                                    ``(II) the impact of renewable 
                                fuels on the energy security of the 
                                United States;
                                    ``(III) the expected annual rate of 
                                future commercial production of 
                                renewable fuels, including advanced 
                                biofuels in each category (cellulosic 
                                biofuel and biomass-based diesel);
                                    ``(IV) the impact of renewable 
                                fuels on the infrastructure of the 
                                United States, including deliverability 
                                of materials, goods, and products other 
                                than renewable fuel, and the 
                                sufficiency of infrastructure to 
                                deliver and use renewable fuel;
                                    ``(V) the impact of the use of 
                                renewable fuels on the cost to 
                                consumers of transportation fuel and on 
                                the cost to transport goods; and
                                    ``(VI) the impact of the use of 
                                renewable fuels on other factors, 
                                including job creation, the price and 
                                supply of agricultural commodities, 
                                rural economic development, and food 
                                prices.
                        The Administrator shall promulgate rules 
                        establishing the applicable volumes under this 
                        clause no later than 14 months before the first 
                        year for which such applicable volume will 
                        apply.
                            ``(iii) Applicable volume of advanced 
                        biofuel.--For the purpose of making the 
                        determinations in clause (ii), for each 
                        calendar year, the applicable volume of 
                        advanced biofuel shall be at least the same 
                        percentage of the applicable volume of 
                        renewable fuel as in calendar year 2022.
                            ``(iv) Applicable volume of cellulosic 
                        biofuel.--For the purpose of making the 
                        determinations in clause (ii), for each 
                        calendar year, the applicable volume of 
                        cellulosic biofuel established by the 
                        Administrator shall be based on the assumption 
                        that the Administrator will not need to issue a 
                        waiver for such years under paragraph (7)(D).
                            ``(v) Minimum applicable volume of biomass-
                        based diesel.--For the purpose of making the 
                        determinations in clause (ii), the applicable 
                        volume of biomass-based diesel shall not be 
                        less than the applicable volume listed in 
                        clause (i)(IV) for calendar year 2012.''.
    (b) Applicable Percentages.--Paragraph (3) of section 211(o) of the 
Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as follows:
            (1) In subparagraph (A), by striking ``2011'' and inserting 
        ``2021.''.
            (2) In subparagraph (A), by striking ``gasoline'' and 
        inserting ``transportation fuel, biomass-based diesel, and 
        cellulosic biofuel''.
            (3) In subparagraph (B), by striking ``2012'' and inserting 
        ``2021'' in clause (ii)(I).
            (4) In subparagraph (B), by striking gasoline'' and 
        inserting ``transportation fuel'' in clause (ii)(II).
    (c) Modification of Greenhouse Gas Percentages.--Paragraph (4) of 
section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(4)) is amended 
to read as follows:
            ``(4) Modification of greenhouse gas reduction 
        percentages.--
                    ``(A) In general.--The Administrator may, in the 
                regulations under the last sentence of paragraph 
                (2)(A)(i), adjust the 20 percent, 50 percent, and 60 
                percent reductions in lifecycle greenhouse gas 
                emissions specified in paragraphs (2)(A)(i)(relating to 
                renewable fuel), (1)(D) (relating to biomass-based 
                diesel), (1)(B)(i)(relating to advanced biofuel), and 
                (1)(E) (relating to cellulosic biofuel) to a lower 
                percentage. For the 50 and 60 percent reductions, the 
                Administrator may make such an adjustment only if he 
                determines that generally such reduction is not 
                commercially feasible for fuels made using a variety of 
                feedstocks, technologies, and processes to meet the 
                applicable reduction.
                    ``(B) Amount of adjustment.--In promulgating 
                regulations under this paragraph, the specified 50 
                percent reduction in greenhouse gas emissions from 
                advanced biofuel and in biomass-based diesel may not be 
                reduced below 40 percent. The specified 20 percent 
                reduction in greenhouse gas emissions from renewable 
                fuel may not be reduced below 10 percent, and the 
                specified 60 percent reduction in greenhouse gas 
                emissions from cellulosic biofuel may not be reduced 
                below 50 percent.
                    ``(C) Adjusted reduction levels.--An adjustment 
                under this paragraph to a percent less than the 
                specified 20 percent greenhouse gas reduction for 
                renewable fuel shall be the minimum possible 
                adjustment, and the adjusted greenhouse gas reduction 
                shall be established by the Administrator at the 
                maximum achievable level, taking cost in consideration, 
                for natural gas fired corn-based ethanol plants, 
                allowing for the use of a variety of technologies and 
                processes. An adjustment in the 50 or 60 percent 
                greenhouse gas levels shall be the minimum possible 
                adjustment for the fuel or fuels concerned, and the 
                adjusted greenhouse gas reduction shall be established 
                at the maximum achievable level, taking cost in 
                consideration, allowing for the use of a variety of 
                feedstocks, technologies, and processes.
                    ``(D) 5-year review.--Whenever the Administrator 
                makes any adjustment under this paragraph, not later 
                than 5 years thereafter he shall review and revise 
                (based upon the same criteria and standards as required 
                for the initial adjustment) the regulations 
                establishing the adjusted level.
                    ``(E) Subsequent adjustments.--After the 
                Administrator has promulgated a final rule under the 
                last sentence of paragraph (2)(A)(i) with respect to 
                the method of determining lifecycle greenhouse gas 
                emissions, except as provided in subparagraph (D), the 
                Administrator may not adjust the percent greenhouse gas 
                reduction levels unless he determines that there has 
                been a significant change in the analytical methodology 
                used for determining the lifecycle greenhouse gas 
                emissions. If he makes such determination, he may 
                adjust the 20, 50, or 60 percent reduction levels 
                through rulemaking using the criteria and standards set 
                forth in this paragraph.
                    ``(F) Limit on upward adjustments.--If, under 
                subparagraph (D) or (E), the Administrator revises a 
                percent level adjusted as provided in subparagraph (A), 
                (B), and (C) to a higher percent, such higher percent 
                may not exceed the applicable percent specified in 
                paragraph (2)(A)(i), (1)(D),(1)(B)(i), or (1)(E).
                    ``(G) Applicability of adjustments.--If the 
                Administrator adjusts, or revises, a percent level 
                referred to in this paragraph or makes a change in the 
                analytical methodology used for determining the 
                lifecycle greenhouse gas emissions, such adjustment, 
                revision, or change (or any combination thereof) shall 
                only apply to renewable fuel from new facilities that 
                commence construction after the effective date of such 
                adjustment, revision, or change.''.
    (d) Credits for Additional Renewable Fuel.--Paragraph (5) of 
section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is amended 
by adding the following new subparagraph at the end thereof:
                    ``(E) Credits for additional renewable fuel.--The 
                Administrator may issue regulations providing (i) for 
                the generation of an appropriate amount of credits by 
                any person that refines, blends, or imports additional 
                renewable fuels specified by the Administrator and (ii) 
                for the use of such credits by the generator, or the 
                transfer of all or a portion of the credits to another 
                person, for the purpose of complying with paragraph 
                (2).''.
    (e) Waivers.--
            (1) In general.--Paragraph (7)(A) of section 211(o) of the 
        Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is amended by inserting 
        ``, by any person subject to the requirements of this 
        subsection, or by the Administrator on his own motion'' after 
        ``one or more States'' in subparagraph (A) and by striking out 
        ``State'' in subparagraph (B).
            (2) Cellulosic biofuel.--Paragraph (7) of section 211(o) of 
        the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding 
        the following at the end thereof:
                    ``(D) Cellulosic biofuel.--(i) For any calendar 
                year for which the projected volume of cellulosic 
                biofuel production is less than the minimum applicable 
                volume established under paragraph (2)(B), as 
                determined by the Administrator based on the estimate 
                provided under paragraph (3)(A), not later than 
                November 30 of the preceding calendar year, the 
                Administrator shall reduce the applicable volume of 
                cellulosic biofuel required under paragraph (2)(B) to 
                the projected volume available during that calendar 
                year. For any calendar year in which the Administrator 
                makes such a reduction, the Administrator may also 
                reduce the applicable volume of renewable fuel and 
                advanced biofuels requirement established under 
                paragraph (2)(B) by the same or a lesser volume.
                    ``(ii) Whenever the Administrator reduces the 
                minimum cellulosic biofuel volume under this 
                subparagraph, the Administrator shall make available 
                for sale cellulosic biofuel credits at the higher of 
                $0.25 per gallon or the amount by which $3.00 per 
                gallon exceeds the average wholesale price of a gallon 
                of gasoline in the United States. Such amounts shall be 
                adjusted for inflation by the Administrator for years 
                after 2008.
                    ``(iii) 18 months after date of enactment of this 
                subparagraph, the Administrator shall promulgate 
                regulations to govern the issuance of credits under 
                this subparagraph. The regulations shall set forth the 
                method for determining the exact price of credits in 
                the event of a waiver. The price of such credits shall 
                not be changed more frequently than once each quarter. 
                These regulations shall include such provisions, 
                including limiting the credits' uses and useful life, 
                as the Administrator deems appropriate to assist market 
                liquidity and transparency, to provide appropriate 
                certainty for regulated entities and renewable fuel 
                producers, and to limit any potential misuse of 
                cellulosic biofuel credits to reduce the use of other 
                renewable fuels, and for such other purposes as the 
                Administrator determines will help achieve the goals of 
                this subsection. The regulations shall limit the number 
                of cellulosic biofuel credits for any calendar year to 
                the minimum applicable volume (as reduced under this 
                subparagraph) of cellulosic biofuel for that year.''.
            (3) Biomass-based diesel.--Paragraph (7) of section 211(o) 
        of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by 
        adding the following at the end thereof:
                    ``(E) Biomass-based diesel.--
                            ``(i) Market evaluation.--The 
                        Administrator, in consultation with the 
                        Secretary of Energy and the Secretary of 
                        Agriculture, shall periodically evaluate the 
                        impact of the biomass-based diesel requirements 
                        established under this paragraph on the price 
                        of diesel fuel.
                            ``(ii) Waiver.--If the Administrator 
                        determines that there is a significant 
                        renewable feedstock disruption or other market 
                        circumstances that would make the price of 
                        biomass-based diesel fuel increase 
                        significantly, the Administrator, in 
                        consultation with the Secretary of Energy and 
                        the Secretary of Agriculture, shall issue an 
                        order to reduce, for up to a 60-day period, the 
                        quantity of biomass-based diesel required under 
                        subparagraph (A) by an appropriate quantity 
                        that does not exceed 15 percent of the 
                        applicable annual requirement for biomass-based 
                        diesel. For any calendar year in which the 
                        Administrator makes a reduction under this 
                        subparagraph, the Administrator may also reduce 
                        the applicable volume of renewable fuel and 
                        advanced biofuels requirement established under 
                        paragraph (2)(B) by the same or a lesser 
                        volume.
                            ``(iii) Extensions.--If the Administrator 
                        determines that the feedstock disruption or 
                        circumstances described in clause (ii) is 
                        continuing beyond the 60-day period described 
                        in clause (ii) or this clause, the 
                        Administrator, in consultation with the 
                        Secretary of Energy and the Secretary of 
                        Agriculture, may issue an order to reduce, for 
                        up to an additional 60-day period, the quantity 
                        of biomass-based diesel required under 
                        subparagraph (A) by an appropriate quantity 
                        that does not exceed an additional 15 percent 
                        of the applicable annual requirement for 
                        biomass-based diesel.
                    ``(F) Modification of applicable volumes.--For any 
                of the tables in paragraph (2)(B), if the Administrator 
                waives--
                            ``(i) at least 20 percent of the applicable 
                        volume requirement set forth in any such table 
                        for 2 consecutive years; or
                            ``(ii) at least 50 percent of such volume 
                        requirement for a single year,
                the Administrator shall promulgate a rule (within one 
                year after issuing such waiver) that modifies the 
                applicable volumes set forth in the table concerned for 
                all years following the final year to which the waiver 
                applies, except that no such modification in applicable 
                volumes shall be made for any year before 2016. In 
                promulgating such a rule, the Administrator shall 
                comply with the processes, criteria, and standards set 
                forth in paragraph (2)(B)(ii).''.

SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD.

    (a) In General.--The Secretary of Energy, in consultation with the 
Secretary of Agriculture and the Administrator of the Environmental 
Protection Agency, shall enter into an arrangement with the National 
Academy of Sciences under which the Academy shall conduct a study to 
assess the impact of the requirements described in section 211(o) of 
the Clean Air Act on each industry relating to the production of feed 
grains, livestock, food, forest products, and energy.
    (b) Participation.--In conducting the study under this section, the 
National Academy of Sciences shall seek the participation, and consider 
the input, of--
            (1) producers of feed grains;
            (2) producers of livestock, poultry, and pork products;
            (3) producers of food and food products;
            (4) producers of energy;
            (5) individuals and entities interested in issues relating 
        to conservation, the environment, and nutrition;
            (6) users and consumer of renewable fuels;
            (7) producers and users of biomass feedstocks; and
            (8) land grant universities.
    (c) Considerations.--In conducting the study, the National Academy 
of Sciences shall consider--
            (1) the likely impact on domestic animal agriculture 
        feedstocks that, in any crop year, are significantly below 
        current projections;
            (2) policy options to alleviate the impact on domestic 
        animal agriculture feedstocks that are significantly below 
        current projections; and
            (3) policy options to maintain regional agricultural and 
        silvicultural capability.
    (d) Components.--The study shall include--
            (1) a description of the conditions under which the 
        requirements described in section 211(o) of the Clean Air Act 
        should be suspended or reduced to prevent adverse impacts to 
        domestic animal agriculture feedstocks described in subsection 
        (c)(2) or regional agricultural and silvicultural capability 
        described in subsection (c)(3); and
            (2) recommendations for the means by which the Federal 
        Government could prevent or minimize adverse economic hardships 
        and impacts.
    (e) Deadline for Completion of Study.--Not later than 18 months 
after the date of enactment of this Act, the Secretary shall submit to 
Congress a report that describes the results of the study under this 
section.
    (f) Periodic Reviews.--Section 211(o) of the Clean Air Act is 
amended by adding the following at the end thereof:
            ``(12) Periodic reviews.--To allow for the appropriate 
        adjustment of the requirements described in subparagraph (B) of 
        paragraph (2), the Administrator shall conduct periodic reviews 
        of--
                    ``(A) existing technologies;
                    ``(B) the feasibility of achieving compliance with 
                the requirements; and
                    ``(C) the impacts of the requirements described in 
                subsection (a)(2) on each individual and entity 
                described in paragraph (2).''.

SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS.

    (a) In General.--Not later than 3 years after the enactment of this 
section and every 3 years thereafter, the Administrator of the 
Environmental Protection Agency, in consultation with the Secretary of 
Agriculture and the Secretary of Energy, shall assess and report to 
Congress on the impacts to date and likely future impacts of the 
requirements of section 211(o) of the Clean Air Act on the following:
            (1) Environmental issues, including air quality, effects on 
        hypoxia, pesticides, sediment, nutrient and pathogen levels in 
        waters, acreage and function of waters, and soil environmental 
        quality.
            (2) Resource conservation issues, including soil 
        conservation, water availability, and ecosystem health and 
        biodiversity, including impacts on forests, grasslands, and 
        wetlands.
            (3) The growth and use of cultivated invasive or noxious 
        plants and their impacts on the environment and agriculture.
In advance of preparing the report required by this subsection, the 
Administrator may seek the views of the National Academy of Sciences or 
another appropriate independent research institute. The report shall 
include the annual volume of imported renewable fuels and feedstocks 
for renewable fuels, and the environmental impacts outside the United 
States of producing such fuels and feedstocks. The report required by 
this subsection shall include recommendations for actions to address 
any adverse impacts found.
    (b) Effect on Air Quality and Other Environmental Requirements.--
Except as provided in section 211(o)(13) of the Clean Air Act, nothing 
in the amendments made by this title to section 211(o) of the Clean Air 
Act shall be construed as superseding, or limiting, any more 
environmentally protective requirement under the Clean Air Act, or 
under any other provision of State or Federal law or regulation, 
including any environmental law or regulation.

SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABELING.

    (a) In General.--Each retail diesel fuel pump shall be labeled in a 
manner that informs consumers of the percent of biomass-based diesel or 
biodiesel that is contained in the biomass-based diesel blend or 
biodiesel blend that is offered for sale, as determined by the Federal 
Trade Commission.
    (b) Labeling Requirements.--Not later than 180 days after the date 
of enactment of this section, the Federal Trade Commission shall 
promulgate biodiesel labeling requirements as follows:
            (1) Biomass-based diesel blends or biodiesel blends that 
        contain less than or equal to 5 percent biomass-based diesel or 
        biodiesel by volume and that meet ASTM D975 diesel 
        specifications shall not require any additional labels.
            (2) Biomass based diesel blends or biodiesel blends that 
        contain more than 5 percent biomass-based diesel or biodiesel 
        by volume but not more than 20 percent by volume shall be 
        labeled ``contains biomass-based diesel or biodiesel in 
        quantities between 5 percent and 20 percent''.
            (3) Biomass-based diesel or biodiesel blends that contain 
        more than 20 percent biomass based or biodiesel by volume shall 
        be labeled ``contains more than 20 percent biomass-based diesel 
        or biodiesel''.
    (c) Definitions.--In this section:
            (1) Astm.--The term ``ASTM'' means the American Society of 
        Testing and Materials.
            (2) Biomass-based diesel.--The term ``biomass-based 
        diesel'' means biodiesel as defined in section 312(f) of the 
        Energy Policy Act of 1992 (42 U.S.C. 13220(f)).
            (3) Biodiesel.--The term ``biodiesel'' means the monoalkyl 
        esters of long chain fatty acids derived from plant or animal 
        matter that meet--
                    (A) the registration requirements for fuels and 
                fuel additives under this section; and
                    (B) the requirements of ASTM standard D6751.
            (4) Biomass-based diesel and biodiesel blends.--The terms 
        ``biomass-based diesel blend'' and ``biodiesel blend'' means a 
        blend of ``biomass-based diesel'' or ``biodiesel'' fuel that is 
        blended with petroleum based diesel fuel.

SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY IN ELECTRIC 
              VEHICLES.

    (a) Definition of Electric Vehicle.--In this section, the term 
``electric vehicle'' means an electric motor vehicle (as defined in 
section 601 of the Energy Policy Act of 1992 (42 U.S.C. 13271)) for 
which the rechargeable storage battery--
            (1) receives a charge directly from a source of electric 
        current that is external to the vehicle; and
            (2) provides a minimum of 80 percent of the motive power of 
        the vehicle.
    (b) Study.--The Administrator of the Environmental Protection 
Agency shall conduct a study on the feasibility of issuing credits 
under the program established under section 211(o) of the Clean Air Act 
to electric vehicles powered by electricity produced from renewable 
energy sources.
    (c) Report.--Not later than 18 months after the date of enactment 
of this Act, the Administrator shall submit to the Committee on Energy 
and Natural Resources of the United States Senate and the Committee on 
Energy and Commerce of the United States House of Representatives a 
report that describes the results of the study, including a description 
of--
            (1) existing programs and studies on the use of renewable 
        electricity as a means of powering electric vehicles; and
            (2) alternatives for--
                    (A) designing a pilot program to determine the 
                feasibility of using renewable electricity to power 
                electric vehicles as an adjunct to a renewable fuels 
                mandate;
                    (B) allowing the use, under the pilot program 
                designed under subparagraph (A), of electricity 
                generated from nuclear energy as an additional source 
                of supply;
                    (C) identifying the source of electricity used to 
                power electric vehicles; and
                    (D) equating specific quantities of electricity to 
                quantities of renewable fuel under section 211(o) of 
                the Clean Air Act.

SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.

    (a) In General.--The Secretary of Energy shall establish a grant 
program to encourage the production of advanced biofuels.
    (b) Requirements and Priority.--In making grants under this 
section, the Secretary--
            (1) shall make awards to the proposals for advanced 
        biofuels with the greatest reduction in lifecycle greenhouse 
        gas emissions compared to the comparable motor vehicle fuel 
        lifecycle emissions during calendar year 2005; and
            (2) shall not make an award to a project that does not 
        achieve at least a 80 percent reduction in such lifecycle 
        greenhouse gas emissions.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000 for the period of 
fiscal years 2008 through 2015.

SEC. 208. INTEGRATED CONSIDERATION OF WATER QUALITY IN DETERMINATIONS 
              ON FUELS AND FUEL ADDITIVES.

    Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1)) is 
amended as follows:
            (1) By striking ``nonroad vehicle (A) if in the judgment of 
        the Administrator'' and inserting ``nonroad vehicle if, in the 
        judgment of the Administrator, any fuel or fuel additive or''; 
        and
            (2) In subparagraph (A), by striking ``air pollution 
        which'' and inserting ``air pollution or water pollution 
        (including any degradation in the quality of groundwater) 
        that''.

SEC. 209. ANTI-BACKSLIDING.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
adding at the end the following:
    ``(v) Prevention of Air Quality Deterioration.--
            ``(1) Study.--
                    ``(A) In general.--Not later than 18 months after 
                the date of enactment of this subsection, the 
                Administrator shall complete a study to determine 
                whether the renewable fuel volumes required by this 
                section will adversely impact air quality as a result 
                of changes in vehicle and engine emissions of air 
                pollutants regulated under this Act.
                    ``(B) Considerations.--The study shall include 
                consideration of--
                            ``(i) different blend levels, types of 
                        renewable fuels, and available vehicle 
                        technologies; and
                            ``(ii) appropriate national, regional, and 
                        local air quality control measures.
            ``(2) Regulations.--Not later than 3 years after the date 
        of enactment of this subsection, the Administrator shall--
                    ``(A) promulgate fuel regulations to implement 
                appropriate measures to mitigate, to the greatest 
                extent achievable, considering the results of the study 
                under paragraph (1), any adverse impacts on air 
                quality, as the result of the renewable volumes 
                required by this section; or
                    ``(B) make a determination that no such measures 
                are necessary.''.

SEC. 210. EFFECTIVE DATE, SAVINGS PROVISION, AND TRANSITION RULES.

    (a) Transition Rules.--(1) For calendar year 2008, transportation 
fuel sold or introduced into commerce in the United States (except in 
noncontiguous States or territories), that is produced from facilities 
that commence construction after the date of enactment of this Act 
shall be treated as renewable fuel within the meaning of section 211(o) 
of the Clean Air Act only if it achieves at least a 20 percent 
reduction in lifecycle greenhouse gas emissions compared to baseline 
lifecycle greenhouse gas emissions. For calendar years 2008 and 2009, 
any ethanol plant that is fired with natural gas, biomass, or any 
combination thereof is deemed to be in compliance with such 20 percent 
reduction requirement and with the 20 percent reduction requirement of 
section 211(o)(1) of the Clean Air Act. The terms used in this 
subsection shall have the same meaning as provided in the amendment 
made by this Act to section 211(o) of the Clean Air Act.
    (2) Until January 1, 2009, the Administrator of the Environmental 
Protection Agency shall implement section 211(o) of the Clean Air Act 
and the rules promulgated under that section in accordance with the 
provisions of that section as in effect before the enactment of this 
Act and in accordance with the rules promulgated before the enactment 
of this Act, except that for calendar year 2008, the number ``8.5'' 
shall be substituted for the number ``5.4'' in the table in section 
211(o)(2)(B) and in the corresponding rules promulgated to carry out 
those provisions. The Administrator is authorized to take such other 
actions as may be necessary to carry out this paragraph notwithstanding 
any other provision of law.
    (b) Savings Clause.--Section 211(o) of the Clean Air Act (42 U.S.C. 
7545(o)) is amended by adding the following new paragraph at the end 
thereof:
            ``(13) Effect on other provisions.--Nothing in this 
        subsection, or regulations issued pursuant to this subsection, 
        shall affect or be construed to affect the regulatory status of 
        carbon dioxide or any other greenhouse gas, or to expand or 
        limit regulatory authority regarding carbon dioxide or any 
        other greenhouse gas, for purposes of other provisions 
        (including section 165) of this Act. The previous sentence 
        shall not affect implementation and enforcement of this 
        subsection.''.
    (c) Effective Date.--The amendments made by this title to section 
211(o) of the Clean Air Act shall take effect January 1, 2009, except 
that the Administrator shall promulgate regulations to carry out such 
amendments not later than one year after the enactment of this Act.

             Subtitle B--Biofuels Research and Development

SEC. 221. BIODIESEL.

    (a) Biodiesel Study.--Not later than 180 days after the date of 
enactment of this Act, the Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, shall submit to 
Congress a report on any research and development challenges inherent 
in increasing the proportion of diesel fuel sold in the United States 
that is biodiesel.
    (b) Material for the Establishment of Standards.--The Director of 
the National Institute of Standards and Technology, in consultation 
with the Secretary, shall make publicly available the physical property 
data and characterization of biodiesel and other biofuels as 
appropriate.

SEC. 222. BIOGAS.

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

SEC. 223. GRANTS FOR BIOFUEL PRODUCTION RESEARCH AND DEVELOPMENT IN 
              CERTAIN STATES.

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

SEC. 224. BIOREFINERY ENERGY EFFICIENCY.

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

SEC. 225. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES TO USE E-85 
              FUEL.

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

SEC. 226. STUDY OF ENGINE DURABILITY AND PERFORMANCE ASSOCIATED WITH 
              THE USE OF BIODIESEL.

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

SEC. 227. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS VEHICLES.

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

SEC. 228. ALGAL BIOMASS.

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

SEC. 229. BIOFUELS AND BIOREFINERY INFORMATION CENTER.

    (a) In General.--The Secretary, in cooperation with the Secretary 
of Agriculture, shall establish a biofuels and biorefinery information 
center to make available to interested parties information on--
            (1) renewable fuel feedstocks, including the varieties of 
        fuel capable of being produced from various feedstocks;
            (2) biorefinery processing techniques related to various 
        renewable fuel feedstocks;
            (3) the distribution, blending, storage, and retail 
        dispensing infrastructure necessary for the transport and use 
        of renewable fuels;
            (4) Federal and State laws and incentives related to 
        renewable fuel production and use;
            (5) renewable fuel research and development advancements;
            (6) renewable fuel development and biorefinery processes 
        and technologies;
            (7) renewable fuel resources, including information on 
        programs and incentives for renewable fuels;
            (8) renewable fuel producers;
            (9) renewable fuel users; and
            (10) potential renewable fuel users.
    (b) Administration.--In administering the biofuels and biorefinery 
information center, the Secretary shall--
            (1) continually update information provided by the center;
            (2) make information available relating to processes and 
        technologies for renewable fuel production;
            (3) make information available to interested parties on the 
        process for establishing a biorefinery; and
            (4) make information and assistance provided by the center 
        available through a toll-free telephone number and website.
    (c) Coordination and Nonduplication.--To maximum extent 
practicable, the Secretary shall ensure that the activities under this 
section are coordinated with, and do not duplicate the efforts of, 
centers at other government agencies.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 230. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH.

    (a) Definition of Eligible Entity.--In this section, the term 
``eligible entity'' means--
            (1) an 1890 Institution (as defined in section 2 of the 
        Agricultural Research, Extension, and Education Reform Act of 
        1998 (7 U.S.C. 7061));
            (2) a part B institution (as defined in section 322 of the 
        Higher Education Act of 1965 (20 U.S.C. 1061)) (commonly 
        referred to as ``Historically Black Colleges and 
        Universities'');
            (3) a tribal college or university (as defined in section 
        316(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1059c(b)); or
            (4) a Hispanic-serving institution (as defined in section 
        502(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1101a(a)).
    (b) Grants.--The Secretary shall make cellulosic ethanol and 
biofuels research and development grants to 10 eligible entities 
selected by the Secretary to receive a grant under this section through 
a peer-reviewed competitive process.
    (c) Collaboration.--An eligible entity that is selected to receive 
a grant under subsection (b) shall collaborate with 1 of the Bioenergy 
Research Centers of the Office of Science of the Department.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to make grants described in subsection 
(b) $50,000,000 for fiscal year 2008, to remain available until 
expended.

SEC. 231. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION OF 
              APPROPRIATION.

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

SEC. 232. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.

    (a) In General.--Section 977 of the Energy Policy Act of 2005 (42 
U.S.C. 16317) is amended--
            (1) in subsection (a)(1), by striking ``and computational 
        biology'' and inserting ``computational biology, and 
        environmental science''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``in sustainable 
                production systems that reduce greenhouse gas 
                emissions'' after ``hydrogen'';
                    (B) in paragraph (3), by striking ``and'' at the 
                end;
                    (C) by redesignating paragraph (4) as paragraph 
                (5); and
                    (D) by inserting after paragraph (3) the following:
            ``(4) develop cellulosic and other feedstocks that are less 
        resource and land intensive and that promote sustainable use of 
        resources, including soil, water, energy, forests, and land, 
        and ensure protection of air, water, and soil quality; and''.
    (b) Tools and Evaluation.--Section 307(d) of the Biomass Research 
and Development Act of 2000 (7 U.S.C. 8606(d)) is amended--
            (1) in paragraph (3)(E), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(5) the improvement and development of analytical tools 
        to facilitate the analysis of life-cycle energy and greenhouse 
        gas emissions, including emissions related to direct and 
        indirect land use changes, attributable to all potential 
        biofuel feedstocks and production processes; and
            ``(6) the systematic evaluation of the impact of expanded 
        biofuel production on the environment, including forest lands, 
        and on the food supply for humans and animals.''.
    (c) Small-Scale Production and Use of Biofuels.--Section 307(e) of 
the Biomass Research and Development Act of 2000 (7 U.S.C. 8606(e)) is 
amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) to facilitate small-scale production, local, and on-
        farm use of biofuels, including the development of small-scale 
        gasification technologies for production of biofuel from 
        cellulosic feedstocks.''.

SEC. 233. BIOENERGY RESEARCH CENTERS.

    Section 977 of the Energy Policy Act of 2005 (42 U.S.C. 16317) is 
amended by adding at the end the following:
    ``(f) Bioenergy Research Centers.--
            ``(1) Establishment of centers.--In carrying out the 
        program under subsection (a), the Secretary shall establish at 
        least 7 bioenergy research centers, which may be of varying 
        size.
            ``(2) Geographic distribution.--The Secretary shall 
        establish at least 1 bioenergy research center in each 
        Petroleum Administration for Defense District or Subdistrict of 
        a Petroleum Administration for Defense District.
            ``(3) Goals.--The goals of the centers established under 
        this subsection shall be to accelerate basic transformational 
        research and development of biofuels, including biological 
        processes.
            ``(4) Selection and duration.--
                    ``(A) In general.--A center under this subsection 
                shall be selected on a competitive basis for a period 
                of 5 years.
                    ``(B) Reapplication.--After the end of the period 
                described in subparagraph (A), a grantee may reapply 
                for selection on a competitive basis.
            ``(5) Inclusion.--A center that is in existence on the date 
        of enactment of this subsection--
                    ``(A) shall be counted towards the requirement for 
                establishment of at least 7 bioenergy research centers; 
                and
                    ``(B) may continue to receive support for a period 
                of 5 years beginning on the date of establishment of 
                the center.''.

SEC. 234. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.

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

                  Subtitle C--Biofuels Infrastructure

SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS RELATED TO 
              RENEWABLE FUEL INFRASTRUCTURE.

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

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

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

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

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

SEC. 242. RENEWABLE FUEL DISPENSER REQUIREMENTS.

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

SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY.

    (a) In General.--The Secretary, in coordination with the Secretary 
of Transportation, shall conduct a study of the feasibility of the 
construction of pipelines dedicated to the transportation of ethanol.
    (b) Factors for Consideration.--In conducting the study under 
subsection (a), the Secretary shall take into consideration--
            (1) the quantity of ethanol production that would make 
        dedicated pipelines economically viable;
            (2) existing or potential barriers to the construction of 
        pipelines dedicated to the transportation of ethanol, including 
        technical, siting, financing, and regulatory barriers;
            (3) market risk (including throughput risk) and means of 
        mitigating the risk;
            (4) regulatory, financing, and siting options that would 
        mitigate the risk and help ensure the construction of 1 or more 
        pipelines dedicated to the transportation of ethanol;
            (5) financial incentives that may be necessary for the 
        construction of pipelines dedicated to the transportation of 
        ethanol, including the return on equity that sponsors of the 
        initial dedicated ethanol pipelines will require to invest in 
        the pipelines;
            (6) technical factors that may compromise the safe 
        transportation of ethanol in pipelines, including 
        identification of remedial and preventive measures to ensure 
        pipeline integrity; and
            (7) such other factors as the Secretary considers to be 
        appropriate.
    (c) Report.--Not later than 15 months after the date of enactment 
of this Act, the Secretary shall submit to Congress a report describing 
the results of the study conducted under this section.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $1,000,000 for 
each of fiscal years 2008 and 2009, to remain available until expended.

SEC. 244. RENEWABLE FUEL INFRASTRUCTURE GRANTS.

    (a) Definition of Renewable Fuel Blend.--For purposes of this 
section, the term ``renewable fuel blend'' means gasoline blend that 
contain not less than 11 percent, and not more than 85 percent, 
renewable fuel or diesel fuel that contains at least 10 percent 
renewable fuel.
    (b) Infrastructure Development Grants.--
            (1) Establishment.--The Secretary shall establish a program 
        for making grants for providing assistance to retail and 
        wholesale motor fuel dealers or other entities for the 
        installation, replacement, or conversion of motor fuel storage 
        and dispensing infrastructure to be used exclusively to store 
        and dispense renewable fuel blends.
            (2) Selection criteria.--Not later than 12 months after the 
        date of enactment of this Act, the Secretary shall establish 
        criteria for evaluating applications for grants under this 
        subsection that will maximize the availability and use of 
        renewable fuel blends, and that will ensure that renewable fuel 
        blends are available across the country. Such criteria shall 
        provide for--
                    (A) consideration of the public demand for each 
                renewable fuel blend in a particular geographic area 
                based on State registration records showing the number 
                of flexible-fuel vehicles;
                    (B) consideration of the opportunity to create or 
                expand corridors of renewable fuel blend stations along 
                interstate or State highways;
                    (C) consideration of the experience of each 
                applicant with previous, similar projects;
                    (D) consideration of population, number of 
                flexible-fuel vehicles, number of retail fuel outlets, 
                and saturation of flexible-fuel vehicles; and
                    (E) priority consideration to applications that--
                            (i) are most likely to maximize 
                        displacement of petroleum consumption, measured 
                        as a total quantity and a percentage;
                            (ii) are best able to incorporate existing 
                        infrastructure while maximizing, to the extent 
                        practicable, the use of renewable fuel blends; 
                        and
                            (iii) demonstrate the greatest commitment 
                        on the part of the applicant to ensure funding 
                        for the proposed project and the greatest 
                        likelihood that the project will be maintained 
                        or expanded after Federal assistance under this 
                        subsection is completed.
            (3) Limitations.--Assistance provided under this subsection 
        shall not exceed--
                    (A) 33 percent of the estimated cost of the 
                installation, replacement, or conversion of motor fuel 
                storage and dispensing infrastructure; or
                    (B) $180,000 for a combination of equipment at any 
                one retail outlet location.
            (4) Operation of renewable fuel blend stations.--The 
        Secretary shall establish rules that set forth requirements for 
        grant recipients under this section that include providing to 
        the public the renewable fuel blends, establishing a marketing 
        plan that informs consumers of the price and availability of 
        the renewable fuel blends, clearly labeling the dispensers and 
        related equipment, and providing periodic reports on the status 
        of the renewable fuel blend sales, the type and amount of the 
        renewable fuel blends dispensed at each location, and the 
        average price of such fuel.
            (5) Notification requirements.--Not later than the date on 
        which each renewable fuel blend station begins to offer 
        renewable fuel blends to the public, the grant recipient that 
        used grant funds to construct or upgrade such station shall 
        notify the Secretary of such opening. The Secretary shall add 
        each new renewable fuel blend station to the renewable fuel 
        blend station locator on its Website when it receives 
        notification under this subsection.
            (6) Double counting.--No person that receives a credit 
        under section 30C of the Internal Revenue Code of 1986 may 
        receive assistance under this section.
            (7) Reservation of funds.--The Secretary shall reserve 
        funds appropriated for the renewable fuel blends infrastructure 
        development grant program for technical and marketing 
        assistance described in subsection (c).
    (c) Retail Technical and Marketing Assistance.--The Secretary shall 
enter into contracts with entities with demonstrated experience in 
assisting retail fueling stations in installing refueling systems and 
marketing renewable fuel blends nationally, for the provision of 
technical and marketing assistance to recipients of grants under this 
section. Such assistance shall include--
            (1) technical advice for compliance with applicable Federal 
        and State environmental requirements;
            (2) help in identifying supply sources and securing long-
        term contracts; and
            (3) provision of public outreach, education, and labeling 
        materials.
    (d) Refueling Infrastructure Corridors.--
            (1) In general.--The Secretary shall establish a 
        competitive grant pilot program (referred to in this subsection 
        as the ``pilot program''), to be administered through the 
        Vehicle Technology Deployment Program of the Department, to 
        provide not more than 10 geographically-dispersed project 
        grants to State governments, Indian tribal governments, local 
        governments, metropolitan transportation authorities, or 
        partnerships of those entities to carry out 1 or more projects 
        for the purposes described in paragraph (2).
            (2) Grant purposes.--A grant under this subsection shall be 
        used for the establishment of refueling infrastructure 
        corridors, as designated by the Secretary, for renewable fuel 
        blends, including--
                    (A) installation of infrastructure and equipment 
                necessary to ensure adequate distribution of renewable 
                fuel blends within the corridor;
                    (B) installation of infrastructure and equipment 
                necessary to directly support vehicles powered by 
                renewable fuel blends; and
                    (C) operation and maintenance of infrastructure and 
                equipment installed as part of a project funded by the 
                grant.
            (3) Applications.--
                    (A) Requirements.--
                            (i) In general.--Subject to clause (ii), 
                        not later than 90 days after the date of 
                        enactment of this Act, the Secretary shall 
                        issue requirements for use in applying for 
                        grants under the pilot program.
                            (ii) Minimum requirements.--At a minimum, 
                        the Secretary shall require that an application 
                        for a grant under this subsection--
                                    (I) be submitted by--
                                            (aa) the head of a State, 
                                        tribal, or local government or 
                                        a metropolitan transportation 
                                        authority, or any combination 
                                        of those entities; and
                                            (bb) a registered 
                                        participant in the Vehicle 
                                        Technology Deployment Program 
                                        of the Department; and
                                    (II) include--
                                            (aa) a description of the 
                                        project proposed in the 
                                        application, including the ways 
                                        in which the project meets the 
                                        requirements of this 
                                        subsection;
                                            (bb) an estimate of the 
                                        degree of use of the project, 
                                        including the estimated size of 
                                        fleet of vehicles operated with 
                                        renewable fuels blend available 
                                        within the geographic region of 
                                        the corridor, measured as a 
                                        total quantity and a 
                                        percentage;
                                            (cc) an estimate of the 
                                        potential petroleum displaced 
                                        as a result of the project 
                                        (measured as a total quantity 
                                        and a percentage), and a plan 
                                        to collect and disseminate 
                                        petroleum displacement and 
                                        other relevant data relating to 
                                        the project to be funded under 
                                        the grant, over the expected 
                                        life of the project;
                                            (dd) a description of the 
                                        means by which the project will 
                                        be sustainable without Federal 
                                        assistance after the completion 
                                        of the term of the grant;
                                            (ee) a complete description 
                                        of the costs of the project, 
                                        including acquisition, 
                                        construction, operation, and 
                                        maintenance costs over the 
                                        expected life of the project; 
                                        and
                                            (ff) a description of which 
                                        costs of the project will be 
                                        supported by Federal assistance 
                                        under this subsection.
                    (B) Partners.--An applicant under subparagraph (A) 
                may carry out a project under the pilot program in 
                partnership with public and private entities.
            (4) Selection criteria.--In evaluating applications under 
        the pilot program, the Secretary shall--
                    (A) consider the experience of each applicant with 
                previous, similar projects; and
                    (B) give priority consideration to applications 
                that--
                            (i) are most likely to maximize 
                        displacement of petroleum consumption, measured 
                        as a total quantity and a percentage;
                            (ii) are best able to incorporate existing 
                        infrastructure while maximizing, to the extent 
                        practicable, the use of advanced biofuels;
                            (iii) demonstrate the greatest commitment 
                        on the part of the applicant to ensure funding 
                        for the proposed project and the greatest 
                        likelihood that the project will be maintained 
                        or expanded after Federal assistance under this 
                        subsection is completed;
                            (iv) represent a partnership of public and 
                        private entities; and
                            (v) exceed the minimum requirements of 
                        paragraph (3)(A)(ii).
            (5) Pilot project requirements.--
                    (A) Maximum amount.--The Secretary shall provide 
                not more than $20,000,000 in Federal assistance under 
                the pilot program to any applicant.
                    (B) Cost sharing.--The non-Federal share of the 
                cost of any activity relating to renewable fuel blend 
                infrastructure development carried out using funds from 
                a grant under this subsection shall be not less than 20 
                percent.
                    (C) Maximum period of grants.--The Secretary shall 
                not provide funds to any applicant under the pilot 
                program for more than 2 years.
                    (D) Deployment and distribution.--The Secretary 
                shall seek, to the maximum extent practicable, to 
                ensure a broad geographic distribution of project sites 
                funded by grants under this subsection.
                    (E) Transfer of information and knowledge.--The 
                Secretary shall establish mechanisms to ensure that the 
                information and knowledge gained by participants in the 
                pilot program are transferred among the pilot program 
                participants and to other interested parties, including 
                other applicants that submitted applications.
            (6) Schedule.--
                    (A) Initial grants.--
                            (i) In general.--Not later than 90 days 
                        after the date of enactment of this Act, the 
                        Secretary shall publish in the Federal 
                        Register, Commerce Business Daily, and such 
                        other publications as the Secretary considers 
                        to be appropriate, a notice and request for 
                        applications to carry out projects under the 
                        pilot program.
                            (ii) Deadline.--An application described in 
                        clause (i) shall be submitted to the Secretary 
                        by not later than 180 days after the date of 
                        publication of the notice under that clause.
                            (iii) Initial selection.--Not later than 90 
                        days after the date by which applications for 
                        grants are due under clause (ii), the Secretary 
                        shall select by competitive, peer-reviewed 
                        proposal up to 5 applications for projects to 
                        be awarded a grant under the pilot program.
                    (B) Additional grants.--
                            (i) In general.--Not later than 2 years 
                        after the date of enactment of this Act, the 
                        Secretary shall publish in the Federal 
                        Register, Commerce Business Daily, and such 
                        other publications as the Secretary considers 
                        to be appropriate, a notice and request for 
                        additional applications to carry out projects 
                        under the pilot program that incorporate the 
                        information and knowledge obtained through the 
                        implementation of the first round of projects 
                        authorized under the pilot program.
                            (ii) Deadline.--An application described in 
                        clause (i) shall be submitted to the Secretary 
                        by not later than 180 days after the date of 
                        publication of the notice under that clause.
                            (iii) Initial selection.--Not later than 90 
                        days after the date by which applications for 
                        grants are due under clause (ii), the Secretary 
                        shall select by competitive, peer-reviewed 
                        proposal such additional applications for 
                        projects to be awarded a grant under the pilot 
                        program as the Secretary determines to be 
                        appropriate.
            (7) Reports to congress.--
                    (A) Initial report.--Not later than 60 days after 
                the date on which grants are awarded under this 
                subsection, the Secretary shall submit to Congress a 
                report containing--
                            (i) an identification of the grant 
                        recipients and a description of the projects to 
                        be funded under the pilot program;
                            (ii) an identification of other applicants 
                        that submitted applications for the pilot 
                        program but to which funding was not provided; 
                        and
                            (iii) a description of the mechanisms used 
                        by the Secretary to ensure that the information 
                        and knowledge gained by participants in the 
                        pilot program are transferred among the pilot 
                        program participants and to other interested 
                        parties, including other applicants that 
                        submitted applications.
                    (B) Evaluation.--Not later than 2 years after the 
                date of enactment of this Act, and annually thereafter 
                until the termination of the pilot program, the 
                Secretary shall submit to Congress a report containing 
                an evaluation of the effectiveness of the pilot 
                program, including an assessment of the petroleum 
                displacement and benefits to the environment derived 
                from the projects included in the pilot program.
    (e) Restriction.--No grant shall be provided under subsection (b) 
or (c) to a large, vertically integrated oil company.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section 
$200,000,000 for each of the fiscal years 2008 through 2014.

SEC. 245. STUDY OF THE ADEQUACY OF TRANSPORTATION OF DOMESTICALLY-
              PRODUCED RENEWABLE FUEL BY RAILROADS AND OTHER MODES OF 
              TRANSPORTATION.

    (a) Study.--
            (1) In general.--The Secretary, in coordination with the 
        Secretary of Transportation, shall jointly conduct a study of 
        the adequacy of transportation of domestically-produced 
        renewable fuels by railroad and other modes of transportation 
        as designated by the Secretaries.
            (2) Components.--In conducting the study under paragraph 
        (1), the Secretaries shall--
                    (A) consider the adequacy of existing railroad and 
                other transportation and distribution infrastructure, 
                equipment, service and capacity to move the necessary 
                quantities of domestically-produced renewable fuel 
                within the timeframes;
                    (B)(i) consider the projected costs of moving the 
                domestically-produced renewable fuel by railroad and 
                other modes transportation; and
                    (ii) consider the impact of the projected costs on 
                the marketability of the domestically-produced 
                renewable fuel;
                    (C) identify current and potential impediments to 
                the reliable transportation and distribution of 
                adequate supplies of domestically-produced renewable 
                fuel at reasonable prices, including practices 
                currently utilized by domestic producers, shippers, and 
                receivers of renewable fuels;
                    (D) consider whether adequate competition exists 
                within and between modes of transportation for the 
                transportation and distribution of domestically-
                produced renewable fuel and, whether inadequate 
                competition leads to an unfair price for the 
                transportation and distribution of domestically-
                produced renewable fuel or unacceptable service for 
                transportation of domestically-produced renewable fuel;
                    (E) consider whether Federal agencies have adequate 
                legal authority to address instances of inadequate 
                competition when inadequate competition is found to 
                prevent domestic producers for renewable fuels from 
                obtaining a fair and reasonable transportation price or 
                acceptable service for the transportation and 
                distribution of domestically-produced renewable fuels;
                    (F) consider whether Federal agencies have adequate 
                legal authority to address railroad and transportation 
                service problems that may be resulting in inadequate 
                supplies of domestically-produced renewable fuel in any 
                area of the United States;
                    (G) consider what transportation infrastructure 
                capital expenditures may be necessary to ensure the 
                reliable transportation of adequate supplies of 
                domestically-produced renewable fuel at reasonable 
                prices within the United States and which public and 
                private entities should be responsible for making such 
                expenditures; and
                    (H) provide recommendations on ways to facilitate 
                the reliable transportation of adequate supplies of 
                domestically-produced renewable fuel at reasonable 
                prices.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretaries shall jointly submit to the Committee on 
Commerce, Science and Transportation, the Committee on Energy and 
Natural Resources, and the Committee on Environment and Public Works of 
the Senate and the Committee on Transportation and Infrastructure and 
the Committee on Energy and Commerce of the House of Representatives a 
report that describes the results of the study conducted under 
subsection (a).

SEC. 246. FEDERAL FLEET FUELING CENTERS.

    (a) In General.--Not later than January 1, 2010, the head of each 
Federal agency shall install at least 1 renewable fuel pump at each 
Federal fleet fueling center in the United States under the 
jurisdiction of the head of the Federal agency.
    (b) Report.--Not later than October 31 of the first calendar year 
beginning after the date of the enactment of this Act, and each October 
31 thereafter, the President shall submit to Congress a report that 
describes the progress toward complying with subsection (a), including 
identifying--
            (1) the number of Federal fleet fueling centers that 
        contain at least 1 renewable fuel pump; and
            (2) the number of Federal fleet fueling centers that do not 
        contain any renewable fuel pumps.
    (c) Department of Defense Facility.--This section shall not apply 
to a Department of Defense fueling center with a fuel turnover rate of 
less than 100,000 gallons of fuel per year.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 247. STANDARD SPECIFICATIONS FOR BIODIESEL.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
redesignating subsection (s) as subsection (t), redesignating 
subsection (r) (relating to conversion assistance for cellulosic 
biomass, waste-derived ethanol, approved renewable fuels) as subsection 
(s) and by adding the following new subsection at the end thereof:
    ``(u) Standard Specifications for Biodiesel.--(1) Unless the 
American Society for Testing and Materials has adopted a standard for 
diesel fuel containing 20 percent biodiesel (commonly known as `B20') 
within 1 year after the date of enactment of this subsection, the 
Administrator shall initiate a rulemaking to establish a uniform per 
gallon fuel standard for such fuel and designate an identification 
number so that vehicle manufacturers are able to design engines to use 
fuel meeting such standard.
    ``(2) Unless the American Society for Testing and Materials has 
adopted a standard for diesel fuel containing 5 percent biodiesel 
(commonly known as `B5') within 1 year after the date of enactment of 
this subsection, the Administrator shall initiate a rulemaking to 
establish a uniform per gallon fuel standard for such fuel and 
designate an identification so that vehicle manufacturers are able to 
design engines to use fuel meeting such standard.
    ``(3) Whenever the Administrator is required to initiate a 
rulemaking under paragraph (1) or (2), the Administrator shall 
promulgate a final rule within 18 months after the date of the 
enactment of this subsection.
    ``(4) Not later than 180 days after the enactment of this 
subsection, the Administrator shall establish an annual inspection and 
enforcement program to ensure that diesel fuel containing biodiesel 
sold or distributed in interstate commerce meets the standards 
established under regulations under this section, including testing and 
certification for compliance with applicable standards of the American 
Society for Testing and Materials. There are authorized to be 
appropriated to carry out the inspection and enforcement program under 
this paragraph $3,000,000 for each of fiscal years 2008 through 2010.
    ``(5) For purposes of this subsection, the term `biodiesel' has the 
meaning provided by section 312(f) of Energy Policy Act of 1992 (42 
U.S.C. 13220(f)).''.

SEC. 248. BIOFUELS DISTRIBUTION AND ADVANCED BIOFUELS INFRASTRUCTURE.

    (a) In General.--The Secretary, in coordination with the Secretary 
of Transportation and in consultation with the Administrator of the 
Environmental Protection Agency, shall carry out a program of research, 
development, and demonstration relating to existing transportation fuel 
distribution infrastructure and new alternative distribution 
infrastructure.
    (b) Focus.--The program described in subsection (a) shall focus on 
the physical and chemical properties of biofuels and efforts to prevent 
or mitigate against adverse impacts of those properties in the areas 
of--
            (1) corrosion of metal, plastic, rubber, cork, fiberglass, 
        glues, or any other material used in pipes and storage tanks;
            (2) dissolving of storage tank sediments;
            (3) clogging of filters;
            (4) contamination from water or other adulterants or 
        pollutants;
            (5) poor flow properties related to low temperatures;
            (6) oxidative and thermal instability in long-term storage 
        and uses;
            (7) microbial contamination;
            (8) problems associated with electrical conductivity; and
            (9) such other areas as the Secretary considers 
        appropriate.

                  Subtitle D--Environmental Safeguards

SEC. 251. WAIVER FOR FUEL OR FUEL ADDITIVES.

    Section 211(f)(4) of the Clean Air Act (42 U.S.C. 7545(f)) is 
amended to read as follows:
    ``(4) The Administrator, upon application of any manufacturer of 
any fuel or fuel additive, may waive the prohibitions established under 
paragraph (1) or (3) of this subsection or the limitation specified in 
paragraph (2) of this subsection, if he determines that the applicant 
has established that such fuel or fuel additive or a specified 
concentration thereof, and the emission products of such fuel or fuel 
additive or specified concentration thereof, will not cause or 
contribute to a failure of any emission control device or system (over 
the useful life of the motor vehicle, motor vehicle engine, nonroad 
engine or nonroad vehicle in which such device or system is used) to 
achieve compliance by the vehicle or engine with the emission standards 
with respect to which it has been certified pursuant to sections 206 
and 213(a). The Administrator shall take final action to grant or deny 
an application submitted under this paragraph, after public notice and 
comment, within 270 days of the receipt of such an application.''.

TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND 
                                LIGHTING

                Subtitle A--Appliance Energy Efficiency

SEC. 301. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS.

    (a) Definitions.--Section 321 of the Energy Policy and Conservation 
Act (42 U.S.C. 6291) is amended--
            (1) in paragraph (36)--
                    (A) by striking ``(36) The'' and inserting the 
                following:
            ``(36) External power supply.--
                    ``(A) In general.--The''; and
                    (B) by adding at the end the following:
                    ``(B) Active mode.--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.
                    ``(C) Class a external power supply.--
                            ``(i) In general.--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 1 
                                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 
                                that is less than or equal to 250 
                                watts.
                            ``(ii) Exclusions.--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 in 
                                accordance with section 513 of the 
                                Federal Food, Drug, and Cosmetic Act 
                                (21 U.S.C. 360c); 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) No-load mode.--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.''; and
            (2) by adding at the end the following:
            ``(52) Detachable battery.--The term `detachable battery' 
        means a battery that is--
                    ``(A) contained in a separate enclosure from the 
                product; and
                    ``(B) intended to be removed or disconnected from 
                the product for recharging.''.
    (b) 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:
            ``(17) Class a external power supplies.--Test procedures 
        for class A external power supplies shall be based on the `Test 
        Method for Calculating the Energy Efficiency of Single-Voltage 
        External AC-DC and AC-AC Power Supplies' published by the 
        Environmental Protection Agency on August 11, 2004, except that 
        the test voltage specified in section 4(d) of that test method 
        shall be only 115 volts, 60 Hz.''.
    (c) Efficiency Standards for Class A External Power Supplies.--
Section 325(u) of the Energy Policy and Conservation Act (42 U.S.C. 
6295(u)) is amended by adding at the end the following:
            ``(6) Efficiency standards for class a external power 
        supplies.--
                    ``(A) In general.--Subject to subparagraphs (B) 
                through (D), a class A external power supply 
                manufactured on or after the later of July 1, 2008, or 
                the date of enactment of this paragraph shall meet the 
                following standards:


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

                    ``(B) Noncovered supplies.--A class A external 
                power supply shall not be subject to subparagraph (A) 
                if the class A external power supply is--
                            ``(i) manufactured during the period 
                        beginning on July 1, 2008, and ending on June 
                        30, 2015; and
                            ``(ii) 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.
                    ``(C) Marking.--Any class A external power supply 
                manufactured on or after the later of July 1, 2008 or 
                the date of enactment of this paragraph 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) Amendment of standards.--
                            ``(i) Final rule by july 1, 2011.--
                                    ``(I) In general.--Not later than 
                                July 1, 2011, the Secretary shall 
                                publish a final rule to determine 
                                whether the standards established under 
                                subparagraph (A) should be amended.
                                    ``(II) Administration.--The final 
                                rule shall--
                                            ``(aa) contain any amended 
                                        standards; and
                                            ``(bb) apply to products 
                                        manufactured on or after July 
                                        1, 2013.
                            ``(ii) Final rule by july 1, 2015.--
                                    ``(I) In general.--Not later than 
                                July 1, 2015 the Secretary shall 
                                publish a final rule to determine 
                                whether the standards then in effect 
                                should be amended.
                                    ``(II) Administration.--The final 
                                rule shall--
                                            ``(aa) contain any amended 
                                        standards; and
                                            ``(bb) apply to products 
                                        manufactured on or after July 
                                        1, 2017.
            ``(7) End-use products.--An energy conservation standard 
        for external power supplies shall not constitute an energy 
        conservation standard for the separate end-use product to which 
        the external power supplies is connected.''.

SEC. 302. UPDATING APPLIANCE TEST PROCEDURES.

    (a) Consumer Appliances.--Section 323(b)(1) of the Energy Policy 
and Conservation Act (42 U.S.C. 6293(b)(1)) is amended by striking 
``(1)'' and all that follows through the end of the paragraph and 
inserting the following:
            ``(1) Test procedures.--
                    ``(A) Amendment.--At least once every 7 years, the 
                Secretary shall review test procedures for all covered 
                products and--
                            ``(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) of the Energy Policy and 
Conservation Act (42 U.S.C. 6313(a)) is amended by striking ``(a)'' and 
all that follows through the end of paragraph (1) and inserting the 
following:
    ``(a) Prescription by Secretary; Requirements.--
            ``(1) Test procedures.--
                    ``(A) Amendment.--At least once every 7 years, the 
                Secretary shall conduct an evaluation of each class of 
                covered equipment and--
                            ``(i) 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 the class in accordance with 
                        this section; or
                            ``(ii) shall publish notice in the Federal 
                        Register of any determination not to amend a 
                        test procedure.''.

SEC. 303. RESIDENTIAL BOILERS.

    Section 325(f) of the Energy Policy and Conservation Act (42 U.S.C. 
6295(f)) is amended--
            (1) in the subsection heading, by inserting ``and Boilers'' 
        after ``Furnaces'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following:
            ``(3) Boilers.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), 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 (other than a boiler equipped with a 
                        tankless domestic water heating coil) 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 1 input rate, the requirements of 
                        this subparagraph may be satisfied by providing 
                        an automatic means that allows the burner or 
                        heating element to fire only when the means has 
                        determined that the inferred heat load cannot 
                        be met by the residual heat of the water in the 
                        system.
                            ``(iii) No inferred heat load.--When there 
                        is no inferred heat load with respect to a hot 
                        water boiler, the automatic means described in 
                        clause (i) and (ii) shall limit the temperature 
                        of the water in the boiler to not more than 140 
                        degrees Fahrenheit.
                            ``(iv) Operation.--A boiler described in 
                        clause (i) or (ii) shall be operable only when 
                        the automatic means described in clauses (i), 
                        (ii), and (iii) is installed.
                    ``(C) Exception.--A boiler that is manufactured to 
                operate without any need for electricity or any 
                electric connection, electric gauges, electric pumps, 
                electric wires, or electric devices shall not be 
                required to meet the requirements of this paragraph.''.

SEC. 304. FURNACE FAN STANDARD PROCESS.

    Paragraph (4)(D) of section 325(f) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(f)) (as redesignated by section 
303(4)) is amended by striking ``the Secretary may'' and inserting 
``not later than December 31, 2013, the Secretary shall''.

SEC. 305. IMPROVING SCHEDULE FOR STANDARDS UPDATING AND CLARIFYING 
              STATE AUTHORITY.

    (a) Consumer Appliances.--Section 325 of the Energy Policy and 
Conservation Act (42 U.S.C. 6295) is amended by striking subsection (m) 
and inserting the following:
    ``(m) Amendment of Standards.--
            ``(1) In general.--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--
                    ``(A) a notice of the determination of the 
                Secretary that standards for the product do not need to 
                be amended, based on the criteria established under 
                subsection (n)(2); or
                    ``(B) a notice of proposed rulemaking including new 
                proposed standards based on the criteria established 
                under subsection (o) and the procedures established 
                under subsection (p).
            ``(2) Notice.--If the Secretary publishes a notice under 
        paragraph (1), the Secretary shall--
                    ``(A) publish a notice stating that the analysis of 
                the Department is publicly available; and
                    ``(B) provide an opportunity for written comment.
            ``(3) Amendment of standard; new determination.--
                    ``(A) Amendment of standard.--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.
                    ``(B) New determination.--Not later than 3 years 
                after a determination under paragraph (1)(A), the 
                Secretary shall make a new determination and 
                publication under subparagraph (A) or (B) of paragraph 
                (1).
            ``(4) Application to products.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an amendment prescribed under this 
                subsection shall apply to--
                            ``(i) with respect to refrigerators, 
                        refrigerator-freezers, freezers, room air 
                        conditioners, dishwashers, clothes washers, 
                        clothes dryers, fluorescent lamp ballasts, and 
                        kitchen ranges and ovens, such a product that 
                        is manufactured after the date that is 3 years 
                        after publication of the final rule 
                        establishing an applicable standard; and
                            ``(ii) with respect to central air 
                        conditioners, heat pumps, water heaters, pool 
                        heaters, direct heating equipment, and 
                        furnaces, such a product that is manufactured 
                        after the date that is 5 years after 
                        publication of the final rule establishing an 
                        applicable standard.
                    ``(B) Other new standards.--A manufacturer shall 
                not be required to apply new standards to a product 
                with respect to which other new standards have been 
                required during the prior 6-year period.
            ``(5) Reports.--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 established under 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 striking ``(6)(A)(i)'' and all that follows through 
        the end of subparagraph (B) and inserting the following:
            ``(6) Amended energy efficiency standards.--
                    ``(A) In general.--
                            ``(i) Analysis of potential energy 
                        savings.--If ASHRAE/IES Standard 90.1 is 
                        amended with respect to any small commercial 
                        package air conditioning and heating equipment, 
                        large commercial package air conditioning and 
                        heating equipment, 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, not later than 180 days 
                        after the amendment of the standard, the 
                        Secretary shall publish in the Federal Register 
                        for public comment an analysis of the energy 
                        savings potential of amended energy efficiency 
                        standards.
                            ``(ii) Amended uniform national standard 
                        for products.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), not later 
                                than 18 months after the date of 
                                publication of the amendment to the 
                                ASHRAE/IES Standard 90.1 for a product 
                                described in clause (i), the Secretary 
                                shall establish an amended uniform 
                                national standard for the product at 
                                the minimum level specified in the 
                                amended ASHRAE/IES Standard 90.1.
                                    ``(II) More stringent standard.--
                                Subclause (I) shall not apply if 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 the amended ASHRAE/
                                IES Standard 90.1 for the product would 
                                result in significant additional 
                                conservation of energy and is 
                                technologically feasible and 
                                economically justified.
                    ``(B) Rule.--If the Secretary makes a determination 
                described in clause (ii)(II) for a product described in 
                clause (i), not later than 30 months after the date of 
                publication of the amendment to the ASHRAE/IES Standard 
                90.1 for the product, the Secretary shall issue the 
                rule establishing the amended standard.
                    ``(C) Amendment of standard.--
                            ``(i) In general.--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--
                                    ``(I) a notice of the determination 
                                of the Secretary that standards for the 
                                product do not need to be amended, 
                                based on the criteria established under 
                                subparagraph (A); or
                                    ``(II) a notice of proposed 
                                rulemaking including new proposed 
                                standards based on the criteria and 
                                procedures established under 
                                subparagraph (B).
                            ``(ii) Notice.--If the Secretary publishes 
                        a notice under clause (i), the Secretary 
                        shall--
                                    ``(I) publish a notice stating that 
                                the analysis of the Department is 
                                publicly available; and
                                    ``(II) provide an opportunity for 
                                written comment.
                            ``(iii) Amendment of standard; new 
                        determination.--
                                    ``(I) Amendment of standard.--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.
                                    ``(II) New determination.--Not 
                                later than 3 years after a 
                                determination under clause (i)(I), the 
                                Secretary shall make a new 
                                determination and publication under 
                                subclause (I) or (II) of clause (i).
                            ``(iv) Application to products.--An 
                        amendment prescribed under this subsection 
                        shall apply to products manufactured after a 
                        date that is the later of--
                                    ``(I) the date that is 3 years 
                                after publication of the final rule 
                                establishing a new standard; or
                                    ``(II) the date that is 6 years 
                                after the effective date of the current 
                                standard for a covered product.
                            ``(v) Reports.--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 progress report every 180 days 
                        on compliance with this subparagraph, including 
                        a specific plan to remedy any failures to 
                        comply with deadlines for action established 
                        under this subparagraph.''.

SEC. 306. REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR CONDITIONERS, 
              AND HEAT PUMPS.

    (a) In General.--Section 325(o) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(o)) is amended by adding at the end 
the following:
            ``(6) Regional standards for furnaces, central air 
        conditioners, and heat pumps.--
                    ``(A) In general.--In any rulemaking to establish a 
                new or amended standard, the Secretary may consider the 
                establishment of separate standards by geographic 
                region for furnaces (except boilers), central air 
                conditioners, and heat pumps.
                    ``(B) National and regional standards.--
                            ``(i) National standard.--If the Secretary 
                        establishes a regional standard for a product, 
                        the Secretary shall establish a base national 
                        standard for the product.
                            ``(ii) Regional standards.--If the 
                        Secretary establishes a regional standard for a 
                        product, the Secretary may establish more 
                        restrictive standards for the product by 
                        geographic region as follows:
                                    ``(I) For furnaces, the Secretary 
                                may establish 1 additional standard 
                                that is applicable in a geographic 
                                region defined by the Secretary.
                                    ``(II) For any cooling product, the 
                                Secretary may establish 1 or 2 
                                additional standards that are 
                                applicable in 1 or 2 geographic regions 
                                as may be defined by the Secretary.
                    ``(C) Boundaries of geographic regions.--
                            ``(i) In general.--Subject to clause (ii), 
                        the boundaries of additional geographic regions 
                        established by the Secretary under this 
                        paragraph shall include only contiguous States.
                            ``(ii) Alaska and hawaii.--The States of 
                        Alaska and Hawaii may be included under this 
                        paragraph in a geographic region that the 
                        States are not contiguous to.
                            ``(iii) Individual states.--Individual 
                        States shall be placed only into a single 
                        region under this paragraph.
                    ``(D) Prerequisites.--In establishing additional 
                regional standards under this paragraph, the Secretary 
                shall--
                            ``(i) establish additional regional 
                        standards only if the Secretary determines 
                        that--
                                    ``(I) the establishment of 
                                additional regional standards will 
                                produce significant energy savings in 
                                comparison to establishing only a 
                                single national standard; and
                                    ``(II) the additional regional 
                                standards are economically justified 
                                under this paragraph; and
                            ``(ii) consider the impact of the 
                        additional regional standards on consumers, 
                        manufacturers, and other market participants, 
                        including product distributors, dealers, 
                        contractors, and installers.
                    ``(E) Application; effective date.--
                            ``(i) Base national standard.--Any base 
                        national standard established for a product 
                        under this paragraph shall--
                                    ``(I) be the minimum standard for 
                                the product; and
                                    ``(II) apply to all products 
                                manufactured or imported into the 
                                United States on and after the 
                                effective date for the standard.
                            ``(ii) Regional standards.--Any additional 
                        and more restrictive regional standard 
                        established for a product under this paragraph 
                        shall apply to any such product installed on or 
                        after the effective date of the standard in 
                        States in which the Secretary has designated 
                        the standard to apply.
                    ``(F) Continuation of regional standards.--
                            ``(i) In general.--In any subsequent 
                        rulemaking for any product for which a regional 
                        standard has been previously established, the 
                        Secretary shall determine whether to continue 
                        the establishment of separate regional 
                        standards for the product.
                            ``(ii) Regional standard no longer 
                        appropriate.--Except as provided in clause 
                        (iii), if the Secretary determines that 
                        regional standards are no longer appropriate 
                        for a product, beginning on the effective date 
                        of the amended standard for the product--
                                    ``(I) there shall be 1 base 
                                national standard for the product with 
                                Federal enforcement; and
                                    ``(II) State authority for 
                                enforcing a regional standard for the 
                                product shall terminate.
                            ``(iii) Regional standard appropriate but 
                        standard or region changed.--
                                    ``(I) State no longer contained in 
                                region.--Subject to subclause (III), if 
                                a State is no longer contained in a 
                                region in which a regional standard 
                                that is more stringent than the base 
                                national standard applies, the 
                                authority of the State to enforce the 
                                regional standard shall terminate.
                                    ``(II) Standard or region revised 
                                so that existing regional standard 
                                equals base national standard.--If the 
                                Secretary revises a base national 
                                standard for a product or the 
                                geographic definition of a region so 
                                that an existing regional standard for 
                                a State is equal to the revised base 
                                national standard--
                                            ``(aa) the authority of the 
                                        State to enforce the regional 
                                        standard shall terminate on the 
                                        effective date of the revised 
                                        base national standard; and
                                            ``(bb) the State shall be 
                                        subject to the revised base 
                                        national standard.
                                    ``(III) Standard or region revised 
                                so that existing regional standard 
                                equals base national standard.--If the 
                                Secretary revises a base national 
                                standard for a product or the 
                                geographic definition of a region so 
                                that the standard for a State is lower 
                                than the previously approved regional 
                                standard, the State may continue to 
                                enforce the previously approved 
                                standard level.
                            ``(iv) Waiver of federal preemption.--
                        Nothing in this paragraph diminishes the 
                        authority of a State to enforce a State 
                        regulation for which a waiver of Federal 
                        preemption has been granted under section 
                        327(d).
                    ``(G) Enforcement.--
                            ``(i) Base national standard.--
                                    ``(I) In general.--The Secretary 
                                shall enforce any base national 
                                standard.
                                    ``(II) Trade association 
                                certification programs.--In enforcing 
                                the base national standard, the 
                                Secretary shall use, to the maximum 
                                extent practicable, national standard 
                                nationally recognized certification 
                                programs of trade associations.
                            ``(ii) Regional standards.--
                                    ``(I) Enforcement plan.--Not later 
                                than 90 days after the date of the 
                                issuance of a final rule that 
                                establishes a regional standard, the 
                                Secretary shall initiate a rulemaking 
                                to develop and implement an effective 
                                enforcement plan for regional standards 
                                for the products that are covered by 
                                the final rule.
                                    ``(II) Responsible entities.--Any 
                                rules regarding enforcement of a 
                                regional standard shall clearly specify 
                                which entities are legally responsible 
                                for compliance with the standards and 
                                for making any required information or 
                                labeling disclosures.
                                    ``(III) Final rule.--Not later than 
                                15 months after the date of the 
                                issuance of a final rule that 
                                establishes a regional standard for a 
                                product, the Secretary shall promulgate 
                                a final rule covering enforcement of 
                                regional standards for the product.
                                    ``(IV) Incorporation by states and 
                                localities.--A State or locality may 
                                incorporate any Federal regional 
                                standard into State or local building 
                                codes or State appliance standards.
                                    ``(V) State enforcement.--A State 
                                agency may seek enforcement of a 
                                Federal regional standard in a Federal 
                                court of competent jurisdiction.
                    ``(H) Information disclosure.--
                            ``(i) In general.--Not later than 90 days 
                        after the date of the publication of a final 
                        rule that establishes a regional standard for a 
                        product, the Federal Trade Commission shall 
                        undertake a rulemaking to determine the 
                        appropriate 1 or more methods for disclosing 
                        information so that consumers, distributors, 
                        contractors, and installers can easily 
                        determine whether a specific piece of equipment 
                        that is installed in a specific building is in 
                        conformance with the regional standard that 
                        applies to the building.
                            ``(ii) Methods.--A method of disclosing 
                        information under clause (i) may include--
                                    ``(I) modifications to the Energy 
                                Guide label; or
                                    ``(II) other methods that make it 
                                easy for consumers and installers to 
                                use and understand at the point of 
                                installation.
                            ``(iii) Completion of rulemaking.--The 
                        rulemaking shall be completed not later 15 
                        months after the date of the publication of a 
                        final rule that establishes a regional standard 
                        for a product.''.
    (b) Prohibited Acts.--Section 332(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6302(a)) is amended--
            (1) in paragraph (4), by striking ``or'' after the 
        semicolon at the end;
            (2) in paragraph (5), by striking ``part.'' and inserting 
        ``part, except to the extent that the new covered product is 
        covered by a regional standard that is more stringent than the 
        base national standard; or''; and
            (3) by adding at the end the following:
            ``(6) for any manufacturer or private labeler to knowingly 
        sell a product to a distributor, contractor, or dealer with 
        knowledge that the entity routinely violates any regional 
        standard applicable to the product.''.
    (c) Consideration of Prices and Operating Patterns.--Section 
342(a)(6)(B) of the Energy Policy and Conservation Act (42 U.S.C. 
6313(a)(6)(B)) is amended by adding at the end the following:
                            ``(iii) Consideration of prices and 
                        operating patterns.--If the Secretary is 
                        considering revised standards for air-cooled 3-
                        phase central air conditioners and central air 
                        conditioning heat pumps with less 65,000 Btu 
                        per hour (cooling capacity), the Secretary 
                        shall use commercial energy prices and 
                        operating patterns in all analyses conducted by 
                        the Secretary.''.

SEC. 307. 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. 308. EXPEDITED RULEMAKINGS.

    (a) Procedure for Prescribing New or Amended Standards.--Section 
325(p) of the Energy Policy and Conservation Act (42 U.S.C. 6295(p)) 
(as amended by section 307) is amended by adding at the end the 
following:
            ``(4) Direct final rules.--
                    ``(A) In general.--On receipt of a statement that 
                is submitted jointly by interested persons that are 
                fairly representative of relevant points of view 
                (including representatives of manufacturers of covered 
                products, States, and efficiency advocates), as 
                determined by the Secretary, and contains 
                recommendations with respect to an energy or water 
                conservation standard--
                            ``(i) if the Secretary determines that the 
                        recommended standard contained in the statement 
                        is in accordance with subsection (o) or section 
                        342(a)(6)(B), as applicable, the Secretary may 
                        issue a final rule that establishes an energy 
                        or water conservation standard and is published 
                        simultaneously with a notice of proposed 
                        rulemaking that proposes a new or amended 
                        energy or water conservation standard that is 
                        identical to the standard established in the 
                        final rule to establish the recommended 
                        standard (referred to in this paragraph as a 
                        `direct final rule'); or
                            ``(ii) if the Secretary determines that a 
                        direct final rule cannot be issued based on the 
                        statement, the Secretary shall publish a notice 
                        of the determination, together with an 
                        explanation of the reasons for the 
                        determination.
                    ``(B) Public comment.--The Secretary shall solicit 
                public comment for a period of at least 110 days with 
                respect to each direct final rule issued by the 
                Secretary under subparagraph (A)(i).
                    ``(C) Withdrawal of direct final rules.--
                            ``(i) In general.--Not later than 120 days 
                        after the date on which a direct final rule 
                        issued under subparagraph (A)(i) is published 
                        in the Federal Register, the Secretary shall 
                        withdraw the direct final rule if--
                                    ``(I) the Secretary receives 1 or 
                                more adverse public comments relating 
                                to the direct final rule under 
                                subparagraph (B)(i) or any alternative 
                                joint recommendation; and
                                    ``(II) based on the rulemaking 
                                record relating to the direct final 
                                rule, the Secretary determines that 
                                such adverse public comments or 
                                alternative joint recommendation may 
                                provide a reasonable basis for 
                                withdrawing the direct final rule under 
                                subsection (o), section 342(a)(6)(B), 
                                or any other applicable law.
                            ``(ii) Action on withdrawal.--On withdrawal 
                        of a direct final rule under clause (i), the 
                        Secretary shall--
                                    ``(I) proceed with the notice of 
                                proposed rulemaking published 
                                simultaneously with the direct final 
                                rule as described in subparagraph 
                                (A)(i); and
                                    ``(II) publish in the Federal 
                                Register the reasons why the direct 
                                final rule was withdrawn.
                            ``(iii) Treatment of withdrawn direct final 
                        rules.--A direct final rule that is withdrawn 
                        under clause (i) shall not be considered to be 
                        a final rule for purposes of subsection (o).
                    ``(D) Effect of paragraph.--Nothing in this 
                paragraph authorizes the Secretary to issue a direct 
                final rule based solely on receipt of more than 1 
                statement containing recommended standards relating to 
                the 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 in the first 
sentence by inserting ``section 325(p)(5),'' after ``The provisions 
of''.

SEC. 309. BATTERY CHARGERS.

    Section 325(u)(1)(E) of the Energy Policy and Conservation Act (42 
U.S.C. 6295(u)(1)(E)) is amended--
            (1) by striking ``(E)(i) Not'' and inserting the following:
                    ``(E) External power supplies and battery 
                chargers.--
                            ``(i) Energy conservation standards.--
                                    ``(I) External power supplies.--
                                Not'';
            (2) by striking ``3 years'' and inserting ``2 years'';
            (3) by striking ``battery chargers and'' each place it 
        appears; and
            (4) by adding at the end the following:
                                    ``(II) Battery chargers.--Not later 
                                than July 1, 2011, the Secretary shall 
                                issue a final rule that prescribes 
                                energy conservation standards for 
                                battery chargers or classes of battery 
                                chargers or determine that no energy 
                                conservation standard is technically 
                                feasible and economically justified.''.

SEC. 310. STANDBY MODE.

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

SEC. 311. ENERGY STANDARDS FOR HOME APPLIANCES.

    (a) Appliances.--
            (1) Dehumidifiers.--Section 325(cc) of the Energy Policy 
        and Conservation Act (42 U.S.C. 6295(cc)) is amended by 
        striking paragraph (2) and inserting the following:
            ``(2) Dehumidifiers manufactured on or after october 1, 
        2012.--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 clothes washers and residential 
        dishwashers.--Section 325(g) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6295(g)) is amended by adding at 
        the end the following:
            ``(9) Residential clothes washers manufactured on or after 
        january 1, 2011.--
                    ``(A) In general.--A top-loading or front-loading 
                standard-size residential clothes washer manufactured 
                on or after January 1, 2011, shall have--
                            ``(i) a Modified Energy Factor of at least 
                        1.26; and
                            ``(ii) a water factor of not more than 9.5.
                    ``(B) Amendment of standards.--
                            ``(i) In general.--Not later than December 
                        31, 2011, the Secretary shall publish a final 
                        rule determining whether to amend the standards 
                        in effect for clothes washers manufactured on 
                        or after January 1, 2015.
                            ``(ii) Amended standards.--The final rule 
                        shall contain any amended standards.
            ``(10) Residential dishwashers manufactured on or after 
        january 1, 2010.--
                    ``(A) In general.--A dishwasher manufactured on or 
                after January 1, 2010, shall--
                            ``(i) for a standard size dishwasher not 
                        exceed 355 kwh/year and 6.5 gallon per cycle; 
                        and
                            ``(ii) for a compact size dishwasher not 
                        exceed 260 kwh/year and 4.5 gallons per cycle.
                    ``(B) Amendment of standards.--
                            ``(i) In general.--Not 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.
                            ``(ii) Amended standards.--The final rule 
                        shall contain any amended standards.''.
            (3) Refrigerators and freezers.--Section 325(b) of the 
        Energy Policy and Conservation Act (42 U.S.C. 6295(b)) is 
        amended by adding at the end the following:
            ``(4) Refrigerators and freezers manufactured on or after 
        january 1, 2014.--
                    ``(A) In general.--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.
                    ``(B) Amended standards.--The final rule shall 
                contain any amended standards.''.
    (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. 312. WALK-IN COOLERS AND WALK-IN FREEZERS.

    (a) Definitions.--Section 340 of the Energy Policy and Conservation 
Act (42 U.S.C. 6311) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (G) through (K) 
                as subparagraphs (H) through (L), respectively; and
                    (B) by inserting after subparagraph (F) the 
                following:
                    ``(G) Walk-in coolers and walk-in freezers.'';
            (2) by redesignating paragraphs (20) and (21) as paragraphs 
        (21) and (22), respectively; and
            (3) by inserting after paragraph (19) the following:
            ``(20) Walk-in cooler; walk-in freezer.--
                    ``(A) In general.--The terms `walk-in cooler' and 
                `walk-in freezer' mean an enclosed storage space 
                refrigerated to temperatures, respectively, above, and 
                at or below 32 degrees Fahrenheit that can be walked 
                into, and has a total chilled storage area of less than 
                3,000 square feet.
                    ``(B) Exclusion.--The terms `walk-in cooler' and 
                `walk-in freezer' do not include products designed and 
                marketed exclusively for medical, scientific, or 
                research purposes.''.
    (b) Standards.--Section 342 of the Energy Policy and Conservation 
Act (42 U.S.C. 6313) is amended by adding at the end the following:
    ``(f) Walk-in Coolers and Walk-in Freezers.--
            ``(1) In general.--Subject to paragraphs (2) through (5), 
        each walk-in cooler or walk-in freezer manufactured on or after 
        January 1, 2009, shall--
                    ``(A) have automatic door closers that firmly close 
                all walk-in doors that have been closed to within 1 
                inch of full closure, except that this subparagraph 
                shall not apply to doors wider than 3 feet 9 inches or 
                taller than 7 feet;
                    ``(B) have strip doors, spring hinged doors, or 
                other method of minimizing infiltration when doors are 
                open;
                    ``(C) contain wall, ceiling, and door insulation of 
                at least R-25 for coolers and R-32 for freezers, except 
                that this subparagraph shall not apply to glazed 
                portions of doors nor to structural members;
                    ``(D) contain floor insulation of at least R-28 for 
                freezers;
                    ``(E) for evaporator fan motors of under 1 
                horsepower and less than 460 volts, use--
                            ``(i) electronically commutated motors 
                        (brushless direct current motors); or
                            ``(ii) 3-phase motors;
                    ``(F) for condenser fan motors of under 1 
                horsepower, use--
                            ``(i) electronically commutated motors;
                            ``(ii) permanent split capacitor-type 
                        motors; or
                            ``(iii) 3-phase motors; and
                    ``(G) for all interior lights, use light sources 
                with an efficacy of 40 lumens per watt or more, 
                including ballast losses (if any), except that light 
                sources with an efficacy of 40 lumens per watt or less, 
                including ballast losses (if any), may be used in 
                conjunction with a timer or device that turns off the 
                lights within 15 minutes of when the walk-in cooler or 
                walk-in freezer is not occupied by people.
            ``(2) Electronically commutated motors.--
                    ``(A) In general.--The requirements of paragraph 
                (1)(E)(i) for electronically commutated motors shall 
                take effect January 1, 2009, unless, prior to that 
                date, the Secretary determines that such motors are 
                only available from 1 manufacturer.
                    ``(B) Other types of motors.--In carrying out 
                paragraph (1)(E)(i) and subparagraph (A), the Secretary 
                may allow other types of motors if the Secretary 
                determines that, on average, those other motors use no 
                more energy in evaporator fan applications than 
                electronically commutated motors.
                    ``(C) Maximum energy consumption level.--The 
                Secretary shall establish the maximum energy 
                consumption level under subparagraph (B) not later than 
                January 1, 2010.
            ``(3) Additional specifications.--Each walk-in cooler or 
        walk-in freezer with transparent reach-in doors manufactured on 
        or after January 1, 2009, shall also meet the following 
        specifications:
                    ``(A) Transparent reach-in doors for walk-in 
                freezers and windows in walk-in freezer doors shall be 
                of triple-pane glass with either heat-reflective 
                treated glass or gas fill.
                    ``(B) Transparent reach-in doors for walk-in 
                coolers and windows in walk-in cooler doors shall be--
                            ``(i) double-pane glass with heat-
                        reflective treated glass and gas fill; or
                            ``(ii) triple-pane glass with either heat-
                        reflective treated glass or gas fill.
                    ``(C) If the appliance has an antisweat heater 
                without antisweat heat controls, the appliance shall 
                have a total door rail, glass, and frame heater power 
                draw of not more than 7.1 watts per square foot of door 
                opening (for freezers) and 3.0 watts per square foot of 
                door opening (for coolers).
                    ``(D) If the appliance has an antisweat heater with 
                antisweat heat controls, and the total door rail, 
                glass, and frame heater power draw is more than 7.1 
                watts per square foot of door opening (for freezers) 
                and 3.0 watts per square foot of door opening (for 
                coolers), the antisweat heat controls shall reduce the 
                energy use of the antisweat heater in a quantity 
                corresponding to the relative humidity in the air 
                outside the door or to the condensation on the inner 
                glass pane.
            ``(4) Performance-based standards.--
                    ``(A) In general.--Not later than January 1, 2012, 
                the Secretary shall publish performance-based standards 
                for walk-in coolers and walk-in freezers that achieve 
                the maximum improvement in energy that the Secretary 
                determines is technologically feasible and economically 
                justified.
                    ``(B) Application.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the standards shall apply to 
                        products described in subparagraph (A) that are 
                        manufactured beginning on the date that is 3 
                        years after the final rule is published.
                            ``(ii) Delayed effective date.--If the 
                        Secretary determines, by rule, that a 3-year 
                        period is inadequate, the Secretary may 
                        establish an effective date for products 
                        manufactured beginning on the date that is not 
                        more than 5 years after the date of publication 
                        of a final rule for the products.
            ``(5) Amendment of standards.--
                    ``(A) In general.--Not later than January 1, 2020, 
                the Secretary shall publish a final rule to determine 
                if the standards established under paragraph (4) should 
                be amended.
                    ``(B) Application.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the rule shall provide that the 
                        standards shall apply to products manufactured 
                        beginning on the date that is 3 years after the 
                        final rule is published.
                            ``(ii) Delayed effective date.--If the 
                        Secretary determines, by rule, that a 3-year 
                        period is inadequate, the Secretary may 
                        establish an effective date for products 
                        manufactured beginning on the date that is not 
                        more than 5 years after the date of publication 
                        of a final rule for the products.''.
    (c) Test Procedures.--Section 343(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6314(a)) is amended by adding at the end 
the following:
            ``(9) Walk-in coolers and walk-in freezers.--
                    ``(A) In general.--For the purpose of test 
                procedures for walk-in coolers and walk-in freezers:
                            ``(i) The R value shall be the 1/K factor 
                        multiplied by the thickness of the panel.
                            ``(ii) The K factor shall be based on ASTM 
                        test procedure C518-2004.
                            ``(iii) For calculating the R value for 
                        freezers, the K factor of the foam at 20F 
                        (average foam temperature) shall be used.
                            ``(iv) For calculating the R value for 
                        coolers, the K factor of the foam at 55F 
                        (average foam temperature) shall be used.
                    ``(B) Test procedure.--
                            ``(i) In general.--Not later than January 
                        1, 2010, the Secretary shall establish a test 
                        procedure to measure the energy-use of walk-in 
                        coolers and walk-in freezers.
                            ``(ii) Computer modeling.--The test 
                        procedure may be based on computer modeling, if 
                        the computer model or models have been verified 
                        using the results of laboratory tests on a 
                        significant sample of walk-in coolers and walk-
                        in freezers.''.
    (d) Labeling.--Section 344(e) of the Energy Policy and Conservation 
Act (42 U.S.C. 6315(e)) is amended by inserting ``walk-in coolers and 
walk-in freezers,'' after ``commercial clothes washers,'' each place it 
appears.
    (e) Administration, Penalties, Enforcement, and Preemption.--
Section 345 of the Energy Policy and Conservation Act (42 U.S.C. 6316) 
is amended--
            (1) by striking ``subparagraphs (B), (C), (D), (E), and 
        (F)'' each place it appears and inserting ``subparagraphs (B) 
        through (G)''; and
            (2) by adding at the end the following:
    ``(h) Walk-in Coolers and Walk-in Freezers.--
            ``(1) Covered types.--
                    ``(A) Relationship to other law.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subsection, section 327 shall 
                        apply to walk-in coolers and walk-in freezers 
                        for which standards have been established under 
                        paragraphs (1), (2), and (3) of section 342(f) 
                        to the same extent and in the same manner as 
                        the section applies under part A on the date of 
                        enactment of this subsection.
                            ``(ii) State standards.--Any State standard 
                        prescribed before the date of enactment of this 
                        subsection shall not be preempted until the 
                        standards established under paragraphs (1) and 
                        (2) of section 342(f) take effect.
                    ``(B) Administration.--In applying section 327 to 
                equipment under subparagraph (A), paragraphs (1), (2), 
                and (3) of subsection (a) shall apply.
            ``(2) Final rule not timely.--
                    ``(A) In general.--If the Secretary does not issue 
                a final rule for a specific type of walk-in cooler or 
                walk-in freezer within the time frame established under 
                paragraph (4) or (5) of section 342(f), subsections (b) 
                and (c) of section 327 shall no longer apply to the 
                specific type of walk-in cooler or walk-in freezer 
                during the period--
                            ``(i) beginning on the day after the 
                        scheduled date for a final rule; and
                            ``(ii) ending on the date on which the 
                        Secretary publishes a final rule covering the 
                        specific type of walk-in cooler or walk-in 
                        freezer.
                    ``(B) State standards.--Any State standard issued 
                before the publication of the final rule shall not be 
                preempted until the standards established in the final 
                rule take effect.
            ``(3) California.--Any standard issued in the State of 
        California before January 1, 2011, under title 20 of the 
        California Code of Regulations, that refers to walk-in coolers 
        and walk-in freezers, for which standards have been established 
        under paragraphs (1), (2), and (3) of section 342(f), shall not 
        be preempted until the standards established under section 
        342(f)(3) take effect.''.

SEC. 313. 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 ``(13)(A)'' and all that follows through 
        the end of subparagraph (A) and inserting the following:
            ``(13) Electric motor.--
                    ``(A) General purpose electric motor (subtype i).--
                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 entitled `Energy Efficiency 
                Program for Certain Commercial and Industrial 
                Equipment: Test Procedures, Labeling, and Certification 
                Requirements for Electric Motors' (10 C.F.R. 431), as 
                in effect on the date of enactment of the Energy 
                Independence and Security Act of 2007.
                    ``(B) General purpose electric motor (subtype 
                ii).--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 1 of the following:
                            ``(i) A U-Frame Motor.
                            ``(ii) A Design C Motor.
                            ``(iii) A close-coupled pump motor.
                            ``(iv) A Footless motor.
                            ``(v) A vertical solid shaft normal thrust 
                        motor (as tested in a horizontal 
                        configuration).
                            ``(vi) An 8-pole motor (900 rpm).
                            ``(vii) A poly-phase motor with voltage of 
                        not more than 600 volts (other than 230 or 460 
                        volts.''.
    (b) Standards.--
            (1) Amendment.--Section 342(b) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6313(b)) is amended--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) Electric motors.--
                    ``(A) General purpose electric motors (subtype 
                i).--Except as provided in subparagraph (B), each 
                general purpose electric motor (subtype I) 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 3-year period 
                beginning on the date of enactment of the Energy 
                Independence and Security Act of 2007, shall have a 
                nominal full load efficiency that is not less than as 
                defined in NEMA MG-1 (2006) Table 12-12.
                    ``(B) Fire pump motors.--Each fire pump motor 
                manufactured (alone or as a component of another piece 
                of equipment) after the 3-year period beginning on the 
                date of enactment of the Energy Independence and 
                Security Act of 2007 shall have nominal full load 
                efficiency that is not less than as defined in NEMA MG-
                1 (2006) Table 12-11.
                    ``(C) General purpose electric motors (subtype 
                ii).--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 3-
                year period beginning on the date of enactment of the 
                Energy Independence and Security Act of 2007, shall 
                have a nominal full load efficiency that is not less 
                than as defined in NEMA MG-1 (2006) Table 12-11.
                    ``(D) NEMA design b, general purpose electric 
                motors.--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 3-year period beginning on the date of 
                enactment of the Energy Independence and Security Act 
                of 2007, shall have a nominal full load efficiency that 
                is not less than as defined in NEMA MG-1 (2006) Table 
                12-11.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        take effect on the date that is 3 years after the date of 
        enactment of this Act.

SEC. 314. STANDARDS FOR SINGLE PACKAGE VERTICAL AIR CONDITIONERS AND 
              HEAT PUMPS.

    (a) Definitions.--Section 340 of the Energy Policy and Conservation 
Act (42 U.S.C. 6311) is amended by adding at the end the following:
            ``(22) Single package vertical air conditioner.--The term 
        `single package vertical air conditioner' means air-cooled 
        commercial package air conditioning and heating equipment 
        that--
                    ``(A) is factory-assembled as a single package 
                that--
                            ``(i) has major components that are 
                        arranged vertically;
                            ``(ii) is an encased combination of cooling 
                        and optional heating components; and
                            ``(iii) is intended for exterior mounting 
                        on, adjacent interior to, or through an outside 
                        wall;
                    ``(B) is powered by a single- or 3-phase current;
                    ``(C) may contain 1 or more separate indoor 
                grilles, outdoor louvers, various ventilation options, 
                indoor free air discharges, ductwork, well plenum, or 
                sleeves; and
                    ``(D) has heating components that may include 
                electrical resistance, steam, hot water, or gas, but 
                may not include reverse cycle refrigeration as a 
                heating means.
            ``(23) Single package vertical heat pump.--The term `single 
        package vertical heat pump' means a single package vertical air 
        conditioner that--
                    ``(A) uses reverse cycle refrigeration as its 
                primary heat source; and
                    ``(B) 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 the first sentence of each of paragraphs (1) and 
        (2), by inserting ``(including single package vertical air 
        conditioners and single package vertical heat pumps)'' after 
        ``heating equipment'' each place it appears;
            (2) in paragraph (1), by striking ``but before January 1, 
        2010,'';
            (3) in the first sentence of each of paragraphs (7), (8), 
        and (9), by inserting ``(other than single package vertical air 
        conditioners and single package vertical heat pumps)'' after 
        ``heating equipment'' each place it appears;
            (4) in paragraph (7)--
                    (A) by striking ``manufactured on or after January 
                1, 2010,'';
                    (B) in each of subparagraphs (A), (B), and (C), by 
                striking ``The'' and inserting ``For equipment 
                manufactured on or after January 1, 2010, the''; and
                    (C) by adding at the end the following:
            ``(D) For equipment manufactured on or after the later of 
        January 1, 2008, or the date that is 180 days after the date of 
        enactment of the Energy Independence and Security Act of 2007--
                    ``(i) the minimum seasonal energy efficiency ratio 
                of air-cooled 3-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;
                    ``(ii) the minimum seasonal energy efficiency ratio 
                of air-cooled 3-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;
                    ``(iii) the minimum heating seasonal performance 
                factor of air-cooled 3-phase electric central air 
                conditioning heat pumps less than 65,000 Btu per hour 
                (cooling capacity), split systems, shall be 7.7; and
                    ``(iv) the minimum heating seasonal performance 
                factor of air-cooled three-phase electric central air 
                conditioning heat pumps less than 65,000 Btu per hour 
                (cooling capacity), single package, shall be 7.7.''; 
                and
            (5) by adding at the end the following:
            ``(10) Single package vertical air conditioners and single 
        package vertical heat pumps.--
                    ``(A) In general.--Single package vertical air 
                conditioners and single package vertical heat pumps 
                manufactured on or after January 1, 2010, shall meet 
                the following standards:
                            ``(i) 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.
                            ``(ii) 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.
                            ``(iii) 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.
                            ``(iv) 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.
                            ``(v) 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.
                            ``(vi) 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.
                            ``(vii) 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.
                            ``(viii) 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.
                    ``(B) Review.--Not later than 3 years 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 
                in accordance with the procedures established under 
                paragraph (6).''.

SEC. 315. IMPROVED ENERGY EFFICIENCY FOR APPLIANCES AND BUILDINGS IN 
              COLD CLIMATES.

    (a) Research.--Section 911(a)(2) of the Energy Policy Act of 2005 
(42 U.S.C. 16191(a)(2)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) technologies to improve the energy efficiency 
                of appliances and mechanical systems for buildings in 
                cold climates, including combined heat and power units 
                and increased use of renewable resources, including 
                fuel.''.
    (b) Rebates.--Section 124 of the Energy Policy Act of 2005 (42 
U.S.C. 15821) is amended--
            (1) in subsection (b)(1), by inserting ``, or products with 
        improved energy efficiency in cold climates,'' after 
        ``residential Energy Star products''; and
            (2) in subsection (e), by inserting ``or product with 
        improved energy efficiency in a cold climate'' after 
        ``residential Energy Star product'' each place it appears.

SEC. 316. TECHNICAL CORRECTIONS.

    (a) Definition of F96T12 Lamp.--
            (1) In general.--Section 135(a)(1)(A)(ii) of the Energy 
        Policy Act of 2005 (Public Law 109-58; 119 Stat. 624) is 
        amended by striking ``C78.1-1978(R1984)'' and inserting 
        ``C78.3-1978(R1984)''.
            (2) Effective date.--The amendment made by paragraph (1) 
        takes effect on August 8, 2005.
    (b) Definition of Fluorescent Lamp.--Section 321(30)(B)(viii) of 
the Energy Policy and Conservation Act (42 U.S.C. 6291(30)(B)(viii)) is 
amended by striking ``82'' and inserting ``87''.
    (c) Mercury Vapor Lamp Ballasts.--
            (1) Definitions.--Section 321 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6291) (as amended by section 
        301(a)(2)) is amended--
                    (A) by striking paragraphs (46) through (48) and 
                inserting the following:
            ``(46) High intensity discharge lamp.--
                    ``(A) In general.--The term `high intensity 
                discharge lamp' means an electric-discharge lamp in 
                which--
                            ``(i) the light-producing arc is stabilized 
                        by the arc tube wall temperature; and
                            ``(ii) the arc tube wall loading is in 
                        excess of 3 Watts/cm\2\.
                    ``(B) Inclusions.--The term `high intensity 
                discharge lamp' includes mercury vapor, metal halide, 
                and high-pressure sodium lamps described in 
                subparagraph (A).
            ``(47) Mercury vapor lamp.--
                    ``(A) In general.--The term `mercury vapor lamp' 
                means a high intensity discharge lamp in which the 
                major portion of the light is produced by radiation 
                from mercury typically operating at a partial vapor 
                pressure in excess of 100,000 Pa (approximately 1 atm).
                    ``(B) Inclusions.--The term `mercury vapor lamp' 
                includes clear, phosphor-coated, and self-ballasted 
                screw base lamps described in subparagraph (A).
            ``(48) Mercury vapor lamp ballast.--The term `mercury vapor 
        lamp ballast' means a device that is designed and marketed to 
        start and operate mercury vapor lamps intended for general 
        illumination by providing the necessary voltage and current.''; 
        and
                    (B) by adding at the end the following:
            ``(53) Specialty application mercury vapor lamp ballast.--
        The term `specialty application mercury vapor lamp ballast' 
        means a mercury vapor lamp ballast that--
                    ``(A) is designed and marketed for operation of 
                mercury vapor lamps used in quality inspection, 
                industrial processing, or scientific use, including 
                fluorescent microscopy and ultraviolet curing; and
                    ``(B) in the case of a specialty application 
                mercury vapor lamp ballast, the label of which--
                            ``(i) provides that the specialty 
                        application mercury vapor lamp ballast is `For 
                        specialty applications only, not for general 
                        illumination'; and
                            ``(ii) specifies the specific applications 
                        for which the ballast is designed.''.
            (2) Standard setting authority.--Section 325(ee) of the 
        Energy Policy and Conservation Act (42 U.S.C. 6295(ee)) is 
        amended by inserting ``(other than specialty application 
        mercury vapor lamp ballasts)'' after ``ballasts''.
    (d) Energy Conservation Standards.--Section 325 of the Energy 
Policy and Conservation Act (42 U.S.C. 6295) 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)''; and
                            (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''.

                 Subtitle B--Lighting Energy Efficiency

SEC. 321. EFFICIENT LIGHT BULBS.

    (a) Energy Efficiency Standards for General Service Incandescent 
Lamps.--
            (1) Definition of general service incandescent lamp.--
        Section 321(30) of the Energy Policy and Conservation Act (42 
        U.S.C. 6291(30)) is amended--
                    (A) by striking subparagraph (D) and inserting the 
                following:
                    ``(D) General service incandescent lamp.--
                            ``(i) In general.--The term `general 
                        service incandescent lamp' means a standard 
                        incandescent or halogen type lamp that--
                                    ``(I) is intended for general 
                                service applications;
                                    ``(II) has a medium screw base;
                                    ``(III) has a lumen range of not 
                                less than 310 lumens and not more than 
                                2,600 lumens; and
                                    ``(IV) is capable of being operated 
                                at a voltage range at least partially 
                                within 110 and 130 volts.
                            ``(ii) Exclusions.--The term `general 
                        service incandescent lamp' does not include the 
                        following incandescent lamps:
                                    ``(I) An appliance lamp.
                                    ``(II) A black light lamp.
                                    ``(III) A bug lamp.
                                    ``(IV) A colored lamp.
                                    ``(V) An infrared lamp.
                                    ``(VI) A left-hand thread lamp.
                                    ``(VII) A marine lamp.
                                    ``(VIII) A marine signal service 
                                lamp.
                                    ``(IX) A mine service lamp.
                                    ``(X) A plant light lamp.
                                    ``(XI) A reflector lamp.
                                    ``(XII) A rough service lamp.
                                    ``(XIII) A shatter-resistant lamp 
                                (including a shatter-proof lamp and a 
                                shatter-protected lamp).
                                    ``(XIV) A sign service lamp.
                                    ``(XV) A silver bowl lamp.
                                    ``(XVI) A showcase lamp.
                                    ``(XVII) A 3-way incandescent lamp.
                                    ``(XVIII) A traffic signal lamp.
                                    ``(XIX) A vibration service lamp.
                                    ``(XX) A G shape lamp (as defined 
                                in ANSI C78.20-2003 and C79.1-2002 with 
                                a diameter of 5 inches or more.
                                    ``(XXI) A T shape lamp (as defined 
                                in ANSI C78.20-2003 and C79.1-2002) and 
                                that uses not more than 40 watts or has 
                                a length of more than 10 inches.
                                    ``(XXII) A B, BA, CA, F, G16-1/2, 
                                G-25, G30, S, or M-14 lamp (as defined 
                                in ANSI C79.1-2002 and ANSI C78.20-
                                2003) of 40 watts or less.''; and
                    (B) by adding at the end the following:
                    ``(T) Appliance lamp.--The term `appliance lamp' 
                means any lamp that--
                            ``(i) is specifically designed to operate 
                        in a household appliance, has a maximum wattage 
                        of 40 watts, and is sold at retail, including 
                        an oven lamp, refrigerator lamp, and vacuum 
                        cleaner lamp; and
                            ``(ii) is designated and marketed for the 
                        intended application, with--
                                    ``(I) the designation on the lamp 
                                packaging; and
                                    ``(II) marketing materials that 
                                identify the lamp as being for 
                                appliance use.
                    ``(U) Candelabra base incandescent lamp.--The term 
                `candelabra base incandescent lamp' means a lamp that 
                uses candelabra screw base as described in ANSI C81.61-
                2006, Specifications for Electric Bases, common 
                designations E11 and E12.
                    ``(V) Intermediate base incandescent lamp.--The 
                term `intermediate base incandescent lamp' means a lamp 
                that uses an intermediate screw base as described in 
                ANSI C81.61-2006, Specifications for Electric Bases, 
                common designation E17.
                    ``(W) Modified spectrum.--The term `modified 
                spectrum' means, with respect to an incandescent lamp, 
                an incandescent lamp that--
                            ``(i) is not a colored incandescent lamp; 
                        and
                            ``(ii) when operated at the rated voltage 
                        and wattage of the incandescent lamp--
                                    ``(I) has a color point with (x,y) 
                                chromaticity coordinates on the 
                                Commission Internationale de 
                                l'Eclairage (C.I.E.) 1931 chromaticity 
                                diagram that lies below the black-body 
                                locus; and
                                    ``(II) has a color point with (x,y) 
                                chromaticity coordinates on the C.I.E. 
                                1931 chromaticity diagram that lies at 
                                least 4 MacAdam steps (as referenced in 
                                IESNA LM16) distant from the color 
                                point of a clear lamp with the same 
                                filament and bulb shape, operated at 
                                the same rated voltage and wattage.
                    ``(X) Rough service lamp.--The term `rough service 
                lamp' means a lamp that--
                            ``(i) has a minimum of 5 supports with 
                        filament configurations that are C-7A, C-11, C-
                        17, and C-22 as listed in Figure 6-12 of the 
                        9th edition of the IESNA Lighting handbook, or 
                        similar configurations where lead wires are not 
                        counted as supports; and
                            ``(ii) is designated and marketed 
                        specifically for `rough service' applications, 
                        with--
                                    ``(I) the designation appearing on 
                                the lamp packaging; and
                                    ``(II) marketing materials that 
                                identify the lamp as being for rough 
                                service.
                    ``(Y) 3-way incandescent lamp.--The term `3-way 
                incandescent lamp' includes an incandescent lamp that--
                            ``(i) employs 2 filaments, operated 
                        separately and in combination, to provide 3 
                        light levels; and
                            ``(ii) is designated on the lamp packaging 
                        and marketing materials as being a 3-way 
                        incandescent lamp.
                    ``(Z) Shatter-resistant lamp, shatter-proof lamp, 
                or shatter-protected lamp.--The terms `shatter-
                resistant lamp', `shatter-proof lamp', and `shatter-
                protected lamp' mean a lamp that--
                            ``(i) has a coating or equivalent 
                        technology that is compliant with NSF/ANSI 51 
                        and is designed to contain the glass if the 
                        glass envelope of the lamp is broken; and
                            ``(ii) is designated and marketed for the 
                        intended application, with--
                                    ``(I) the designation on the lamp 
                                packaging; and
                                    ``(II) marketing materials that 
                                identify the lamp as being shatter-
                                resistant, shatter-proof, or shatter-
                                protected.
                    ``(AA) Vibration service lamp.--The term `vibration 
                service lamp' means a lamp that--
                            ``(i) has filament configurations that are 
                        C-5, C-7A, or C-9, as listed in Figure 6-12 of 
                        the 9th Edition of the IESNA Lighting Handbook 
                        or similar configurations;
                            ``(ii) has a maximum wattage of 60 watts;
                            ``(iii) is sold at retail in packages of 2 
                        lamps or less; and
                            ``(iv) is designated and marketed 
                        specifically for vibration service or 
                        vibration-resistant applications, with--
                                    ``(I) the designation appearing on 
                                the lamp packaging; and
                                    ``(II) marketing materials that 
                                identify the lamp as being vibration 
                                service only.
                    ``(BB) General service lamp.--
                            ``(i) In general.--The term `general 
                        service lamp' includes--
                                    ``(I) general service incandescent 
                                lamps;
                                    ``(II) compact fluorescent lamps;
                                    ``(III) general service light-
                                emitting diode (LED or OLED) lamps; and
                                    ``(IV) any other lamps that the 
                                Secretary determines are used to 
                                satisfy lighting applications 
                                traditionally served by general service 
                                incandescent lamps.
                            ``(ii) Exclusions.--The term `general 
                        service lamp' does not include--
                                    ``(I) any lighting application or 
                                bulb shape described in any of 
                                subclauses (I) through (XXII) of 
                                subparagraph (D)(ii); or
                                    ``(II) any general service 
                                fluorescent lamp or incandescent 
                                reflector lamp.
                    ``(CC) Light-emitting diode; led.--
                            ``(i) In general.--The terms `light-
                        emitting diode' and `LED' means a p-n junction 
                        solid state device the radiated output of which 
                        is a function of the physical construction, 
                        material used, and exciting current of the 
                        device.
                            ``(ii) Output.--The output of a light-
                        emitting diode may be in--
                                    ``(I) the infrared region;
                                    ``(II) the visible region; or
                                    ``(III) the ultraviolet region.
                    ``(DD) Organic light-emitting diode; oled.--The 
                terms `organic light-emitting diode' and `OLED' mean a 
                thin-film light-emitting device that typically consists 
                of a series of organic layers between 2 electrical 
                contacts (electrodes).
                    ``(EE) Colored incandescent lamp.--The term 
                `colored incandescent lamp' means an incandescent lamp 
                designated and marketed as a colored lamp that has--
                            ``(i) a color rendering index of less than 
                        50, as determined according to the test method 
                        given in C.I.E. publication 13.3-1995; or
                            ``(ii) a correlated color temperature of 
                        less than 2,500K, or greater than 4,600K, where 
                        correlated temperature is computed according to 
                        the Journal of Optical Society of America, Vol. 
                        58, pages 1528-1595 (1986).''.
            (2) Coverage.--Section 322(a)(14) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6292(a)(14)) is amended by 
        inserting ``, general service incandescent lamps,'' after 
        ``fluorescent lamps''.
            (3) Energy conservation standards.--Section 325 of the 
        Energy Policy and Conservation Act (42 U.S.C. 6295) is 
        amended--
                    (A) in subsection (i)--
                            (i) in the section heading, by inserting 
                        ``, General Service Incandescent Lamps, 
                        Intermediate Base Incandescent Lamps, 
                        Candelabra Base Incandescent Lamps,'' after 
                        ``Fluorescent Lamps'';
                            (ii) in paragraph (1)--
                                    (I) in subparagraph (A)--
                                            (aa) by inserting ``, 
                                        general service incandescent 
                                        lamps, intermediate base 
                                        incandescent lamps, candelabra 
                                        base incandescent lamps,'' 
                                        after ``fluorescent lamps'';
                                            (bb) by inserting ``, new 
                                        maximum wattage,'' after ``lamp 
                                        efficacy''; and
                                            (cc) by inserting after the 
                                        table entitled ``incandescent 
                                        reflector lamps'' the 
                                        following:


                                      ``GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                     Maximum Rate     Minimum Rate    Effective
                       Rated Lumen Ranges                               Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1490-2600                                                                        72     1,000 hrs      1/1/2012
1050-1489                                                                        53     1,000 hrs      1/1/2013
750-1049                                                                         43     1,000 hrs      1/1/2014
310-749                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------



                             ``MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                     Maximum Rate     Minimum Rate    Effective
                       Rated Lumen Ranges                               Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1118-1950                                                                        72     1,000 hrs      1/1/2012
788-1117                                                                         53     1,000 hrs      1/1/2013
563-787                                                                          43     1,000 hrs      1/1/2014
232-562                                                                          29     1,000 hrs   1/1/2014'';
----------------------------------------------------------------------------------------------------------------

                                and
                                    (II) by striking subparagraph (B) 
                                and inserting the following:
                    ``(B) Application.--
                            ``(i) Application criteria.--This 
                        subparagraph applies to each lamp that--
                                    ``(I) is intended for a general 
                                service or general illumination 
                                application (whether incandescent or 
                                not);
                                    ``(II) has a medium screw base or 
                                any other screw base not defined in 
                                ANSI C81.61-2006;
                                    ``(III) is capable of being 
                                operated at a voltage at least 
                                partially within the range of 110 to 
                                130 volts; and
                                    ``(IV) is manufactured or imported 
                                after December 31, 2011.
                            ``(ii) Requirement.--For purposes of this 
                        paragraph, each lamp described in clause (i) 
                        shall have a color rendering index that is 
                        greater than or equal to--
                                    ``(I) 80 for nonmodified spectrum 
                                lamps; or
                                    ``(II) 75 for modified spectrum 
                                lamps.
                    ``(C) Candelabra incandescent lamps and 
                intermediate base incandescent lamps.--
                            ``(i) Candelabra base incandescent lamps.--
                        A candelabra base incandescent lamp shall not 
                        exceed 60 rated watts.
                            ``(ii) Intermediate base incandescent 
                        lamps.--An intermediate base incandescent lamp 
                        shall not exceed 40 rated watts.
                    ``(D) Exemptions.--
                            ``(i) Petition.--Any person may petition 
                        the Secretary for an exemption for a type of 
                        general service lamp from the requirements of 
                        this subsection.
                            ``(ii) Criteria.--The Secretary may grant 
                        an exemption under clause (i) only to the 
                        extent that 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, or certified 
                        historic lighting application) using a lamp 
                        that meets the requirements of this subsection.
                            ``(iii) Additional criterion.--To grant an 
                        exemption for a product under this 
                        subparagraph, the Secretary shall include, as 
                        an additional criterion, that the exempted 
                        product is unlikely to be used in a general 
                        service lighting application.
                    ``(E) Extension of coverage.--
                            ``(i) Petition.--Any person may petition 
                        the Secretary to establish standards for lamp 
                        shapes or bases that are excluded from the 
                        definition of general service lamps.
                            ``(ii) Increased sales of exempted lamps.--
                        The petition shall include evidence that the 
                        availability or sales of exempted incandescent 
                        lamps have increased significantly since the 
                        date on which the standards on general service 
                        incandescent lamps were established.
                            ``(iii) Criteria.--The Secretary shall 
                        grant a petition under clause (i) if the 
                        Secretary finds that--
                                    ``(I) the petition presents 
                                evidence that demonstrates that 
                                commercial availability or sales of 
                                exempted incandescent lamp types have 
                                increased significantly since the 
                                standards on general service lamps were 
                                established and likely are being widely 
                                used in general lighting applications; 
                                and
                                    ``(II) significant energy savings 
                                could be achieved by covering exempted 
                                products, as determined by the 
                                Secretary based on sales data provided 
                                to the Secretary from manufacturers and 
                                importers.
                            ``(iv) No presumption.--The grant of a 
                        petition under this subparagraph shall create 
                        no presumption with respect to the 
                        determination of the Secretary with respect to 
                        any criteria under a rulemaking conducted under 
                        this section.
                            ``(v) Expedited proceeding.--If the 
                        Secretary grants a petition for a lamp shape or 
                        base under this subparagraph, the Secretary 
                        shall--
                                    ``(I) conduct a rulemaking to 
                                determine standards for the exempted 
                                lamp shape or base; and
                                    ``(II) complete the rulemaking not 
                                later than 18 months after the date on 
                                which notice is provided granting the 
                                petition.
                    ``(F) Definition of effective date.--In this 
                paragraph, except as otherwise provided in a table 
                contained in subparagraph (A), the term `effective 
                date' means the last day of the month specified in the 
                table that follows October 24, 1992.'';
                            (iii) in paragraph (5), in the first 
                        sentence, by striking ``and general service 
                        incandescent lamps'';
                            (iv) by redesignating paragraphs (6) and 
                        (7) as paragraphs (7) and (8), respectively; 
                        and
                            (v) by inserting after paragraph (5) the 
                        following:
            ``(6) Standards for general service lamps.--
                    ``(A) Rulemaking before january 1, 2014.--
                            ``(i) In general.--Not later than January 
                        1, 2014, the Secretary shall initiate a 
                        rulemaking procedure to determine whether--
                                    ``(I) standards in effect for 
                                general service lamps should be amended 
                                to establish more stringent standards 
                                than the standards specified in 
                                paragraph (1)(A); and
                                    ``(II) the exemptions for certain 
                                incandescent lamps should be maintained 
                                or discontinued based, in part, on 
                                exempted lamp sales collected by the 
                                Secretary from manufacturers.
                            ``(ii) Scope.--The rulemaking--
                                    ``(I) shall not be limited to 
                                incandescent lamp technologies; and
                                    ``(II) shall include consideration 
                                of a minimum standard of 45 lumens per 
                                watt for general service lamps.
                            ``(iii) Amended standards.--If the 
                        Secretary determines that the standards in 
                        effect for general service incandescent lamps 
                        should be amended, the Secretary shall publish 
                        a final rule not later than January 1, 2017, 
                        with an effective date that is not earlier than 
                        3 years after the date on which the final rule 
                        is published.
                            ``(iv) Phased-in effective dates.--The 
                        Secretary shall consider phased-in effective 
                        dates under this subparagraph after 
                        considering--
                                    ``(I) the impact of any amendment 
                                on manufacturers, retiring and 
                                repurposing existing equipment, 
                                stranded investments, labor contracts, 
                                workers, and raw materials; and
                                    ``(II) the time needed to work with 
                                retailers and lighting designers to 
                                revise sales and marketing strategies.
                            ``(v) Backstop requirement.--If the 
                        Secretary fails to complete a rulemaking in 
                        accordance with clauses (i) through (iv) or if 
                        the final rule does not produce savings that 
                        are greater than or equal to the savings from a 
                        minimum efficacy standard of 45 lumens per 
                        watt, effective beginning January 1, 2020, the 
                        Secretary shall prohibit the sale of any 
                        general service lamp that does not meet a 
                        minimum efficacy standard of 45 lumens per 
                        watt.
                            ``(vi) State preemption.--Neither section 
                        327(b) nor any other provision of law shall 
                        preclude California or Nevada from adopting, 
                        effective beginning on or after January 1, 
                        2018--
                                    ``(I) a final rule adopted by the 
                                Secretary in accordance with clauses 
                                (i) through (iv);
                                    ``(II) if a final rule described in 
                                subclause (I) has not been adopted, the 
                                backstop requirement under clause (v); 
                                or
                                    ``(III) in the case of California, 
                                if a final rule described in subclause 
                                (I) has not been adopted, any 
                                California regulations relating to 
                                these covered products adopted pursuant 
                                to State statute in effect as of the 
                                date of enactment of the Energy 
                                Independence and Security Act of 2007.
                    ``(B) Rulemaking before january 1, 2020.--
                            ``(i) In general.--Not later than January 
                        1, 2020, the Secretary shall initiate a 
                        rulemaking procedure to determine whether--
                                    ``(I) standards in effect for 
                                general service incandescent lamps 
                                should be amended to reflect lumen 
                                ranges with more stringent maximum 
                                wattage than the standards specified in 
                                paragraph (1)(A); and
                                    ``(II) the exemptions for certain 
                                incandescent lamps should be maintained 
                                or discontinued based, in part, on 
                                exempted lamp sales data collected by 
                                the Secretary from manufacturers.
                            ``(ii) Scope.--The rulemaking shall not be 
                        limited to incandescent lamp technologies.
                            ``(iii) Amended standards.--If the 
                        Secretary determines that the standards in 
                        effect for general service incandescent lamps 
                        should be amended, the Secretary shall publish 
                        a final rule not later than January 1, 2022, 
                        with an effective date that is not earlier than 
                        3 years after the date on which the final rule 
                        is published.
                            ``(iv) Phased-in effective dates.--The 
                        Secretary shall consider phased-in effective 
                        dates under this subparagraph after 
                        considering--
                                    ``(I) the impact of any amendment 
                                on manufacturers, retiring and 
                                repurposing existing equipment, 
                                stranded investments, labor contracts, 
                                workers, and raw materials; and
                                    ``(II) the time needed to work with 
                                retailers and lighting designers to 
                                revise sales and marketing 
                                strategies.''; and
                    (B) in subsection (l), by adding at the end the 
                following:
            ``(4) Energy efficiency standards for certain lamps.--
                    ``(A) In general.--The Secretary shall prescribe an 
                energy efficiency standard for rough service lamps, 
                vibration service lamps, 3-way incandescent lamps, 
                2,601-3,300 lumen general service incandescent lamps, 
                and shatter-resistant lamps only in accordance with 
                this paragraph.
                    ``(B) Benchmarks.--Not later than 1 year after the 
                date of enactment of this paragraph, the Secretary, in 
                consultation with the National Electrical Manufacturers 
                Association, shall--
                            ``(i) collect actual data for United States 
                        unit sales for each of calendar years 1990 
                        through 2006 for each of the 5 types of lamps 
                        described in subparagraph (A) to determine the 
                        historical growth rate of the type of lamp; and
                            ``(ii) construct a model for each type of 
                        lamp based on coincident economic indicators 
                        that closely match the historical annual growth 
                        rate of the type of lamp to provide a neutral 
                        comparison benchmark to model future unit sales 
                        after calendar year 2006.
                    ``(C) Actual sales data.--
                            ``(i) In general.--Effective for each of 
                        calendar years 2010 through 2025, the 
                        Secretary, in consultation with the National 
                        Electrical Manufacturers Association, shall--
                                    ``(I) collect actual United States 
                                unit sales data for each of 5 types of 
                                lamps described in subparagraph (A); 
                                and
                                    ``(II) not later than 90 days after 
                                the end of each calendar year, compare 
                                the lamp sales in that year with the 
                                sales predicted by the comparison 
                                benchmark for each of the 5 types of 
                                lamps described in subparagraph (A).
                            ``(ii) Continuation of tracking.--
                                    ``(I) Determination.--Not later 
                                than January 1, 2023, the Secretary 
                                shall determine if actual sales data 
                                should be tracked for the lamp types 
                                described in subparagraph (A) after 
                                calendar year 2025.
                                    ``(II) Continuation.--If the 
                                Secretary finds that the market share 
                                of a lamp type described in 
                                subparagraph (A) could significantly 
                                erode the market share for general 
                                service lamps, the Secretary shall 
                                continue to track the actual sales data 
                                for the lamp type.
                    ``(D) Rough service lamps.--
                            ``(i) In general.--Effective beginning with 
                        the first year that the reported annual sales 
                        rate for rough service lamps demonstrates 
                        actual unit sales of rough service lamps that 
                        achieve levels that are at least 100 percent 
                        higher than modeled unit sales for that same 
                        year, the Secretary shall--
                                    ``(I) not later than 90 days after 
                                the end of the previous calendar year, 
                                issue a finding that the index has been 
                                exceeded; and
                                    ``(II) not later than the date that 
                                is 1 year after the end of the previous 
                                calendar year, complete an accelerated 
                                rulemaking to establish an energy 
                                conservation standard for rough service 
                                lamps.
                            ``(ii) Backstop requirement.--If the 
                        Secretary fails to complete an accelerated 
                        rulemaking in accordance with clause (i)(II), 
                        effective beginning 1 year after the date of 
                        the issuance of the finding under clause 
                        (i)(I), the Secretary shall require rough 
                        service lamps to--
                                    ``(I) have a shatter-proof coating 
                                or equivalent technology that is 
                                compliant with NSF/ANSI 51 and is 
                                designed to contain the glass if the 
                                glass envelope of the lamp is broken 
                                and to provide effective containment 
                                over the life of the lamp;
                                    ``(II) have a maximum 40-watt 
                                limitation; and
                                    ``(III) be sold at retail only in a 
                                package containing 1 lamp.
                    ``(E) Vibration service lamps.--
                            ``(i) In general.--Effective beginning with 
                        the first year that the reported annual sales 
                        rate for vibration service lamps demonstrates 
                        actual unit sales of vibration service lamps 
                        that achieve levels that are at least 100 
                        percent higher than modeled unit sales for that 
                        same year, the Secretary shall--
                                    ``(I) not later than 90 days after 
                                the end of the previous calendar year, 
                                issue a finding that the index has been 
                                exceeded; and
                                    ``(II) not later than the date that 
                                is 1 year after the end of the previous 
                                calendar year, complete an accelerated 
                                rulemaking to establish an energy 
                                conservation standard for vibration 
                                service lamps.
                            ``(ii) Backstop requirement.--If the 
                        Secretary fails to complete an accelerated 
                        rulemaking in accordance with clause (i)(II), 
                        effective beginning 1 year after the date of 
                        the issuance of the finding under clause 
                        (i)(I), the Secretary shall require vibration 
                        service lamps to--
                                    ``(I) have a maximum 40-watt 
                                limitation; and
                                    ``(II) be sold at retail only in a 
                                package containing 1 lamp.
                    ``(F) 3-way incandescent lamps.--
                            ``(i) In general.--Effective beginning with 
                        the first year that the reported annual sales 
                        rate for 3-way incandescent lamps demonstrates 
                        actual unit sales of 3-way incandescent lamps 
                        that achieve levels that are at least 100 
                        percent higher than modeled unit sales for that 
                        same year, the Secretary shall--
                                    ``(I) not later than 90 days after 
                                the end of the previous calendar year, 
                                issue a finding that the index has been 
                                exceeded; and
                                    ``(II) not later than the date that 
                                is 1 year after the end of the previous 
                                calendar year, complete an accelerated 
                                rulemaking to establish an energy 
                                conservation standard for 3-way 
                                incandescent lamps.
                            ``(ii) Backstop requirement.--If the 
                        Secretary fails to complete an accelerated 
                        rulemaking in accordance with clause (i)(II), 
                        effective beginning 1 year after the date of 
                        issuance of the finding under clause (i)(I), 
                        the Secretary shall require that--
                                    ``(I) each filament in a 3-way 
                                incandescent lamp meet the new maximum 
                                wattage requirements for the respective 
                                lumen range established under 
                                subsection (i)(1)(A); and
                                    ``(II) 3-way lamps be sold at 
                                retail only in a package containing 1 
                                lamp.
                    ``(G) 2,601-3,300 lumen general service 
                incandescent lamps.--Effective beginning with the first 
                year that the reported annual sales rate demonstrates 
                actual unit sales of 2,601-3,300 lumen general service 
                incandescent lamps in the lumen range of 2,601 through 
                3,300 lumens (or, in the case of a modified spectrum, 
                in the lumen range of 1,951 through 2,475 lumens) that 
                achieve levels that are at least 100 percent higher 
                than modeled unit sales for that same year, the 
                Secretary shall impose--
                            ``(i) a maximum 95-watt limitation on 
                        general service incandescent lamps in the lumen 
                        range of 2,601 through 3,300 lumens; and
                            ``(ii) a requirement that those lamps be 
                        sold at retail only in a package containing 1 
                        lamp.
                    ``(H) Shatter-resistant lamps.--
                            ``(i) In general.--Effective beginning with 
                        the first year that the reported annual sales 
                        rate for shatter-resistant lamps demonstrates 
                        actual unit sales of shatter-resistant lamps 
                        that achieve levels that are at least 100 
                        percent higher than modeled unit sales for that 
                        same year, the Secretary shall--
                                    ``(I) not later than 90 days after 
                                the end of the previous calendar year, 
                                issue a finding that the index has been 
                                exceeded; and
                                    ``(II) not later than the date that 
                                is 1 year after the end of the previous 
                                calendar year, complete an accelerated 
                                rulemaking to establish an energy 
                                conservation standard for shatter-
                                resistant lamps.
                            ``(ii) Backstop requirement.--If the 
                        Secretary fails to complete an accelerated 
                        rulemaking in accordance with clause (i)(II), 
                        effective beginning 1 year after the date of 
                        issuance of the finding under clause (i)(I), 
                        the Secretary shall impose--
                                    ``(I) a maximum wattage limitation 
                                of 40 watts on shatter resistant lamps; 
                                and
                                    ``(II) a requirement that those 
                                lamps be sold at retail only in a 
                                package containing 1 lamp.
                    ``(I) Rulemakings before january 1, 2025.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), if the Secretary issues a final 
                        rule prior to January 1, 2025, establishing an 
                        energy conservation standard for any of the 5 
                        types of lamps for which data collection is 
                        required under any of subparagraphs (D) through 
                        (G), the requirement to collect and model data 
                        for that type of lamp shall terminate unless, 
                        as part of the rulemaking, the Secretary 
                        determines that continued tracking is 
                        necessary.
                            ``(ii) Backstop requirement.--If the 
                        Secretary imposes a backstop requirement as a 
                        result of a failure to complete an accelerated 
                        rulemaking in accordance with clause (i)(II) of 
                        any of subparagraphs (D) through (G), the 
                        requirement to collect and model data for the 
                        applicable type of lamp shall continue for an 
                        additional 2 years after the effective date of 
                        the backstop requirement.''.
    (b) Consumer Education and Lamp Labeling.--Section 324(a)(2)(C) of 
the Energy Policy and Conservation Act (42 U.S.C. 6294(a)(2)(C)) is 
amended by adding at the end the following:
                            ``(iii) Rulemaking to consider 
                        effectiveness of lamp labeling.--
                                    ``(I) In general.--Not later than 1 
                                year after the date of enactment of 
                                this clause, the Commission shall 
                                initiate a rulemaking to consider--
                                            ``(aa) the effectiveness of 
                                        current lamp labeling for power 
                                        levels or watts, light output 
                                        or lumens, and lamp lifetime; 
                                        and
                                            ``(bb) alternative labeling 
                                        approaches that will help 
                                        consumers to understand new 
                                        high-efficiency lamp products 
                                        and to base the purchase 
                                        decisions of the consumers on 
                                        the most appropriate source 
                                        that meets the requirements of 
                                        the consumers for lighting 
                                        level, light quality, lamp 
                                        lifetime, and total lifecycle 
                                        cost.
                                    ``(II) Completion.--The Commission 
                                shall--
                                            ``(aa) complete the 
                                        rulemaking not later than the 
                                        date that is 30 months after 
                                        the date of enactment of this 
                                        clause; and
                                            ``(bb) consider reopening 
                                        the rulemaking not later than 
                                        180 days before the effective 
                                        dates of the standards for 
                                        general service incandescent 
                                        lamps established under section 
                                        325(i)(1)(A), if the Commission 
                                        determines that further 
                                        labeling changes are needed to 
                                        help consumers understand lamp 
                                        alternatives.''.
    (c) Market Assessments and Consumer Awareness Program.--
            (1) In general.--In cooperation with the Administrator of 
        the Environmental Protection Agency, the Secretary of Commerce, 
        the Federal Trade Commission, lighting and retail industry 
        associations, energy efficiency organizations, and any other 
        entities that the Secretary of Energy determines to be 
        appropriate, the Secretary of Energy shall--
                    (A) conduct an annual assessment of the market for 
                general service lamps and compact fluorescent lamps--
                            (i) to identify trends in the market shares 
                        of lamp types, efficiencies, and light output 
                        levels purchased by residential and 
                        nonresidential consumers; and
                            (ii) to better understand the degree to 
                        which consumer decisionmaking is based on lamp 
                        power levels or watts, light output or lumens, 
                        lamp lifetime, and other factors, including 
                        information required on labels mandated by the 
                        Federal Trade Commission;
                    (B) provide the results of the market assessment to 
                the Federal Trade Commission for consideration in the 
                rulemaking described in section 324(a)(2)(C)(iii) of 
                the Energy Policy and Conservation Act (42 U.S.C. 
                6294(a)(2)(C)(iii)); and
                    (C) in cooperation with industry trade 
                associations, lighting industry members, utilities, and 
                other interested parties, carry out a proactive 
                national program of consumer awareness, information, 
                and education that broadly uses the media and other 
                effective communication techniques over an extended 
                period of time to help consumers understand the lamp 
                labels and make energy-efficient lighting choices that 
                meet the needs of consumers.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        each of fiscal years 2009 through 2012.
    (d) General Rule of Preemption for Energy Conservation Standards 
Before Federal Standard Becomes Effective for a Product.--Section 
327(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 
6297(b)(1)) is amended--
            (1) by inserting ``(A)'' after ``(1)'';
            (2) by inserting ``or'' after the semicolon at the end; and
            (3) by adding at the end the following:
            ``(B) in the case of any portion of any regulation that 
        establishes requirements for general service incandescent 
        lamps, intermediate base incandescent lamps, or candelabra base 
        lamps, was enacted or adopted by the States of California or 
        Nevada before December 4, 2007, except that--
                    ``(i) the regulation adopted by the California 
                Energy Commission with an effective date of January 1, 
                2008, shall only be effective until the effective date 
                of the Federal standard for the applicable lamp 
                category under subparagraphs (A), (B), and (C) of 
                section 325(i)(1);
                    ``(ii) the States of California and Nevada may, at 
                any time, modify or adopt a State standard for general 
                service lamps to conform with Federal standards with 
                effective dates no earlier than 12 months prior to the 
                Federal effective dates prescribed under subparagraphs 
                (A), (B), and (C) of section 325(i)(1), at which time 
                any prior regulations adopted by the States of 
                California or Nevada shall no longer be effective; and
                    ``(iii) all other States may, at any time, modify 
                or adopt a State standard for general service lamps to 
                conform with Federal standards and effective dates.''.
    (e) Prohibited Acts.--Section 332(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6302(a)) is amended--
            (1) in paragraph (4), by striking ``or'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(6) for any manufacturer, distributor, retailer, or 
        private labeler to distribute in commerce an adapter that--
                    ``(A) is designed to allow an incandescent lamp 
                that does not have a medium screw base to be installed 
                into a fixture or lampholder with a medium screw base 
                socket; and
                    ``(B) is capable of being operated at a voltage 
                range at least partially within 110 and 130 volts.''.
    (f) Enforcement.--Section 334 of the Energy Policy and Conservation 
Act (42 U.S.C. 6304) is amended by inserting after the second sentence 
the following: ``Any such action to restrain any person from 
distributing in commerce a general service incandescent lamp that does 
not comply with the applicable standard established under section 
325(i) or an adapter prohibited under section 332(a)(6) may also be 
brought by the attorney general of a State in the name of the State.''.
    (g) Research and Development Program.--
            (1) In general.--The Secretary may carry out a lighting 
        technology research and development program--
                    (A) to support the research, development, 
                demonstration, and commercial application of lamps and 
                related technologies sold, offered for sale, or 
                otherwise made available in the United States; and
                    (B) to assist manufacturers of general service 
                lamps in the manufacturing of general service lamps 
                that, at a minimum, achieve the wattage requirements 
                imposed as a result of the amendments made by 
                subsection (a).
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        each of fiscal years 2008 through 2013.
            (3) Termination of authority.--The program under this 
        subsection shall terminate on September 30, 2015.
    (h) Reports to Congress.--
            (1) Report on mercury use and release.--Not later than 1 
        year after the date of enactment of this Act, the Secretary , 
        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 light 
        bulbs.
            (2) Report on rulemaking schedule.--Beginning on July 1, 
        2013 and semiannually through July 1, 2016, the Secretary shall 
        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 report on--
                    (A) whether the Secretary will meet the deadlines 
                for the rulemakings required under this section;
                    (B) a description of any impediments to meeting the 
                deadlines; and
                    (C) a specific plan to remedy any failures, 
                including recommendations for additional legislation or 
                resources.
            (3) National academy review.--
                    (A) In general.--Not later than December 31, 2009, 
                the Secretary shall enter into an arrangement with the 
                National Academy of Sciences to provide a report by 
                December 31, 2013, and an updated report by July 31, 
                2015. The report should include--
                            (i) the status of advanced solid state 
                        lighting research, development, demonstration 
                        and commercialization;
                            (ii) the impact on the types of lighting 
                        available to consumers of an energy 
                        conservation standard requiring a minimum of 45 
                        lumens per watt for general service lighting 
                        effective in 2020; and
                            (iii) the time frame for the 
                        commercialization of lighting that could 
                        replace current incandescent and halogen 
                        incandescent lamp technology and any other new 
                        technologies developed to meet the minimum 
                        standards required under subsection (a) (3) of 
                        this section.
                    (B) Reports.--The reports shall be transmitted to 
                the Committee on Energy and Commerce of the House of 
                Representatives and the Committee on Energy and Natural 
                Resources of the Senate.

SEC. 322. INCANDESCENT REFLECTOR LAMP EFFICIENCY STANDARDS.

    (a) Definitions.--Section 321 of the Energy Policy and Conservation 
Act (42 U.S.C. 6291) (as amended by section 316(c)(1)(D)) 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 40 watts or higher''; and
            (2) by adding at the end the following:
            ``(54) BPAR incandescent reflector lamp.--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.
            ``(55) BR incandescent reflector lamp; br30; br40.--
                    ``(A) BR incandescent reflector lamp.--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 
                        C78.21-1989, 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) BR30.--The term `BR30' means a BR 
                incandescent reflector lamp with a diameter of 30/8ths 
                of an inch.
                    ``(C) BR40.--The term `BR40' means a BR 
                incandescent reflector lamp with a diameter of 40/8ths 
                of an inch.
            ``(56) ER incandescent reflector lamp; er30; er40.--
                    ``(A) ER incandescent reflector lamp.--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) ER30.--The term `ER30' means an ER 
                incandescent reflector lamp with a diameter of 30/8ths 
                of an inch.
                    ``(C) ER40.--The term `ER40' means an ER 
                incandescent reflector lamp with a diameter of 40/8ths 
                of an inch.
            ``(57) R20 incandescent reflector lamp.--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. 6995(i)) is amended by striking paragraph (1) and inserting the 
following:
            ``(1) Standards.--
                    ``(A) Definition of effective date.--In this 
                paragraph (other than subparagraph (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 October 24, 1992.
                    ``(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 that 
                        are ER30, BR30, BR40, or ER40 lamps.
                            ``(ii) Lamps rated at 65 watts that are 
                        BR30, BR40, or ER40 lamps.
                            ``(iii) R20 incandescent reflector lamps 
                        rated 45 watts or less.
                    ``(D) Effective dates.--
                            ``(i) ER, br, and bpar lamps.--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 the later of January 1, 
                        2008, or the date that is 180 days after the 
                        date of enactment of the Energy Independence 
                        and Security Act of 2007.''.

SEC. 323. PUBLIC BUILDING ENERGY EFFICIENT AND RENEWABLE ENERGY 
              SYSTEMS.

    (a) Estimate of Energy Performance in Prospectus.--Section 3307(b) 
of title 40, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (6) the following:
            ``(7) with respect to any prospectus for the construction, 
        alteration, or acquisition of any building or space to be 
        leased, an estimate of the future energy performance of the 
        building or space and a specific description of the use of 
        energy efficient and renewable energy systems, including 
        photovoltaic systems, in carrying out the project.''.
    (b) Minimum Performance Requirements for Leased Space.--Section 
3307 of such of title is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following:
    ``(f) Minimum Performance Requirements for Leased Space.--With 
respect to space to be leased, the Administrator shall include, to the 
maximum extent practicable, minimum performance requirements requiring 
energy efficiency and the use of renewable energy.''.
    (c) Use of Energy Efficient Lighting Fixtures and Bulbs.--
            (1) In general.--Chapter 33 of such title is amended--
                    (A) by redesignating sections 3313, 3314, and 3315 
                as sections 3314, 3315, and 3316, respectively; and
                    (B) by inserting after section 3312 the following:
``Sec. 3313. Use of energy efficient lighting fixtures and bulbs
    ``(a) Construction, Alteration, and Acquisition of Public 
Buildings.--Each public building constructed, altered, or acquired by 
the Administrator of General Services shall be equipped, to the maximum 
extent feasible as determined by the Administrator, with lighting 
fixtures and bulbs that are energy efficient.
    ``(b) Maintenance of Public Buildings.--Each lighting fixture or 
bulb that is replaced by the Administrator in the normal course of 
maintenance of public buildings shall be replaced, to the maximum 
extent feasible, with a lighting fixture or bulb that is energy 
efficient.
    ``(c) Considerations.--In making a determination under this section 
concerning the feasibility of installing a lighting fixture or bulb 
that is energy efficient, the Administrator shall consider--
            ``(1) the life-cycle cost effectiveness of the fixture or 
        bulb;
            ``(2) the compatibility of the fixture or bulb with 
        existing equipment;
            ``(3) whether use of the fixture or bulb could result in 
        interference with productivity;
            ``(4) the aesthetics relating to use of the fixture or 
        bulb; and
            ``(5) such other factors as the Administrator determines 
        appropriate.
    ``(d) Energy Star.--A lighting fixture or bulb shall be treated as 
being energy efficient for purposes of this section if--
            ``(1) the fixture or bulb is certified under the Energy 
        Star program established by section 324A of the Energy Policy 
        and Conservation Act (42 U.S.C. 6294a);
            ``(2) in the case of all light-emitting diode (LED) 
        luminaires, lamps, and systems whose efficacy (lumens per watt) 
        and Color Rendering Index (CRI) meet the Department of Energy 
        requirements for minimum luminaire efficacy and CRI for the 
        Energy Star certification, as verified by an independent third-
        party testing laboratory that the Administrator and the 
        Secretary of Energy determine conducts its tests according to 
        the procedures and recommendations of the Illuminating 
        Engineering Society of North America, even if the luminaires, 
        lamps, and systems have not received such certification; or
            ``(3) the Administrator and the Secretary of Energy have 
        otherwise determined that the fixture or bulb is energy 
        efficient.
    ``(e) Additional Energy Efficient Lighting Designations.--The 
Administrator of the Environmental Protection Agency and the Secretary 
of Energy shall give priority to establishing Energy Star performance 
criteria or Federal Energy Management Program designations for 
additional lighting product categories that are appropriate for use in 
public buildings.
    ``(f) Guidelines.--The Administrator shall develop guidelines for 
the use of energy efficient lighting technologies that contain mercury 
in child care centers in public buildings.
    ``(g) Applicability of Buy American Act.--Acquisitions carried out 
pursuant to this section shall be subject to the requirements of the 
Buy American Act (41 U.S.C. 10c et seq.).
    ``(h) Effective Date.--The requirements of subsections (a) and (b) 
shall take effect one year after the date of enactment of this 
subsection.''.
            (2) Clerical amendment.--The analysis for such chapter is 
        amended by striking the items relating to sections 3313, 3314, 
        and 3315 and inserting the following:

``3313. Use of energy efficient lighting fixtures and bulbs.
``3314. Delegation.
``3315. Report to Congress.
``3316. Certain authority not affected.''.
    (d) Evaluation Factor.--Section 3310 of such title is amended--
            (1) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (4), (5), and (6), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) shall include in the solicitation for any lease 
        requiring a prospectus under section 3307 an evaluation factor 
        considering the extent to which the offeror will promote energy 
        efficiency and the use of renewable energy;''.

SEC. 324. METAL HALIDE LAMP FIXTURES.

    (a) Definitions.--Section 321 of the Energy Policy and Conservation 
Act (42 U.S.C. 6291) (as amended by section 322(a)(2)) is amended by 
adding at the end the following:
            ``(58) Ballast.--The term `ballast' means a device used 
        with an electric discharge lamp to obtain necessary circuit 
        conditions (voltage, current, and waveform) for starting and 
        operating.
            ``(59) Ballast efficiency.--
                    ``(A) In general.--The term `ballast efficiency' 
                means, in the case of a high intensity discharge 
                fixture, the efficiency of a lamp and ballast 
                combination, expressed as a percentage, and calculated 
                in accordance with the following formula: Efficiency = 
                P<INF>out</INF>/P<INF>in</INF>.
                    ``(B) Efficiency formula.--For the purpose of 
                subparagraph (A)--
                            ``(i) P<INF>out </INF>shall equal the 
                        measured operating lamp wattage;
                            ``(ii) P<INF>in</INF> shall equal the 
                        measured operating input wattage;
                            ``(iii) the lamp, and the capacitor when 
                        the capacitor is provided, shall constitute a 
                        nominal system in accordance with the ANSI 
                        Standard C78.43-2004;
                            ``(iv) for ballasts with a frequency of 60 
                        Hz, P<INF>in</INF> and P<INF>out</INF> shall be 
                        measured after lamps have been stabilized 
                        according to section 4.4 of ANSI Standard 
                        C82.6-2005 using a wattmeter with accuracy 
                        specified in section 4.5 of ANSI Standard 
                        C82.6-2005; and
                            ``(v) for ballasts with a frequency greater 
                        than 60 Hz, P<INF>in</INF> and P<INF>out</INF> 
                        shall have a basic accuracy of <plus-minus> 0.5 
                        percent at the higher of--
                                    ``(I) 3 times the output operating 
                                frequency of the ballast; or
                                    ``(II) 2 kHz for ballast with a 
                                frequency greater than 60 Hz.
                    ``(C) Modification.--The Secretary may, by rule, 
                modify the definition of `ballast efficiency' if the 
                Secretary determines that the modification is necessary 
                or appropriate to carry out the purposes of this Act.
            ``(60) Electronic ballast.--The term `electronic ballast' 
        means a device that uses semiconductors as the primary means to 
        control lamp starting and operation.
            ``(61) General lighting application.--The term `general 
        lighting application' means lighting that provides an interior 
        or exterior area with overall illumination.
            ``(62) Metal halide ballast.--The term `metal halide 
        ballast' means a ballast used to start and operate metal halide 
        lamps.
            ``(63) Metal halide lamp.--The term `metal halide lamp' 
        means a high intensity discharge lamp in which the major 
        portion of the light is produced by radiation of metal halides 
        and their products of dissociation, possibly in combination 
        with metallic vapors.
            ``(64) Metal halide lamp fixture.--The term `metal halide 
        lamp fixture' means a light fixture for general lighting 
        application designed to be operated with a metal halide lamp 
        and a ballast for a metal halide lamp.
            ``(65) Probe-start metal halide ballast.--The term `probe-
        start metal halide ballast' means a ballast that--
                    ``(A) starts a probe-start metal halide lamp that 
                contains a third starting electrode (probe) in the arc 
                tube; and
                    ``(B) does not generally contain an igniter but 
                instead starts lamps with high ballast open circuit 
                voltage.
            ``(66) Pulse-start metal halide ballast.--
                    ``(A) In general.--The term `pulse-start metal 
                halide ballast' means an electronic or electromagnetic 
                ballast that starts a pulse-start metal halide lamp 
                with high voltage pulses.
                    ``(B) Starting process.--For the purpose of 
                subparagraph (A)--
                            ``(i) lamps shall be started by first 
                        providing a high voltage pulse for ionization 
                        of the gas to produce a glow discharge; and
                            ``(ii) to complete the starting process, 
                        power shall be provided by the ballast to 
                        sustain the discharge through the glow-to-arc 
                        transition.''.
    (b) Coverage.--Section 322(a) of the Energy Policy and Conservation 
Act (42 U.S.C. 6292(a)) is amended--
            (1) by redesignating paragraph (19) as paragraph (20); and
            (2) by inserting after paragraph (18) the following:
            ``(19) Metal halide lamp fixtures.''.
    (c) Test Procedures.--Section 323(b) of the Energy Policy and 
Conservation Act (42 U.S.C. 6293(b)) (as amended by section 301(b)) is 
amended by adding at the end the following:
            ``(18) Metal halide lamp ballasts.--Test procedures for 
        metal halide lamp ballasts shall be based on ANSI Standard 
        C82.6-2005, entitled `Ballasts for High Intensity Discharge 
        Lamps--Method of Measurement'.''.
    (d) Labeling.--Section 324(a)(2) of the Energy Policy and 
Conservation Act (42 U.S.C. 6294(a)(2)) is amended--
            (1) by redesignating subparagraphs (C) through (G) as 
        subparagraphs (D) through (H), respectively; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) Metal halide lamp fixtures.--
                            ``(i) In general.--The Commission shall 
                        issue labeling rules under this section 
                        applicable to the covered product specified in 
                        section 322(a)(19) and to which standards are 
                        applicable under section 325.
                            ``(ii) Labeling.--The rules shall provide 
                        that the labeling of any metal halide lamp 
                        fixture manufactured on or after the later of 
                        January 1, 2009, or the date that is 270 days 
                        after the date of enactment of this 
                        subparagraph, shall indicate conspicuously, in 
                        a manner prescribed by the Commission under 
                        subsection (b) by July 1, 2008, a capital 
                        letter `E' printed within a circle on the 
                        packaging of the fixture, and on the ballast 
                        contained in the fixture.''.
    (e) Standards.--Section 325 of the Energy Policy and Conservation 
Act (42 U.S.C. 6295) (as amended by section 310) is amended--
            (1) by redesignating subsection (hh) as subsection (ii);
            (2) by inserting after subsection (gg) the following:
    ``(hh) Metal Halide Lamp Fixtures.--
            ``(1) Standards.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), metal halide lamp fixtures designed to be operated 
                with lamps rated greater than or equal to 150 watts but 
                less than or equal to 500 watts shall contain--
                            ``(i) a pulse-start metal halide ballast 
                        with a minimum ballast efficiency of 88 
                        percent;
                            ``(ii) a magnetic probe-start ballast with 
                        a minimum ballast efficiency of 94 percent; or
                            ``(iii) a nonpulse-start electronic ballast 
                        with--
                                    ``(I) a minimum ballast efficiency 
                                of 92 percent for wattages greater than 
                                250 watts; and
                                    ``(II) a minimum ballast efficiency 
                                of 90 percent for wattages less than or 
                                equal to 250 watts.
                    ``(B) Exclusions.--The standards established under 
                subparagraph (A) shall not apply to--
                            ``(i) fixtures with regulated lag ballasts;
                            ``(ii) fixtures that use electronic 
                        ballasts that operate at 480 volts; or
                            ``(iii) fixtures that--
                                    ``(I) are rated only for 150 watt 
                                lamps;
                                    ``(II) are rated for use in wet 
                                locations, as specified by the National 
                                Electrical Code 2002, section 410.4(A); 
                                and
                                    ``(III) contain a ballast that is 
                                rated to operate at ambient air 
                                temperatures above 50\o\ C, as 
                                specified by UL 1029-2001.
                    ``(C) Application.--The standards established under 
                subparagraph (A) shall apply to metal halide lamp 
                fixtures manufactured on or after the later of--
                            ``(i) January 1, 2009; or
                            ``(ii) the date that is 270 days after the 
                        date of enactment of this subsection.
            ``(2) Final rule by january 1, 2012.--
                    ``(A) In general.--Not later than January 1, 2012, 
                the Secretary shall publish a final rule to determine 
                whether the standards established under paragraph (1) 
                should be amended.
                    ``(B) Administration.--The final rule shall--
                            ``(i) contain any amended standard; and
                            ``(ii) apply to products manufactured on or 
                        after January 1, 2015.
            ``(3) Final rule by january 1, 2019.--
                    ``(A) In general.--Not later than January 1, 2019, 
                the Secretary shall publish a final rule to determine 
                whether the standards then in effect should be amended.
                    ``(B) Administration.--The final rule shall--
                            ``(i) contain any amended standards; and
                            ``(ii) apply to products manufactured after 
                        January 1, 2022.
            ``(4) Design and performance requirements.--Notwithstanding 
        any other provision of law, any standard established pursuant 
        to this subsection may contain both design and performance 
        requirements.''; and
            (3) in paragraph (2) of subsection (ii) (as redesignated by 
        paragraph (2)), by striking ``(gg)'' each place it appears and 
        inserting ``(hh)''.
    (f) Effect on Other Law.--Section 327(c) of the Energy Policy and 
Conservation Act (42 U.S.C. 6297(c)) is amended--
            (1) in paragraph (8)(B), by striking the period at the end 
        and inserting ``; and''; and
            (2) by adding at the end the following:
            ``(9) is a regulation concerning metal halide lamp fixtures 
        adopted by the California Energy Commission on or before 
        January 1, 2011, except that--
                    ``(A) if the Secretary fails to issue a final rule 
                within 180 days after the deadlines for rulemakings in 
                section 325(hh), notwithstanding any other provision of 
                this section, preemption shall not apply to a 
                regulation concerning metal halide lamp fixtures 
                adopted by the California Energy Commission--
                            ``(i) on or before July 1, 2015, if the 
                        Secretary fails to meet the deadline specified 
                        in section 325(hh)(2); or
                            ``(ii) on or before July 1, 2022, if the 
                        Secretary fails to meet the deadline specified 
                        in section 325(hh)(3).''.

SEC. 325. ENERGY EFFICIENCY LABELING FOR CONSUMER ELECTRONIC PRODUCTS.

    (a) In General.--Section 324(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6294(a)) (as amended by section 324(d)) is 
amended--
            (1) in paragraph (2), by adding at the end the following:
                    ``(I) Labeling requirements.--
                            ``(i) In general.--Subject to clauses (ii) 
                        through (iv), not later than 18 months after 
                        the date of issuance of applicable Department 
                        of Energy testing procedures, the Commission, 
                        in consultation with the Secretary and the 
                        Administrator of the Environmental Protection 
                        Agency (acting through the Energy Star 
                        program), shall, by regulation, prescribe 
                        labeling or other disclosure requirements for 
                        the energy use of--
                                    ``(I) televisions;
                                    ``(II) personal computers;
                                    ``(III) cable or satellite set-top 
                                boxes;
                                    ``(IV) stand-alone digital video 
                                recorder boxes; and
                                    ``(V) personal computer monitors.
                            ``(ii) Alternate testing procedures.--In 
                        the absence of applicable testing procedures 
                        described in clause (i) for products described 
                        in subclauses (I) through (V) of that clause, 
                        the Commission may, by regulation, prescribe 
                        labeling or other disclosure requirements for a 
                        consumer product category described in clause 
                        (i) if the Commission--
                                    ``(I) identifies adequate non-
                                Department of Energy testing procedures 
                                for those products; and
                                    ``(II) determines that labeling of, 
                                or other disclosures relating to, those 
                                products is likely to assist consumers 
                                in making purchasing decisions.
                            ``(iii) Deadline and requirements for 
                        labeling.--
                                    ``(I) Deadline.--Not later than 18 
                                months after the date of promulgation 
                                of any requirements under clause (i) or 
                                (ii), the Commission shall require 
                                labeling of, or other disclosure 
                                requirements for, electronic products 
                                described in clause (i).
                                    ``(II) Requirements.--The 
                                requirements prescribed under clause 
                                (i) or (ii) may include specific 
                                requirements for each electronic 
                                product to be labeled with respect to 
                                the placement, size, and content of 
                                Energy Guide labels.
                            ``(iv) Determination of feasibility.--
                        Clause (i) or (ii) shall not apply in any case 
                        in which the Commission determines that 
                        labeling in accordance with this subsection--
                                    ``(I) is not technologically or 
                                economically feasible; or
                                    ``(II) is not likely to assist 
                                consumers in making purchasing 
                                decisions.''; and
            (2) by adding at the end the following:
            ``(6) Authority to include additional product categories.--
        The Commission may, by regulation, require labeling or other 
        disclosures in accordance with this subsection for any consumer 
        product not specified in this subsection or section 322 if the 
        Commission determines that labeling for the product is likely 
        to assist consumers in making purchasing decisions.''.
    (b) Content of Label.--Section 324(c) of the Energy Policy and 
Conservation Act (42 U.S.C. 6924(c)) is amended by adding at the end 
the following:
            ``(9) Discretionary application.--The Commission may apply 
        paragraphs (1), (2), (3), (5), and (6) of this subsection to 
        the labeling of any product covered by paragraph (2)(I) or (6) 
        of subsection (a).''.

           TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

SEC. 401. DEFINITIONS.

    In this title:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
            (2) Advisory committee.--The term ``Advisory Committee'' 
        means the Green Building Advisory Committee established under 
        section 484.
            (3) Commercial director.--The term ``Commercial Director'' 
        means the individual appointed to the position established 
        under section 421.
            (4) Consortium.--The term ``Consortium'' means the High-
        Performance Green Building Partnership Consortium created in 
        response to section 436(c)(1) to represent the private sector 
        in a public-private partnership to promote high-performance 
        green buildings and zero-net-energy commercial buildings.
            (5) Cost-effective lighting technology.--
                    (A) In general.--The term ``cost-effective lighting 
                technology'' means a lighting technology that--
                            (i) will result in substantial operational 
                        cost savings by ensuring an installed 
                        consumption of not more than 1 watt per square 
                        foot; or
                            (ii) is contained in a list under--
                                    (I) section 553 of Public Law 95-
                                619 (42 U.S.C. 8259b);
                                    (II) Federal acquisition regulation 
                                23-203; and
                                    (III) is at least as energy-
                                conserving as required by other 
                                provisions of this Act, including the 
                                requirements of this title and title 
                                III which shall be applicable to the 
                                extent that they would achieve greater 
                                energy savings than provided under 
                                clause (i) or this clause.
                    (B) Inclusions.--The term ``cost-effective lighting 
                technology'' includes--
                            (i) lamps;
                            (ii) ballasts;
                            (iii) luminaires;
                            (iv) lighting controls;
                            (v) daylighting; and
                            (vi) early use of other highly cost-
                        effective lighting technologies.
            (6) Cost-effective technologies and practices.--The term 
        ``cost-effective technologies and practices'' means a 
        technology or practice that--
                    (A) will result in substantial operational cost 
                savings by reducing electricity or fossil fuel 
                consumption, water, or other utility costs, including 
                use of geothermal heat pumps;
                    (B) complies with the provisions of section 553 of 
                Public Law 95-619 (42 U.S.C. 8259b) and Federal 
                acquisition regulation 23-203; and
                    (C) is at least as energy and water conserving as 
                required under this title, including sections 431 
                through 435, and title V, including section 511 through 
                525, which shall be applicable to the extent that they 
                are more stringent or require greater energy or water 
                savings than required by this section.
            (7) Federal director.--The term ``Federal Director'' means 
        the individual appointed to the position established under 
        section 436(a).
            (8) Federal facility.--The term ``Federal facility'' means 
        any building that is constructed, renovated, leased, or 
        purchased in part or in whole for use by the Federal 
        Government.
            (9) Operational cost savings.--
                    (A) In general.--The term ``operational cost 
                savings'' means a reduction in end-use operational 
                costs through the application of cost-effective 
                technologies and practices or geothermal heat pumps, 
                including a reduction in electricity consumption 
                relative to consumption by the same customer or at the 
                same facility in a given year, as defined in guidelines 
                promulgated by the Administrator pursuant to section 
                329(b) of the Clean Air Act, that achieves cost savings 
                sufficient to pay the incremental additional costs of 
                using cost-effective technologies and practices 
                including geothermal heat pumps by not later than the 
                later of the date established under sections 431 
                through 434, or--
                            (i) for cost-effective technologies and 
                        practices, the date that is 5 years after the 
                        date of installation; and
                            (ii) for geothermal heat pumps, as soon as 
                        practical after the date of installation of the 
                        applicable geothermal heat pump.
                    (B) Inclusions.--The term ``operational cost 
                savings'' includes savings achieved at a facility as a 
                result of--
                            (i) the installation or use of cost-
                        effective technologies and practices; or
                            (ii) the planting of vegetation that shades 
                        the facility and reduces the heating, cooling, 
                        or lighting needs of the facility.
                    (C) Exclusion.--The term ``operational cost 
                savings'' does not include savings from measures that 
                would likely be adopted in the absence of cost-
                effective technology and practices programs, as 
                determined by the Administrator.
            (10) Geothermal heat pump.--The term ``geothermal heat 
        pump'' means any heating or air conditioning technology that--
                    (A) uses the ground or ground water as a thermal 
                energy source to heat, or as a thermal energy sink to 
                cool, a building; and
                    (B) meets the requirements of the Energy Star 
                program of the Environmental Protection Agency 
                applicable to geothermal heat pumps on the date of 
                purchase of the technology.
            (11) GSA facility.--
                    (A) In general.--The term ``GSA facility'' means 
                any building, structure, or facility, in whole or in 
                part (including the associated support systems of the 
                building, structure, or facility) that--
                            (i) is constructed (including facilities 
                        constructed for lease), renovated, or 
                        purchased, in whole or in part, by the 
                        Administrator for use by the Federal 
                        Government; or
                            (ii) is leased, in whole or in part, by the 
                        Administrator for use by the Federal 
                        Government--
                                    (I) except as provided in subclause 
                                (II), for a term of not less than 5 
                                years; or
                                    (II) for a term of less than 5 
                                years, if the Administrator determines 
                                that use of cost-effective technologies 
                                and practices would result in the 
                                payback of expenses.
                    (B) Inclusion.--The term ``GSA facility'' includes 
                any group of buildings, structures, or facilities 
                described in subparagraph (A) (including the associated 
                energy-consuming support systems of the buildings, 
                structures, and facilities).
                    (C) Exemption.--The Administrator may exempt from 
                the definition of ``GSA facility'' under this paragraph 
                a building, structure, or facility that meets the 
                requirements of section 543(c) of Public Law 95-619 (42 
                U.S.C. 8253(c)).
            (12) High-performance building.--The term ``high 
        performance building'' means a building that integrates and 
        optimizes on a life cycle basis all major high performance 
        attributes, including energy conservation, environment, safety, 
        security, durability, accessibility, cost-benefit, 
        productivity, sustainability, functionality, and operational 
        considerations.
            (13) High-performance green building.--The term ``high-
        performance green building'' means a high-performance building 
        that, during its life-cycle, as compared with similar buildings 
        (as measured by Commercial Buildings Energy Consumption Survey 
        or Residential Energy Consumption Survey data from the Energy 
        Information Agency)--
                    (A) reduces energy, water, and material resource 
                use;
                    (B) improves indoor environmental quality, 
                including reducing indoor pollution, improving thermal 
                comfort, and improving lighting and acoustic 
                environments that affect occupant health and 
                productivity;
                    (C) reduces negative impacts on the environment 
                throughout the life-cycle of the building, including 
                air and water pollution and waste generation;
                    (D) increases the use of environmentally preferable 
                products, including biobased, recycled content, and 
                nontoxic products with lower life-cycle impacts;
                    (E) increases reuse and recycling opportunities;
                    (F) integrates systems in the building;
                    (G) reduces the environmental and energy impacts of 
                transportation through building location and site 
                design that support a full range of transportation 
                choices for users of the building; and
                    (H) considers indoor and outdoor effects of the 
                building on human health and the environment, 
                including--
                            (i) improvements in worker productivity;
                            (ii) the life-cycle impacts of building 
                        materials and operations; and
                            (iii) other factors that the Federal 
                        Director or the Commercial Director consider to 
                        be appropriate.
            (14) Life-cycle.--The term ``life-cycle'', with respect to 
        a high-performance green building, means all stages of the 
        useful life of the building (including components, equipment, 
        systems, and controls of the building) beginning at conception 
        of a high-performance green building project and continuing 
        through site selection, design, construction, landscaping, 
        commissioning, operation, maintenance, renovation, 
        deconstruction or demolition, removal, and recycling of the 
        high-performance green building.
            (15) 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.
            (16) 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.
            (17) Office of commercial high-performance green 
        buildings.--The term ``Office of Commercial High-Performance 
        Green Buildings'' means the Office of Commercial High-
        Performance Green Buildings established under section 421(a).
            (18) Office of federal high-performance green buildings.--
        The term ``Office of Federal High-Performance Green Buildings'' 
        means the Office of Federal High-Performance Green Buildings 
        established under section 436(a).
            (19) Practices.--The term ``practices'' means design, 
        financing, permitting, construction, commissioning, operation 
        and maintenance, and other practices that contribute to 
        achieving zero-net-energy buildings or facilities.
            (20) Zero-net-energy commercial building.--The term ``zero-
        net-energy commercial building'' means a commercial building 
        that is designed, constructed, and operated to--
                    (A) require a greatly reduced quantity of energy to 
                operate;
                    (B) meet the balance of energy needs from sources 
                of energy that do not produce greenhouse gases;
                    (C) therefore result in no net emissions of 
                greenhouse gases; and
                    (D) be economically viable.

              Subtitle A--Residential Building Efficiency

SEC. 411. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM.

    (a) In General.--Section 422 of the Energy Conservation and 
Production Act (42 U.S.C. 6872) is amended by striking `` appropriated 
$500,000,000 for fiscal year 2006, $600,000,000 for fiscal year 2007, 
and $700,000,000 for fiscal year 2008'' and inserting ``appropriated--
            ``(1) $750,000,000 for fiscal year 2008;
            ``(2) $900,000,000 for fiscal year 2009;
            ``(3) $1,050,000,000 for fiscal year 2010;
            ``(4) $1,200,000,000 for fiscal year 2011; and
            ``(5) $1,400,000,000 for fiscal year 2012.''.
    (b) Sustainable Energy Resources for Consumers Grants.--
            (1) In general.--The Secretary 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 covered by the program (as of the date of 
        enactment of this Act), if the State weatherization grantee 
        certifies that the applicant has the capacity to carry out the 
        proposed activities and that the grantee will include the 
        project in the financial oversight of the grantee of the 
        weatherization assistance program.
            (2) Priority.--In selecting grant recipients under this 
        subsection, the Secretary 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 consumers 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.--
                    (A) In general.--Except as provided in paragraph 
                (2), the amount of funds used for projects described in 
                paragraph (1) may equal up to 2 percent of the amount 
                of funds made available for any fiscal year under 
                section 422 of the Energy Conservation and Production 
                Act (42 U.S.C. 6872).
                    (B) Exception.--No funds may be used for 
                sustainable energy resources for consumers grants for a 
                fiscal year under this subsection if the amount of 
                funds made available for the fiscal year to carry out 
                the Weatherization Assistance Program for Low-Income 
                Persons established under part A of title IV of the 
                Energy Conservation and Production Act (42 U.S.C. 6861 
                et seq.) is less than $275,000,000.
    (c) Definition of State.--Section 412 of the Energy Conservation 
and Production Act (42 U.S.C. 6862) is amended by striking paragraph 
(8) and inserting the following:
            ``(8) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of the 
                United States.''.

SEC. 412. STUDY OF RENEWABLE ENERGY REBATE PROGRAMS.

    (a) In General.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall conduct, and submit to 
Congress a report on, a study regarding the rebate programs established 
under sections 124 and 206(c) of the Energy Policy Act of 2005 (42 
U.S.C. 15821, 15853).
    (b) Components.--In conducting the study, the Secretary shall--
            (1) develop a plan for how the rebate programs would be 
        carried out if the programs were funded; and
            (2) determine the minimum amount of funding the program 
        would need to receive in order to accomplish the goals of the 
        programs.

SEC. 413. ENERGY CODE IMPROVEMENTS APPLICABLE TO MANUFACTURED HOUSING.

    (a) Establishment of Standards.--
            (1) In general.--Not later than 4 years after the date of 
        enactment of this Act, the Secretary shall by regulation 
        establish standards for energy efficiency in manufactured 
        housing.
            (2) Notice, comment, and consultation.--Standards described 
        in paragraph (1) shall be established after--
                    (A) notice and an opportunity for comment by 
                manufacturers of manufactured housing and other 
                interested parties; and
                    (B) consultation with the Secretary of Housing and 
                Urban Development, who may seek further counsel from 
                the Manufactured Housing Consensus Committee.
    (b) Requirements.--
            (1) International energy conservation code.--The energy 
        conservation standards established under this section shall be 
        based on the most recent version of the International Energy 
        Conservation Code (including supplements), except in cases in 
        which the Secretary finds that the code is not cost-effective, 
        or a more stringent standard would be more cost-effective, 
        based on the impact of the code on the purchase price of 
        manufactured housing and on total life-cycle construction and 
        operating costs.
            (2) Considerations.--The energy conservation standards 
        established under this section 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 the climate zones 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) Updating.--The energy conservation standards 
        established under this section shall be updated not later 
        than--
                    (A) 1 year after the date of enactment of this Act; 
                and
                    (B) 1 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.

           Subtitle B--High-Performance Commercial Buildings

SEC. 421. COMMERCIAL HIGH-PERFORMANCE GREEN BUILDINGS.

    (a) Director of Commercial High-Performance Green Buildings.--
Notwithstanding any other provision of law, the Secretary, acting 
through the Assistant Secretary of Energy Efficiency and Renewable 
Energy, shall appoint a Director of Commercial High-Performance Green 
Buildings to a position in the career-reserved Senior Executive 
service, with the principal responsibility to--
            (1) establish and manage the Office of Commercial High-
        Performance Green Buildings; and
            (2) carry out other duties as required under this subtitle.
    (b) Qualifications.--The Commercial Director shall be an 
individual, who by reason of professional background and experience, is 
specifically qualified to carry out the duties required under this 
subtitle.
    (c) Duties.--The Commercial Director shall, with respect to 
development of high-performance green buildings and zero-energy 
commercial buildings nationwide--
            (1) coordinate the activities of the Office of Commercial 
        High-Performance Green Buildings with the activities of the 
        Office of Federal High-Performance Green Buildings;
            (2) develop the legal predicates and agreements for, 
        negotiate, and establish one or more public-private 
        partnerships with the Consortium, members of the Consortium, 
        and other capable parties meeting the qualifications of the 
        Consortium, to further such development;
            (3) represent the public and the Department in negotiating 
        and performing in accord with such public-private partnerships;
            (4) use appropriated funds in an effective manner to 
        encourage the maximum investment of private funds to achieve 
        such development;
            (5) promote research and development of high performance 
        green buildings, consistent with section 423; and
            (6) jointly establish with the Federal Director a national 
        high-performance green building clearinghouse in accordance 
        with section 423(1), which shall provide high-performance green 
        building information and disseminate research results through--
                    (A) outreach;
                    (B) education; and
                    (C) the provision of technical assistance.
    (d) Reporting.--The Commercial Director shall report directly to 
the Assistant Secretary for Energy Efficiency and Renewable Energy, or 
to other senior officials in a way that facilitates the integrated 
program of this subtitle for both energy efficiency and renewable 
energy and both technology development and technology deployment.
    (e) Coordination.--The Commercial Director shall ensure full 
coordination of high-performance green building information and 
activities, including activities under this subtitle, within the 
Federal Government by working with the General Services Administration 
and all relevant agencies, including, at a minimum--
            (1) the Environmental Protection Agency;
            (2) the Office of the Federal Environmental Executive;
            (3) the Office of Federal Procurement Policy;
            (4) the Department of Energy, particularly the Federal 
        Energy Management Program;
            (5) the Department of Health and Human Services;
            (6) the Department of Housing and Urban Development;
            (7) the Department of Defense;
            (8) the National Institute of Standards and Technology;
            (9) the Department of Transportation;
            (10) the Office of Science Technology and Policy; and
            (11) such nonprofit high-performance green building rating 
        and analysis entities as the Commercial Director determines can 
        offer support, expertise, and review services.
    (f) High-Performance Green Building Partnership Consortium.--
            (1) Recognition.--Not later than 90 days after the date of 
        enactment of this Act, the Commercial Director shall formally 
        recognize one or more groups that qualify as a high-performance 
        green building partnership consortium.
            (2) Representation to qualify.--To qualify under this 
        section, any consortium shall include representation from--
                    (A) the design professions, including national 
                associations of architects and of professional 
                engineers;
                    (B) the development, construction, financial, and 
                real estate industries;
                    (C) building owners and operators from the public 
                and private sectors;
                    (D) academic and research organizations, including 
                at least one national laboratory with extensive 
                commercial building energy expertise;
                    (E) building code agencies and organizations, 
                including a model energy code-setting organization;
                    (F) independent high-performance green building 
                associations or councils;
                    (G) experts in indoor air quality and environmental 
                factors;
                    (H) experts in intelligent buildings and integrated 
                building information systems;
                    (I) utility energy efficiency programs;
                    (J) manufacturers and providers of equipment and 
                techniques used in high performance green buildings;
                    (K) public transportation industry experts; and
                    (L) 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.
    (g) Report.--Not later than 2 years after the date of enactment of 
this Act, and biennially thereafter, the Commercial Director, in 
consultation with the Consortium, shall submit to Congress a report 
that--
            (1) describes the status of the high-performance green 
        building initiatives under this subtitle and other Federal 
        programs affecting commercial high-performance green buildings 
        in effect as of the date of the report, including--
                    (A) the extent to which the programs are being 
                carried out in accordance with this subtitle; and
                    (B) the status of funding requests and 
                appropriations for those programs; and
            (2) summarizes and highlights development, at the State and 
        local level, of high-performance green building initiatives, 
        including executive orders, policies, or laws adopted promoting 
        high-performance green building (including the status of 
        implementation of those initiatives).

SEC. 422. ZERO NET ENERGY COMMERCIAL BUILDINGS INITIATIVE.

    (a) Definitions.--In this section:
            (1) Consortium.--The term ``consortium'' means a High-
        Performance Green Building Consortium selected by the 
        Commercial Director.
            (2) Initiative.--The term ``initiative'' means the Zero-
        Net-Energy Commercial Buildings Initiative established under 
        subsection (b)(1).
            (3) Zero-net-energy commercial building.--The term ``zero-
        net-energy commercial building'' means a high-performance 
        commercial building that is designed, constructed, and 
        operated--
                    (A) to require a greatly reduced quantity of energy 
                to operate;
                    (B) to meet the balance of energy needs from 
                sources of energy that do not produce greenhouse gases;
                    (C) in a manner that will result in no net 
                emissions of greenhouse gases; and
                    (D) to be economically viable.
    (b) Establishment.--
            (1) In general.--The Commercial Director shall establish an 
        initiative, to be known as the ``Zero-Net-Energy Commercial 
        Buildings Initiative''--
                    (A) to reduce the quantity of energy consumed by 
                commercial buildings located in the United States; and
                    (B) to achieve the development of zero net energy 
                commercial buildings in the United States.
            (2) Consortium.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, the Commercial Director 
                shall competitively select, and enter into an agreement 
                with, a consortium to develop and carry out the 
                initiative.
                    (B) Agreements.--In entering into an agreement with 
                a consortium under subparagraph (A), the Commercial 
                Director shall use the authority described in section 
                646(g) of the Department of Energy Organization Act (42 
                U.S.C. 7256(g)), to the maximum extent practicable.
    (c) Goal of Initiative.--The goal of the initiative shall be to 
develop and disseminate technologies, practices, and policies for the 
development and establishment of zero net energy commercial buildings 
for--
            (1) any commercial building newly constructed in the United 
        States by 2030;
            (2) 50 percent of the commercial building stock of the 
        United States by 2040; and
            (3) all commercial buildings in the United States by 2050.
    (d) Components.--In carrying out the initiative, the Commercial 
Director, in consultation with the consortium, may--
            (1) conduct research and development on building science, 
        design, materials, components, equipment and controls, 
        operation and other practices, integration, energy use 
        measurement, and benchmarking;
            (2) conduct pilot programs and demonstration projects to 
        evaluate replicable approaches to achieving energy efficient 
        commercial buildings for a variety of building types in a 
        variety of climate zones;
            (3) conduct deployment, dissemination, and technical 
        assistance activities to encourage widespread adoption of 
        technologies, practices, and policies to achieve energy 
        efficient commercial buildings;
            (4) conduct other research, development, demonstration, and 
        deployment activities necessary to achieve each goal of the 
        initiative, as determined by the Commercial Director, in 
        consultation with the consortium;
            (5) develop training materials and courses for building 
        professionals and trades on achieving cost-effective high-
        performance energy efficient buildings;
            (6) develop and disseminate public education materials to 
        share information on the benefits and cost-effectiveness of 
        high-performance energy efficient buildings;
            (7) support code-setting organizations and State and local 
        governments in developing minimum performance standards in 
        building codes that recognize the ready availability of many 
        technologies utilized in high-performance energy efficient 
        buildings;
            (8) develop strategies for overcoming the split incentives 
        between builders and purchasers, and landlords and tenants, to 
        ensure that energy efficiency and high-performance investments 
        are made that are cost-effective on a lifecycle basis; and
            (9) develop improved means of measurement and verification 
        of energy savings and performance for public dissemination.
    (e) Cost Sharing.--In carrying out this section, the Commercial 
Director shall require cost sharing in accordance with section 988 of 
the Energy Policy Act of 2005 (42 U.S.C. 16352).
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (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 
        2018.

SEC. 423. PUBLIC OUTREACH.

    The Commercial Director and Federal 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, tools, and 
        resources for constructing high-performance green buildings, 
        particularly tools 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 to the public, through the Commercial 
        Director, technical and research information or other forms of 
        assistance or advice that would be useful in planning and 
        constructing high-performance green buildings;
            (6) using such additional methods as are determined by the 
        Commercial Director to be appropriate to conduct public 
        outreach;
            (7) surveying existing research and studies relating to 
        high-performance green buildings; and
            (8) coordinating activities of common interest.

             Subtitle C--High-Performance Federal Buildings

SEC. 431. ENERGY REDUCTION GOALS FOR FEDERAL BUILDINGS.

    Section 543(a)(1) of the National Energy Conservation Policy Act 
(42 U.S.C. 8253(a)(1)) is amended by striking the table and inserting 
the following:

``Fiscal Year                                      Percentage reduction
    2006..........................................                   2 
    2007..........................................                   4 
    2008..........................................                   9 
    2009..........................................                  12 
    2010..........................................                  15 
    2011..........................................                  18 
    2012..........................................                  21 
    2013..........................................                  24 
    2014..........................................                  27 
    2015..........................................               30.''.

SEC. 432. MANAGEMENT OF ENERGY AND WATER EFFICIENCY IN FEDERAL 
              BUILDINGS.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is amended by adding at the end the following:
    ``(f) Use of Energy and Water Efficiency Measures in Federal 
Buildings.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Commissioning.--The term `commissioning', 
                with respect to a facility, means a systematic 
                process--
                            ``(i) of ensuring, using appropriate 
                        verification and documentation, during the 
                        period beginning on the initial day of the 
                        design phase of the facility and ending not 
                        earlier than 1 year after the date of 
                        completion of construction of the facility, 
                        that all facility systems perform interactively 
                        in accordance with--
                                    ``(I) the design documentation and 
                                intent of the facility; and
                                    ``(II) the operational needs of the 
                                owner of the facility, including 
                                preparation of operation personnel; and
                            ``(ii) the primary goal of which is to 
                        ensure fully functional systems that can be 
                        properly operated and maintained during the 
                        useful life of the facility.
                    ``(B) Energy manager.--
                            ``(i) In general.--The term `energy 
                        manager', with respect to a facility, means the 
                        individual who is responsible for--
                                    ``(I) ensuring compliance with this 
                                subsection by the facility; and
                                    ``(II) reducing energy use at the 
                                facility.
                            ``(ii) Inclusions.--The term `energy 
                        manager' may include--
                                    ``(I) a contractor of a facility;
                                    ``(II) a part-time employee of a 
                                facility; and
                                    ``(III) an individual who is 
                                responsible for multiple facilities.
                    ``(C) Facility.--
                            ``(i) In general.--The term `facility' 
                        means any building, installation, structure, or 
                        other property (including any applicable 
                        fixtures) owned or operated by, or constructed 
                        or manufactured and leased to, the Federal 
                        Government.
                            ``(ii) Inclusions.--The term `facility' 
                        includes--
                                    ``(I) a group of facilities at a 
                                single location or multiple locations 
                                managed as an integrated operation; and
                                    ``(II) contractor-operated 
                                facilities owned by the Federal 
                                Government.
                            ``(iii) Exclusions.--The term `facility' 
                        does not include any land or site for which the 
                        cost of utilities is not paid by the Federal 
                        Government.
                    ``(D) Life cycle cost-effective.--The term `life 
                cycle cost-effective', with respect to a measure, means 
                a measure the estimated savings of which exceed the 
                estimated costs over the lifespan of the measure, as 
                determined in accordance with section 544.
                    ``(E) Payback period.--
                            ``(i) In general.--Subject to clause (ii), 
                        the term `payback period', with respect to a 
                        measure, means a value equal to the quotient 
                        obtained by dividing--
                                    ``(I) the estimated initial 
                                implementation cost of the measure 
                                (other than financing costs); by
                                    ``(II) the annual cost savings 
                                resulting from the measure, including--
                                            ``(aa) net savings in 
                                        estimated energy and water 
                                        costs; and
                                            ``(bb) operations, 
                                        maintenance, repair, 
                                        replacement, and other direct 
                                        costs.
                            ``(ii) Modifications and exceptions.--The 
                        Secretary, in guidelines issued pursuant to 
                        paragraph (6), may make such modifications and 
                        provide such exceptions to the calculation of 
                        the payback period of a measure as the 
                        Secretary determines to be appropriate to 
                        achieve the purposes of this Act.
                    ``(F) Recommissioning.--The term `recommissioning' 
                means a process--
                            ``(i) of commissioning a facility or system 
                        beyond the project development and warranty 
                        phases of the facility or system; and
                            ``(ii) the primary goal of which is to 
                        ensure optimum performance of a facility, in 
                        accordance with design or current operating 
                        needs, over the useful life of the facility, 
                        while meeting building occupancy requirements.
                    ``(G) Retrocommissioning.--The term 
                `retrocommissioning' means a process of commissioning a 
                facility or system that was not commissioned at time of 
                construction of the facility or system.
            ``(2) Facility energy managers.--
                    ``(A) In general.--Each Federal agency shall 
                designate an energy manager responsible for 
                implementing this subsection and reducing energy use at 
                each facility that meets criteria under subparagraph 
                (B).
                    ``(B) Covered facilities.--The Secretary shall 
                develop criteria, after consultation with affected 
                agencies, energy efficiency advocates, and energy and 
                utility service providers, that cover, at a minimum, 
                Federal facilities, including central utility plants 
                and distribution systems and other energy intensive 
                operations, that constitute at least 75 percent of 
                facility energy use at each agency.
            ``(3) Energy and water evaluations.--
                    ``(A) Evaluations.--Effective beginning on the date 
                that is 180 days after the date of enactment of this 
                subsection and annually thereafter, energy managers 
                shall complete, for each calendar year, a comprehensive 
                energy and water evaluation for approximately 25 
                percent of the facilities of each agency that meet the 
                criteria under paragraph (2)(B) in a manner that 
                ensures that an evaluation of each such facility is 
                completed at least once every 4 years.
                    ``(B) Recommissioning and retrocommissioning.--As 
                part of the evaluation under subparagraph (A), the 
                energy manager shall identify and assess 
                recommissioning measures (or, if the facility has never 
                been commissioned, retrocommissioning measures) for 
                each such facility.
            ``(4) Implementation of identified energy and water 
        efficiency measures.--Not later than 2 years after the 
        completion of each evaluation under paragraph (3), each energy 
        manager may--
                    ``(A) implement any energy- or water-saving measure 
                that the Federal agency identified in the evaluation 
                conducted under paragraph (3) that is life cycle cost-
                effective; and
                    ``(B) bundle individual measures of varying 
                paybacks together into combined projects.
            ``(5) Follow-up on implemented measures.--For each measure 
        implemented under paragraph (4), 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.
            ``(6) Guidelines.--
                    ``(A) In general.--The Secretary shall issue 
                guidelines and necessary criteria that each Federal 
                agency shall follow for implementation of--
                            ``(i) paragraphs (2) and (3) not later than 
                        180 days after the date of enactment of this 
                        subsection; and
                            ``(ii) paragraphs (4) and (5) 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 (10), but may distinguish between different 
                types of measures project size, and other criteria the 
                Secretary determines are relevant.
            ``(7) Web-based certification.--
                    ``(A) In general.--For each facility that meets the 
                criteria established by the Secretary under paragraph 
                (2)(B), 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 under 
                        paragraph (3);
                            ``(ii) implementation of identified energy 
                        and water measures under paragraph (4); and
                            ``(iii) follow-up on implemented measures 
                        under paragraph (5).
                    ``(B) Deployment.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of enactment of this subsection, 
                        the Secretary shall develop and deploy a web-
                        based tracking system required under this 
                        paragraph in a manner that tracks, at a 
                        minimum--
                                    ``(I) the covered 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 facility;
                                    ``(IV) the measured savings and 
                                persistence of savings for implemented 
                                measures; and
                                    ``(V) the benchmarking information 
                                disclosed under paragraph (8)(C).
                            ``(ii) Ease of compliance.--The Secretary 
                        shall ensure that energy manager compliance 
                        with the requirements in this paragraph, to the 
                        maximum extent practicable--
                                    ``(I) can be accomplished with the 
                                use of streamlined procedures and 
                                templates that minimize the time 
                                demands on Federal employees; and
                                    ``(II) is coordinated with other 
                                applicable energy reporting 
                                requirements.
                    ``(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 facilities from 
                        disclosure under clause (i) for national 
                        security purposes.
            ``(8) Benchmarking of federal facilities.--
                    ``(A) In general.--The energy manager shall enter 
                energy use data for each metered building that is (or 
                is a part of) a facility that meets the criteria 
                established by the Secretary under paragraph (2)(B) 
                into a building energy use benchmarking system, such as 
                the Energy Star Portfolio Manager.
                    ``(B) System and guidance.--Not later than 1 year 
                after the date of enactment of this subsection, the 
                Secretary shall--
                            ``(i) select or develop the building energy 
                        use benchmarking system required under this 
                        paragraph for each type of building; and
                            ``(ii) issue guidance for use of the 
                        system.
                    ``(C) Public disclosure.--Each energy manager shall 
                post the information entered into, or generated by, a 
                benchmarking system under this subsections, on the web-
                based tracking system under paragraph (7)(B). The 
                energy manager shall update such information each year, 
                and shall include in such reporting previous years' 
                information to allow changes in building performance to 
                be tracked over time.
            ``(9) 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.
            ``(10) 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 otherwise 
                                authorized under Federal law, 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.
                    ``(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.
            ``(11) Rule of construction.--This subsection shall not be 
        construed to require or to obviate any contractor savings 
        guarantees.''.

SEC. 433. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.

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


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

                    ``(II) Upon petition by an agency subject to this 
                subparagraph, the Secretary may adjust the applicable 
                numeric requirement under subclause (I) downward with 
                respect to a specific building, if the head of the 
                agency designing the building certifies in writing that 
                meeting such requirement would be technically 
                impracticable in light of the agency's specified 
                functional needs for that building and the Secretary 
                concurs with the agency's conclusion. This subclause 
                shall not apply to the General Services Administration.
                    ``(III) Sustainable design principles shall be 
                applied to the siting, design, and construction of such 
                buildings. Not later than 90 days after the date of 
                enactment of the Energy Independence and Security Act 
                of 2007, the Secretary, after reviewing the findings of 
                the Federal Director under section 436(h) of that Act, 
                in consultation with the Administrator of General 
                Services, and in consultation with the Secretary of 
                Defense for considerations relating to those facilities 
                under the custody and control of the Department of 
                Defense, shall identify a certification system and 
                level for green buildings that the Secretary determines 
                to be the most likely to encourage a comprehensive and 
                environmentally-sound approach to certification of 
                green buildings. The identification of the 
                certification system and level shall be based on a 
                review of the Federal Director's findings under section 
                436(h) of the Energy Independence and Security Act of 
                2007 and the criteria specified in clause (iii), shall 
                identify the highest level the Secretary determines is 
                appropriate above the minimum level required for 
                certification under the system selected, and shall 
                achieve results at least comparable to the system used 
                by and highest level referenced by the General Services 
                Administration as of the date of enactment of the 
                Energy Independence and Security Act of 2007. Within 90 
                days of the completion of each study required by clause 
                (iv), the Secretary, in consultation with the 
                Administrator of General Services, and in consultation 
                with the Secretary of Defense for considerations 
                relating to those facilities under the custody and 
                control of the Department of Defense, shall review and 
                update the certification system and level, taking into 
                account the conclusions of such study.
            ``(ii) In establishing criteria for identifying major 
        renovations that are subject to the requirements of this 
        subparagraph, the Secretary shall take into account the scope, 
        degree, and types of renovations that are likely to provide 
        significant opportunities for substantial improvements in 
        energy efficiency.
            ``(iii) In identifying the green building certification 
        system and level, the Secretary shall take into consideration--
                    ``(I) the ability and availability of assessors and 
                auditors to independently verify the criteria and 
                measurement of metrics at the scale necessary to 
                implement this subparagraph;
                    ``(II) the ability of the applicable certification 
                organization to collect and reflect public comment;
                    ``(III) the ability of the standard to be developed 
                and revised through a consensus-based process;
                    ``(IV) an evaluation of the robustness of the 
                criteria for a high-performance green building, which 
                shall give credit for promoting--
                            ``(aa) efficient and sustainable use of 
                        water, energy, and other natural resources;
                            ``(bb) use of renewable energy sources;
                            ``(cc) improved indoor environmental 
                        quality through enhanced indoor air quality, 
                        thermal comfort, acoustics, day lighting, 
                        pollutant source control, and use of low-
                        emission materials and building system 
                        controls; and
                            ``(dd) such other criteria as the Secretary 
                        determines to be appropriate; and
                    ``(V) national recognition within the building 
                industry.
            ``(iv) At least once every five years, and in accordance 
        with section 436 of the Energy Independence and Security Act of 
        2007, the Administrator of General Services shall conduct a 
        study to evaluate and compare available third-party green 
        building certification systems and levels, taking into account 
        the criteria listed in clause (iii).
            ``(v) The Secretary may by rule allow Federal agencies to 
        develop internal certification processes, using certified 
        professionals, in lieu of certification by the certification 
        entity identified under clause (i)(III). The Secretary shall 
        include in any such rule guidelines to ensure that the 
        certification process results in buildings meeting the 
        applicable certification system and level identified under 
        clause (i)(III). An agency employing an internal certification 
        process must continue to obtain external certification by the 
        certification entity identified under clause (i)(III) for at 
        least 5 percent of the total number of buildings certified 
        annually by the agency.
            ``(vi) With respect to privatized military housing, the 
        Secretary of Defense, after consultation with the Secretary 
        may, through rulemaking, develop alternative criteria to those 
        established by subclauses (I) and (III) of clause (i) that 
        achieve an equivalent result in terms of energy savings, 
        sustainable design, and green building performance.
            ``(vii) In addition to any use of water conservation 
        technologies otherwise required by this section, water 
        conservation technologies shall be applied to the extent that 
        the technologies are life-cycle cost-effective.''.
    (b) Definitions.--Section 303(6) of the Energy Conservation and 
Production Act (42 U.S.C. 6832(6)) is amended by striking ``which is 
not legally subject to State or local building codes or similar 
requirements.'' and inserting ``. Such term shall include buildings 
built for the purpose of being leased by a Federal agency, and 
privatized military housing.''.
    (c) Revision of Federal Acquisition Regulation.--Not later than 2 
years after the date of the enactment of this Act, the Federal 
Acquisition Regulation shall be revised to require Federal officers and 
employees to comply with this section and the amendments made by this 
section in the acquisition, construction, or major renovation of any 
facility. The members of the Federal Acquisition Regulatory Council 
(established under section 25 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 421)) shall consult with the Federal Director and 
the Commercial Director before promulgating regulations to carry out 
this subsection.
    (d) Guidance.--Not later than 90 days after the date of 
promulgation of the revised regulations under subsection (c), the 
Administrator for Federal Procurement Policy shall issue guidance to 
all Federal procurement executives providing direction and instructions 
to renegotiate the design of proposed facilities and major renovations 
for existing facilities to incorporate improvements that are consistent 
with this section.

SEC. 434. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY .

    (a) Large Capital Energy Investments.--Section 543 of the National 
Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at 
the end the following:
    ``(f) Large Capital Energy Investments.--
            ``(1) In general.--Each Federal agency shall ensure that 
        any large capital energy investment in an existing building 
        that is not a major renovation but involves replacement of 
        installed equipment (such as heating and cooling systems), or 
        involves renovation, rehabilitation, expansion, or remodeling 
        of existing space, employs the most energy efficient designs, 
        systems, equipment, and controls that are life-cycle cost 
        effective.
            ``(2) Process for review of investment decisions.--Not 
        later than 180 days after the date of enactment of this 
        subsection, each Federal agency shall--
                    ``(A) develop a process for reviewing each decision 
                made on a large capital energy investment described in 
                paragraph (1) to ensure that the requirements of this 
                subsection are met; and
                    ``(B) report to the Director of the Office of 
                Management and Budget on the process established.
            ``(3) Compliance report.--Not later than 1 year after the 
        date of enactment of this subsection, the Director of the 
        Office of Management and Budget shall evaluate and report to 
        Congress on the compliance of each agency with this 
        subsection.''.
    (b) Metering.--Section 543(e)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(e)(1)) is amended by inserting 
after the second sentence the following: ``Not later than October 1, 
2016, each agency shall provide for equivalent metering of natural gas 
and steam, in accordance with guidelines established by the Secretary 
under paragraph (2).''.

SEC. 435. LEASING.

    (a) In General.--Except as provided in subsection (b), effective 
beginning on the date that is 3 years after the date of enactment of 
this Act, no Federal agency shall enter into a contract to lease space 
in a building that has not earned the Energy Star label in the most 
recent year.
    (b) Exception.--
            (1) Application.--This subsection applies if--
                    (A) no space is available in a building described 
                in subsection (a) that meets the functional 
                requirements of an agency, including locational needs;
                    (B) the agency proposes to remain in a building 
                that the agency has occupied previously;
                    (C) the agency proposes to lease a building of 
                historical, architectural, or cultural significance (as 
                defined in section 3306(a)(4) of title 40, United 
                States Code) or space in such a building; or
                    (D) the lease is for not more than 10,000 gross 
                square feet of space.
            (2) Buildings without energy star label.--If 1 of the 
        conditions described in paragraph (2) is met, the agency may 
        enter into a contract to lease space in a building that has not 
        earned the Energy Star label in the most recent year if the 
        lease contract includes provisions requiring that, prior to 
        occupancy or, in the case of a contract described in paragraph 
        (1)(B), not later than 1 year after signing the contract, the 
        space will be renovated for all energy efficiency and 
        conservation improvements that would be cost effective over the 
        life of the lease, including improvements in lighting, windows, 
        and heating, ventilation, and air conditioning systems.
    (c) Revision of Federal Acquisition Regulation.--
            (1) In general.--Not later than 3 years after the date of 
        the enactment of this Act, the Federal Acquisition Regulation 
        described in section 6(a) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 405(a)) shall be revised to require 
        Federal officers and employees to comply with this section in 
        leasing buildings.
            (2) Consultation.--The members of the Federal Acquisition 
        Regulatory Council established under section 25 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 421)) shall 
        consult with the Federal Director and the Commercial Director 
        before promulgating regulations to carry out this subsection.

SEC. 436. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.

    (a) Establishment of Office.--Not later than 60 days after the date 
of enactment of this Act, the Administrator shall establish within the 
General Services Administration an Office of Federal High-Performance 
Green Buildings, and appoint an individual to serve as Federal Director 
in, a position in the career-reserved Senior Executive service, to--
            (1) establish and manage the Office of Federal High-
        Performance Green Buildings; and
            (2) carry out other duties as required under this subtitle.
    (b) Compensation.--The compensation of the Federal Director shall 
not exceed the maximum rate of basic pay for the Senior Executive 
Service under section 5382 of title 5, United States Code, including 
any applicable locality-based comparability payment that may be 
authorized under section 5304(h)(2)(C) of that title.
    (c) Duties.--The Federal Director shall--
            (1) coordinate the activities of the Office of Federal 
        High-Performance Green Buildings with the activities of the 
        Office of Commercial High-Performance Green Buildings, and the 
        Secretary, in accordance with section 305(a)(3)(D) of the 
        Energy Conservation and Production Act (42 U.S.C. 
        6834(a)(3)(D));
            (2) ensure full coordination of high-performance green 
        building information and activities within the General Services 
        Administration and all relevant agencies, including, at a 
        minimum--
                    (A) the Environmental Protection Agency;
                    (B) the Office of the Federal Environmental 
                Executive;
                    (C) the Office of Federal Procurement Policy;
                    (D) the Department of Energy;
                    (E) the Department of Health and Human Services;
                    (F) the Department of Defense;
                    (G) the Department of Transportation;
                    (H) the National Institute of Standards and 
                Technology; and
                    (I) the Office of Science and Technology Policy;
            (3) establish a senior-level Federal Green Building 
        Advisory Committee under section 474, which shall provide 
        advice and recommendations in accordance with that section and 
        subsection (d);
            (4) identify and every 5 years reassess improved or higher 
        rating standards recommended by the Advisory Committee;
            (5) ensure full coordination, dissemination of information 
        regarding, and promotion of the results of research and 
        development information relating to Federal high-performance 
        green building initiatives;
            (6) identify and develop Federal high-performance green 
        building standards for all types of Federal facilities, 
        consistent with the requirements of this subtitle and section 
        305(a)(3)(D) of the Energy Conservation and Production Act (42 
        U.S.C. 6834(a)(3)(D));
            (7) establish green practices that can be used throughout 
        the life of a Federal facility;
            (8) review and analyze current Federal budget practices and 
        life-cycle costing issues, and make recommendations to 
        Congress, in accordance with subsection (d); and
            (9) identify opportunities to demonstrate innovative and 
        emerging green building technologies and concepts.
    (d) Additional Duties.--The Federal Director, in consultation with 
the Commercial Director and the Advisory Committee, and consistent with 
the requirements of section 305(a)(3)(D) of the Energy Conservation and 
Production Act (42 U.S.C. 6834(a)(3)(D)) shall--
            (1) identify, review, and analyze current budget and 
        contracting practices that affect achievement of high-
        performance green buildings, including the identification of 
        barriers to high-performance green building life-cycle costing 
        and budgetary issues;
            (2) develop guidance and conduct training sessions with 
        budget specialists and contracting personnel from Federal 
        agencies and budget examiners to apply life-cycle cost criteria 
        to actual projects;
            (3) identify tools to aid life-cycle cost decisionmaking; 
        and
            (4) explore the feasibility of incorporating the benefits 
        of high-performance green buildings, such as security benefits, 
        into a cost-budget analysis to aid in life-cycle costing for 
        budget and decisionmaking processes.
    (e) Incentives.--Within 90 days after the date of enactment of this 
Act, the Federal Director shall identify incentives to encourage the 
expedited use of high-performance green buildings and related 
technology in the operations of the Federal Government, in accordance 
with the requirements of section 305(a)(3)(D) of the Energy 
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), including 
through--
            (1) the provision of recognition awards; and
            (2) the maximum feasible retention of financial savings in 
        the annual budgets of Federal agencies for use in reinvesting 
        in future high-performance green building initiatives.
    (f) Report.--Not later than 2 years after the date of enactment of 
this Act, and biennially thereafter, the Federal Director, in 
consultation with the Secretary, shall submit to Congress a report 
that--
            (1) describes the status of compliance with this subtitle, 
        the requirements of section 305(a)(3)(D) of the Energy 
        Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), and 
        other Federal high-performance green building initiatives in 
        effect as of the date of the report, including--
                    (A) the extent to which the programs are being 
                carried out in accordance with this subtitle and the 
                requirements of section 305(a)(3)(D) of that Act; and
                    (B) the status of funding requests and 
                appropriations for those programs;
            (2) identifies within the planning, budgeting, and 
        construction process all types of Federal facility procedures 
        that may affect the certification of new and existing Federal 
        facilities as high-performance green buildings under the 
        provisions of section 305(a)(3)(D) of that Act and the criteria 
        established in subsection (h);
            (3) identifies inconsistencies, as reported to the Advisory 
        Committee, in Federal law with respect to product acquisition 
        guidelines and high-performance product guidelines;
            (4) recommends language for uniform standards for use by 
        Federal agencies in environmentally responsible acquisition;
            (5) in coordination with the Office of Management and 
        Budget, reviews the budget process for capital programs with 
        respect to alternatives for--
                    (A) restructuring of budgets to require the use of 
                complete energy and environmental cost accounting;
                    (B) using operations expenditures in budget-related 
                decisions while simultaneously incorporating 
                productivity and health measures (as those measures can 
                be quantified by the Office of Federal High-Performance 
                Green Buildings, with the assistance of universities 
                and national laboratories);
                    (C) streamlining measures for permitting Federal 
                agencies to retain all identified savings accrued as a 
                result of the use of life-cycle costing for future 
                high-performance green building initiatives; and
                    (D) identifying short-term and long-term cost 
                savings that accrue from high-performance green 
                buildings, including those relating to health and 
                productivity;
            (6) identifies green, self-sustaining technologies to 
        address the operational needs of Federal facilities in times of 
        national security emergencies, natural disasters, or other dire 
        emergencies;
            (7) summarizes and highlights development, at the State and 
        local level, of high-performance green building initiatives, 
        including executive orders, policies, or laws adopted promoting 
        high-performance green building (including the status of 
        implementation of those initiatives); and
            (8) includes, for the 2-year period covered by the report, 
        recommendations to address each of the matters, and a plan for 
        implementation of each recommendation, described in paragraphs 
        (1) through (7).
    (g) Implementation.--The Office of Federal High-Performance Green 
Buildings shall carry out each plan for implementation of 
recommendations under subsection (f)(8).
    (h) Identification of Certification System.--
            (1) In general.--For the purpose of this section, not later 
        than 60 days after the date of enactment of this Act, the 
        Federal Director shall identify and shall provide to the 
        Secretary pursuant to section 305(a)(3)(D) of the Energy 
        Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), a 
        certification system that the Director determines to be the 
        most likely to encourage a comprehensive and environmentally-
        sound approach to certification of green buildings.
            (2) Basis.--The system identified under paragraph (1) shall 
        be based on--
                    (A) a study completed every 5 years and provided to 
                the Secretary pursuant to section 305(a)(3)(D) of that 
                Act, which shall be carried out by the Federal Director 
                to compare and evaluate standards;
                    (B) the ability and availability of assessors and 
                auditors to independently verify the criteria and 
                measurement of metrics at the scale necessary to 
                implement this subtitle;
                    (C) the ability of the applicable standard-setting 
                organization to collect and reflect public comment;
                    (D) the ability of the standard to be developed and 
                revised through a consensus-based process;
                    (E) an evaluation of the robustness of the criteria 
                for a high performance green building, which shall give 
                credit for promoting--
                            (i) efficient and sustainable use of water, 
                        energy, and other natural resources;
                            (ii) use of renewable energy sources;
                            (iii) improved indoor environmental quality 
                        through enhanced indoor air quality, thermal 
                        comfort, acoustics, day lighting, pollutant 
                        source control, and use of low-emission 
                        materials and building system controls;
                            (iv) reduced impacts from transportation 
                        through building location and site design that 
                        promote access by public transportation; and
                            (v) such other criteria as the Federal 
                        Director determines to be appropriate; and
                    (F) national recognition within the building 
                industry.

SEC. 437. FEDERAL GREEN BUILDING PERFORMANCE.

    (a) In General.--Not later than October 31 of each of the 2 fiscal 
years following the fiscal year in which this Act is enacted, and at 
such times thereafter as the Comptroller General of the United States 
determines to be appropriate, the Comptroller General of the United 
States shall, with respect to the fiscal years that have passed since 
the preceding report--
            (1) conduct an audit of the implementation of this 
        subtitle, section 305(a)(3)(D) of the Energy Conservation and 
        Production Act (42 U.S.C. 6834(a)(3)(D)), and section 435; and
            (2) submit to the Federal Director, the Advisory Committee, 
        the Administrator, and Congress a report describing the results 
        of the audit.
    (b) Contents.--An audit under subsection (a) shall include a 
review, with respect to the period covered by the report under 
subsection (a)(2), of--
            (1) budget, life-cycle costing, and contracting issues, 
        using best practices identified by the Comptroller General of 
        the United States and heads of other agencies in accordance 
        with section 436(d);
            (2) the level of coordination among the Federal Director, 
        the Office of Management and Budget, the Department of Energy, 
        and relevant agencies;
            (3) the performance of the Federal Director and other 
        agencies in carrying out the implementation plan;
            (4) the design stage of high-performance green building 
        measures;
            (5) high-performance building data that were collected and 
        reported to the Office; and
            (6) such other matters as the Comptroller General of the 
        United States determines to be appropriate.
    (c) Environmental Stewardship Scorecard.--The Federal Director 
shall consult with the Advisory Committee to enhance, and assist in the 
implementation of, the Office of Management and Budget government 
efficiency reports and scorecards under section 528 and the 
Environmental Stewardship Scorecard announced at the White House summit 
on Federal sustainable buildings in January 2006, to measure the 
implementation by each Federal agency of sustainable design and green 
building initiatives.

SEC. 438. STORM WATER RUNOFF REQUIREMENTS FOR FEDERAL DEVELOPMENT 
              PROJECTS.

    The sponsor of any development or redevelopment project involving a 
Federal facility with a footprint that exceeds 5,000 square feet shall 
use site planning, design, construction, and maintenance strategies for 
the property to maintain or restore, to the maximum extent technically 
feasible, the predevelopment hydrology of the property with regard to 
the temperature, rate, volume, and duration of flow.

SEC. 439. COST-EFFECTIVE TECHNOLOGY ACCELERATION PROGRAM.

    (a) Definition of Administrator.--In this section, the term 
``Administrator'' means the Administrator of General Services.
    (b) Establishment.--
            (1) In general.--The Administrator shall establish a 
        program to accelerate the use of more cost-effective 
        technologies and practices at GSA facilities.
            (2) Requirements.--The program established under this 
        subsection shall--
                    (A) ensure centralized responsibility for the 
                coordination of cost reduction-related recommendations, 
                practices, and activities of all relevant Federal 
                agencies;
                    (B) provide technical assistance and operational 
                guidance to applicable tenants to achieve the goal 
                identified in subsection (c)(2)(B)(ii);
                    (C) establish methods to track the success of 
                Federal departments and agencies with respect to that 
                goal; and
                    (D) be fully coordinated with and no less stringent 
                nor less energy-conserving or water-conserving than 
                required by other provisions of this Act and other 
                applicable law, including sections 321 through 324, 431 
                through 438, 461, 511 through 518, and 523 through 525 
                and amendments made by those sections.
    (c) Accelerated Use of Technologies.--
            (1) Review.--
                    (A) In general.--As part of the program under this 
                section, not later than 90 days after the date of 
                enactment of this Act, the Administrator shall conduct 
                a review of--
                            (i) current use of cost-effective lighting 
                        technologies and geothermal heat pumps in GSA 
                        facilities; and
                            (ii) the availability to managers of GSA 
                        facilities of cost-effective lighting 
                        technologies and geothermal heat pumps.
                    (B) Requirements.--The review under subparagraph 
                (A) shall--
                            (i) examine the use of cost-effective 
                        lighting technologies, geothermal heat pumps, 
                        and other cost-effective technologies and 
                        practices by Federal agencies in GSA 
                        facilities; and
                            (ii) as prepared in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency, identify cost-effective lighting 
                        technology and geothermal heat pump technology 
                        standards that could be used for all types of 
                        GSA facilities.
            (2) Replacement.--
                    (A) In general.--As part of the program under this 
                section, not later than 180 days after the date of 
                enactment of this Act, the Administrator shall 
                establish, using available appropriations and programs 
                implementing sections 432 and 525 (and amendments made 
                by those sections), a cost-effective lighting 
                technology and geothermal heat pump technology 
                acceleration program to achieve maximum feasible 
                replacement of existing lighting, heating, cooling 
                technologies with cost-effective lighting technologies 
                and geothermal heat pump technologies in each GSA 
                facility. Such program shall fully comply with the 
                requirements of sections 321 through 324, 431 through 
                438, 461, 511 through 518, and 523 through 525 and 
                amendments made by those sections and any other 
                provisions of law, which shall be applicable to the 
                extent that they are more stringent or would achieve 
                greater energy savings than required by this section.
                    (B) Acceleration plan timetable.--
                            (i) In general.--To implement the program 
                        established under subparagraph (A), not later 
                        than 1 year after the date of enactment of this 
                        Act, the Administrator shall establish a 
                        timetable of actions to comply with the 
                        requirements of this section and sections 431 
                        through 435, whichever achieves greater energy 
                        savings most expeditiously, including 
                        milestones for specific activities needed to 
                        replace existing lighting, heating, cooling 
                        technologies with cost-effective lighting 
                        technologies and geothermal heat pump 
                        technologies, to the maximum extent feasible 
                        (including at the maximum rate feasible), at 
                        each GSA facility.
                            (ii) Goal.--The goal of the timetable under 
                        clause (i) shall be to complete, using 
                        available appropriations and programs 
                        implementing sections 431 through 435 (and 
                        amendments made by those sections), maximum 
                        feasible replacement of existing lighting, 
                        heating, and cooling technologies with cost-
                        effective lighting technologies and geothermal 
                        heat pump technologies consistent with the 
                        requirements of this section and sections 431 
                        through 435, whichever achieves greater energy 
                        savings most expeditiously. Notwithstanding any 
                        provision of this section, such program shall 
                        fully comply with the requirements of the Act 
                        including sections 321 through 324, 431 through 
                        438, 461, 511 through 518, and 523 through 525 
                        and amendments made by those sections and other 
                        provisions of law, which shall be applicable to 
                        the extent that they are more stringent or 
                        would achieve greater energy or water savings 
                        than required by this section.
    (d) GSA Facility Technologies and Practices.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, and annually thereafter, the 
        Administrator shall--
                    (A) ensure that a manager responsible for 
                implementing section 432 and for accelerating the use 
                of cost-effective technologies and practices is 
                designated for each GSA facility; and
                    (B) submit to Congress a plan to comply with 
                section 432, this section, and other applicable 
                provisions of this Act and applicable law with respect 
                to energy and water conservation at GSA facilities.
            (2) Measures.--The plan shall implement measures required 
        by such other provisions of law in accordance with those 
        provisions, and shall implement the measures required by this 
        section to the maximum extent feasible (including at the 
        maximum rate feasible) using available appropriations and 
        programs implementing sections 431 through 435 and 525 (and 
        amendments made by those sections), by not later than the date 
        that is 5 years after the date of enactment of this Act.
            (3) Contents of plan.--The plan shall--
                    (A) with respect to cost-effective technologies and 
                practices--
                            (i) identify the specific activities needed 
                        to comply with sections 431 through 435;
                            (ii) identify the specific activities 
                        needed to achieve at least a 20-percent 
                        reduction in operational costs through the 
                        application of cost-effective technologies and 
                        practices from 2003 levels at GSA facilities by 
                        not later than 5 years after the date of 
                        enactment of this Act;
                            (iii) describe activities required and 
                        carried out to estimate the funds necessary to 
                        achieve the reduction described in clauses (i) 
                        and (ii);
                    (B) include an estimate of the funds necessary to 
                carry out this section;
                    (C) describe the status of the implementation of 
                cost-effective technologies and practices at GSA 
                facilities, including--
                            (i) the extent to which programs, including 
                        the program established under subsection (b), 
                        are being carried out in accordance with this 
                        subtitle; and
                            (ii) the status of funding requests and 
                        appropriations for those programs;
                    (D) identify within the planning, budgeting, and 
                construction processes, all types of GSA facility-
                related procedures that inhibit new and existing GSA 
                facilities from implementing cost-effective 
                technologies;
                    (E) recommend language for uniform standards for 
                use by Federal agencies in implementing cost-effective 
                technologies and practices;
                    (F) in coordination with the Office of Management 
                and Budget, review the budget process for capital 
                programs with respect to alternatives for--
                            (i) implementing measures that will assure 
                        that Federal agencies retain all identified 
                        savings accrued as a result of the use of cost-
                        effective technologies, consistent with section 
                        543(a)(1) of the National Energy Conservation 
                        Policy Act (42 U.S.C. 8253(a)(1), and other 
                        applicable law; and
                            (ii) identifying short- and long-term cost 
                        savings that accrue from the use of cost-
                        effective technologies and practices;
                    (G) with respect to cost-effective technologies and 
                practices, achieve substantial operational cost savings 
                through the application of the technologies; and
                    (H) include recommendations to address each of the 
                matters, and a plan for implementation of each 
                recommendation, described in subparagraphs (A) through 
                (G).
            (4) Administration.--Notwithstanding any provision of this 
        section, the program required under this section shall fully 
        comply with the requirements of sections 321 through 324, 431 
        through 438, 461, 511 through 518, and 523 through 525 and 
        amendments made by those sections, which shall be applicable to 
        the extent that they are more stringent or would achieve 
        greater energy or water savings than required by this section.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section, to 
remain available until expended.

SEC. 440. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out sections 434 
through 439 and 482 $4,000,000 for each of fiscal years 2008 through 
2012, to remain available until expended.

SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS.

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

                Subtitle D--Industrial Energy Efficiency

SEC. 451. INDUSTRIAL ENERGY EFFICIENCY.

    (a) In General.--Title III of the Energy Policy and Conservation 
Act (42 U.S.C. 6291 et seq.) is amended by inserting after part D the 
following:

                 ``PART E--INDUSTRIAL ENERGY EFFICIENCY

``SEC. 371. DEFINITIONS.

    ``In this part:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
            ``(2) Combined heat and power.--The term `combined heat and 
        power system' means a facility that--
                    ``(A) simultaneously and efficiently produces 
                useful thermal energy and electricity; and
                    ``(B) recovers not less than 60 percent of the 
                energy value in the fuel (on a higher-heating-value 
                basis) in the form of useful thermal energy and 
                electricity.
            ``(3) Net excess power.--The term `net excess power' means, 
        for any facility, recoverable waste energy recovered in the 
        form of electricity in quantities exceeding the total 
        consumption of electricity at the specific time of generation 
        on the site at which the facility is located.
            ``(4) Project.--The term `project' means a recoverable 
        waste energy project or a combined heat and power system 
        project.
            ``(5) Recoverable waste energy.--The term `recoverable 
        waste energy' means waste energy from which electricity or 
        useful thermal energy may be recovered through modification of 
        an existing facility or addition of a new facility.
            ``(6) Registry.--The term `Registry' means the Registry of 
        Recoverable Waste Energy Sources established under section 
        372(d).
            ``(7) Useful thermal energy.--The term `useful thermal 
        energy' means energy--
                    ``(A) in the form of direct heat, steam, hot water, 
                or other thermal form that is used in production and 
                beneficial measures for heating, cooling, humidity 
                control, process use, or other valid thermal end-use 
                energy requirements; and
                    ``(B) for which fuel or electricity would otherwise 
                be consumed.
            ``(8) Waste energy.--The term `waste energy' means--
                    ``(A) exhaust heat or flared gas 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 determine.
            ``(9) Other terms.--The terms `electric utility', 
        `nonregulated electric utility', `State regulated electric 
        utility', and other terms have the meanings given those terms 
        in title I of the Public Utility Regulatory Policies Act of 
        1978 (16 U.S.C. 2611 et seq.).

``SEC. 372. SURVEY AND REGISTRY.

    ``(a) Recoverable Waste Energy Inventory Program.--
            ``(1) In general.--The Administrator, in cooperation with 
        the Secretary and State energy offices, shall establish a 
        recoverable waste energy inventory program.
            ``(2) Survey.--The program shall include--
                    ``(A) an ongoing survey of all major industrial and 
                large commercial combustion sources in the United 
                States (as defined by the Administrator) and the sites 
                at which the sources are located; and
                    ``(B) a review of each source for the quantity and 
                quality of waste energy produced at the source.
    ``(b) Criteria.--
            ``(1) In general.--Not later than 270 days after the date 
        of enactment of the Energy Independence and Security Act of 
        2007, the Administrator shall publish a rule for establishing 
        criteria for including sites in the Registry.
            ``(2) Inclusions.--The criteria shall include--
                    ``(A) a requirement that, to be included in the 
                Registry, a project at the site shall be determined to 
                be economically feasible by virtue of offering a 
                payback of invested costs not later than 5 years after 
                the date of first full project operation (including 
                incentives offered under this part);
                    ``(B) standards to ensure that projects proposed 
                for inclusion in the Registry are not developed or used 
                for the primary purpose of making sales of excess 
                electric power under the regulatory provisions of this 
                part; and
                    ``(C) procedures for contesting the listing of any 
                source or site on the Registry by any State, utility, 
                or other interested person.
    ``(c) Technical Support.--On the request of the owner or operator 
of a source or site included in the Registry, the Secretary shall--
            ``(1) provide to owners or operators of combustion sources 
        technical support; and
            ``(2) offer partial funding (in an amount equal to not more 
        than \1/2\ of total costs) for feasibility studies to confirm 
        whether or not investment in recovery of waste energy or 
        combined heat and power at a source would offer a payback 
        period of 5 years or less.
    ``(d) Registry.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of the Energy Independence and 
                Security Act of 2007, the Administrator shall establish 
                a Registry of Recoverable Waste Energy Sources, and 
                sites on which the sources are located, that meet the 
                criteria established under subsection (b).
                    ``(B) Updates; availability.--The Administrator 
                shall--
                            ``(i) update the Registry on a regular 
                        basis; and
                            ``(ii) make the Registry available to the 
                        public on the website of the Environmental 
                        Protection Agency.
                    ``(C) Contesting listing.--Any State, electric 
                utility, or other interested person may contest the 
                listing of any source or site by submitting a petition 
                to the Administrator.
            ``(2) Contents.--
                    ``(A) In general.--The Administrator shall register 
                and include on the Registry all sites meeting the 
                criteria established under subsection (b).
                    ``(B) Quantity of recoverable waste energy.--The 
                Administrator shall--
                            ``(i) calculate the total quantities of 
                        potentially recoverable waste energy from 
                        sources at the sites, nationally and by State; 
                        and
                            ``(ii) make public--
                                    ``(I) the total quantities 
                                described in clause (i); and
                                    ``(II) information on the criteria 
                                pollutant and greenhouse gas emissions 
                                savings that might be achieved with 
                                recovery of the waste energy from all 
                                sources and sites listed on the 
                                Registry.
            ``(3) Availability of information.--
                    ``(A) In general.--The Administrator shall notify 
                owners or operators of recoverable waste energy sources 
                and sites listed on the Registry prior to publishing 
                the listing.
                    ``(B) Detailed quantitative information.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the owner or operator of a source 
                        at a site may elect to have detailed 
                        quantitative information concerning the site 
                        not made public by notifying the Administrator 
                        of the election.
                            ``(ii) Limited availability.--The 
                        information shall be made available to--
                                    ``(I) the applicable State energy 
                                office; and
                                    ``(II) any utility requested to 
                                support recovery of waste energy from 
                                the source pursuant to the incentives 
                                provided under section 374.
                            ``(iii) State totals.--Information 
                        concerning the site shall be included in the 
                        total quantity of recoverable waste energy for 
                        a State unless there are fewer than 3 sites in 
                        the State.
            ``(4) Removal of projects from registry.--
                    ``(A) In general.--Subject to subparagraph (B), as 
                a project achieves successful recovery of waste energy, 
                the Administrator shall--
                            ``(i) remove the related sites or sources 
                        from the Registry; and
                            ``(ii) designate the removed projects as 
                        eligible for incentives under section 374.
                    ``(B) Limitation.--No project shall be removed from 
                the Registry without the consent of the owner or 
                operator of the project if--
                            ``(i) the owner or operator has submitted a 
                        petition under section 374; and
                            ``(ii) the petition has not been acted on 
                        or denied.
            ``(5) Ineligibility of certain sources.--The Administrator 
        shall not list any source constructed after the date of the 
        enactment of the Energy Independence and Security Act of 2007 
        on the Registry if the Administrator determines that the 
        source--
                    ``(A) was developed for the primary purpose of 
                making sales of excess electric power under the 
                regulatory provisions of this part; or
                    ``(B) does not capture at least 60 percent of the 
                total energy value of the fuels used (on a higher-
                heating-value basis) in the form of useful thermal 
                energy, electricity, mechanical energy, chemical 
                output, or any combination thereof.
    ``(e) Self-Certification.--
            ``(1) In general.--Subject to any procedures that are 
        established by the Administrator, an owner, operator, or third-
        party developer of a recoverable waste energy project that 
        qualifies under standards established by the Administrator may 
        self-certify the sites or sources of the owner, operator, or 
        developer to the Administrator for inclusion in the Registry.
            ``(2) Review and approval.--To prevent a fraudulent 
        listing, a site or source shall be included on the Registry 
        only if the Administrator reviews and approves the self-
        certification.
    ``(f) New Facilities.--As a new energy-consuming industrial 
facility is developed after the date of enactment of the Energy 
Independence and Security Act of 2007, to the extent the facility may 
constitute a site with recoverable waste energy that may qualify for 
inclusion on the Registry, the Administrator may elect to include the 
facility on the Registry, at the request of the owner, operator, or 
developer of the facility, on a conditional basis with the site to be 
removed from the Registry if the development ceases or the site 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 for 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 report of a State under section 548(a) 
of the National Energy Conservation Policy Act (42 U.S.C. 8258(a)) 
shall include the results of the survey for the State under this 
section.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to--
            ``(1) the Administrator to create and maintain the Registry 
        and services authorized by this section, $1,000,000 for each of 
        fiscal years 2008 through 2012; and
            ``(2) the Secretary--
                    ``(A) to assist site or source owners and operators 
                in determining the feasibility of projects authorized 
                by this section, $2,000,000 for each of fiscal years 
                2008 through 2012; and
                    ``(B) to provide funding for State energy office 
                functions under this section, $5,000,000.

``SEC. 373. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish in the 
Department of Energy a waste energy recovery incentive grant program to 
provide incentive grants to--
            ``(1) owners and operators of projects that successfully 
        produce electricity or incremental useful thermal energy from 
        waste energy recovery;
            ``(2) utilities purchasing or distributing the electricity; 
        and
            ``(3) States that have achieved 80 percent or more of 
        recoverable waste heat recovery opportunities.
    ``(b) Grants to Projects and Utilities.--
            ``(1) In general.--The Secretary shall make grants under 
        this section--
                    ``(A) to the owners or operators of waste energy 
                recovery projects; and
                    ``(B) in the case of excess power purchased or 
                transmitted by a electric utility, to the utility.
            ``(2) Proof.--Grants may only be made under this section on 
        receipt of proof of waste energy recovery or excess electricity 
        generation, or both, from the project in a form prescribed by 
        the Secretary.
            ``(3) Excess electric energy.--
                    ``(A) In general.--In the case of waste energy 
                recovery, a grant under this section shall be made at 
                the rate of $10 per megawatt hour of documented 
                electricity produced from recoverable 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 production, beginning on or after the date of 
                enactment of the Energy Independence and Security Act 
                of 2007.
                    ``(B) Utilities.--If the project produces net 
                excess power and an electric utility purchases or 
                transmits the excess power, 50 percent of so much of 
                the grant as is attributable to the net excess power 
                shall be paid to the electric utility purchasing or 
                transporting the net excess power.
            ``(4) 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, a grant 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 the excess 
        thermal energy used for the different purpose.
    ``(c) Grants to States.--In the case of any State that has achieved 
80 percent or more of waste heat recovery opportunities identified by 
the Secretary under this part, the Administrator shall make a 1-time 
grant to the State in an amount of not more than $1,000 per megawatt of 
waste-heat capacity recovered (or a thermal equivalent) to support 
State-level programs to identify and achieve additional energy 
efficiency.
    ``(d) Eligibility.--The Secretary shall--
            ``(1) establish rules and guidelines to establish 
        eligibility for grants under subsection (b);
            ``(2) publicize the availability of the grant program known 
        to owners or operators of recoverable waste energy sources and 
        sites listed on the Registry; and
            ``(3) award grants under the program 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) Limitation.--The Secretary shall not award grants to any 
person for a combined heat and power project or a waste heat recovery 
project that qualifies for specific Federal tax incentives for combined 
heat and power or for waste heat recovery.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary--
            ``(1) to make grants to projects and utilities under 
        subsection (b)--
                    ``(A) $100,000,000 for fiscal year 2008 and 
                $200,000,000 for each of fiscal years 2009 through 
                2012; and
                    ``(B) such additional amounts for fiscal year 2008 
                and each fiscal year thereafter as may be necessary for 
                administration of the waste energy recovery incentive 
                grant program; and
            ``(2) to make grants to States under subsection (b), 
        $10,000,000 for each of fiscal years 2008 through 2012, to 
        remain available until expended.

``SEC. 374. ADDITIONAL INCENTIVES FOR RECOVERY, USE, AND PREVENTION OF 
              INDUSTRIAL WASTE ENERGY.

    ``(a) Consideration of Standard.--
            ``(1) In general.--Not later than 180 days after the 
        receipt by a State regulatory authority (with respect to each 
        electric utility for which the authority 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--
                    ``(A) provide public notice and conduct a hearing 
                respecting the standard established by subsection (b); 
                and
                    ``(B) on the basis of the hearing, consider and 
                make a determination whether or not it is appropriate 
                to implement the standard to carry out the purposes of 
                this part.
            ``(2) Relationship to state law.--For purposes of any 
        determination under paragraph (1) and any review of the 
        determination in any court, the purposes of this section 
        supplement otherwise applicable State law.
            ``(3) Nonadoption of standard.--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 standard described in paragraph (1), 
        pursuant to 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 that generates net excess power shall be eligible to 
benefit from at least 1 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 3 
        separate locations on the system of the utility for direct sale 
        by the owner or operator to third parties at those 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 the 
        power to up to 3 purchasers within a 3-mile radius of the 
        project, allowing the wires to use or cross public rights-of-
        way, without subjecting the project to regulation as a public 
        utility, and according the wires the same treatment for safety, 
        zoning, land use, and other legal privileges as apply or would 
        apply to the wires of the utility, except that--
                    ``(A) there shall be no grant of any power of 
                eminent domain to take or cross private property for 
                the wires; and
                    ``(B) the wires shall be physically segregated and 
                not interconnected with any portion of the system of 
                the utility, except on the customer side of the revenue 
                meter of the utility and in a manner that precludes any 
                possible export of the electricity onto the utility 
                system, or disruption of the system.
            ``(4) Agreed on alternatives.--The utility and the owner or 
        operator of the project may reach agreement on any alternate 
        arrangement and payments or rates associated with the 
        arrangement that is mutually satisfactory and in accord with 
        State law.
    ``(d) Rate Conditions and Criteria.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Per unit distribution costs.--The term `per 
                unit distribution costs' means (in kilowatt hours) the 
                quotient obtained by dividing--
                            ``(i) the depreciated book-value 
                        distribution system costs of a utility; by
                            ``(ii) the volume of utility electricity 
                        sales or transmission during the previous year 
                        at the distribution level.
                    ``(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 equal to the product obtained by 
                        multiplying--
                                    ``(I) the State-approved percentage 
                                rate of return for the utility for 
                                distribution system assets; by
                                    ``(II) the per unit distribution 
                                costs; and
                            ``(ii) in the case of a nonregulated 
                        utility, a per unit contribution to net 
                        revenues determined multiplying--
                                    ``(I) the percentage (but not less 
                                than 10 percent) obtained by dividing--
                                            ``(aa) the amount of any 
                                        net revenue payment or 
                                        contribution to the owners or 
                                        subscribers of the nonregulated 
                                        utility during the prior year; 
                                        by
                                            ``(bb) the gross revenues 
                                        of the utility during the prior 
                                        year to obtain a percentage; by
                                    ``(II) 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 the 
                retail rate of the utility.
            ``(2) Options.--The options described in paragraphs (1) and 
        (2) in subsection (c) shall be offered under purchase and 
        transport rate conditions that reflect the rate components 
        defined under paragraph (1) as applicable under the 
        circumstances described in paragraph (3).
            ``(3) Applicable rates.--
                    ``(A) Rates applicable to sale of net excess 
                power.--
                            ``(i) In general.--Sales made by a project 
                        owner or operator of a facility 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 the 
                        facility minus per unit distribution costs, 
                        that applies to the type of utility purchasing 
                        the power.
                            ``(ii) Voltages exceeding 25 kilovolts.--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, 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.--
                            ``(i) In general.--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 that shall equal the per 
                        unit distribution costs and per unit 
                        distribution margin, that applies to the type 
                        of utility transporting the power.
                            ``(ii) Voltages exceeding 25 kilovolts.--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, the transport rate 
                        shall further be increased by per unit 
                        transmission costs.
                            ``(iii) States with competitive retail 
                        markets for electricity.--In a State with a 
                        competitive retail market for electricity, the 
                        applicable transportation rate for similar 
                        transportation shall be applied in lieu of any 
                        rate calculated under this paragraph.
            ``(4) Limitations.--
                    ``(A) In general.--Any rate established for sale or 
                transportation under this section shall--
                            ``(i) be modified over time with changes in 
                        the underlying costs or rates of the electric 
                        utility; and
                            ``(ii) reflect the same time-sensitivity 
                        and billing periods as are established in the 
                        retail sales or transportation rates offered by 
                        the utility.
                    ``(B) Limitation.--No utility shall be required to 
                purchase or transport a quantity 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) Public notice and hearing.--
                    ``(A) In general.--The consideration referred to in 
                subsection (a) shall be made after public notice and 
                hearing.
                    ``(B) Administration.--The determination referred 
                to in subsection (a) shall be--
                            ``(i) in writing;
                            ``(ii) based on findings included in the 
                        determination and on the evidence presented at 
                        the hearing; and
                            ``(iii) available to the public.
            ``(2) Intervention by administrator.--The Administrator may 
        intervene as a matter of right in a proceeding conducted under 
        this section--
                    ``(A) to calculate--
                            ``(i) the energy and emissions likely to be 
                        saved by electing to adopt 1 or more of the 
                        options; and
                            ``(ii) the costs and benefits to ratepayers 
                        and the utility; and
                    ``(B) to advocate for the waste-energy recovery 
                opportunity.
            ``(3) Procedures.--
                    ``(A) In general.--Except as otherwise provided in 
                paragraphs (1) and (2), the procedures for the 
                consideration and determination referred to in 
                subsection (a) shall be the procedures established by 
                the State regulatory authority or the nonregulated 
                electric utility.
                    ``(B) Multiple projects.--If there is more than 1 
                project seeking consideration simultaneously in 
                connection with the same utility, the proceeding may 
                encompass all such projects, if full attention is paid 
                to individual circumstances and merits and an 
                individual judgment is reached with respect to each 
                project.
    ``(f) Implementation.--
            ``(1) In general.--The State regulatory authority (with 
        respect to each electric utility for which the authority 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) Nonimplementation of standard.--
                    ``(A) In general.--If a State regulatory authority 
                (with respect to each electric utility for which the 
                authority has ratemaking authority) or nonregulated 
                electric utility declines to implement any standard 
                established by this section, the authority or 
                nonregulated electric utility shall state in writing 
                the reasons for declining to implement the standard.
                    ``(B) Availability to public.--The statement of 
                reasons shall be available to the public.
                    ``(C) Annual report.--The Administrator shall 
                include in an annual report submitted to Congress a 
                description of the lost opportunities for waste-heat 
                recovery from the project described in subparagraph 
                (A), specifically identifying the utility and stating 
                the quantity of lost energy and emissions savings 
                calculated.
                    ``(D) New petition.--If a State regulatory 
                authority (with respect to each electric utility for 
                which the authority 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 the project at any time after the date 
                that is 2 years after the date on which the State 
                regulatory authority or nonregulated utility declined 
                to implement the standard.

``SEC. 375. CLEAN ENERGY APPLICATION CENTERS.

    ``(a) Renaming.--
            ``(1) In general.--The Combined Heat and Power Application 
        Centers of the Department of Energy are redesignated as Clean 
        Energy Application Centers.
            ``(2) References.--Any reference in any law, rule, 
        regulation, or publication to a Combined Heat and Power 
        Application Center shall be treated as a reference to a Clean 
        Energy Application Center.
    ``(b) Relocation.--
            ``(1) In general.--In order to better coordinate efforts 
        with the separate Industrial Assessment Centers and to ensure 
        that the energy efficiency and, when applicable, the renewable 
        nature of deploying mature clean energy technology is fully 
        accounted for, the Secretary shall relocate the administration 
        of the Clean Energy Application Centers to the Office of Energy 
        Efficiency and Renewable Energy within the Department of 
        Energy.
            ``(2) Office of electricity delivery and energy 
        reliability.--The Office of Electricity Delivery and Energy 
        Reliability shall--
                    ``(A) continue to perform work on the role of 
                technology described in paragraph (1) in support of the 
                grid and the reliability and security of the 
                technology; and
                    ``(B) shall assist the Clean Energy Application 
                Centers in the work of the Centers with regard to the 
                grid and with electric utilities.
    ``(c) Grants.--
            ``(1) In general.--The Secretary shall make grants to 
        universities, research centers, and other appropriate 
        institutions to ensure 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 the Energy Independence and 
        Security Act of 2007):
                    ``(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 subsection, the Secretary shall ensure that 
        sufficient goals are established and met by each Center 
        throughout the program duration concerning outreach and 
        technology deployment.
    ``(d) Activities.--
            ``(1) In general.--Each Clean Energy Application Center 
        shall--
                    ``(A) operate a program to encourage deployment of 
                clean energy technologies through education and 
                outreach to building and industrial professionals; and 
                other individuals and organizations with an interest in 
                efficient energy use; and
                    ``(B) provide project specific support to building 
                and industrial professionals through assessments and 
                advisory activities.
            ``(2) Types of activities.--Funds made available under this 
        section may be used--
                    ``(A) to develop and distribute informational 
                materials on clean energy technologies, including 
                continuation of the 8 websites in existence on the date 
                of enactment of the Energy Independence and Security 
                Act of 2007;
                    ``(B) to develop and conduct 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;
                    ``(C) to provide or coordinate onsite assessments 
                for sites and enterprises that may consider deployment 
                of clean energy technology;
                    ``(D) to perform market research to identify high 
                profile candidates for clean energy deployment;
                    ``(E) to provide consulting support to sites 
                considering deployment of clean energy technologies;
                    ``(F) to assist organizations developing clean 
                energy technologies to overcome barriers to deployment; 
                and
                    ``(G) to assist companies and organizations with 
                performance evaluations of any clean energy technology 
                implemented.
    ``(e) Duration.--
            ``(1) In general.--A grant awarded under this section shall 
        be for a period of 5 years
            ``(2) Annual evaluations.--Each grant shall be evaluated 
        annually for the continuation of the grant based on the 
        activities and results of the grant.
    ``(f) Authorization.--There is authorized to be appropriated to 
carry out this section $10,000,000 for each of fiscal years 2008 
through 2012.''.
    (b) Table of Contents.--The table of contents of the Energy Policy 
and Conservation Act (42 U.S.C. prec. 6201) is amended by inserting 
after the items relating to part D of title III the following:

                 ``Part E--Industrial Energy Efficiency

``Sec. 371. Definitions.
``Sec. 372. Survey and Registry.
``Sec. 373.Waste energy recovery incentive grant program.
``Sec. 374. Additional incentives for recovery, utilization and 
                            prevention of industrial waste energy.
``Sec. 375. Clean Energy Application Centers.''.

SEC. 452. ENERGY-INTENSIVE INDUSTRIES PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) an energy-intensive industry;
                    (B) a national trade association representing an 
                energy-intensive industry; or
                    (C) a person acting on behalf of 1 or more energy-
                intensive industries or sectors, as determined by the 
                Secretary.
            (2) Energy-intensive industry.--The term ``energy-intensive 
        industry'' means an industry that uses significant quantities 
        of energy as part of its primary economic activities, 
        including--
                    (A) information technology, including data centers 
                containing electrical equipment used in processing, 
                storing, and transmitting digital information;
                    (B) consumer product manufacturing;
                    (C) food processing;
                    (D) materials manufacturers, including--
                            (i) aluminum;
                            (ii) chemicals;
                            (iii) forest and paper products;
                            (iv) metal casting;
                            (v) glass;
                            (vi) petroleum refining;
                            (vii) mining; and
                            (viii) steel;
                    (E) other energy-intensive industries, as 
                determined by the Secretary.
            (3) Feedstock.--The term ``feedstock'' means the raw 
        material supplied for use in manufacturing, chemical, and 
        biological processes.
            (4) Partnership.--The term ``partnership'' means an energy 
        efficiency partnership established under subsection (c)(1)(A).
            (5) Program.--The term ``program'' means the energy-
        intensive industries program established under subsection (b).
    (b) Establishment of Program.--The Secretary shall establish a 
program under which the Secretary, in cooperation with energy-intensive 
industries and national industry trade associations representing the 
energy-intensive industries, shall support, research, develop, and 
promote the use of new materials processes, technologies, and 
techniques to optimize energy efficiency and the economic 
competitiveness of the United States' industrial and commercial 
sectors.
    (c) Partnerships.--
            (1) In general.--As part of the program, the Secretary 
        shall establish energy efficiency partnerships between the 
        Secretary and eligible entities to conduct research on, 
        develop, and demonstrate new processes, technologies, and 
        operating practices and techniques to significantly improve the 
        energy efficiency of equipment and processes used by energy-
        intensive industries, including the conduct of activities to--
                    (A) increase the energy efficiency of industrial 
                processes and facilities;
                    (B) research, develop, and demonstrate advanced 
                technologies capable of energy intensity reductions and 
                increased environmental performance; and
                    (C) promote the use of the processes, technologies, 
                and techniques described in subparagraphs (A) and (B).
            (2) Eligible activities.--Partnership activities eligible 
        for funding under this subsection include--
                    (A) feedstock and recycling research, development, 
                and demonstration activities to identify and promote--
                            (i) opportunities for meeting industry 
                        feedstock requirements with more energy 
                        efficient and flexible sources of feedstock or 
                        energy supply;
                            (ii) strategies to develop and deploy 
                        technologies that improve the quality and 
                        quantity of feedstocks recovered from process 
                        and waste streams; and
                            (iii) other methods using recycling, reuse, 
                        and improved industrial materials;
                    (B) research to develop and demonstrate 
                technologies and processes that utilize alternative 
                energy sources to supply heat, power, and new 
                feedstocks for energy-intensive industries;
                    (C) research to achieve energy efficiency in steam, 
                power, control system, and process heat technologies, 
                and in other manufacturing processes; and
                    (D) industrial and commercial energy efficiency and 
                sustainability assessments to--
                            (i) assist individual industrial and 
                        commercial sectors in developing tools, 
                        techniques, and methodologies to assess--
                                    (I) the unique processes and 
                                facilities of the sectors;
                                    (II) the energy utilization 
                                requirements of the sectors; and
                                    (III) the application of new, more 
                                energy efficient technologies; and
                            (ii) conduct energy savings assessments;
                    (E) the incorporation of technologies and 
                innovations that would significantly improve the energy 
                efficiency and utilization of energy-intensive 
                commercial applications; and
                    (F) any other activities that the Secretary 
                determines to be appropriate.
            (3) Proposals.--
                    (A) In general.--To be eligible for funding under 
                this subsection, a partnership shall submit to the 
                Secretary a proposal that describes the proposed 
                research, development, or demonstration activity to be 
                conducted by the partnership.
                    (B) Review.--After reviewing the scientific, 
                technical, and commercial merit of a proposals 
                submitted under subparagraph (A), the Secretary shall 
                approve or disapprove the proposal.
                    (C) Competitive awards.--The provision of funding 
                under this subsection shall be on a competitive basis.
            (4) Cost-sharing requirement.--In carrying out this 
        section, the Secretary shall require cost sharing in accordance 
        with section 988 of the Energy Policy Act of 2005 (42 U.S.C. 
        16352).
    (d) Grants.--The Secretary may award competitive grants for 
innovative technology research, development and demonstrations to 
universities, individual inventors, and small companies, based on 
energy savings potential, commercial viability, and technical merit.
    (e) Institution of Higher Education-Based Industrial Research and 
Assessment Centers.--The Secretary shall provide funding to institution 
of higher education-based industrial research and assessment centers, 
whose purpose shall be--
            (1) to identify opportunities for optimizing energy 
        efficiency and environmental performance;
            (2) to promote applications of emerging concepts and 
        technologies in small and medium-sized manufacturers;
            (3) to promote research and development for the use of 
        alternative energy sources to supply heat, power, and new 
        feedstocks for energy-intensive industries;
            (4) to coordinate with appropriate Federal and State 
        research offices, and provide a clearinghouse for industrial 
        process and energy efficiency technical assistance resources; 
        and
            (5) to coordinate with State-accredited technical training 
        centers and community colleges, while ensuring appropriate 
        services to all regions of the United States.
    (f) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary to carry out this section--
                    (A) $184,000,000 for fiscal year 2008;
                    (B) $190,000,000 for fiscal year 2009;
                    (C) $196,000,000 for fiscal year 2010;
                    (D) $202,000,000 for fiscal year 2011;
                    (E) $208,000,000 for fiscal year 2012; and
                    (F) such sums as are necessary for fiscal year 2013 
                and each fiscal year thereafter.
            (2) Partnership activities.--Of the amounts made available 
        under paragraph (1), not less than 50 percent shall be used to 
        pay the Federal share of partnership activities under 
        subsection (c).
            (3) Coordination and nonduplication.--The Secretary shall 
        coordinate efforts under this section with other programs of 
        the Department and other Federal agencies to avoid duplication 
        of effort.

SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

    (a) Definitions.--In this section:
            (1) Data center.--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 uses 
                environmental control equipment to maintain the proper 
                conditions for the operation of electronic equipment.
            (2) Data center operator.--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.
    (b) Voluntary National Information Program.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary and the Administrator of 
        the Environmental Protection Agency shall, 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 the program.
            (2) Requirements.--The program described in paragraph (1) 
        shall--
                    (A) address data center efficiency holistically, 
                reflecting the total energy consumption of data centers 
                as whole systems, including both equipment and 
                facilities;
                    (B) consider prior work and studies undertaken in 
                this area, including by the Environmental Protection 
                Agency and the Department of Energy;
                    (C) consistent with the objectives described in 
                paragraph (1), determine the type of data center and 
                data center equipment and facilities to be covered 
                under the program;
                    (D) produce specifications, measurements, best 
                practices, and benchmarks that will enable data center 
                operators to make more informed decisions about the 
                energy efficiency and costs of data centers, and that 
                take into account--
                            (i) the performance and use of servers, 
                        data storage devices, and other information 
                        technology equipment;
                            (ii) the efficiency of heating, 
                        ventilation, and air conditioning, cooling, and 
                        power conditioning systems, provided that no 
                        modification shall be required of a standard 
                        then in effect under the Energy Policy and 
                        Conservation Act (42 U.S.C. 6201 et seq.) for 
                        any covered heating, ventilation, air-
                        conditioning, cooling or power-conditioning 
                        product;
                            (iii) energy savings from the adoption of 
                        software and data management techniques; and
                            (iv) other factors determined by the 
                        organization described in subsection (c);
                    (E) allow for creation of separate specifications, 
                measurements, and benchmarks based on data center size 
                and function, as well as other appropriate 
                characteristics;
                    (F) advance the design and implementation of 
                efficiency technologies to the maximum extent 
                economically practical;
                    (G) 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; and
                    (H) publish the information described in 
                subparagraph (G), 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.
            (3) Procedures.--The program described in paragraph (1) 
        shall be developed in consultation with and coordinated by the 
        organization described in subsection (c) according to commonly 
        accepted procedures for the development of specifications, 
        measurements, and benchmarks.
    (c) Data Center Efficiency Organization.--
            (1) In general.--After the establishment of the program 
        described in subsection (b), the Secretary and the 
        Administrator shall jointly designate an information technology 
        industry organization to consult with and to coordinate the 
        program.
            (2) Requirements.--The organization designated under 
        paragraph (1), whether preexisting or formed specifically for 
        the purposes of subsection (b), shall--
                    (A) 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;
                    (B) 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);
                    (C) follow commonly accepted procedures for the 
                development of specifications and accredited standards 
                development processes;
                    (D) have a mission to develop and promote energy 
                efficiency for data centers and information technology; 
                and
                    (E) have the primary responsibility to consult in 
                the development and publishing of the information, 
                measurements, and benchmarks described in subsection 
                (b) and transmission of the information to the 
                Secretary and the Administrator for consideration under 
                subsection (d).
    (d) Measurements and Specifications.--
            (1) In general.--The Secretary and the Administrator shall 
        consider the specifications, measurements, and benchmarks 
        described in subsection (b) for use by the Federal Energy 
        Management Program, the Energy Star Program, and other 
        efficiency programs of the Department of Energy and 
        Environmental Protection Agency, respectively.
            (2) Rejections.--If the Secretary or the Administrator 
        rejects 1 or more specifications, measurements, or benchmarks 
        described in subsection (b), the rejection shall be made 
        consistent with section 12(d) of the National Technology 
        Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 
        Public Law 104-113).
            (3) Determination of impracticability.--A determination 
        that a specification, measurement, or benchmark described in 
        subsection (b) is impractical may include consideration of the 
        maximum efficiency that is technologically feasible and 
        economically justified.
    (e) Monitoring.--The Secretary and the Administrator shall--
            (1) monitor and evaluate the efforts to develop the program 
        described in subsection (b); and
            (2) not later than 3 years after the date of enactment of 
        this Act, make a determination as to whether the program is 
        consistent with the objectives of subsection (b).
    (f) Alternative System.--If the Secretary and the Administrator 
make a determination under subsection (e) that a voluntary national 
information program for data centers consistent with the objectives of 
subsection (b) has not been developed, the Secretary and the 
Administrator shall, after consultation with the National Institute of 
Standards and Technology and not later than 2 years after the 
determination, develop and implement the program under subsection (b).
    (g) 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 section or 
the program established under this section.

              Subtitle E--Healthy High-Performance Schools

SEC. 461. HEALTHY HIGH-PERFORMANCE SCHOOLS.

    (a) Amendment.--The Toxic Substances Control Act (15 U.S.C. 2601 et 
seq.) is amended by adding at the end the following new title:

              ``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS

``SEC. 501. GRANTS FOR HEALTHY SCHOOL ENVIRONMENTS.

    ``(a) In General.--The Administrator, in consultation with the 
Secretary of Education, may provide grants to States for use in--
            ``(1) providing technical assistance for programs of the 
        Environmental Protection Agency (including the Tools for 
        Schools Program and the Healthy School Environmental Assessment 
        Tool) to schools for use in addressing environmental issues; 
        and
            ``(2) development and implementation of State school 
        environmental health programs that include--
                    ``(A) standards for school building design, 
                construction, and renovation; and
                    ``(B) identification of ongoing school building 
                environmental problems, including contaminants, 
                hazardous substances, and pollutant emissions, in the 
                State and recommended solutions to address those 
                problems, including assessment of information on the 
                exposure of children to environmental hazards in school 
                facilities.
    ``(b) Sunset.--The authority of the Administrator to carry out this 
section shall expire 5 years after the date of enactment of this 
section.

``SEC. 502. MODEL GUIDELINES FOR SITING OF SCHOOL FACILITIES.

    ``Not later than 18 months after the date of enactment of this 
section, the Administrator, in consultation with the Secretary of 
Education and the Secretary of Health and Human Services, shall issue 
voluntary school site selection guidelines that account for--
            ``(1) the special vulnerability of children to hazardous 
        substances or pollution exposures in any case in which the 
        potential for contamination at a potential school site exists;
            ``(2) modes of transportation available to students and 
        staff;
            ``(3) the efficient use of energy; and
            ``(4) the potential use of a school at the site as an 
        emergency shelter.

``SEC. 503. PUBLIC OUTREACH.

    ``(a) Reports.--The Administrator shall publish and submit to 
Congress an annual report on all activities carried out under this 
title, until the expiration of authority described in section 501(b).
    ``(b) Public Outreach.--The Federal Director appointed under 
section 436(a) of the Energy Independence and Security Act of 2007 (in 
this title referred to as the `Federal Director') shall ensure, to the 
maximum extent practicable, that the public clearinghouse established 
under section 423(1) of the Energy Independence and Security Act of 
2007 receives and makes available information on the exposure of 
children to environmental hazards in school facilities, as provided by 
the Administrator.

``SEC. 504. ENVIRONMENTAL HEALTH PROGRAM.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of this section, the Administrator, in consultation with the 
Secretary of Education, the Secretary of Health and Human Services, and 
other relevant agencies, shall issue voluntary guidelines for use by 
the State in developing and implementing an environmental health 
program for schools that--
            ``(1) takes into account the status and findings of Federal 
        initiatives established under this title or subtitle C of title 
        IV of the Energy Independence and Security Act of 2007 and 
        other relevant Federal law with respect to school facilities, 
        including relevant updates on trends in the field, such as the 
        impact of school facility environments on student and staff--
                    ``(A) health, safety, and productivity; and
                    ``(B) disabilities or special needs;
            ``(2) takes into account studies using relevant tools 
        identified or developed in accordance with section 492 of the 
        Energy Independence and Security Act of 2007;
            ``(3) takes into account, with respect to school 
        facilities, each of--
                    ``(A) environmental problems, contaminants, 
                hazardous substances, and pollutant emissions, 
                including--
                            ``(i) lead from drinking water;
                            ``(ii) lead from materials and products;
                            ``(iii) asbestos;
                            ``(iv) radon;
                            ``(v) the presence of elemental mercury 
                        releases from products and containers;
                            ``(vi) pollutant emissions from materials 
                        and products; and
                            ``(vii) any other environmental problem, 
                        contaminant, hazardous substance, or pollutant 
                        emission that present or may present a risk to 
                        the health of occupants of the school 
                        facilities or environment;
                    ``(B) natural day lighting;
                    ``(C) ventilation choices and technologies;
                    ``(D) heating and cooling choices and technologies;
                    ``(E) moisture control and mold;
                    ``(F) maintenance, cleaning, and pest control 
                activities;
                    ``(G) acoustics; and
                    ``(H) other issues relating to the health, comfort, 
                productivity, and performance of occupants of the 
                school facilities;
            ``(4) provides technical assistance on siting, design, 
        management, and operation of school facilities, including 
        facilities used by students with disabilities or special needs;
            ``(5) collaborates with federally funded pediatric 
        environmental health centers to assist in on-site school 
        environmental investigations;
            ``(6) assists States and the public in better understanding 
        and improving the environmental health of children; and
            ``(7) takes into account the special vulnerability of 
        children in low-income and minority communities to exposures 
        from contaminants, hazardous substances, and pollutant 
        emissions.
    ``(b) Public Outreach.--The Federal Director and Commercial 
Director shall ensure, to the maximum extent practicable, that the 
public clearinghouse established under section 423 of the Energy 
Independence and Security Act of 2007 receives and makes available--
            ``(1) information from the Administrator that is contained 
        in the report described in section 503(a); and
            ``(2) information on the exposure of children to 
        environmental hazards in school facilities, as provided by the 
        Administrator.

``SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$1,000,000 for fiscal year 2009, and $1,500,000 for each of fiscal 
years 2010 through 2013, to remain available until expended.''.
    (b) Table of Contents Amendment.--The table of contents for the 
Toxic Substances Control Act (15 U.S.C. 2601 et seq.) is amended by 
adding at the end the following:

              ``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS

``Sec. 501. Grants for healthy school environments.
``Sec. 502. Model guidelines for siting of school facilities.
``Sec. 503. Public outreach.
``Sec. 504. Environmental health program.
``Sec. 505. Authorization of appropriations.''.

SEC. 462. STUDY ON INDOOR ENVIRONMENTAL QUALITY IN SCHOOLS.

    (a) In General.--The Administrator of the Environmental Protection 
Agency shall enter into an arrangement with the Secretary of Education 
and the Secretary of Energy to conduct a detailed study of how 
sustainable building features such as energy efficiency affect multiple 
perceived indoor environmental quality stressors on students in K-12 
schools.
    (b) Contents.--The study shall--
            (1) investigate the combined effect building stressors such 
        as heating, cooling, humidity, lighting, and acoustics have on 
        building occupants' health, productivity, and overall well-
        being;
            (2) identify how sustainable building features, such as 
        energy efficiency, are influencing these human outcomes singly 
        and in concert; and
            (3) ensure that the impacts of the indoor environmental 
        quality are evaluated as a whole.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated for carrying out this section $200,000 for each of the 
fiscal years 2008 through 2012.

                   Subtitle F--Institutional Entities

SEC. 471. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND LOANS FOR 
              INSTITUTIONS.

    Part G of title III of the Energy Policy and Conservation Act is 
amended by inserting after section 399 (42 U.S.C. 6371h) the following:

``SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND LOANS FOR 
              INSTITUTIONS.

    ``(a) Definitions.--In this section:
            ``(1) Combined heat and power.--The term `combined heat and 
        power' means the generation of electric energy and heat in a 
        single, integrated system, with an overall thermal efficiency 
        of 60 percent or greater on a higher-heating-value basis.
            ``(2) District energy systems.--The term `district energy 
        systems' means systems providing thermal energy from a 
        renewable energy source, thermal energy source, or highly 
        efficient technology to more than 1 building or fixed energy-
        consuming use from 1 or more thermal-energy production 
        facilities through pipes or other means to provide space 
        heating, space conditioning, hot water, steam, compression, 
        process energy, or other end uses for that energy.
            ``(3) Energy sustainability.--The term `energy 
        sustainability' includes using a renewable energy source, 
        thermal energy source, or a highly efficient technology for 
        transportation, electricity generation, heating, cooling, 
        lighting, or other energy services in fixed installations.
            ``(4) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 
        15801).
            ``(5) Institutional entity.--The term `institutional 
        entity' means an institution of higher education, a public 
        school district, a local government, a municipal utility, or a 
        designee of 1 of those entities.
            ``(6) Renewable energy source.--The term `renewable energy 
        source' has the meaning given the term in section 609 of the 
        Public Utility Regulatory Policies Act of 1978 (7 U.S.C. 918c).
            ``(7) Sustainable energy infrastructure.--The term 
        `sustainable energy infrastructure' means--
                    ``(A) facilities for production of energy from 
                renewable energy sources, thermal energy sources, or 
                highly efficient technologies, including combined heat 
                and power or other waste heat use; and
                    ``(B) district energy systems.
            ``(8) Thermal energy source.--The term `thermal energy 
        source' means--
                    ``(A) a natural source of cooling or heating from 
                lake or ocean water; and
                    ``(B) recovery of useful energy that would 
                otherwise be wasted from ongoing energy uses.
    ``(b) Technical Assistance Grants.--
            ``(1) In general.--Subject to the availability of 
        appropriated funds, the Secretary shall implement a program of 
        information dissemination and technical assistance to 
        institutional entities to assist the institutional entities in 
        identifying, evaluating, designing, and implementing 
        sustainable energy infrastructure projects in energy 
        sustainability.
            ``(2) Assistance.--The Secretary shall support 
        institutional entities in--
                    ``(A) identification of opportunities for 
                sustainable energy infrastructure;
                    ``(B) understanding the technical and economic 
                characteristics of sustainable energy infrastructure;
                    ``(C) utility interconnection and negotiation of 
                power and fuel contracts;
                    ``(D) understanding financing alternatives;
                    ``(E) permitting and siting issues;
                    ``(F) obtaining case studies of similar and 
                successful sustainable energy infrastructure systems; 
                and
                    ``(G) reviewing and obtaining computer software for 
                assessment, design, and operation and maintenance of 
                sustainable energy infrastructure systems.
            ``(3) Eligible costs for technical assistance grants.--On 
        receipt of an application of an institutional entity, the 
        Secretary may make grants to the institutional entity to fund a 
        portion of the cost of--
                    ``(A) feasibility studies to assess the potential 
                for implementation or improvement of sustainable energy 
                infrastructure;
                    ``(B) analysis and implementation of strategies to 
                overcome barriers to project implementation, including 
                financial, contracting, siting, and permitting 
                barriers; and
                    ``(C) detailed engineering of sustainable energy 
                infrastructure.
    ``(c) Grants for Energy Efficiency Improvement and Energy 
Sustainability.--
            ``(1) Grants.--
                    ``(A) In general.--The Secretary shall award grants 
                to institutional entities to carry out projects to 
                improve energy efficiency on the grounds and facilities 
                of the institutional entity.
                    ``(B) Requirement.--To the extent that applications 
                have been submitted, grants under subparagraph (A) 
                shall include not less than 1 grant each year to an 
                institution of higher education in each State.
                    ``(C) Minimum funding.--Not less than 50 percent of 
                the total funding for all grants under this subsection 
                shall be awarded in grants to institutions of higher 
                education.
            ``(2) Criteria.--Evaluation of projects for grant funding 
        shall be based on criteria established by the Secretary, 
        including criteria relating to--
                    ``(A) improvement in energy efficiency;
                    ``(B) reduction in greenhouse gas emissions and 
                other air emissions, including criteria air pollutants 
                and ozone-depleting refrigerants;
                    ``(C) increased use of renewable energy sources or 
                thermal energy sources;
                    ``(D) reduction in consumption of fossil fuels;
                    ``(E) active student participation; and
                    ``(F) need for funding assistance.
            ``(3) Condition.--As a condition of receiving a grant under 
        this subsection, an institutional entity shall agree--
                    ``(A) to implement a public awareness campaign 
                concerning the project in the community in which the 
                institutional entity is located; and
                    ``(B) to submit to the Secretary, and make 
                available to the public, reports on any efficiency 
                improvements, energy cost savings, and environmental 
                benefits achieved as part of a project carried out 
                under paragraph (1), including quantification of the 
                results relative to the criteria described under 
                paragraph (2).
    ``(d) Grants for Innovation in Energy Sustainability.--
            ``(1) Grants.--
                    ``(A) In general.--The Secretary shall award grants 
                to institutional entities to engage in innovative 
                energy sustainability projects.
                    ``(B) Requirement.--To the extent that applications 
                have been submitted, grants under subparagraph (A) 
                shall include not less than 2 grants each year to 
                institutions of higher education in each State.
                    ``(C) Minimum funding.--Not less than 50 percent of 
                the total funding for all grants under this subsection 
                shall be awarded in grants to institutions of higher 
                education.
            ``(2) Innovation projects.--An innovation project carried 
        out with a grant under this subsection shall--
                    ``(A) involve--
                            ``(i) an innovative technology that is not 
                        yet commercially available; or
                            ``(ii) available technology in an 
                        innovative application that maximizes energy 
                        efficiency and sustainability;
                    ``(B) have the greatest potential for testing or 
                demonstrating new technologies or processes; and
                    ``(C) to the extent undertaken by an institution of 
                higher education, ensure active student participation 
                in the project, including the planning, implementation, 
                evaluation, and other phases of projects.
            ``(3) Condition.--As a condition of receiving a grant under 
        this subsection, an institutional entity shall agree to submit 
        to the Secretary, and make available to the public, reports 
        that describe the results of the projects carried out using 
        grant funds.
    ``(e) Allocation to Institutions of Higher Education With Small 
Endowments.--
            ``(1) In general.--Of the total amount of grants provided 
        to institutions of higher education for a fiscal year under 
        this section, the Secretary shall provide not less than 50 
        percent of the amount to institutions of higher education that 
        have an endowment of not more than $100,000,000.
            ``(2) Requirement.--To the extent that applications have 
        been submitted, at least 50 percent of the amount described in 
        paragraph (1) shall be provided to institutions of higher 
        education that have an endowment of not more than $50,000,000.
    ``(f) Grant Amounts.--
            ``(1) In general.--If the Secretary determines that cost 
        sharing is appropriate, the amounts of grants provided under 
        this section shall be limited as provided in this subsection.
            ``(2) Technical assistance grants.--In the case of grants 
        for technical assistance under subsection (b), grant funds 
        shall be available for not more than--
                    ``(A) an amount equal to the lesser of--
                            ``(i) $50,000; or
                            ``(ii) 75 percent of the cost of 
                        feasibility studies to assess the potential for 
                        implementation or improvement of sustainable 
                        energy infrastructure;
                    ``(B) an amount equal to the lesser of--
                            ``(i) $90,000; or
                            ``(ii) 60 percent of the cost of guidance 
                        on overcoming barriers to project 
                        implementation, including financial, 
                        contracting, siting, and permitting barriers; 
                        and
                    ``(C) an amount equal to the lesser of--
                            ``(i) $250,000; or
                            ``(ii) 40 percent of the cost of detailed 
                        engineering and design of sustainable energy 
                        infrastructure.
            ``(3) Grants for efficiency improvement and energy 
        sustainability.--In the case of grants for efficiency 
        improvement and energy sustainability under subsection (c), 
        grant funds shall be available for not more than an amount 
        equal to the lesser of--
                    ``(A) $1,000,000; or
                    ``(B) 60 percent of the total cost.
            ``(4) Grants for innovation in energy sustainability.--In 
        the case of grants for innovation in energy sustainability 
        under subsection (d), grant funds shall be available for not 
        more than an amount equal to the lesser of--
                    ``(A) $500,000; or
                    ``(B) 75 percent of the total cost.
    ``(g) Loans for Energy Efficiency Improvement and Energy 
Sustainability.--
            ``(1) In general.--Subject to the availability of 
        appropriated funds, the Secretary shall provide loans to 
        institutional entities for the purpose of implementing energy 
        efficiency improvements and sustainable energy infrastructure.
            ``(2) Terms and conditions.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, loans made under this subsection shall 
                be on such terms and conditions as the Secretary may 
                prescribe.
                    ``(B) Maturity.--The final maturity of loans made 
                within a period shall be the lesser of, as determined 
                by the Secretary--
                            ``(i) 20 years; or
                            ``(ii) 90 percent of the useful life of the 
                        principal physical asset to be financed by the 
                        loan.
                    ``(C) Default.--No loan made under this subsection 
                may be subordinated to another debt contracted by the 
                institutional entity or to any other claims against the 
                institutional entity in the case of default.
                    ``(D) Benchmark interest rate.--
                            ``(i) In general.--Loans under this 
                        subsection shall be at an interest rate that is 
                        set by reference to a benchmark interest rate 
                        (yield) on marketable Treasury securities with 
                        a similar maturity to the direct loans being 
                        made.
                            ``(ii) Minimum.--The minimum interest rate 
                        of loans under this subsection shall be at the 
                        interest rate of the benchmark financial 
                        instrument.
                            ``(iii) New loans.--The minimum interest 
                        rate of new loans shall be adjusted each 
                        quarter to take account of changes in the 
                        interest rate of the benchmark financial 
                        instrument.
                    ``(E) Credit risk.--The Secretary shall--
                            ``(i) prescribe explicit standards for use 
                        in periodically assessing the credit risk of 
                        making direct loans under this subsection; and
                            ``(ii) find that there is a reasonable 
                        assurance of repayment before making a loan.
                    ``(F) Advance budget authority required.--New 
                direct loans may not be obligated under this subsection 
                except to the extent that appropriations of budget 
                authority to cover the costs of the new direct loans 
                are made in advance, as required by section 504 of the 
                Federal Credit Reform Act of 1990 (2 U.S.C. 661c).
            ``(3) Criteria.--Evaluation of projects for potential loan 
        funding shall be based on criteria established by the 
        Secretary, including criteria relating to--
                    ``(A) improvement in energy efficiency;
                    ``(B) reduction in greenhouse gas emissions and 
                other air emissions, including criteria air pollutants 
                and ozone-depleting refrigerants;
                    ``(C) increased use of renewable electric energy 
                sources or renewable thermal energy sources;
                    ``(D) reduction in consumption of fossil fuels; and
                    ``(E) need for funding assistance, including 
                consideration of the size of endowment or other 
                financial resources available to the institutional 
                entity.
            ``(4) Labor standards.--
                    ``(A) In general.--All laborers and mechanics 
                employed by contractors or subcontractors in the 
                performance of construction, repair, or alteration work 
                funded in whole or in part under this section shall be 
                paid wages at rates not less than those prevailing on 
                projects of a character similar in the locality as 
                determined by the Secretary of Labor in accordance with 
                sections 3141 through 3144, 3146, and 3147 of title 40, 
                United States Code. The Secretary shall not approve any 
                such funding without first obtaining adequate assurance 
                that required labor standards will be maintained upon 
                the construction work.
                    ``(B) Authority and functions.--The Secretary of 
                Labor shall have, with respect to the labor standards 
                specified in paragraph (1), the authority and functions 
                set forth in Reorganization Plan Number 14 of 1950 (15 
                Fed. Reg. 3176; 64 Stat. 1267) and section 3145 of 
                title 40, United States Code.
    ``(h) Program Procedures.--Not later than 180 days after the date 
of enactment of this section, the Secretary shall establish procedures 
for the solicitation and evaluation of potential projects for grant and 
loan funding and administration of the grant and loan programs.
    ``(i) Authorization.--
            ``(1) Grants.--There is authorized to be appropriated for 
        the cost of grants authorized in subsections (b), (c), and (d) 
        $250,000,000 for each of fiscal years 2009 through 2013, of 
        which not more than 5 percent may be used for administrative 
        expenses.
            ``(2) Loans.--There is authorized to be appropriated for 
        the initial cost of direct loans authorized in subsection (g) 
        $500,000,000 for each of fiscal years 2009 through 2013, of 
        which not more than 5 percent may be used for administrative 
        expenses.''.

                Subtitle G--Public and Assisted Housing

SEC. 481. APPLICATION OF INTERNATIONAL ENERGY CONSERVATION CODE TO 
              PUBLIC AND ASSISTED HOUSING.

    Section 109 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12709) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(C), by striking, ``, where 
                such standards are determined to be cost effective by 
                the Secretary of Housing and Urban Development''; and
                    (B) in the first sentence of paragraph (2)--
                            (i) by striking ``Council of American 
                        Building Officials Model Energy Code, 1992'' 
                        and inserting ``2006 International Energy 
                        Conservation Code''; and
                            (ii) by striking ``, and, with respect to 
                        rehabilitation and new construction of public 
                        and assisted housing funded by HOPE VI 
                        revitalization grants under section 24 of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437v), the 2003 International Energy 
                        Conservation Code'';
            (2) in subsection (b)--
                    (A) in the heading, by striking ``Model Energy 
                Code.--'' and inserting ``International Energy 
                Conservation Code.--'';
                    (B) by inserting ``and rehabilitation'' after ``all 
                new construction''; and
                    (C) by striking ``, and, with respect to 
                rehabilitation and new construction of public and 
                assisted housing funded by HOPE VI revitalization 
                grants under section 24 of the United States Housing 
                Act of 1937 (42 U.S.C. 1437v), the 2003 International 
                Energy Conservation Code'';
            (3) in subsection (c)--
                    (A) in the heading, by striking ``Model Energy Code 
                and''; and
                    (B) by striking ``, or, with respect to 
                rehabilitation and new construction of public and 
                assisted housing funded by HOPE VI revitalization 
                grants under section 24 of the United States Housing 
                Act of 1937 (42 U.S.C. 1437v), the 2003 International 
                Energy Conservation Code'';
            (4) by adding at the end the following:
    ``(d) Failure To Amend the Standards.--If the Secretary of Housing 
and Urban Development and the Secretary of Agriculture have not, within 
1 year after the requirements of the 2006 IECC or the ASHRAE Standard 
90.1-2004 are revised, amended the standards or made a determination 
under subsection (c), all new construction and rehabilitation of 
housing specified in subsection (a) shall meet the requirements of the 
revised code or standard if--
            ``(1) the Secretary of Housing and Urban Development or the 
        Secretary of Agriculture make a determination that the revised 
        codes do not negatively affect the availability or 
        affordability of new construction of assisted housing and 
        single family and multifamily residential housing (other than 
        manufactured homes) subject to mortgages insured under the 
        National Housing Act (12 U.S.C. 1701 et seq.) or insured, 
        guaranteed, or made by the Secretary of Agriculture under title 
        V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.), 
        respectively; and
            ``(2) the Secretary of Energy has made a determination 
        under section 304 of the Energy Conservation and Production Act 
        (42 U.S.C. 6833) that the revised code or standard would 
        improve energy efficiency.'';
            (5) by striking ``CABO Model Energy Code, 1992'' each place 
        it appears and inserting ``the 2006 IECC''; and
            (6) by striking ``1989'' each place it appears and 
        inserting ``2004''.

                     Subtitle H--General Provisions

SEC. 491. DEMONSTRATION PROJECT.

    (a) In General.--The Federal Director and the Commercial Director 
shall establish guidelines to implement a demonstration project to 
contribute to the research goals of the Office of Commercial High-
Performance Green Buildings and the Office of Federal High-Performance 
Green Buildings.
    (b) Projects.--In accordance with guidelines established by the 
Federal Director and the Commercial Director under subsection (a) and 
the duties of the Federal Director and the Commercial Director 
described in this title, the Federal Director or the Commercial 
Director shall carry out--
            (1) for each of fiscal years 2009 through 2014, 1 
        demonstration project per year of green features in a Federal 
        building selected by the Federal Director in accordance with 
        relevant agencies and described in subsection (c)(1), that--
                    (A) provides for instrumentation, monitoring, and 
                data collection related to the green features, for 
                study of the impact of the features on overall enrgy 
                use and operational costs, and for the evaluation of 
                the information obtained through the conduct of 
                projects and activities under this title; and
                    (B) achieves the highest rating offered by the high 
                performance green building system identified pursuant 
                to section 436(h);
            (2) no fewer than 4 demonstration projects at 4 
        universities, that, as competitively selected by the Commercial 
        Director in accordance with subsection (c)(2), have--
                    (A) appropriate research resources and relevant 
                projects to meet the goals of the demonstration project 
                established by the Office of Commercial High-
                Performance Green Buildings; and
                    (B) the ability--
                            (i) to serve as a model for high-
                        performance green building initiatives, 
                        including research and education by achieving 
                        the highest rating offered by the high 
                        performance green building system identified 
                        pursuant to section 436(h);
                            (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, 
                        including their impacts on energy use and 
                        operational costs, in each of the 4 climatic 
                        regions of the United States described in 
                        subsection (c)(2)(B); and
                            (v) to explore quantifiable and 
                        nonquantifiable beneficial impacts on public 
                        health and employee and student performance;
            (3) demonstration projects to evaluate replicable 
        approaches of achieving high performance in actual building 
        operation in various types of commercial buildings in various 
        climates; and
            (4) deployment activities to disseminate information on and 
        encourage widespread adoption of technologies, practices, and 
        policies to achieve zero-net-energy commercial buildings or low 
        energy use and effective monitoring of energy use in commercial 
        buildings.
    (c) Criteria.--
            (1) Federal facilities.--With respect to the existing or 
        proposed Federal facility at which a demonstration project 
        under this section is conducted, the Federal facility shall--
                    (A) be an appropriate model for a project relating 
                to--
                            (i) the effectiveness of high-performance 
                        technologies;
                            (ii) analysis of materials, components, 
                        systems, and emergency operations in the 
                        building, and the impact of those materials, 
                        components, and systems, including the impact 
                        on the health of building occupants;
                            (iii) life-cycle costing and life-cycle 
                        assessment of building materials and systems; 
                        and
                            (iv) location and design that promote 
                        access to the Federal facility through walking, 
                        biking, and mass transit; and
                    (B) possess sufficient technological and 
                organizational adaptability.
            (2) Universities.--With respect to the 4 universities at 
        which a demonstration project under this section is conducted--
                    (A) the universities should be selected, after 
                careful review of all applications received containing 
                the required information, as determined by the 
                Commercial Director, based on--
                            (i) successful and established public-
                        private research and development partnerships;
                            (ii) demonstrated capabilities to construct 
                        or renovate buildings that meet high indoor 
                        environmental quality standards;
                            (iii) organizational flexibility;
                            (iv) technological adaptability;
                            (v) the demonstrated capacity of at least 1 
                        university to replicate lessons learned among 
                        nearby or sister universities, preferably by 
                        participation in groups or consortia that 
                        promote sustainability;
                            (vi) the demonstrated capacity of at least 
                        1 university to have officially-adopted, 
                        institution-wide ``high-performance green 
                        building'' guidelines for all campus building 
                        projects; and
                            (vii) the demonstrated capacity of at least 
                        1 university to have been recognized by similar 
                        institutions as a national leader in 
                        sustainability education and curriculum for 
                        students of the university; and
                    (B) each university shall be located in a different 
                climatic region of the United States, each of which 
                regions shall have, as determined by the Office of 
                Commercial High-Performance Green Buildings--
                            (i) a hot, dry climate;
                            (ii) a hot, humid climate;
                            (iii) a cold climate; or
                            (iv) a temperate climate (including a 
                        climate with cold winters and humid summers).
    (d) Applications.--To receive a grant under subsection (b), an 
eligible applicant shall submit to the Federal Director or the 
Commercial Director an application at such time, in such manner, and 
containing such information as the Director may require, including a 
written assurance that all laborers and mechanics employed by 
contractors or subcontractors during construction, alteration, or 
repair that is financed, in whole or in part, by a grant under this 
section shall be paid wages at rates not less than those prevailing on 
similar construction in the locality, as determined by the Secretary of 
Labor in accordance with sections 3141 through 3144, 3146, and 3147 of 
title 40, United States Code. The Secretary of Labor shall, with 
respect to the labor standards described in this subsection, have the 
authority and functions set forth in Reorganization Plan Numbered 14 of 
1950 (5 U.S.C. App.) and section 3145 of title 40, United States Code.
    (e) Report.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter through September 30, 2014--
            (1) the Federal Director and the Commercial Director shall 
        submit to the Secretary a report that describes the status of 
        the demonstration projects; and
            (2) each University at which a demonstration project under 
        this section is conducted shall submit to the Secretary a 
        report that describes the status of the demonstration projects 
        under this section.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the demonstration project described in 
section (b)(1) $10,000,000 for the period of fiscal years 2008 through 
2012, and to carry out the demonstration project described in section 
(b)(2), $10,000,000 for the period of fiscal years 2008 through 2012, 
to remain available until expended.

SEC. 492. RESEARCH AND DEVELOPMENT.

    (a) Establishment.--The Federal Director and the Commercial 
Director, jointly and in coordination with the Advisory Committee, 
shall--
            (1)(A) survey existing research and studies relating to 
        high-performance green buildings; and
            (B) coordinate activities of common interest;
            (2) develop and recommend a high-performance green building 
        research plan that--
                    (A) identifies information and research needs, 
                including the relationships between human health, 
                occupant productivity, safety, security, and 
                accessibility and each of--
                            (i) 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;
                            (viii) access to public transportation; and
                            (ix) other issues relating to the health, 
                        comfort, productivity, and performance of 
                        occupants of the building;
                    (B) promotes 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; and
                    (C) identifies and tests new and emerging 
                technologies for high performance green buildings;
            (3) assist the budget and life-cycle costing functions of 
        the Directors' Offices under section 436(d);
            (4) study and identify potential benefits of green 
        buildings relating to security, natural disaster, and emergency 
        needs of the Federal Government; and
            (5) support other research initiatives determined by the 
        Directors' Offices.
    (b) Indoor Air Quality.--The Federal Director, in consultation with 
the Administrator of the Environmental Protection Agency and the 
Advisory Committee, shall develop and carry out a comprehensive indoor 
air quality program for all Federal facilities to ensure the safety of 
Federal workers and facility occupants--
            (1) during new construction and renovation of facilities; 
        and
            (2) in existing facilities.

SEC. 493. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION GRANT PROGRAM 
              FOR LOCAL GOVERNMENTS.

    Title III of the Clean Air Act (42 U.S.C. 7601 et seq.) is amended 
by adding at the end the following:

``SEC. 329. DEMONSTRATION GRANT PROGRAM FOR LOCAL GOVERNMENTS.

    ``(a) Grant Program.--
            ``(1) In general.--The Administrator shall establish a 
        demonstration program under which the Administrator shall 
        provide competitive grants to assist local governments (such as 
        municipalities and counties), with respect to local government 
        buildings--
                    ``(A) to deploy cost-effective technologies and 
                practices; and
                    ``(B) to achieve operational cost savings, through 
                the application of cost-effective technologies and 
                practices, as verified by the Administrator.
            ``(2) Cost sharing.--
                    ``(A) In general.--The Federal share of the cost of 
                an activity carried out using a grant provided under 
                this section shall be 40 percent.
                    ``(B) Waiver of non-federal share.--The 
                Administrator may waive up to 100 percent of the local 
                share of the cost of any grant under this section 
                should the Administrator determine that the community 
                is economically distressed, pursuant to objective 
                economic criteria established by the Administrator in 
                published guidelines.
            ``(3) Maximum amount.--The amount of a grant provided under 
        this subsection shall not exceed $1,000,000.
    ``(b) Guidelines.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Administrator shall issue 
        guidelines to implement the grant program established under 
        subsection (a).
            ``(2) Requirements.--The guidelines under paragraph (1) 
        shall establish--
                    ``(A) standards for monitoring and verification of 
                operational cost savings through the application of 
                cost-effective technologies and practices reported by 
                grantees under this section;
                    ``(B) standards for grantees to implement training 
                programs, and to provide technical assistance and 
                education, relating to the retrofit of buildings using 
                cost-effective technologies and practices; and
                    ``(C) a requirement that each local government that 
                receives a grant under this section shall achieve 
                facility-wide cost savings, through renovation of 
                existing local government buildings using cost-
                effective technologies and practices, of at least 40 
                percent as compared to the baseline operational costs 
                of the buildings before the renovation (as calculated 
                assuming a 3-year, weather-normalized average).
    ``(c) Compliance With State and Local Law.--Nothing in this section 
or any program carried out using a grant provided under this section 
supersedes or otherwise affects any State or local law, to the extent 
that the State or local law contains a requirement that is more 
stringent than the relevant requirement of this section.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2007 through 2012.
    ``(e) Reports.--
            ``(1) In general.--The Administrator shall provide annual 
        reports to Congress on cost savings achieved and actions taken 
        and recommendations made under this section, and any 
        recommendations for further action.
            ``(2) Final report.--The Administrator shall issue a final 
        report at the conclusion of the program, including findings, a 
        summary of total cost savings achieved, and recommendations for 
        further action.
    ``(f) Termination.--The program under this section shall terminate 
on September 30, 2012.
    ``(g) Definitions.--In this section, the terms `cost effective 
technologies and practices' and `operating cost savings' shall have the 
meanings defined in section 401 of the Energy Independence and Security 
Act of 2007.''.

SEC. 494. GREEN BUILDING ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Federal Director, in coordination with the 
Commercial Director, shall establish an advisory committee, to be known 
as the ``Green Building Advisory Committee''.
    (b) Membership.--
            (1) In general.--The Committee shall be composed of 
        representatives of, at a minimum--
                    (A) each agency referred to in section 421(e); and
                    (B) other relevant agencies and entities, as 
                determined by the Federal Director, including at least 
                1 representative of each of--
                            (i) State and local governmental green 
                        building programs;
                            (ii) independent green building 
                        associations or councils;
                            (iii) building experts, including 
                        architects, material suppliers, and 
                        construction contractors;
                            (iv) security advisors focusing on national 
                        security needs, natural disasters, and other 
                        dire emergency situations;
                            (v) public transportation industry experts; 
                        and
                            (vi) environmental health experts, 
                        including those with experience in children's 
                        health.
            (2) Non-federal members.--The total number of non-Federal 
        members on the Committee at any time shall not exceed 15.
    (c) Meetings.--The Federal Director shall establish a regular 
schedule of meetings for the Committee.
    (d) Duties.--The Committee shall provide advice and expertise for 
use by the Federal Director in carrying out the duties under this 
subtitle, including such recommendations relating to Federal activities 
carried out under sections 434 through 436 as are agreed to by a 
majority of the members of the Committee.
    (e) FACA Exemption.--The Committee shall not be subject to section 
14 of the Federal Advisory Committee Act (5 U.S.C. App.).

SEC. 495. ADVISORY COMMITTEE ON ENERGY EFFICIENCY FINANCE.

    (a) Establishment.--The Secretary, acting through the Assistant 
Secretary of Energy for Energy Efficiency and Renewable Energy, shall 
establish an Advisory Committee on Energy Efficiency Finance to provide 
advice and recommendations to the Department 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 
with expertise in--
            (1) availability of seed capital;
            (2) availability of venture capital;
            (3) availability of other sources of private equity;
            (4) investment banking with respect to corporate finance;
            (5) investment banking with respect to mergers and 
        acquisitions;
            (6) equity capital markets;
            (7) debt capital markets;
            (8) research analysis;
            (9) sales and trading;
            (10) commercial lending; and
            (11) residential lending.
    (c) Termination.--The Advisory Committee on Energy Efficiency 
Finance shall terminate on the date that is 10 years after the date of 
enactment of this Act.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to the Secretary for carrying 
out this section.

     TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

               Subtitle A--United States Capitol Complex

SEC. 501. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY STUDIES.

    (a) Studies.--The Architect of the Capitol may conduct feasibility 
studies regarding construction of photovoltaic roofs for the Rayburn 
House Office Building and the Hart Senate Office Building.
    (b) Report.--Not later than 6 months after the date of enactment of 
this Act, the Architect of the Capitol shall transmit to the Committee 
on Transportation and Infrastructure of the House of Representatives 
and the Committee on Rules and Administration of the Senate a report on 
the results of the feasibility studies and recommendations regarding 
construction of photovoltaic roofs for the buildings referred to in 
subsection (a).
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000.

SEC. 502. CAPITOL COMPLEX E-85 REFUELING STATION.

    (a) Construction.--The Architect of the Capitol may construct a 
fuel tank and pumping system for E-85 fuel at or within close proximity 
to the Capitol Grounds Fuel Station.
    (b) Use.--The E-85 fuel tank and pumping system shall be available 
for use by all legislative branch vehicles capable of operating with E-
85 fuel, subject to such other legislative branch agencies reimbursing 
the Architect of the Capitol for the costs of E-85 fuel used by such 
other legislative branch vehicles.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $640,000 for fiscal year 2008.

SEC. 503. ENERGY AND ENVIRONMENTAL MEASURES IN CAPITOL COMPLEX MASTER 
              PLAN.

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

SEC. 504. PROMOTING MAXIMUM EFFICIENCY IN OPERATION OF CAPITOL POWER 
              PLANT.

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

SEC. 505. CAPITOL POWER PLANT CARBON DIOXIDE EMISSIONS FEASIBILITY 
              STUDY AND DEMONSTRATION PROJECTS.

    The first section of the Act of March 4, 1911 (2 U.S.C. 2162; 36 
Stat. 1414, chapter 285) is amended in the seventh undesignated 
paragraph (relating to the Capitol power plant) under the heading 
``Public Buildings'', under the heading ``Under the Department of 
Interior''--
            (1) by striking ``ninety thousand dollars:'' and inserting 
        $90,000.''; and
            (2) by striking ``Provided, That hereafter the'' and all 
        that follows through the end of the proviso and inserting the 
        following:
    ``(a) Designation.--The heating, lighting, and power plant 
constructed under the terms of the Act approved April 28, 1904 (33 
Stat. 479, chapter 1762) shall be known as the `Capitol Power Plant'.
    ``(b) Definition.--In this section, the term `carbon dioxide energy 
efficiency' means the quantity of electricity used to power equipment 
for carbon dioxide capture and storage or use.
    ``(c) Feasibility Study.--The Architect of the Capitol shall 
conduct a feasibility study evaluating the available methods to 
capture, store, and use carbon dioxide emitted from the Capitol Power 
Plant as a result of burning fossil fuels. In carrying out the 
feasibility study, the Architect of the Capitol is encouraged to 
consult with individuals with expertise in carbon capture and storage 
or use, including experts with the Environmental Protection Agency, 
Department of Energy, academic institutions, non-profit organizations, 
and industry, as appropriate. The study shall consider--
            ``(1) the availability of technologies to capture and store 
        or use Capitol Power Plant carbon dioxide emissions;
            ``(2) strategies to conserve energy and reduce carbon 
        dioxide emissions at the Capitol Power Plant; and
            ``(3) other factors as determined by the Architect of the 
        Capitol.
    ``(d) Demonstration Projects.--
            ``(1) In general.--If the feasibility study determines that 
        a demonstration project to capture and store or use Capitol 
        Power Plant carbon dioxide emissions is technologically 
        feasible and economically justified (including direct and 
        indirect economic and environmental benefits), the Architect of 
        the Capitol may conduct one or more demonstration projects to 
        capture and store or use carbon dioxide emitted from the 
        Capitol Power Plant as a result of burning fossil fuels.
            ``(2) Factors for consideration.--In carrying out such 
        demonstration projects, the Architect of the Capitol shall 
        consider--
                    ``(A) the amount of Capitol Power Plant carbon 
                dioxide emissions to be captured and stored or used;
                    ``(B) whether the proposed project is able to 
                reduce air pollutants other than carbon dioxide;
                    ``(C) the carbon dioxide energy efficiency of the 
                proposed project;
                    ``(D) whether the proposed project is able to use 
                carbon dioxide emissions;
                    ``(E) whether the proposed project could be 
                expanded to significantly increase the amount of 
                Capitol Power Plant carbon dioxide emissions to be 
                captured and stored or used;
                    ``(F) the potential environmental, energy, and 
                educational benefits of demonstrating the capture and 
                storage or use of carbon dioxide at the U.S. Capitol; 
                and
                    ``(G) other factors as determined by the Architect 
                of the Capitol.
            ``(3) Terms and conditions.--A demonstration project funded 
        under this section shall be subject to such terms and 
        conditions as the Architect of the Capitol may prescribe.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the feasibility study and demonstration 
project $3,000,000. Such sums shall remain available until expended.''.

           Subtitle B--Energy Savings Performance Contracting

SEC. 511. AUTHORITY TO ENTER INTO CONTRACTS; REPORTS.

    (a) In General.--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. 512. 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) Funding options.--In carrying out a contract 
                under this title, a Federal agency may use any 
                combination of--
                            ``(i) appropriated funds; and
                            ``(ii) private financing under an energy 
                        savings performance contract.''.

SEC. 513. 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)) (as amended by section 512) 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.--In the case of energy 
                        savings performance contracts, the evaluations 
                        and savings measurement and verification 
                        required under paragraphs (2) and (4) of 
                        section 543(f) shall be used by a Federal 
                        agency to meet the requirements for 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.
                            ``(ii) Modification of existing 
                        contracts.--Not later than 18 months 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 B of title V of the Energy 
                        Independence and Security Act of 2007.''.

SEC. 514. PERMANENT REAUTHORIZATION.

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

SEC. 515. 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;
                    ``(C) if otherwise authorized by Federal or State 
                law (including regulations), the sale or transfer of 
                electrical or thermal energy generated on-site from 
                renewable energy sources or cogeneration, 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. 516. RETENTION OF SAVINGS.

    Section 546(c) of the National Energy Conservation Policy Act (42 
U.S.C. 8256(c)) is amended by striking paragraph (5).

SEC. 517. TRAINING FEDERAL CONTRACTING OFFICERS TO NEGOTIATE ENERGY 
              EFFICIENCY CONTRACTS.

    (a) Program.--The Secretary shall create and administer in the 
Federal Energy Management Program a training program to educate Federal 
contract negotiation and contract management personnel so that the 
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 the potential energy efficiency opportunities and 
        implications of the contracts.
    (b) Schedule.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall plan, staff, announce, and begin training 
under the Federal Energy Management Program.
    (c) Personnel to Be Trained.--Personnel appropriate to receive 
training under the Federal Energy Management Program shall be selected 
by and sent for the training from--
            (1) the Department of Defense;
            (2) the Department of Veterans Affairs;
            (3) the Department;
            (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 the Secretary, in carrying out the Federal Energy Management 
        Program, to offer the potential for energy savings and 
        greenhouse gas emission reductions if negotiated with taking 
        into account those goals.
    (d) Trainers.--Training under the Federal Energy Management Program 
may be conducted by--
            (1) attorneys or contract officers with experience in 
        negotiating and managing contracts described in subsection 
        (c)(7) from any agency, except that the Secretary shall 
        reimburse the related salaries and expenses of the attorneys or 
        contract officers from amounts made available for carrying out 
        this section to the extent the attorneys or contract officers 
        are not employees of the Department; and
            (2) private experts hired by the Secretary for the purposes 
        of this section, except that the Secretary may not hire experts 
        who are simultaneously employed by any company under contract 
        to provide energy efficiency services to the Federal 
        Government.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $750,000 for 
each of fiscal years 2008 through 2012.

SEC. 518. STUDY OF ENERGY AND COST SAVINGS IN NONBUILDING APPLICATIONS.

    (a) Definitions.--In this section:
            (1) Nonbuilding application.--The term ``nonbuilding 
        application'' means--
                    (A) any class of vehicles, devices, or equipment 
                that is transportable under the power of the applicable 
                vehicle, device, or equipment by land, sea, or air and 
                that consumes energy from any fuel source for the 
                purpose of--
                            (i) that transportation; or
                            (ii) maintaining a controlled environment 
                        within the vehicle, device, or equipment; and
                    (B) any federally-owned equipment used to generate 
                electricity or transport water.
            (2) Secondary savings.--
                    (A) In general.--The term ``secondary savings'' 
                means additional energy or cost savings that are a 
                direct consequence of the energy savings that result 
                from the energy efficiency improvements that were 
                financed and implemented pursuant to an energy savings 
                performance contract.
                    (B) Inclusions.--The term ``secondary savings'' 
                includes--
                            (i) energy and cost savings that result 
                        from a reduction in the need for fuel delivery 
                        and logistical support;
                            (ii) personnel cost savings and 
                        environmental benefits; and
                            (iii) in the case of electric generation 
                        equipment, the benefits of increased efficiency 
                        in the production of electricity, including 
                        revenues received by the Federal Government 
                        from the sale of electricity so produced.
    (b) Study.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary and the Secretary of 
        Defense shall jointly conduct, and submit to Congress and the 
        President a report of, a study of the potential for the use of 
        energy savings performance contracts to reduce energy 
        consumption and provide energy and cost savings in nonbuilding 
        applications.
            (2) Requirements.--The study under this subsection shall 
        include--
                    (A) an estimate of the potential energy and cost 
                savings to the Federal Government, including secondary 
                savings and benefits, from increased efficiency in 
                nonbuilding applications;
                    (B) an assessment of the feasibility of extending 
                the use of energy savings performance contracts to 
                nonbuilding applications, including an identification 
                of any regulatory or statutory barriers to that use; 
                and
                    (C) such recommendations as the Secretary and 
                Secretary of Defense determine to be appropriate.

           Subtitle C--Energy Efficiency in Federal Agencies

SEC. 521. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT OF ENERGY 
              HEADQUARTERS BUILDING.

    (a) In General.--The Administrator of General Services shall 
install a photovoltaic system, as set forth in the Sun Wall Design 
Project, for the headquarters building of the Department located at 
1000 Independence Avenue, SW., Washington, DC, commonly known as the 
Forrestal Building.
    (b) Funding.--There shall be available from the Federal Buildings 
Fund established by section 592 of title 40, United States Code, 
$30,000,000 to carry out this section. Such sums shall be derived from 
the unobligated balance of amounts made available from the Fund for 
fiscal year 2007, and prior fiscal years, for repairs and alternations 
and other activities (excluding amounts made available for the energy 
program). Such sums shall remain available until expended.

SEC. 522. PROHIBITION ON INCANDESCENT LAMPS BY COAST GUARD.

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

SEC. 523. STANDARD RELATING TO SOLAR HOT WATER HEATERS.

    Section 305(a)(3)(A) of the Energy Conservation and Production Act 
(42 U.S.C. 6834(a)(3)(A)) is amended--
            (1) in clause (i)(II), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(iii) if lifecycle cost-effective, as 
                        compared to other reasonably available 
                        technologies, not less than 30 percent of the 
                        hot water demand for each new Federal building 
                        or Federal building undergoing a major 
                        renovation be met through the installation and 
                        use of solar hot water heaters.''.

SEC. 524. FEDERALLY-PROCURED APPLIANCES WITH STANDBY POWER.

    Section 553 of the National Energy Conservation Policy Act (42 
U.S.C. 8259b) is amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following:
    ``(e) Federally-Procured Appliances With Standby Power.--
            ``(1) Definition of eligible product.--In this subsection, 
        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 
                paragraph (4).
            ``(2) Federal purchasing requirement.--Subject to paragraph 
        (3), if an agency purchases an eligible product, the agency 
        shall purchase--
                    ``(A) an eligible product that uses not more than 1 
                watt in the standby power consuming mode of the 
                eligible product; or
                    ``(B) if an eligible product described in 
                subparagraph (A) is not available, the eligible product 
                with the lowest available standby power wattage in the 
                standby power consuming mode of the eligible product.
            ``(3) Limitation.--The requirements of paragraph (2) shall 
        apply to a purchase by an agency only if--
                    ``(A) the lower-wattage eligible product is--
                            ``(i) lifecycle cost-effective; and
                            ``(ii) practicable; and
                    ``(B) the utility and performance of the eligible 
                product is not compromised by the lower wattage 
                requirement.
            ``(4) Eligible products.--The Secretary, in consultation 
        with the Secretary of Defense, the Administrator of the 
        Environmental Protection Agency, and the Administrator of 
        General Services, shall compile a publicly accessible list of 
        cost-effective eligible products that shall be subject to the 
        purchasing requirements of paragraph (2).''.

SEC. 525. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

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

SEC. 526. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

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

SEC. 527. GOVERNMENT EFFICIENCY STATUS REPORTS.

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

SEC. 528. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.

    (a) Reports.--Not later than April 1 of each year, the Director of 
the Office of Management and Budget shall submit an annual Government 
efficiency report to the Committee on Oversight and Government Reform 
of the House of Representatives and the Committee on Governmental 
Affairs of the Senate, which shall contain--
            (1) a summary of the information reported by agencies under 
        section 527;
            (2) an evaluation of the overall progress of the Federal 
        Government toward achieving the goals of this title and the 
        amendments made by this title; and
            (3) recommendations for additional actions necessary to 
        meet the goals of this title and the amendments made by this 
        title.
    (b) Scorecards.--The Director of the Office of Management and 
Budget shall include in any annual energy scorecard the Director is 
otherwise required to submit a description of the compliance of each 
agency with the requirements of this title and the amendments made by 
this title.

SEC. 529. ELECTRICITY SECTOR DEMAND RESPONSE.

    (a) In General.--Title V of the National Energy Conservation Policy 
Act (42 U.S.C. 8241 et seq.) is amended by adding at the end the 
following:

                    ``PART 5--PEAK DEMAND REDUCTION

``SEC. 571. NATIONAL ACTION PLAN FOR DEMAND RESPONSE.

    ``(a) National Assessment and Report.--The Federal Energy 
Regulatory Commission (`Commission') shall conduct a National 
Assessment of Demand Response. The Commission shall, within 18 months 
of the date of enactment of this part, submit a report to Congress that 
includes each of the following:
            ``(1) Estimation of nationwide demand response potential in 
        5 and 10 year horizons, including data on a State-by-State 
        basis, and a methodology for updates of such estimates on an 
        annual basis.
            ``(2) Estimation of how much of this potential can be 
        achieved within 5 and 10 years after the enactment of this part 
        accompanied by specific policy recommendations that if 
        implemented can achieve the estimated potential. Such 
        recommendations shall include options for funding and/or 
        incentives for the development of demand response resources.
            ``(3) The Commission shall further note any barriers to 
        demand response programs offering flexible, non-discriminatory, 
        and fairly compensatory terms for the services and benefits 
        made available, and shall provide recommendations for 
        overcoming such barriers.
            ``(4) The Commission shall seek to take advantage of 
        preexisting research and ongoing work, and shall insure that 
        there is no duplication of effort.
    ``(b) National Action Plan on Demand Response.--The Commission 
shall further develop a National Action Plan on Demand Response, 
soliciting and accepting input and participation from a broad range of 
industry stakeholders, State regulatory utility commissioners, and non-
governmental groups. The Commission shall seek consensus where 
possible, and decide on optimum solutions to issues that defy 
consensus. Such Plan shall be completed within one year after the 
completion of the National Assessment of Demand Response, and shall 
meet each of the following objectives:
            ``(1) Identification of requirements for technical 
        assistance to States to allow them to maximize the amount of 
        demand response resources that can be developed and deployed.
            ``(2) Design and identification of requirements for 
        implementation of a national communications program that 
        includes broad-based customer education and support.
            ``(3) Development or identification of analytical tools, 
        information, model regulatory provisions, model contracts, and 
        other support materials for use by customers, states, utilities 
        and demand response providers.
    ``(c) Upon completion, the National Action Plan on Demand Response 
shall be published, together with any favorable and dissenting comments 
submitted by participants in its preparation. Six months after 
publication, the Commission, together with the Secretary of Energy, 
shall submit to Congress a proposal to implement the Action Plan, 
including specific proposed assignments of responsibility, proposed 
budget amounts, and any agreements secured for participation from State 
and other participants.
    ``(d) Authorization.--There are authorized to be appropriated to 
the Commission to carry out this section not more than $10,000,000 for 
each of the fiscal years 2008, 2009, and 2010.''.
    (b) Table of Contents.--The table of contents for the National 
Energy Conservation Policy Act (42 U.S.C. 8201 note) is amended by 
adding after the items relating to part 4 of title V the following:

                    ``Part 5--Peak Demand Reduction

``Sec. 571. National Action Plan for Demand Response.''.

          Subtitle D--Energy Efficiency of Public Institutions

SEC. 531. 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 fiscal years 2007 through 2012''.

SEC. 532. UTILITY ENERGY EFFICIENCY PROGRAMS.

    (a) Electric Utilities.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(16) Integrated resource planning.--Each electric utility 
        shall--
                    ``(A) integrate energy efficiency resources into 
                utility, State, and regional plans; and
                    ``(B) adopt policies establishing cost-effective 
                energy efficiency as a priority resource.
            ``(17) Rate design modifications to promote energy 
        efficiency investments.--
                    ``(A) In general.--The rates allowed to be charged 
                by any electric utility shall--
                            ``(i) align utility incentives with the 
                        delivery of cost-effective energy efficiency; 
                        and
                            ``(ii) promote energy efficiency 
                        investments.
                    ``(B) Policy options.--In complying with 
                subparagraph (A), each State regulatory authority and 
                each nonregulated utility shall consider--
                            ``(i) removing the throughput incentive and 
                        other regulatory and management disincentives 
                        to energy efficiency;
                            ``(ii) providing utility incentives for the 
                        successful management of energy efficiency 
                        programs;
                            ``(iii) including the impact on adoption of 
                        energy efficiency as 1 of the goals of retail 
                        rate design, recognizing that energy efficiency 
                        must be balanced with other objectives;
                            ``(iv) adopting rate designs that encourage 
                        energy efficiency for each customer class;
                            ``(v) allowing timely recovery of energy 
                        efficiency-related costs; and
                            ``(vi) offering home energy audits, 
                        offering demand response programs, publicizing 
                        the financial and environmental benefits 
                        associated with making home energy efficiency 
                        improvements, and educating homeowners about 
                        all existing Federal and State incentives, 
                        including the availability of low-cost loans, 
                        that make energy efficiency improvements more 
                        affordable.''.
    (b) Natural Gas Utilities.--Section 303(b) of the Public Utility 
Regulatory Policies Act of 1978 (15 U.S.C. 3203(b)) is amended by 
adding at the end the following:
            ``(5) Energy efficiency.--Each natural gas utility shall--
                    ``(A) integrate energy efficiency resources into 
                the plans and planning processes of the natural gas 
                utility; and
                    ``(B) adopt policies that establish energy 
                efficiency as a priority resource in the plans and 
                planning processes of the natural gas utility.
            ``(6) Rate design modifications to promote energy 
        efficiency investments.--
                    ``(A) In general.--The rates allowed to be charged 
                by a natural gas utility shall align utility incentives 
                with the deployment of cost-effective energy 
                efficiency.
                    ``(B) Policy options.--In complying with 
                subparagraph (A), each State regulatory authority and 
                each nonregulated utility shall consider--
                            ``(i) separating fixed-cost revenue 
                        recovery from the volume of transportation or 
                        sales service provided to the customer;
                            ``(ii) providing to utilities incentives 
                        for the successful management of energy 
                        efficiency programs, such as allowing utilities 
                        to retain a portion of the cost-reducing 
                        benefits accruing from the programs;
                            ``(iii) promoting the impact on adoption of 
                        energy efficiency as 1 of the goals of retail 
                        rate design, recognizing that energy efficiency 
                        must be balanced with other objectives; and
                            ``(iv) adopting rate designs that encourage 
                        energy efficiency for each customer class.
                For purposes of applying the provisions of this 
                subtitle to this paragraph, any reference in this 
                subtitle to the date of enactment of this Act shall be 
                treated as a reference to the date of enactment of this 
                paragraph.''.
    (c) Conforming Amendment.--Section 303(a) of the Public Utility 
Regulatory Policies Act of 1978 U.S.C. 3203(a)) is amended by striking 
``and (4)'' inserting ``(4), (5), and (6)''.

      Subtitle E--Energy Efficiency and Conservation Block Grants

SEC. 541. DEFINITIONS.

    In this subtitle:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State;
                    (B) an eligible unit of local government; and
                    (C) an Indian tribe.
            (2) Eligible unit of local government.--The term ``eligible 
        unit of local government'' means--
                    (A) an eligible unit of local government-
                alternative 1; and
                    (B) an eligible unit of local government-
                alternative 2.
            (3)(A) Eligible unit of local government-alternative 1.--
        The term ``eligible unit of local government-alternative 1'' 
        means--
                    (i) a city with a population--
                            (I) of at least 35,000; or
                            (II) that causes the city to be 1 of the 10 
                        highest-populated cities of the State in which 
                        the city is located; and
                    (ii) a county with a population--
                            (I) of at least 200,000; or
                            (II) that causes the county to be 1 of the 
                        10 highest-populated counties of the State in 
                        which the county is located.
            (B) Eligible unit of local government-alternative 2.--The 
        term ``eligible unit of local government-alternative 2'' 
        means--
                    (i) a city with a population of at least 50,000; or
                    (ii) a county with a population of at least 
                200,000.
            (4) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self- 
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (5) Program.--The term ``program'' means the Energy 
        Efficiency and Conservation Block Grant Program established 
        under section 542(a).
            (6) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.

SEC. 542. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM.

    (a) Establishment.--The Secretary shall establish a program, to be 
known as the ``Energy Efficiency and Conservation Block Grant 
Program'', under which the Secretary shall provide grants to eligible 
entities in accordance with this subtitle.
    (b) Purpose.--The purpose of the program shall be to assist 
eligible entities in implementing strategies--
            (1) to reduce fossil fuel emissions created as a result of 
        activities within the jurisdictions of eligible entities in 
        manner that--
                    (A) is environmentally sustainable; and
                    (B) to the maximum extent practicable, maximizes 
                benefits for local and regional communities;
            (2) to reduce the total energy use of the eligible 
        entities; and
            (3) to improve energy efficiency in--
                    (A) the transportation sector;
                    (B) the building sector; and
                    (C) other appropriate sectors.

SEC. 543. ALLOCATION OF FUNDS.

    (a) In General.--Of amounts made available to provide grants under 
this subtitle for each fiscal year, the Secretary shall allocate--
            (1) 68 percent to eligible units of local government in 
        accordance with subsection (b);
            (2) 28 percent to States in accordance with subsection (c);
            (3) 2 percent to Indian tribes in accordance with 
        subsection (d); and
            (4) 2 percent for competitive grants under section 546.
    (b) Eligible Units of Local Government.--Of amounts available for 
distribution to eligible units of local government under subsection 
(a)(1), the Secretary shall provide grants to eligible units of local 
government under this section based on a formula established by the 
Secretary according to--
            (1) the populations served by the eligible units of local 
        government, according to the latest available decennial census; 
        and
            (2) the daytime populations of the eligible units of local 
        government and other similar factors (such as square footage of 
        commercial, office, and industrial space), as determined by the 
        Secretary.
    (c) States.--Of amounts available for distribution to States under 
subsection (a)(2), the Secretary shall provide--
            (1) not less than 1.25 percent to each State; and
            (2) the remainder among the States, based on a formula to 
        be established by the Secretary that takes into account--
                    (A) the population of each State; and
                    (B) any other criteria that the Secretary 
                determines to be appropriate.
    (d) Indian Tribes.--Of amounts available for distribution to Indian 
tribes under subsection (a)(3), the Secretary shall establish a formula 
for allocation of the amounts to Indian tribes, taking into account any 
factors that the Secretary determines to be appropriate.
    (e) Publication of Allocation Formulas.--Not later than 90 days 
before the beginning of each fiscal year for which grants are provided 
under this subtitle, the Secretary shall publish in the Federal 
Register the formulas for allocation established under this section.
    (f) State and Local Advisory Committee.--The Secretary shall 
establish a State and local advisory committee to advise the Secretary 
regarding administration, implementation, and evaluation of the 
program.

SEC. 544. USE OF FUNDS.

    An eligible entity may use a grant received under this subtitle to 
carry out activities to achieve the purposes of the program, 
including--
            (1) development and implementation of an energy efficiency 
        and conservation strategy under section 545(b);
            (2) retaining technical consultant services to assist the 
        eligible entity in the development of such a strategy, 
        including--
                    (A) formulation of energy efficiency, energy 
                conservation, and energy usage goals;
                    (B) identification of strategies to achieve those 
                goals--
                            (i) through efforts to increase energy 
                        efficiency and reduce energy consumption; and
                            (ii) by encouraging behavioral changes 
                        among the population served by the eligible 
                        entity;
                    (C) development of methods to measure progress in 
                achieving the goals;
                    (D) development and publication of annual reports 
                to the population served by the eligible entity 
                describing--
                            (i) the strategies and goals; and
                            (ii) the progress made in achieving the 
                        strategies and goals during the preceding 
                        calendar year; and
                    (E) other services to assist in the implementation 
                of the energy efficiency and conservation strategy;
            (3) conducting residential and commercial building energy 
        audits;
            (4) establishment of financial incentive programs for 
        energy efficiency improvements;
            (5) the provision of grants to nonprofit organizations and 
        governmental agencies for the purpose of performing energy 
        efficiency retrofits;
            (6) development and implementation of energy efficiency and 
        conservation programs for buildings and facilities within the 
        jurisdiction of the eligible entity, 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 and verification protocols; and
                    (E) identification of energy efficient 
                technologies;
            (7) development and implementation of programs to conserve 
        energy used in transportation, including--
                    (A) use of flex time by employers;
                    (B) satellite work centers;
                    (C) development and promotion of zoning guidelines 
                or requirements that promote energy efficient 
                development;
                    (D) development of infrastructure, such as bike 
                lanes and pathways and pedestrian walkways;
                    (E) synchronization of traffic signals; and
                    (F) other measures that increase energy efficiency 
                and decrease energy consumption;
            (8) development and implementation of building codes and 
        inspection services to promote building energy efficiency;
            (9) application and implementation of energy distribution 
        technologies that significantly increase energy efficiency, 
        including--
                    (A) distributed resources; and
                    (B) district heating and cooling systems;
            (10) activities to increase participation and efficiency 
        rates for material conservation programs, including source 
        reduction, recycling, and recycled content procurement programs 
        that lead to increases in energy efficiency;
            (11) the purchase and implementation of technologies to 
        reduce, capture, and, to the maximum extent practicable, use 
        methane and other greenhouse gases generated by landfills or 
        similar sources;
            (12) replacement of traffic signals and street lighting 
        with energy efficient lighting technologies, including--
                    (A) light emitting diodes; and
                    (B) any other technology of equal or greater energy 
                efficiency;
            (13) development, implementation, and installation on or in 
        any government building of the eligible entity of onsite 
        renewable energy technology that generates electricity from 
        renewable resources, including--
                    (A) solar energy;
                    (B) wind energy;
                    (C) fuel cells; and
                    (D) biomass; and
            (14) any other appropriate activity, as determined by the 
        Secretary, in consultation with--
                    (A) the Administrator of the Environmental 
                Protection Agency;
                    (B) the Secretary of Transportation; and
                    (C) the Secretary of Housing and Urban Development.

SEC. 545. REQUIREMENTS FOR ELIGIBLE ENTITIES.

    (a) Construction Requirement.--
            (1) In general.--To be eligible to receive a grant under 
        the program, each eligible applicant shall submit to the 
        Secretary a written assurance that all laborers and mechanics 
        employed by any contractor or subcontractor of the eligible 
        entity during any construction, alteration, or repair activity 
        funded, in whole or in part, by the grant shall be paid wages 
        at rates not less than the prevailing wages for similar 
        construction activities in the locality, as determined by the 
        Secretary of Labor, in accordance with sections 3141 through 
        3144, 3146, and 3147 of title 40, United States Code.
            (2) Secretary of labor.--With respect to the labor 
        standards referred to in paragraph (1), the Secretary of Labor 
        shall have the authority and functions described in--
                    (A) Reorganization Plan Numbered 14 of 1950 (5 
                U.S.C. 903 note); and
                    (B) section 3145 of title 40, United States Code.
    (b) Eligible Units of Local Government and Indian Tribes.--
            (1) Proposed strategy.--
                    (A) In general.--Not later than 1 year after the 
                date on which an eligible unit of local government or 
                Indian tribe receives a grant under this subtitle, the 
                eligible unit of local government or Indian tribe shall 
                submit to the Secretary a proposed energy efficiency 
                and conservation strategy in accordance with this 
                paragraph.
                    (B) Inclusions.--The proposed strategy under 
                subparagraph (A) shall include--
                            (i) a description of the goals of the 
                        eligible unit of local government or Indian 
                        tribe, in accordance with the purposes of this 
                        subtitle, for increased energy efficiency and 
                        conservation in the jurisdiction of the 
                        eligible unit of local government or Indian 
                        tribe; and
                            (ii) a plan for the use of the grant to 
                        assist the eligible unit of local government or 
                        Indian tribe in achieving those goals, in 
                        accordance with section 544.
                    (C) Requirements for eligible units of local 
                government.--In developing the strategy under 
                subparagraph (A), an eligible unit of local government 
                shall--
                            (i) take into account any plans for the use 
                        of funds by adjacent eligible units of local 
                        governments that receive grants under the 
                        program; and
                            (ii) coordinate and share information with 
                        the State in which the eligible unit of local 
                        government is located regarding activities 
                        carried out using the grant to maximize the 
                        energy efficiency and conservation benefits 
                        under this subtitle.
            (2) Approval by secretary.--
                    (A) In general.--The Secretary shall approve or 
                disapprove a proposed strategy under paragraph (1) by 
                not later than 120 days after the date of submission of 
                the proposed strategy.
                    (B) Disapproval.--If the Secretary disapproves a 
                proposed strategy under subparagraph (A)--
                            (i) the Secretary shall provide to the 
                        eligible unit of local government or Indian 
                        tribe the reasons for the disapproval; and
                            (ii) the eligible unit of local government 
                        or Indian tribe may revise and resubmit the 
                        proposed strategy as many times as necessary 
                        until the Secretary approves a proposed 
                        strategy.
                    (C) Requirement.--The Secretary shall not provide 
                to an eligible unit of local government or Indian tribe 
                any grant under the program until a proposed strategy 
                of the eligible unit of local government or Indian 
                tribe is approved by the Secretary under this 
                paragraph.
            (3) Limitations on use of funds.--Of amounts provided to an 
        eligible unit of local government or Indian tribe under the 
        program, an eligible unit of local government or Indian tribe 
        may use--
                    (A) for administrative expenses, excluding the cost 
                of meeting the reporting requirements of this subtitle, 
                an amount equal to the greater of--
                            (i) 10 percent; and
                            (ii) $75,000;
                    (B) for the establishment of revolving loan funds, 
                an amount equal to the greater of--
                            (i) 20 percent; and
                            (ii) $250,000; and
                    (C) for the provision of subgrants to 
                nongovernmental organizations for the purpose of 
                assisting in the implementation of the energy 
                efficiency and conservation strategy of the eligible 
                unit of local government or Indian tribe, an amount 
                equal to the greater of--
                            (i) 20 percent; and
                            (ii) $250,000.
            (4) Annual report.--Not later than 2 years after the date 
        on which funds are initially provided to an eligible unit of 
        local government or Indian tribe under the program, and 
        annually thereafter, the eligible unit of local government or 
        Indian tribe shall submit to the Secretary a report 
        describing--
                    (A) the status of development and implementation of 
                the energy efficiency and conservation strategy of the 
                eligible unit of local government or Indian tribe; and
                    (B) as practicable, an assessment of energy 
                efficiency gains within the jurisdiction of the 
                eligible unit of local government or Indian tribe.
    (c) States.--
            (1) Distribution of funds.--
                    (A) In general.--A State that receives a grant 
                under the program shall use not less than 60 percent of 
                the amount received to provide subgrants to units of 
                local government in the State that are not eligible 
                units of local government.
                    (B) Deadline.--The State shall provide the 
                subgrants required under subparagraph (A) by not later 
                than 180 days after the date on which the Secretary 
                approves a proposed energy efficiency and conservation 
                strategy of the State under paragraph (3).
            (2) Revision of conservation plan; proposed strategy.--Not 
        later than 120 days after the date of enactment of this Act, 
        each State shall--
                    (A) modify the State energy conservation plan of 
                the State under section 362 of the Energy Policy and 
                Conservation Act (42 U.S.C. 6322) to establish 
                additional goals for increased energy efficiency and 
                conservation in the State; and
                    (B) submit to the Secretary a proposed energy 
                efficiency and conservation strategy that--
                            (i) establishes a process for providing 
                        subgrants as required under paragraph (1); and
                            (ii) includes a plan of the State for the 
                        use of funds received under a the program to 
                        assist the State in achieving the goals 
                        established under subparagraph (A), in 
                        accordance with sections 542(b) and 544.
            (3) Approval by secretary.--
                    (A) In general.--The Secretary shall approve or 
                disapprove a proposed strategy under paragraph (2)(B) 
                by not later than 120 days after the date of submission 
                of the proposed strategy.
                    (B) Disapproval.--If the Secretary disapproves a 
                proposed strategy under subparagraph (A)--
                            (i) the Secretary shall provide to the 
                        State the reasons for the disapproval; and
                            (ii) the State may revise and resubmit the 
                        proposed strategy as many times as necessary 
                        until the Secretary approves a proposed 
                        strategy.
                    (C) Requirement.--The Secretary shall not provide 
                to a State any grant under the program until a proposed 
                strategy of the State is approved the Secretary under 
                this paragraph.
            (4) Limitations on use of funds.--A State may use not more 
        than 10 percent of amounts provided under the program for 
        administrative expenses.
            (5) Annual reports.--Each State that receives a grant under 
        the program shall submit to the Secretary an annual report that 
        describes--
                    (A) the status of development and implementation of 
                the energy efficiency and conservation strategy of the 
                State during the preceding calendar year;
                    (B) the status of the subgrant program of the State 
                under paragraph (1);
                    (C) the energy efficiency gains achieved through 
                the energy efficiency and conservation strategy of the 
                State during the preceding calendar year; and
                    (D) specific energy efficiency and conservation 
                goals of the State for subsequent calendar years.

SEC. 546. COMPETITIVE GRANTS.

    (a) In General.--Of the total amount made available for each fiscal 
year to carry out this subtitle, the Secretary shall use not less than 
2 percent to provide grants under this section, on a competitive basis, 
to--
            (1) units of local government (including Indian tribes) 
        that are not eligible entities; and
            (2) consortia of units of local government described in 
        paragraph (1).
    (b) Applications.--To be eligible to receive a grant under this 
section, a unit of local government or consortia shall submit to the 
Secretary an application at such time, in such manner, and containing 
such information as the Secretary may require, including a plan of the 
unit of local government to carry out an activity described in section 
544.
    (c) Priority.--In providing grants under this section, the 
Secretary shall give priority to units of local government--
            (1) located in States with populations of less than 
        2,000,000; or
            (2) that plan to carry out projects that would result in 
        significant energy efficiency improvements or reductions in 
        fossil fuel use.

SEC. 547. REVIEW AND EVALUATION.

    (a) In General.--The Secretary may review and evaluate the 
performance of any eligible entity that receives a grant under the 
program, including by conducting an audit, as the Secretary determines 
to be appropriate.
    (b) Withholding of Funds.--The Secretary may withhold from an 
eligible entity any portion of a grant to be provided to the eligible 
entity under the program if the Secretary determines that the eligible 
entity has failed to achieve compliance with--
            (1) any applicable guideline or regulation of the Secretary 
        relating to the program, including the misuse or 
        misappropriation of funds provided under the program; or
            (2) the energy efficiency and conservation strategy of the 
        eligible entity.

SEC. 548. FUNDING.

    (a) Authorization of Appropriations.--
            (1) Grants.--There is authorized to be appropriated to the 
        Secretary for the provision of grants under the program 
        $2,000,000,000 for each of fiscal years 2008 through 2012; 
        provided that 49 percent of the appropriated funds shall be 
        distributed using the definition of eligible unit of local 
        government-alternative 1 in section 541(3)(A) and 49 percent of 
        the appropriated funds shall be distributed using the 
        definition of eligible unit of local government-alternative 2 
        in section 541(3)(B).
            (2) Administrative costs.--There are authorized to be 
        appropriated to the Secretary for administrative expenses of 
        the program--
                    (A) $20,000,000 for each of fiscal years 2008 and 
                2009;
                    (B) $25,000,000 for each of fiscal years 2010 and 
                2011; and
                    (C) $30,000,000 for fiscal year 2012.
    (b) Maintenance of Funding.--The funding provided under this 
section shall supplement (and not supplant) other Federal funding 
provided under--
            (1) a State energy conservation plan established under part 
        D of title III of the Energy Policy and Conservation Act (42 
        U.S.C. 6321 et seq.); or
            (2) the Weatherization Assistance Program for Low-Income 
        Persons established under part A of title IV of the Energy 
        Conservation and Production Act (42 U.S.C. 6861 et seq.).

             TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

                        Subtitle A--Solar Energy

SEC. 601. SHORT TITLE.

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

SEC. 602. THERMAL ENERGY STORAGE RESEARCH AND DEVELOPMENT PROGRAM.

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

SEC. 603. CONCENTRATING SOLAR POWER COMMERCIAL APPLICATION STUDIES.

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

SEC. 604. SOLAR ENERGY CURRICULUM DEVELOPMENT AND CERTIFICATION GRANTS.

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

SEC. 605. DAYLIGHTING SYSTEMS AND DIRECT SOLAR LIGHT PIPE TECHNOLOGY.

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

SEC. 606. SOLAR AIR CONDITIONING RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary shall establish a research, 
development, and demonstration program to promote less costly and more 
reliable decentralized distributed solar-powered air conditioning for 
individuals and businesses.
    (b) Authorized Activities.--Grants made available under this 
section may be used to support the following activities:
            (1) Advancing solar thermal collectors, including 
        concentrating solar thermal and electric systems, flat plate 
        and evacuated tube collector performance.
            (2) Achieving technical and economic integration of solar-
        powered distributed air-conditioning systems with existing hot 
        water and storage systems for residential applications.
            (3) Designing and demonstrating mass manufacturing 
        capability to reduce costs of modular standardized solar-
        powered distributed air conditioning systems and components.
            (4) Improving the efficiency of solar-powered distributed 
        air-conditioning to increase the effectiveness of solar-powered 
        absorption chillers, solar-driven compressors and condensors, 
        and cost-effective precooling approaches.
            (5) Researching and comparing performance of solar-powered 
        distributed air conditioning systems in different regions of 
        the country, including potential integration with other onsite 
        systems, such as solar, biogas, geothermal heat pumps, and 
        propane assist or combined propane fuel cells, with a goal to 
        develop site-specific energy production and management systems 
        that ease fuel and peak utility loading.
    (c) Cost Sharing.--Section 988 of the Energy Policy Act of 2005 (42 
U.S.C. 16352) shall apply to a project carried out under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $2,500,000 
for each of the fiscal years 2008 through 2012.

SEC. 607. PHOTOVOLTAIC DEMONSTRATION PROGRAM.

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

                     Subtitle B--Geothermal Energy

SEC. 611. SHORT TITLE.

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

SEC. 612. DEFINITIONS.

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

SEC. 613. HYDROTHERMAL RESEARCH AND DEVELOPMENT.

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

SEC. 614. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

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

SEC. 615. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary shall support a program of research, 
development, demonstration, and commercial application for enhanced 
geothermal systems, including the programs described in subsection (b).
    (b) Programs.--
            (1) Enhanced geothermal systems technologies.--The 
        Secretary shall support a program of research, development, 
        demonstration, and commercial application of the technologies 
        and knowledge necessary for enhanced geothermal systems to 
        advance to a state of commercial readiness, including advances 
        in--
                    (A) reservoir stimulation;
                    (B) reservoir characterization, monitoring, and 
                modeling;
                    (C) stress mapping;
                    (D) tracer development;
                    (E) three-dimensional tomography; and
                    (F) understanding seismic effects of reservoir 
                engineering and stimulation.
            (2) Enhanced geothermal systems reservoir stimulation.--
                    (A) Program.--In collaboration with industry 
                partners, the Secretary shall support a program of 
                research, development, and demonstration of enhanced 
                geothermal systems reservoir stimulation technologies 
                and techniques. A minimum of 4 sites shall be selected 
                in locations that show particular promise for enhanced 
                geothermal systems development. Each site shall--
                            (i) represent a different class of 
                        subsurface geologic environments; and
                            (ii) take advantage of an existing site 
                        where subsurface characterization has been 
                        conducted or existing drill holes can be 
                        utilized, if possible.
                    (B) Consideration of existing site.--The Desert 
                Peak, Nevada, site, where a Department of Energy and 
                industry cooperative enhanced geothermal systems 
                project is already underway, may be considered for 
                inclusion among the sites selected under subparagraph 
                (A).

SEC. 616. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS FIELDS AND 
              RECOVERY AND PRODUCTION OF GEOPRESSURED GAS RESOURCES.

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

SEC. 617. COST SHARING AND PROPOSAL EVALUATION.

    (a) Federal Share.--The Federal share of costs of projects funded 
under this subtitle shall be in accordance with section 988 of the 
Energy Policy Act of 2005.
    (b) Organization and Administration of Programs.--Programs under 
this subtitle shall incorporate the following elements:
            (1) The Secretary shall coordinate with, and where 
        appropriate may provide funds in furtherance of the purposes of 
        this subtitle to, other Department of Energy research and 
        development programs focused on drilling, subsurface 
        characterization, and other related technologies.
            (2) In evaluating proposals, the Secretary shall give 
        priority to proposals that demonstrate clear evidence of 
        employing a systems approach.
            (3) The Secretary shall coordinate and consult with the 
        appropriate Federal land management agencies in selecting 
        proposals for funding under this subtitle.
            (4) Nothing in this subtitle shall be construed to alter or 
        affect any law relating to the management or protection of 
        Federal lands.

SEC. 618. CENTER FOR GEOTHERMAL TECHNOLOGY TRANSFER.

    (a) In General.--The Secretary shall award to an institution of 
higher education (or consortium thereof) a grant to establish a Center 
for Geothermal Technology Transfer (referred to in this section as the 
``Center'').
    (b) Duties.--The Center shall--
            (1) serve as an information clearinghouse for the 
        geothermal industry by collecting and disseminating information 
        on best practices in all areas relating to developing and 
        utilizing geothermal resources;
            (2) make data collected by the Center available to the 
        public; and
            (3) seek opportunities to coordinate efforts and share 
        information with domestic and international partners engaged in 
        research and development of geothermal systems and related 
        technology.
    (c) Selection Criteria.--In awarding the grant under subsection (a) 
the Secretary shall select an institution of higher education (or 
consortium thereof) best suited to provide national leadership on 
geothermal related issues and perform the duties enumerated under 
subsection (b).
    (d) Duration of Grant.--A grant made under subsection (a)--
            (1) shall be for an initial period of 5 years; and
            (2) may be renewed for additional 5-year periods on the 
        basis of--
                    (A) satisfactory performance in meeting the duties 
                outlined in subsection (b); and
                    (B) any other requirements specified by the 
                Secretary.

SEC. 619. GEOPOWERING AMERICA.

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

SEC. 620. EDUCATIONAL PILOT PROGRAM.

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

SEC. 621. REPORTS.

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

SEC. 622. APPLICABILITY OF OTHER LAWS.

    Nothing in this subtitle shall be construed as waiving, modifying, 
or superseding the applicability of any requirement under any 
environmental or other Federal or State law. To the extent that 
activities authorized in this subtitle take place in coastal and ocean 
areas, the Secretary shall consult with the Secretary of Commerce, 
acting through the Under Secretary of Commerce for Oceans and 
Atmosphere, regarding the potential marine environmental impacts and 
measures to address such impacts.

SEC. 623. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to carry 
out this subtitle $90,000,000 for each of the fiscal years 2008 through 
2012, of which $10,000,000 for each fiscal year shall be for carrying 
out section 616. There are also authorized to be appropriated to the 
Secretary for the Intermountain West Geothermal Consortium $5,000,000 
for each of the fiscal years 2008 through 2012.

SEC. 624. INTERNATIONAL GEOTHERMAL ENERGY DEVELOPMENT.

    (a) In General.--The Secretary of Energy, in coordination with 
other appropriate Federal and multilateral agencies (including the 
United States Agency for International Development) shall support 
international collaborative efforts to promote the research, 
development, and deployment of geothermal technologies used to develop 
hydrothermal and enhanced geothermal system resources, including as 
partners (as appropriate) the African Rift Geothermal Development 
Facility, Australia, China, France, the Republic of Iceland, India, 
Japan, and the United Kingdom.
    (b) United States Trade and Development Agency.--The Director of 
the United States Trade and Development Agency may--
            (1) encourage participation by United States firms in 
        actions taken to carry out subsection (a); and
            (2) provide grants and other financial support for 
        feasibility and resource assessment studies conducted in, or 
        intended to benefit, less developed countries.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2008 through 2012.

SEC. 625. HIGH COST REGION GEOTHERMAL ENERGY GRANT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a utility;
                    (B) an electric cooperative;
                    (C) a State;
                    (D) a political subdivision of a State;
                    (E) an Indian tribe; or
                    (F) a Native corporation.
            (2) High-cost region.--The term ``high-cost region'' means 
        a region in which the average cost of electrical power exceeds 
        150 percent of the national average retail cost, as determined 
        by the Secretary.
    (b) Program.--The Secretary shall use amounts made available to 
carry out this section to make grants to eligible entities for 
activities described in subsection (c).
    (c) Eligible Activities.--An eligible entity may use grant funds 
under this section, with respect to a geothermal energy project in a 
high-cost region, only--
            (1) to conduct a feasibility study, including a study of 
        exploration, geochemical testing, geomagnetic surveys, geologic 
        information gathering, baseline environmental studies, well 
        drilling, resource characterization, permitting, and economic 
        analysis;
            (2) for design and engineering costs, relating to the 
        project; and
            (3) to demonstrate and promote commercial application of 
        technologies related to geothermal energy as part of the 
        project.
    (d) Cost Sharing.--The cost-sharing requirements of section 988 of 
the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to any 
project carried out under this section.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

   Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies

SEC. 631. SHORT TITLE.

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

SEC. 632. DEFINITION.

    For purposes of this subtitle, the term ``marine and hydrokinetic 
renewable energy'' means electrical energy from--:
            (1) waves, tides, and currents in oceans, estuaries, and 
        tidal areas;
            (2) free flowing water in rivers, lakes, and streams;
            (3) free flowing water in man-made channels; and
            (4) differentials in ocean temperature (ocean thermal 
        energy conversion).
The term ``marine and hydrokinetic renewable energy'' does not include 
energy from any source that uses a dam, diversionary structure, or 
impoundment for electric power purposes.

SEC. 633. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH AND 
              DEVELOPMENT.

    (a) In General.--The Secretary, in consultation with the Secretary 
of the Interior and the Secretary of Commerce, acting through the Under 
Secretary of Commerce for Oceans and Atmosphere, shall establish a 
program of research, development, demonstration, and commercial 
application to expand marine and hydrokinetic renewable energy 
production, including programs to--
            (1) study and compare existing marine and hydrokinetic 
        renewable energy technologies;
            (2) research, develop, and demonstrate marine and 
        hydrokinetic renewable energy systems and technologies;
            (3) reduce the manufacturing and operation costs of marine 
        and hydrokinetic renewable energy technologies;
            (4) investigate efficient and reliable integration with the 
        utility grid and intermittency issues;
            (5) advance wave forecasting technologies;
            (6) conduct experimental and numerical modeling for 
        optimization of marine energy conversion devices and arrays;
            (7) increase the reliability and survivability of marine 
        and hydrokinetic renewable energy technologies, including 
        development of corrosive-resistant materials;
            (8) identify, in conjunction with the Secretary of 
        Commerce, acting through the Under Secretary of Commerce for 
        Oceans and Atmosphere, and other Federal agencies as 
        appropriate, the potential environmental impacts, including 
        potential impacts on fisheries and other marine resources, of 
        marine and hydrokinetic renewable energy technologies, measures 
        to prevent adverse impacts, and technologies and other means 
        available for monitoring and determining environmental impacts;
            (9) identify, in conjunction with the Secretary of the 
        Department in which the United States Coast Guard is operating, 
        acting through the Commandant of the United States Coast Guard, 
        the potential navigational impacts of marine and hydrokinetic 
        renewable energy technologies and measures to prevent adverse 
        impacts on navigation;
            (10) develop power measurement standards for marine and 
        hydrokinetic renewable energy;
            (11) develop identification standards for marine and 
        hydrokinetic renewable energy devices;
            (12) address standards development, demonstration, and 
        technology transfer for advanced systems engineering and system 
        integration methods to identify critical interfaces;
            (13) identifying opportunities for cross fertilization and 
        development of economies of scale between other renewable 
        sources and marine and hydrokinetic renewable energy sources; 
        and
            (14) providing public information and opportunity for 
        public comment concerning all technologies.
    (b) Report.--Not later than 18 months after the date of enactment 
of this Act, the Secretary, in conjunction with the Secretary of 
Commerce, acting through the Undersecretary of Commerce for Oceans and 
Atmosphere, and the Secretary of the Interior, shall provide to the 
Congress a report that addresses--
            (1) the potential environmental impacts, including impacts 
        to fisheries and marine resources, of marine and hydrokinetic 
        renewable energy technologies;
            (2) options to prevent adverse environmental impacts;
            (3) the potential role of monitoring and adaptive 
        management in identifying and addressing any adverse 
        environmental impacts; and
            (4) the necessary components of such an adaptive management 
        program.

SEC. 634. NATIONAL MARINE RENEWABLE ENERGY RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION CENTERS.

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

SEC. 635. APPLICABILITY OF OTHER LAWS.

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

SEC. 636. AUTHORIZATION OF APPROPRIATIONS.

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

    Subtitle D--Energy Storage for Transportation and Electric Power

SEC. 641. ENERGY STORAGE COMPETITIVENESS.

    (a) Short Title.--This section may be cited as the ``United States 
Energy Storage Competitiveness Act of 2007''.
    (b) Definitions.--In this section:
            (1) Council.--The term ``Council'' means the Energy Storage 
        Advisory Council established under subsection (e).
            (2) Compressed air energy storage.--The term ``compressed 
        air energy storage'' means, in the case of an electricity grid 
        application, the storage of energy through the compression of 
        air.
            (3) Electric drive vehicle.--The term ``electric drive 
        vehicle'' means--
                    (A) a vehicle that uses an electric motor for all 
                or part of the motive power of the vehicle, including 
                battery electric, hybrid electric, plug-in hybrid 
                electric, fuel cell, and plug-in fuel cell vehicles and 
                rail transportation vehicles; or
                    (B) mobile equipment that uses an electric motor to 
                replace an internal combustion engine for all or part 
                of the work of the equipment.
            (4) Islanding.--The term ``islanding'' means a distributed 
        generator or energy storage device continuing to power a 
        location in the absence of electric power from the primary 
        source.
            (5) Flywheel.--The term ``flywheel'' means, in the case of 
        an electricity grid application, a device used to store 
        rotational kinetic energy.
            (6) Microgrid.--The term ``microgrid'' means an integrated 
        energy system consisting of interconnected loads and 
        distributed energy resources (including generators and energy 
        storage devices), which as an integrated system can operate in 
        parallel with the utility grid or in an intentional islanding 
        mode.
            (7) Self-healing grid.--The term ``self-healing grid'' 
        means a grid that is capable of automatically anticipating and 
        responding to power system disturbances (including the 
        isolation of failed sections and components), while optimizing 
        the performance and service of the grid to customers.
            (8) Spinning reserve services.--The term ``spinning reserve 
        services'' means a quantity of electric generating capacity in 
        excess of the quantity needed to meet peak electric demand.
            (9) Ultracapacitor.--The term ``ultracapacitor'' means an 
        energy storage device that has a power density comparable to a 
        conventional capacitor but is capable of exceeding the energy 
        density of a conventional capacitor by several orders of 
        magnitude.
    (c) Program.--The Secretary shall carry out a research, 
development, and demonstration program to support the ability of the 
United States to remain globally competitive in energy storage systems 
for electric drive vehicles, stationary applications, and electricity 
transmission and distribution.
    (d) Coordination.--In carrying out the activities of this section, 
the Secretary shall coordinate relevant efforts with appropriate 
Federal agencies, including the Department of Transportation.
    (e) Energy Storage Advisory Council.--
            (1) Establishment.--Not later than 90 days after the date 
        of enactment of this Act, the Secretary shall establish an 
        Energy Storage Advisory Council.
            (2) Composition.--
                    (A) In general.--Subject to subparagraph (B), the 
                Council shall consist of not less than 15 individuals 
                appointed by the Secretary, based on recommendations of 
                the National Academy of Sciences.
                    (B) Energy storage industry.--The Council shall 
                consist primarily of representatives of the energy 
                storage industry of the United States.
                    (C) Chairperson.--The Secretary shall select a 
                Chairperson for the Council from among the members 
                appointed under subparagraph (A).
            (3) Meetings.--
                    (A) In general.--The Council shall meet not less 
                than once a year.
                    (B) Federal advisory committee act.--The Federal 
                Advisory Committee Act (5 U.S.C. App.) shall apply to a 
                meeting of the Council.
            (4) Plans.--No later than 1 year after the date of 
        enactment of this Act and every 5 years thereafter, the 
        Council, in conjunction with the Secretary, shall develop a 5-
        year plan for integrating basic and applied research so that 
        the United States retains a globally competitive domestic 
        energy storage industry for electric drive vehicles, stationary 
        applications, and electricity transmission and distribution.
            (5) Review.--The Council shall--
                    (A) assess, every 2 years, the performance of the 
                Department in meeting the goals of the plans developed 
                under paragraph (4); and
                    (B) make specific recommendations to the Secretary 
                on programs or activities that should be established or 
                terminated to meet those goals.
    (f) Basic Research Program.--
            (1) Basic research.--The Secretary shall conduct a basic 
        research program on energy storage systems to support electric 
        drive vehicles, stationary applications, and electricity 
        transmission and distribution, including--
                    (A) materials design;
                    (B) materials synthesis and characterization;
                    (C) electrode-active materials, including 
                electrolytes and bioelectrolytes;
                    (D) surface and interface dynamics;
                    (E) modeling and simulation; and
                    (F) thermal behavior and life degradation 
                mechanisms.
            (2) Nanoscience centers.--The Secretary, in cooperation 
        with the Council, shall coordinate the activities of the 
        nanoscience centers of the Department to help the energy 
        storage research centers of the Department maintain a globally 
        competitive posture in energy storage systems for electric 
        drive vehicles, stationary applications, and electricity 
        transmission and distribution.
            (3) Funding.--For activities carried out under this 
        subsection, in addition to funding activities at National 
        Laboratories, the Secretary shall award funds to, and 
        coordinate activities with, a range of stakeholders including 
        the public, private, and academic sectors.
    (g) Applied Research Program.--
            (1) In general.--The Secretary shall conduct an applied 
        research program on energy storage systems to support electric 
        drive vehicles, stationary applications, and electricity 
        transmission and distribution technologies, including--
                    (A) ultracapacitors;
                    (B) flywheels;
                    (C) batteries and battery systems (including flow 
                batteries);
                    (D) compressed air energy systems;
                    (E) power conditioning electronics;
                    (F) manufacturing technologies for energy storage 
                systems;
                    (G) thermal management systems; and
                    (H) hydrogen as an energy storage medium.
            (2) Funding.--For activities carried out under this 
        subsection, in addition to funding activities at National 
        Laboratories, the Secretary shall provide funds to, and 
        coordinate activities with, a range of stakeholders, including 
        the public, private, and academic sectors.
    (h) Energy Storage Research Centers.--
            (1) In general.--The Secretary shall establish, through 
        competitive bids, not more than 4 energy storage research 
        centers to translate basic research into applied technologies 
        to advance the capability of the United States to maintain a 
        globally competitive posture in energy storage systems for 
        electric drive vehicles, stationary applications, and 
        electricity transmission and distribution.
            (2) Program management.--The centers shall be managed by 
        the Under Secretary for Science of the Department.
            (3) Participation agreements.--As a condition of 
        participating in a center, a participant shall enter into a 
        participation agreement with the center that requires that 
        activities conducted by the participant for the center promote 
        the goal of enabling the United States to compete successfully 
        in global energy storage markets.
            (4) Plans.--A center shall conduct activities that promote 
        the achievement of the goals of the plans of the Council under 
        subsection (e)(4).
            (5) National laboratories.--A national laboratory (as 
        defined in section 2 of the Energy Policy Act of 2005 (42 
        U.S.C. 15801)) may participate in a center established under 
        this subsection, including a cooperative research and 
        development agreement (as defined in section 12(d) of the 
        Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
        3710a(d))).
            (6) Disclosure.--Section 623 of the Energy Policy Act of 
        1992 (42 U.S.C. 13293) may apply to any project carried out 
        through a grant, contract, or cooperative agreement under this 
        subsection.
            (7) Intellectual property.--In accordance with section 
        202(a)(ii) of title 35, United States Code, section 152 of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9 of 
        the Federal Nonnuclear Energy Research and Development Act of 
        1974 (42 U.S.C. 5908), the Secretary may require, for any new 
        invention developed under this subsection, that--
                    (A) if an industrial participant is active in a 
                energy storage research center established under this 
                subsection relating to the advancement of energy 
                storage technologies carried out, in whole or in part, 
                with Federal funding, the industrial participant be 
                granted the first option to negotiate with the 
                invention owner, at least in the field of energy 
                storage technologies, nonexclusive licenses, and 
                royalties on terms that are reasonable, as determined 
                by the Secretary;
                    (B) if 1 or more industry participants are active 
                in a center, during a 2-year period beginning on the 
                date on which an invention is made--
                            (i) the patent holder shall not negotiate 
                        any license or royalty agreement with any 
                        entity that is not an industrial participant 
                        under this subsection; and
                            (ii) the patent holder shall negotiate 
                        nonexclusive licenses and royalties in good 
                        faith with any interested industrial 
                        participant under this subsection; and
                    (C) the new invention be developed under such other 
                terms as the Secretary determines to be necessary to 
                promote the accelerated commercialization of inventions 
                made under this subsection to advance the capability of 
                the United States to successfully compete in global 
                energy storage markets.
    (i) Energy Storage Systems Demonstrations.--
            (1) In general.--The Secretary shall carry out a program of 
        new demonstrations of advanced energy storage systems.
            (2) Scope.--The demonstrations shall--
                    (A) be regionally diversified; and
                    (B) expand on the existing technology demonstration 
                program of the Department.
            (3) Stakeholders.--In carrying out the demonstrations, the 
        Secretary shall, to the maximum extent practicable, include the 
        participation of a range of stakeholders, including--
                    (A) rural electric cooperatives;
                    (B) investor owned utilities;
                    (C) municipally owned electric utilities;
                    (D) energy storage systems manufacturers;
                    (E) electric drive vehicle manufacturers;
                    (F) the renewable energy production industry;
                    (G) State or local energy offices;
                    (H) the fuel cell industry; and
                    (I) institutions of higher education.
            (4) Objectives.--Each of the demonstrations shall include 1 
        or more of the following:
                    (A) Energy storage to improve the feasibility of 
                microgrids or islanding, or transmission and 
                distribution capability, to improve reliability in 
                rural areas.
                    (B) Integration of an energy storage system with a 
                self-healing grid.
                    (C) Use of energy storage to improve security to 
                emergency response infrastructure and ensure 
                availability of emergency backup power for consumers.
                    (D) Integration with a renewable energy production 
                source, at the source or away from the source.
                    (E) Use of energy storage to provide ancillary 
                services, such as spinning reserve services, for grid 
                management.
                    (F) Advancement of power conversion systems to make 
                the systems smarter, more efficient, able to 
                communicate with other inverters, and able to control 
                voltage.
                    (G) Use of energy storage to optimize transmission 
                and distribution operation and power quality, which 
                could address overloaded lines and maintenance of 
                transformers and substations.
                    (H) Use of advanced energy storage for peak load 
                management of homes, businesses, and the grid.
                    (I) Use of energy storage devices to store energy 
                during nonpeak generation periods to make better use of 
                existing grid assets.
    (j) Vehicle Energy Storage Demonstration.--
            (1) In general.--The Secretary shall carry out a program of 
        electric drive vehicle energy storage technology 
        demonstrations.
            (2) Consortia.--The technology demonstrations shall be 
        conducted through consortia, which may include--
                    (A) energy storage systems manufacturers and 
                suppliers of the manufacturers;
                    (B) electric drive vehicle manufacturers;
                    (C) rural electric cooperatives;
                    (D) investor owned utilities;
                    (E) municipal and rural electric utilities;
                    (F) State and local governments;
                    (G) metropolitan transportation authorities; and
                    (H) institutions of higher education.
            (3) Objectives.--The program shall demonstrate 1 or more of 
        the following:
                    (A) Novel, high capacity, high efficiency energy 
                storage, charging, and control systems, along with the 
                collection of data on performance characteristics, such 
                as battery life, energy storage capacity, and power 
                delivery capacity.
                    (B) Advanced onboard energy management systems and 
                highly efficient battery cooling systems.
                    (C) Integration of those systems on a prototype 
                vehicular platform, including with drivetrain systems 
                for passenger, commercial, and nonroad electric drive 
                vehicles.
                    (D) New technologies and processes that reduce 
                manufacturing costs.
                    (E) Integration of advanced vehicle technologies 
                with electricity distribution system and smart metering 
                technology.
                    (F) Control systems that minimize emissions 
                profiles in cases in which clean diesel engines are 
                part of a plug-in hybrid drive system.
    (k) Secondary Applications and Disposal of Electric Drive Vehicle 
Batteries.--The Secretary shall carry out a program of research, 
development, and demonstration of--
            (1) secondary applications of energy storage devices 
        following service in electric drive vehicles; and
            (2) technologies and processes for final recycling and 
        disposal of the devices.
    (l) Cost Sharing.--The Secretary shall carry out the programs 
established under this section in accordance with section 988 of the 
Energy Policy Act of 2005 (42 U.S.C. 16352).
    (m) Merit Review of Proposals.--The Secretary shall carry out the 
programs established under subsections (i), (j), and (k) in accordance 
with section 989 of the Energy Policy Act of 2005 (42 U.S.C. 16353).
    (n) Coordination and Nonduplication.--To the maximum extent 
practicable, the Secretary shall coordinate activities under this 
section with other programs and laboratories of the Department and 
other Federal research programs.
    (o) Review by National Academy of Sciences.--On the business day 
that is 5 years after the date of enactment of this Act, the Secretary 
shall offer to enter into an arrangement with the National Academy of 
Sciences to assess the performance of the Department in carrying out 
this section.
    (p) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out--
            (1) the basic research program under subsection (f) 
        $50,000,000 for each of fiscal years 2009 through 2018;
            (2) the applied research program under subsection (g) 
        $80,000,000 for each of fiscal years 2009 through 2018; and;
            (3) the energy storage research center program under 
        subsection (h) $100,000,000 for each of fiscal years 2009 
        through 2018;
            (4) the energy storage systems demonstration program under 
        subsection (i) $30,000,000 for each of fiscal years 2009 
        through 2018;
            (5) the vehicle energy storage demonstration program under 
        subsection (j) $30,000,000 for each of fiscal years 2009 
        through 2018; and
            (6) the secondary applications and disposal of electric 
        drive vehicle batteries program under subsection (k) $5,000,000 
        for each of fiscal years 2009 through 2018.

                  Subtitle E--Miscellaneous Provisions

SEC. 651. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary of Energy shall establish a program to 
determine ways in which the weight of motor vehicles could be reduced 
to improve fuel efficiency without compromising passenger safety by 
conducting research, development, and demonstration relating to--
            (1) the development of new materials (including cast metal 
        composite materials formed by autocombustion synthesis) and 
        material processes that yield a higher strength-to-weight ratio 
        or other properties that reduce vehicle weight; and
            (2) reducing the cost of--
                    (A) lightweight materials (including high-strength 
                steel alloys, aluminum, magnesium, metal composites, 
                and carbon fiber reinforced polymer composites) with 
                the properties required for construction of lighter-
                weight vehicles; and
                    (B) materials processing, automated manufacturing, 
                joining, and recycling lightweight materials for high-
                volume applications.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $80,000,000 for the period of 
fiscal years 2008 through 2012.

SEC. 652. COMMERCIAL INSULATION DEMONSTRATION PROGRAM.

    (a) Definitions.--In this section:
            (1) Advanced insulation.--The term ``advanced insulation'' 
        means insulation that has an R value of not less than R35 per 
        inch.
            (2) Covered refrigeration unit.--The term ``covered 
        refrigeration unit'' means any--
                    (A) commercial refrigerated truck;
                    (B) commercial refrigerated trailer; or
                    (C) commercial refrigerator, freezer, or 
                refrigerator-freezer described in section 342(c) of the 
                Energy Policy and Conservation Act (42 U.S.C. 6313(c)).
    (b) Report.--Not later than 90 days after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that includes 
an evaluation of--
            (1) the state of technological advancement of advanced 
        insulation; and
            (2) the projected amount of cost savings that would be 
        generated by implementing advanced insulation into covered 
        refrigeration units.
    (c) Demonstration Program.--
            (1) Establishment.--If the Secretary determines in the 
        report described in subsection (b) that the implementation of 
        advanced insulation into covered refrigeration units would 
        generate an economically justifiable amount of cost savings, 
        the Secretary, in cooperation with manufacturers of covered 
        refrigeration units, shall establish a demonstration program 
        under which the Secretary shall demonstrate the cost-
        effectiveness of advanced insulation.
            (2) Disclosure.--The Secretary may, for a period of up to 
        five years after an award is granted under the demonstration 
        program, exempt from mandatory disclosure under section 552 of 
        title 5, United States Code (popularly known as the Freedom of 
        Information Act) information that the Secretary determines 
        would be a privileged or confidential trade secret or 
        commercial or financial information under subsection (b)(4) of 
        such section if the information had been obtained from a non-
        Government party.
            (3) Cost-sharing.--Section 988 of the Energy Policy Act of 
        2005 (42 U.S.C. 16352) shall apply to any project carried out 
        under this subsection.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $8,000,000 for the period of 
fiscal years 2009 through 2014.

SEC. 653. TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE.

    Section 402(b)(1)(B)(ii) of the Energy Policy Act of 2005 (42 
U.S.C. 15962(b)(1)(B)(ii)) is amended by striking subclause (I) and 
inserting the following:
                                    ``(I)(aa) to remove at least 99 
                                percent of sulfur dioxide; or
                                    ``(bb) to emit not more than 0.04 
                                pound SO<INF>2</INF> per million Btu, 
                                based on a 30-day average;''.

SEC. 654. H-PRIZE.

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

SEC. 655. BRIGHT TOMORROW LIGHTING PRIZES.

    (a) Establishment.--Not later than 1 year after the date of 
enactment of this Act, as part of the program carried out under section 
1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396), the Secretary 
shall establish and award Bright Tomorrow Lighting Prizes for solid 
state lighting in accordance with this section.
    (b) Prize Specifications.--
            (1) 60-watt incandescent replacement lamp prize.--The 
        Secretary shall award a 60-Watt Incandescent Replacement Lamp 
        Prize to an entrant that produces a solid-state light package 
        simultaneously capable of--
                    (A) producing a luminous flux greater than 900 
                lumens;
                    (B) consuming less than or equal to 10 watts;
                    (C) having an efficiency greater than 90 lumens per 
                watt;
                    (D) having a color rendering index greater than 90;
                    (E) having a correlated color temperature of not 
                less than 2,750, and not more than 3,000, degrees 
                Kelvin;
                    (F) having 70 percent of the lumen value under 
                subparagraph (A) exceeding 25,000 hours under typical 
                conditions expected in residential use;
                    (G) having a light distribution pattern similar to 
                a soft 60-watt incandescent A19 bulb;
                    (H) having a size and shape that fits within the 
                maximum dimensions of an A19 bulb in accordance with 
                American National Standards Institute standard C78.20-
                2003, figure C78.20-211;
                    (I) using a single contact medium screw socket; and
                    (J) mass production for a competitive sales 
                commercial market satisfied by producing commercially 
                accepted quality control lots of such units equal to or 
                exceeding the criteria described in subparagraphs (A) 
                through (I).
            (2) PAR type 38 halogen replacement lamp prize.--The 
        Secretary shall award a Parabolic Aluminized Reflector Type 38 
        Halogen Replacement Lamp Prize (referred to in this section as 
        the ``PAR Type 38 Halogen Replacement Lamp Prize'') to an 
        entrant that produces a solid-state-light package 
        simultaneously capable of--
                    (A) producing a luminous flux greater than or equal 
                to 1,350 lumens;
                    (B) consuming less than or equal to 11 watts;
                    (C) having an efficiency greater than 123 lumens 
                per watt;
                    (D) having a color rendering index greater than or 
                equal to 90;
                    (E) having a correlated color coordinate 
                temperature of not less than 2,750, and not more than 
                3,000, degrees Kelvin;
                    (F) having 70 percent of the lumen value under 
                subparagraph (A) exceeding 25,000 hours under typical 
                conditions expected in residential use;
                    (G) having a light distribution pattern similar to 
                a PAR 38 halogen lamp;
                    (H) having a size and shape that fits within the 
                maximum dimensions of a PAR 38 halogen lamp in 
                accordance with American National Standards Institute 
                standard C78-21-2003, figure C78.21-238;
                    (I) using a single contact medium screw socket; and
                    (J) mass production for a competitive sales 
                commercial market satisfied by producing commercially 
                accepted quality control lots of such units equal to or 
                exceeding the criteria described in subparagraphs (A) 
                through (I).
            (3) Twenty-first century lamp prize.--The Secretary shall 
        award a Twenty-First Century Lamp Prize to an entrant that 
        produces a solid-state-light-light capable of--
                    (A) producing a light output greater than 1,200 
                lumens;
                    (B) having an efficiency greater than 150 lumens 
                per watt;
                    (C) having a color rendering index greater than 90;
                    (D) having a color coordinate temperature between 
                2,800 and 3,000 degrees Kelvin; and
                    (E) having a lifetime exceeding 25,000 hours.
    (c) Private Funds.--
            (1) In general.--Subject to paragraph (2), and 
        notwithstanding section 3302 of title 31, United States Code, 
        the Secretary may accept, retain, and use funds contributed by 
        any person, government entity, or organization for purposes of 
        carrying out this subsection--
                    (A) without further appropriation; and
                    (B) without fiscal year limitation.
            (2) Prize competition.--A private source of funding may not 
        participate in the competition for prizes awarded under this 
        section.
    (d) Technical Review.--The Secretary shall establish a technical 
review committee composed of non-Federal officers to review entrant 
data submitted under this section to determine whether the data meets 
the prize specifications described in subsection (b).
    (e) Third Party Administration.--The Secretary may competitively 
select a third party to administer awards under this section.
    (f) Eligibility for Prizes.--To be eligible to be awarded a prize 
under this section--
            (1) in the case of a private entity, the entity shall be 
        incorporated in and maintain a primary place of business in the 
        United States; and
            (2) in the case of an individual (whether participating as 
        a single individual or in a group), the individual shall be a 
        citizen or lawful permanent resident of the United States.
    (g) Award Amounts.--Subject to the availability of funds to carry 
out this section, the amount of--
            (1) the 60-Watt Incandescent Replacement Lamp Prize 
        described in subsection (b)(1) shall be $10,000,000;
            (2) the PAR Type 38 Halogen Replacement Lamp Prize 
        described in subsection (b)(2) shall be $5,000,000; and
            (3) the Twenty-First Century Lamp Prize described in 
        subsection (b)(3) shall be $5,000,000.
    (h) Federal Procurement of Solid-State-Lights.--
            (1) 60-watt incandescent replacement.--Subject to paragraph 
        (3), as soon as practicable after the successful award of the 
        60-Watt Incandescent Replacement Lamp Prize under subsection 
        (b)(1), the Secretary (in consultation with the Administrator 
        of General Services) shall develop governmentwide Federal 
        purchase guidelines with a goal of replacing the use of 60-watt 
        incandescent lamps in Federal Government buildings with a 
        solid-state-light package described in subsection (b)(1) by not 
        later than the date that is 5 years after the date the award is 
        made.
            (2) PAR 38 halogen replacement lamp replacement.--Subject 
        to paragraph (3), as soon as practicable after the successful 
        award of the PAR Type 38 Halogen Replacement Lamp Prize under 
        subsection (b)(2), the Secretary (in consultation with the 
        Administrator of General Services) shall develop governmentwide 
        Federal purchase guidelines with the goal of replacing the use 
        of PAR 38 halogen lamps in Federal Government buildings with a 
        solid-state-light package described in subsection (b)(2) by not 
        later than the date that is 5 years after the date the award is 
        made.
            (3) Waivers.--
                    (A) In general.--The Secretary or the Administrator 
                of General Services may waive the application of 
                paragraph (1) or (2) if the Secretary or Administrator 
                determines that the return on investment from the 
                purchase of a solid-state-light package described in 
                paragraph (1) or (2) of subsection (b), respectively, 
                is cost prohibitive.
                    (B) Report of waiver.--If the Secretary or 
                Administrator waives the application of paragraph (1) 
                or (2), the Secretary or Administrator, respectively, 
                shall submit to Congress an annual report that 
                describes the waiver and provides a detailed 
                justification for the waiver.
    (i) Report.--Not later than 2 years after the date of enactment of 
this Act, and annually thereafter, the Administrator of General 
Services shall submit to the Energy Information Agency a report 
describing the quantity, type, and cost of each lighting product 
purchased by the Federal Government.
    (j) Bright Tomorrow Lighting Award Fund.--
            (1) Establishment.--There is established in the United 
        States Treasury a Bright Tomorrow Lighting permanent fund 
        without fiscal year limitation to award prizes under paragraphs 
        (1), (2), and (3) of subsection (b).
            (2) Sources of funding.--The fund established under 
        paragraph (1) shall accept--
                    (A) fiscal year appropriations; and
                    (B) private contributions authorized under 
                subsection (c).
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 656. RENEWABLE ENERGY INNOVATION MANUFACTURING PARTNERSHIP.

    (a) Establishment.--The Secretary shall carry out a program, to be 
known as the Renewable Energy Innovation Manufacturing Partnership 
Program (referred to in this section as the ``Program''), to make 
assistance awards to eligible entities for use in carrying out 
research, development, and demonstration relating to the manufacturing 
of renewable energy technologies.
    (b) Solicitation.--To carry out the Program, the Secretary shall 
annually conduct a competitive solicitation for assistance awards for 
an eligible project described in subsection (e).
    (c) Program Purposes.--The purposes of the Program are--
            (1) to develop, or aid in the development of, advanced 
        manufacturing processes, materials, and infrastructure;
            (2) to increase the domestic production of renewable energy 
        technology and components; and
            (3) to better coordinate Federal, State, and private 
        resources to meet regional and national renewable energy goals 
        through advanced manufacturing partnerships.
    (d) Eligible Entities.--An entity shall be eligible to receive an 
assistance award under the Program to carry out an eligible project 
described in subsection (e) if the entity is composed of--
            (1) 1 or more public or private nonprofit institutions or 
        national laboratories engaged in research, development, 
        demonstration, or technology transfer, that would participate 
        substantially in the project; and
            (2) 1 or more private entities engaged in the manufacturing 
        or development of renewable energy system components (including 
        solar energy, wind energy, biomass, geothermal energy, energy 
        storage, or fuel cells).
    (e) Eligible Projects.--An eligible entity may use an assistance 
award provided under this section to carry out a project relating to--
            (1) the conduct of studies of market opportunities for 
        component manufacturing of renewable energy systems;
            (2) the conduct of multiyear applied research, development, 
        demonstration, and deployment projects for advanced 
        manufacturing processes, materials, and infrastructure for 
        renewable energy systems; and
            (3) other similar ventures, as approved by the Secretary, 
        that promote advanced manufacturing of renewable technologies.
    (f) Criteria and Guidelines.--The Secretary shall establish 
criteria and guidelines for the submission, evaluation, and funding of 
proposed projects under the Program.
    (g) Cost Sharing.--Section 988 of the Energy Policy Act of 2005 (42 
U.S.C. 16352) shall apply to a project carried out under this section.
    (h) Disclosure.--The Secretary may, for a period of up to five 
years after an award is granted under this section, exempt from 
mandatory disclosure under section 552 of title 5, United States Code 
(popularly known as the Freedom of Information Act) information that 
the Secretary determines would be a privileged or confidential trade 
secret or commercial or financial information under subsection (b)(4) 
of such section if the information had been obtained from a non-
Government party.
    (i) Sense of the Congress.--It is the sense of the Congress that 
the Secretary should ensure that small businesses engaged in renewable 
manufacturing be given priority consideration for the assistance awards 
provided under this section.
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated out of funds already authorized to carry out this section 
$25,000,000 for each of fiscal years 2008 through 2013, to remain 
available until expended.

              TITLE VII--CARBON CAPTURE AND SEQUESTRATION

Subtitle A--Carbon Capture and Sequestration Research, Development, and 
                             Demonstration

SEC. 701. SHORT TITLE.

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

SEC. 702. CARBON CAPTURE AND SEQUESTRATION RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION PROGRAM.

    (a) Amendment.--Section 963 of the Energy Policy Act of 2005 (42 
U.S.C. 16293) is amended--
            (1) in the section heading, by striking ``research and 
        development'' and inserting ``and sequestration research, 
        development, and demonstration'';
            (2) in subsection (a)--
                    (A) by striking ``research and development'' and 
                inserting ``and sequestration research, development, 
                and demonstration''; and
                    (B) by striking ``capture technologies on 
                combustion-based systems'' and inserting ``capture and 
                sequestration technologies related to industrial 
                sources of carbon dioxide'';
            (3) in subsection (b)--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) to expedite and carry out large-scale testing of 
        carbon sequestration systems in a range of geologic formations 
        that will provide information on the cost and feasibility of 
        deployment of sequestration technologies.''; and
            (4) by striking subsection (c) and inserting the following:
    ``(c) Programmatic Activities.--
            ``(1) Fundamental science and engineering research and 
        development and demonstration supporting carbon capture and 
        sequestration technologies and carbon use activities.--
                    ``(A) In general.--The Secretary shall carry out 
                fundamental science and engineering research (including 
                laboratory-scale experiments, numeric modeling, and 
                simulations) to develop and document the performance of 
                new approaches to capture and sequester, or use carbon 
                dioxide to lead to an overall reduction of carbon 
                dioxide emissions.
                    ``(B) Program integration.--The Secretary shall 
                ensure that fundamental research carried out under this 
                paragraph is appropriately applied to energy technology 
                development activities, the field testing of carbon 
                sequestration, and carbon use activities, including--
                            ``(i) development of new or advanced 
                        technologies for the capture and sequestration 
                        of carbon dioxide;
                            ``(ii) development of new or advanced 
                        technologies that reduce the cost and increase 
                        the efficacy of advanced compression of carbon 
                        dioxide required for the sequestration of 
                        carbon dioxide;
                            ``(iii) modeling and simulation of geologic 
                        sequestration field demonstrations;
                            ``(iv) quantitative assessment of risks 
                        relating to specific field sites for testing of 
                        sequestration technologies;
                            ``(v) research and development of new and 
                        advanced technologies for carbon use, including 
                        recycling and reuse of carbon dioxide; and
                            ``(vi) research and development of new and 
                        advanced technologies for the separation of 
                        oxygen from air.
            ``(2) Field validation testing activities.--
                    ``(A) In general.--The Secretary shall promote, to 
                the maximum extent practicable, regional carbon 
                sequestration partnerships to conduct geologic 
                sequestration tests involving carbon dioxide injection 
                and monitoring, mitigation, and verification operations 
                in a variety of candidate geologic settings, 
                including--
                            ``(i) operating oil and gas fields;
                            ``(ii) depleted oil and gas fields;
                            ``(iii) unmineable coal seams;
                            ``(iv) deep saline formations;
                            ``(v) deep geologic systems that may be 
                        used as engineered reservoirs to extract 
                        economical quantities of heat from geothermal 
                        resources of low permeability or porosity; and
                            ``(vi) deep geologic systems containing 
                        basalt formations.
                    ``(B) Objectives.--The objectives of tests 
                conducted under this paragraph shall be--
                            ``(i) to develop and validate geophysical 
                        tools, analysis, and modeling to monitor, 
                        predict, and verify carbon dioxide containment;
                            ``(ii) to validate modeling of geologic 
                        formations;
                            ``(iii) to refine sequestration capacity 
                        estimated for particular geologic formations;
                            ``(iv) to determine the fate of carbon 
                        dioxide concurrent with and following injection 
                        into geologic formations;
                            ``(v) to develop and implement best 
                        practices for operations relating to, and 
                        monitoring of, carbon dioxide injection and 
                        sequestration in geologic formations;
                            ``(vi) to assess and ensure the safety of 
                        operations related to geologic sequestration of 
                        carbon dioxide;
                            ``(vii) to allow the Secretary to 
                        promulgate policies, procedures, requirements, 
                        and guidance to ensure that the objectives of 
                        this subparagraph are met in large-scale 
                        testing and deployment activities for carbon 
                        capture and sequestration that are funded by 
                        the Department of Energy; and
                            ``(viii) to provide information to States, 
                        the Environmental Protection Agency, and other 
                        appropriate entities to support development of 
                        a regulatory framework for commercial-scale 
                        sequestration operations that ensure the 
                        protection of human health and the environment.
            ``(3) Large-scale carbon dioxide sequestration testing.--
                    ``(A) In general.--The Secretary shall conduct not 
                less than 7 initial large-scale sequestration tests, 
                not including the FutureGen project, for geologic 
                containment of carbon dioxide to collect and validate 
                information on the cost and feasibility of commercial 
                deployment of technologies for geologic containment of 
                carbon dioxide. These 7 tests may include any Regional 
                Partnership projects awarded as of the date of 
                enactment of the Department of Energy Carbon Capture 
                and Sequestration Research, Development, and 
                Demonstration Act of 2007.
                    ``(B) Diversity of formations to be studied.--In 
                selecting formations for study under this paragraph, 
                the Secretary shall consider a variety of geologic 
                formations across the United States, and require 
                characterization and modeling of candidate formations, 
                as determined by the Secretary.
                    ``(C) Source of carbon dioxide for large-scale 
                sequestration tests.--In the process of any acquisition 
                of carbon dioxide for sequestration tests under 
                subparagraph (A), the Secretary shall give preference 
                to sources of carbon dioxide from industrial sources. 
                To the extent feasible, the Secretary shall prefer 
                tests that would facilitate the creation of an 
                integrated system of capture, transportation and 
                sequestration of carbon dioxide. The preference 
                provided for under this subparagraph shall not delay 
                the implementation of the large-scale sequestration 
                tests under this paragraph.
                    ``(D) Definition.--For purposes of this paragraph, 
                the term `large-scale' means the injection of more than 
                1,000,000 tons of carbon dioxide from industrial 
                sources annually or a scale that demonstrates the 
                ability to inject and sequester several million metric 
                tons of industrial source carbon dioxide for a large 
                number of years.
            ``(4) Preference in project selection from meritorious 
        proposals.--In making competitive awards under this subsection, 
        subject to the requirements of section 989, the Secretary 
        shall--
                    ``(A) give preference to proposals from 
                partnerships among industrial, academic, and government 
                entities; and
                    ``(B) require recipients to provide assurances that 
                all laborers and mechanics employed by contractors and 
                subcontractors in the construction, repair, or 
                alteration of new or existing facilities performed in 
                order to carry out a demonstration or commercial 
                application activity authorized under this subsection 
                shall be paid wages at rates not less than those 
                prevailing on similar construction in the locality, as 
                determined by the Secretary of Labor in accordance with 
                subchapter IV of chapter 31 of title 40, United States 
                Code, and the Secretary of Labor shall, with respect to 
                the labor standards in this paragraph, have the 
                authority and functions set forth in Reorganization 
                Plan Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C. 
                Appendix) and section 3145 of title 40, United States 
                Code.
            ``(5) Cost sharing.--Activities under this subsection shall 
        be considered research and development activities that are 
        subject to the cost sharing requirements of section 988(b).
            ``(6) Program review and report.--During fiscal year 2011, 
        the Secretary shall--
                    ``(A) conduct a review of programmatic activities 
                carried out under this subsection; and
                    ``(B) make recommendations with respect to 
                continuation of the activities.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $240,000,000 for fiscal year 2008;
            ``(2) $240,000,000 for fiscal year 2009;
            ``(3) $240,000,000 for fiscal year 2010;
            ``(4) $240,000,000 for fiscal year 2011; and
            ``(5) $240,000,000 for fiscal year 2012.''.
    (b) Table of Contents Amendment.--The item relating to section 963 
in the table of contents for the Energy Policy Act of 2005 is amended 
to read as follows:

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

SEC. 703. CARBON CAPTURE.

    (a) Program Establishment.--
            (1) In general.--The Secretary shall carry out a program to 
        demonstrate technologies for the large-scale capture of carbon 
        dioxide from industrial sources. In making awards under this 
        program, the Secretary shall select, as appropriate, a 
        diversity of capture technologies to address the need to 
        capture carbon dioxide from a range of industrial sources.
            (2) Scope of award.--Awards under this section shall be 
        only for the portion of the project that--
                    (A) carries out the large-scale capture (including 
                purification and compression) of carbon dioxide from 
                industrial sources;
                    (B) provides for the transportation and injection 
                of carbon dioxide; and
                    (C) incorporates a comprehensive measurement, 
                monitoring, and validation program.
            (3) Preferences for award.--To ensure reduced carbon 
        dioxide emissions, the Secretary shall take necessary actions 
        to provide for the integration of the program under this 
        paragraph with the large-scale carbon dioxide sequestration 
        tests described in section 963(c)(3) of the Energy Policy Act 
        of 2005 (42 U.S.C. 16293(c)(3)), as added by section 702 of 
        this subtitle. These actions should not delay implementation of 
        these tests. The Secretary shall give priority consideration to 
        projects with the following characteristics:
                    (A) Capacity.--Projects that will capture a high 
                percentage of the carbon dioxide in the treated stream 
                and large volumes of carbon dioxide as determined by 
                the Secretary.
                    (B) Sequestration.--Projects that capture carbon 
                dioxide from industrial sources that are near suitable 
                geological reservoirs and could continue sequestration 
                including--
                            (i) a field testing validation activity 
                        under section 963 of the Energy Policy Act of 
                        2005 (42 U.S.C. 16293), as amended by this Act; 
                        or
                            (ii) other geologic sequestration projects 
                        approved by the Secretary.
            (4) Requirement.--For projects that generate carbon dioxide 
        that is to be sequestered, the carbon dioxide stream shall be 
        of a sufficient purity level to allow for safe transport and 
        sequestration.
            (5) Cost-sharing.--The cost-sharing requirements of section 
        988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) for 
        research and development projects shall apply to this section.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $200,000,000 
per year for fiscal years 2009 through 2013.

SEC. 704. REVIEW OF LARGE-SCALE PROGRAMS.

    The Secretary shall enter into an arrangement with the National 
Academy of Sciences for an independent review and oversight, beginning 
in 2011, of the programs under section 963(c)(3) of the Energy Policy 
Act of 2005 (42 U.S.C. 16293(c)(3)), as added by section 702 of this 
subtitle, and under section 703 of this subtitle, to ensure that the 
benefits of such programs are maximized. Not later than January 1, 
2012, the Secretary shall transmit to the Congress a report on the 
results of such review and oversight.

SEC. 705. GEOLOGIC SEQUESTRATION TRAINING AND RESEARCH.

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

SEC. 706. RELATION TO SAFE DRINKING WATER ACT.

    The injection and geologic sequestration of carbon dioxide pursuant 
to this subtitle and the amendments made by this subtitle shall be 
subject to the requirements of the Safe Drinking Water Act (42 U.S.C. 
300f et seq.), including the provisions of part C of such Act (42 
U.S.C. 300h et seq.; relating to protection of underground sources of 
drinking water). Nothing in this subtitle and the amendments made by 
this subtitle imposes or authorizes the promulgation of any requirement 
that is inconsistent or in conflict with the requirements of the Safe 
Drinking Water Act (42 U.S.C. 300f et seq.) or regulations thereunder.

SEC. 707. SAFETY RESEARCH.

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

SEC. 708. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.

    (a) Establishment.--The Secretary, in consultation with other 
appropriate agencies, shall establish a university based research and 
development program to study carbon capture and sequestration using the 
various types of coal.
    (b) Rural and Agricultural Institutions.--The Secretary shall give 
special consideration to rural or agricultural based institutions in 
areas that have regional sources of coal and that offer 
interdisciplinary programs in the area of environmental science to 
study carbon capture and sequestration.
    (c) Authorization of Appropriations.--There are to be authorized to 
be appropriated $10,000,000 to carry out this section.

 Subtitle B--Carbon Capture and Sequestration Assessment and Framework

SEC. 711. CARBON DIOXIDE SEQUESTRATION CAPACITY ASSESSMENT.

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

SEC. 712. ASSESSMENT OF CARBON SEQUESTRATION AND METHANE AND NITROUS 
              OXIDE EMISSIONS FROM ECOSYSTEMS.

    (a) Definitions.--In this section:
            (1) Adaptation strategy.--The term ``adaptation strategy'' 
        means a land use and management strategy that can be used--
                    (A) to increase the sequestration capabilities of 
                covered greenhouse gases of any ecosystem; or
                    (B) to reduce the emissions of covered greenhouse 
                gases from any ecosystem.
            (2) Assessment.--The term ``assessment'' means the national 
        assessment authorized under subsection (b).
            (3) Covered greenhouse gas.--The term ``covered greenhouse 
        gas'' means carbon dioxide, nitrous oxide, and methane gas.
            (4) Ecosystem.--The term ``ecosystem'' means any 
        terrestrial, freshwater aquatic, or coastal ecosystem, 
        including an estuary.
            (5) Native plant species.--The term ``native plant 
        species'' means any noninvasive, naturally occurring plant 
        species within an ecosystem.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
    (b) Authorization of Assessment.--Not later than 2 years after the 
date on which the final methodology is published under subsection 
(f)(3)(D), the Secretary shall complete a national assessment of--
            (1) the quantity of carbon stored in and released from 
        ecosystems, including from man-caused and natural fires; and
            (2) the annual flux of covered greenhouse gases in and out 
        of ecosystems.
    (c) Components.--In conducting the assessment under subsection (b), 
the Secretary shall--
            (1) determine the processes that control the flux of 
        covered greenhouse gases in and out of each ecosystem;
            (2) estimate the potential for increasing carbon 
        sequestration in natural and managed ecosystems through 
        management activities or restoration activities in each 
        ecosystem;
            (3) develop near-term and long-term adaptation strategies 
        or mitigation strategies that can be employed--
                    (A) to enhance the sequestration of carbon in each 
                ecosystem;
                    (B) to reduce emissions of covered greenhouse gases 
                from ecosystems; and
                    (C) to adapt to climate change; and
            (4) estimate the annual carbon sequestration capacity of 
        ecosystems under a range of policies in support of management 
        activities to optimize sequestration.
    (d) Use of Native Plant Species.--In developing restoration 
activities under subsection (c)(2) and management strategies and 
adaptation strategies under subsection (c)(3), the Secretary shall 
emphasize the use of native plant species (including mixtures of many 
native plant species) for sequestering covered greenhouse gas in each 
ecosystem.
    (e) Consultation.--
            (1) In general.--In conducting the assessment under 
        subsection (b) and developing the methodology under subsection 
        (f), the Secretary shall consult with--
                    (A) the Secretary of Energy;
                    (B) the Secretary of Agriculture;
                    (C) the Administrator of the Environmental 
                Protection Agency;
                    (D) the Secretary of Commerce, acting through the 
                Under Secretary for Oceans and Atmosphere; and
                    (E) the heads of other relevant agencies.
            (2) Ocean and coastal ecosystems.--In carrying out this 
        section with respect to ocean and coastal ecosystems (including 
        estuaries), the Secretary shall work jointly with the Secretary 
        of Commerce, acting through the Under Secretary for Oceans and 
        Atmosphere.
    (f) Methodology.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall develop a 
        methodology for conducting the assessment.
            (2) Requirements.--The methodology developed under 
        paragraph (1)--
                    (A) shall--
                            (i) determine the method for measuring, 
                        monitoring, and quantifying covered greenhouse 
                        gas emissions and reductions;
                            (ii) estimate the total capacity of each 
                        ecosystem to sequester carbon; and
                            (iii) estimate the ability of each 
                        ecosystem to reduce emissions of covered 
                        greenhouse gases through management practices; 
                        and
                    (B) may employ economic and other systems models, 
                analyses, and estimates, to be developed in 
                consultation with each of the individuals described in 
                subsection (e).
            (3) External review and publication.--On completion of a 
        proposed methodology, the Secretary shall--
                    (A) publish the proposed methodology;
                    (B) at least 60 days before the date on which the 
                final methodology is published, solicit comments from--
                            (i) the public; and
                            (ii) heads of affected Federal and State 
                        agencies;
                    (C) establish a panel to review the proposed 
                methodology published under subparagraph (A) and any 
                comments received under subparagraph (B), to be 
                composed of members--
                            (i) with expertise in the matters described 
                        in subsections (c) and (d); and
                            (ii) that are, as appropriate, 
                        representatives of Federal agencies, 
                        institutions of higher education, 
                        nongovernmental organizations, State 
                        organizations, industry, and international 
                        organizations; and
                    (D) on completion of the review under subparagraph 
                (C), publish in the Federal register the revised final 
                methodology.
    (g) Estimate; Review.--The Secretary shall--
            (1) based on the assessment, prescribe the data, 
        information, and analysis needed to establish a scientifically 
        sound estimate of the carbon sequestration capacity of relevant 
        ecosystems; and
            (2) not later than 180 days after the date on which the 
        assessment is completed, submit to the heads of applicable 
        Federal agencies and the appropriate committees of Congress a 
        report that describes the results of the assessment.
    (h) Data and Report Availability.--On completion of the assessment, 
the Secretary shall incorporate the results of the assessment into a 
web-accessible database for public use.
    (i) Authorization.--There is authorized to be appropriated to carry 
out this section $20,000,000 for the period of fiscal years 2008 
through 2012.

SEC. 713. CARBON DIOXIDE SEQUESTRATION INVENTORY.

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

SEC. 714. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION ON PUBLIC LAND.

    (a) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of the Interior shall submit to the Committee 
on Natural Resources of the House of Representatives and the Committee 
on Energy and Natural Resources of the Senate a report on a recommended 
framework for managing geological carbon sequestration activities on 
public land.
    (b) Contents.--The report required by subsection (a) shall include 
the following:
            (1) Recommended criteria for identifying candidate 
        geological sequestration sites in each of the following types 
        of geological settings:
                    (A) Operating oil and gas fields.
                    (B) Depleted oil and gas fields.
                    (C) Unmineable coal seams.
                    (D) Deep saline formations.
                    (E) Deep geological systems that may be used as 
                engineered reservoirs to extract economical quantities 
                of heat from geothermal resources of low permeability 
                or porosity.
                    (F) Deep geological systems containing basalt 
                formations.
                    (G) Coalbeds being used for methane recovery.
            (2) A proposed regulatory framework for the leasing of 
        public land or an interest in public land for the long-term 
        geological sequestration of carbon dioxide, which includes an 
        assessment of options to ensure that the United States receives 
        fair market value for the use of public land or an interest in 
        public land for geological sequestration.
            (3) A proposed procedure for ensuring that any geological 
        carbon sequestration activities on public land--
                    (A) provide for public review and comment from all 
                interested persons; and
                    (B) protect the quality of natural and cultural 
                resources of the public land overlaying a geological 
                sequestration site.
            (4) A description of the status of Federal leasehold or 
        Federal mineral estate liability issues related to the 
        geological subsurface trespass of or caused by carbon dioxide 
        stored in public land, including any relevant experience from 
        enhanced oil recovery using carbon dioxide on public land.
            (5) Recommendations for additional legislation that may be 
        required to ensure that public land management and leasing laws 
        are adequate to accommodate the long-term geological 
        sequestration of carbon dioxide.
            (6) An identification of the legal and regulatory issues 
        specific to carbon dioxide sequestration on land in cases in 
        which title to mineral resources is held by the United States 
        but title to the surface estate is not held by the United 
        States.
            (7)(A) An identification of the issues specific to the 
        issuance of pipeline rights-of-way on public land under the 
        Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Federal Land 
        Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) for 
        natural or anthropogenic carbon dioxide.
            (B) Recommendations for additional legislation that may be 
        required to clarify the appropriate framework for issuing 
        rights-of-way for carbon dioxide pipelines on public land.
    (c) Consultation With Other Agencies.--In preparing the report 
under this section, the Secretary of the Interior shall coordinate 
with--
            (1) the Administrator of the Environmental Protection 
        Agency;
            (2) the Secretary of Energy; and
            (3) the heads of other appropriate agencies.
    (d) Compliance With Safe Drinking Water Act.--The Secretary shall 
ensure that all recommendations developed under this section are in 
compliance with all Federal environmental laws, including the Safe 
Drinking Water Act (42 U.S.C. 300f et seq.) and regulations under that 
Act.

            TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY

                  Subtitle A--Management Improvements

SEC. 801. NATIONAL MEDIA CAMPAIGN.

    (a) In General.--The Secretary, acting through the Assistant 
Secretary for Energy Efficiency and Renewable Energy (referred to in 
this section as the ``Secretary''), shall develop and conduct a 
national media campaign--
            (1) to increase energy efficiency throughout the economy of 
        the United States during the 10-year period beginning on the 
        date of enactment of this Act;
            (2) to promote the national security benefits associated 
        with increased energy efficiency; and
            (3) to decrease oil consumption in the United States during 
        the 10-year period beginning on the date of enactment of this 
        Act.
    (b) Contract With Entity.--The Secretary shall carry out subsection 
(a) directly or through--
            (1) competitively bid contracts with 1 or more nationally 
        recognized media firms for the development and distribution of 
        monthly television, radio, and newspaper public service 
        announcements; or
            (2) collective agreements with 1 or more nationally 
        recognized institutes, businesses, or nonprofit organizations 
        for the funding, development, and distribution of monthly 
        television, radio, and newspaper public service announcements.
    (c) Use of Funds.--
            (1) In general.--Amounts made available to carry out this 
        section shall be used for--
                    (A) advertising costs, including--
                            (i) the purchase of media time and space;
                            (ii) creative and talent costs;
                            (iii) testing and evaluation of 
                        advertising; and
                            (iv) evaluation of the effectiveness of the 
                        media campaign; and
                    (B) administrative costs, including operational and 
                management expenses.
            (2) Limitations.--In carrying out this section, the 
        Secretary shall allocate not less than 85 percent of funds made 
        available under subsection (e) for each fiscal year for the 
        advertising functions specified under paragraph (1)(A).
    (d) Reports.--The Secretary shall annually submit to Congress a 
report that describes--
            (1) the strategy of the national media campaign and whether 
        specific objectives of the campaign were accomplished, 
        including--
                    (A) determinations concerning the rate of change of 
                energy consumption, in both absolute and per capita 
                terms; and
                    (B) an evaluation that enables consideration of 
                whether the media campaign contributed to reduction of 
                energy consumption;
            (2) steps taken to ensure that the national media campaign 
        operates in an effective and efficient manner consistent with 
        the overall strategy and focus of the campaign;
            (3) plans to purchase advertising time and space;
            (4) policies and practices implemented to ensure that 
        Federal funds are used responsibly to purchase advertising time 
        and space and eliminate the potential for waste, fraud, and 
        abuse; and
            (5) all contracts or cooperative agreements entered into 
        with a corporation, partnership, or individual working on 
        behalf of the national media campaign.
    (e) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this section $5,000,000 for each of fiscal years 2008 
        through 2012.
            (2) Decreased oil consumption.--The Secretary shall use not 
        less than 50 percent of the amount that is made available under 
        this section for each fiscal year to develop and conduct a 
        national media campaign to decrease oil consumption in the 
        United States over the next decade.

SEC. 802. ALASKA NATURAL GAS PIPELINE ADMINISTRATION.

    Section 106 of the Alaska Natural Gas Pipeline Act (15 U.S.C. 720d) 
is amended by adding at the end the following:
    ``(h) Administration.--
            ``(1) Personnel appointments.--
                    ``(A) In general.--The Federal Coordinator may 
                appoint and terminate such personnel as the Federal 
                Coordinator determines to be appropriate.
                    ``(B) Authority of federal coordinator.--Personnel 
                appointed by the Federal Coordinator under subparagraph 
                (A) shall be appointed without regard to the provisions 
                of title 5, United States Code, governing appointments 
                in the competitive service.
            ``(2) Compensation.--
                    ``(A) In general.--Subject to subparagraph (B), 
                personnel appointed by the Federal Coordinator under 
                paragraph (1)(A) shall be paid without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of title 5, United States Code (relating to 
                classification and General Schedule pay rates).
                    ``(B) Maximum level of compensation.--The rate of 
                pay for personnel appointed by the Federal Coordinator 
                under paragraph (1)(A) shall not exceed the maximum 
                level of rate payable for level III of the Executive 
                Schedule (5 U.S.C. 5314).
                    ``(C) Allowances.--Section 5941 of title 5, United 
                States Code, shall apply to personnel appointed by the 
                Federal Coordinator under paragraph (1)(A).
            ``(3) Temporary services.--
                    ``(A) In general.--The Federal Coordinator may 
                procure temporary and intermittent services in 
                accordance with section 3109(b) of title 5, United 
                States Code.
                    ``(B) Maximum level of compensation.--The level of 
                compensation of an individual employed on a temporary 
                or intermittent basis under subparagraph (A) shall not 
                exceed the maximum level of rate payable for level III 
                of the Executive Schedule (5 U.S.C. 5314).
            ``(4) Fees, charges, and commissions.--
                    ``(A) In general.--With respect to the duties of 
                the Federal Coordinator, as described in this Act, the 
                Federal Coordinator shall have similar authority to 
                establish, change, and abolish reasonable filing and 
                service fees, charges, and commissions, require 
                deposits of payments, and provide refunds as provided 
                to the Secretary of the Interior in section 304 of the 
                Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1734).
                    ``(B) Authority of secretary of the interior.--
                Subparagraph (A) shall not affect the authority of the 
                Secretary of the Interior to establish, change, and 
                abolish reasonable filing and service fees, charges, 
                and commissions, require deposits of payments, and 
                provide refunds under section 304 of the Federal Land 
                Policy and Management Act of 1976 (43 U.S.C. 1734).
                    ``(C) Use of funds.--The Federal Coordinator is 
                authorized to use, without further appropriation, 
                amounts collected under subparagraph (A) to carry out 
                this section.''.

SEC. 803. RENEWABLE ENERGY DEPLOYMENT.

    (a) Definitions.--In this section:
            (1) Alaska small hydroelectric power.--The term ``Alaska 
        small hydroelectric power'' means power that--
                    (A) is generated--
                            (i) in the State of Alaska;
                            (ii) without the use of a dam or 
                        impoundment of water; and
                            (iii) through the use of--
                                    (I) a lake tap (but not a perched 
                                alpine lake); or
                                    (II) a run-of-river screened at the 
                                point of diversion; and
                    (B) has a nameplate capacity rating of a wattage 
                that is not more than 15 megawatts.
            (2) Eligible applicant.--The term ``eligible applicant'' 
        means any--
                    (A) governmental entity;
                    (B) private utility;
                    (C) public utility;
                    (D) municipal utility;
                    (E) cooperative utility;
                    (F) Indian tribes; and
                    (G) Regional Corporation (as defined in section 3 
                of the Alaska Native Claims Settlement Act (43 U.S.C. 
                1602)).
            (3) Ocean energy.--
                    (A) Inclusions.--The term ``ocean energy'' includes 
                current, wave, and tidal energy.
                    (B) Exclusion.--The term ``ocean energy'' excludes 
                thermal energy.
            (4) Renewable energy project.--The term ``renewable energy 
        project'' means a project--
                    (A) for the commercial generation of electricity; 
                and
                    (B) that generates electricity from--
                            (i) solar, wind, or geothermal energy or 
                        ocean energy;
                            (ii) biomass (as defined in section 203(b) 
                        of the Energy Policy Act of 2005 (42 U.S.C. 
                        15852(b)));
                            (iii) landfill gas; or
                            (iv) Alaska small hydroelectric power.
    (b) Renewable Energy Construction Grants.--
            (1) In general.--The Secretary shall use amounts 
        appropriated under this section to make grants for use in 
        carrying out renewable energy projects.
            (2) Criteria.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall set forth criteria 
        for use in awarding grants under this section.
            (3) Application.--To receive a grant from the Secretary 
        under paragraph (1), an eligible applicant shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require, 
        including a written assurance that--
                    (A) all laborers and mechanics employed by 
                contractors or subcontractors during construction, 
                alteration, or repair that is financed, in whole or in 
                part, by a grant under this section shall be paid wages 
                at rates not less than those prevailing on similar 
                construction in the locality, as determined by the 
                Secretary of Labor in accordance with sections 3141-
                3144, 3146, and 3147 of title 40, United States Code; 
                and
                    (B) the Secretary of Labor shall, with respect to 
                the labor standards described in this paragraph, have 
                the authority and functions set forth in Reorganization 
                Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 
                3145 of title 40, United States Code.
            (4) Non-federal share.--Each eligible applicant that 
        receives a grant under this subsection shall contribute to the 
        total cost of the renewable energy project constructed by the 
        eligible applicant an amount not less than 50 percent of the 
        total cost of the project.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Fund such sums as are necessary to carry out this 
section.

SEC. 804. COORDINATION OF PLANNED REFINERY OUTAGES.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Energy Information Administration.
            (2) Planned refinery outage.--
                    (A) In general.--The term ``planned refinery 
                outage'' means a removal, scheduled before the date on 
                which the removal occurs, of a refinery, or any unit of 
                a refinery, from service for maintenance, repair, or 
                modification.
                    (B) Exclusion.--The term ``planned refinery 
                outage'' does not include any necessary and unplanned 
                removal of a refinery, or any unit of a refinery, from 
                service as a result of a component failure, safety 
                hazard, emergency, or action reasonably anticipated to 
                be necessary to prevent such events.
            (3) Refined petroleum product.--The term ``refined 
        petroleum product'' means any gasoline, diesel fuel, fuel oil, 
        lubricating oil, liquid petroleum gas, or other petroleum 
        distillate that is produced through the refining or processing 
        of crude oil or an oil derived from tar sands, shale, or coal.
            (4) Refinery.--The term ``refinery'' means a facility used 
        in the production of a refined petroleum product through 
        distillation, cracking, or any other process.
    (b) Review and Analysis of Available Information.--The 
Administrator shall, on an ongoing basis--
            (1) review information on refinery outages that is 
        available from commercial reporting services;
            (2) analyze that information to determine whether the 
        scheduling of a refinery outage may nationally or regionally 
        substantially affect the price or supply of any refined 
        petroleum product by--
                    (A) decreasing the production of the refined 
                petroleum product; and
                    (B) causing or contributing to a retail or 
                wholesale supply shortage or disruption;
            (3) not less frequently than twice each year, submit to the 
        Secretary a report describing the results of the review and 
        analysis under paragraphs (1) and (2); and
            (4) specifically alert the Secretary of any refinery outage 
        that the Administrator determines may nationally or regionally 
        substantially affect the price or supply of a refined petroleum 
        product.
    (c) Action by Secretary.--On a determination by the Secretary, 
based on a report or alert under paragraph (3) or (4) of subsection 
(b), that a refinery outage may affect the price or supply of a refined 
petroleum product, the Secretary shall make available to refinery 
operators information on planned refinery outages to encourage 
reductions of the quantity of refinery capacity that is out of service 
at any time.
    (d) Limitation.--Nothing in this section shall alter any existing 
legal obligation or responsibility of a refinery operator, or create 
any legal right of action, nor shall this section authorize the 
Secretary--
            (1) to prohibit a refinery operator from conducting a 
        planned refinery outage; or
            (2) to require a refinery operator to continue to operate a 
        refinery.

SEC. 805. ASSESSMENT OF RESOURCES.

    (a) 5-Year Plan.--
            (1) Establishment.--The Administrator of the Energy 
        Information Administration (referred to in this section as the 
        ``Administrator'') shall establish a 5-year plan to enhance the 
        quality and scope of the data collection necessary to ensure 
        the scope, accuracy, and timeliness of the information needed 
        for efficient functioning of energy markets and related 
        financial operations.
            (2) Requirement.--In establishing the plan under paragraph 
        (1), the Administrator shall pay particular attention to--
                    (A) data series terminated because of budget 
                constraints;
                    (B) data on demand response;
                    (C) timely data series of State-level information;
                    (D) improvements in the area of oil and gas data;
                    (E) improvements in data on solid byproducts from 
                coal-based energy-producing facilities; and
                    (F) the ability to meet applicable deadlines under 
                Federal law (including regulations) to provide data 
                required by Congress.
    (b) Submission to Congress.--The Administrator shall submit to 
Congress the plan established under subsection (a), including a 
description of any improvements needed to enhance the ability of the 
Administrator to collect and process energy information in a manner 
consistent with the needs of energy markets.
    (c) Guidelines.--
            (1) In general.--The Administrator shall--
                    (A) establish guidelines to ensure the quality, 
                comparability, and scope of State energy data, 
                including data on energy production and consumption by 
                product and sector and renewable and alternative 
                sources, required to provide a comprehensive, accurate 
                energy profile at the State level;
                    (B) share company-level data collected at the State 
                level with each State involved, in a manner consistent 
                with the legal authorities, confidentiality 
                protections, and stated uses in effect at the time the 
                data were collected, subject to the condition that the 
                State shall agree to reasonable requirements for use of 
                the data, as the Administrator may require;
                    (C) assess any existing gaps in data obtained and 
                compiled by the Energy Information Administration; and
                    (D) evaluate the most cost-effective ways to 
                address any data quality and quantity issues in 
                conjunction with State officials.
            (2) Consultation.--The Administrator shall consult with 
        State officials and the Federal Energy Regulatory Commission on 
        a regular basis in--
                    (A) establishing guidelines and determining the 
                scope of State-level data under paragraph (1); and
                    (B) exploring ways to address data needs and serve 
                data uses.
    (d) Assessment of State Data Needs.--Not later than 1 year after 
the date of enactment of this Act, the Administrator shall submit to 
Congress an assessment of State-level data needs, including a plan to 
address the needs.
    (e) Authorization of Appropriations.--In addition to any other 
amounts made available to the Administrator, there are authorized to be 
appropriated to the Administrator to carry out this section--
            (1) $10,000,000 for fiscal year 2008;
            (2) $10,000,000 for fiscal year 2009;
            (3) $10,000,000 for fiscal year 2010;
            (4) $15,000,000 for fiscal year 2011;
            (5) $20,000,000 for fiscal year 2012; and
            (6) such sums as are necessary for subsequent fiscal years.

SEC. 806. SENSE OF CONGRESS RELATING TO THE USE OF RENEWABLE RESOURCES 
              TO GENERATE ENERGY.

    (a) Findings.--Congress finds that--
            (1) the United States has a quantity of renewable energy 
        resources that is sufficient to supply a significant portion of 
        the energy needs of the United States;
            (2) the agricultural, forestry, and working land of the 
        United States can help ensure a sustainable domestic energy 
        system;
            (3) accelerated development and use of renewable energy 
        technologies provide numerous benefits to the United States, 
        including improved national security, improved balance of 
        payments, healthier rural economies, improved environmental 
        quality, and abundant, reliable, and affordable energy for all 
        citizens of the United States;
            (4) the production of transportation fuels from renewable 
        energy would help the United States meet rapidly growing 
        domestic and global energy demands, reduce the dependence of 
        the United States on energy imported from volatile regions of 
        the world that are politically unstable, stabilize the cost and 
        availability of energy, and safeguard the economy and security 
        of the United States;
            (5) increased energy production from domestic renewable 
        resources would attract substantial new investments in energy 
        infrastructure, create economic growth, develop new jobs for 
        the citizens of the United States, and increase the income for 
        farm, ranch, and forestry jobs in the rural regions of the 
        United States;
            (6) increased use of renewable energy is practical and can 
        be cost effective with the implementation of supportive 
        policies and proper incentives to stimulate markets and 
        infrastructure; and
            (7) public policies aimed at enhancing renewable energy 
        production and accelerating technological improvements will 
        further reduce energy costs over time and increase market 
        demand.
    (b) Sense of Congress.--It is the sense of Congress that it is the 
goal of the United States that, not later than January 1, 2025, the 
agricultural, forestry, and working land of the United States should--
            (1) provide from renewable resources not less than 25 
        percent of the total energy consumed in the United States; and
            (2) continue to produce safe, abundant, and affordable 
        food, feed, and fiber.

SEC. 807. GEOTHERMAL ASSESSMENT, EXPLORATION INFORMATION, AND PRIORITY 
              ACTIVITIES.

    (a) In General.--Not later than January 1, 2012, the Secretary of 
the Interior, acting through the Director of the United States 
Geological Survey, shall--
            (1) complete a comprehensive nationwide geothermal resource 
        assessment that examines the full range of geothermal resources 
        in the United States; and
            (2) submit to the the Committee on Natural Resources of the 
        House of Representatives and the Committee on Energy and 
        Natural Resources of the Senate a report describing the results 
        of the assessment.
    (b) Periodic Updates.--At least once every 10 years, the Secretary 
shall update the national assessment required under this section to 
support public and private sector decisionmaking.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of the Interior to carry out this 
section--
            (1) $15,000,000 for each of fiscal years 2008 through 2012; 
        and
            (2) such sums as are necessary for each of fiscal years 
        2013 through 2022.

 Subtitle B--Prohibitions on Market Manipulation and False Information

SEC. 811. PROHIBITION ON MARKET MANIPULATION.

    It is unlawful for any person, directly or indirectly, to use or 
employ, in connection with the purchase or sale of crude oil gasoline 
or petroleum distillates at wholesale, any manipulative or deceptive 
device or contrivance, in contravention of such rules and regulations 
as the Federal Trade Commission may prescribe as necessary or 
appropriate in the public interest or for the protection of United 
States citizens.

SEC. 812. PROHIBITION ON FALSE INFORMATION.

    It is unlawful for any person to report information related to the 
wholesale price of crude oil gasoline or petroleum distillates to a 
Federal department or agency if--
            (1) the person knew, or reasonably should have known, the 
        information to be false or misleading;
            (2) the information was required by law to be reported; and
            (3) the person intended the false or misleading data to 
        affect data compiled by the department or agency for 
        statistical or analytical purposes with respect to the market 
        for crude oil, gasoline, or petroleum distillates.

SEC. 813. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) Enforcement.--This subtitle shall be enforced by the Federal 
Trade Commission in the same manner, by the same means, and with the 
same jurisdiction as though all applicable terms of the Federal Trade 
Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a 
part of this subtitle.
    (b) Violation Is Treated as Unfair or Deceptive Act or Practice.--
The violation of any provision of this subtitle shall be treated as an 
unfair or deceptive act or practice proscribed under a rule issued 
under section 18(a)(1)(B) of the Federal Trade Commission Act (15 
U.S.C. 57a(a)(1)(B)).

SEC. 814. PENALTIES.

    (a) Civil Penalty.--In addition to any penalty applicable under the 
Federal Trade Commission Act (15 U.S.C. 41 et seq.), any supplier that 
violates section 811 or 812 shall be punishable by a civil penalty of 
not more than $1,000,000.
    (b) Method.--The penalties provided by subsection (a) shall be 
obtained in the same manner as civil penalties imposed under section 5 
of the Federal Trade Commission Act (15 U.S.C. 45).
    (c) Multiple Offenses; Mitigating Factors.--In assessing the 
penalty provided by subsection (a)--
            (1) each day of a continuing violation shall be considered 
        a separate violation; and
            (2) the court shall take into consideration, among other 
        factors--
                    (A) the seriousness of the violation; and
                    (B) the efforts of the person committing the 
                violation to remedy the harm caused by the violation in 
                a timely manner.

SEC. 815. EFFECT ON OTHER LAWS.

    (a) Other Authority of the Commission.--Nothing in this subtitle 
limits or affects the authority of the Federal Trade Commission to 
bring an enforcement action or take any other measure under the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.) or any other provision of 
law.
    (b) Antitrust Law.--Nothing in this subtitle shall be construed to 
modify, impair, or supersede the operation of any of the antitrust 
laws. For purposes of this subsection, the term ``antitrust laws'' 
shall have the meaning given it in subsection (a) of the first section 
of the Clayton Act (15 U.S.C. 12), except that it includes section 5 of 
the Federal Trade Commission Act (15 U.S.C. 45) to the extent that such 
section 5 applies to unfair methods of competition.
    (c) State Law.--Nothing in this subtitle preempts any State law.

                TITLE IX--INTERNATIONAL ENERGY PROGRAMS

SEC. 901. DEFINITIONS.

    In this title:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs and the 
                Committee on Energy and Commerce of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations, the 
                Committee on Energy and Natural Resources, the 
                Committee on Environment and Public Works of the 
                Senate, and the Committee on Commerce, Science, and 
                Transportation.
            (2) Clean and efficient energy technology.--The term 
        ``clean and efficient energy technology'' means an energy 
        supply or end-use technology that, compared to a similar 
        technology already in widespread commercial use in a recipient 
        country, will--
                    (A) reduce emissions of greenhouse gases; or
                    (B)(i) increase efficiency of energy production; or
                    (ii) decrease intensity of energy usage.
            (3) Greenhouse gas.--The term ``greenhouse gas'' means--
                    (A) carbon dioxide;
                    (B) methane;
                    (C) nitrous oxide;
                    (D) hydrofluorocarbons;
                    (E) perfluorocarbons; or
                    (F) sulfur hexafluoride.

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

SEC. 911. UNITED STATES ASSISTANCE FOR DEVELOPING COUNTRIES.

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

SEC. 912. UNITED STATES EXPORTS AND OUTREACH PROGRAMS FOR INDIA, CHINA, 
              AND OTHER COUNTRIES.

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

SEC. 913. UNITED STATES TRADE MISSIONS TO ENCOURAGE PRIVATE SECTOR 
              TRADE AND INVESTMENT.

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

SEC. 914. ACTIONS BY OVERSEAS PRIVATE INVESTMENT CORPORATION.

    (a) Sense of Congress.--It is the sense of Congress that the 
Overseas Private Investment Corporation should promote greater 
investment in clean and efficient energy technologies by--
            (1) proactively reaching out to United States companies 
        that are interested in investing in clean and efficient energy 
        technologies in countries that are significant contributors to 
        global greenhouse gas emissions;
            (2) giving preferential treatment to the evaluation and 
        awarding of projects that involve the investment or utilization 
        of clean and efficient energy technologies; and
            (3) providing greater flexibility in supporting projects 
        that involve the investment or utilization of clean and 
        efficient energy technologies, including financing, insurance, 
        and other assistance.
    (b) Report.--The Overseas Private Investment Corporation shall 
include in its annual report required under section 240A of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2200a)--
            (1) a description of the activities carried out to 
        implement this section; or
            (2) if the Corporation did not carry out any activities to 
        implement this section, an explanation of the reasons therefor.

SEC. 915. ACTIONS BY UNITED STATES TRADE AND DEVELOPMENT AGENCY.

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

SEC. 916. DEPLOYMENT OF INTERNATIONAL CLEAN AND EFFICIENT ENERGY 
              TECHNOLOGIES AND INVESTMENT IN GLOBAL ENERGY MARKETS.

    (a) Task Force.--
            (1) Establishment.--Not later than 90 days after the date 
        of the enactment of this Act, the President shall establish a 
        Task Force on International Cooperation for Clean and Efficient 
        Energy Technologies (in this section referred to as the ``Task 
        Force'').
            (2) Composition.--The Task Force shall be composed of 
        representatives, appointed by the head of the respective 
        Federal department or agency, of--
                    (A) the Council on Environmental Quality;
                    (B) the Department of Energy;
                    (C) the Department of Commerce;
                    (D) the Department of the Treasury;
                    (E) the Department of State;
                    (F) the Environmental Protection Agency;
                    (G) the United States Agency for International 
                Development;
                    (H) the Export-Import Bank of the United States;
                    (I) the Overseas Private Investment Corporation:
                    (J) the Trade and Development Agency;
                    (K) the Small Business Administration;
                    (L) the Office of the United States Trade 
                Representative; and
                    (M) other Federal departments and agencies, as 
                determined by the President.
            (3) Chairperson.--The President shall designate a 
        Chairperson or Co-Chairpersons of the Task Force.
            (4) Duties.--The Task Force--
                    (A) shall develop and assist in the implementation 
                of the strategy required under subsection (c); and
                    (B)(i) shall analyze technology, policy, and market 
                opportunities for the development, demonstration, and 
                deployment of clean and efficient energy technologies 
                on an international basis; and
                    (ii) shall examine relevant trade, tax, finance, 
                international, and other policy issues to assess which 
                policies, in the United States and in developing 
                countries, would help open markets and improve the 
                export of clean and efficient energy technologies from 
                the United States.
            (5) Termination.--The Task Force, including any working 
        group established by the Task Force pursuant to subsection (b), 
        shall terminate 12 years after the date of the enactment of 
        this Act.
    (b) Working Groups.--
            (1) Establishment.--The Task Force--
                    (A) shall establish an Interagency Working Group on 
                the Export of Clean and Efficient Energy Technologies 
                (in this section referred to as the ``Interagency 
                Working Group''); and
                    (B) may establish other working groups as may be 
                necessary to carry out this section.
            (2) Composition.--The Interagency Working Group shall be 
        composed of--
                    (A) the Secretary of Energy, the Secretary of 
                Commerce, and the Secretary of State, who shall serve 
                as Co-Chairpersons of the Interagency Working Group; 
                and
                    (B) other members, as determined by the Chairperson 
                or Co-Chairpersons of the Task Force.
            (3) Duties.--The Interagency Working Group shall coordinate 
        the resources and relevant programs of the Department of 
        Energy, the Department of Commerce, the Department of State, 
        and other relevant Federal departments and agencies to support 
        the export of clean and efficient energy technologies developed 
        or demonstrated in the United States to other countries and the 
        deployment of such clean and efficient energy technologies in 
        such other countries.
            (4) Interagency center.--The Interagency Working Group--
                    (A) shall establish an Interagency Center on the 
                Export of Clean and Efficient Energy Technologies (in 
                this section referred to as the ``Interagency Center'') 
                to assist the Interagency Working Group in carrying out 
                its duties required under paragraph (3); and
                    (B) shall locate the Interagency Center at a site 
                agreed upon by the Co-Chairpersons of the Interagency 
                Working Group, with the approval of Chairperson or Co-
                Chairpersons of the Task Force.
    (c) Strategy.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Task Force shall develop and 
        submit to the President and the appropriate congressional 
        committees a strategy to--
                    (A) support the development and implementation of 
                programs, policies, and initiatives in developing 
                countries to promote the adoption and deployment of 
                clean and efficient energy technologies, with an 
                emphasis on those developing countries that are 
                expected to experience the most significant growth in 
                energy production and use over the next 20 years;
                    (B) open and expand clean and efficient energy 
                technology markets and facilitate the export of clean 
                and efficient energy technologies to developing 
                countries, in a manner consistent with United States 
                obligations as member of the World Trade Organization;
                    (C) integrate into the foreign policy objectives of 
                the United States the promotion of--
                            (i) the deployment of clean and efficient 
                        energy technologies and the reduction of 
                        greenhouse gas emissions in developing 
                        countries; and
                            (ii) the export of clean and efficient 
                        energy technologies; and
                    (D) develop financial mechanisms and instruments, 
                including securities that mitigate the political and 
                foreign exchange risks of uses that are consistent with 
                the foreign policy objectives of the United States by 
                combining the private sector market and government 
                enhancements, that--
                            (i) are cost-effective; and
                            (ii) facilitate private capital investment 
                        in clean and efficient energy technology 
                        projects in developing countries.
            (2) Updates.--Not later than 3 years after the date of 
        submission of the strategy under paragraph (1), and every 3 
        years thereafter, the Task Force shall update the strategy in 
        accordance with the requirements of paragraph (1).
    (d) Report.--
            (1) In general.--Not later than 3 years after the date of 
        submission of the strategy under subsection (c)(1), and every 3 
        years thereafter, the President shall transmit to the 
        appropriate congressional committees a report on the 
        implementation of this section for the prior 3-year period.
            (2) Matters to be included.--The report required under 
        paragraph (1) shall include the following:
                    (A) The update of the strategy required under 
                subsection (c)(2) and a description of the actions 
                taken by the Task Force to assist in the implementation 
                of the strategy.
                    (B) A description of actions taken by the Task 
                Force to carry out the duties required under subsection 
                (a)(4)(B).
                    (C) A description of assistance provided under this 
                section.
                    (D) The results of programs, projects, and 
                activities carried out under this section.
                    (E) A description of priorities for promoting the 
                diffusion and adoption of clean and efficient energy 
                technologies and strategies in developing countries, 
                taking into account economic and security interests of 
                the United States and opportunities for the export of 
                technology of the United States.
                    (F) Recommendations to the heads of appropriate 
                Federal departments and agencies on methods to 
                streamline Federal programs and policies to improve the 
                role of such Federal departments and agencies in the 
                development, demonstration, and deployment of clean and 
                efficient energy technologies on an international 
                basis.
                    (G) Strategies to integrate representatives of the 
                private sector and other interested groups on the 
                export and deployment of clean and efficient energy 
                technologies.
                    (H) A description of programs to disseminate 
                information to the private sector and the public on 
                clean and efficient energy technologies and 
                opportunities to transfer such clean and efficient 
                energy technologies.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2008 through 2020.

SEC. 917. UNITED STATES-ISRAEL ENERGY COOPERATION.

    (a) Findings.--Congress finds that--
            (1) it is in the highest national security interests of the 
        United States to develop renewable energy sources;
            (2) the State of Israel is a steadfast ally of the United 
        States;
            (3) the special relationship between the United States and 
        Israel is manifested in a variety of cooperative scientific 
        research and development programs, such as--
                    (A) the United States-Israel Binational Science 
                Foundation; and
                    (B) the United States-Israel Binational Industrial 
                Research and Development Foundation;
            (4) those programs have made possible many scientific, 
        technological, and commercial breakthroughs in the fields of 
        life sciences, medicine, bioengineering, agriculture, 
        biotechnology, communications, and others;
            (5) on February 1, 1996, the Secretary of Energy (referred 
        to in this section as the ``Secretary'') and the Israeli 
        Minister of Energy and Infrastructure signed an agreement to 
        establish a framework for collaboration between the United 
        States and Israel in energy research and development 
        activities;
            (6) Israeli scientists and engineers are at the forefront 
        of research and development in the field of renewable energy 
        sources; and
            (7) enhanced cooperation between the United States and 
        Israel for the purpose of research and development of renewable 
        energy sources would be in the national interests of both 
        countries.
    (b) Grant Program.--
            (1) Establishment.--In implementing the agreement entitled 
        the ``Agreement between the Department of Energy of the United 
        States of America and the Ministry of Energy and Infrastructure 
        of Israel Concerning Energy Cooperation'', dated February 1, 
        1996, the Secretary shall establish a grant program in 
        accordance with the requirements of sections 988 and 989 of the 
        Energy Policy Act of 2005 (42 U.S.C. 16352, 16353) to support 
        research, development, and commercialization of renewable 
        energy or energy efficiency.
            (2) Types of energy.--In carrying out paragraph (1), the 
        Secretary may make grants to promote--
                    (A) solar energy;
                    (B) biomass energy;
                    (C) energy efficiency;
                    (D) wind energy;
                    (E) geothermal energy;
                    (F) wave and tidal energy; and
                    (G) advanced battery technology.
            (3) Eligible applicants.--An applicant shall be eligible to 
        receive a grant under this subsection if the project of the 
        applicant--
                    (A) addresses a requirement in the area of improved 
                energy efficiency or renewable energy sources, as 
                determined by the Secretary; and
                    (B) is a joint venture between--
                            (i)(I) a for-profit business entity, 
                        academic institution, National Laboratory (as 
                        defined in section 2 of the Energy Policy Act 
                        of 2005 (42 U.S.C. 15801)), or nonprofit entity 
                        in the United States; and
                            (II) a for-profit business entity, academic 
                        institution, or nonprofit entity in Israel; or
                            (ii)(I) the Federal Government; and
                            (II) the Government of Israel.
            (4) Applications.--To be eligible to receive a grant under 
        this subsection, an applicant shall submit to the Secretary an 
        application for the grant in accordance with procedures 
        established by the Secretary, in consultation with the advisory 
        board established under paragraph (5).
            (5) Advisory board.--
                    (A) Establishment.--The Secretary shall establish 
                an advisory board--
                            (i) to monitor the method by which grants 
                        are awarded under this subsection; and
                            (ii) to provide to the Secretary periodic 
                        performance reviews of actions taken to carry 
                        out this subsection.
                    (B) Composition.--The advisory board established 
                under subparagraph (A) shall be composed of 3 members, 
                to be appointed by the Secretary, of whom--
                            (i) 1 shall be a representative of the 
                        Federal Government;
                            (ii) 1 shall be selected from a list of 
                        nominees provided by the United States-Israel 
                        Binational Science Foundation; and
                            (iii) 1 shall be selected from a list of 
                        nominees provided by the United States-Israel 
                        Binational Industrial Research and Development 
                        Foundation.
            (6) Contributed funds.--Notwithstanding section 3302 of 
        title 31, United States Code, the Secretary may accept, retain, 
        and use funds contributed by any person, government entity, or 
        organization for purposes of carrying out this subsection--
                    (A) without further appropriation; and
                    (B) without fiscal year limitation.
            (7) Report.--Not later than 180 days after the date of 
        completion of a project for which a grant is provided under 
        this subsection, the grant recipient shall submit to the 
        Secretary a report that contains--
                    (A) a description of the method by which the 
                recipient used the grant funds; and
                    (B) an evaluation of the level of success of each 
                project funded by the grant.
            (8) Classification.--Grants shall be awarded under this 
        subsection only for projects that are considered to be 
        unclassified by both the United States and Israel.
    (c) Termination.--The grant program and the advisory committee 
established under this section terminate on the date that is 7 years 
after the date of enactment of this Act.
    (d) Authorization of Appropriations.--The Secretary shall use 
amounts authorized to be appropriated under section 931 of the Energy 
Policy Act of 2005 (42 U.S.C. 16231) to carry out this section.

           Subtitle B--International Clean Energy Foundation

SEC. 921. DEFINITIONS.

    In this subtitle:
            (1) Board.--The term ``Board'' means the Board of Directors 
        of the Foundation established pursuant to section 922(c).
            (2) Chief executive officer.--The term ``Chief Executive 
        Officer'' means the chief executive officer of the Foundation 
        appointed pursuant to section 922(b).
            (3) Foundation.--The term ``Foundation'' means the 
        International Clean Energy Foundation established by section 
        922(a).

SEC. 922. ESTABLISHMENT AND MANAGEMENT OF FOUNDATION.

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

SEC. 923. DUTIES OF FOUNDATION.

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

SEC. 924. ANNUAL REPORT.

    (a) Report Required.--Not later than March 31, 2008, and each March 
31 thereafter, the Foundation shall submit to the appropriate 
congressional committees a report on the implementation of this 
subtitle during the prior fiscal year.
    (b) Contents.--The report required by subsection (a) shall 
include--
            (1) the total financial resources available to the 
        Foundation during the year, including appropriated funds, the 
        value and source of any gifts or donations accepted pursuant to 
        section 925(a)(6), and any other resources;
            (2) a description of the Board's policy priorities for the 
        year and the basis upon which competitive grant proposals were 
        solicited and awarded to nongovernmental institutions and other 
        organizations;
            (3) a list of grants made to nongovernmental institutions 
        and other organizations that includes the identity of the 
        institutional recipient, the dollar amount, and the results of 
        the program; and
            (4) the total administrative and operating expenses of the 
        Foundation for the year, as well as specific information on--
                    (A) the number of Foundation employees and the cost 
                of compensation for Board members, Foundation 
                employees, and personal service contractors;
                    (B) costs associated with securing the use of real 
                property for carrying out the functions of the 
                Foundation;
                    (C) total travel expenses incurred by Board members 
                and Foundation employees in connection with Foundation 
                activities; and
                    (D) total representational expenses.

SEC. 925. POWERS OF THE FOUNDATION; RELATED PROVISIONS.

    (a) Powers.--The Foundation--
            (1) shall have perpetual succession unless dissolved by a 
        law enacted after the date of the enactment of this Act;
            (2) may adopt, alter, and use a seal, which shall be 
        judicially noticed;
            (3) may make and perform such contracts, grants, and other 
        agreements with any person or government however designated and 
        wherever situated, as may be necessary for carrying out the 
        functions of the Foundation;
            (4) may determine and prescribe the manner in which its 
        obligations shall be incurred and its expenses allowed and 
        paid, including expenses for representation;
            (5) may lease, purchase, or otherwise acquire, improve, and 
        use such real property wherever situated, as may be necessary 
        for carrying out the functions of the Foundation;
            (6) may accept money, funds, services, or property (real, 
        personal, or mixed), tangible or intangible, made available by 
        gift, bequest grant, or otherwise for the purpose of carrying 
        out the provisions of this title from domestic or foreign 
        private individuals, charities, nongovernmental organizations, 
        corporations, or governments;
            (7) may use the United States mails in the same manner and 
        on the same conditions as the executive departments;
            (8) may contract with individuals for personal services, 
        who shall not be considered Federal employees for any provision 
        of law administered by the Office of Personnel Management;
            (9) may hire or obtain passenger motor vehicles; and
            (10) shall have such other powers as may be necessary and 
        incident to carrying out this subtitle.
    (b) Principal Office.--The Foundation shall maintain its principal 
office in the metropolitan area of Washington, District of Columbia.
    (c) Applicability of Government Corporation Control Act.--
            (1) In general.--The Foundation shall be subject to chapter 
        91 of subtitle VI of title 31, United States Code, except that 
        the Foundation shall not be authorized to issue obligations or 
        offer obligations to the public.
            (2) Conforming amendment.--Section 9101(3) of title 31, 
        United States Code, is amended by adding at the end the 
        following:
                    ``(R) the International Clean Energy Foundation.''.
    (d) Inspector General.--
            (1) In general.--The Inspector General of the Department of 
        State shall serve as Inspector General of the Foundation, and, 
        in acting in such capacity, may conduct reviews, 
        investigations, and inspections of all aspects of the 
        operations and activities of the Foundation.
            (2) Authority of the board.--In carrying out the 
        responsibilities under this subsection, the Inspector General 
        shall report to and be under the general supervision of the 
        Board.
            (3) Reimbursement and authorization of services.--
                    (A) Reimbursement.--The Foundation shall reimburse 
                the Department of State for all expenses incurred by 
                the Inspector General in connection with the Inspector 
                General's responsibilities under this subsection.
                    (B) Authorization for services.--Of the amount 
                authorized to be appropriated under section 927(a) for 
                a fiscal year, up to $500,000 is authorized to be made 
                available to the Inspector General of the Department of 
                State to conduct reviews, investigations, and 
                inspections of operations and activities of the 
                Foundation.

SEC. 926. GENERAL PERSONNEL AUTHORITIES.

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

SEC. 927. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--To carry out this subtitle, 
there are authorized to be appropriated $20,000,000 for each of the 
fiscal years 2009 through 2013.
    (b) Allocation of Funds.--
            (1) In general.--The Foundation may allocate or transfer to 
        any agency of the United States Government any of the funds 
        available for carrying out this subtitle. Such funds shall be 
        available for obligation and expenditure for the purposes for 
        which the funds were authorized, in accordance with authority 
        granted in this subtitle or under authority governing the 
        activities of the United States Government agency to which such 
        funds are allocated or transferred.
            (2) Notification.--The Foundation shall notify the 
        appropriate congressional committees not less than 15 days 
        prior to an allocation or transfer of funds pursuant to 
        paragraph (1).

                  Subtitle C--Miscellaneous Provisions

SEC. 931. ENERGY DIPLOMACY AND SECURITY WITHIN THE DEPARTMENT OF STATE.

    (a) State Department Coordinator for International Energy 
Affairs.--
            (1) In general.--The Secretary of State should ensure that 
        energy security is integrated into the core mission of the 
        Department of State.
            (2) Coordinator for international energy affairs.--There is 
        established within the Office of the Secretary of State a 
        Coordinator for International Energy Affairs, who shall be 
        responsible for--
                    (A) representing the Secretary of State in 
                interagency efforts to develop the international energy 
                policy of the United States;
                    (B) ensuring that analyses of the national security 
                implications of global energy and environmental 
                developments are reflected in the decision making 
                process within the Department of State;
                    (C) incorporating energy security priorities into 
                the activities of the Department of State;
                    (D) coordinating energy activities of the 
                Department of State with relevant Federal agencies; and
                    (E) coordinating energy security and other relevant 
                functions within the Department of State currently 
                undertaken by offices within--
                            (i) the Bureau of Economic, Energy and 
                        Business Affairs;
                            (ii) the Bureau of Oceans and International 
                        Environmental and Scientific Affairs; and
                            (iii) other offices within the Department 
                        of State.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to carry out 
        this subsection.
    (b) Energy Experts in Key Embassies.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary of State shall 
submit a report to the Committee on Foreign Relations of the Senate and 
the Committee on Foreign Affairs of the House of Representatives that 
includes--
            (1) a description of the Department of State personnel who 
        are dedicated to energy matters and are stationed at embassies 
        and consulates in countries that are major energy producers or 
        consumers;
            (2) an analysis of the need for Federal energy specialist 
        personnel in United States embassies and other United States 
        diplomatic missions; and
            (3) recommendations for increasing energy expertise within 
        United States embassies among foreign service officers and 
        options for assigning to such embassies energy attaches from 
        the National Laboratories or other agencies within the 
        Department of Energy.
    (c) Energy Advisors.--The Secretary of Energy may make appropriate 
arrangements with the Secretary of State to assign personnel from the 
Department of Energy or the National Laboratories of the Department of 
Energy to serve as dedicated advisors on energy matters in embassies of 
the United States or other United States diplomatic missions.
    (d) Report.--Not later than 180 days after the date of the 
enactment of this Act, and every 2 years thereafter for the following 
20 years, the Secretary of State shall submit a report to the Committee 
on Foreign Relations of the Senate and the Committee on Foreign Affairs 
of the House of Representatives that describes--
            (1) the energy-related activities being conducted by the 
        Department of State, including activities within--
                    (A) the Bureau of Economic, Energy and Business 
                Affairs;
                    (B) the Bureau of Oceans and Environmental and 
                Scientific Affairs; and
                    (C) other offices within the Department of State;
            (2) the amount of funds spent on each activity within each 
        office described in paragraph (1); and
            (3) the number and qualification of personnel in each 
        embassy (or relevant foreign posting) of the United States 
        whose work is dedicated exclusively to energy matters.

SEC. 932. NATIONAL SECURITY COUNCIL REORGANIZATION.

    Section 101(a) of the National Security Act of 1947 (50 U.S.C. 
402(a)) is amended--
            (1) by redesignating paragraphs (5), (6), and (7) as 
        paragraphs (6), (7), and (8), respectively; and
            (2) by inserting after paragraph (4) the following:
            ``(5) the Secretary of Energy;''.

SEC. 933. ANNUAL NATIONAL ENERGY SECURITY STRATEGY REPORT.

    (a) Reports.--
            (1) In general.--Subject to paragraph (2), on the date on 
        which the President submits to Congress the budget for the 
        following fiscal year under section 1105 of title 31, United 
        States Code, the President shall submit to Congress a 
        comprehensive report on the national energy security of the 
        United States.
            (2) New presidents.--In addition to the reports required 
        under paragraph (1), the President shall submit a comprehensive 
        report on the national energy security of the United States by 
        not later than 150 days after the date on which the President 
        assumes the office of President after a presidential election.
    (b) Contents.--Each report under this section shall describe the 
national energy security strategy of the United States, including a 
comprehensive description of--
            (1) the worldwide interests, goals, and objectives of the 
        United States that are vital to the national energy security of 
        the United States;
            (2) the foreign policy, worldwide commitments, and national 
        defense capabilities of the United States necessary--
                    (A) to deter political manipulation of world energy 
                resources; and
                    (B) to implement the national energy security 
                strategy of the United States;
            (3) the proposed short-term and long-term uses of the 
        political, economic, military, and other authorities of the 
        United States--
                    (A) to protect or promote energy security; and
                    (B) to achieve the goals and objectives described 
                in paragraph (1);
            (4) the adequacy of the capabilities of the United States 
        to protect the national energy security of the United States, 
        including an evaluation of the balance among the capabilities 
        of all elements of the national authority of the United States 
        to support the implementation of the national energy security 
        strategy; and
            (5) such other information as the President determines to 
        be necessary to inform Congress on matters relating to the 
        national energy security of the United States.
    (c) Classified and Unclassified Form.--Each national energy 
security strategy report shall be submitted to Congress in--
            (1) a classified form; and
            (2) an unclassified form.

SEC. 934. CONVENTION ON SUPPLEMENTARY COMPENSATION FOR NUCLEAR DAMAGE 
              CONTINGENT COST ALLOCATION.

    (a) Findings and Purpose.--
            (1) Findings.--Congress finds that--
                    (A) section 170 of the Atomic Energy Act of 1954 
                (42 U.S.C. 2210) (commonly known as the ``Price-
                Anderson Act'')--
                            (i) provides a predictable legal framework 
                        necessary for nuclear projects; and
                            (ii) ensures prompt and equitable 
                        compensation in the event of a nuclear incident 
                        in the United States;
                    (B) the Price-Anderson Act, in effect, provides 
                operators of nuclear powerplants with insurance for 
                damage arising out of a nuclear incident and funds the 
                insurance primarily through the assessment of a 
                retrospective premium from each operator after the 
                occurrence of a nuclear incident;
                    (C) the Convention on Supplementary Compensation 
                for Nuclear Damage, done at Vienna on September 12, 
                1997, will establish a global system--
                            (i) to provide a predictable legal 
                        framework necessary for nuclear energy 
                        projects; and
                            (ii) to ensure prompt and equitable 
                        compensation in the event of a nuclear 
                        incident;
                    (D) the Convention benefits United States nuclear 
                suppliers that face potentially unlimited liability for 
                nuclear incidents that are not covered by the Price-
                Anderson Act by replacing a potentially open-ended 
                liability with a predictable liability regime that, in 
                effect, provides nuclear suppliers with insurance for 
                damage arising out of such an incident;
                    (E) the Convention also benefits United States 
                nuclear facility operators that may be publicly liable 
                for a Price-Anderson incident by providing an 
                additional early source of funds to compensate damage 
                arising out of the Price-Anderson incident;
                    (F) the combined operation of the Convention, the 
                Price-Anderson Act, and this section will augment the 
                quantity of assured funds available for victims in a 
                wider variety of nuclear incidents while reducing the 
                potential liability of United States suppliers without 
                increasing potential costs to United States operators;
                    (G) the cost of those benefits is the obligation of 
                the United States to contribute to the supplementary 
                compensation fund established by the Convention;
                    (H) any such contribution should be funded in a 
                manner that does not--
                            (i) upset settled expectations based on the 
                        liability regime established under the Price-
                        Anderson Act; or
                            (ii) shift to Federal taxpayers liability 
                        risks for nuclear incidents at foreign 
                        installations;
                    (I) with respect to a Price-Anderson incident, 
                funds already available under the Price-Anderson Act 
                should be used; and
                    (J) with respect to a nuclear incident outside the 
                United States not covered by the Price-Anderson Act, a 
                retrospective premium should be prorated among nuclear 
                suppliers relieved from potential liability for which 
                insurance is not available.
            (2) Purpose.--The purpose of this section is to allocate 
        the contingent costs associated with participation by the 
        United States in the international nuclear liability 
        compensation system established by the Convention on 
        Supplementary Compensation for Nuclear Damage, done at Vienna 
        on September 12, 1997--
                    (A) with respect to a Price-Anderson incident, by 
                using funds made available under section 170 of the 
                Atomic Energy Act of 1954 (42 U.S.C. 2210) to cover the 
                contingent costs in a manner that neither increases the 
                burdens nor decreases the benefits under section 170 of 
                that Act; and
                    (B) with respect to a covered incident outside the 
                United States that is not a Price-Anderson incident, by 
                allocating the contingent costs equitably, on the basis 
                of risk, among the class of nuclear suppliers relieved 
                by the Convention from the risk of potential liability 
                resulting from any covered incident outside the United 
                States.
    (b) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Nuclear 
        Regulatory Commission.
            (2) Contingent cost.--The term ``contingent cost'' means 
        the cost to the United States in the event of a covered 
        incident the amount of which is equal to the amount of funds 
        the United States is obligated to make available under 
        paragraph 1(b) of Article III of the Convention.
            (3) Convention.--The term ``Convention'' means the 
        Convention on Supplementary Compensation for Nuclear Damage, 
        done at Vienna on September 12, 1997.
            (4) Covered incident.--The term ``covered incident'' means 
        a nuclear incident the occurrence of which results in a request 
        for funds pursuant to Article VII of the Convention.
            (5) Covered installation.--The term ``covered 
        installation'' means a nuclear installation at which the 
        occurrence of a nuclear incident could result in a request for 
        funds under Article VII of the Convention.
            (6) Covered person.--
                    (A) In general.--The term ``covered person'' 
                means--
                            (i) a United States person; and
                            (ii) an individual or entity (including an 
                        agency or instrumentality of a foreign country) 
                        that--
                                    (I) is located in the United 
                                States; or
                                    (II) carries out an activity in the 
                                United States.
                    (B) Exclusions.--The term ``covered person'' does 
                not include--
                            (i) the United States; or
                            (ii) any agency or instrumentality of the 
                        United States.
            (7) Nuclear supplier.--The term ``nuclear supplier'' means 
        a covered person (or a successor in interest of a covered 
        person) that--
                    (A) supplies facilities, equipment, fuel, services, 
                or technology pertaining to the design, construction, 
                operation, or decommissioning of a covered 
                installation; or
                    (B) transports nuclear materials that could result 
                in a covered incident.
            (8) Price-anderson incident.--The term ``Price-Anderson 
        incident'' means a covered incident for which section 170 of 
        the Atomic Energy Act of 1954 (42 U.S.C. 2210) would make funds 
        available to compensate for public liability (as defined in 
        section 11 of that Act (42 U.S.C. 2014)).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (10) United states.--
                    (A) In general.--The term ``United States'' has the 
                meaning given the term in section 11 of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2014).
                    (B) Inclusions.--The term ``United States'' 
                includes--
                            (i) the Commonwealth of Puerto Rico;
                            (ii) any other territory or possession of 
                        the United States;
                            (iii) the Canal Zone; and
                            (iv) the waters of the United States 
                        territorial sea under Presidential Proclamation 
                        Number 5928, dated December 27, 1988 (43 U.S.C. 
                        1331 note).
            (11) United states person.--The term ``United States 
        person'' means--
                    (A) any individual who is a resident, national, or 
                citizen of the United States (other than an individual 
                residing outside of the United States and employed by a 
                person who is not a United States person); and
                    (B) any corporation, partnership, association, 
                joint stock company, business trust, unincorporated 
                organization, or sole proprietorship that is organized 
                under the laws of the United States.
    (c) Use of Price-Anderson Funds.--
            (1) In general.--Funds made available under section 170 of 
        the Atomic Energy Act of 1954 (42 U.S.C. 2210) shall be used to 
        cover the contingent cost resulting from any Price-Anderson 
        incident.
            (2) Effect.--The use of funds pursuant to paragraph (1) 
        shall not reduce the limitation on public liability established 
        under section 170 e. of the Atomic Energy Act of 1954 (42 
        U.S.C. 2210(e)).
    (d) Effect on Amount of Public Liability.--
            (1) In general.--Funds made available to the United States 
        under Article VII of the Convention with respect to a Price-
        Anderson incident shall be used to satisfy public liability 
        resulting from the Price-Anderson incident.
            (2) Amount.--The amount of public liability allowable under 
        section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) 
        relating to a Price-Anderson incident under paragraph (1) shall 
        be increased by an amount equal to the difference between--
                    (A) the amount of funds made available for the 
                Price-Anderson incident under Article VII of the 
                Convention; and
                    (B) the amount of funds used under subsection (c) 
                to cover the contingent cost resulting from the Price-
                Anderson incident.
    (e) Retrospective Risk Pooling Program.--
            (1) In general.--Except as provided under paragraph (2), 
        each nuclear supplier shall participate in a retrospective risk 
        pooling program in accordance with this section to cover the 
        contingent cost resulting from a covered incident outside the 
        United States that is not a Price-Anderson incident.
            (2) Deferred payment.--
                    (A) In general.--The obligation of a nuclear 
                supplier to participate in the retrospective risk 
                pooling program shall be deferred until the United 
                States is called on to provide funds pursuant to 
                Article VII of the Convention with respect to a covered 
                incident that is not a Price-Anderson incident.
                    (B) Amount of deferred payment.--The amount of a 
                deferred payment of a nuclear supplier under 
                subparagraph (A) shall be based on the risk-informed 
                assessment formula determined under subparagraph (C).
                    (C) Risk-informed assessment formula.--
                            (i) In general.--Not later than 3 years 
                        after the date of the enactment of this Act, 
                        and every 5 years thereafter, the Secretary 
                        shall, by regulation, determine the risk-
                        informed assessment formula for the allocation 
                        among nuclear suppliers of the contingent cost 
                        resulting from a covered incident that is not a 
                        Price-Anderson incident, taking into account 
                        risk factors such as--
                                    (I) the nature and intended purpose 
                                of the goods and services supplied by 
                                each nuclear supplier to each covered 
                                installation outside the United States;
                                    (II) the quantity of the goods and 
                                services supplied by each nuclear 
                                supplier to each covered installation 
                                outside the United States;
                                    (III) the hazards associated with 
                                the supplied goods and services if the 
                                goods and services fail to achieve the 
                                intended purposes;
                                    (IV) the hazards associated with 
                                the covered installation outside the 
                                United States to which the goods and 
                                services are supplied;
                                    (V) the legal, regulatory, and 
                                financial infrastructure associated 
                                with the covered installation outside 
                                the United States to which the goods 
                                and services are supplied; and
                                    (VI) the hazards associated with 
                                particular forms of transportation.
                            (ii) Factors for consideration.--In 
                        determining the formula, the Secretary may--
                                    (I) exclude--
                                            (aa) goods and services 
                                        with negligible risk;
                                            (bb) classes of goods and 
                                        services not intended 
                                        specifically for use in a 
                                        nuclear installation;
                                            (cc) a nuclear supplier 
                                        with a de minimis share of the 
                                        contingent cost; and
                                            (dd) a nuclear supplier no 
                                        longer in existence for which 
                                        there is no identifiable 
                                        successor; and
                                    (II) establish the period on which 
                                the risk assessment is based.
                            (iii) Application.--In applying the 
                        formula, the Secretary shall not consider any 
                        covered installation or transportation for 
                        which funds would be available under section 
                        170 of the Atomic Energy Act of 1954 (42 U.S.C. 
                        2210).
                            (iv) Report.--Not later than 5 years after 
                        the date of the enactment of this Act, and 
                        every 5 years thereafter, the Secretary shall 
                        submit to the Committee on Environment and 
                        Public Works of the Senate and the Committee on 
                        Energy and Commerce of the House of 
                        Representatives a report on whether there is a 
                        need for continuation or amendment of this 
                        section, taking into account the effects of the 
                        implementation of the Convention on the United 
                        States nuclear industry and suppliers.
    (f) Reporting.--
            (1) Collection of information.--
                    (A) In general.--The Secretary may collect 
                information necessary for developing and implementing 
                the formula for calculating the deferred payment of a 
                nuclear supplier under subsection (e)(2).
                    (B) Provision of information.--Each nuclear 
                supplier and other appropriate persons shall make 
                available to the Secretary such information, reports, 
                records, documents, and other data as the Secretary 
                determines, by regulation, to be necessary or 
                appropriate to develop and implement the formula under 
                subsection (e)(2)(C).
            (2) Private insurance.--The Secretary shall make available 
        to nuclear suppliers, and insurers of nuclear suppliers, 
        information to support the voluntary establishment and 
        maintenance of private insurance against any risk for which 
        nuclear suppliers may be required to pay deferred payments 
        under this section.
    (g) Effect on Liability.--Nothing in any other law (including 
regulations) limits liability for a covered incident to an amount equal 
to less than the amount prescribed in paragraph 1(a) of Article IV of 
the Convention, unless the law--
            (1) specifically refers to this section; and
            (2) explicitly repeals, alters, amends, modifies, impairs, 
        displaces, or supersedes the effect of this subsection.
    (h) Payments to and by the United States.--
            (1) Action by nuclear suppliers.--
                    (A) Notification.--In the case of a request for 
                funds under Article VII of the Convention resulting 
                from a covered incident that is not a Price-Anderson 
                incident, the Secretary shall notify each nuclear 
                supplier of the amount of the deferred payment required 
                to be made by the nuclear supplier.
                    (B) Payments.--
                            (i) In general.--Except as provided under 
                        clause (ii), not later than 60 days after 
                        receipt of a notification under subparagraph 
                        (A), a nuclear supplier shall pay to the 
                        general fund of the Treasury the deferred 
                        payment of the nuclear supplier required under 
                        subparagraph (A).
                            (ii) Annual payments.--A nuclear supplier 
                        may elect to prorate payment of the deferred 
                        payment required under subparagraph (A) in 5 
                        equal annual payments (including interest on 
                        the unpaid balance at the prime rate prevailing 
                        at the time the first payment is due).
                    (C) Vouchers.--A nuclear supplier shall submit 
                payment certification vouchers to the Secretary of the 
                Treasury in accordance with section 3325 of title 31, 
                United States Code.
            (2) Use of funds.--
                    (A) In general.--Amounts paid into the Treasury 
                under paragraph (1) shall be available to the Secretary 
                of the Treasury, without further appropriation and 
                without fiscal year limitation, for the purpose of 
                making the contributions of public funds required to be 
                made by the United States under the Convention.
                    (B) Action by secretary of treasury.--The Secretary 
                of the Treasury shall pay the contribution required 
                under the Convention to the court of competent 
                jurisdiction under Article XIII of the Convention with 
                respect to the applicable covered incident.
            (3) Failure to pay.--If a nuclear supplier fails to make a 
        payment required under this subsection, the Secretary may take 
        appropriate action to recover from the nuclear supplier--
                    (A) the amount of the payment due from the nuclear 
                supplier;
                    (B) any applicable interest on the payment; and
                    (C) a penalty of not more than twice the amount of 
                the deferred payment due from the nuclear supplier.
    (i) Limitation on Judicial Review; Cause of Action.--
            (1) Limitation on judicial review.--
                    (A) In general.--In any civil action arising under 
                the Convention over which Article XIII of the 
                Convention grants jurisdiction to the courts of the 
                United States, any appeal or review by writ of mandamus 
                or otherwise with respect to a nuclear incident that is 
                not a Price-Anderson incident shall be in accordance 
                with chapter 83 of title 28, United States Code, except 
                that the appeal or review shall occur in the United 
                States Court of Appeals for the District of Columbia 
                Circuit.
                    (B) Supreme court jurisdiction.--Nothing in this 
                paragraph affects the jurisdiction of the Supreme Court 
                of the United States under chapter 81 of title 28, 
                United States Code.
            (2) Cause of action.--
                    (A) In general.--Subject to subparagraph (B), in 
                any civil action arising under the Convention over 
                which Article XIII of the Convention grants 
                jurisdiction to the courts of the United States, in 
                addition to any other cause of action that may exist, 
                an individual or entity shall have a cause of action 
                against the operator to recover for nuclear damage 
                suffered by the individual or entity.
                    (B) Requirement.--Subparagraph (A) shall apply only 
                if the individual or entity seeks a remedy for nuclear 
                damage (as defined in Article I of the Convention) that 
                was caused by a nuclear incident (as defined in Article 
                I of the Convention) that is not a Price-Anderson 
                incident.
                    (C) Savings provision.--Nothing in this paragraph 
                may be construed to limit, modify, extinguish, or 
                otherwise affect any cause of action that would have 
                existed in the absence of enactment of this paragraph.
    (j) Right of Recourse.--This section does not provide to an 
operator of a covered installation any right of recourse under the 
Convention.
    (k) Protection of Sensitive United States Information.--Nothing in 
the Convention or this section requires the disclosure of--
            (1) any data that, at any time, was Restricted Data (as 
        defined in section 11 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2014));
            (2) information relating to intelligence sources or methods 
        protected by section 102A(i) of the National Security Act of 
        1947 (50 U.S.C. 403-1(i)); or
            (3) national security information classified under 
        Executive Order 12958 (50 U.S.C. 435 note; relating to 
        classified national security information) (or a successor 
        Executive Order or regulation).
    (l) Regulations.--
            (1) In general.--The Secretary or the Commission, as 
        appropriate, may prescribe regulations to carry out section 170 
        of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and this 
        section.
            (2) Requirement.--Rules prescribed under this subsection 
        shall ensure, to the maximum extent practicable, that--
                    (A) the implementation of section 170 of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2210) and this section is 
                consistent and equitable; and
                    (B) the financial and operational burden on a 
                Commission licensee in complying with section 170 of 
                that Act is not greater as a result of the enactment of 
                this section.
            (3) Applicability of provision.--Section 553 of title 5, 
        United States Code, shall apply with respect to the 
        promulgation of regulations under this subsection.
            (4) Effect of subsection.--The authority provided under 
        this subsection is in addition to, and does not impair or 
        otherwise affect, any other authority of the Secretary or the 
        Commission to prescribe regulations.
    (m) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 935. TRANSPARENCY IN EXTRACTIVE INDUSTRIES RESOURCE PAYMENTS.

    (a) Purpose.--The purpose of this section is to--
            (1) ensure greater United States energy security by 
        combating corruption in the governments of foreign countries 
        that receive revenues from the sale of their natural resources; 
        and
            (2) enhance the development of democracy and increase 
        political and economic stability in such resource rich foreign 
        countries.
    (b) Statement of Policy.--It is the policy of the United States--
            (1) to increase energy security by promoting anti-
        corruption initiatives in oil and natural gas rich countries; 
        and
            (2) to promote global energy security through promotion of 
        programs such as the Extractive Industries Transparency 
        Initiative (EITI) that seek to instill transparency and 
        accountability into extractive industries resource payments.
    (c) Sense of Congress.--It is the sense of Congress that the United 
States should further global energy security and promote democratic 
development in resource-rich foreign countries by--
            (1) encouraging further participation in the EITI by 
        eligible countries and companies; and
            (2) promoting the efficacy of the EITI program by ensuring 
        a robust and candid review mechanism.
    (d) Report.--
            (1) Report required.--Not later than 180 days after the 
        date of the enactment of this Act, and annually thereafter, the 
        Secretary of State, in consultation with the Secretary of 
        Energy, shall submit to the appropriate congressional 
        committees a report on progress made in promoting transparency 
        in extractive industries resource payments.
            (2) Matters to be included.--The report required by 
        paragraph (1) shall include a detailed description of United 
        States participation in the EITI, bilateral and multilateral 
        diplomatic efforts to further participation in the EITI, and 
        other United States initiatives to strengthen energy security, 
        deter energy kleptocracy, and promote transparency in the 
        extractive industries.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated $3,000,000 for the purposes of United States contributions 
to the Multi-Donor Trust Fund of the EITI.

                          TITLE X--GREEN JOBS

SEC. 1001. SHORT TITLE.

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

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

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

           TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE

                Subtitle A--Department of Transportation

SEC. 1101. OFFICE OF CLIMATE CHANGE AND ENVIRONMENT.

    (a) In General.--Section 102 of title 49, United States Code, is 
amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following:
    ``(g) Office of Climate Change and Environment.--
            ``(1) Establishment.--There is established in the 
        Department an Office of Climate Change and Environment to plan, 
        coordinate, and implement--
                    ``(A) department-wide research, strategies, and 
                actions under the Department's statutory authority to 
                reduce transportation-related energy use and mitigate 
                the effects of climate change; and
                    ``(B) department-wide research strategies and 
                actions to address the impacts of climate change on 
                transportation systems and infrastructure.
            ``(2) Clearinghouse.--The Office shall establish a 
        clearinghouse of solutions, including cost-effective congestion 
        reduction approaches, to reduce air pollution and 
        transportation-related energy use and mitigate the effects of 
        climate change.''.
    (b) Coordination.--The Office of Climate Change and Environment of 
the Department of Transportation shall coordinate its activities with 
the United States Global Change Research Program.
    (c) Transportation System's Impact on Climate Change and Fuel 
Efficiency.--
            (1) Study.--The Office of Climate Change and Environment, 
        in coordination with the Environmental Protection Agency and in 
        consultation with the United States Global Change Research 
        Program, shall conduct a study to examine the impact of the 
        Nation's transportation system on climate change and the fuel 
        efficiency savings and clean air impacts of major 
        transportation projects, to identify solutions to reduce air 
        pollution and transportation-related energy use and mitigate 
        the effects of climate change, and to examine the potential 
        fuel savings that could result from changes in the current 
        transportation system and through the use of intelligent 
        transportation systems that help businesses and consumers to 
        plan their travel and avoid delays, including Web-based real-
        time transit information systems, congestion information 
        systems, carpool information systems, parking information 
        systems, freight route management systems, and traffic 
        management systems.
            (2) Report.--Not later than one year after the date of 
        enactment of this Act, the Secretary of Transportation, in 
        coordination with the Administrator of the Environmental 
        Protection Agency, shall transmit to the Committee on 
        Transportation and Infrastructure and the Committee on Energy 
        and Commerce of the House of Representatives and the Committee 
        on Commerce, Science, and Transportation and the Committee on 
        Environment and Public Works of the Senate a report that 
        contains the results of the study required under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation for the Office of 
Climate Change and Environment to carry out its duties under section 
102(g) of title 49, United States Code (as amended by this Act), such 
sums as may be necessary for fiscal years 2008 through 2011.

                         Subtitle B--Railroads

SEC. 1111. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT PILOT PROGRAM.

    (a) In General.--The Secretary of Transportation, in consultation 
with the Administrator of the Environmental Protection Agency, shall 
establish and carry out a pilot program for making grants to railroad 
carriers (as defined in section 20102 of title 49, United States Code) 
and State and local governments--
            (1) for assistance in purchasing hybrid or other energy-
        efficient locomotives, including hybrid switch and generator-
        set locomotives; and
            (2) to demonstrate the extent to which such locomotives 
        increase fuel economy, reduce emissions, and lower costs of 
        operation.
    (b) Limitation.--Notwithstanding subsection (a), no grant under 
this section may be used to fund the costs of emissions reductions that 
are mandated under Federal law.
    (c) Grant Criteria.--In selecting applicants for grants under this 
section, the Secretary of Transportation shall consider--
            (1) the level of energy efficiency that would be achieved 
        by the proposed project;
            (2) the extent to which the proposed project would assist 
        in commercial deployment of hybrid or other energy-efficient 
        locomotive technologies;
            (3) the extent to which the proposed project complements 
        other private or governmental partnership efforts to improve 
        air quality or fuel efficiency in a particular area; and
            (4) the extent to which the applicant demonstrates 
        innovative strategies and a financial commitment to increasing 
        energy efficiency and reducing greenhouse gas emissions of its 
        railroad operations.
    (d) Competitive Grant Selection Process.--
            (1) Applications.--A railroad carrier or State or local 
        government seeking a grant under this section shall submit for 
        approval by the Secretary of Transportation an application for 
        the grant containing such information as the Secretary of 
        Transportation may require.
            (2) Competitive selection.--The Secretary of Transportation 
        shall conduct a national solicitation for applications for 
        grants under this section and shall select grantees on a 
        competitive basis.
    (e) Federal Share.--The Federal share of the cost of a project 
under this section shall not exceed 80 percent of the project cost.
    (f) Report.--Not later than 3 years after the date of enactment of 
this Act, the Secretary of Transportation shall submit to Congress a 
report on the results of the pilot program carried out under this 
section.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Transportation $10,000,000 for each of 
the fiscal years 2008 through 2011 to carry out this section. Such 
funds shall remain available until expended.

SEC. 1112. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS.

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

   ``CHAPTER 223--CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS

``Sec.
``22301. Capital grants for class II and class III railroads.
``Sec. 22301. Capital grants for class II and class III railroads
    ``(a) Establishment of Program.--
            ``(1) Establishment.--The Secretary of Transportation shall 
        establish a program for making capital grants to class II and 
        class III railroads. Such grants shall be for projects in the 
        public interest that--
                    ``(A)(i) rehabilitate, preserve, or improve 
                railroad track (including roadbed, bridges, and related 
                track structures) used primarily for freight 
                transportation;
                    ``(ii) facilitate the continued or greater use of 
                railroad transportation for freight shipments; and
                    ``(iii) reduce the use of less fuel efficient modes 
                of transportation in the transportation of such 
                shipments; and
                    ``(B) demonstrate innovative technologies and 
                advanced research and development that increase fuel 
                economy, reduce greenhouse gas emissions, and lower the 
                costs of operation.
            ``(2) Provision of grants.--Grants may be provided under 
        this chapter--
                    ``(A) directly to the class II or class III 
                railroad; or
                    ``(B) with the concurrence of the class II or class 
                III railroad, to a State or local government.
            ``(3) State cooperation.--Class II and class III railroad 
        applicants for a grant under this chapter are encouraged to 
        utilize the expertise and assistance of State transportation 
        agencies in applying for and administering such grants. State 
        transportation agencies are encouraged to provide such 
        expertise and assistance to such railroads.
            ``(4) Regulations.--Not later than October 1, 2008, the 
        Secretary shall issue final regulations to implement the 
        program under this section.
    ``(b) Maximum Federal Share.--The maximum Federal share for 
carrying out a project under this section shall be 80 percent of the 
project cost. The non-Federal share may be provided by any non-Federal 
source in cash, equipment, or supplies. Other in-kind contributions may 
be approved by the Secretary on a case-by-case basis consistent with 
this chapter.
    ``(c) Use of Funds.--Grants provided under this section shall be 
used to implement track capital projects as soon as possible. In no 
event shall grant funds be contractually obligated for a project later 
than the end of the third Federal fiscal year following the year in 
which the grant was awarded. Any funds not so obligated by the end of 
such fiscal year shall be returned to the Secretary for reallocation.
    ``(d) Employee Protection.--The Secretary shall require as a 
condition of any grant made under this section that the recipient 
railroad provide a fair arrangement at least as protective of the 
interests of employees who are affected by the project to be funded 
with the grant as the terms imposed under section 11326(a), as in 
effect on the date of the enactment of this chapter.
    ``(e) Labor Standards.--
            ``(1) Prevailing wages.--The Secretary shall ensure that 
        laborers and mechanics employed by contractors and 
        subcontractors in construction work financed by a grant made 
        under this section will be paid wages not less than those 
        prevailing on similar construction in the locality, as 
        determined by the Secretary of Labor under subchapter IV of 
        chapter 31 of title 40 (commonly known as the `Davis-Bacon 
        Act'). The Secretary shall make a grant under this section only 
        after being assured that required labor standards will be 
        maintained on the construction work.
            ``(2) Wage rates.--Wage rates in a collective bargaining 
        agreement negotiated under the Railway Labor Act (45 U.S.C. 151 
        et seq.) are deemed for purposes of this subsection to comply 
        with the subchapter IV of chapter 31 of title 40.
    ``(f) Study.--The Secretary shall conduct a study of the projects 
carried out with grant assistance under this section to determine the 
extent to which the program helps promote a reduction in fuel use 
associated with the transportation of freight and demonstrates 
innovative technologies that increase fuel economy, reduce greenhouse 
gas emissions, and lower the costs of operation. Not later than March 
31, 2009, the Secretary shall submit a report to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate on 
the study, including any recommendations the Secretary considers 
appropriate regarding the program.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $50,000,000 for each of fiscal years 2008 
through 2011 for carrying out this section.''.
    (b) Clerical Amendment.--The item relating to chapter 223 in the 
table of chapters of subtitle V of title 49, United States Code, is 
amended to read as follows:

``223. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS..   22301''.

                   Subtitle C--Marine Transportation

SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE.

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

                ``CHAPTER 556--SHORT SEA TRANSPORTATION

``Sec. 55601. Short sea transportation program.
``Sec. 55602. Cargo and shippers.
``Sec. 55603. Interagency coordination.
``Sec. 55604. Research on short sea transportation.
``Sec. 55605. Short sea transportation defined.
``Sec. 55601. Short sea transportation program
    ``(a) Establishment.--The Secretary of Transportation shall 
establish a short sea transportation program and designate short sea 
transportation projects to be conducted under the program to mitigate 
landside congestion.
    ``(b) Program Elements.--The program shall encourage the use of 
short sea transportation through the development and expansion of--
            ``(1) documented vessels;
            ``(2) shipper utilization;
            ``(3) port and landside infrastructure; and
            ``(4) marine transportation strategies by State and local 
        governments.
    ``(c) Short Sea Transportation Routes.--The Secretary shall 
designate short sea transportation routes as extensions of the surface 
transportation system to focus public and private efforts to use the 
waterways to relieve landside congestion along coastal corridors. The 
Secretary may collect and disseminate data for the designation and 
delineation of short sea transportation routes.
    ``(d) Project Designation.--The Secretary may designate a project 
to be a short sea transportation project if the Secretary determines 
that the project may--
            ``(1) offer a waterborne alternative to available landside 
        transportation services using documented vessels; and
            ``(2) provide transportation services for passengers or 
        freight (or both) that may reduce congestion on landside 
        infrastructure using documented vessels.
    ``(e) Elements of Program.--For a short sea transportation project 
designated under this section, the Secretary may--
            ``(1) promote the development of short sea transportation 
        services;
            ``(2) coordinate, with ports, State departments of 
        transportation, localities, other public agencies, and the 
        private sector and on the development of landside facilities 
        and infrastructure to support short sea transportation 
        services; and
            ``(3) develop performance measures for the short sea 
        transportation program.
    ``(f) Multistate, State and Regional Transportation Planning.--The 
Secretary, in consultation with Federal entities and State and local 
governments, shall develop strategies to encourage the use of short sea 
transportation for transportation of passengers and cargo. The 
Secretary shall--
            ``(1) assess the extent to which States and local 
        governments include short sea transportation and other marine 
        transportation solutions in their transportation planning;
            ``(2) encourage State departments of transportation to 
        develop strategies, where appropriate, to incorporate short sea 
        transportation, ferries, and other marine transportation 
        solutions for regional and interstate transport of freight and 
        passengers in their transportation planning; and
            ``(3) encourage groups of States and multi-State 
        transportation entities to determine how short sea 
        transportation can address congestion, bottlenecks, and other 
        interstate transportation challenges.
``Sec. 55602. Cargo and shippers
    ``(a) Memorandums of Agreement.--The Secretary of Transportation 
shall enter into memorandums of understanding with the heads of other 
Federal entities to transport federally owned or generated cargo using 
a short sea transportation project designated under section 55601 when 
practical or available.
    ``(b) Short-Term Incentives.--The Secretary shall consult shippers 
and other participants in transportation logistics and develop 
proposals for short-term incentives to encourage the use of short sea 
transportation.
``Sec. 55603. Interagency coordination
    ``The Secretary of Transportation shall establish a board to 
identify and seek solutions to impediments hindering effective use of 
short sea transportation. The board shall include representatives of 
the Environmental Protection Agency and other Federal, State, and local 
governmental entities and private sector entities.
``Sec. 55604. Research on short sea transportation
    ``The Secretary of Transportation, in consultation with the 
Administrator of the Environmental Protection Agency, may conduct 
research on short sea transportation, regarding--
            ``(1) the environmental and transportation benefits to be 
        derived from short sea transportation alternatives for other 
        forms of transportation;
            ``(2) technology, vessel design, and other improvements 
        that would reduce emissions, increase fuel economy, and lower 
        costs of short sea transportation and increase the efficiency 
        of intermodal transfers; and
            ``(3) solutions to impediments to short sea transportation 
        projects designated under section 55601.
``Sec. 55605. Short sea transportation defined
    ``In this chapter, the term `short sea transportation' means the 
carriage by vessel of cargo--
            ``(1) that is--
                    ``(A) contained in intermodal cargo containers and 
                loaded by crane on the vessel; or
                    ``(B) loaded on the vessel by means of wheeled 
                technology; and
            ``(2) that is--
                    ``(A) loaded at a port in the United States and 
                unloaded either at another port in the United States or 
                at a port in Canada located in the Great Lakes Saint 
                Lawrence Seaway System; or
                    ``(B) loaded at a port in Canada located in the 
                Great Lakes Saint Lawrence Seaway System and unloaded 
                at a port in the United States.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
subtitle V of such title is amended by inserting after the item 
relating to chapter 555 the following:

``556. Short Sea Transportation.............................   55601''.
    (c) Regulations.--
            (1) Interim regulations.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary of Transportation 
        shall issue temporary regulations to implement the program 
        under this section. Subchapter II of chapter 5 of title 5, 
        United States Code, does not apply to a temporary regulation 
        issued under this paragraph or to an amendment to such a 
        temporary regulation.
            (2) Final regulations.--Not later than October 1, 2008, the 
        Secretary of Transportation shall issue final regulations to 
        implement the program under this section.

SEC. 1122. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL CONSTRUCTION 
              FUND.

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

SEC. 1123. SHORT SEA TRANSPORTATION REPORT.

    Not later than one year after the date of enactment of this Act, 
the Secretary of Transportation, in consultation with the Administrator 
of the Environmental Protection Agency, shall submit to the Committee 
on Transportation and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of the 
Senate a report on the short sea transportation program established 
under the amendments made by section 1121. The report shall include a 
description of the activities conducted under the program, and any 
recommendations for further legislative or administrative action that 
the Secretary of Transportation considers appropriate.

                          Subtitle D--Highways

SEC. 1131. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS.

    Section 120(c) of title 23, United States Code, is amended--
            (1) in the subsection heading by striking ``for Certain 
        Safety Projects'';
            (2) by striking ``The Federal share'' and inserting the 
        following:
            ``(1) Certain safety projects.--The Federal share''; and
            (3) by adding at the end the following:
            ``(2) CMAQ projects.--The Federal share payable on account 
        of a project or program carried out under section 149 with 
        funds obligated in fiscal year 2008 or 2009, or both, shall be 
        not less than 80 percent and, at the discretion of the State, 
        may be up to 100 percent of the cost thereof.''.

SEC. 1132. DISTRIBUTION OF RESCISSIONS.

    (a) In General.--Any unobligated balances of amounts that are 
appropriated from the Highway Trust Fund for a fiscal year, and 
apportioned under chapter 1 of title 23, United States Code, before, 
on, or after the date of enactment of this Act and that are rescinded 
in fiscal year 2008 or fiscal year 2009 shall be distributed by the 
Secretary of Transportation within each State (as defined in section 
101 of such title) among all programs for which funds are apportioned 
under such chapter for such fiscal year, to the extent sufficient funds 
remain available for obligation, in the ratio that the amount of funds 
apportioned for each program under such chapter for such fiscal year, 
bears to the amount of funds apportioned for all such programs under 
such chapter for such fiscal year.
    (b) Adjustments.--A State may make adjustments to the distribution 
of a rescission within the State for a fiscal year under subsection (a) 
by transferring the amounts to be rescinded among the programs for 
which funds are apportioned under chapter 1 of title 23, United States 
Code, for such fiscal year, except that in making such adjustments the 
State may not rescind from any such program more than 110 percent of 
the funds to be rescinded from the program for the fiscal year as 
determined by the Secretary of Transportation under subsection (a).
    (c) Treatment of Transportation Enhancement Set-Aside and Funds 
Suballocated to Substate Areas.--Funds set aside under sections 
133(d)(2) and 133(d)(3) of title 23, United States Code, shall be 
treated as being apportioned under chapter 1 of such title for purposes 
of subsection (a).

SEC. 1133. SENSE OF CONGRESS REGARDING USE OF COMPLETE STREETS DESIGN 
              TECHNIQUES.

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

               TITLE XII--SMALL BUSINESS ENERGY PROGRAMS

SEC. 1201. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY.

    Section 7(a)(31) of the Small Business Act (15 U.S.C. 636(a)(31)) 
is amended by adding at the end the following:
                    ``(F) Express loans for renewable energy and energy 
                efficiency.--
                            ``(i) Definitions.--In this subparagraph--
                                    ``(I) the term `biomass'--
                                            ``(aa) means any organic 
                                        material that is available on a 
                                        renewable or recurring basis, 
                                        including--

                                                    ``(AA) agricultural 
                                                crops;

                                                    ``(BB) trees grown 
                                                for energy production;

                                                    ``(CC) wood waste 
                                                and wood residues;

                                                    ``(DD) plants 
                                                (including aquatic 
                                                plants and grasses);

                                                    ``(EE) residues;

                                                    ``(FF) fibers;

                                                    ``(GG) animal 
                                                wastes and other waste 
                                                materials; and

                                                    ``(HH) fats, oils, 
                                                and greases (including 
                                                recycled fats, oils, 
                                                and greases); and

                                            ``(bb) does not include--

                                                    ``(AA) paper that 
                                                is commonly recycled; 
                                                or

                                                    ``(BB) unsegregated 
                                                solid waste;

                                    ``(II) the term `energy efficiency 
                                project' means the installation or 
                                upgrading of equipment that results in 
                                a significant reduction in energy 
                                usage; and
                                    ``(III) the term `renewable energy 
                                system' means a system of energy 
                                derived from--
                                            ``(aa) a wind, solar, 
                                        biomass (including biodiesel), 
                                        or geothermal source; or
                                            ``(bb) hydrogen derived 
                                        from biomass or water using an 
                                        energy source described in item 
                                        (aa).
                            ``(ii) Loans.--The Administrator may make a 
                        loan under the Express Loan Program for the 
                        purpose of--
                                    ``(I) purchasing a renewable energy 
                                system; or
                                    ``(II) carrying out an energy 
                                efficiency project for a small business 
                                concern.''.

SEC. 1202. PILOT PROGRAM FOR REDUCED 7(A) FEES FOR PURCHASE OF ENERGY 
              EFFICIENT TECHNOLOGIES.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended by adding at the end the following:
            ``(32) Loans for energy efficient technologies.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the term `cost' has the meaning given 
                        that term in section 502 of the Federal Credit 
                        Reform Act of 1990 (2 U.S.C. 661a);
                            ``(ii) the term `covered energy efficiency 
                        loan' means a loan--
                                    ``(I) made under this subsection; 
                                and
                                    ``(II) the proceeds of which are 
                                used to purchase energy efficient 
                                designs, equipment, or fixtures, or to 
                                reduce the energy consumption of the 
                                borrower by 10 percent or more; and
                            ``(iii) the term `pilot program' means the 
                        pilot program established under subparagraph 
                        (B)
                    ``(B) Establishment.--The Administrator shall 
                establish and carry out a pilot program under which the 
                Administrator shall reduce the fees for covered energy 
                efficiency loans.
                    ``(C) Duration.--The pilot program shall terminate 
                at the end of the second full fiscal year after the 
                date that the Administrator establishes the pilot 
                program.
                    ``(D) Maximum participation.--A covered energy 
                efficiency loan shall include the maximum participation 
                levels by the Administrator permitted for loans made 
                under this subsection.
                    ``(E) Fees.--
                            ``(i) In general.--The fee on a covered 
                        energy efficiency loan shall be equal to 50 
                        percent of the fee otherwise applicable to that 
                        loan under paragraph (18).
                            ``(ii) Waiver.--The Administrator may waive 
                        clause (i) for a fiscal year if--
                                    ``(I) for the fiscal year before 
                                that fiscal year, the annual rate of 
                                default of covered energy efficiency 
                                loans exceeds that of loans made under 
                                this subsection that are not covered 
                                energy efficiency loans;
                                    ``(II) the cost to the 
                                Administration of making loans under 
                                this subsection is greater than zero 
                                and such cost is directly attributable 
                                to the cost of making covered energy 
                                efficiency loans; and
                                    ``(III) no additional sources of 
                                revenue authority are available to 
                                reduce the cost of making loans under 
                                this subsection to zero.
                            ``(iii) Effect of waiver.--If the 
                        Administrator waives the reduction of fees 
                        under clause (ii), the Administrator--
                                    ``(I) shall not assess or collect 
                                fees in an amount greater than 
                                necessary to ensure that the cost of 
                                the program under this subsection is 
                                not greater than zero; and
                                    ``(II) shall reinstate the fee 
                                reductions under clause (i) when the 
                                conditions in clause (ii) no longer 
                                apply.
                            ``(iv) No increase of fees.--The 
                        Administrator shall not increase the fees under 
                        paragraph (18) on loans made under this 
                        subsection that are not covered energy 
                        efficiency loans as a direct result of the 
                        pilot program.
                    ``(F) GAO report.--
                            ``(i) In general.--Not later than 1 year 
                        after the date that the pilot program 
                        terminates, the Comptroller General of the 
                        United States shall submit to the Committee on 
                        Small Business of the House of Representatives 
                        and the Committee on Small Business and 
                        Entrepreneurship of the Senate a report on the 
                        pilot program.
                            ``(ii) Contents.--The report submitted 
                        under clause (i) shall include--
                                    ``(I) the number of covered energy 
                                efficiency loans for which fees were 
                                reduced under the pilot program;
                                    ``(II) a description of the energy 
                                efficiency savings with the pilot 
                                program;
                                    ``(III) a description of the impact 
                                of the pilot program on the program 
                                under this subsection;
                                    ``(IV) an evaluation of the 
                                efficacy and potential fraud and abuse 
                                of the pilot program; and
                                    ``(V) recommendations for improving 
                                the pilot program.''.

SEC. 1203. SMALL BUSINESS ENERGY EFFICIENCY.

    (a) Definitions.--In this section--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``association'' means the association of small 
        business development centers established under section 
        21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A));
            (3) the term ``disability'' has the meaning given that term 
        in section 3 of the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12102);
            (4) the term ``Efficiency Program'' means the Small 
        Business Energy Efficiency Program established under subsection 
        (c)(1);
            (5) the term ``electric utility'' has the meaning given 
        that term in section 3 of the Public Utility Regulatory 
        Policies Act of 1978 (16 U.S.C. 2602);
            (6) the term ``high performance green building'' has the 
        meaning given that term in section 401;
            (7) the term ``on-bill financing'' means a low interest or 
        no interest financing agreement between a small business 
        concern and an electric utility for the purchase or 
        installation of equipment, under which the regularly scheduled 
        payment of that small business concern to that electric utility 
        is not reduced by the amount of the reduction in cost 
        attributable to the new equipment and that amount is credited 
        to the electric utility, until the cost of the purchase or 
        installation is repaid;
            (8) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 U.S.C. 
        632);
            (9) the term ``small business development center'' means a 
        small business development center described in section 21 of 
        the Small Business Act (15 U.S.C. 648);
            (10) the term ``telecommuting'' means the use of 
        telecommunications to perform work functions under 
        circumstances which reduce or eliminate the need to commute;
            (11) the term ``Telecommuting Pilot Program'' means the 
        pilot program established under subsection (d)(1)(A); and
            (12) the term ``veteran'' has the meaning given that term 
        in section 101 of title 38, United States Code.
    (b) Implementation of Small Business Energy Efficiency Program.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator shall promulgate final 
        rules establishing the Government-wide program authorized under 
        subsection (d) of section 337 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6307) that ensure compliance with 
        that subsection by not later than 6 months after such date of 
        enactment.
            (2) Program required.--The Administrator shall develop and 
        coordinate a Government-wide program, building on the Energy 
        Star for Small Business program, to assist small business 
        concerns in--
                    (A) becoming more energy efficient;
                    (B) understanding the cost savings from improved 
                energy efficiency; and
                    (C) identifying financing options for energy 
                efficiency upgrades.
            (3) Consultation and cooperation.--The program required by 
        paragraph (2) shall be developed and coordinated--
                    (A) in consultation with the Secretary of Energy 
                and the Administrator of the Environmental Protection 
                Agency; and
                    (B) in cooperation with any entities the 
                Administrator considers appropriate, such as industry 
                trade associations, industry members, and energy 
                efficiency organizations.
            (4) Availability of information.--The Administrator shall 
        make available the information and materials developed under 
        the program required by paragraph (2) to--
                    (A) small business concerns, including smaller 
                design, engineering, and construction firms; and
                    (B) other Federal programs for energy efficiency, 
                such as the Energy Star for Small Business program.
            (5) Strategy and report.--
                    (A) Strategy required.--The Administrator shall 
                develop a strategy to educate, encourage, and assist 
                small business concerns in adopting energy efficient 
                building fixtures and equipment.
                    (B) Report.--Not later than December 31, 2008, the 
                Administrator shall submit to Congress a report 
                containing a plan to implement the strategy developed 
                under subparagraph (A).
    (c) Small Business Sustainability Initiative.--
            (1) Authority.--The Administrator shall establish a Small 
        Business Energy Efficiency Program to provide energy efficiency 
        assistance to small business concerns through small business 
        development centers.
            (2) Small business development centers.--
                    (A) In general.--In carrying out the Efficiency 
                Program, the Administrator shall enter into agreements 
                with small business development centers under which 
                such centers shall--
                            (i) provide access to information and 
                        resources on energy efficiency practices, 
                        including on-bill financing options;
                            (ii) conduct training and educational 
                        activities;
                            (iii) offer confidential, free, one-on-one, 
                        in-depth energy audits to the owners and 
                        operators of small business concerns regarding 
                        energy efficiency practices;
                            (iv) give referrals to certified 
                        professionals and other providers of energy 
                        efficiency assistance who meet such standards 
                        for educational, technical, and professional 
                        competency as the Administrator shall 
                        establish;
                            (v) to the extent not inconsistent with 
                        controlling State public utility regulations, 
                        act as a facilitator between small business 
                        concerns, electric utilities, lenders, and the 
                        Administration to facilitate on-bill financing 
                        arrangements;
                            (vi) provide necessary support to small 
                        business concerns to--
                                    (I) evaluate energy efficiency 
                                opportunities and opportunities to 
                                design or construct high performance 
                                green buildings;
                                    (II) evaluate renewable energy 
                                sources, such as the use of solar and 
                                small wind to supplement power 
                                consumption;
                                    (III) secure financing to achieve 
                                energy efficiency or to design or 
                                construct high performance green 
                                buildings; and
                                    (IV) implement energy efficiency 
                                projects;
                            (vii) assist owners of small business 
                        concerns with the development and 
                        commercialization of clean technology products, 
                        goods, services, and processes that use 
                        renewable energy sources, dramatically reduce 
                        the use of natural resources, and cut or 
                        eliminate greenhouse gas emissions through--
                                    (I) technology assessment;
                                    (II) intellectual property;
                                    (III) Small Business Innovation 
                                Research submissions under section 9 of 
                                the Small Business Act (15 U.S.C. 638);
                                    (IV) strategic alliances;
                                    (V) business model development; and
                                    (VI) preparation for investors; and
                            (viii) help small business concerns improve 
                        environmental performance by shifting to less 
                        hazardous materials and reducing waste and 
                        emissions, including by providing assistance 
                        for small business concerns to adapt the 
                        materials they use, the processes they operate, 
                        and the products and services they produce.
                    (B) Reports.--Each small business development 
                center participating in the Efficiency Program shall 
                submit to the Administrator and the Administrator of 
                the Environmental Protection Agency an annual report 
                that includes--
                            (i) a summary of the energy efficiency 
                        assistance provided by that center under the 
                        Efficiency Program;
                            (ii) the number of small business concerns 
                        assisted by that center under the Efficiency 
                        Program;
                            (iii) statistics on the total amount of 
                        energy saved as a result of assistance provided 
                        by that center under the Efficiency Program; 
                        and
                            (iv) any additional information determined 
                        necessary by the Administrator, in consultation 
                        with the association.
                    (C) Reports to congress.--Not later than 60 days 
                after the date on which all reports under subparagraph 
                (B) relating to a year are submitted, the Administrator 
                shall submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives a report 
                summarizing the information regarding the Efficiency 
                Program submitted by small business development centers 
                participating in that program.
            (3) Eligibility.--A small business development center shall 
        be eligible to participate in the Efficiency Program only if 
        that center is certified under section 21(k)(2) of the Small 
        Business Act (15 U.S.C. 648(k)(2)).
            (4) Selection of participating state programs.--From among 
        small business development centers submitting applications to 
        participate in the Efficiency Program, the Administrator--
                    (A) shall, to the maximum extent practicable, 
                select small business development centers in such a 
                manner so as to promote a nationwide distribution of 
                centers participating in the Efficiency Program; and
                    (B) may not select more than 1 small business 
                development center in a State to participate in the 
                Efficiency Program.
            (5) Matching requirement.--Subparagraphs (A) and (B) of 
        section 21(a)(4) of the Small Business Act (15 U.S.C. 
        648(a)(4)) shall apply to assistance made available under the 
        Efficiency Program.
            (6) Grant amounts.--Each small business development center 
        selected to participate in the Efficiency Program under 
        paragraph (4) shall be eligible to receive a grant in an amount 
        equal to--
                    (A) not less than $100,000 in each fiscal year; and
                    (B) not more than $300,000 in each fiscal year.
            (7) Evaluation and report.--The Comptroller General of the 
        United States shall--
                    (A) not later than 30 months after the date of 
                disbursement of the first grant under the Efficiency 
                Program, initiate an evaluation of that program; and
                    (B) not later than 6 months after the date of the 
                initiation of the evaluation under subparagraph (A), 
                submit to the Administrator, the Committee on Small 
                Business and Entrepreneurship of the Senate, and the 
                Committee on Small Business of the House of 
                Representatives, a report containing--
                            (i) the results of the evaluation; and
                            (ii) any recommendations regarding whether 
                        the Efficiency Program, with or without 
                        modification, should be extended to include the 
                        participation of all small business development 
                        centers.
            (8) Guarantee.--To the extent not inconsistent with State 
        law, the Administrator may guarantee the timely payment of a 
        loan made to a small business concern through an on-bill 
        financing agreement on such terms and conditions as the 
        Administrator shall establish through a formal rule making, 
        after providing notice and an opportunity for comment.
            (9) Implementation.--Subject to amounts approved in advance 
        in appropriations Acts and separate from amounts approved to 
        carry out section 21(a)(1) of the Small Business Act (15 U.S.C. 
        648(a)(1)), the Administrator may make grants or enter into 
        cooperative agreements to carry out this subsection.
            (10) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to make grants 
        and enter into cooperative agreements to carry out this 
        subsection.
            (11) Termination.--The authority under this subsection 
        shall terminate 4 years after the date of disbursement of the 
        first grant under the Efficiency Program.
    (d) Small Business Telecommuting.--
            (1) Pilot program.--
                    (A) In general.--The Administrator shall conduct, 
                in not more than 5 of the regions of the 
                Administration, a pilot program to provide information 
                regarding telecommuting to employers that are small 
                business concerns and to encourage such employers to 
                offer telecommuting options to employees.
                    (B) Special outreach to individuals with 
                disabilities.--In carrying out the Telecommuting Pilot 
                Program, the Administrator shall make a concerted 
                effort to provide information to--
                            (i) small business concerns owned by or 
                        employing individuals with disabilities, 
                        particularly veterans who are individuals with 
                        disabilities;
                            (ii) Federal, State, and local agencies 
                        having knowledge and expertise in assisting 
                        individuals with disabilities, including 
                        veterans who are individuals with disabilities; 
                        and
                            (iii) any group or organization, the 
                        primary purpose of which is to aid individuals 
                        with disabilities or veterans who are 
                        individuals with disabilities.
                    (C) Permissible activities.--In carrying out the 
                Telecommuting Pilot Program, the Administrator may--
                            (i) produce educational materials and 
                        conduct presentations designed to raise 
                        awareness in the small business community of 
                        the benefits and the ease of telecommuting;
                            (ii) conduct outreach--
                                    (I) to small business concerns that 
                                are considering offering telecommuting 
                                options; and
                                    (II) as provided in subparagraph 
                                (B); and
                            (iii) acquire telecommuting technologies 
                        and equipment to be used for demonstration 
                        purposes.
                    (D) Selection of regions.--In determining which 
                regions will participate in the Telecommuting Pilot 
                Program, the Administrator shall give priority 
                consideration to regions in which Federal agencies and 
                private-sector employers have demonstrated a strong 
                regional commitment to telecommuting.
            (2) Report to congress.--Not later than 2 years after the 
        date on which funds are first appropriated to carry out this 
        subsection, the Administrator shall transmit to the Committee 
        on Small Business and Entrepreneurship of the Senate and the 
        Committee on Small Business of the House of Representatives a 
        report containing the results of an evaluation of the 
        Telecommuting Pilot Program and any recommendations regarding 
        whether the pilot program, with or without modification, should 
        be extended to include the participation of all regions of the 
        Administration.
            (3) Termination.--The Telecommuting Pilot Program shall 
        terminate 4 years after the date on which funds are first 
        appropriated to carry out this subsection.
            (4) Authorization of appropriations.--There is authorized 
        to be appropriated to the Administration $5,000,000 to carry 
        out this subsection.
    (e) Encouraging Innovation in Energy Efficiency.--Section 9 of the 
Small Business Act (15 U.S.C. 638) is amended by adding at the end the 
following:
    ``(z) Encouraging Innovation in Energy Efficiency.--
            ``(1) Federal agency energy-related priority.--In carrying 
        out its duties under this section relating to SBIR and STTR 
        solicitations by Federal departments and agencies, the 
        Administrator shall--
                    ``(A) ensure that such departments and agencies 
                give high priority to small business concerns that 
                participate in or conduct energy efficiency or 
                renewable energy system research and development 
                projects; and
                    ``(B) include in the annual report to Congress 
                under subsection (b)(7) a determination of whether the 
                priority described in subparagraph (A) is being carried 
                out.
            ``(2) Consultation required.--The Administrator shall 
        consult with the heads of other Federal departments and 
        agencies in determining whether priority has been given to 
        small business concerns that participate in or conduct energy 
        efficiency or renewable energy system research and development 
        projects, as required by this subsection.
            ``(3) Guidelines.--The Administrator shall, as soon as is 
        practicable after the date of enactment of this subsection, 
        issue guidelines and directives to assist Federal agencies in 
        meeting the requirements of this subsection.
            ``(4) Definitions.--In this subsection--
                    ``(A) the term `biomass'--
                            ``(i) means any organic material that is 
                        available on a renewable or recurring basis, 
                        including--
                                    ``(I) agricultural crops;
                                    ``(II) trees grown for energy 
                                production;
                                    ``(III) wood waste and wood 
                                residues;
                                    ``(IV) plants (including aquatic 
                                plants and grasses);
                                    ``(V) residues;
                                    ``(VI) fibers;
                                    ``(VII) animal wastes and other 
                                waste materials; and
                                    ``(VIII) fats, oils, and greases 
                                (including recycled fats, oils, and 
                                greases); and
                            ``(ii) does not include--
                                    ``(I) paper that is commonly 
                                recycled; or
                                    ``(II) unsegregated solid waste;
                    ``(B) the term `energy efficiency project' means 
                the installation or upgrading of equipment that results 
                in a significant reduction in energy usage; and
                    ``(C) the term `renewable energy system' means a 
                system of energy derived from--
                            ``(i) a wind, solar, biomass (including 
                        biodiesel), or geothermal source; or
                            ``(ii) hydrogen derived from biomass or 
                        water using an energy source described in 
                        clause (i).''.

SEC. 1204. LARGER 504 LOAN LIMITS TO HELP BUSINESS DEVELOP ENERGY 
              EFFICIENT TECHNOLOGIES AND PURCHASES.

    (a) Eligibility for Energy Efficiency Projects.--Section 501(d)(3) 
of the Small Business Investment Act of 1958 (15 U.S.C. 695(d)(3)) is 
amended--
            (1) in subparagraph (G) by striking ``or'' at the end;
            (2) in subparagraph (H) by striking the period at the end 
        and inserting a comma;
            (3) by inserting after subparagraph (H) the following:
                    ``(I) reduction of energy consumption by at least 
                10 percent,
                    ``(J) increased use of sustainable design, 
                including designs that reduce the use of greenhouse gas 
                emitting fossil fuels, or low-impact design to produce 
                buildings that reduce the use of non-renewable 
                resources and minimize environmental impact, or
                    ``(K) plant, equipment and process upgrades of 
                renewable energy sources such as the small-scale 
                production of energy for individual buildings or 
                communities consumption, commonly known as micropower, 
                or renewable fuels producers including biodiesel and 
                ethanol producers.''; and
            (4) by adding at the end the following: ``In subparagraphs 
        (J) and (K), terms have the meanings given those terms under 
        the Leadership in Energy and Environmental Design (LEED) 
        standard for green building certification, as determined by the 
        Administrator.''.
    (b) Loans for Plant Projects Used for Energy-Efficient Purposes.--
Section 502(2)(A) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)(A)) is amended--
            (1) in clause (ii) by striking ``and'' at the end;
            (2) in clause (iii) by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
                            ``(iv) $4,000,000 for each project that 
                        reduces the borrower's energy consumption by at 
                        least 10 percent; and
                            ``(v) $4,000,000 for each project that 
                        generates renewable energy or renewable fuels, 
                        such as biodiesel or ethanol production.''.

SEC. 1205. ENERGY SAVING DEBENTURES.

    (a) In General.--Section 303 of the Small Business Investment Act 
of 1958 (15 U.S.C. 683) is amended by adding at the end the following:
    ``(k) Energy Saving Debentures.--In addition to any other authority 
under this Act, a small business investment company licensed in the 
first fiscal year after the date of enactment of this subsection or any 
fiscal year thereafter may issue Energy Saving debentures.''.
    (b) Definitions.--Section 103 of the Small Business Investment Act 
of 1958 (15 U.S.C. 662) is amended--
            (1) in paragraph (16), by striking ``and'' at the end;
            (2) in paragraph (17), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(18) the term `Energy Saving debenture' means a deferred 
        interest debenture that--
                    ``(A) is issued at a discount;
                    ``(B) has a 5-year maturity or a 10-year maturity;
                    ``(C) requires no interest payment or annual charge 
                for the first 5 years;
                    ``(D) is restricted to Energy Saving qualified 
                investments; and
                    ``(E) is issued at no cost (as defined in section 
                502 of the Credit Reform Act of 1990) with respect to 
                purchasing and guaranteeing the debenture; and
            ``(19) the term `Energy Saving qualified investment' means 
        investment in a small business concern that is primarily 
        engaged in researching, manufacturing, developing, or providing 
        products, goods, or services that reduce the use or consumption 
        of non-renewable energy resources.''.

SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.

    (a) Maximum Leverage.--Section 303(b)(2) of the Small Business 
Investment Act of 1958 (15 U.S.C. 303(b)(2)) is amended by adding at 
the end the following:
                    ``(D) Investments in energy saving small 
                businesses.--
                            ``(i) In general.--Subject to clause (ii), 
                        in calculating the outstanding leverage of a 
                        company for purposes of subparagraph (A), the 
                        Administrator shall exclude the amount of the 
                        cost basis of any Energy Saving qualified 
                        investment in a smaller enterprise made in the 
                        first fiscal year after the date of enactment 
                        of this subparagraph or any fiscal year 
                        thereafter by a company licensed in the 
                        applicable fiscal year.
                            ``(ii) Limitations.--
                                    ``(I) Amount of exclusion.--The 
                                amount excluded under clause (i) for a 
                                company shall not exceed 33 percent of 
                                the private capital of that company.
                                    ``(II) Maximum investment.--A 
                                company shall not make an Energy Saving 
                                qualified investment in any one entity 
                                in an amount equal to more than 20 
                                percent of the private capital of that 
                                company.
                                    ``(III) Other terms.--The exclusion 
                                of amounts under clause (i) shall be 
                                subject to such terms as the 
                                Administrator may impose to ensure that 
                                there is no cost (as that term is 
                                defined in section 502 of the Federal 
                                Credit Reform Act of 1990 (2 U.S.C. 
                                661a)) with respect to purchasing or 
                                guaranteeing any debenture involved.''.
    (b) Maximum Aggregate Amount of Leverage.--Section 303(b)(4) of the 
Small Business Investment Act of 1958 (15 U.S.C. 303(b)(4)) is amended 
by adding at the end the following:
                    ``(E) Investments in energy saving small 
                businesses.--
                            ``(i) In general.--Subject to clause (ii), 
                        in calculating the aggregate outstanding 
                        leverage of a company for purposes of 
                        subparagraph (A), the Administrator shall 
                        exclude the amount of the cost basis of any 
                        Energy Saving qualified investment in a smaller 
                        enterprise made in the first fiscal year after 
                        the date of enactment of this subparagraph or 
                        any fiscal year thereafter by a company 
                        licensed in the applicable fiscal year.
                            ``(ii) Limitations.--
                                    ``(I) Amount of exclusion.--The 
                                amount excluded under clause (i) for a 
                                company shall not exceed 33 percent of 
                                the private capital of that company.
                                    ``(II) Maximum investment.--A 
                                company shall not make an Energy Saving 
                                qualified investment in any one entity 
                                in an amount equal to more than 20 
                                percent of the private capital of that 
                                company.
                                    ``(III) Other terms.--The exclusion 
                                of amounts under clause (i) shall be 
                                subject to such terms as the 
                                Administrator may impose to ensure that 
                                there is no cost (as that term is 
                                defined in section 502 of the Federal 
                                Credit Reform Act of 1990 (2 U.S.C. 
                                661a)) with respect to purchasing or 
                                guaranteeing any debenture involved.''.

SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.

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

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

``SEC. 381. DEFINITIONS.

    ``In this part:
            ``(1) Operational assistance.--The term `operational 
        assistance' means management, marketing, and other technical 
        assistance that assists a small business concern with business 
        development.
            ``(2) Participation agreement.--The term `participation 
        agreement' means an agreement, between the Administrator and a 
        company granted final approval under section 384(e), that--
                    ``(A) details the operating plan and investment 
                criteria of the company; and
                    ``(B) requires the company to make investments in 
                smaller enterprises primarily engaged in researching, 
                manufacturing, developing, producing, or bringing to 
                market goods, products, or services that generate or 
                support the production of renewable energy.
            ``(3) Renewable energy.--The term `renewable energy' means 
        energy derived from resources that are regenerative or that 
        cannot be depleted, including solar, wind, ethanol, and 
        biodiesel fuels.
            ``(4) Renewable fuel capital investment company.--The term 
        `Renewable Fuel Capital Investment company' means a company--
                    ``(A) that--
                            ``(i) has been granted final approval by 
                        the Administrator under section 384(e); and
                            ``(ii) has entered into a participation 
                        agreement with the Administrator; or
                    ``(B) that has received conditional approval under 
                section 384(c).
            ``(5) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any other 
        commonwealth, territory, or possession of the United States.
            ``(6) Venture capital.--The term `venture capital' means 
        capital in the form of equity capital investments, as that term 
        is defined in section 303(g)(4).

``SEC. 382. PURPOSES.

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

``SEC. 383. ESTABLISHMENT.

    ``The Administrator shall establish a Renewable Fuel Capital 
Investment Program, under which the Administrator may--
            ``(1) enter into participation agreements for the purposes 
        described in section 382; and
            ``(2) guarantee the debentures issued by Renewable Fuel 
        Capital Investment companies as provided in section 385.

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

    ``(a) Eligibility.--A company is eligible to apply to be designated 
as a Renewable Fuel Capital Investment company if the company--
            ``(1) is a newly formed for-profit entity or a newly formed 
        for-profit subsidiary of an existing entity;
            ``(2) has a management team with experience in alternative 
        energy financing or relevant venture capital financing; and
            ``(3) has a primary objective of investment in smaller 
        enterprises that research, manufacture, develop, produce, or 
        bring to market goods, products, or services that generate or 
        support the production of renewable energy.
    ``(b) Application.--A company desiring to be designated as a 
Renewable Fuel Capital Investment company shall submit an application 
to the Administrator that includes--
            ``(1) a business plan describing how the company intends to 
        make successful venture capital investments in smaller 
        enterprises primarily engaged in the research, manufacture, 
        development, production, or bringing to market of goods, 
        products, or services that generate or support the production 
        of renewable energy;
            ``(2) information regarding the relevant venture capital 
        qualifications and general reputation of the management of the 
        company;
            ``(3) a description of how the company intends to seek to 
        address the unmet capital needs of the smaller enterprises 
        served;
            ``(4) a proposal describing how the company intends to use 
        the grant funds provided under this part to provide operational 
        assistance to smaller enterprises financed by the company, 
        including information regarding whether the company has 
        employees with appropriate professional licenses or will 
        contract with another entity when the services of such an 
        individual are necessary;
            ``(5) with respect to binding commitments to be made to the 
        company under this part, an estimate of the ratio of cash to 
        in-kind contributions;
            ``(6) a description of whether and to what extent the 
        company meets the criteria under subsection (c)(2) and the 
        objectives of the program established under this part;
            ``(7) information regarding the management and financial 
        strength of any parent firm, affiliated firm, or any other firm 
        essential to the success of the business plan of the company; 
        and
            ``(8) such other information as the Administrator may 
        require.
    ``(c) Conditional Approval.--
            ``(1) In general.--From among companies submitting 
        applications under subsection (b), the Administrator shall 
        conditionally approve companies to operate as Renewable Fuel 
        Capital Investment companies.
            ``(2) Selection criteria.--In conditionally approving 
        companies under paragraph (1), the Administrator shall 
        consider--
                    ``(A) the likelihood that the company will meet the 
                goal of its business plan;
                    ``(B) the experience and background of the 
                management team of the company;
                    ``(C) the need for venture capital investments in 
                the geographic areas in which the company intends to 
                invest;
                    ``(D) the extent to which the company will 
                concentrate its activities on serving the geographic 
                areas in which it intends to invest;
                    ``(E) the likelihood that the company will be able 
                to satisfy the conditions under subsection (d);
                    ``(F) the extent to which the activities proposed 
                by the company will expand economic opportunities in 
                the geographic areas in which the company intends to 
                invest;
                    ``(G) the strength of the proposal by the company 
                to provide operational assistance under this part as 
                the proposal relates to the ability of the company to 
                meet applicable cash requirements and properly use in-
                kind contributions, including the use of resources for 
                the services of licensed professionals, when necessary, 
                whether provided by employees or contractors; and
                    ``(H) any other factor determined appropriate by 
                the Administrator.
            ``(3) Nationwide distribution.--From among companies 
        submitting applications under subsection (b), the Administrator 
        shall consider the selection criteria under paragraph (2) and 
        shall, to the maximum extent practicable, approve at least one 
        company from each geographic region of the Administration.
    ``(d) Requirements To Be Met for Final Approval.--
            ``(1) In general.--The Administrator shall grant each 
        conditionally approved company 2 years to satisfy the 
        requirements of this subsection.
            ``(2) Capital requirement.--Each conditionally approved 
        company shall raise not less than $3,000,000 of private capital 
        or binding capital commitments from 1 or more investors (which 
        shall not be departments or agencies of the Federal Government) 
        who meet criteria established by the Administrator.
            ``(3) Nonadministration resources for operational 
        assistance.--
                    ``(A) In general.--In order to provide operational 
                assistance to smaller enterprises expected to be 
                financed by the company, each conditionally approved 
                company shall have binding commitments (for 
                contribution in cash or in-kind)--
                            ``(i) from sources other than the 
                        Administration that meet criteria established 
                        by the Administrator; and
                            ``(ii) payable or available over a 
                        multiyear period determined appropriate by the 
                        Administrator (not to exceed 10 years).
                    ``(B) Exception.--The Administrator may, in the 
                discretion of the Administrator and based upon a 
                showing of special circumstances and good cause, 
                consider an applicant to have satisfied the 
                requirements of subparagraph (A) if the applicant has--
                            ``(i) a viable plan that reasonably 
                        projects the capacity of the applicant to raise 
                        the amount (in cash or in-kind) required under 
                        subparagraph (A); and
                            ``(ii) binding commitments in an amount 
                        equal to not less than 20 percent of the total 
                        amount required under paragraph (A).
                    ``(C) Limitation.--The total amount of a in-kind 
                contributions by a company shall be not more than 50 
                percent of the total contributions by a company.
    ``(e) Final Approval; Designation.--The Administrator shall, with 
respect to each applicant conditionally approved under subsection (c)--
            ``(1) grant final approval to the applicant to operate as a 
        Renewable Fuel Capital Investment company under this part and 
        designate the applicant as such a company, if the applicant--
                    ``(A) satisfies the requirements of subsection (d) 
                on or before the expiration of the time period 
                described in that subsection; and
                    ``(B) enters into a participation agreement with 
                the Administrator; or
            ``(2) if the applicant fails to satisfy the requirements of 
        subsection (d) on or before the expiration of the time period 
        described in paragraph (1) of that subsection, revoke the 
        conditional approval granted under that subsection.

``SEC. 385. DEBENTURES.

    ``(a) In General.--The Administrator may guarantee the timely 
payment of principal and interest, as scheduled, on debentures issued 
by any Renewable Fuel Capital Investment company.
    ``(b) Terms and Conditions.--The Administrator may make guarantees 
under this section on such terms and conditions as it determines 
appropriate, except that--
            ``(1) the term of any debenture guaranteed under this 
        section shall not exceed 15 years; and
            ``(2) a debenture guaranteed under this section--
                    ``(A) shall carry no front-end or annual fees;
                    ``(B) shall be issued at a discount;
                    ``(C) shall require no interest payments during the 
                5-year period beginning on the date the debenture is 
                issued;
                    ``(D) shall be prepayable without penalty after the 
                end of the 1-year period beginning on the date the 
                debenture is issued; and
                    ``(E) shall require semiannual interest payments 
                after the period described in subparagraph (C).
    ``(c) Full Faith and Credit of the United States.--The full faith 
and credit of the United States is pledged to pay all amounts that may 
be required to be paid under any guarantee under this part.
    ``(d) Maximum Guarantee.--
            ``(1) In general.--Under this section, the Administrator 
        may guarantee the debentures issued by a Renewable Fuel Capital 
        Investment company only to the extent that the total face 
        amount of outstanding guaranteed debentures of such company 
        does not exceed 150 percent of the private capital of the 
        company, as determined by the Administrator.
            ``(2) Treatment of certain federal funds.--For the purposes 
        of paragraph (1), private capital shall include capital that is 
        considered to be Federal funds, if such capital is contributed 
        by an investor other than a department or agency of the Federal 
        Government.

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

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

``SEC. 387. FEES.

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

``SEC. 388. FEE CONTRIBUTION.

    ``(a) In General.--To the extent that amounts are made available to 
the Administrator for the purpose of fee contributions, the 
Administrator shall contribute to fees paid by the Renewable Fuel 
Capital Investment companies under section 387.
    ``(b) Annual Adjustment.--Each fee contribution under subsection 
(a) shall be effective for 1 fiscal year and shall be adjusted as 
necessary for each fiscal year thereafter to ensure that amounts under 
subsection (a) are fully used. The fee contribution for a fiscal year 
shall be based on the outstanding commitments made and the guarantees 
and grants that the Administrator projects will be made during that 
fiscal year, given the program level authorized by law for that fiscal 
year and any other factors that the Administrator determines 
appropriate.

``SEC. 389. OPERATIONAL ASSISTANCE GRANTS.

    ``(a) In General.--
            ``(1) Authority.--The Administrator may make grants to 
        Renewable Fuel Capital Investment companies to provide 
        operational assistance to smaller enterprises financed, or 
        expected to be financed, by such companies or other entities.
            ``(2) Terms.--A grant under this subsection shall be made 
        over a multiyear period not to exceed 10 years, under such 
        other terms as the Administrator may require.
            ``(3) Grant amount.--The amount of a grant made under this 
        subsection to a Renewable Fuel Capital Investment company shall 
        be equal to the lesser of--
                    ``(A) 10 percent of the resources (in cash or in 
                kind) raised by the company under section 384(d)(2); or
                    ``(B) $1,000,000.
            ``(4) Pro rata reductions.--If the amount made available to 
        carry out this section is insufficient for the Administrator to 
        provide grants in the amounts provided for in paragraph (3), 
        the Administrator shall make pro rata reductions in the amounts 
        otherwise payable to each company and entity under such 
        paragraph.
            ``(5) Grants to conditionally approved companies.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), upon the request of a company conditionally 
                approved under section 384(c), the Administrator shall 
                make a grant to the company under this subsection.
                    ``(B) Repayment by companies not approved.--If a 
                company receives a grant under this paragraph and does 
                not enter into a participation agreement for final 
                approval, the company shall, subject to controlling 
                Federal law, repay the amount of the grant to the 
                Administrator.
                    ``(C) Deduction of grant to approved company.--If a 
                company receives a grant under this paragraph and 
                receives final approval under section 384(e), the 
                Administrator shall deduct the amount of the grant from 
                the total grant amount the company receives for 
                operational assistance.
                    ``(D) Amount of grant.--No company may receive a 
                grant of more than $100,000 under this paragraph.
    ``(b) Supplemental Grants.--
            ``(1) In general.--The Administrator may make supplemental 
        grants to Renewable Fuel Capital Investment companies and to 
        other entities, as authorized by this part, under such terms as 
        the Administrator may require, to provide additional 
        operational assistance to smaller enterprises financed, or 
        expected to be financed, by the companies.
            ``(2) Matching requirement.--The Administrator may require, 
        as a condition of any supplemental grant made under this 
        subsection, that the company or entity receiving the grant 
        provide from resources (in a cash or in kind), other then those 
        provided by the Administrator, a matching contribution equal to 
        the amount of the supplemental grant.
    ``(c) Limitation.--None of the assistance made available under this 
section may be used for any overhead or general and administrative 
expense of a Renewable Fuel Capital Investment company.

``SEC. 390. BANK PARTICIPATION.

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

``SEC. 391. FEDERAL FINANCING BANK.

    ``Notwithstanding section 318, the Federal Financing Bank may 
acquire a debenture issued by a Renewable Fuel Capital Investment 
company under this part.

``SEC. 392. REPORTING REQUIREMENT.

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

``SEC. 393. EXAMINATIONS.

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

``SEC. 394. MISCELLANEOUS.

    ``To the extent such procedures are not inconsistent with the 
requirements of this part, the Administrator may take such action as 
set forth in sections 309, 311, 312, and 314 and an officer, director, 
employee, agent, or other participant in the management or conduct of 
the affairs of a Renewable Fuel Capital Investment company shall be 
subject to the requirements of such sections.

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

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

``SEC. 396. REGULATIONS.

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

``SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) In General.--Subject to the availability of appropriations, 
the Administrator is authorized to make $15,000,000 in operational 
assistance grants under section 389 for each of fiscal years 2008 and 
2009.
    ``(b) Funds Collected for Examinations.--Funds deposited under 
section 393(c)(2) are authorized to be appropriated only for the costs 
of examinations under section 393 and for the costs of other oversight 
activities with respect to the program established under this part.

``SEC. 398. TERMINATION.

    ``The program under this part shall terminate at the end of the 
second full fiscal year after the date that the Administrator 
establishes the program under this part.''.

SEC. 1208. STUDY AND REPORT.

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

                         TITLE XIII--SMART GRID

SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF ELECTRICITY GRID.

    It is the policy of the United States to support the modernization 
of the Nation's electricity transmission and distribution system to 
maintain a reliable and secure electricity infrastructure that can meet 
future demand growth and to achieve each of the following, which 
together characterize a Smart Grid:
            (1) Increased use of digital information and controls 
        technology to improve reliability, security, and efficiency of 
        the electric grid.
            (2) Dynamic optimization of grid operations and resources, 
        with full cyber-security.
            (3) Deployment and integration of distributed resources and 
        generation, including renewable resources.
            (4) Development and incorporation of demand response, 
        demand-side resources, and energy-efficiency resources.
            (5) Deployment of ``smart'' technologies (real-time, 
        automated, interactive technologies that optimize the physical 
        operation of appliances and consumer devices) for metering, 
        communications concerning grid operations and status, and 
        distribution automation.
            (6) Integration of ``smart'' appliances and consumer 
        devices.
            (7) Deployment and integration of advanced electricity 
        storage and peak-shaving technologies, including plug-in 
        electric and hybrid electric vehicles, and thermal-storage air 
        conditioning.
            (8) Provision to consumers of timely information and 
        control options.
            (9) Development of standards for communication and 
        interoperability of appliances and equipment connected to the 
        electric grid, including the infrastructure serving the grid.
            (10) Identification and lowering of unreasonable or 
        unnecessary barriers to adoption of smart grid technologies, 
        practices, and services.

SEC. 1302. SMART GRID SYSTEM REPORT.

    The Secretary, acting through the Assistant Secretary of the Office 
of Electricity Delivery and Energy Reliability (referred to in this 
section as the ``OEDER'') and through the Smart Grid Task Force 
established in section 1303, shall, after consulting with any 
interested individual or entity as appropriate, no later than one year 
after enactment, and every two years thereafter, report to Congress 
concerning the status of smart grid deployments nationwide and any 
regulatory or government barriers to continued deployment. The report 
shall provide the current status and prospects of smart grid 
development, including information on technology penetration, 
communications network capabilities, costs, and obstacles. It may 
include recommendations for State and Federal policies or actions 
helpful to facilitate the transition to a smart grid. To the extent 
appropriate, it should take a regional perspective. In preparing this 
report, the Secretary shall solicit advice and contributions from the 
Smart Grid Advisory Committee created in section 1303; from other 
involved Federal agencies including but not limited to the Federal 
Energy Regulatory Commission (``Commission''), the National Institute 
of Standards and Technology (``Institute''), and the Department of 
Homeland Security; and from other stakeholder groups not already 
represented on the Smart Grid Advisory Committee.

SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART GRID TASK FORCE.

    (a) Smart Grid Advisory Committee.--
            (1) Establishment.--The Secretary shall establish, within 
        90 days of enactment of this Part, a Smart Grid Advisory 
        Committee (either as an independent entity or as a designated 
        sub-part of a larger advisory committee on electricity 
        matters). The Smart Grid Advisory Committee shall include eight 
        or more members appointed by the Secretary who have sufficient 
        experience and expertise to represent the full range of smart 
        grid technologies and services, to represent both private and 
        non-Federal public sector stakeholders. One member shall be 
        appointed by the Secretary to Chair the Smart Grid Advisory 
        Committee.
            (2) Mission.--The mission of the Smart Grid Advisory 
        Committee shall be to advise the Secretary, the Assistant 
        Secretary, and other relevant Federal officials concerning the 
        development of smart grid technologies, the progress of a 
        national transition to the use of smart-grid technologies and 
        services, the evolution of widely-accepted technical and 
        practical standards and protocols to allow interoperability and 
        inter-communication among smart-grid capable devices, and the 
        optimum means of using Federal incentive authority to encourage 
        such progress.
            (3) Applicability of federal advisory committee act.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) shall apply to 
        the Smart Grid Advisory Committee.
    (b) Smart Grid Task Force.--
            (1) Establishment.--The Assistant Secretary of the Office 
        of Electricity Delivery and Energy Reliability shall establish, 
        within 90 days of enactment of this Part, a Smart Grid Task 
        Force composed of designated employees from the various 
        divisions of that office who have responsibilities related to 
        the transition to smart-grid technologies and practices. The 
        Assistant Secretary or his designee shall be identified as the 
        Director of the Smart Grid Task Force. The Chairman of the 
        Federal Energy Regulatory Commission and the Director of the 
        National Institute of Standards and Technology shall each 
        designate at least one employee to participate on the Smart 
        Grid Task Force. Other members may come from other agencies at 
        the invitation of the Assistant Secretary or the nomination of 
        the head of such other agency. The Smart Grid Task Force shall, 
        without disrupting the work of the Divisions or Offices from 
        which its members are drawn, provide an identifiable Federal 
        entity to embody the Federal role in the national transition 
        toward development and use of smart grid technologies.
            (2) Mission.--The mission of the Smart Grid Task Force 
        shall be to insure awareness, coordination and integration of 
        the diverse activities of the Office and elsewhere in the 
        Federal government related to smart-grid technologies and 
        practices, including but not limited to: smart grid research 
        and development; development of widely accepted smart-grid 
        standards and protocols; the relationship of smart-grid 
        technologies and practices to electric utility regulation; the 
        relationship of smart-grid technologies and practices to 
        infrastructure development, system reliability and security; 
        and the relationship of smart-grid technologies and practices 
        to other facets of electricity supply, demand, transmission, 
        distribution, and policy. The Smart Grid Task Force shall 
        collaborate with the Smart Grid Advisory Committee and other 
        Federal agencies and offices. The Smart Grid Task Force shall 
        meet at the call of its Director as necessary to accomplish its 
        mission.
    (c) Authorization.--There are authorized to be appropriated for the 
purposes of this section such sums as are necessary to the Secretary to 
support the operations of the Smart Grid Advisory Committee and Smart 
Grid Task Force for each of fiscal years 2008 through 2020.

SEC. 1304. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION.

    (a) Power Grid Digital Information Technology.--The Secretary, in 
consultation with the Federal Energy Regulatory Commission and other 
appropriate agencies, electric utilities, the States, and other 
stakeholders, shall carry out a program--
            (1) to develop advanced techniques for measuring peak load 
        reductions and energy-efficiency savings from smart metering, 
        demand response, distributed generation, and electricity 
        storage systems;
            (2) to investigate means for demand response, distributed 
        generation, and storage to provide ancillary services;
            (3) to conduct research to advance the use of wide-area 
        measurement and control networks, including data mining, 
        visualization, advanced computing, and secure and dependable 
        communications in a highly-distributed environment;
            (4) to test new reliability technologies, including those 
        concerning communications network capabilities, in a grid 
        control room environment against a representative set of local 
        outage and wide area blackout scenarios;
            (5) to identify communications network capacity needed to 
        implement advanced technologies.
            (6) to investigate the feasibility of a transition to time-
        of-use and real-time electricity pricing;
            (7) to develop algorithms for use in electric transmission 
        system software applications;
            (8) to promote the use of underutilized electricity 
        generation capacity in any substitution of electricity for 
        liquid fuels in the transportation system of the United States; 
        and
            (9) in consultation with the Federal Energy Regulatory 
        Commission, to propose interconnection protocols to enable 
        electric utilities to access electricity stored in vehicles to 
        help meet peak demand loads.
    (b) Smart Grid Regional Demonstration Initiative.--
            (1) In general.--The Secretary shall establish a smart grid 
        regional demonstration initiative (referred to in this 
        subsection as the ``Initiative'') composed of demonstration 
        projects specifically focused on advanced technologies for use 
        in power grid sensing, communications, analysis, and power flow 
        control. The Secretary shall seek to leverage existing smart 
        grid deployments.
            (2) Goals.--The goals of the Initiative shall be--
                    (A) to demonstrate the potential benefits of 
                concentrated investments in advanced grid technologies 
                on a regional grid;
                    (B) to facilitate the commercial transition from 
                the current power transmission and distribution system 
                technologies to advanced technologies;
                    (C) to facilitate the integration of advanced 
                technologies in existing electric networks to improve 
                system performance, power flow control, and 
                reliability;
                    (D) to demonstrate protocols and standards that 
                allow for the measurement and validation of the energy 
                savings and fossil fuel emission reductions associated 
                with the installation and use of energy efficiency and 
                demand response technologies and practices; and
                    (E) to investigate differences in each region and 
                regulatory environment regarding best practices in 
                implementing smart grid technologies.
            (3) Demonstration projects.--
                    (A) In general.--In carrying out the initiative, 
                the Secretary shall carry out smart grid demonstration 
                projects in up to 5 electricity control areas, 
                including rural areas and at least 1 area in which the 
                majority of generation and transmission assets are 
                controlled by a tax-exempt entity.
                    (B) Cooperation.--A demonstration project under 
                subparagraph (A) shall be carried out in cooperation 
                with the electric utility that owns the grid facilities 
                in the electricity control area in which the 
                demonstration project is carried out.
                    (C) Federal share of cost of technology 
                investments.--The Secretary shall provide to an 
                electric utility described in subparagraph (B) 
                financial assistance for use in paying an amount equal 
                to not more than 50 percent of the cost of qualifying 
                advanced grid technology investments made by the 
                electric utility to carry out a demonstration project.
                    (D) Ineligibility for grants.--No person or entity 
                participating in any demonstration project conducted 
                under this subsection shall be eligible for grants 
                under section 1306 for otherwise qualifying investments 
                made as part of that demonstration project.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated--
            (1) to carry out subsection (a), such sums as are necessary 
        for each of fiscal years 2008 through 2012; and
            (2) to carry out subsection (b), $100,000,000 for each of 
        fiscal years 2008 through 2012.

SEC. 1305. SMART GRID INTEROPERABILITY FRAMEWORK.

    (a) Interoperability Framework.--The Director of the National 
Institute of Standards and Technology shall have primary responsibility 
to coordinate the development of a framework that includes protocols 
and model standards for information management to achieve 
interoperability of smart grid devices and systems. Such protocols and 
standards shall further align policy, business, and technology 
approaches in a manner that would enable all electric resources, 
including demand-side resources, to contribute to an efficient, 
reliable electricity network. In developing such protocols and 
standards--
            (1) the Director shall seek input and cooperation from the 
        Commission, OEDER and its Smart Grid Task Force, the Smart Grid 
        Advisory Committee, other relevant Federal and State agencies; 
        and
            (2) the Director shall also solicit input and cooperation 
        from private entities interested in such protocols and 
        standards, including but not limited to the Gridwise 
        Architecture Council, the International Electrical and 
        Electronics Engineers, the National Electric Reliability 
        Organization recognized by the Federal Energy Regulatory 
        Commission, and National Electrical Manufacturer's Association.
    (b) Scope of Framework.--The framework developed under subsection 
(a) shall be flexible, uniform and technology neutral, including but 
not limited to technologies for managing smart grid information, and 
designed--
            (1) to accommodate traditional, centralized generation and 
        transmission resources and consumer distributed resources, 
        including distributed generation, renewable generation, energy 
        storage, energy efficiency, and demand response and enabling 
        devices and systems;
            (2) to be flexible to incorporate--
                    (A) regional and organizational differences; and
                    (B) technological innovations;
            (3) to consider the use of voluntary uniform standards for 
        certain classes of mass-produced electric appliances and 
        equipment for homes and businesses that enable customers, at 
        their election and consistent with applicable State and Federal 
        laws, and are manufactured with the ability to respond to 
        electric grid emergencies and demand response signals by 
        curtailing all, or a portion of, the electrical power consumed 
        by the appliances or equipment in response to an emergency or 
        demand response signal, including through--
                    (A) load reduction to reduce total electrical 
                demand;
                    (B) adjustment of load to provide grid ancillary 
                services; and
                    (C) in the event of a reliability crisis that 
                threatens an outage, short-term load shedding to help 
                preserve the stability of the grid; and
            (4) such voluntary standards should incorporate appropriate 
        manufacturer lead time.
    (c) Timing of Framework Development.--The Institute shall begin 
work pursuant to this section within 60 days of enactment. The 
Institute shall provide and publish an initial report on progress 
toward recommended or consensus standards and protocols within one year 
after enactment, further reports at such times as developments warrant 
in the judgment of the Institute, and a final report when the Institute 
determines that the work is completed or that a Federal role is no 
longer necessary.
    (d) Standards for Interoperability in Federal Jurisdiction.--At any 
time after the Institute's work has led to sufficient consensus in the 
Commission's judgment, the Commission shall institute a rulemaking 
proceeding to adopt such standards and protocols as may be necessary to 
insure smart-grid functionality and interoperability in interstate 
transmission of electric power, and regional and wholesale electricity 
markets.
    (e) Authorization.--There are authorized to be appropriated for the 
purposes of this section $5,000,000 to the Institute to support the 
activities required by this subsection for each of fiscal years 2008 
through 2012.

SEC. 1306. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT COSTS.

    (a) Matching Fund.--The Secretary shall establish a Smart Grid 
Investment Matching Grant Program to provide reimbursement of one-fifth 
(20 percent) of qualifying Smart Grid investments.
    (b) Qualifying Investments.--Qualifying Smart Grid investments may 
include any of the following made on or after the date of enactment of 
this Act:
            (1) In the case of appliances covered for purposes of 
        establishing energy conservation standards under part B of 
        title III of the Energy Policy and Conservation Act of 1975 (42 
        U.S.C. 6291 et seq.), the documented expenditures incurred by a 
        manufacturer of such appliances associated with purchasing or 
        designing, creating the ability to manufacture, and 
        manufacturing and installing for one calendar year, internal 
        devices that allow the appliance to engage in Smart Grid 
        functions.
            (2) In the case of specialized electricity-using equipment, 
        including motors and drivers, installed in industrial or 
        commercial applications, the documented expenditures incurred 
        by its owner or its manufacturer of installing devices or 
        modifying that equipment to engage in Smart Grid functions.
            (3) In the case of transmission and distribution equipment 
        fitted with monitoring and communications devices to enable 
        smart grid functions, the documented expenditures incurred by 
        the electric utility to purchase and install such monitoring 
        and communications devices.
            (4) In the case of metering devices, sensors, control 
        devices, and other devices integrated with and attached to an 
        electric utility system or retail distributor or marketer of 
        electricity that are capable of engaging in Smart Grid 
        functions, the documented expenditures incurred by the electric 
        utility, distributor, or marketer and its customers to purchase 
        and install such devices.
            (5) In the case of software that enables devices or 
        computers to engage in Smart Grid functions, the documented 
        purchase costs of the software.
            (6) In the case of entities that operate or coordinate 
        operations of regional electric grids, the documented 
        expenditures for purchasing and installing such equipment that 
        allows Smart Grid functions to operate and be combined or 
        coordinated among multiple electric utilities and between that 
        region and other regions.
            (7) In the case of persons or entities other than electric 
        utilities owning and operating a distributed electricity 
        generator, the documented expenditures of enabling that 
        generator to be monitored, controlled, or otherwise integrated 
        into grid operations and electricity flows on the grid 
        utilizing Smart Grid functions.
            (8) In the case of electric or hybrid-electric vehicles, 
        the documented expenses for devices that allow the vehicle to 
        engage in Smart Grid functions (but not the costs of 
        electricity storage for the vehicle).
            (9) The documented expenditures related to purchasing and 
        implementing Smart Grid functions in such other cases as the 
        Secretary shall identify. In making such grants, the Secretary 
        shall seek to reward innovation and early adaptation, even if 
        success is not complete, rather than deployment of proven and 
        commercially viable technologies.
    (c) Investments Not Included.--Qualifying Smart Grid investments do 
not include any of the following:
            (1) Investments or expenditures for Smart Grid 
        technologies, devices, or equipment that are eligible for 
        specific tax credits or deductions under the Internal Revenue 
        Code, as amended.
            (2) Expenditures for electricity generation, transmission, 
        or distribution infrastructure or equipment not directly 
        related to enabling Smart Grid functions.
            (3) After the final date for State consideration of the 
        Smart Grid Information Standard under section 1307 (paragraph 
        (17) of section 111(d) of the Public Utility Regulatory 
        Policies Act of 1978), an investment that is not in compliance 
        with such standard.
            (4) After the development and publication by the Institute 
        of protocols and model standards for interoperability of smart 
        grid devices and technologies, an investment that fails to 
        incorporate any of such protocols or model standards.
            (5) Expenditures for physical interconnection of generators 
        or other devices to the grid except those that are directly 
        related to enabling Smart Grid functions.
            (6) Expenditures for ongoing salaries, benefits, or 
        personnel costs not incurred in the initial installation, 
        training, or start up of smart grid functions.
            (7) Expenditures for travel, lodging, meals or other 
        personal costs.
            (8) Ongoing or routine operation, billing, customer 
        relations, security, and maintenance expenditures.
            (9) Such other expenditures that the Secretary determines 
        not to be Qualifying Smart Grid Investments by reason of the 
        lack of the ability to perform Smart Grid functions or lack of 
        direct relationship to Smart Grid functions.
    (d) Smart Grid Functions.--The term ``smart grid functions'' means 
any of the following:
            (1) The ability to develop, store, send and receive digital 
        information concerning electricity use, costs, prices, time of 
        use, nature of use, storage, or other information relevant to 
        device, grid, or utility operations, to or from or by means of 
        the electric utility system, through one or a combination of 
        devices and technologies.
            (2) The ability to develop, store, send and receive digital 
        information concerning electricity use, costs, prices, time of 
        use, nature of use, storage, or other information relevant to 
        device, grid, or utility operations to or from a computer or 
        other control device.
            (3) The ability to measure or monitor electricity use as a 
        function of time of day, power quality characteristics such as 
        voltage level, current, cycles per second, or source or type of 
        generation and to store, synthesize or report that information 
        by digital means.
            (4) The ability to sense and localize disruptions or 
        changes in power flows on the grid and communicate such 
        information instantaneously and automatically for purposes of 
        enabling automatic protective responses to sustain reliability 
        and security of grid operations.
            (5) The ability to detect, prevent, communicate with regard 
        to, respond to, or recover from system security threats, 
        including cyber-security threats and terrorism, using digital 
        information, media, and devices.
            (6) The ability of any appliance or machine to respond to 
        such signals, measurements, or communications automatically or 
        in a manner programmed by its owner or operator without 
        independent human intervention.
            (7) The ability to use digital information to operate 
        functionalities on the electric utility grid that were 
        previously electro-mechanical or manual.
            (8) The ability to use digital controls to manage and 
        modify electricity demand, enable congestion management, assist 
        in voltage control, provide operating reserves, and provide 
        frequency regulation.
            (9) Such other functions as the Secretary may identify as 
        being necessary or useful to the operation of a Smart Grid.
    (e) The Secretary shall--
            (1) establish and publish in the Federal Register, within 
        one year after the enactment of this Act procedures by which 
        applicants who have made qualifying Smart Grid investments can 
        seek and obtain reimbursement of one-fifth of their documented 
        expenditures;
            (2) establish procedures to ensure that there is no 
        duplication or multiple reimbursement for the same investment 
        or costs, that the reimbursement goes to the party making the 
        actual expenditures for Qualifying Smart Grid Investments, and 
        that the grants made have significant effect in encouraging and 
        facilitating the development of a smart grid;
            (3) maintain public records of reimbursements made, 
        recipients, and qualifying Smart Grid investments which have 
        received reimbursements;
            (4) establish procedures to provide, in cases deemed by the 
        Secretary to be warranted, advance payment of moneys up to the 
        full amount of the projected eventual reimbursement, to 
        creditworthy applicants whose ability to make Qualifying Smart 
        Grid Investments may be hindered by lack of initial capital, in 
        lieu of any later reimbursement for which that applicant 
        qualifies, and subject to full return of the advance payment in 
        the event that the Qualifying Smart Grid investment is not 
        made; and
            (5) have and exercise the discretion to deny grants for 
        investments that do not qualify in the reasonable judgment of 
        the Secretary.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as are necessary for the 
administration of this section and the grants to be made pursuant to 
this section for fiscal years 2008 through 2012.

SEC. 1307. STATE CONSIDERATION OF SMART GRID.

    (a) Section 111(d) of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:
            ``(16) Consideration of smart grid investments.--
                    ``(A) In general.--Each State shall consider 
                requiring that, prior to undertaking investments in 
                nonadvanced grid technologies, an electric utility of 
                the State demonstrate to the State that the electric 
                utility considered an investment in a qualified smart 
                grid system based on appropriate factors, including--
                            ``(i) total costs;
                            ``(ii) cost-effectiveness;
                            ``(iii) improved reliability;
                            ``(iv) security;
                            ``(v) system performance; and
                            ``(vi) societal benefit.
                    ``(B) Rate recovery.--Each State shall consider 
                authorizing each electric utility of the State to 
                recover from ratepayers any capital, operating 
                expenditure, or other costs of the electric utility 
                relating to the deployment of a qualified smart grid 
                system, including a reasonable rate of return on the 
                capital expenditures of the electric utility for the 
                deployment of the qualified smart grid system.
                    ``(C) Obsolete equipment.--Each State shall 
                consider authorizing any electric utility or other 
                party of the State to deploy a qualified smart grid 
                system to recover in a timely manner the remaining 
                book-value costs of any equipment rendered obsolete by 
                the deployment of the qualified smart grid system, 
                based on the remaining depreciable life of the obsolete 
                equipment.
            ``(17) Smart grid information.--
                    ``(A) Standard.--All electricity purchasers shall 
                be provided direct access, in written or electronic 
                machine-readable form as appropriate, to information 
                from their electricity provider as provided in 
                subparagraph (B).
                    ``(B) Information.--Information provided under this 
                section, to the extent practicable, shall include:
                            ``(i) Prices.--Purchasers and other 
                        interested persons shall be provided with 
                        information on--
                                    ``(I) time-based electricity prices 
                                in the wholesale electricity market; 
                                and
                                    ``(II) time-based electricity 
                                retail prices or rates that are 
                                available to the purchasers.
                            ``(ii) Usage.--Purchasers shall be provided 
                        with the number of electricity units, expressed 
                        in kwh, purchased by them.
                            ``(iii) Intervals and projections.--Updates 
                        of information on prices and usage shall be 
                        offered on not less than a daily basis, shall 
                        include hourly price and use information, where 
                        available, and shall include a day-ahead 
                        projection of such price information to the 
                        extent available.
                            ``(iv) Sources.--Purchasers and other 
                        interested persons shall be provided annually 
                        with written information on the sources of the 
                        power provided by the utility, to the extent it 
                        can be determined, by type of generation, 
                        including greenhouse gas emissions associated 
                        with each type of generation, for intervals 
                        during which such information is available on a 
                        cost-effective basis.
                    ``(C) Access.--Purchasers shall be able to access 
                their own information at any time through the internet 
                and on other means of communication elected by that 
                utility for Smart Grid applications. Other interested 
                persons shall be able to access information not 
                specific to any purchaser through the Internet. 
                Information specific to any purchaser shall be provided 
                solely to that purchaser.''.
    (b) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 
        by adding the following at the end thereof:
            ``(6)(A) Not later than 1 year after the enactment of this 
        paragraph, each State regulatory authority (with respect to 
        each electric utility for which it has ratemaking authority) 
        and each nonregulated utility shall commence the consideration 
        referred to in section 111, or set a hearing date for 
        consideration, with respect to the standards established by 
        paragraphs (17) through (18) of section 111(d).
            ``(B) Not later than 2 years after the date of the 
        enactment of the this paragraph, each State regulatory 
        authority (with respect to each electric utility for which it 
        has ratemaking authority), and each nonregulated electric 
        utility, shall complete the consideration, and shall make the 
        determination, referred to in section 111 with respect to each 
        standard established by paragraphs (17) through (18) of section 
        111(d).''.
            (2) Failure to comply.--Section 112(c) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is 
        amended by adding the following at the end:
    ``In the case of the standards established by paragraphs (16) 
through (19) of section 111(d), the reference contained in this 
subsection to the date of enactment of this Act shall be deemed to be a 
reference to the date of enactment of such paragraphs.''.
            (3) Prior state actions.--Section 112(d) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) is 
        amended by inserting ``and paragraphs (17) through (18)'' 
        before ``of section 111(d)''.

SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE DEVELOPMENT 
              OF COMBINED HEAT AND POWER FACILITIES.

    (a) Study.--
            (1) In general.--The Secretary, in consultation with the 
        States and other appropriate entities, shall conduct a study of 
        the laws (including regulations) affecting the siting of 
        privately owned electric distribution wires on and across 
        public rights-of-way.
            (2) Requirements.--The study under paragraph (1) shall 
        include--
                    (A) an evaluation of--
                            (i) the purposes of the laws; and
                            (ii) the effect the laws have on the 
                        development of combined heat and power 
                        facilities;
                    (B) a determination of whether a change in the laws 
                would have any operating, reliability, cost, or other 
                impacts on electric utilities and the customers of the 
                electric utilities; and
                    (C) an assessment of--
                            (i) whether privately owned electric 
                        distribution wires would result in duplicative 
                        facilities; and
                            (ii) whether duplicative facilities are 
                        necessary or desirable.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
describes the results of the study conducted under subsection (a).

SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID SYSTEMS.

    (a) DOE Study.--The Secretary shall, within 18 months after the 
date of enactment of this Act, submit a report to Congress that 
provides a quantitative assessment and determination of the existing 
and potential impacts of the deployment of Smart Grid systems on 
improving the security of the Nation's electricity infrastructure and 
operating capability. The report shall include but not be limited to 
specific recommendations on each of the following:
            (1) How smart grid systems can help in making the Nation's 
        electricity system less vulnerable to disruptions due to 
        intentional acts against the system.
            (2) How smart grid systems can help in restoring the 
        integrity of the Nation's electricity system subsequent to 
        disruptions.
            (3) How smart grid systems can facilitate nationwide, 
        interoperable emergency communications and control of the 
        Nation's electricity system during times of localized, 
        regional, or nationwide emergency.
            (4) What risks must be taken into account that smart grid 
        systems may, if not carefully created and managed, create 
        vulnerability to security threats of any sort, and how such 
        risks may be mitigated.
    (b) Consultation.--The Secretary shall consult with other Federal 
agencies in the development of the report under this section, including 
but not limited to the Secretary of Homeland Security, the Federal 
Energy Regulatory Commission, and the Electric Reliability Organization 
certified by the Commission under section 215(c) of the Federal Power 
Act (16 U.S.C. 824o) as added by section 1211 of the Energy Policy Act 
of 2005 (Public Law 109-58; 119 Stat. 941).

               TITLE XIV--RENEWABLE ELECTRICITY STANDARD

SEC. 1401. RENEWABLE ELECTRICITY STANDARD.

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

``SEC. 610. RENEWABLE ELECTRICITY STANDARD.

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

                                                        Required annual
``Calendar Years                                             percentage
                2010.......................................        2.75
                2011.......................................        2.75
                2012.......................................        3.75
                2013.......................................         4.5
                2014.......................................         5.5
                2015.......................................         6.5
                2016.......................................         7.5
                2017.......................................        8.25
                2018.......................................       10.25
                2019.......................................       12.25
                2020 and thereafter through 2039...........          15
    ``(d) Renewable Energy and Energy Efficiency Credits.--(1) A retail 
electric supplier may satisfy the requirements of subsection (b)(1) 
through the submission of Federal renewable energy credits--
            ``(A) issued to the retail electric supplier under 
        subsection (e);
            ``(B) obtained by purchase or exchange under subsection (f) 
        or (g); or
            ``(C) borrowed under subsection (h).
    ``(2) A retail electric supplier may satisfy the requirements of 
subsection (b)(2) through the submission of Federal energy efficiency 
credits issued to the retail electric supplier obtained by purchase or 
exchange pursuant to subsection (i).
    ``(3) A Federal renewable energy credit may be counted toward 
compliance with subsection (b)(1) only once. A Federal energy 
efficiency credit may be counted toward compliance with subsection 
(b)(2) only once.
    ``(e) Issuance of Federal Renewable Energy Credits.--(1) The 
Secretary shall establish by rule, not later than 1 year after the date 
of enactment of this section, a program to verify and issue Federal 
renewable energy credits to generators of renewable energy, track their 
sale, exchange and retirement and to enforce the requirements of this 
section. To the extent possible, in establishing such program, the 
Secretary shall rely upon existing and emerging State or regional 
tracking systems that issue and track non-Federal renewable energy 
credits.
    ``(2) An entity that generates electric energy through the use of a 
renewable energy resource may apply to the Secretary for the issuance 
of renewable energy credits. The applicant must demonstrate that the 
electric energy will be transmitted onto the grid or, in the case of a 
generation offset, that the electric energy offset would have otherwise 
been consumed on site. The application shall indicate--
            ``(A) the type of renewable energy resource used to produce 
        the electricity;
            ``(B) the location where the electric energy was produced; 
        and
            ``(C) any other information the Secretary determines 
        appropriate.
    ``(3)(A) Except as provided in subparagraphs (B), (C), and (D), the 
Secretary shall issue to a generator of electric energy one Federal 
renewable energy credit for each kilowatt hour of electric energy 
generated by the use of a renewable energy resource at an eligible 
facility.
    ``(B) For purpose of compliance with this section, Federal 
renewable energy credits for incremental hydropower shall be based, on 
the increase in average annual generation resulting from the efficiency 
improvements or capacity additions. The incremental generation shall be 
calculated using the same water flow information used to determine a 
historic average annual generation baseline for the hydroelectric 
facility and certified by the Secretary or the Federal Energy 
Regulatory Commission. The calculation of the Federal renewable energy 
credits for incremental hydropower shall not be based on any 
operational changes at the hydroelectric facility not directly 
associated with the efficiency improvements or capacity additions.
    ``(C) The Secretary shall issue 2 renewable energy credits for each 
kilowatt hour of electric energy generated and supplied to the grid in 
that calendar year through the use of a renewable energy resource at an 
eligible facility located on Indian land. For purposes of this 
paragraph, renewable energy generated by biomass cofired with other 
fuels is eligible for two credits only if the biomass was grown on such 
land.
    ``(D) For electric energy generated by a renewable energy resource 
at an on-site eligible facility no larger than one megawatt in capacity 
and used to offset part or all of the customer's requirements for 
electric energy, the Secretary shall issue 3 renewable energy credits 
to such customer for each kilowatt hour generated.
    ``(E) In the case of an on-site eligible facility on Indian land no 
more than 3 credits per kilowatt hour may be issued.
    ``(F) If both a renewable energy resource and a non-renewable 
energy resource are used to generate the electric energy, the Secretary 
shall issue the Federal renewable energy credits based on the 
proportion of the renewable energy resources used.
    ``(G) When a generator has sold electric energy generated through 
the use of a renewable energy resource to a retail electric supplier 
under a contract for power from an existing facility, and the contract 
has not determined ownership of the Federal renewable energy credits 
associated with such generation, the Secretary shall issue such Federal 
renewable energy credits to the retail electric supplier for the 
duration of the contract.
    ``(H) Payments made by a retail electricity supplier, directly or 
indirectly, to a State for compliance with a State renewable portfolio 
standard program, or for an alternative compliance mechanism, shall be 
valued at one credit per kilowatt hour for the purpose of subsection 
(b)(2) based on the amount of electric energy generation from renewable 
resources and electricity savings up to 27 percent of the utility's 
requirement that results from those payments.
    ``(f) Existing Facilities.--The Secretary shall ensure that a 
retail electric supplier that acquires Federal renewable energy credits 
associated with the generation of renewable energy from an existing 
facility may use such credits for purpose of its compliance with 
subsection (b)(1). Such credits may not be sold, exchanged, or 
transferred for the purpose of compliance by another retail electric 
supplier.
    ``(g) Renewable Energy Credit Trading.--(1) A Federal renewable 
energy credit, may be sold, transferred or exchanged by the entity to 
whom issued or by any other entity who acquires the Federal renewable 
energy credit, except for those renewable energy credits from existing 
facilities. A Federal renewable energy credit for any year that is not 
submitted to satisfy the minimum renewable generation requirement of 
subsection (c) for that year may be carried forward for use pursuant to 
subsection (b)(1) within the next 3 years.
    ``(2) A Federally owned or cooperatively owned utility, or a State 
or subdivision thereof, that is not a retail electric supplier that 
generates electric energy by the use of a renewable energy resource at 
an eligible facility may only sell, transfer or exchange a Federal 
renewable energy credit to a cooperatively owned utility or an agency, 
authority or instrumentality of a State or political subdivision of a 
State that is a retail electric supplier that has acquired the electric 
energy associated with the credit.
    ``(3) The Secretary may delegate to an appropriate market-making 
entity the administration of a national tradeable renewable energy 
credit market and a nation energy efficiency credit market for purposes 
of creating a transparent national market for the sale or trade of 
renewable energy credits and a transparent national market for the sale 
or trade of Federal energy efficiency credits.
    ``(h) Renewable Energy Credit Borrowing.--At any time before the 
end of calendar year 2012, a retail electric supplier that has reason 
to believe it will not be able to fully comply with subsection (b) 
may--
            ``(1) submit a plan to the Secretary demonstrating that the 
        retail electric supplier will earn sufficient Federal renewable 
        energy credits and Federal energy efficiency credits within the 
        next 3 calendar years which, when taken into account, will 
        enable the retail electric supplier to meet the requirements of 
        subsection (b) for calendar year 2012 and the subsequent 
        calendar years involved; and
            ``(2) upon the approval of the plan by the Secretary, apply 
        Federal renewable energy credits and Federal energy efficiency 
        credits that the plan demonstrates will be earned within the 
        next 3 calendar years to meet the requirements of subsection 
        (b) for each calendar year involved.
The retail electric supplier must repay all of the borrowed Federal 
renewable energy credits and Federal energy efficiency credits by 
submitting an equivalent number of Federal renewable energy credits and 
Federal energy efficiency credits, in addition to those otherwise 
required under subsection (b), by calendar year 2020 or any earlier 
deadlines specified in the approved plan. Failure to repay the borrowed 
Federal renewable energy credits and Federal energy efficiency credits 
shall subject the retail electric supplier to civil penalties under 
subsection (i) for violation of the requirements of subsection (b) for 
each calendar year involved.
    ``(i) Energy Efficiency Credits.--
            ``(1) Definitions.--In this subsection--
                    ``(A) Customer facility savings.--The term 
                `customer facility savings' means a reduction in end-
                use electricity at a facility of an end-use consumer of 
                electricity served by a retail electric supplier, as 
                compared to--
                            ``(i) consumption at the facility during a 
                        base year;
                            ``(ii) in the case of new equipment 
                        (regardless of whether the new equipment 
                        replaces existing equipment at the end of the 
                        useful life of the existing equipment), 
                        consumption by the new equipment of average 
                        efficiency; or
                            ``(iii) in the case of a new facility, 
                        consumption at a reference facility.
                    ``(B) Electricity savings.--The term `electricity 
                savings' means--
                            ``(i) customer facility savings of 
                        electricity consumption adjusted to reflect any 
                        associated increase in fuel consumption at the 
                        facility;
                            ``(ii) reductions in distribution system 
                        losses of electricity achieved by a retail 
                        electricity distributor, as compared to losses 
                        during the base years;
                            ``(iii) the output of new combined heat and 
                        power systems, to the extent provided under 
                        paragraph (5); and
                            ``(iv) recycled energy savings.
                    ``(C) Qualifying electricity savings.--The term 
                `qualifying electricity savings' means electricity 
                saving that meet the measurement and verification 
                requirements of paragraph (4).
                    ``(D) Recycled energy savings.--The term `recycled 
                energy savings' means a reduction in electricity 
                consumption that is attributable to electrical or 
                mechanical power, or both, produced by modifying an 
                industrial or commercial system that was in operation 
                before July 1, 2007, in order to recapture energy that 
                would otherwise be wasted.
            ``(2) Petition.--The Governor of a State may petition the 
        Secretary to allow up to 27 percent of the requirements of a 
        retail electric supplier under subsection (c) in the State to 
        be met by submitting Federal energy efficiency credits issued 
        pursuant to this subsection.
            ``(3) Issuance of credits.--(A) Upon petition by the 
        Governor, the Secretary shall issue energy efficiency credits 
        for electricity savings described in subparagraph (B) achieved 
        in States described in paragraph (2) in accordance with this 
        subsection.
            ``(B) In accordance with regulations promulgated by the 
        Secretary, the Secretary shall issue credits for--
                    ``(i) qualified electricity savings achieved by a 
                retail electric supplier in a calendar year; and
                    ``(ii) qualified electricity savings achieved by 
                other entities if--
                            ``(I) the measures used to achieve the 
                        qualifying electricity savings were installed 
                        or place in operation by the entity seeking the 
                        credit or the designated agent of the entity; 
                        and
                            ``(II) no retail electric supplier paid a 
                        substantial portion of the cost of achieving 
                        the qualified electricity savings (unless the 
                        retail electric supplier has waived any 
                        entitlement to the credit).
            ``(4) Measurement and verification of electricity 
        savings.--Not later than June 30, 2009, the Secretary shall 
        promulgate regulations regarding the measurement and 
        verification of electricity savings under this subsection, 
        including regulations covering--
                    ``(A) procedures and standards for defining and 
                measuring electricity savings that will be eligible to 
                receive credits under paragraph (3), which shall--
                            ``(i) specify the types of energy 
                        efficiency and energy conservation that will be 
                        eligible for the credits;
                            ``(ii) require that energy consumption for 
                        customer facilities or portions of facilities 
                        in the applicable base and current years be 
                        adjusted, as appropriate, to account for 
                        changes in weather, level of production, and 
                        building area;
                            ``(iii) account for the useful life of 
                        electricity savings measures;
                            ``(iv) include specified electricity 
                        savings values for specific, commonly-used 
                        efficiency measures;
                            ``(v) specify the extent to which 
                        electricity savings attributable to measures 
                        carried out before the date of enactment of 
                        this section are eligible to receive credits 
                        under this subsection; and
                            ``(vi) exclude electricity savings that (I) 
                        are not properly attributable to measures 
                        carried out by the entity seeking the credit; 
                        or (II) have already been credited under this 
                        section to another entity;
                    ``(B) procedures and standards for third-party 
                verification of reported electricity savings; and
                    ``(C) such requirements for information, reports, 
                and access to facilities as may be necessary to carry 
                out this subsection.
            ``(5) Combined heat and power.--Under regulations 
        promulgated by the Secretary, the increment of electricity 
        output of a new combined heat and power system that is 
        attributable to the higher efficiency of the combined system 
        (as compared to the efficiency of separate production of the 
        electric and thermal outputs), shall be considered electricity 
        savings under this subsection.
    ``(j) Enforcement.--A retail electric supplier that does not comply 
with subsection (b) shall be liable for the payment of a civil penalty. 
That penalty shall be calculated on the basis of the number of 
kilowatt-hours represented by the retail electric supplier's failure to 
comply with subsection (b), multiplied by the lesser of 4.5 cents 
(adjusted for inflation for such calendar year, based on the Gross 
Domestic Product Implicit Price Deflator) or 300 percent of the average 
market value of Federal renewable energy credits and energy efficiency 
credits for the compliance period. Any such penalty shall be due and 
payable without demand to the Secretary as provided in the regulations 
issued under subsection (e).
    ``(k) Alternative Compliance Payments.--The Secretary shall accept 
payment equal to the lesser of:
            ``(1) 200 percent of the average market value of Federal 
        renewable energy credits and Federal energy efficiency credits 
        for the applicable compliance period; or
            ``(2) 2.5 cents per kilowatt hour adjusted on January 1 of 
        each year following calendar year 2006 based on the Gross 
        Domestic Product Implicit Price Deflator,
as a means of compliance under subsection (b)(4)
    ``(l) Information Collection.--The Secretary may collect the 
information necessary to verify and audit--
            ``(1) the annual renewable energy generation of any retail 
        electric supplier, Federal renewable energy credits submitted 
        by a retail electric supplier pursuant to subsection (b)(1) and 
        Federal energy efficiency credits submitted by a retail 
        electric supplier pursuant to subsection (b)(2);
            ``(2) annual electricity savings achieved pursuant to 
        subsection (i);
            ``(3) the validity of Federal renewable energy credits 
        submitted for compliance by a retail electric supplier to the 
        Secretary; and
            ``(4) the quantity of electricity sales of all retail 
        electric suppliers.
    ``(m) Environmental Savings Clause.--Incremental hydropower shall 
be subject to all applicable environmental laws and licensing and 
regulatory requirements.
    ``(n) State Programs.--(1) Nothing in this section diminishes any 
authority of a State or political subdivision of a State to--
                            ``(A) adopt or enforce any law or 
                        regulation respecting renewable energy or 
                        energy efficiency, including but not limited to 
                        programs that exceed the required amount of 
                        renewable energy or energy efficiency under 
                        this section, or
                            ``(B) regulate the acquisition and 
                        disposition of Federal renewable energy credits 
                        and Federal energy efficiency credits by retail 
                        electric suppliers.
        No law or regulation referred to in subparagraph (A) shall 
        relieve any person of any requirement otherwise applicable 
        under this section. The Secretary, in consultation with States 
        having renewable energy programs and energy efficiency 
        programs, shall preserve the integrity of such State programs, 
        including programs that exceed the required amount of renewable 
        energy and energy efficiency under this section, and shall 
        facilitate coordination between the Federal program and State 
        programs.
    ``(2) In the rule establishing the program under this section, the 
Secretary shall incorporate common elements of existing renewable 
energy and energy efficiency programs, including State programs, to 
ensure administrative ease, market transparency and effective 
enforcement. The Secretary shall work with the States to minimize 
administrative burdens and costs to retail electric suppliers.
    ``(o) Recovery of Costs.--An electric utility whose sales of 
electric energy are subject to rate regulation, including any utility 
whose rates are regulated by the Commission and any State regulated 
electric utility, shall not be denied the opportunity to recover the 
full amount of the prudently incurred incremental cost of renewable 
energy and energy efficiency obtained to comply with the requirements 
of subsection (b). For purposes of this subsection, the definitions in 
section 3 of this Act shall apply to the terms electric utility, State 
regulated electric utility, State agency, Commission, and State 
regulatory authority.
    ``(p) Program Review.--The Secretary shall enter into a contract 
with the National Academy of Sciences to conduct a comprehensive 
evaluation of all aspects of the program established under this 
section, within 8 years of enactment of this section. The study shall 
include an evaluation of--
            ``(1) the effectiveness of the program in increasing the 
        market penetration and lowering the cost of the eligible 
        renewable energy and energy efficiency technologies;
            ``(2) the opportunities for any additional technologies and 
        sources of renewable energy and energy efficiency emerging 
        since enactment of this section;
            ``(3) the impact on the regional diversity and reliability 
        of supply sources, including the power quality benefits of 
        distributed generation;
            ``(4) the regional resource development relative to 
        renewable potential and reasons for any under investment in 
        renewable resources; and
            ``(5) the net cost/benefit of the renewable electricity 
        standard to the national and State economies, including retail 
        power costs, economic development benefits of investment, 
        avoided costs related to environmental and congestion 
        mitigation investments that would otherwise have been required, 
        impact on natural gas demand and price, effectiveness of green 
        marketing programs at reducing the cost of renewable resources.
The Secretary shall transmit the results of the evaluation and any 
recommendations for modifications and improvements to the program to 
Congress not later than January 1, 2016.
    ``(q) State Renewable Energy and Energy Efficiency Account 
Program.--(1) There is established in the Treasury a State renewable 
energy and energy efficiency account program.
    ``(2) All money collected by the Secretary from the alternative 
compliance payments under subsection (k) shall be deposited into the 
State renewable energy and energy efficiency account established 
pursuant to this subsection.
    ``(3) Proceeds deposited in the State renewable energy and energy 
efficiency account shall be used by the Secretary, subject to annual 
appropriations, for a program to provide grants to the State agency 
responsible for administering a fund to promote renewable energy 
generation and energy efficiency for customers of the State, or an 
alternative agency designated by the State, or if no such agency 
exists, to the State agency developing State energy conservation plans 
under section 363 of the Energy Policy and Conservation Act (42 U.S.C. 
6322) for the purposes of promoting renewable energy production and 
providing energy assistance and weatherization services to low-income 
consumers.
    ``(4) The Secretary may issue guidelines and criteria for grants 
awarded under this subsection. At least 75 percent of the funds 
provided to each State shall be used for promoting renewable energy 
production and energy efficiency through grants, production incentives 
or other state-approved funding mechanisms. The funds shall be 
allocated to the States on the basis of retail electric sales subject 
to the Renewable electricity Standard under this section or through 
voluntary participation. State agencies receiving grants under this 
section shall maintain such records and evidence of compliance as the 
Secretary may require.''.
    (b) Table of Contents.--The table of contents for such title is 
amended by adding the following new item at the end:

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

   TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007

SEC. 1500. SHORT TITLE; AMENDMENT OF 1986 CODE.

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

        Subtitle A--Clean Renewable Energy Production Incentives

            PART I--PROVISIONS RELATING TO RENEWABLE ENERGY

SEC. 1501. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY CREDIT.

    (a) Extension of Credit.--Each of the following provisions of 
section 45(d) (relating to qualified facilities) is amended by striking 
``January 1, 2009'' and inserting ``January 1, 2013'':
            (1) Paragraph (1).
            (2) Clauses (i) and (ii) of paragraph (2)(A).
            (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
            (4) Paragraph (4).
            (5) Paragraph (5).
            (6) Paragraph (6).
            (7) Paragraph (7).
            (8) Subparagraphs (A) and (B) of paragraph (9).
    (b) Modification of Credit Phaseout.--
            (1) Repeal of phaseout.--Subsection (b) of section 45 is 
        amended--
                    (A) by striking paragraph (1), and
                    (B) by striking ``the 8 cent amount in paragraph 
                (1),'' in paragraph (2) thereof.
            (2) Limitation based on investment in facility.--Subsection 
        (b) of section 45 is amended by inserting before paragraph (2) 
        the following new paragraph:
            ``(1) Limitation based on investment in facility.--
                    ``(A) In general.--In the case of any qualified 
                facility originally placed in service after December 
                31, 2008, the amount of the credit determined under 
                subsection (a) for any taxable year with respect to 
                electricity produced at such facility shall not exceed 
                the product of--
                            ``(i) the applicable percentage with 
                        respect to such facility, multiplied by
                            ``(ii) the eligible basis of such facility.
                    ``(B) Carryforward of unused limitation and excess 
                credit.--
                            ``(i) Unused limitation.--If the limitation 
                        imposed under subparagraph (A) with respect to 
                        any facility for any taxable year exceeds the 
                        prelimitation credit for such facility for such 
                        taxable year, the limitation imposed under 
                        subparagraph (A) with respect to such facility 
                        for the succeeding taxable year shall be 
                        increased by the amount of such excess.
                            ``(ii) Excess credit.--If the prelimitation 
                        credit with respect to any facility for any 
                        taxable year exceeds the limitation imposed 
                        under subparagraph (A) with respect to such 
                        facility for such taxable year, the credit 
                        determined under subsection (a) with respect to 
                        such facility for the succeeding taxable year 
                        (determined before the application of 
                        subparagraph (A) for such succeeding taxable 
                        year) shall be increased by the amount of such 
                        excess. With respect to any facility, no amount 
                        may carried forward under this clause to any 
                        taxable year beginning after the 10-year period 
                        described in subsection (a)(2)(A)(ii) with 
                        respect to such facility.
                            ``(iii) Prelimitation credit.--The term 
                        `prelimitation credit' with respect to any 
                        facility for a taxable year means the credit 
                        determined under subsection (a) with respect to 
                        such facility for such taxable year, determined 
                        without regard to subparagraph (A) and after 
                        taking into account any increase for such 
                        taxable year under clause (ii).
                    ``(C) Applicable percentage.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `applicable 
                        percentage' means, with respect to any 
                        facility, the appropriate percentage prescribed 
                        by the Secretary for the month in which such 
                        facility is originally placed in service.
                            ``(ii) Method of prescribing applicable 
                        percentages.--The applicable percentages 
                        prescribed by the Secretary for any month under 
                        clause (i) shall be percentages which yield 
                        over a 10-year period amounts of limitation 
                        under subparagraph (A) which have a present 
                        value equal to 35 percent of the eligible basis 
                        of the facility.
                            ``(iii) Method of discounting.--The present 
                        value under clause (ii) shall be determined--
                                    ``(I) as of the last day of the 1st 
                                year of the 10-year period referred to 
                                in clause (ii),
                                    ``(II) by using a discount rate 
                                equal to the greater of 110 percent of 
                                the Federal long-term rate as in effect 
                                under section 1274(d) for the month 
                                preceding the month for which the 
                                applicable percentage is being 
                                prescribed, or 4.5 percent, and
                                    ``(III) by taking into account the 
                                limitation under subparagraph (A) for 
                                any year on the last day of such year.
                    ``(D) Eligible basis.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `eligible 
                        basis' means, with respect to any facility, the 
                        sum of--
                                    ``(I) the basis of such facility 
                                determined as of the time that such 
                                facility is originally placed in 
                                service, and
                                    ``(II) the portion of the basis of 
                                any shared qualified property which is 
                                properly allocable to such facility 
                                under clause (ii).
                            ``(ii) Rules for allocation.--For purposes 
                        of subclause (II) of clause (i), the basis of 
                        shared qualified property shall be allocated 
                        among all qualified facilities which are 
                        projected to be placed in service and which 
                        require utilization of such property in 
                        proportion to projected generation from such 
                        facilities.
                            ``(iii) Shared qualified property.--For 
                        purposes of this paragraph, the term `shared 
                        qualified property' means, with respect to any 
                        facility, any property described in section 
                        168(e)(3)(B)(vi)--
                                    ``(I) which a qualified facility 
                                will require for utilization of such 
                                facility, and
                                    ``(II) which is not a qualified 
                                facility.
                            ``(iv) Special rule relating to geothermal 
                        facilities.--In the case of any qualified 
                        facility using geothermal energy to produce 
                        electricity, the basis of such facility for 
                        purposes of this paragraph shall be determined 
                        as though intangible drilling and development 
                        costs described in section 263(c) were 
                        capitalized rather than expensed.
                    ``(E) Special rule for first and last year of 
                credit period.--In the case of any taxable year any 
                portion of which is not within the 10-year period 
                described in subsection (a)(2)(A)(ii) with respect to 
                any facility, the amount of the limitation under 
                subparagraph (A) with respect to such facility shall be 
                reduced by an amount which bears the same ratio to the 
                amount of such limitation (determined without regard to 
                this subparagraph) as such portion of the taxable year 
                which is not within such period bears to the entire 
                taxable year.
                    ``(F) Election to treat all facilities placed in 
                service in a year as 1 facility.--At the election of 
                the taxpayer, all qualified facilities which are part 
                of the same project and which are placed in service 
                during the same calendar year shall be treated for 
                purposes of this section as 1 facility which is placed 
                in service at the mid-point of such year or the first 
                day of the following calendar year.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to property 
        originally placed in service after December 31, 2008.
            (2) Repeal of credit phaseout.--The amendments made by 
        subsection (b)(1) shall apply to taxable years ending after 
        December 31, 2008.

SEC. 1502. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE 
              RENEWABLES.

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

SEC. 1503. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

    (a) Extension of Credit.--
            (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
        (3)(A)(ii) of section 48(a) (relating to energy credit) are 
        each amended by striking ``January 1, 2009'' and inserting 
        ``January 1, 2017''.
            (2) Fuel cell property.--Subparagraph (E) of section 
        48(c)(1) (relating to qualified fuel cell property) is amended 
        by striking ``December 31, 2008'' and inserting ``December 31, 
        2016''.
            (3) Microturbine property.--Subparagraph (E) of section 
        48(c)(2) (relating to qualified microturbine property) is 
        amended by striking ``December 31, 2008'' and inserting 
        ``December 31, 2016''.
    (b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) (relating to specified credits) is 
amended by striking ``and'' at the end of clause (iii), by striking the 
period at the end of clause (iv) and inserting ``, and'', and by adding 
at the end the following new clause:
                            ``(v) the credit determined under section 
                        46 to the extent that such credit is 
                        attributable to the energy credit determined 
                        under section 48.''.
    (c) Energy Credit for Combined Heat and Power System Property.--
            (1) In general.--Section 48(a)(3)(A) (defining energy 
        property) is amended by striking ``or'' at the end of clause 
        (iii), by inserting ``or'' at the end of clause (iv), and by 
        adding at the end the following new clause:
                            ``(v) combined heat and power system 
                        property,''.
            (2) Combined heat and power system property.--Section 48 
        (relating to energy credit; reforestation credit) is amended by 
        adding at the end the following new subsection:
    ``(d) Combined Heat and Power System Property.--For purposes of 
subsection (a)(3)(A)(v)--
            ``(1) Combined heat and power system property.--The term 
        `combined heat and power system property' means property 
        comprising a system--
                    ``(A) which uses the same energy source for the 
                simultaneous or sequential generation of electrical 
                power, mechanical shaft power, or both, in combination 
                with the generation of steam or other forms of useful 
                thermal energy (including heating and cooling 
                applications),
                    ``(B) which produces--
                            ``(i) at least 20 percent of its total 
                        useful energy in the form of thermal energy 
                        which is not used to produce electrical or 
                        mechanical power (or combination thereof), and
                            ``(ii) at least 20 percent of its total 
                        useful energy in the form of electrical or 
                        mechanical power (or combination thereof),
                    ``(C) the energy efficiency percentage of which 
                exceeds 60 percent, and
                    ``(D) which is placed in service before January 1, 
                2017.
            ``(2) Limitation.--
                    ``(A) In general.--In the case of combined heat and 
                power system property with an electrical capacity in 
                excess of the applicable capacity placed in service 
                during the taxable year, the credit under subsection 
                (a)(1) (determined without regard to this paragraph) 
                for such year shall be equal to the amount which bears 
                the same ratio to such credit as the applicable 
                capacity bears to the capacity of such property.
                    ``(B) Applicable capacity.--For purposes of 
                subparagraph (A), the term `applicable capacity' means 
                15 megawatts or a mechanical energy capacity of more 
                than 20,000 horsepower or an equivalent combination of 
                electrical and mechanical energy capacities.
                    ``(C) Maximum capacity.--The term `combined heat 
                and power system property' shall not include any 
                property comprising a system if such system has a 
                capacity in excess of 50 megawatts or a mechanical 
                energy capacity in excess of 67,000 horsepower or an 
                equivalent combination of electrical and mechanical 
                energy capacities.
            ``(3) Special rules.--
                    ``(A) Energy efficiency percentage.--For purposes 
                of this subsection, the energy efficiency percentage of 
                a system is the fraction--
                            ``(i) the numerator of which is the total 
                        useful electrical, thermal, and mechanical 
                        power produced by the system at normal 
                        operating rates, and expected to be consumed in 
                        its normal application, and
                            ``(ii) the denominator of which is the 
                        lower heating value of the fuel sources for the 
                        system.
                    ``(B) Determinations made on btu basis.--The energy 
                efficiency percentage and the percentages under 
                paragraph (1)(B) shall be determined on a Btu basis.
                    ``(C) Input and output property not included.--The 
                term `combined heat and power system property' does not 
                include property used to transport the energy source to 
                the facility or to distribute energy produced by the 
                facility.
            ``(4) Systems using biomass.--If a system is designed to 
        use biomass (within the meaning of paragraphs (2) and (3) of 
        section 45(c) without regard to the last sentence of paragraph 
        (3)(A)) for at least 90 percent of the energy source--
                    ``(A) paragraph (1)(C) shall not apply, but
                    ``(B) the amount of credit determined under 
                subsection (a) with respect to such system shall not 
                exceed the amount which bears the same ratio to such 
                amount of credit (determined without regard to this 
                paragraph) as the energy efficiency percentage of such 
                system bears to 60 percent.''.
    (d) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking ``$500'' 
and inserting ``$1,500''.
    (e) Public Electric Utility Property Taken Into Account.--
            (1) In general.--Paragraph (3) of section 48(a) is amended 
        by striking the second sentence thereof.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 48(c) is amended by 
                striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
                    (B) Paragraph (2) of section 48(c) is amended by 
                striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
    (f) Clerical Amendments.--Paragraphs (1)(B) and (2)(B) of section 
48(c) are each amended by striking ``paragraph (1)'' and inserting 
``subsection (a)''.
    (g) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Allowance against alternative minimum tax.--The 
        amendments made by subsection (b) shall apply to credits 
        determined under section 46 of the Internal Revenue Code of 
        1986 in taxable years beginning after the date of the enactment 
        of this Act and to carrybacks of such credits.
            (3) Combined heat and power and fuel cell property.--The 
        amendments made by subsections (c) and (d) shall apply to 
        periods after the date of the enactment of this Act, in taxable 
        years ending after such date, under rules similar to the rules 
        of section 48(m) of the Internal Revenue Code of 1986 (as in 
        effect on the day before the date of the enactment of the 
        Revenue Reconciliation Act of 1990).
            (4)  Public electric utility property.--The amendments made 
        by subsection (e) shall apply to periods after June 20, 2007, 
        in taxable years ending after such date, under rules similar to 
        the rules of section 48(m) of the Internal Revenue Code of 1986 
        (as in effect on the day before the date of the enactment of 
        the Revenue Reconciliation Act of 1990).

SEC. 1504. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY 
              EFFICIENT PROPERTY.

    (a) Extension.--Section 25D(g) (relating to termination) is amended 
by striking ``December 31, 2008'' and inserting ``December 31, 2014''.
    (b) Maximum Credit for Solar Electric Property.--
            (1) In general.--Section 25D(b)(1)(A) (relating to maximum 
        credit) is amended by striking ``$2,000'' and inserting 
        ``$4,000''.
            (2) Conforming amendment.--Section 25D(e)(4)(A)(i) is 
        amended by striking ``$6,667'' and inserting ``$13,334''.
    (c) Credit for Residential Wind Property.--
            (1) In general.--Section 25D(a) (relating to allowance of 
        credit) is amended by striking ``and'' at the end of paragraph 
        (2), by striking the period at the end of paragraph (3) and 
        inserting ``, and'', and by adding at the end the following new 
        paragraph:
            ``(4) 30 percent of the qualified small wind energy 
        property expenditures made by the taxpayer during such year.''.
            (2) Limitation.--Section 25D(b)(1) (relating to maximum 
        credit) is amended by striking ``and'' at the end of 
        subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(D) $500 with respect to each half kilowatt of 
                capacity (not to exceed $4,000) of wind turbines for 
                which qualified small wind energy property expenditures 
                are made.''.
            (3) Qualified small wind energy property expenditures.--
                    (A) In general.--Section 25D(d) (relating to 
                definitions) is amended by adding at the end the 
                following new paragraph:
            ``(4) Qualified small wind energy property expenditure.--
        The term `qualified small wind energy property expenditure' 
        means an expenditure for property which uses a wind turbine to 
        generate electricity for use in connection with a dwelling unit 
        located in the United States and used as a residence by the 
        taxpayer.''.
                    (B) No double benefit.--Section 45(d)(1) (relating 
                to wind facility) is amended by adding at the end the 
                following new sentence: ``Such term shall not include 
                any facility with respect to which any qualified small 
                wind energy property expenditure (as defined in 
                subsection (d)(4) of section 25D) is taken into account 
                in determining the credit under such section.''.
            (4) Maximum expenditures in case of joint occupancy.--
        Section 25D(e)(4)(A) (relating to maximum expenditures) is 
        amended by striking ``and'' at the end of clause (ii), by 
        striking the period at the end of clause (iii) and inserting 
        ``, and'', and by adding at the end the following new clause:
                            ``(iv) $1,667 in the case of each half 
                        kilowatt of capacity of wind turbines for which 
                        qualified small wind energy property 
                        expenditures are made.''.
    (d) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subsection (c) of section 25D is amended 
        to read as follows:
    ``(c) Limitation Based on Amount of Tax; Carryforward of Unused 
Credit.--
            ``(1) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for the taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.
            ``(2) Carryforward of unused credit.--
                    ``(A) Rule for years in which all personal credits 
                allowed against regular and alternative minimum tax.--
                In the case of a taxable year to which section 26(a)(2) 
                applies, if the credit allowable under subsection (a) 
                exceeds the limitation imposed by section 26(a)(2) for 
                such taxable year reduced by the sum of the credits 
                allowable under this subpart (other than this section), 
                such excess shall be carried to the succeeding taxable 
                year and added to the credit allowable under subsection 
                (a) for such succeeding taxable year.
                    ``(B) Rule for other years.--In the case of a 
                taxable year to which section 26(a)(2) does not apply, 
                if the credit allowable under subsection (a) exceeds 
                the limitation imposed by paragraph (1) for such 
                taxable year, such excess shall be carried to the 
                succeeding taxable year and added to the credit 
                allowable under subsection (a) for such succeeding 
                taxable year.''.
            (2) Conforming amendments.--
                    (A) Section 23(b)(4)(B) is amended by inserting 
                ``and section 25D'' after ``this section''.
                    (B) Section 24(b)(3)(B) is amended by striking 
                ``and 25B'' and inserting ``, 25B, and 25D''.
                    (C) Section 25B(g)(2) is amended by striking 
                ``section 23'' and inserting ``sections 23 and 25D''.
                    (D) Section 26(a)(1) is amended by striking ``and 
                25B'' and inserting ``25B, and 25D''.
    (e) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        expenditures after December 31, 2007.
            (2) Allowance against alternative minimum tax.--
                    (A) In general.--The amendments made by subsection 
                (d) shall apply to taxable years beginning after the 
                date of the enactment of this Act.
                    (B) Application of egtrra sunset.--The amendments 
                made by subparagraphs (A) and (B) of subsection (d)(2) 
                shall be subject to title IX of the Economic Growth and 
                Tax Relief Reconciliation Act of 2001 in the same 
                manner as the provisions of such Act to which such 
                amendments relate.

SEC. 1505. EXTENSION AND MODIFICATION OF SPECIAL RULE TO IMPLEMENT FERC 
              AND STATE ELECTRIC RESTRUCTURING POLICY.

    (a) Extension for Qualified Electric Utilities.--
            (1) In general.--Paragraph (3) of section 451(i) (relating 
        to special rule for sales or dispositions to implement Federal 
        Energy Regulatory Commission or State electric restructuring 
        policy) is amended by inserting ``(before January 1, 2010, in 
        the case of a qualified electric utility)'' after ``January 1, 
        2008''.
            (2) Qualified electric utility.--Subsection (i) of section 
        451 is amended by redesignating paragraphs (6) through (10) as 
        paragraphs (7) through (11), respectively, and by inserting 
        after paragraph (5) the following new paragraph:
            ``(6) Qualified electric utility.--For purposes of this 
        subsection, the term `qualified electric utility' means a 
        person that, as of the date of the qualifying electric 
        transmission transaction, is vertically integrated, in that it 
        is both--
                    ``(A) a transmitting utility (as defined in section 
                3(23) of the Federal Power Act (16 U.S.C. 796(23)) with 
                respect to the transmission facilities to which the 
                election under this subsection applies, and
                    ``(B) an electric utility (as defined in section 
                3(22) of the Federal Power Act (16 U.S.C. 796(22)).''.
    (b) Extension of Period for Transfer of Operational Control 
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is amended by 
striking ``December 31, 2007'' and inserting ``the date which is 4 
years after the close of the taxable year in which the transaction 
occurs''.
    (c) Property Located Outside the United States Not Treated as 
Exempt Utility Property.--Paragraph (5) of section 451(i) is amended by 
adding at the end the following new subparagraph:
                    ``(C) Exception for property located outside the 
                united states.--The term `exempt utility property' 
                shall not include any property which is located outside 
                the United States.''.
    (d) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to transactions after December 31, 2007.
            (2) Transfers of operational control.--The amendment made 
        by subsection (b) shall take effect as if included in section 
        909 of the American Jobs Creation Act of 2004.
            (3) Exception for property located outside the united 
        states.--The amendment made by subsection (c) shall apply to 
        transactions after the date of the enactment of this Act.

SEC. 1506. NEW CLEAN RENEWABLE ENERGY BONDS.

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

                ``Subpart I--Qualified Tax Credit Bonds

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

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

    ``(a) Allowance of Credit.--If a taxpayer holds a qualified tax 
credit bond on one or more credit allowance dates of the bond during 
any taxable year, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount equal to the sum 
of the credits determined under subsection (b) with respect to such 
dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified tax credit bond is 25 percent of the annual 
        credit determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified tax credit bond is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate is 70 percent of the rate which 
        the Secretary estimates will permit the issuance of qualified 
        tax credit bonds with a specified maturity or redemption date 
        without discount and without interest cost to the qualified 
        issuer. The applicable credit rate with respect to any 
        qualified tax credit bond shall be determined as of the first 
        day on which there is a binding, written contract for the sale 
        or exchange of the bond.
            ``(4) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) Qualified Tax Credit Bond.--For purposes of this section--
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means a new clean renewable energy bond which is 
        part of an issue that meets the requirements of paragraphs (2), 
        (3), (4), (5), and (6).
            ``(2) Special rules relating to expenditures.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if, as of 
                the date of issuance, the issuer reasonably expects--
                            ``(i) 100 percent or more of the available 
                        project proceeds to be spent for 1 or more 
                        qualified purposes within the 3-year period 
                        beginning on such date of issuance, and
                            ``(ii) a binding commitment with a third 
                        party to spend at least 10 percent of such 
                        available project proceeds will be incurred 
                        within the 6-month period beginning on such 
                        date of issuance.
                    ``(B) Failure to spend required amount of bond 
                proceeds within 3 years.--
                            ``(i) In general.--To the extent that less 
                        than 100 percent of the available project 
                        proceeds of the issue are expended by the close 
                        of the expenditure period for 1 or more 
                        qualified purposes, the issuer shall redeem all 
                        of the nonqualified bonds within 90 days after 
                        the end of such period. For purposes of this 
                        paragraph, the amount of the nonqualified bonds 
                        required to be redeemed shall be determined in 
                        the same manner as under section 142.
                            ``(ii) Expenditure period.--For purposes of 
                        this subpart, the term `expenditure period' 
                        means, with respect to any issue, the 3-year 
                        period beginning on the date of issuance. Such 
                        term shall include any extension of such period 
                        under clause (iii).
                            ``(iii) Extension of period.--Upon 
                        submission of a request prior to the expiration 
                        of the expenditure period (determined without 
                        regard to any extension under this clause), the 
                        Secretary may extend such period if the issuer 
                        establishes that the failure to expend the 
                        proceeds within the original expenditure period 
                        is due to reasonable cause and the expenditures 
                        for qualified purposes will continue to proceed 
                        with due diligence.
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means a purpose 
                specified in section 54B(a)(1).
                    ``(D) Reimbursement.--For purposes of this 
                subtitle, available project proceeds of an issue shall 
                be treated as spent for a qualified purpose if such 
                proceeds are used to reimburse the issuer for amounts 
                paid for a qualified purpose after the date that the 
                Secretary makes an allocation of bond limitation with 
                respect to such issue, but only if--
                            ``(i) prior to the payment of the original 
                        expenditure, the issuer declared its intent to 
                        reimburse such expenditure with the proceeds of 
                        a qualified tax credit bond,
                            ``(ii) not later than 60 days after payment 
                        of the original expenditure, the issuer adopts 
                        an official intent to reimburse the original 
                        expenditure with such proceeds, and
                            ``(iii) the reimbursement is made not later 
                        than 18 months after the date the original 
                        expenditure is paid.
            ``(3) Reporting.--An issue shall be treated as meeting the 
        requirements of this paragraph if the issuer of qualified tax 
        credit bonds submits reports similar to the reports required 
        under section 149(e).
            ``(4) Special rules relating to arbitrage.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if the 
                issuer satisfies the requirements of section 148 with 
                respect to the proceeds of the issue.
                    ``(B) Special rule for investments during 
                expenditure period.--An issue shall not be treated as 
                failing to meet the requirements of subparagraph (A) by 
                reason of any investment of available project proceeds 
                during the expenditure period.
                    ``(C) Special rule for reserve funds.--An issue 
                shall not be treated as failing to meet the 
                requirements of subparagraph (A) by reason of any fund 
                which is expected to be used to repay such issue if--
                            ``(i) such fund is funded at a rate not 
                        more rapid than equal annual installments,
                            ``(ii) such fund is funded in a manner 
                        reasonably expected to result in an amount not 
                        greater than an amount necessary to repay the 
                        issue, and
                            ``(iii) the yield on such fund is not 
                        greater than the discount rate determined under 
                        paragraph (5)(B) with respect to the issue.
            ``(5) Maturity limitation.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if the 
                maturity of any bond which is part of such issue does 
                not exceed the maximum term determined by the Secretary 
                under subparagraph (B).
                    ``(B) Maximum term.--During each calendar month, 
                the Secretary shall determine the maximum term 
                permitted under this paragraph for bonds issued during 
                the following calendar month. Such maximum term shall 
                be the term which the Secretary estimates will result 
                in the present value of the obligation to repay the 
                principal on the bond being equal to 50 percent of the 
                face amount of such bond. Such present value shall be 
                determined using as a discount rate the average annual 
                interest rate of tax-exempt obligations having a term 
                of 10 years or more which are issued during the month. 
                If the term as so determined is not a multiple of a 
                whole year, such term shall be rounded to the next 
                highest whole year.
            ``(6) Prohibition on financial conflicts of interest.--An 
        issue shall be treated as meeting the requirements of this 
        paragraph if the issuer certifies that--
                    ``(A) applicable State and local law requirements 
                governing conflicts of interest are satisfied with 
                respect to such issue, and
                    ``(B) if the Secretary prescribes additional 
                conflicts of interest rules governing the appropriate 
                Members of Congress, Federal, State, and local 
                officials, and their spouses, such additional rules are 
                satisfied with respect to such issue.
    ``(e) Other Definitions.--For purposes of this subchapter--
            ``(1) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(2) Bond.--The term `bond' includes any obligation.
            ``(3) State.--The term `State' includes the District of 
        Columbia and any possession of the United States.
            ``(4) Available project proceeds.--The term `available 
        project proceeds' means--
                    ``(A) the excess of--
                            ``(i) the proceeds from the sale of an 
                        issue, over
                            ``(ii) the issuance costs financed by the 
                        issue (to the extent that such costs do not 
                        exceed 2 percent of such proceeds), and
                    ``(B) the proceeds from any investment of the 
                excess described in subparagraph (A).
    ``(f) Credit Treated as Interest.--For purposes of this subtitle, 
the credit determined under subsection (a) shall be treated as interest 
which is includible in gross income.
    ``(g) S Corporations and Partnerships.--In the case of a tax credit 
bond held by an S corporation or partnership, the allocation of the 
credit allowed by this section to the shareholders of such corporation 
or partners of such partnership shall be treated as a distribution.
    ``(h) Bonds Held by Regulated Investment Companies and Real Estate 
Investment Trusts.--If any qualified tax credit bond is held by a 
regulated investment company or a real estate investment trust, the 
credit determined under subsection (a) shall be allowed to shareholders 
of such company or beneficiaries of such trust (and any gross income 
included under subsection (f) with respect to such credit shall be 
treated as distributed to such shareholders or beneficiaries) under 
procedures prescribed by the Secretary.
    ``(i) Credits May Be Stripped.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--There may be a separation (including at 
        issuance) of the ownership of a qualified tax credit bond and 
        the entitlement to the credit under this section with respect 
        to such bond. In case of any such separation, the credit under 
        this section shall be allowed to the person who on the credit 
        allowance date holds the instrument evidencing the entitlement 
        to the credit and not to the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a separation 
        described in paragraph (1), the rules of section 1286 shall 
        apply to the qualified tax credit bond as if it were a stripped 
        bond and to the credit under this section as if it were a 
        stripped coupon.

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

    ``(a) New Clean Renewable Energy Bond.--For purposes of this 
subpart, the term `new clean renewable energy bond' means any bond 
issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for capital expenditures incurred by 
        public power providers, governmental bodies, or cooperative 
        electric companies for one or more qualified renewable energy 
        facilities,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--The maximum aggregate face amount of 
        bonds which may be designated under subsection (a) by any 
        issuer shall not exceed the limitation amount allocated under 
        this subsection to such issuer.
            ``(2) National limitation on amount of bonds designated.--
        There is a national new clean renewable energy bond limitation 
        of $2,000,000,000 which shall be allocated by the Secretary as 
        provided in paragraph (3), except that--
                    ``(A) not more than 33 \1/3\ percent thereof may be 
                allocated to qualified projects of public power 
                providers,
                    ``(B) not more than 33 \1/3\ percent thereof may be 
                allocated to qualified projects of governmental bodies, 
                and
                    ``(C) not more than 33 \1/3\ percent thereof may be 
                allocated to qualified projects of cooperative electric 
                companies.
            ``(3) Method of allocation.--
                    ``(A) Allocation among public power providers.--
                After the Secretary determines the qualified projects 
                of public power providers which are appropriate for 
                receiving an allocation of the national new clean 
                renewable energy bond limitation, the Secretary shall, 
                to the maximum extent practicable, make allocations 
                among such projects in such manner that the amount 
                allocated to each such project bears the same ratio to 
                the cost of such project as the limitation under 
                paragraph (2)(A) bears to the cost of all such 
                projects.
                    ``(B) Allocation among governmental bodies and 
                cooperative electric companies.--The Secretary shall 
                make allocations of the amount of the national new 
                clean renewable energy bond limitation described in 
                paragraphs (2)(B) and (2)(C) among qualified projects 
                of governmental bodies and cooperative electric 
                companies, respectively, in such manner as the 
                Secretary determines appropriate.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified renewable energy facility.--The term 
        `qualified renewable energy facility' means a qualified 
        facility (as determined under section 45(d) without regard to 
        paragraphs (8) and (10) thereof and to any placed in service 
        date) owned by a public power provider, a governmental body, or 
        a cooperative electric company.
            ``(2) Public power provider.--The term `public power 
        provider' means a State utility with a service obligation, as 
        such terms are defined in section 217 of the Federal Power Act 
        (as in effect on the date of the enactment of this paragraph).
            ``(3) Governmental body.--The term `governmental body' 
        means any State or Indian tribal government, or any political 
        subdivision thereof.
            ``(4) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 
        1381(a)(2)(C).
            ``(5) Clean renewable energy bond lender.--The term `clean 
        renewable energy bond lender' means a lender which is a 
        cooperative which is owned by, or has outstanding loans to, 100 
        or more cooperative electric companies and is in existence on 
        February 1, 2002, and shall include any affiliated entity which 
        is controlled by such lender.
            ``(6) Qualified issuer.--The term `qualified issuer' means 
        a public power provider, a governmental body, a cooperative 
        electric company, a clean renewable energy bond lender, or a 
        not-for-profit electric utility which has received a loan or 
        loan guarantee under the Rural Electrification Act.''.
    (b) Reporting.--Subsection (d) of section 6049 (relating to returns 
regarding payments of interest) is amended by adding at the end the 
following new paragraph:
            ``(9) Reporting of credit on qualified tax credit bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54A and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54A(e)(1)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
    (c) Conforming Amendments.--
            (1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended 
        by striking ``subpart C'' and inserting ``subparts C and I''.
            (2) Section 1397E(c)(2) is amended by striking ``subpart 
        H'' and inserting ``subparts H and I''.
            (3) Section 6401(b)(1) is amended by striking ``and H'' and 
        inserting ``H, and I''.
            (4) The heading of subpart H of part IV of subchapter A of 
        chapter 1 is amended by striking ``Certain Bonds'' and 
        inserting ``Clean Renewable Energy Bonds''.
            (5) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by striking the item relating to subpart H 
        and inserting the following new items:

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

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

    (d) Application of Certain Labor Standards on Projects Financed 
Under Tax Credit Bonds.--Subchapter IV of chapter 31 of title 40, 
United States Code, shall apply to projects financed with the proceeds 
of any tax credit bond (as defined in section 54A of the Internal 
Revenue Code of 1986).
    (e) Effective Dates.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

       PART II--PROVISIONS RELATING TO CARBON MITIGATION AND COAL

SEC. 1507. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT 
              INVESTMENT CREDIT.

    (a) Modification of Credit Amount.--Section 48A(a) (relating to 
qualifying advanced coal project credit) is amended by striking ``and'' 
at the end of paragraph (1), by striking the period at the end of 
paragraph (2) and inserting ``, and'', and by adding at the end the 
following the paragraph:
            ``(3) 30 percent of the qualified investment for such 
        taxable year in the case of projects described in clauses (iii) 
        or (iv) of subsection (d)(3)(B).''.
    (b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A) (relating 
to aggregate credits) is amended by striking ``$1,300,000,000'' and 
inserting ``$2,800,000,000''.
    (c) Authorization of Additional Projects.--
            (1) In general.--Subparagraph (B) of section 48A(d)(3) 
        (relating to aggregate credits) is amended to read as follows:
                    ``(B) Particular projects.--Of the dollar amount in 
                subparagraph (A), the Secretary is authorized to 
                certify--
                            ``(i) $800,000,000 for integrated 
                        gasification combined cycle projects the 
                        application for which is submitted during the 
                        period described in paragraph (2)(A)(i),
                            ``(ii) $500,000,000 for projects which use 
                        other advanced coal-based generation 
                        technologies the application for which is 
                        submitted during the period described in 
                        paragraph (2)(A)(i),
                            ``(iii) $1,000,000,000 for integrated 
                        gasification combined cycle projects the 
                        application for which is submitted during the 
                        period described in paragraph (2)(A)(ii), and
                            ``(iv) $500,000,000 for other advanced 
                        coal-based generation technology projects the 
                        application for which is submitted during the 
                        period described in paragraph (2)(A)(ii).''.
            (2) Application period for additional projects.--
        Subparagraph (A) of section 48A(d)(2) (relating to 
        certification) is amended to read as follows:
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application meeting the requirements of subparagraph 
                (B). An applicant may only submit an application--
                            ``(i) for an allocation from the dollar 
                        amount specified in clause (i) or (ii) of 
                        paragraph (3)(A) during the 3-year period 
                        beginning on the date the Secretary establishes 
                        the program under paragraph (1), and
                            ``(ii) for an allocation from the dollar 
                        amount specified in clause (iii) or (iv) of 
                        paragraph (3)(A) during the 3-year period 
                        beginning at the earlier of the termination of 
                        the period described in clause (i) or the date 
                        prescribed by the Secretary.''.
            (3) Capture and sequestration of carbon dioxide emissions 
        requirement.--
                    (A) In general.--Section 48A(e)(1) (relating to 
                requirements) is amended by striking ``and'' at the end 
                of subparagraph (E), by striking the period at the end 
                of subparagraph (F) and inserting ``; and'', and by 
                adding at the end the following new subparagraph:
                    ``(G) in the case of any project the application 
                for which is submitted during the period described in 
                subsection (d)(2)(A)(ii), the project includes 
                equipment which separates and sequesters at least 65 
                percent (70 percent in the case of an application for 
                reallocated credits under subsection (d)(4)) of such 
                project's total carbon dioxide emissions.''.
                    (B) Highest priority for projects which sequester 
                carbon dioxide emissions.--Section 48A(e)(3) is amended 
                by striking ``and'' at the end of subparagraph 
                (A)(iii), by striking the period at the end of 
                subparagraph (B)(3) and inserting ``, and'', and by 
                adding at the end the following new subparagraph:
                    ``(C) give highest priority to projects with the 
                greatest separation and sequestration percentage of 
                total carbon dioxide emissions.''.
                    (C) Recapture of credit for failure to sequester.--
                Section 48A (relating to qualifying advanced coal 
                project credit) is amended by adding at the end the 
                following new subsection:
    ``(h) Recapture of Credit for Failure to Sequester.--The Secretary 
shall provide for recapturing the benefit of any credit allowable under 
subsection (a) with respect to any project which fails to attain or 
maintain the separation and sequestration requirements of subsection 
(e)(1)(G).''.
            (4) Additional priority for research partnerships.--Section 
        48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
                    (A) by striking ``and'' at the end of clause (ii),
                    (B) by redesignating clause (iii) as clause (iv), 
                and
                    (C) by inserting after clause (ii) the following 
                new clause:
                            ``(iii) applicant participants who have a 
                        research partnership with an eligible 
                        educational institution (as defined in section 
                        529(e)(5)), and''.
            (5) Clerical amendment.--Section 48A(e)(3) is amended by 
        striking ``integrated gasification combined cycle'' in the 
        heading and inserting ``certain''.
    (d) Competitive Certification Awards Modification Authority.--
Section 48A (relating to qualifying advanced coal project credit), as 
amended by subsection (c)(3), is amended by adding at the end the 
following new subsection:
    ``(i) Competitive Certification Awards Modification Authority.--In 
implementing this section or section 48B, the Secretary is directed to 
modify the terms of any competitive certification award and any 
associated closing agreement where such modification--
            ``(1) is consistent with the objectives of such section,
            ``(2) is requested by the recipient of the competitive 
        certification award, and
            ``(3) involves moving the project site to improve the 
        potential to capture and sequester carbon dioxide emissions, 
        reduce costs of transporting feedstock, and serve a broader 
        customer base,
unless the Secretary determines that the dollar amount of tax credits 
available to the taxpayer under such section would increase as a result 
of the modification or such modification would result in such project 
not being originally certified. In considering any such modification, 
the Secretary shall consult with other relevant Federal agencies, 
including the Department of Energy.''.
    (e) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        credits the application for which is submitted during the 
        period described in section 48A(d)(2)(A)(ii) of the Internal 
        Revenue Code of 1986 and which are allocated or reallocated 
        after the date of the enactment of this Act.
            (2) Competitive certification awards modification 
        authority.--The amendment made by subsection (d) shall take 
        effect on the date of the enactment of this Act and is 
        applicable to all competitive certification awards entered into 
        under section 48A or 48B of the Internal Revenue Code of 1986, 
        whether such awards were issued before, on, or after such date 
        of enactment.
            (3) Technical amendment.--The amendment made by subsection 
        (c)(5) shall take effect as if included in the amendment made 
        by section 1307(b) of the Energy Tax Incentives Act of 2005.

SEC. 1508. EXPANSION AND MODIFICATION OF COAL GASIFICATION INVESTMENT 
              CREDIT.

    (a) Credit Rate.--Section 48B(a) (relating to qualifying 
gasification project credit) is amended by inserting ``(30 percent in 
the case of credits allocated under subsection (d)(1)(B))'' after ``20 
percent''.
    (b) Expansion of Aggregate Credits.--Section 48B(d)(1) (relating to 
qualifying gasification project program) is amended by striking ``shall 
not exceed $350,000,000'' and all that follows and inserting ``shall 
not exceed--
                    ``(A) $350,000,000, plus
                    ``(B) $500,000,000 for qualifying gasification 
                projects that include equipment which separates and 
                sequesters at least 75 percent of such a project's 
                total carbon dioxide emissions,
        under rules similar to the rules of section 48A(d)(4).''.
    (c) Recapture of Credit for Failure to Sequester.--Section 48B 
(relating to qualifying gasification project credit) is amended by 
adding at the end the following new subsection:
    ``(f) Recapture of Credit for Failure to Sequester.--The Secretary 
shall provide for recapturing the benefit of any credit allowable under 
subsection (a) with respect to any project which fails to attain or 
maintain the separation and sequestration requirements for such project 
under subsection (d)(1).''.
    (d) Selection Priorities.--Section 48B(d) (relating to qualifying 
gasification project program) is amended by adding at the end the 
following new paragraph:
            ``(4) Selection priorities.--In determining which 
        qualifying gasification projects to certify under this section, 
        the Secretary shall--
                    ``(A) give highest priority to projects with the 
                greatest separation and sequestration percentage of 
                total carbon dioxide emissions, and
                    ``(B) give high priority to applicant participants 
                who have a research partnership with an eligible 
                educational institution (as defined in section 
                529(e)(5)).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to credits described in section 48B(d)(1)(B) of the Internal 
Revenue Code of 1986 which are allocated or reallocated after the date 
of the enactment of this Act.

SEC. 1509. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
              QUALIFIED CARBON DIOXIDE PIPELINE PROPERTY.

    (a) In General.--Section 168(e)(3)(C) (defining 7-year property) is 
amended by striking ``and'' at the end of clause (iv), by redesignating 
clause (v) as clause (vi), and by inserting after clause (iv) the 
following new clause:
                            ``(v) any qualified carbon dioxide pipeline 
                        property--
                                    ``(I) the original use of which 
                                commences with the taxpayer after the 
                                date of the enactment of this clause,
                                    ``(II) the original purpose of 
                                which is to transport carbon dioxide, 
                                and
                                    ``(III) which is placed in service 
                                before January 1, 2011, and''.
    (b) Definition of Qualified Carbon Dioxide Pipeline Property.--
Section 168(e) (relating to classification of property) is amended by 
inserting at the end the following new paragraph:
            ``(8) Qualified carbon dioxide pipeline property.--
                    ``(A) In general.--The term `qualified carbon 
                dioxide pipeline property' means property which is used 
                in the United States solely to transmit qualified 
                carbon dioxide from the point of capture to a secure 
                geological storage or the point at which such qualified 
                carbon dioxide is used as a tertiary injectant.
                    ``(B) Definitions and special rules.--For purposes 
                of this paragraph--
                            ``(i) Qualified carbon dioxide.--The term 
                        `qualified carbon dioxide' means carbon dioxide 
                        captured from an industrial source which--
                                    ``(I) would otherwise be released 
                                into the atmosphere as industrial 
                                emission of greenhouse gas, and
                                    ``(II) is measured at the source of 
                                capture and verified at the point of 
                                disposal or injection.
                            ``(ii) Secure geological storage.--The 
                        Secretary, in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency, shall establish regulations for 
                        determining adequate security measures for the 
                        geological storage of carbon dioxide under 
                        subparagraph (A) such that the carbon dioxide 
                        does not escape into the atmosphere. Such term 
                        shall include storage at deep saline formations 
                        and unminable coal seems under such conditions 
                        as the Secretary may determine under such 
                        regulations.
                            ``(iii) Tertiary injectant.--The term 
                        `tertiary injectant' has the same meaning as 
                        when used within section 193(b)(1).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 1510. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN 
              COAL PRODUCERS AND EXPORTERS.

    (a) Refund.--
            (1) Coal producers.--
                    (A) In general.--Notwithstanding subsections (a)(1) 
                and (c) of section 6416 and section 6511 of the 
                Internal Revenue Code of 1986, if--
                            (i) a coal producer establishes that such 
                        coal producer, or a party related to such coal 
                        producer, exported coal produced by such coal 
                        producer to a foreign country or shipped coal 
                        produced by such coal producer to a possession 
                        of the United States, the export or shipment of 
                        which was other than through an exporter who 
                        has filed a claim for a refund under paragraph 
                        (2),
                            (ii) such coal producer filed a return on 
                        or after October 1, 1990, and on or before the 
                        date of the enactment of this Act, and
                            (iii) such coal producer files a claim for 
                        refund not later than the close of the 30-day 
                        period beginning on the date of the enactment 
                        of this Act,
                then the Secretary of the Treasury shall pay to such 
                coal producer an amount equal to the tax paid under 
                section 4121 of such Code on such coal exported by the 
                coal producer or a party related to such coal producer.
                    (B) Special rules for certain taxpayers.--For 
                purposes of this section--
                            (i) Establishment of export.--If a coal 
                        producer or a party related to a coal producer 
                        has received a judgment described in clause 
                        (iii), such coal producer shall be deemed to 
                        have established the export of coal to a 
                        foreign country or shipment of coal to a 
                        possession of the United States under 
                        subparagraph (A)(i).
                            (ii) Amount of payment.--If a taxpayer 
                        described in clause (i) is entitled to a 
                        payment under subparagraph (A), the amount of 
                        such payment shall be reduced by any amount 
                        awarded under the judgment described in clause 
                        (iii).
                            (iii) Judgment described.--A judgment is 
                        described in this subparagraph if such 
                        judgment--
                                    (I) is made by a court of competent 
                                jurisdiction within the United States,
                                    (II) relates to the 
                                constitutionality of any tax paid on 
                                exported coal under section 4121 of the 
                                Internal Revenue Code of 1986, and
                                    (III) is in favor of the coal 
                                producer or the party related to the 
                                coal producer.
                            (iv) Recapture.--In the case any judgment 
                        described in clause (iii) is overturned, the 
                        coal producer shall pay to the Secretary the 
                        amount of any payment received under 
                        subparagraph (A) unless the coal producer 
                        establishes the export of the coal to a foreign 
                        country or shipment of coal to a possession of 
                        the United States.
            (2) Exporters.--Notwithstanding subsections (a)(1) and (c) 
        of section 6416 and section 6511 of the Internal Revenue Code 
        of 1986, and a judgment described in paragraph (1)(B)(iii) of 
        this subsection, if--
                    (A) an exporter establishes that such exporter 
                exported coal to a foreign country or shipped coal to a 
                possession of the United States, or caused such coal to 
                be so exported or shipped,
                    (B) such exporter filed a return on or after 
                October 1, 1990, and on or before the date of the 
                enactment of this Act, and
                    (C) such exporter files a claim for refund not 
                later than the close of the 30-day period beginning on 
                the date of the enactment of this Act,
        then the Secretary of the Treasury shall pay to such exporter 
        an amount equal to $0.825 per ton of such coal exported by the 
        exporter or caused to be exported by the exporter.
    (b) Limitations.--Subsection (a) shall not apply with respect to 
exported coal if a credit or refund of tax imposed by section 4121 of 
such Code on such coal has been allowed or made to, or if a settlement 
with the Federal Government has been made with and accepted by, the 
coal producer, a party related to such coal producer, or the exporter, 
of such coal, as of the date that the claim is filed under this section 
with respect to such exported coal. For purposes of this subsection, 
the term ``settlement with the Federal Government'' shall not include 
any settlement or stipulation entered into as of the date of the 
enactment of this Act, the terms of which contemplate a judgment 
concerning which any party has reserved the right to file an appeal, or 
has filed an appeal.
    (c) Subsequent Refund Prohibited.--No refund shall be made under 
this section to the extent that a credit or refund of such tax on such 
exported coal has been paid to any person.
    (d) Definitions.--For purposes of this section--
            (1) Coal producer.--The term ``coal producer'' means the 
        person in whom is vested ownership of the coal immediately 
        after the coal is severed from the ground, without regard to 
        the existence of any contractual arrangement for the sale or 
        other disposition of the coal or the payment of any royalties 
        between the producer and third parties. The term includes any 
        person who extracts coal from coal waste refuse piles or from 
        the silt waste product which results from the wet washing (or 
        similar processing) of coal.
            (2) Exporter.--The term ``exporter'' means a person, other 
        than a coal producer, who does not have a contract, fee 
        arrangement, or any other agreement with a producer or seller 
        of such coal to sell or export such coal to a third party on 
        behalf of the producer or seller of such coal and--
                    (A) is indicated in the shipper's export 
                declaration or other documentation as the exporter of 
                record, or
                    (B) actually exported such coal to a foreign 
                country or shipped such coal to a possession of the 
                United States, or caused such coal to be so exported or 
                shipped.
            (3) Related party.--The term ``a party related to such coal 
        producer'' means a person who--
                    (A) is related to such coal producer through any 
                degree of common management, stock ownership, or voting 
                control,
                    (B) is related (within the meaning of section 
                144(a)(3) of such Code) to such coal producer, or
                    (C) has a contract, fee arrangement, or any other 
                agreement with such coal producer to sell such coal to 
                a third party on behalf of such coal producer.
    (e) Timing of Refund.--With respect to any claim for refund filed 
pursuant to this section, the Secretary of the Treasury shall determine 
whether the requirements of this section are met not later than 180 
days after such claim is filed. If the Secretary determines that the 
requirements of this section are met, the claim for refund shall be 
paid not later than 180 days after the Secretary makes such 
determination.
    (f) Interest.--Any refund paid pursuant to this section shall be 
paid by the Secretary of the Treasury with interest from the date of 
overpayment determined by using the overpayment rate and method under 
section 6621 of such Code.
    (g) Denial of Double Benefit.--The payment under subsection (a) 
with respect to any coal shall not exceed--
            (1) in the case of a payment to a coal producer, the amount 
        of tax paid under section 4121 of the Internal Revenue Code of 
        1986 with respect to such coal by such coal producer or a party 
        related to such coal producer, and
            (2) in the case of a payment to an exporter, an amount 
        equal to $0.825 per ton with respect to such coal exported by 
        the exporter or caused to be exported by the exporter.
    (h) Application of Section.--This section applies only to claims on 
coal exported on or after October 1, 1990, through the date of the 
enactment of this Act.
    (i) Standing Not Conferred.--
            (1) Exporters.--With respect to exporters, this section 
        shall not confer standing upon an exporter to commence, or 
        intervene in, any judicial or administrative proceeding 
        concerning a claim for refund by a coal producer of any Federal 
        or State tax, fee, or royalty paid by the coal producer.
            (2) Coal producers.--With respect to coal producers, this 
        section shall not confer standing upon a coal producer to 
        commence, or intervene in, any judicial or administrative 
        proceeding concerning a claim for refund by an exporter of any 
        Federal or State tax, fee, or royalty paid by the producer and 
        alleged to have been passed on to an exporter.

SEC. 1511. EXTENSION OF TEMPORARY INCREASE IN COAL EXCISE TAX.

    Paragraph (2) of section 4121(e) (relating to temporary increase 
termination date) is amended--
            (1) by striking ``January 1, 2014'' in clause (i) and 
        inserting ``December 31, 2017'', and
            (2) by striking ``January 1 after 1981'' in clause (ii) and 
        inserting ``December 31 after 2007''.

SEC. 1512. CARBON AUDIT OF THE TAX CODE.

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

         Subtitle B--Transportation and Domestic Fuel Security

                            PART I--BIOFUELS

SEC. 1521. CREDIT FOR PRODUCTION OF CELLULOSIC BIOMASS ALCOHOL.

    (a) In General.--Subsection (a) of section 40 (relating to alcohol 
used as fuel) is amended by striking ``plus'' at the end of paragraph 
(2), by striking the period at the end of paragraph (3) and inserting 
``, plus'', and by adding at the end the following new paragraph:
            ``(4) the cellulosic alcohol producer credit.''.
    (b) Cellulosic Alcohol Producer Credit.--
            (1) In general.--Subsection (b) of section 40 is amended by 
        redesignating paragraph (5) as paragraph (6) and by inserting 
        after paragraph (4) the following new paragraph:
            ``(5) Cellulosic alcohol producer credit.--
                    ``(A) In general.--The cellulosic alcohol producer 
                credit for the taxable year is an amount equal to the 
                applicable amount for each gallon of qualified 
                cellulosic alcohol production.
                    ``(B) Applicable amount.--For purposes of 
                subparagraph (A), the applicable amount means the 
                excess of--
                            ``(i) $1.01, over
                            ``(ii) the amount of the credit in effect 
                        for alcohol which is ethanol under subsection 
                        (b)(1) (without regard to subsection (b)(3)) at 
                        the time of the qualified cellulosic alcohol 
                        production.
                    ``(C) Limitation.--
                            ``(i) In general.--No credit shall be 
                        allowed to any taxpayer under subparagraph (A) 
                        with respect to any qualified cellulosic 
                        alcohol production during the taxable year in 
                        excess of 60,000,000 gallons.
                            ``(ii) Aggregation rule.--For purposes of 
                        clause (i), all members of the same controlled 
                        group of corporations (within the meaning of 
                        section 267(f)) and all persons under common 
                        control (within the meaning of section 52(b) 
                        but determined by treating an interest of more 
                        than 50 percent as a controlling interest) 
                        shall be treated as 1 person.
                            ``(iii) Partnership, s corporations, and 
                        other pass-thru entities.--In the case of a 
                        partnership, trust, S corporation, or other 
                        pass-thru entity, the limitation contained in 
                        clause (i) shall be applied at the entity level 
                        and at the partner or similar level.
                    ``(D) Qualified cellulosic alcohol production.--For 
                purposes of this section, the term `qualified 
                cellulosic alcohol production' means any cellulosic 
                biomass alcohol which is produced by the taxpayer and 
                which during the taxable year--
                            ``(i) is sold by the taxpayer to another 
                        person--
                                    ``(I) for use by such other person 
                                in the production of a qualified 
                                alcohol mixture in such other person's 
                                trade or business (other than casual 
                                off-farm production),
                                    ``(II) for use by such other person 
                                as a fuel in a trade or business, or
                                    ``(III) who sells such cellulosic 
                                biomass alcohol at retail to another 
                                person and places such cellulosic 
                                biomass alcohol in the fuel tank of 
                                such other person, or
                            ``(ii) is used or sold by the taxpayer for 
                        any purpose described in clause (i).
                The qualified cellulosic alcohol production of any 
                taxpayer for any taxable year shall not include any 
                alcohol which is purchased by the taxpayer and with 
                respect to which such producer increases the proof of 
                the alcohol by additional distillation.
                    ``(E) Cellulosic biomass alcohol.--
                            ``(i) In general.--The term `cellulosic 
                        biomass alcohol' has the meaning given such 
                        term under section 168(l)(3), but does not 
                        include any alcohol with a proof of less than 
                        150.
                            ``(ii) Determination of proof.--The 
                        determination of the proof of any alcohol shall 
                        be made without regard to any added 
                        denaturants.
                    ``(F) Coordination with small ethanol producer 
                credit.--No small ethanol producer credit shall be 
                allowed with respect to any qualified cellulosic 
                alcohol production if credit is determined with respect 
                to such production under this paragraph.
                    ``(G) Allocation of cellulosic producer credit to 
                patrons of cooperative.--Rules similar to the rules 
                under subsection (g)(6) shall apply for purposes of 
                this paragraph.
                    ``(H) Application of paragraph.--This paragraph 
                shall apply with respect to qualified cellulosic 
                alcohol production after December 31, 2007, and before 
                January 1, 2014.''.
            (2) Termination date not to apply.--Subsection (e) of 
        section 40 (relating to termination) is amended--
                    (A) by inserting ``or subsection (b)(5)(H)'' after 
                ``by reason of paragraph (1)'' in paragraph (2), and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Exception for cellulosic alcohol producer credit.--
        Paragraph (1) shall not apply to the portion of the credit 
        allowed under this section by reason of subsection (a)(4).''.
    (c) Alcohol Not Used as a Fuel, etc.--
            (1) In general.--Paragraph (3) of section 40(d) is amended 
        by redesignating subparagraph (D) as subparagraph (E) and by 
        inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) Cellulosic alcohol producer credit.--If--
                            ``(i) any credit is determined under 
                        subsection (a)(4), and
                            ``(ii) any person does not use such fuel 
                        for a purpose described in subsection 
                        (b)(5)(D),
                then there is hereby imposed on such person a tax equal 
                to the applicable amount for each gallon of such 
                cellulosic biomass alcohol.''.
            (2) Conforming amendments.--
                    (A) Subparagraph (C) of section 40(d)(3) is amended 
                by striking ``producer'' in the heading and inserting 
                ``small ethanol producer''.
                    (B) Subparagraph (E) of section 40(d)(3), as 
                redesignated by paragraph (1), is amended by striking 
                ``or (C)'' and inserting ``(C), or (D)''.
    (d) Limitation to Cellulosic Alcohol With Connection to the United 
States.--Subsection (d) of section 40, as amended by this Act, is 
amended by adding at the end the following new paragraph:
            ``(7) Limitation to cellulosic alcohol with connection to 
        the united states.--No cellulosic alcohol producer credit shall 
        be determined under subsection (a) with respect to any alcohol 
        unless such alcohol is produced in the United States.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to fuel produced after December 31, 2007.

SEC. 1522. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOMASS ALCOHOL 
              FUEL PLANT PROPERTY.

    (a) In General.--Paragraph (3) of section 168(l) (relating to 
special allowance for cellulosic biomass ethanol plant property) is 
amended to read as follows:
            ``(3) Cellulosic biomass alcohol.--For purposes of this 
        subsection, the term `cellulosic biomass alcohol' means any 
        alcohol produced from any lignocellulosic or hemicellulosic 
        matter that is available on a renewable or recurring basis.''.
    (b) Conforming Amendments.--
            (1) Subsection (l) of section 168 is amended by striking 
        ``cellulosic biomass ethanol'' each place it appears and 
        inserting ``cellulosic biomass alcohol''.
            (2) The heading of section 168(l) is amended by striking 
        ``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic 
        Biomass Alcohol''.
            (3) The heading of paragraph (2) of section 168(l) is 
        amended by striking ``cellulosic biomass ethanol'' and 
        inserting ``cellulosic biomass alcohol''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 1523. MODIFICATION OF ALCOHOL CREDIT.

    (a) Income Tax Credit.--Subsection (h) of section 40 (relating to 
reduced credit for ethanol blenders) is amended by adding at the end 
the following new paragraph:
            ``(3) Reduced amount after sale of 7,500,000,000 gallons.--
                    ``(A) In general.--In the case of any calendar year 
                beginning after the calendar year described in 
                subparagraph (B), the last row in the table in 
                paragraph (2) shall be applied by substituting `46 
                cents' for `51 cents'.
                    ``(B) Calendar year described.--The calendar year 
                described in this subparagraph is the first calendar 
                year beginning after 2007 during which 7,500,000,000 
                gallons of ethanol (including cellulosic ethanol) have 
                been produced in or imported into the United States, as 
                certified by the Secretary, in consultation with the 
                Administrator of the Environmental Protection 
                Agency.''.
    (b) Excise Tax Credit.--
            (1) In general.--Paragraph (2) of section 6426(b) (relating 
        to alcohol fuel mixture credit) is amended by adding at the end 
        the following new subparagraph:
                    ``(C) Reduced amount after sale of 7,500,000,000 
                gallons.--In the case of any alcohol fuel mixture 
                produced in a calendar year beginning after the 
                calendar year described in section 40(h)(3)(B), 
                subparagraph (A) shall be applied by substituting `46 
                cents' for `51 cents'.''.
            (2) Conforming amendment.--Subparagraph (A) of section 
        6426(b)(2) is amended by striking ``subparagraph (B)'' and 
        inserting ``subparagraphs (B) and (C)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 1524. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND 
              RENEWABLE DIESEL.

    (a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are 
each amended by striking ``December 31, 2008'' and inserting ``December 
31, 2010''.
    (b) Uniform Treatment of Diesel Produced From Biomass.--Paragraph 
(3) of section 40A(f) is amended--
            (1) by striking ``using a thermal depolymerization 
        process'', and
            (2) by striking ``or D396'' in subparagraph (B) and 
        inserting ``or other equivalent standard approved by the 
        Secretary for fuels to be used in diesel-powered highway 
        vehicles''.
    (c) Eligibility of Certain Aviation Fuel.--Paragraph (3) of section 
40A(f) (defining renewable diesel) is amended by adding at the end the 
following new flush sentence:
        ``The term `renewable diesel' also means fuel derived from 
        biomass which meets the requirements of a Department of Defense 
        specification for military jet fuel or an American Society of 
        Testing and Materials specification for aviation turbine 
        fuel.''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel produced, 
        and sold or used, after the date of the enactment of this Act.
            (2) Uniform treatment of diesel produced from biomass.--The 
        amendments made by subsection (b) shall apply to fuel produced, 
        and sold or used, after the date which is 30 days after the 
        date of the enactment of this Act.

SEC. 1525. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL CREDIT.

    (a) Coproduction With Petroleum Feedstock.--
            (1) In general.--Paragraph (3) of section 40A(f) (defining 
        renewable diesel), as amended by this Act, is amended by adding 
        at the end the following sentence: ``Such term does not include 
        any fuel derived from coprocessing biomass with a feedstock 
        which is not biomass. For purposes of this paragraph, the term 
        `biomass' has the meaning given such term by section 
        45K(c)(3).''
            (2) Conforming amendment.--Paragraph (3) of section 40A(f) 
        is amended by striking ``(as defined in section 45K(c)(3))''.
    (b) Clarification of Eligibility for Alternative Fuel Credit.--
            (1) In general.--Subparagraph (F) of section 6426(d)(2) is 
        amended by striking ``hydrocarbons'' and inserting ``fuel''.
            (2) Conforming amendment.--Section 6426 is amended by 
        adding at the end the following new subsection:
    ``(h) Denial of Double Benefit.--No credit shall be determined 
under subsection (d) or (e) with respect to any fuel with respect to 
which credit may be determined under subsection (b) or (c) or under 
section 40 or 40A.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel produced, 
        and sold or used, after December 31, 2007.
            (2) Clarification of eligibility for alternative fuel 
        credit.--The amendment made by subsection (b) shall take effect 
        as if included in section 11113 of the Safe, Accountable, 
        Flexible, Efficient Transportation Equity Act: A Legacy for 
        Users.

SEC. 1526. PROVISIONS CLARIFYING TREATMENT OF FUELS WITH NO NEXUS TO 
              THE UNITED STATES.

    (a) Alcohol Fuels Credit.--Subsection (d) of section 40 is amended 
by adding at the end the following new paragraph:
            ``(6) Limitation to alcohol with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any alcohol which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
    (b) Biodiesel Fuels Credit.--Subsection (d) of section 40A is 
amended by adding at the end the following new paragraph:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any biodiesel which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
    (c) Excise Tax Credit.--
            (1) In general.--Section 6426, as amended by this Act, is 
        amended by adding at the end the following new subsection:
    ``(i) Limitation to Fuels With Connection to the United States.--
            ``(1) Alcohol.--No credit shall be determined under this 
        section with respect to any alcohol which is produced outside 
        the United States for use as a fuel outside the United States.
            ``(2) Biodiesel and alternative fuels.--No credit shall be 
        determined under this section with respect to any biodiesel or 
        alternative fuel which is produced outside the United States 
        for use as a fuel outside the United States.
For purposes of this subsection, the term `United States' includes any 
possession of the United States.''.
            (2) Conforming amendment.--Subsection (e) of section 6427 
        is amended by redesignating paragraph (5) as paragraph (6) and 
        by inserting after paragraph (4) the following new paragraph:
            ``(5) Limitation to fuels with connection to the united 
        states.--No amount shall be payable under paragraph (1) or (2) 
        with respect to any mixture or alternative fuel if credit is 
        not allowed with respect to such mixture or alternative fuel by 
        reason of section 6426(i).''.
    (d) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall take 
        effect as if included in section 301 of the American Jobs 
        Creation Act of 2004.
            (2) Alternative fuel credits.--So much of the amendments 
        made by this section as relate to the alternative fuel credit 
        or the alternative fuel mixture credit shall take effect as if 
        included in section 11113 of the Safe, Accountable, Flexible, 
        Efficient Transportation Equity Act: A Legacy for Users.
            (3) Renewable diesel.--So much of the amendments made by 
        this section as relate to renewable diesel shall take effect as 
        if included in section 1346 of the Energy Policy Act of 2005.

SEC. 1527. COMPREHENSIVE STUDY OF BIOFUELS.

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

              PART II--ADVANCED TECHNOLOGY MOTOR VEHICLES

SEC. 1528. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
              VEHICLES.

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

``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of the credit amounts determined under subsection (b) 
with respect to each new qualified plug-in electric drive motor vehicle 
placed in service by the taxpayer during the taxable year.
    ``(b) Per Vehicle Dollar Limitation.--
            ``(1) In general.--The amount determined under this 
        subsection with respect to any new qualified plug-in electric 
        drive motor vehicle is the sum of the amounts determined under 
        paragraphs (2) and (3) with respect to such vehicle.
            ``(2) Base amount.--The amount determined under this 
        paragraph is $3,000.
            ``(3) Battery capacity.--In the case of a vehicle which 
        draws propulsion energy from a battery with not less than 5 
        kilowatt hours of capacity, the amount determined under this 
        paragraph is $200, plus $200 for each kilowatt hour of capacity 
        in excess of 5 kilowatt hours. The amount determined under this 
        paragraph shall not exceed $2,000.
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 23 and 25D) and section 27 for the 
                        taxable year.
    ``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--For 
purposes of this section--
            ``(1) In general.--The term `new qualified plug-in electric 
        drive motor vehicle' means a motor vehicle (as defined in 
        section 30(c)(2))--
                    ``(A) the original use of which commences with the 
                taxpayer,
                    ``(B) which is acquired for use or lease by the 
                taxpayer and not for resale,
                    ``(C) which is made by a manufacturer,
                    ``(D) which has a gross vehicle weight rating of 
                less than 14,000 pounds,
                    ``(E) which has received a certificate of 
                conformity under the Clean Air Act and meets or exceeds 
                the Bin 5 Tier II emission standard established in 
                regulations prescribed by the Administrator of the 
                Environmental Protection Agency under section 202(i) of 
                the Clean Air Act for that make and model year vehicle, 
                and
                    ``(F) which is propelled to a significant extent by 
                an electric motor which draws electricity from a 
                battery which--
                            ``(i) has a capacity of not less than 4 
                        kilowatt hours, and
                            ``(ii) is capable of being recharged from 
                        an external source of electricity.
            ``(2) Exception.--The term `new qualified plug-in electric 
        drive motor vehicle' shall not include any vehicle which is not 
        a passenger automobile or light truck if such vehicle has a 
        gross vehicle weight rating of less than 8,500 pounds.
            ``(3) Other terms.--The terms `passenger automobile', 
        `light truck', and `manufacturer' have the meanings given such 
        terms in regulations prescribed by the Administrator of the 
        Environmental Protection Agency for purposes of the 
        administration of title II of the Clean Air Act (42 U.S.C. 7521 
        et seq.).
            ``(4) Battery capacity.--The term `capacity' means, with 
        respect to any battery, the quantity of electricity which the 
        battery is capable of storing, expressed in kilowatt hours, as 
        measured from a 100 percent state of charge to a 0 percent 
        state of charge.
    ``(e) Limitation on Number of New Qualified Plug-in Electric Drive 
Motor Vehicles Eligible for Credit.--
            ``(1) In general.--In the case of a new qualified plug-in 
        electric drive motor vehicle sold during the phaseout period, 
        only the applicable percentage of the credit otherwise 
        allowable under subsection (a) shall be allowed.
            ``(2) Phaseout period.--For purposes of this subsection, 
        the phaseout period is the period beginning with the second 
        calendar quarter following the calendar quarter which includes 
        the first date on which the number of new qualified plug-in 
        electric drive motor vehicles manufactured by the manufacturer 
        of the vehicle referred to in paragraph (1) sold for use in the 
        United States after the date of the enactment of this section, 
        is at least 60,000.
            ``(3) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage is--
                    ``(A) 50 percent for the first 2 calendar quarters 
                of the phaseout period,
                    ``(B) 25 percent for the 3d and 4th calendar 
                quarters of the phaseout period, and
                    ``(C) 0 percent for each calendar quarter 
                thereafter.
            ``(4) Controlled groups.--Rules similar to the rules of 
        section 30B(f)(4) shall apply for purposes of this subsection.
    ``(f) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (c)).
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(3) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(4) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
            ``(5) Property used by tax-exempt entity; interaction with 
        air quality and motor vehicle safety standards.--Rules similar 
        to the rules of paragraphs (6) and (10) of section 30B(h) shall 
        apply for purposes of this section.''.
    (b) Coordination With Alternative Motor Vehicle Credit.--Section 
30B(d)(3) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Exclusion of plug-in vehicles.--Any vehicle 
                with respect to which a credit is allowable under 
                section 30D (determined without regard to subsection 
                (c) thereof) shall not be taken into account under this 
                section.''.
    (c) Credit Made Part of General Business Credit.--Section 38(b), as 
amended by this Act, is amended--
            (1) by striking ``and'' each place it appears at the end of 
        any paragraph,
            (2) by striking ``plus'' each place it appears at the end 
        of any paragraph,
            (3) by striking the period at the end of paragraph (31) and 
        inserting ``, plus'', and
            (4) by adding at the end the following new paragraph:
            ``(32) the portion of the new qualified plug-in electric 
        drive motor vehicle credit to which section 30D(c)(1) 
        applies.''.
    (d) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B), as amended by this Act, is 
        amended by striking ``and 25D'' and inserting ``25D, and 30D''.
            (B) Section 25(e)(1)(C)(ii) is amended by inserting 
        ``30D,'' after ``25D,''.
            (C) Section 25B(g)(2), as amended by this Act, is amended 
        by striking ``and 25D'' and inserting ``, 25D, and 30D''.
            (D) Section 26(a)(1), as amended by this Act, is amended by 
        striking ``and 25D'' and inserting ``25D, and 30D''.
            (E) Section 1400C(d)(2) is amended by striking ``and 25D'' 
        and inserting ``25D, and 30D''.
            (2) Section 1016(a) is amended by striking ``and'' at the 
        end of paragraph (36), by striking the period at the end of 
        paragraph (37) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(38) to the extent provided in section 30D(f)(1).''.
            (3) Section 6501(m) is amended by inserting ``30D(f)(4),'' 
        after ``30C(e)(5),''.
            (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

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

SEC. 1529. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS 
              AND ADVANCED INSULATION.

    (a) In General.--Section 4053 (relating to exemptions) is amended 
by adding at the end the following new paragraphs:
            ``(9) Idling reduction device.--Any device or system of 
        devices which--
                    ``(A) is designed to provide to a vehicle those 
                services (such as heat, air conditioning, or 
                electricity) that would otherwise require the operation 
                of the main drive engine while the vehicle is 
                temporarily parked or remains stationary using either--
                            ``(i) an all electric unit, such as a 
                        battery powered unit or from grid-supplied 
                        electricity, or
                            ``(ii) a dual fuel unit powered by diesel 
                        or other fuels, and capable of providing such 
                        services from grid-supplied electricity or on-
                        truck batteries alone, and
                    ``(B) is certified by the Secretary of Energy, in 
                consultation with the Administrator of the 
                Environmental Protection Agency and the Secretary of 
                Transportation, to reduce long-duration idling of such 
                vehicle at a motor vehicle rest stop or other location 
                where such vehicles are temporarily parked or remain 
                stationary.
        For purposes of subparagraph (B), the term `long-duration 
        idling' means the operation of a main drive engine, for a 
        period greater than 15 consecutive minutes, where the main 
        drive engine is not engaged in gear. Such term does not apply 
        to routine stoppages associated with traffic movement or 
        congestion.
            ``(10) Advanced insulation.--Any insulation that has an R 
        value of not less than R35 per inch.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales or installations after December 31, 2007.

               PART III--OTHER TRANSPORTATION PROVISIONS

SEC. 1530. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.

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

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

    ``(a) In General.--In the case of a New York Liberty Zone 
governmental unit, there shall be allowed as a credit against any taxes 
imposed for any payroll period by section 3402 for which such 
governmental unit is liable under section 3403 an amount equal to so 
much of the portion of the qualifying project expenditure amount 
allocated under subsection (b)(3) to such governmental unit for the 
calendar year as is allocated by such governmental unit to such period 
under subsection (b)(4).
    ``(b) Qualifying Project Expenditure Amount.--For purposes of this 
section--
            ``(1) In general.--The term `qualifying project expenditure 
        amount' means, with respect to any calendar year, the sum of--
                    ``(A) the total expenditures paid or incurred 
                during such calendar year by all New York Liberty Zone 
                governmental units and the Port Authority of New York 
                and New Jersey for any portion of qualifying projects 
                located wholly within the City of New York, New York, 
                and
                    ``(B) any such expenditures--
                            ``(i) paid or incurred in any preceding 
                        calendar year which begins after the date of 
                        enactment of this section, and
                            ``(ii) not previously allocated under 
                        paragraph (3).
            ``(2) Qualifying project.--The term `qualifying project' 
        means any transportation infrastructure project, including 
        highways, mass transit systems, railroads, airports, ports, and 
        waterways, in or connecting with the New York Liberty Zone (as 
        defined in section 1400K(h)), which is designated as a 
        qualifying project under this section jointly by the Governor 
        of the State of New York and the Mayor of the City of New York, 
        New York.
            ``(3) General allocation.--
                    ``(A) In general.--The Governor of the State of New 
                York and the Mayor of the City of New York, New York, 
                shall jointly allocate to each New York Liberty Zone 
                governmental unit the portion of the qualifying project 
                expenditure amount which may be taken into account by 
                such governmental unit under subsection (a) for any 
                calendar year in the credit period.
                    ``(B) Aggregate limit.--The aggregate amount which 
                may be allocated under subparagraph (A) for all 
                calendar years in the credit period shall not exceed 
                $2,000,000,000.
                    ``(C) Annual limit.--The aggregate amount which may 
                be allocated under subparagraph (A) for any calendar 
                year in the credit period shall not exceed the sum of--
                            ``(i) $115,000,000 ($425,000,000 in the 
                        case of the last 2 years in the credit period), 
                        plus
                            ``(ii) the aggregate amount authorized to 
                        be allocated under this paragraph for all 
                        preceding calendar years in the credit period 
                        which was not so allocated.
                    ``(D) Unallocated amounts at end of credit 
                period.--If, as of the close of the credit period, the 
                amount under subparagraph (B) exceeds the aggregate 
                amount allocated under subparagraph (A) for all 
                calendar years in the credit period, the Governor of 
                the State of New York and the Mayor of the City of New 
                York, New York, may jointly allocate to New York 
                Liberty Zone governmental units for any calendar year 
                in the 5-year period following the credit period an 
                amount equal to--
                            ``(i) the lesser of--
                                    ``(I) such excess, or
                                    ``(II) the qualifying project 
                                expenditure amount for such calendar 
                                year, reduced by
                            ``(ii) the aggregate amount allocated under 
                        this subparagraph for all preceding calendar 
                        years.
            ``(4) Allocation to payroll periods.--Each New York Liberty 
        Zone governmental unit which has been allocated a portion of 
        the qualifying project expenditure amount under paragraph (3) 
        for a calendar year may allocate such portion to payroll 
        periods beginning in such calendar year as such governmental 
        unit determines appropriate.
    ``(c) Carryover of Unused Allocations.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        the amount allocated under subsection (b)(3) to a New York 
        Liberty Zone governmental unit for any calendar year exceeds 
        the aggregate taxes imposed by section 3402 for which such 
        governmental unit is liable under section 3403 for periods 
        beginning in such year, such excess shall be carried to the 
        succeeding calendar year and added to the allocation of such 
        governmental unit for such succeeding calendar year.
            ``(2) Reallocation.--If a New York Liberty Zone 
        governmental unit does not use an amount allocated to it under 
        subsection (b)(3) within the time prescribed by the Governor of 
        the State of New York and the Mayor of the City of New York, 
        New York, then such amount shall after such time be treated for 
        purposes of subsection (b)(3) in the same manner as if it had 
        never been allocated.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Credit period.--The term `credit period' means the 
        12-year period beginning on January 1, 2008.
            ``(2) New york liberty zone governmental unit.--The term 
        `New York Liberty Zone governmental unit' means--
                    ``(A) the State of New York,
                    ``(B) the City of New York, New York, and
                    ``(C) any agency or instrumentality of such State 
                or City.
            ``(3) Treatment of funds.--Any expenditure for a qualifying 
        project taken into account for purposes of the credit under 
        this section shall be considered State and local funds for the 
        purpose of any Federal program.
            ``(4) Treatment of credit amounts for purposes of 
        withholding taxes.--For purposes of this title, a New York 
        Liberty Zone governmental unit shall be treated as having paid 
        to the Secretary, on the day on which wages are paid to 
        employees, an amount equal to the amount of the credit allowed 
        to such entity under subsection (a) with respect to such wages, 
        but only if such governmental unit deducts and withholds wages 
        for such payroll period under section 3401 (relating to wage 
        withholding).
    ``(e) Reporting.--The Governor of the State of New York and the 
Mayor of the City of New York, New York, shall jointly submit to the 
Secretary an annual report--
            ``(1) which certifies--
                    ``(A) the qualifying project expenditure amount for 
                the calendar year, and
                    ``(B) the amount allocated to each New York Liberty 
                Zone governmental unit under subsection (b)(3) for the 
                calendar year, and
            ``(2) includes such other information as the Secretary may 
        require to carry out this section.
    ``(f) Guidance.--The Secretary may prescribe such guidance as may 
be necessary or appropriate to ensure compliance with the purposes of 
this section.''.
    (b) Termination of Special Allowance and Expensing.--Subparagraph 
(A) of section 1400K(b)(2), as redesignated by subsection (a), is 
amended by striking the parenthetical therein and inserting ``(in the 
case of nonresidential real property and residential rental property, 
the date of the enactment of the Clean Renewable Energy and 
Conservation Tax Act of 2007 or, if acquired pursuant to a binding 
contract in effect on such enactment date, December 31, 2009)''.
    (c) Conforming Amendments.--
            (1) Section 38(c)(3)(B) is amended by striking ``section 
        1400L(a)'' and inserting ``section 1400K(a)''.
            (2) Section 168(k)(2)(D)(ii) is amended by striking 
        ``section 1400L(c)(2)'' and inserting ``section 1400K(c)(2)''.
            (3) The table of sections for part I of subchapter Y of 
        chapter 1 is amended by redesignating the item relating to 
        section 1400L as an item relating to section 1400K and by 
        inserting after such item the following new item:

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

SEC. 1531. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE 
              COMMUTERS.

    (a) In General.--Paragraph (1) of section 132(f) of the Internal 
Revenue Code of 1986 (relating to general rule for qualified 
transportation fringe) is amended by adding at the end the following:
                    ``(D) Any qualified bicycle commuting 
                reimbursement.''.
    (b) Limitation on Exclusion.--Paragraph (2) of section 132(f) of 
such Code is amended by striking ``and'' at the end of subparagraph 
(A), by striking the period at the end of subparagraph (B) and 
inserting ``, and'', and by adding at the end the following new 
subparagraph:
                    ``(C) the applicable annual limitation in the case 
                of any qualified bicycle commuting reimbursement.''.
    (c) Definitions.--Paragraph (5) of section 132(f) of such Code 
(relating to definitions) is amended by adding at the end the 
following:
                    ``(F) Definitions related to bicycle commuting 
                reimbursement.--
                            ``(i) Qualified bicycle commuting 
                        reimbursement.--The term `qualified bicycle 
                        commuting reimbursement' means, with respect to 
                        any calendar year, any employer reimbursement 
                        during the 15-month period beginning with the 
                        first day of such calendar year for reasonable 
                        expenses incurred by the employee during such 
                        calendar year for the purchase of a bicycle and 
                        bicycle improvements, repair, and storage, if 
                        such bicycle is regularly used for travel 
                        between the employee's residence and place of 
                        employment.
                            ``(ii) Applicable annual limitation.--The 
                        term `applicable annual limitation' means, with 
                        respect to any employee for any calendar year, 
                        the product of $20 multiplied by the number of 
                        qualified bicycle commuting months during such 
                        year.
                            ``(iii) Qualified bicycle commuting 
                        month.--The term `qualified bicycle commuting 
                        month' means, with respect to any employee, any 
                        month during which such employee--
                                    ``(I) regularly uses the bicycle 
                                for a substantial portion of the travel 
                                between the employee's residence and 
                                place of employment, and
                                    ``(II) does not receive any benefit 
                                described in subparagraph (A), (B), or 
                                (C) of paragraph (1).''.
    (d) Constructive Receipt of Benefit.--Paragraph (4) of section 
132(f) is amended by inserting ``(other than a qualified bicycle 
commuting reimbursement)'' after ``qualified transportation fringe''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

             Subtitle C--Energy Conservation and Efficiency

                 PART I--CONSERVATION TAX CREDIT BONDS

SEC. 1541. QUALIFIED ENERGY CONSERVATION BONDS.

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

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

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

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

SEC. 1542. QUALIFIED FORESTRY CONSERVATION BONDS.

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

``SEC. 54D. QUALIFIED FORESTRY CONSERVATION BONDS.

    ``(a) Qualified Forestry Conservation Bond.--For purposes of this 
subchapter, the term `qualified forestry conservation bond' means any 
bond issued as part of an issue if--
            ``(1) 100 percent of the available proceeds of such issue 
        are to be used for one or more qualified forestry conservation 
        projects,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (d).
    ``(c) National Limitation on Amount of Bonds Designated.--There is 
a national qualified forestry conservation bond limitation of 
$500,000,000.
    ``(d) Allocations.--
            ``(1) In general.--The Secretary shall make allocations of 
        the amount of the national qualified forestry conservation bond 
        limitation described in subsection (c) among qualified forestry 
        conservation projects in such manner as the Secretary 
        determines appropriate so as to ensure that all of such 
        limitation is allocated before the date which is 24 months 
        after the date of the enactment of this section.
            ``(2) Solicitation of applications.--The Secretary shall 
        solicit applications for allocations of the national qualified 
        forestry conservation bond limitation described in subsection 
        (c) not later than 90 days after the date of the enactment of 
        this section.
    ``(e) Qualified Forestry Conservation Project.--For purposes of 
this section, the term `qualified forestry conservation project' means 
the acquisition by a State or 501(c)(3) organization (as defined in 
section 150(a)(4)) from an unrelated person of forest and forest land 
that meets the following qualifications:
            ``(1) Some portion of the land acquired must be adjacent to 
        United States Forest Service Land.
            ``(2) At least half of the land acquired must be 
        transferred to the United States Forest Service at no net cost 
        to the United States and not more than half of the land 
        acquired may either remain with or be donated to a State.
            ``(3) All of the land must be subject to a native fish 
        habitat conservation plan approved by the United States Fish 
        and Wildlife Service.
            ``(4) The amount of acreage acquired must be at least 
        40,000 acres.
    ``(f) Qualified Issuer.--For purposes of this section, the term 
`qualified issuer' means a State or 501(c)(3) organization (as defined 
in section 150(a)(4)).
    ``(g) Special Arbitrage Rule.--In the case of any qualified 
forestry conservation bond issued as part of an issue, section 
54A(d)(4)(C) shall be applied to such issue without regard to clause 
(i).''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d), as added by this 
        title, is amended to read as follows:
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means--
                    ``(A) a new clean renewable energy bond,
                    ``(B) a qualified energy conservation bond, or
                    ``(C) a qualified forestry conservation bond,
        which is part of an issue that meets requirements of paragraphs 
        (2), (3), (4), and (5).''.
            (2) Subparagraph (C) of section 54A(d)(2), as added by this 
        title, is amended to read as follows:
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means--
                            ``(i) in the case of a new clean renewable 
                        energy bond, a purpose specified in section 
                        54B(a)(1),
                            ``(ii) in the case of a qualified energy 
                        conservation bond, a purpose specified in 
                        section 54C(a)(1), and
                            ``(iii) in the case of a qualified forestry 
                        conservation bond, a purpose specified in 
                        section 54D(a)(1).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1, as amended by this title, is amended 
        by adding at the end the following new item:

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

                          PART II--EFFICIENCY

SEC. 1543. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT EXISTING 
              HOMES CREDIT.

    (a) Extension of Credit.--Section 25C(g) (relating to termination) 
is amended by striking ``December 31, 2007'' and inserting ``December 
31, 2008''.
    (b) Qualified Biomass Fuel Property.--
            (1) In general.--Section 25C(d)(3) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (D),
                    (B) by striking the period at the end of 
                subparagraph (E) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) a stove which uses the burning of biomass 
                fuel to heat a dwelling unit located in the United 
                States and used as a residence by the taxpayer, or to 
                heat water for use in such a dwelling unit, and which 
                has a thermal efficiency rating of at least 75 
                percent.''.
            (2) Biomass fuel.--Section 25C(d) (relating to residential 
        energy property expenditures) is amended by adding at the end 
        the following new paragraph:
            ``(6) Biomass fuel.--The term `biomass fuel' means any 
        plant-derived fuel available on a renewable or recurring basis, 
        including agricultural crops and trees, wood and wood waste and 
        residues (including wood pellets), plants (including aquatic 
        plants), grasses, residues, and fibers.''.
    (c) Effective Date.--The amendments made this section shall apply 
to expenditures made after December 31, 2007.

SEC. 1544. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS DEDUCTION.

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

SEC. 1545. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR 
              APPLIANCES PRODUCED AFTER 2007.

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

SEC. 1546. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
              QUALIFIED ENERGY MANAGEMENT DEVICES.

    (a) In General.--Section 168(e)(3)(C) (relating to 7-year 
property), as amended by this Act, is amended by striking ``and'' at 
the end of clause (v), by redesignating clause (vi) as clause (vii), 
and by inserting after clause (v) the following new clause:
                            ``(vi) any qualified energy management 
                        device, and''.
    (b) Definition of Qualified Energy Management Device.--Section 
168(i) (relating to definitions and special rules) is amended by 
inserting at the end the following new paragraph:
            ``(18) Qualified energy management device.--
                    ``(A) In general.--The term `qualified energy 
                management device' means any energy management device 
                which is installed on real property of a customer of 
                the taxpayer and is placed in service by a taxpayer 
                who--
                            ``(i) is a supplier of electric energy or a 
                        provider of electric energy services, and
                            ``(ii) provides all commercial and 
                        residential customers of such supplier or 
                        provider with net metering upon the request of 
                        such customer.
                    ``(B) Energy management device.--For purposes of 
                subparagraph (A), the term `energy management device' 
                means any time-based meter and related communication 
                equipment which is capable of being used by the 
                taxpayer as part of a system that--
                            ``(i) measures and records electricity 
                        usage data on a time-differentiated basis in at 
                        least 24 separate time segments per day,
                            ``(ii) provides for the exchange of 
                        information between supplier or provider and 
                        the customer's energy management device in 
                        support of time-based rates or other forms of 
                        demand response, and
                            ``(iii) provides data to such supplier or 
                        provider so that the supplier or provider can 
                        provide energy usage information to customers 
                        electronically.
                    ``(C) Net metering.--For purposes of subparagraph 
                (A), the term `net metering' means allowing customers a 
                credit for providing electricity to the supplier or 
                provider.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2007.

                      Subtitle D--Other Provisions

                      PART I--FORESTRY PROVISIONS

SEC. 1551. DEDUCTION FOR QUALIFIED TIMBER GAIN.

    (a) In General.--Part I of subchapter P of chapter 1 is amended by 
adding at the end the following new section:

``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.

    ``(a) In General.--In the case of a taxpayer which elects the 
application of this section for a taxable year, there shall be allowed 
a deduction against gross income in an amount equal to 60 percent of 
the lesser of--
            ``(1) the taxpayer's qualified timber gain for such year, 
        or
            ``(2) the taxpayer's net capital gain for such year.
    ``(b) Qualified Timber Gain.--For purposes of this section, the 
term `qualified timber gain' means, with respect to any taxpayer for 
any taxable year, the excess (if any) of--
            ``(1) the sum of the taxpayer's gains described in 
        subsections (a) and (b) of section 631 for such year, over
            ``(2) the sum of the taxpayer's losses described in such 
        subsections for such year.
    ``(c) Special Rules for Pass-Thru Entities.--
            ``(1) In the case of any qualified timber gain of a pass-
        thru entity (as defined in section 1(h)(10)) other than a real 
        estate investment trust, the election under this section shall 
        be made separately by each taxpayer subject to tax on such 
        gain.
            ``(2) In the case of any qualified timber gain of a real 
        estate investment trust, the election under this section shall 
        be made by the real estate investment trust.
    ``(d) Election.--An election under this section may be made only 
with respect to the first taxable year beginning after the date of the 
enactment of this section.''.
    (b) Coordination With Maximum Capital Gains Rates.--
            (1) Taxpayers other than corporations.--Paragraph (2) of 
        section 1(h) is amended to read as follows:
            ``(2) Reduction of net capital gain.--For purposes of this 
        subsection, the net capital gain for any taxable year shall be 
        reduced (but not below zero) by the sum of--
                    ``(A) the amount which the taxpayer takes into 
                account as investment income under section 
                163(d)(4)(B)(iii), and
                    ``(B) in the case of a taxable year with respect to 
                which an election is in effect under section 1203, the 
                taxpayer's qualified timber gain (as defined in section 
                1203(b)).''.
            (2) Corporations.--Section 1201 is amended by redesignating 
        subsection (b) as subsection (c) and inserting after subsection 
        (a) the following new subsection:
    ``(b) Qualified Timber Gain Not Taken Into Account.--For purposes 
of this section, in the case of a corporation with respect to which an 
election is in effect under section 1203, the net capital gain for any 
taxable year shall be reduced (but not below zero) by the corporation's 
qualified timber gain (as defined in section 1203(b)).''.
    (c) Deduction Allowed Whether or Not Individual Itemizes Other 
Deductions.--Subsection (a) of section 62 is amended by inserting 
before the last sentence the following new paragraph:
            ``(22) Qualified timber gains.--The deduction allowed by 
        section 1203.''.
    (d) Deduction Allowed in Computing Adjusted Current Earnings.--
Subparagraph (C) of section 56(g)(4) is amended by adding at the end 
the following new clause:
                            ``(vii) Deduction for qualified timber 
                        gain.--Clause (i) shall not apply to any 
                        deduction allowed under section 1203.''.
    (e) Deduction Allowed in Computing Taxable Income of Electing Small 
Business Trusts.--Subparagraph (C) of section 641(c)(2) is amended by 
inserting after clause (iv) the following new clause:
                            ``(v) The deduction allowed under section 
                        1203.''.
    (f) Treatment of Qualified Timber Gain of Real Estate Investment 
Trusts.--Paragraph (3) of section 857(b) is amended by inserting after 
subparagraph (F) the following new subparagraph:
                    ``(G) Treatment of qualified timber gain.--For 
                purposes of this part, in the case of a real estate 
                investment trust with respect to which an election is 
                in effect under section 1203--
                            ``(i) Reduction of net capital gain.--The 
                        net capital gain of the real estate investment 
                        trust for any taxable year shall be reduced 
                        (but not below zero) by the real estate 
                        investment trust's qualified timber gain (as 
                        defined in section 1203(b)).
                            ``(ii) Adjustment to shareholder's basis 
                        attributable to deduction for qualified timber 
                        gains.--
                                    ``(I) In general.--The adjusted 
                                basis of shares in the hands of the 
                                shareholder shall be increased by the 
                                amount of the deduction allowable under 
                                section 1203(a) as provided in 
                                subclauses (II) and (III).
                                    ``(II) Allocation of basis increase 
                                for distributions made during taxable 
                                year.--For any taxable year of a real 
                                estate investment trust for which an 
                                election is in effect under section 
                                1203, in the case of a distribution 
                                made with respect to shares during such 
                                taxable year of amounts attributable to 
                                the deduction allowable under section 
                                1203(a), the adjusted basis of such 
                                shares shall be increased by the amount 
                                of such distributions.
                                    ``(III) Allocation of excess.--If 
                                the deduction allowable under section 
                                1203(a) for a taxable year exceeds the 
                                amount of distributions described in 
                                subclause (II), the excess shall be 
                                allocated to every shareholder of the 
                                real estate investment trust at the 
                                close of the trust's taxable year in 
                                the same manner as if a distribution of 
                                such excess were made with respect to 
                                such shares.
                                    ``(IV) Designations.--To the extent 
                                provided in regulations, a real estate 
                                investment trust shall designate the 
                                amounts described in subclauses (II) 
                                and (III) in a manner similar to the 
                                designations provided with respect to 
                                capital gains described in 
                                subparagraphs (C) and (D).
                                    ``(V) Definitions.--As used in this 
                                subparagraph, the terms `share' and 
                                `shareholder' shall include beneficial 
                                interests and holders of beneficial 
                                interests, respectively.
                            ``(iii) Earnings and profits deduction for 
                        qualified timber gains.--The deduction 
                        allowable under section 1203(a) for a taxable 
                        year shall be allowed as a deduction in 
                        computing the earnings and profits of the real 
                        estate investment trust for such taxable year. 
                        The earnings and profits of any such 
                        shareholder which is a corporation shall be 
                        appropriately adjusted in accordance with 
                        regulations prescribed by the Secretary.''.
    (g) Loss Attributable to Basis Adjustment for Deduction for 
Qualified Timber Gain of Real Estate Investment Trusts.--
            (1) Section 857(b)(8) is amended by redesignating 
        subparagraphs (B) and (C) as subparagraphs (C) and (D), 
        respectively, and by inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) Loss attributable to basis adjustment for 
                deduction for qualified timber gain.--If--
                            ``(i) a shareholder of a real estate 
                        investment trust receives a basis adjustment 
                        provided under subsection (b)(3)(G)(ii), and
                            ``(ii) the taxpayer has held such share or 
                        interest for 6 months or less,
                then any loss on the sale or exchange of such share or 
                interest shall, to the extent of the amount described 
                in clause (i), be disallowed.''.
            (2) Subparagraph (D) of section 857(b)(8), as redesignated 
        by paragraph (1), is amended by striking ``subparagraph (A)'' 
        and inserting ``subparagraphs (A) and (B)''.
    (h) Conforming Amendments.--
            (1) Subparagraph (B) of section 172(d)(2) is amended to 
        read as follows:
                    ``(B) the exclusion under section 1202, and the 
                deduction under section 1203, shall not be allowed.''.
            (2) Paragraph (4) of section 642(c) is amended by striking 
        the first sentence and inserting ``To the extent that the 
        amount otherwise allowable as a deduction under this subsection 
        consists of gain described in section 1202(a) or qualified 
        timber gain (as defined in section 1203(b)), proper adjustment 
        shall be made for any exclusion allowable to the estate or 
        trust under section 1202 and for any deduction allowable to the 
        estate or trust under section 1203.''
            (3) Paragraph (3) of section 643(a) is amended by striking 
        the last sentence and inserting ``The exclusion under section 
        1202 and the deduction under section 1203 shall not be taken 
        into account.''.
            (4) Subparagraph (C) of section 643(a)(6) is amended to 
        read as follows:
                    ``(C) Paragraph (3) shall not apply to a foreign 
                trust. In the case of such a trust--
                            ``(i) there shall be included gains from 
                        the sale or exchange of capital assets, reduced 
                        by losses from such sales or exchanges to the 
                        extent such losses do not exceed gains from 
                        such sales or exchanges, and
                            ``(ii) the deduction under section 1203 
                        shall not be taken into account.''.
            (5) Paragraph (4) of section 691(c) is amended by inserting 
        ``1203,'' after ``1202,''.
            (6) Paragraph (2) of section 871(a) is amended by inserting 
        ``or 1203,'' after ``1202,''.
            (7) The table of sections for part I of subchapter P of 
        chapter 1 is amended by adding at the end the following new 
        item:

``Sec. 1203. Deduction for qualified timber gain.''.
    (i) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 1552. EXCISE TAX NOT APPLICABLE TO SECTION 1203 DEDUCTION OF REAL 
              ESTATE INVESTMENT TRUSTS.

    (a) In General.--
            (1) Ordinary income.--Subparagraph (B) of section 
        4981(e)(1) is amended to read as follows:
                    ``(B) by not taking into account--
                            ``(i) any gain or loss from the sale or 
                        exchange of capital assets (determined without 
                        regard to any reduction that would be applied 
                        for purposes of section 857(b)(3)(G)(i)), and
                            ``(ii) any deduction allowable under 
                        section 1203, and''.
            (2) Capital gain net income.--Section 4981(e)(2) is amended 
        by adding at the end the following new subparagraph:
                    ``(D) Qualified timber gain.--The amount determined 
                under subparagraph (A) shall be determined without 
                regard to any reduction that would be applied for 
                purposes of section 857(b)(3)(G)(i) but shall be 
                reduced for any deduction allowable under section 1203 
                for such calendar year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 1553. TIMBER REIT MODERNIZATION.

    (a) In General.--Section 856(c)(5) is amended by adding after 
subparagraph (G) the following new subparagraph:
                    ``(H) Treatment of timber gains.--
                            ``(i) In general.--Gain from the sale of 
                        real property described in paragraph (2)(D) and 
                        (3)(C) shall include gain which is--
                                    ``(I) recognized by an election 
                                under section 631(a) from timber owned 
                                by the real estate investment trust, 
                                the cutting of which is provided by a 
                                taxable REIT subsidiary of the real 
                                estate investment trust;
                                    ``(II) recognized under section 
                                631(b); or
                                    ``(III) income which would 
                                constitute gain under subclause (I) or 
                                (II) but for the failure to meet the 1-
                                year holding period requirement.
                            ``(ii) Special rules.--
                                    ``(I) For purposes of this 
                                subtitle, cut timber, the gain of which 
                                is recognized by a real estate 
                                investment trust pursuant to an 
                                election under section 631(a) described 
                                in clause (i)(I) or so much of clause 
                                (i)(III) as relates to clause (i)(I), 
                                shall be deemed to be sold to the 
                                taxable REIT subsidiary of the real 
                                estate investment trust on the first 
                                day of the taxable year.
                                    ``(II) For purposes of this 
                                subtitle, income described in this 
                                subparagraph shall not be treated as 
                                gain from the sale of property 
                                described in section 1221(a)(1).
                            ``(iii) Termination.--This subparagraph 
                        shall not apply to dispositions after the 
                        termination date.''.
    (b) Termination Date.--Subsection (c) of section 856 is amended by 
adding at the end the following new paragraph:
            ``(8) Termination date.--For purposes of this subsection, 
        the term `termination date' means the last day of the first 
        taxable year beginning after the date of the enactment of this 
        paragraph.''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply to dispositions in taxable years beginning after the date of the 
enactment of this Act.

SEC. 1554. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS.

    (a) In General.--Section 856(c)(2) is amended by striking ``and'' 
at the end of subparagraph (G), by inserting ``and'' at the end of 
subparagraph (H), and by adding after subparagraph (H) the following 
new subparagraph:
                    ``(I) mineral royalty income earned in the first 
                taxable year beginning after the date of the enactment 
                of this subparagraph from real property owned by a 
                timber real estate investment trust held, or once held, 
                in connection with the trade or business of producing 
                timber by such real estate investment trust;''.
    (b) Timber Real Estate Investment Trust.--Section 856(c)(5), as 
amended by this Act, is amended by adding after subparagraph (H) the 
following new subparagraph:
                    ``(I) Timber real estate investment trust.--The 
                term `timber real estate investment trust' means a real 
                estate investment trust in which more than 50 percent 
                in value of its total assets consists of real property 
                held in connection with the trade or business of 
                producing timber.''.
    (c) Effective Date.--The amendments by this section shall apply to 
taxable years beginning after the date of the enactment of this Act.

SEC. 1555. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST FOR 
              TIMBER REITS.

    (a) In General.--Section 856(c)(4)(B)(ii) is amended by inserting 
``(in the case of a quarter which closes on or before the termination 
date, 25 percent in the case of a timber real estate investment 
trust)'' after ``not more than 20 percent of the value of its total 
assets is represented by securities of one or more taxable REIT 
subsidiaries''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 1556. SAFE HARBOR FOR TIMBER PROPERTY.

    (a) In General.--Section 857(b)(6) (relating to income from 
prohibited transactions) is amended by adding at the end the following 
new subparagraph:
                    ``(G) Special rules for sales to qualified 
                organizations.--
                            ``(i) In general.--In the case of sale of a 
                        real estate asset (as defined in section 
                        856(c)(5)(B)) to a qualified organization (as 
                        defined in section 170(h)(3)) exclusively for 
                        conservation purposes (within the meaning of 
                        section 170(h)(1)(C)), subparagraph (D) shall 
                        be applied--
                                    ``(I) by substituting `2 years' for 
                                `4 years' in clause (i), and
                                    ``(II) by substituting `2-year 
                                period' for `4-year period' in clauses 
                                (ii) and (iii).
                            ``(ii) Termination.--This subparagraph 
                        shall not apply to sales after the termination 
                        date.''.
    (b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is amended by 
inserting ``or, in the case of a sale on or before the termination 
date, a taxable REIT subsidiary'' after ``independent contractor (as 
defined in section 856(d)(3)) from whom the trust itself does not 
derive or receive any income''.
    (c) Sales That Are Not Prohibited Transactions.--Section 857(b)(6), 
as amended by subsection (a), is amended by adding at the end the 
following new subparagraph:
                    ``(H) Sales of property that are not a prohibited 
                transaction.--In the case of a sale on or before the 
                termination date, the sale of property which is not a 
                prohibited transaction through application of 
                subparagraph (D) shall be considered property held for 
                investment or for use in a trade or business and not 
                property described in section 1221(a)(1) for all 
                purposes of this subtitle.''.
    (d) Termination Date.--Section 857(b)(6), as amended by subsections 
(a) and (c), is amended by adding at the end the following new 
subparagraph:
                    ``(I) Termination date.--For purposes of this 
                paragraph, the term `termination date' means the last 
                day of the first taxable year beginning after the date 
                of the enactment of this subparagraph.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to dispositions in taxable years beginning after the date of the 
enactment of this Act.

                         PART II--EXXON VALDEZ

SEC. 1557. INCOME AVERAGING FOR AMOUNTS RECEIVED IN CONNECTION WITH THE 
              EXXON VALDEZ LITIGATION.

    (a) Income Averaging of Amounts Received From the Exxon Valdez 
Litigation.--For purposes of section 1301 of the Internal Revenue Code 
of 1986--
            (1) any qualified taxpayer who receives any qualified 
        settlement income in any taxable year shall be treated as 
        engaged in a fishing business (determined without regard to the 
        commercial nature of the business), and
            (2) such qualified settlement income shall be treated as 
        income attributable to such a fishing business for such taxable 
        year.
    (b) Contributions of Amounts Received to Retirement Accounts.--
            (1) In general.--Any qualified taxpayer who receives 
        qualified settlement income during the taxable year may, at any 
        time before the end of the taxable year in which such income 
        was received, make one or more contributions to an eligible 
        retirement plan of which such qualified taxpayer is a 
        beneficiary in an aggregate amount not to exceed the lesser 
        of--
                    (A) $100,000 (reduced by the amount of qualified 
                settlement income contributed to an eligible retirement 
                plan in prior taxable years pursuant to this 
                subsection), or
                    (B) the amount of qualified settlement income 
                received by the individual during the taxable year.
            (2) Time when contributions deemed made.--For purposes of 
        paragraph (1), a qualified taxpayer shall be deemed to have 
        made a contribution to an eligible retirement plan on the last 
        day of the taxable year in which such income is received if the 
        contribution is made on account of such taxable year and is 
        made not later than the time prescribed by law for filing the 
        return for such taxable year (not including extensions 
        thereof).
            (3) Treatment of contributions to eligible retirement 
        plans.--For purposes of the Internal Revenue Code of 1986, if a 
        contribution is made pursuant to paragraph (1) with respect to 
        qualified settlement income, then--
                    (A) except as provided in paragraph (4)--
                            (i) to the extent of such contribution, the 
                        qualified settlement income shall not be 
                        included in taxable income, and
                            (ii) for purposes of section 72 of such 
                        Code, such contribution shall not be considered 
                        to be investment in the contract,
                    (B) the qualified taxpayer shall, to the extent of 
                the amount of the contribution, be treated--
                            (i) as having received the qualified 
                        settlement income--
                                    (I) in the case of a contribution 
                                to an individual retirement plan (as 
                                defined under section 7701(a)(37) of 
                                such Code), in a distribution described 
                                in section 408(d)(3) of such Code, and
                                    (II) in the case of any other 
                                eligible retirement plan, in an 
                                eligible rollover distribution (as 
                                defined under section 402(f)(2) of such 
                                Code), and
                            (ii) as having transferred the amount to 
                        the eligible retirement plan in a direct 
                        trustee to trustee transfer within 60 days of 
                        the distribution,
                    (C) section 408(d)(3)(B) of the Internal Revenue 
                Code of 1986 shall not apply with respect to amounts 
                treated as a rollover under this paragraph, and
                    (D) section 408A(c)(3)(B) of the Internal Revenue 
                Code of 1986 shall not apply with respect to amounts 
                contributed to a Roth IRA (as defined under section 
                408A(b) of such Code) or a designated Roth contribution 
                to an applicable retirement plan (within the meaning of 
                section 402A of such Code) under this paragraph.
            (4) Special rule for roth iras and roth 401(k)s.--For 
        purposes of the Internal Revenue Code of 1986, if a 
        contribution is made pursuant to paragraph (1) with respect to 
        qualified settlement income to a Roth IRA (as defined under 
        section 408A(b) of such Code) or as a designated Roth 
        contribution to an applicable retirement plan (within the 
        meaning of section 402A of such Code), then--
                    (A) the qualified settlement income shall be 
                includible in taxable income, and
                    (B) for purposes of section 72 of such Code, such 
                contribution shall be considered to be investment in 
                the contract.
            (5) Eligible retirement plan.--For purpose of this 
        subsection, the term ``eligible retirement plan'' has the 
        meaning given such term under section 402(c)(8)(B) of the 
        Internal Revenue Code of 1986.
    (c) Treatment of Qualified Settlement Income Under Employment 
Taxes.--
            (1) SECA.--For purposes of chapter 2 of the Internal 
        Revenue Code of 1986 and section 211 of the Social Security 
        Act, no portion of qualified settlement income received by a 
        qualified taxpayer shall be treated as self-employment income.
            (2) FICA.--For purposes of chapter 21 of the Internal 
        Revenue Code of 1986 and section 209 of the Social Security 
        Act, no portion of qualified settlement income received by a 
        qualified taxpayer shall be treated as wages.
    (d) Qualified Taxpayer.--For purposes of this section, the term 
``qualified taxpayer'' means--
            (1) any individual who is a plaintiff in the civil action 
        In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D. 
        Alaska); or
            (2) any individual who is a beneficiary of the estate of 
        such a plaintiff who--
                    (A) acquired the right to receive qualified 
                settlement income from that plaintiff; and
                    (B) was the spouse or an immediate relative of that 
                plaintiff.
    (e) Qualified Settlement Income.--For purposes of this section, the 
term ``qualified settlement income'' means any interest and punitive 
damage awards which are--
            (1) otherwise includible in taxable income, and
            (2) received (whether as lump sums or periodic payments) in 
        connection with the civil action In re Exxon Valdez, No. 89-
        095-CV (HRH) (Consolidated) (D. Alaska) (whether pre- or post-
        judgment and whether related to a settlement or judgment).

                     Subtitle E--Revenue Provisions

SEC. 1561. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC 
              PRODUCTION OF OIL, GAS, OR A PRIMARY PRODUCTS THEREOF.

    (a) Denial of Deduction for Major Integrated Oil Companies for 
Income Attributable to Domestic Production of Oil, Gas, or Primary 
Products Thereof.--
            (1) In general.--Subparagraph (B) of section 199(c)(4) 
        (relating to exceptions) is amended by striking ``or'' at the 
        end of clause (ii), by striking the period at the end of clause 
        (iii) and inserting ``, or'', and by inserting after clause 
        (iii) the following new clause:
                            ``(iv) in the case of any major integrated 
                        oil company (as defined in section 
                        167(h)(5)(B)), the production, refining, 
                        processing, transportation, or distribution of 
                        oil, gas, or any primary product thereof during 
                        any taxable year described in section 
                        167(h)(5)(B).''.
            (2) Primary product.--Section 199(c)(4)(B) is amended by 
        adding at the end the following flush sentence:
                ``For purposes of clause (iv), the term `primary 
                product' has the same meaning as when used in section 
                927(a)(2)(C), as in effect before its repeal.''.
    (b) Limitation on Oil Related Qualified Production Activities 
Income for Taxpayers Other Than Major Integrated Oil Companies.--
            (1) In general.--Section 199(d) is amended by redesignating 
        paragraph (9) as paragraph (10) and by inserting after 
        paragraph (8) the following new paragraph:
            ``(9) Special rule for taxpayers with oil related qualified 
        production activities income.--
                    ``(A) In general.--If a taxpayer (other than a 
                major integrated oil company (as defined in section 
                167(h)(5)(B))) has oil related qualified production 
                activities income for any taxable year beginning after 
                2009, the amount of the deduction under subsection (a) 
                shall be reduced by 3 percent of the least of--
                            ``(i) the oil related qualified production 
                        activities income of the taxpayer for the 
                        taxable year,
                            ``(ii) the qualified production activities 
                        income of the taxpayer for the taxable year, or
                            ``(iii) taxable income (determined without 
                        regard to this section).
                    ``(B) Oil related qualified production activities 
                income.--The term `oil related qualified production 
                activities income' means for any taxable year the 
                qualified production activities income which is 
                attributable to the production, refining, processing, 
                transportation, or distribution of oil, gas, or any 
                primary product thereof during such taxable year.''.
            (2) Conforming amendment.--Section 199(d)(2) (relating to 
        application to individuals) is amended by striking ``subsection 
        (a)(1)(B)'' and inserting ``subsections (a)(1)(B) and 
        (d)(9)(A)(iii)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 1562. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN OIL AND 
              GAS EXTRACTION INCOME AND FOREIGN OIL RELATED INCOME FOR 
              PURPOSES OF THE FOREIGN TAX CREDIT.

    (a) In General.--Subsections (a) and (b) of section 907 (relating 
to special rules in case of foreign oil and gas income) are amended to 
read as follows:
    ``(a) Reduction in Amount Allowed as Foreign Tax Under Section 
901.--In applying section 901, the amount of any foreign oil and gas 
taxes paid or accrued (or deemed to have been paid) during the taxable 
year which would (but for this subsection) be taken into account for 
purposes of section 901 shall be reduced by the amount (if any) by 
which the amount of such taxes exceeds the product of--
            ``(1) the amount of the combined foreign oil and gas income 
        for the taxable year,
            ``(2) multiplied by--
                    ``(A) in the case of a corporation, the percentage 
                which is equal to the highest rate of tax specified 
                under section 11(b), or
                    ``(B) in the case of an individual, a fraction the 
                numerator of which is the tax against which the credit 
                under section 901(a) is taken and the denominator of 
                which is the taxpayer's entire taxable income.
    ``(b) Combined Foreign Oil and Gas Income; Foreign Oil and Gas 
Taxes.--For purposes of this section--
            ``(1) Combined foreign oil and gas income.--The term 
        `combined foreign oil and gas income' means, with respect to 
        any taxable year, the sum of--
                    ``(A) foreign oil and gas extraction income, and
                    ``(B) foreign oil related income.
            ``(2) Foreign oil and gas taxes.--The term `foreign oil and 
        gas taxes' means, with respect to any taxable year, the sum 
        of--
                    ``(A) oil and gas extraction taxes, and
                    ``(B) any income, war profits, and excess profits 
                taxes paid or accrued (or deemed to have been paid or 
                accrued under section 902 or 960) during the taxable 
                year with respect to foreign oil related income 
                (determined without regard to subsection (c)(4)) or 
                loss which would be taken into account for purposes of 
                section 901 without regard to this section.''.
    (b) Recapture of Foreign Oil and Gas Losses.--Paragraph (4) of 
section 907(c) (relating to recapture of foreign oil and gas extraction 
losses by recharacterizing later extraction income) is amended to read 
as follows:
            ``(4) Recapture of foreign oil and gas losses by 
        recharacterizing later combined foreign oil and gas income.--
                    ``(A) In general.--The combined foreign oil and gas 
                income of a taxpayer for a taxable year (determined 
                without regard to this paragraph) shall be reduced--
                            ``(i) first by the amount determined under 
                        subparagraph (B), and
                            ``(ii) then by the amount determined under 
                        subparagraph (C).
                The aggregate amount of such reductions shall be 
                treated as income (from sources without the United 
                States) which is not combined foreign oil and gas 
                income.
                    ``(B) Reduction for pre-2008 foreign oil extraction 
                losses.--The reduction under this paragraph shall be 
                equal to the lesser of--
                            ``(i) the foreign oil and gas extraction 
                        income of the taxpayer for the taxable year 
                        (determined without regard to this paragraph), 
                        or
                            ``(ii) the excess of--
                                    ``(I) the aggregate amount of 
                                foreign oil extraction losses for 
                                preceding taxable years beginning after 
                                December 31, 1982, and before January 
                                1, 2008, over
                                    ``(II) so much of such aggregate 
                                amount as was recharacterized under 
                                this paragraph (as in effect before and 
                                after the date of the enactment of the 
                                Clean Renewable Energy and Conservation 
                                Tax Act of 2007) for preceding taxable 
                                years beginning after December 31, 
                                1982.
                    ``(C) Reduction for post-2007 foreign oil and gas 
                losses.--The reduction under this paragraph shall be 
                equal to the lesser of--
                            ``(i) the combined foreign oil and gas 
                        income of the taxpayer for the taxable year 
                        (determined without regard to this paragraph), 
                        reduced by an amount equal to the reduction 
                        under subparagraph (A) for the taxable year, or
                            ``(ii) the excess of--
                                    ``(I) the aggregate amount of 
                                foreign oil and gas losses for 
                                preceding taxable years beginning after 
                                December 31, 2007, over
                                    ``(II) so much of such aggregate 
                                amount as was recharacterized under 
                                this paragraph for preceding taxable 
                                years beginning after December 31, 
                                2007.
                    ``(D) Foreign oil and gas loss defined.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `foreign oil and gas loss' 
                        means the amount by which--
                                    ``(I) the gross income for the 
                                taxable year from sources without the 
                                United States and its possessions 
                                (whether or not the taxpayer chooses 
                                the benefits of this subpart for such 
                                taxable year) taken into account in 
                                determining the combined foreign oil 
                                and gas income for such year, is 
                                exceeded by
                                    ``(II) the sum of the deductions 
                                properly apportioned or allocated 
                                thereto.
                            ``(ii) Net operating loss deduction not 
                        taken into account.--For purposes of clause 
                        (i), the net operating loss deduction allowable 
                        for the taxable year under section 172(a) shall 
                        not be taken into account.
                            ``(iii) Expropriation and casualty losses 
                        not taken into account.--For purposes of clause 
                        (i), there shall not be taken into account--
                                    ``(I) any foreign expropriation 
                                loss (as defined in section 172(h) (as 
                                in effect on the day before the date of 
                                the enactment of the Revenue 
                                Reconciliation Act of 1990)) for the 
                                taxable year, or
                                    ``(II) any loss for the taxable 
                                year which arises from fire, storm, 
                                shipwreck, or other casualty, or from 
                                theft,
                        to the extent such loss is not compensated for 
                        by insurance or otherwise.
                            ``(iv) Foreign oil extraction loss.--For 
                        purposes of subparagraph (B)(ii)(I), foreign 
                        oil extraction losses shall be determined under 
                        this paragraph as in effect on the day before 
                        the date of the enactment of the Clean 
                        Renewable Energy and Conservation Tax Act of 
                        2007.''.
    (c) Carryback and Carryover of Disallowed Credits.--Section 907(f) 
(relating to carryback and carryover of disallowed credits) is 
amended--
            (1) by striking ``oil and gas extraction taxes'' each place 
        it appears and inserting ``foreign oil and gas taxes'', and
            (2) by adding at the end the following new paragraph:
            ``(4) Transition rules for pre-2008 and 2008 disallowed 
        credits.--
                    ``(A) Pre-2008 credits.--In the case of any unused 
                credit year beginning before January 1, 2008, this 
                subsection shall be applied to any unused oil and gas 
                extraction taxes carried from such unused credit year 
                to a year beginning after December 31, 2007--
                            ``(i) by substituting `oil and gas 
                        extraction taxes' for `foreign oil and gas 
                        taxes' each place it appears in paragraphs (1), 
                        (2), and (3), and
                            ``(ii) by computing, for purposes of 
                        paragraph (2)(A), the limitation under 
                        subparagraph (A) for the year to which such 
                        taxes are carried by substituting `foreign oil 
                        and gas extraction income' for `foreign oil and 
                        gas income' in subsection (a).
                    ``(B) 2008 credits.--In the case of any unused 
                credit year beginning in 2008, the amendments made to 
                this subsection by the Clean Renewable Energy and 
                Conservation Tax Act of 2007 shall be treated as being 
                in effect for any preceding year beginning before 
                January 1, 2008, solely for purposes of determining how 
                much of the unused foreign oil and gas taxes for such 
                unused credit year may be deemed paid or accrued in 
                such preceding year.''.
    (d) Conforming Amendment.--Section 6501(i) is amended by striking 
``oil and gas extraction taxes'' and inserting ``foreign oil and gas 
taxes''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 1563. SEVEN-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
              EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL COMPANIES.

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

SEC. 1564. BROKER REPORTING OF CUSTOMER'S BASIS IN SECURITIES 
              TRANSACTIONS.

    (a) In General.--
            (1) Broker reporting for securities transactions.--Section 
        6045 (relating to returns of brokers) is amended by adding at 
        the end the following new subsection:
    ``(g) Additional Information Required in the Case of Securities 
Transactions.--
            ``(1) In general.--If a broker is otherwise required to 
        make a return under subsection (a) with respect to the gross 
        proceeds of the sale of a covered security, the broker shall 
        include in such return the information described in paragraph 
        (2).
            ``(2) Additional information required.--
                    ``(A) In general.--The information required under 
                paragraph (1) to be shown on a return with respect to a 
                covered security of a customer shall include the 
                customer's adjusted basis in such security and whether 
                any gain or loss with respect to such security is long-
                term or short-term (within the meaning of section 
                1222).
                    ``(B) Determination of adjusted basis.--For 
                purposes of subparagraph (A)--
                            ``(i) In general.--The customer's adjusted 
                        basis shall be determined--
                                    ``(I) in the case of any stock 
                                (other than any stock in an open-end 
                                fund), in accordance with the first-in 
                                first-out method unless the customer 
                                notifies the broker by means of making 
                                an adequate identification of the stock 
                                sold or transferred,
                                    ``(II) in the case of any stock in 
                                an open-end fund acquired before 
                                January 1, 2011, in accordance with any 
                                acceptable method under section 1012 
                                with respect to the account in which 
                                such interest is held,
                                    ``(III) in the case of any stock in 
                                an open-end fund acquired after 
                                December 31, 2010, in accordance with 
                                the broker's default method unless the 
                                customer notifies the broker that he 
                                elects another acceptable method under 
                                section 1012 with respect to the 
                                account in which such interest is held, 
                                and
                                    ``(IV) in any other case, under the 
                                method for making such determination 
                                under section 1012.
                            ``(ii) Exception for wash sales.--Except as 
                        otherwise provided by the Secretary, the 
                        customer's adjusted basis shall be determined 
                        without regard to section 1091 (relating to 
                        loss from wash sales of stock or securities) 
                        unless the transactions occur in the same 
                        account with respect to identical securities.
            ``(3) Covered security.--For purposes of this subsection--
                    ``(A) In general.--The term `covered security' 
                means any specified security acquired on or after the 
                applicable date if such security--
                            ``(i) was acquired through a transaction in 
                        the account in which such security is held, or
                            ``(ii) was transferred to such account from 
                        an account in which such security was a covered 
                        security, but only if the broker received a 
                        statement under section 6045A with respect to 
                        the transfer.
                    ``(B) Specified security.--The term `specified 
                security' means--
                            ``(i) any share of stock in a corporation,
                            ``(ii) any note, bond, debenture, or other 
                        evidence of indebtedness,
                            ``(iii) any commodity, or contract or 
                        derivative with respect to such commodity, if 
                        the Secretary determines that adjusted basis 
                        reporting is appropriate for purposes of this 
                        subsection, and
                            ``(iv) any other financial instrument with 
                        respect to which the Secretary determines that 
                        adjusted basis reporting is appropriate for 
                        purposes of this subsection.
                    ``(C) Applicable date.--The term `applicable date' 
                means--
                            ``(i) January 1, 2009, in the case of any 
                        specified security which is stock in a 
                        corporation, and
                            ``(ii) January 1, 2011, or such later date 
                        determined by the Secretary in the case of any 
                        other specified security.
            ``(4) Open-end fund.--For purposes of this subsection, the 
        term `open-end fund' means a regulated investment company (as 
        defined in section 851) which is offering for sale or has 
        outstanding any redeemable security of which it is the issuer 
        and the shares of which are not traded on an established 
        securities exchange.
            ``(5) Treatment of s corporations.--In the case of the sale 
        of a covered security acquired by an S corporation (other than 
        a financial institution) after December 31, 2010, such S 
        corporation shall be treated in the same manner as a 
        partnership for purposes of this section.
            ``(6) Special rules for short sales.--
                    ``(A) In general.--Notwithstanding subsection (a), 
                in the case of a short sale under section 1233, 
                reporting under this section shall be made for the year 
                in which such sale is closed.
                    ``(B) Exception for constructive sales.--
                Subparagraph (A) shall not apply to any short sale 
                which results in a constructive sale under section 1259 
                with respect to property held in the account in which 
                the short sale is entered into.''.
            (2) Broker information required with respect to options.--
        Section 6045, as amended by subsection (a), is amended by 
        adding at the end the following new subsection:
    ``(h) Application to Options on Securities.--
            ``(1) Exercise of option.--For purposes of this section, in 
        the case of any exercise of an option on a covered security 
        where the option was granted or acquired in the same account as 
        the covered security, the amount received or paid with respect 
        to such exercise shall be treated as an adjustment to gross 
        proceeds or as an adjustment to basis, as the case may be.
            ``(2) Lapse or closing transaction.--For purposes of this 
        section, in the case of the lapse (or closing transaction (as 
        defined in section 1234(b)(2)(A))) of an option on a specified 
        security where the taxpayer is the grantor of the option, this 
        section shall apply as if the premium received for such option 
        were gross proceeds received on the date of the lapse or 
        closing transaction, and the cost (if any) of the closing 
        transaction shall be taken into account as adjusted basis. In 
        the case of an option on a specified security where the 
        taxpayer is the grantee of such option, this section shall 
        apply as if the grantee received gross proceeds of zero on the 
        date of the lapse.
            ``(3) Prospective application.--Paragraphs (1) and (2) 
        shall not apply to any option which is granted or acquired 
        before January 1, 2011.
            ``(4) Definitions.--For purposes of this subsection, the 
        terms `covered security' and `specified security' shall have 
        the meanings given such terms in subsection (g)(3).''.
            (3) Extension of period for statements sent to customers.--
                    (A) In general.--Subsection (b) of section 6045 is 
                amended by striking ``January 31'' and inserting 
                ``February 15 (January 31 in the case of returns for 
                calendar years before 2010)''.
                    (B) Statements related to substitute payments.--
                Subsection (d) of section 6045 is amended--
                            (i) by striking ``at such time and'', and
                            (ii) by inserting after ``other item.'' the 
                        following new sentence: ``In the case of a 
                        payment made during any calendar year after 
                        2009, the written statement required under the 
                        preceding sentence shall be furnished on or 
                        before February 15 of the year following the 
                        calendar year in which the payment was made.''.
                    (C) Other statements.--Subsection (b) of section 
                6045 is amended by adding at the end the following: 
                ``In the case of a consolidated reporting statement (as 
                defined in regulations) with respect to any account 
                which includes the statement required by this 
                subsection, any statement which would otherwise be 
                required to be furnished on or before January 31 of a 
                calendar year after 2010 under section 6042(c), 
                6049(c)(2)(A), or 6050N(b) with respect to any item in 
                such account shall instead be required to be furnished 
                on or before February 15 of such calendar year if 
                furnished as part of such consolidated reporting 
                statement.''.
    (b) Determination of Basis of Certain Securities on Account by 
Account Method.--Section 1012 (relating to basis of property-cost) is 
amended--
            (1) by striking ``The basis of property'' and inserting the 
        following:
    ``(a) In General.--The basis of property'',
            (2) by striking ``The cost of real property'' and inserting 
        the following:
    ``(b) Special Rule for Apportioned Real Estate Taxes.--The cost of 
real property'', and
            (3) by adding at the end the following new subsection:
    ``(c) Determinations by Account.--
            ``(1) In general.--In the case of the sale, exchange, or 
        other disposition of a specified security on or after the 
        applicable date, the conventions prescribed by regulations 
        under this section shall be applied on an account by account 
        basis.
            ``(2) Application to open-end funds.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any stock in an open-end fund 
                acquired before January 1, 2009, shall be treated as a 
                separate account from any such stock acquired on or 
                after such date.
                    ``(B) Election by open-end fund for treatment as 
                single account.--If an open-end fund elects (at such 
                time and in such form and manner as the Secretary may 
                prescribe) to have this subparagraph apply with respect 
                to one or more of its stockholders--
                            ``(i) subparagraph (A) shall not apply with 
                        respect to any stock in such fund held by such 
                        stockholders, and
                            ``(ii) all stock in such fund which is held 
                        by such stockholders shall be treated as 
                        covered securities described in section 
                        6045(g)(3) without regard to the date of the 
                        acquisition of such stock.
                A rule similar to the rule of the preceding sentence 
                shall apply with respect to a broker holding stock in 
                an open-end fund as a nominee.
            ``(3) Definitions.--For purposes of this section, the terms 
        `specified security', `applicable date', and `open-end fund' 
        shall have the meaning given such terms in section 6045(g).''.
    (c) Information by Transferors To Aid Brokers.--
            (1) In general.--Subpart B of part III of subchapter A of 
        chapter 61 is amended by inserting after section 6045 the 
        following new section:

``SEC. 6045A. INFORMATION REQUIRED IN CONNECTION WITH TRANSFERS OF 
              COVERED SECURITIES TO BROKERS.

    ``(a) Furnishing of Information.--Every applicable person which 
transfers to a broker (as defined in section 6045(c)(1)) a security 
which is a covered security (as defined in section 6045(g)(3)) in the 
hands of such applicable person shall furnish to such broker a written 
statement in such manner and setting forth such information as the 
Secretary may by regulations prescribe for purposes of enabling such 
broker to meet the requirements of section 6045(g).
    ``(b) Applicable Person.--For purposes of subsection (a), the term 
`applicable person' means--
            ``(1) any broker (as defined in section 6045(c)(1)), and
            ``(2) any other person as provided by the Secretary in 
        regulations.
    ``(c) Time for Furnishing Statement.--Any statement required by 
subsection (a) shall be furnished not later than the earlier of--
            ``(1) 45 days after the date of the transfer described in 
        subsection (a), or
            ``(2) January 15 of the year following the calendar year 
        during which such transfer occurred.''.
            (2) Assessable penalties.--Paragraph (2) of section 6724(d) 
        (defining payee statement) is amended by redesignating 
        subparagraphs (I) through (CC) as subparagraphs (J) through 
        (DD), respectively, and by inserting after subparagraph (H) the 
        following new subparagraph:
                    ``(I) section 6045A (relating to information 
                required in connection with transfers of covered 
                securities to brokers).''.
            (3) Clerical amendment.--The table of sections for subpart 
        B of part III of subchapter A of chapter 61 is amended by 
        inserting after the item relating to section 6045 the following 
        new item:

``Sec. 6045A. Information required in connection with transfers of 
                            covered securities to brokers.''.
    (d) Additional Issuer Information to Aid Brokers.--
            (1) In general.--Subpart B of part III of subchapter A of 
        chapter 61 of the Internal Revenue Code of 1986, as amended by 
        subsection (b), is amended by inserting after section 6045A the 
        following new section:

``SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING BASIS OF SPECIFIED 
              SECURITIES.

    ``(a) In General.--According to the forms or regulations prescribed 
by the Secretary, any issuer of a specified security shall make a 
return setting forth--
            ``(1) a description of any organizational action which 
        affects the basis of such specified security of such issuer,
            ``(2) the quantitative effect on the basis of such 
        specified security resulting from such action, and
            ``(3) such other information as the Secretary may 
        prescribe.
    ``(b) Time for Filing Return.--Any return required by subsection 
(a) shall be filed not later than the earlier of--
            ``(1) 45 days after the date of the action described in 
        subsection (a), or
            ``(2) January 15 of the year following the calendar year 
        during which such action occurred.
    ``(c) Statements To Be Furnished to Holders of Specified Securities 
or Their Nominees.--According to the forms or regulations prescribed by 
the Secretary, every person required to make a return under subsection 
(a) with respect to a specified security shall furnish to the nominee 
with respect to the specified security (or certificate holder if there 
is no nominee) a written statement showing--
            ``(1) the name, address, and phone number of the 
        information contact of the person required to make such return,
            ``(2) the information required to be shown on such return 
        with respect to such security, and
            ``(3) such other information as the Secretary may 
        prescribe.
The written statement required under the preceding sentence shall be 
furnished to the holder on or before January 15 of the year following 
the calendar year during which the action described in subsection (a) 
occurred.
    ``(d) Specified Security.--For purposes of this section, the term 
`specified security' has the meaning given such term by section 
6045(g)(3)(B). No return shall be required under this section with 
respect to actions described in subsection (a) with respect to a 
specified security which occur before the applicable date (as defined 
in section 6045(g)(3)(C)) with respect to such security.
    ``(e) Public Reporting in Lieu of Return.--The Secretary may waive 
the requirements under subsections (a) and (c) with respect to a 
specified security, if the person required to make the return under 
subsection (a) makes publicly available, in such form and manner as the 
Secretary determines necessary to carry out the purposes of this 
section--
            ``(1) the name, address, phone number, and email address of 
        the information contact of such person, and
            ``(2) the information described in paragraphs (1), (2), and 
        (3) of subsection (a).''.
            (2) Assessable penalties.--
                    (A) Subparagraph (B) of section 6724(d)(1) of such 
                Code (defining information return) is amended by 
                redesignating clauses (iv) through (xix) as clauses (v) 
                through (xx), respectively, and by inserting after 
                clause (iii) the following new clause:
                            ``(iv) section 6045B(a) (relating to 
                        returns relating to actions affecting basis of 
                        specified securities),''.
                    (B) Paragraph (2) of section 6724(d) of such Code 
                (defining payee statement), as amended by subsection 
                (c)(2), is amended by redesignating subparagraphs (J) 
                through (DD) as subparagraphs (K) through (EE), 
                respectively, and by inserting after subparagraph (I) 
                the following new subparagraph:
                    ``(J) subsections (c) and (e) of section 6045B 
                (relating to returns relating to actions affecting 
                basis of specified securities).''.
            (3) Clerical amendment.--The table of sections for subpart 
        B of part III of subchapter A of chapter 61 of such Code, as 
        amended by subsection (b)(3), is amended by inserting after the 
        item relating to section 6045A the following new item:

``Sec. 6045B. Returns relating to actions affecting basis of specified 
                            securities.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2009.
    (f) Study Regarding Information Returns.--
            (1) In general.--The Secretary of the Treasury shall study 
        the effect and feasibility of delaying the date for furnishing 
        statements under sections 6042(c), 6045, 6049(c)(2)(A), and 
        6050N(b) of the Internal Revenue Code of 1986 until February 15 
        following the year to which such statements relate.
            (2) Report.--Not later than 6 months after the date of the 
        enactment of this Act, the Secretary of the Treasury shall 
        report to Congress on the results of the study conducted under 
        paragraph (1). Such report shall include the Secretary's 
        findings regarding--
                    (A) the effect on tax administration of such delay, 
                and
                    (B) other administrative or legislative options to 
                improve compliance and ease burdens on taxpayers and 
                brokers with respect to such statements.

SEC. 1565. EXTENSION OF ADDITIONAL 0.2 PERCENT FUTA SURTAX.

    (a) In General.--Section 3301 (relating to rate of tax) is 
amended--
            (1) by striking ``2007'' in paragraph (1) and inserting 
        ``2008'', and
            (2) by striking ``2008'' in paragraph (2) and inserting 
        ``2009''.
    (b) Effective Date.--The amendments made by this section shall 
apply to wages paid after December 31, 2007.

SEC. 1566. TERMINATION OF TREATMENT OF NATURAL GAS DISTRIBUTION LINES 
              AS 15-YEAR PROPERTY.

    (a) In General.--Section 168(e)(3)(E)(viii) of the Internal Revenue 
Code of 1986 is amended by striking ``January 1, 2011'' and inserting 
``December 4, 2007''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to property placed in service after December 3, 2007.
            (2) Exception.--The amendments made by this section shall 
        not apply to any property with respect to which the taxpayer or 
        a related party has entered into a binding contract for the 
        construction thereof on or before December 3, 2007, or, in the 
        case of self-constructed property, has started construction on 
        or before such date.

SEC. 1567. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    The percentage under subparagraph (B) of section 401(1) of the Tax 
Increase Prevention and Reconciliation Act of 2005 in effect on the 
date of the enactment of this Act is increased by 6.25 percentage 
points.

SEC. 1568. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP 
              RETURNS.

    (a) Extension of Time Limitation.--Section 6698(a) (relating to 
failure to file partnership returns) is amended by striking ``5 
months'' and inserting ``12 months''.
    (b) Increase in Penalty Amount.--Paragraph (1) of section 6698(b) 
is amended by striking ``$50'' and inserting ``$80''.
    (c) Effective Date.--The amendments made by this section shall 
apply to returns required to be filed after the date of the enactment 
of this Act.

                    Subtitle F--Secure Rural Schools

SEC. 1571. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION 
              PROGRAM.

    (a) Reauthorization of the Secure Rural Schools and Community Self-
Determination Act of 2000.--The Secure Rural Schools and Community 
Self-Determination Act of 2000 (16 U.S.C. 500 note; Public Law 106-393) 
is amended by striking sections 1 through 403 and inserting the 
following:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Secure Rural Schools and Community 
Self-Determination Act of 2000'.

``SEC. 2. PURPOSES.

    ``The purposes of this Act are--
            ``(1) to stabilize and transition payments to counties to 
        provide funding for schools and roads that supplements other 
        available funds;
            ``(2) to make additional investments in, and create 
        additional employment opportunities through, projects that--
                    ``(A)(i) improve the maintenance of existing 
                infrastructure;
                    ``(ii) implement stewardship objectives that 
                enhance forest ecosystems; and
                    ``(iii) restore and improve land health and water 
                quality;
                    ``(B) enjoy broad-based support; and
                    ``(C) have objectives that may include--
                            ``(i) road, trail, and infrastructure 
                        maintenance or obliteration;
                            ``(ii) soil productivity improvement;
                            ``(iii) improvements in forest ecosystem 
                        health;
                            ``(iv) watershed restoration and 
                        maintenance;
                            ``(v) the restoration, maintenance, and 
                        improvement of wildlife and fish habitat;
                            ``(vi) the control of noxious and exotic 
                        weeds; and
                            ``(vii) the reestablishment of native 
                        species; and
            ``(3) to improve cooperative relationships among--
                    ``(A) the people that use and care for Federal 
                land; and
                    ``(B) the agencies that manage the Federal land.

``SEC. 3. DEFINITIONS.

    ``In this Act:
            ``(1) Adjusted share.--The term `adjusted share' means the 
        number equal to the quotient obtained by dividing--
                    ``(A) the number equal to the quotient obtained by 
                dividing--
                            ``(i) the base share for the eligible 
                        county; by
                            ``(ii) the income adjustment for the 
                        eligible county; by
                    ``(B) the number equal to the sum of the quotients 
                obtained under subparagraph (A) and paragraph (8)(A) 
                for all eligible counties.
            ``(2) Base share.--The term `base share' means the number 
        equal to the average of--
                    ``(A) the quotient obtained by dividing--
                            ``(i) the number of acres of Federal land 
                        described in paragraph (7)(A) in each eligible 
                        county; by
                            ``(ii) the total number acres of Federal 
                        land in all eligible counties in all eligible 
                        States; and
                    ``(B) the quotient obtained by dividing--
                            ``(i) the amount equal to the average of 
                        the 3 highest 25-percent payments and safety 
                        net payments made to each eligible State for 
                        each eligible county during the eligibility 
                        period; by
                            ``(ii) the amount equal to the sum of the 
                        amounts calculated under clause (i) and 
                        paragraph (9)(B)(i) for all eligible counties 
                        in all eligible States during the eligibility 
                        period.
            ``(3) County payment.--The term `county payment' means the 
        payment for an eligible county calculated under section 101(b).
            ``(4) Eligible county.--The term `eligible county' means 
        any county that--
                    ``(A) contains Federal land (as defined in 
                paragraph (7)); and
                    ``(B) elects to receive a share of the State 
                payment or the county payment under section 102(b).
            ``(5) Eligibility period.--The term `eligibility period' 
        means fiscal year 1986 through fiscal year 1999.
            ``(6) Eligible state.--The term `eligible State' means a 
        State or territory of the United States that received a 25-
        percent payment for 1 or more fiscal years of the eligibility 
        period.
            ``(7) Federal land.--The term `Federal land' means--
                    ``(A) land within the National Forest System, as 
                defined in section 11(a) of the Forest and Rangeland 
                Renewable Resources Planning Act of 1974 (16 U.S.C. 
                1609(a)) exclusive of the National Grasslands and land 
                utilization projects designated as National Grasslands 
                administered pursuant to the Act of July 22, 1937 (7 
                U.S.C. 1010-1012); and
                    ``(B) such portions of the revested Oregon and 
                California Railroad and reconveyed Coos Bay Wagon Road 
                grant land as are or may hereafter come under the 
                jurisdiction of the Department of the Interior, which 
                have heretofore or may hereafter be classified as 
                timberlands, and power-site land valuable for timber, 
                that shall be managed, except as provided in the former 
                section 3 of the Act of August 28, 1937 (50 Stat. 875; 
                43 U.S.C. 1181c), for permanent forest production.
            ``(8) 50-Percent adjusted share.--The term `50-percent 
        adjusted share' means the number equal to the quotient obtained 
        by dividing--
                    ``(A) the number equal to the quotient obtained by 
                dividing--
                            ``(i) the 50-percent base share for the 
                        eligible county; by
                            ``(ii) the income adjustment for the 
                        eligible county; by
                    ``(B) the number equal to the sum of the quotients 
                obtained under subparagraph (A) and paragraph (1)(A) 
                for all eligible counties.
            ``(9) 50-Percent base share.--The term `50-percent base 
        share' means the number equal to the average of--
                    ``(A) the quotient obtained by dividing--
                            ``(i) the number of acres of Federal land 
                        described in paragraph (7)(B) in each eligible 
                        county; by
                            ``(ii) the total number acres of Federal 
                        land in all eligible counties in all eligible 
                        States; and
                    ``(B) the quotient obtained by dividing--
                            ``(i) the amount equal to the average of 
                        the 3 highest 50-percent payments made to each 
                        eligible county during the eligibility period; 
                        by
                            ``(ii) the amount equal to the sum of the 
                        amounts calculated under clause (i) and 
                        paragraph (2)(B)(i) for all eligible counties 
                        in all eligible States during the eligibility 
                        period.
            ``(10) 50-percent payment.--The term `50-percent payment' 
        means the payment that is the sum of the 50-percent share 
        otherwise paid to a county pursuant to title II of the Act of 
        August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f), 
        and the payment made to a county pursuant to the Act of May 24, 
        1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et seq.).
            ``(11) Full funding amount.--The term `full funding amount' 
        means--
                    ``(A) $500,000,000 for fiscal year 2008; and
                    ``(B) for fiscal year 2009 and each fiscal year 
                thereafter, the amount that is equal to 85 percent of 
                the full funding amount for the preceding fiscal year.
            ``(12) Income adjustment.--The term `income adjustment' 
        means the square of the quotient obtained by dividing--
                    ``(A) the per capita personal income for each 
                eligible county; by
                    ``(B) the median per capita personal income of all 
                eligible counties.
            ``(13) Per capita personal income.--The term `per capita 
        personal income' means the most recent per capita personal 
        income data, as determined by the Bureau of Economic Analysis.
            ``(14) Safety net payments.--The term `safety net payments' 
        means the special payment amounts paid to States and counties 
        required by section 13982 or 13983 of the Omnibus Budget 
        Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500 
        note; 43 U.S.C. 1181f note).
            ``(15) Secretary concerned.--The term `Secretary concerned' 
        means--
                    ``(A) the Secretary of Agriculture or the designee 
                of the Secretary of Agriculture with respect to the 
                Federal land described in paragraph (7)(A); and
                    ``(B) the Secretary of the Interior or the designee 
                of the Secretary of the Interior with respect to the 
                Federal land described in paragraph (7)(B).
            ``(16) State payment.--The term `State payment' means the 
        payment for an eligible State calculated under section 101(a).
            ``(17) 25-Percent payment.--The term `25-percent payment' 
        means the payment to States required by the sixth paragraph 
        under the heading of `FOREST SERVICE' in the Act of May 23, 
        1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act 
        of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).

 ``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                  LAND

``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL LAND.

    ``(a) State Payment.--For each of fiscal years 2008 through 2011, 
the Secretary of Agriculture shall calculate for each eligible State an 
amount equal to the sum of the products obtained by multiplying--
            ``(1) the adjusted share for each eligible county within 
        the eligible State; by
            ``(2) the full funding amount for the fiscal year.
    ``(b) County Payment.--For each of fiscal years 2008 through 2011, 
the Secretary of the Interior shall calculate for each eligible county 
that received a 50-percent payment during the eligibility period an 
amount equal to the product obtained by multiplying--
            ``(1) the 50-percent adjusted share for the eligible 
        county; by
            ``(2) the full funding amount for the fiscal year.

``SEC. 102. PAYMENTS TO STATES AND COUNTIES.

    ``(a) Payment Amounts.--Except as provided in section 103, the 
Secretary of the Treasury shall pay to--
            ``(1) a State or territory of the United States an amount 
        equal to the sum of the amounts elected under subsection (b) by 
        each county within the State or territory for--
                    ``(A) if the county is eligible for the 25-percent 
                payment, the share of the 25-percent payment; or
                    ``(B) the share of the State payment of the 
                eligible county; and
            ``(2) a county an amount equal to the amount elected under 
        subsection (b) by each county for--
                    ``(A) if the county is eligible for the 50-percent 
                payment, the 50-percent payment; or
                    ``(B) the county payment for the eligible county.
    ``(b) Election To Receive Payment Amount.--
            ``(1) Election; submission of results.--
                    ``(A) In general.--The election to receive a share 
                of the State payment, the county payment, a share of 
                the State payment and the county payment, a share of 
                the 25-percent payment, the 50-percent payment, or a 
                share of the 25-percent payment and the 50-percent 
                payment, as applicable, shall be made at the discretion 
                of each affected county by August 1, 2008, and August 1 
                of each second fiscal year thereafter, in accordance 
                with paragraph (2), and transmitted to the Secretary 
                concerned by the Governor of each eligible State.
                    ``(B) Failure to transmit.--If an election for an 
                affected county is not transmitted to the Secretary 
                concerned by the date specified under subparagraph (A), 
                the affected county shall be considered to have elected 
                to receive a share of the State payment, the county 
                payment, or a share of the State payment and the county 
                payment, as applicable.
            ``(2) Duration of election.--
                    ``(A) In general.--A county election to receive a 
                share of the 25-percent payment or 50-percent payment, 
                as applicable, shall be effective for 2 fiscal years.
                    ``(B) Full funding amount.--If a county elects to 
                receive a share of the State payment or the county 
                payment, the election shall be effective for all 
                subsequent fiscal years through fiscal year 2011.
            ``(3) Source of payment amounts.--The payment to an 
        eligible State or eligible county under this section for a 
        fiscal year shall be derived from--
                    ``(A) any revenues, fees, penalties, or 
                miscellaneous receipts, exclusive of deposits to any 
                relevant trust fund, special account, or permanent 
                operating funds, received by the Federal Government 
                from activities by the Bureau of Land Management or the 
                Forest Service on the applicable Federal land; and
                    ``(B) to the extent of any shortfall, out of any 
                amounts in the Treasury of the United States not 
                otherwise appropriated.
    ``(c) Distribution and Expenditure of Payments.--
            ``(1) Distribution method.--A State that receives a payment 
        under subsection (a) for Federal land described in section 
        3(7)(A) shall distribute the appropriate payment amount among 
        the appropriate counties in the State in accordance with--
                    ``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
                    ``(B) section 13 of the Act of March 1, 1911 (36 
                Stat. 963; 16 U.S.C. 500).
            ``(2) Expenditure purposes.--Subject to subsection (d), 
        payments received by a State under subsection (a) and 
        distributed to counties in accordance with paragraph (1) shall 
        be expended as required by the laws referred to in paragraph 
        (1).
    ``(d) Expenditure Rules for Eligible Counties.--
            ``(1) Allocations.--
                    ``(A) Use of portion in same manner as 25-percent 
                payment or 50-percent payment, as applicable.--Except 
                as provided in paragraph (3)(B), if an eligible county 
                elects to receive its share of the State payment or the 
                county payment, not less than 80 percent, but not more 
                than 85 percent, of the funds shall be expended in the 
                same manner in which the 25-percent payments or 50-
                percent payment, as applicable, are required to be 
                expended.
                    ``(B) Election as to use of balance.--Except as 
                provided in subparagraph (C), an eligible county shall 
                elect to do 1 or more of the following with the balance 
                of any funds not expended pursuant to subparagraph (A):
                            ``(i) Reserve any portion of the balance 
                        for projects in accordance with title II.
                            ``(ii) Reserve not more than 7 percent of 
                        the total share for the eligible county of the 
                        State payment or the county payment for 
                        projects in accordance with title III.
                            ``(iii) Return the portion of the balance 
                        not reserved under clauses (i) and (ii) to the 
                        Treasury of the United States.
                    ``(C) Counties with modest distributions.--In the 
                case of each eligible county to which more than 
                $100,000, but less than $350,000, is distributed for 
                any fiscal year pursuant to either or both of 
                paragraphs (1)(B) and (2)(B) of subsection (a), the 
                eligible county, with respect to the balance of any 
                funds not expended pursuant to subparagraph (A) for 
                that fiscal year, shall--
                            ``(i) reserve any portion of the balance 
                        for--
                                    ``(I) carrying out projects under 
                                title II;
                                    ``(II) carrying out projects under 
                                title III; or
                                    ``(III) a combination of the 
                                purposes described in subclauses (I) 
                                and (II); or
                            ``(ii) return the portion of the balance 
                        not reserved under clause (i) to the Treasury 
                        of the United States.
            ``(2) Distribution of funds.--
                    ``(A) In general.--Funds reserved by an eligible 
                county under subparagraph (B)(i) or (C)(i) of paragraph 
                (1) for carrying out projects under title II shall be 
                deposited in a special account in the Treasury of the 
                United States.
                    ``(B) Availability.--Amounts deposited under 
                subparagraph (A) shall--
                            ``(i) be available for expenditure by the 
                        Secretary concerned, without further 
                        appropriation; and
                            ``(ii) remain available until expended in 
                        accordance with title II.
            ``(3) Election.--
                    ``(A) Notification.--
                            ``(i) In general.--An eligible county shall 
                        notify the Secretary concerned of an election 
                        by the eligible county under this subsection 
                        not later than September 30 of each fiscal 
                        year.
                            ``(ii) Failure to elect.--Except as 
                        provided in subparagraph (B), if the eligible 
                        county fails to make an election by the date 
                        specified in clause (i), the eligible county 
                        shall--
                                    ``(I) be considered to have elected 
                                to expend 85 percent of the funds in 
                                accordance with paragraph (1)(A); and
                                    ``(II) return the balance to the 
                                Treasury of the United States.
                    ``(B) Counties with minor distributions.--In the 
                case of each eligible county to which less than 
                $100,000 is distributed for any fiscal year pursuant to 
                either or both of paragraphs (1)(B) and (2)(B) of 
                subsection (a), the eligible county may elect to expend 
                all the funds in the same manner in which the 25-
                percent payments or 50-percent payments, as applicable, 
                are required to be expended.
    ``(e) Time for Payment.--The payments required under this section 
for a fiscal year shall be made as soon as practicable after the end of 
that fiscal year.

``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA, OREGON, 
              AND WASHINGTON.

    ``(a) Definitions.--In this section:
            ``(1) Adjusted amount.--The term `adjusted amount' means, 
        with respect to a covered State--
                    ``(A) for fiscal year 2008, 90 percent of--
                            ``(i) the sum of the amounts paid for 
                        fiscal year 2006 under section 102(a)(2) (as in 
                        effect on September 29, 2006) for the eligible 
                        counties in the covered State that have elected 
                        under section 102(b) to receive a share of the 
                        State payment for fiscal year 2008; and
                            ``(ii) the sum of the amounts paid for 
                        fiscal year 2006 under section 103(a)(2) (as in 
                        effect on September 29, 2006) for the eligible 
                        counties in the State of Oregon that have 
                        elected under section 102(b) to receive the 
                        county payment for fiscal year 2008;
                    ``(B) for fiscal year 2009, 76 percent of--
                            ``(i) the sum of the amounts paid for 
                        fiscal year 2006 under section 102(a)(2) (as in 
                        effect on September 29, 2006) for the eligible 
                        counties in the covered State that have elected 
                        under section 102(b) to receive a share of the 
                        State payment for fiscal year 2009; and
                            ``(ii) the sum of the amounts paid for 
                        fiscal year 2006 under section 103(a)(2) (as in 
                        effect on September 29, 2006) for the eligible 
                        counties in the State of Oregon that have 
                        elected under section 102(b) to receive the 
                        county payment for fiscal year 2009; and
                    ``(C) for fiscal year 2010, 65 percent of--
                            ``(i) the sum of the amounts paid for 
                        fiscal year 2006 under section 102(a)(2) (as in 
                        effect on September 29, 2006) for the eligible 
                        counties in the covered State that have elected 
                        under section 102(b) to receive a share of the 
                        State payment for fiscal year 2010; and
                            ``(ii) the sum of the amounts paid for 
                        fiscal year 2006 under section 103(a)(2) (as in 
                        effect on September 29, 2006) for the eligible 
                        counties in the State of Oregon that have 
                        elected under section 102(b) to receive the 
                        county payment for fiscal year 2010.
            ``(2) Covered state.--The term `covered State' means each 
        of the States of California, Oregon, and Washington.
    ``(b) Transition Payments.--For each of fiscal years 2008 through 
2010, in lieu of the payment amounts that otherwise would have been 
made under paragraphs (1)(B) and (2)(B) of section 102(a), the 
Secretary of the Treasury shall pay the adjusted amount to each covered 
State and the eligible counties within the covered State, as 
applicable.
    ``(c) Distribution of Adjusted Amount in Oregon and Washington.--It 
is the intent of Congress that the method of distributing the payments 
under subsection (b) among the counties in the States of Oregon and 
Washington for each of fiscal years 2008 through 2010 be in the same 
proportion that the payments were distributed to the eligible counties 
in fiscal year 2006.
    ``(d) Distribution of Payments in California.--The following 
payments shall be distributed among the eligible counties in the State 
of California in the same proportion that payments under section 
102(a)(2) (as in effect on September 29, 2006) were distributed to the 
eligible counties for fiscal year 2006:
            ``(1) Payments to the State of California under subsection 
        (b).
            ``(2) The shares of the eligible counties of the State 
        payment for California under section 102 for fiscal year 2011.
    ``(e) Treatment of Payments.--For purposes of this Act, any payment 
made under subsection (b) shall be considered to be a payment made 
under section 102(a).

              ``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND

``SEC. 201. DEFINITIONS.

    ``In this title:
            ``(1) Participating county.--The term `participating 
        county' means an eligible county that elects under section 
        102(d) to expend a portion of the Federal funds received under 
        section 102 in accordance with this title.
            ``(2) Project funds.--The term `project funds' means all 
        funds an eligible county elects under section 102(d) to reserve 
        for expenditure in accordance with this title.
            ``(3) Resource advisory committee.--The term `resource 
        advisory committee' means--
                    ``(A) an advisory committee established by the 
                Secretary concerned under section 205; or
                    ``(B) an advisory committee determined by the 
                Secretary concerned to meet the requirements of section 
                205.
            ``(4) Resource management plan.--The term `resource 
        management plan' means--
                    ``(A) a land use plan prepared by the Bureau of 
                Land Management for units of the Federal land described 
                in section 3(7)(B) pursuant to section 202 of the 
                Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1712); or
                    ``(B) a land and resource management plan prepared 
                by the Forest Service for units of the National Forest 
                System pursuant to section 6 of the Forest and 
                Rangeland Renewable Resources Planning Act of 1974l (16 
                U.S.C. 1604).

``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.

    ``(a) Limitation.--Project funds shall be expended solely on 
projects that meet the requirements of this title.
    ``(b) Authorized Uses.--Project funds may be used by the Secretary 
concerned for the purpose of entering into and implementing cooperative 
agreements with willing Federal agencies, State and local governments, 
private and nonprofit entities, and landowners for protection, 
restoration, and enhancement of fish and wildlife habitat, and other 
resource objectives consistent with the purposes of this Act on Federal 
land and on non-Federal land where projects would benefit the resources 
on Federal land.

``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.

    ``(a) Submission of Project Proposals to Secretary Concerned.--
            ``(1) Projects funded using project funds.--Not later than 
        September 30 for fiscal year 2008, and each September 30 
        thereafter for each succeeding fiscal year through fiscal year 
        2011, each resource advisory committee shall submit to the 
        Secretary concerned a description of any projects that the 
        resource advisory committee proposes the Secretary undertake 
        using any project funds reserved by eligible counties in the 
        area in which the resource advisory committee has geographic 
        jurisdiction.
            ``(2) Projects funded using other funds.--A resource 
        advisory committee may submit to the Secretary concerned a 
        description of any projects that the committee proposes the 
        Secretary undertake using funds from State or local 
        governments, or from the private sector, other than project 
        funds and funds appropriated and otherwise available to do 
        similar work.
            ``(3) Joint projects.--Participating counties or other 
        persons may propose to pool project funds or other funds, 
        described in paragraph (2), and jointly propose a project or 
        group of projects to a resource advisory committee established 
        under section 205.
    ``(b) Required Description of Projects.--In submitting proposed 
projects to the Secretary concerned under subsection (a), a resource 
advisory committee shall include in the description of each proposed 
project the following information:
            ``(1) The purpose of the project and a description of how 
        the project will meet the purposes of this title.
            ``(2) The anticipated duration of the project.
            ``(3) The anticipated cost of the project.
            ``(4) The proposed source of funding for the project, 
        whether project funds or other funds.
            ``(5)(A) Expected outcomes, including how the project will 
        meet or exceed desired ecological conditions, maintenance 
        objectives, or stewardship objectives.
            ``(B) An estimate of the amount of any timber, forage, and 
        other commodities and other economic activity, including jobs 
        generated, if any, anticipated as part of the project.
            ``(6) A detailed monitoring plan, including funding needs 
        and sources, that--
                    ``(A) tracks and identifies the positive or 
                negative impacts of the project, implementation, and 
                provides for validation monitoring; and
                    ``(B) includes an assessment of the following:
                            ``(i) Whether or not the project met or 
                        exceeded desired ecological conditions; created 
                        local employment or training opportunities, 
                        including summer youth jobs programs such as 
                        the Youth Conservation Corps where appropriate.
                            ``(ii) Whether the project improved the use 
                        of, or added value to, any products removed 
                        from land consistent with the purposes of this 
                        title.
            ``(7) An assessment that the project is to be in the public 
        interest.
    ``(c) Authorized Projects.--Projects proposed under subsection (a) 
shall be consistent with section 2.

``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY CONCERNED.

    ``(a) Conditions for Approval of Proposed Project.--The Secretary 
concerned may make a decision to approve a project submitted by a 
resource advisory committee under section 203 only if the proposed 
project satisfies each of the following conditions:
            ``(1) The project complies with all applicable Federal laws 
        (including regulations).
            ``(2) The project is consistent with the applicable 
        resource management plan and with any watershed or subsequent 
        plan developed pursuant to the resource management plan and 
        approved by the Secretary concerned.
            ``(3) The project has been approved by the resource 
        advisory committee in accordance with section 205, including 
        the procedures issued under subsection (e) of that section.
            ``(4) A project description has been submitted by the 
        resource advisory committee to the Secretary concerned in 
        accordance with section 203.
            ``(5) The project will improve the maintenance of existing 
        infrastructure, implement stewardship objectives that enhance 
        forest ecosystems, and restore and improve land health and 
        water quality.
    ``(b) Environmental Reviews.--
            ``(1) Request for payment by county.--The Secretary 
        concerned may request the resource advisory committee 
        submitting a proposed project to agree to the use of project 
        funds to pay for any environmental review, consultation, or 
        compliance with applicable environmental laws required in 
        connection with the project.
            ``(2) Conduct of environmental review.--If a payment is 
        requested under paragraph (1) and the resource advisory 
        committee agrees to the expenditure of funds for this purpose, 
        the Secretary concerned shall conduct environmental review, 
        consultation, or other compliance responsibilities in 
        accordance with Federal laws (including regulations).
            ``(3) Effect of refusal to pay.--
                    ``(A) In general.--If a resource advisory committee 
                does not agree to the expenditure of funds under 
                paragraph (1), the project shall be deemed withdrawn 
                from further consideration by the Secretary concerned 
                pursuant to this title.
                    ``(B) Effect of withdrawal.--A withdrawal under 
                subparagraph (A) shall be deemed to be a rejection of 
                the project for purposes of section 207(c).
    ``(c) Decisions of Secretary Concerned.--
            ``(1) Rejection of projects.--
                    ``(A) In general.--A decision by the Secretary 
                concerned to reject a proposed project shall be at the 
                sole discretion of the Secretary concerned.
                    ``(B) No administrative appeal or judicial 
                review.--Notwithstanding any other provision of law, a 
                decision by the Secretary concerned to reject a 
                proposed project shall not be subject to administrative 
                appeal or judicial review.
                    ``(C) Notice of rejection.--Not later than 30 days 
                after the date on which the Secretary concerned makes 
                the rejection decision, the Secretary concerned shall 
                notify in writing the resource advisory committee that 
                submitted the proposed project of the rejection and the 
                reasons for rejection.
            ``(2) Notice of project approval.--The Secretary concerned 
        shall publish in the Federal Register notice of each project 
        approved under subsection (a) if the notice would be required 
        had the project originated with the Secretary.
    ``(d) Source and Conduct of Project.--Once the Secretary concerned 
accepts a project for review under section 203, the acceptance shall be 
deemed a Federal action for all purposes.
    ``(e) Implementation of Approved Projects.--
            ``(1) Cooperation.--Notwithstanding chapter 63 of title 31, 
        United States Code, using project funds the Secretary concerned 
        may enter into contracts, grants, and cooperative agreements 
        with States and local governments, private and nonprofit 
        entities, and landowners and other persons to assist the 
        Secretary in carrying out an approved project.
            ``(2) Best value contracting.--
                    ``(A) In general.--For any project involving a 
                contract authorized by paragraph (1) the Secretary 
                concerned may elect a source for performance of the 
                contract on a best value basis.
                    ``(B) Factors.--The Secretary concerned shall 
                determine best value based on such factors as--
                            ``(i) the technical demands and complexity 
                        of the work to be done;
                            ``(ii)(I) the ecological objectives of the 
                        project; and
                            ``(II) the sensitivity of the resources 
                        being treated;
                            ``(iii) the past experience by the 
                        contractor with the type of work being done, 
                        using the type of equipment proposed for the 
                        project, and meeting or exceeding desired 
                        ecological conditions; and
                            ``(iv) the commitment of the contractor to 
                        hiring highly qualified workers and local 
                        residents.
            ``(3) Merchantable timber contracting pilot program.--
                    ``(A) Establishment.--The Secretary concerned shall 
                establish a pilot program to implement a certain 
                percentage of approved projects involving the sale of 
                merchantable timber using separate contracts for--
                            ``(i) the harvesting or collection of 
                        merchantable timber; and
                            ``(ii) the sale of the timber.
                    ``(B) Annual percentages.--Under the pilot program, 
                the Secretary concerned shall ensure that, on a 
                nationwide basis, not less than the following 
                percentage of all approved projects involving the sale 
                of merchantable timber are implemented using separate 
                contracts:
                            ``(i) For fiscal year 2008, 35 percent.
                            ``(ii) For fiscal year 2009, 45 percent.
                            ``(iii) For each of fiscal years 2010 and 
                        2011, 50 percent.
                    ``(C) Inclusion in pilot program.--The decision 
                whether to use separate contracts to implement a 
                project involving the sale of merchantable timber shall 
                be made by the Secretary concerned after the approval 
                of the project under this title.
                    ``(D) Assistance.--
                            ``(i) In general.--The Secretary concerned 
                        may use funds from any appropriated account 
                        available to the Secretary for the Federal land 
                        to assist in the administration of projects 
                        conducted under the pilot program.
                            ``(ii) Maximum amount of assistance.--The 
                        total amount obligated under this subparagraph 
                        may not exceed $1,000,000 for any fiscal year 
                        during which the pilot program is in effect.
                    ``(E) Review and report.--
                            ``(i) Initial report.--Not later than 
                        September 30, 2010, the Comptroller General 
                        shall submit to the Committees on Agriculture, 
                        Nutrition, and Forestry and Energy and Natural 
                        Resources of the Senate and the Committees on 
                        Agriculture and Natural Resources of the House 
                        of Representatives a report assessing the pilot 
                        program.
                            ``(ii) Annual report.--The Secretary 
                        concerned shall submit to the Committees on 
                        Agriculture, Nutrition, and Forestry and Energy 
                        and Natural Resources of the Senate and the 
                        Committees on Agriculture and Natural Resources 
                        of the House of Representatives an annual 
                        report describing the results of the pilot 
                        program.
    ``(f) Requirements for Project Funds.--The Secretary shall ensure 
that at least 50 percent of all project funds be used for projects that 
are primarily dedicated--
            ``(1) to road maintenance, decommissioning, or 
        obliteration; or
            ``(2) to restoration of streams and watersheds.

``SEC. 205. RESOURCE ADVISORY COMMITTEES.

    ``(a) Establishment and Purpose of Resource Advisory Committees.--
            ``(1) Establishment.--The Secretary concerned shall 
        establish and maintain resource advisory committees to perform 
        the duties in subsection (b), except as provided in paragraph 
        (4).
            ``(2) Purpose.--The purpose of a resource advisory 
        committee shall be--
                    ``(A) to improve collaborative relationships; and
                    ``(B) to provide advice and recommendations to the 
                land management agencies consistent with the purposes 
                of this title.
            ``(3) Access to resource advisory committees.--To ensure 
        that each unit of Federal land has access to a resource 
        advisory committee, and that there is sufficient interest in 
        participation on a committee to ensure that membership can be 
        balanced in terms of the points of view represented and the 
        functions to be performed, the Secretary concerned may, 
        establish resource advisory committees for part of, or 1 or 
        more, units of Federal land.
            ``(4) Existing advisory committees.--
                    ``(A) In general.--An advisory committee that meets 
                the requirements of this section, a resource advisory 
                committee established before September 29, 2006, or an 
                advisory committee determined by the Secretary 
                concerned before September 29, 2006, to meet the 
                requirements of this section may be deemed by the 
                Secretary concerned to be a resource advisory committee 
                for the purposes of this title.
                    ``(B) Charter.--A charter for a committee described 
                in subparagraph (A) that was filed on or before 
                September 29, 2006, shall be considered to be filed for 
                purposes of this Act.
                    ``(C) Bureau of land management advisory 
                committees.--The Secretary of the Interior may deem a 
                resource advisory committee meeting the requirements of 
                subpart 1784 of part 1780 of title 43, Code of Federal 
                Regulations, as a resource advisory committee for the 
                purposes of this title.
    ``(b) Duties.--A resource advisory committee shall--
            ``(1) review projects proposed under this title by 
        participating counties and other persons;
            ``(2) propose projects and funding to the Secretary 
        concerned under section 203;
            ``(3) provide early and continuous coordination with 
        appropriate land management agency officials in recommending 
        projects consistent with purposes of this Act under this title;
            ``(4) provide frequent opportunities for citizens, 
        organizations, tribes, land management agencies, and other 
        interested parties to participate openly and meaningfully, 
        beginning at the early stages of the project development 
        process under this title;
            ``(5)(A) monitor projects that have been approved under 
        section 204; and
            ``(B) advise the designated Federal official on the 
        progress of the monitoring efforts under subparagraph (A); and
            ``(6) make recommendations to the Secretary concerned for 
        any appropriate changes or adjustments to the projects being 
        monitored by the resource advisory committee.
    ``(c) Appointment by the Secretary.--
            ``(1) Appointment and term.--
                    ``(A) In general.--The Secretary concerned, shall 
                appoint the members of resource advisory committees for 
                a term of 4 years beginning on the date of appointment.
                    ``(B) Reappointment.--The Secretary concerned may 
                reappoint members to subsequent 4-year terms.
            ``(2) Basic requirements.--The Secretary concerned shall 
        ensure that each resource advisory committee established meets 
        the requirements of subsection (d).
            ``(3) Initial appointment.--Not later than 180 days after 
        the date of the enactment of this Act, the Secretary concerned 
        shall make initial appointments to the resource advisory 
        committees.
            ``(4) Vacancies.--The Secretary concerned shall make 
        appointments to fill vacancies on any resource advisory 
        committee as soon as practicable after the vacancy has 
        occurred.
            ``(5) Compensation.--Members of the resource advisory 
        committees shall not receive any compensation.
    ``(d) Composition of Advisory Committee.--
            ``(1) Number.--Each resource advisory committee shall be 
        comprised of 15 members.
            ``(2) Community interests represented.--Committee members 
        shall be representative of the interests of the following 3 
        categories:
                    ``(A) 5 persons that--
                            ``(i) represent organized labor or non-
                        timber forest product harvester groups;
                            ``(ii) represent developed outdoor 
                        recreation, off highway vehicle users, or 
                        commercial recreation activities;
                            ``(iii) represent--
                                    ``(I) energy and mineral 
                                development interests; or
                                    ``(II) commercial or recreational 
                                fishing interests;
                            ``(iv) represent the commercial timber 
                        industry; or
                            ``(v) hold Federal grazing or other land 
                        use permits, or represent nonindustrial private 
                        forest land owners, within the area for which 
                        the committee is organized.
                    ``(B) 5 persons that represent--
                            ``(i) nationally recognized environmental 
                        organizations;
                            ``(ii) regionally or locally recognized 
                        environmental organizations;
                            ``(iii) dispersed recreational activities;
                            ``(iv) archaeological and historical 
                        interests; or
                            ``(v) nationally or regionally recognized 
                        wild horse and burro interest groups, wildlife 
                        or hunting organizations, or watershed 
                        associations.
                    ``(C) 5 persons that--
                            ``(i) hold State elected office (or a 
                        designee);
                            ``(ii) hold county or local elected office;
                            ``(iii) represent American Indian tribes 
                        within or adjacent to the area for which the 
                        committee is organized;
                            ``(iv) are school officials or teachers; or
                            ``(v) represent the affected public at 
                        large.
            ``(3) Balanced representation.--In appointing committee 
        members from the 3 categories in paragraph (2), the Secretary 
        concerned shall provide for balanced and broad representation 
        from within each category.
            ``(4) Geographic distribution.--The members of a resource 
        advisory committee shall reside within the State in which the 
        committee has jurisdiction and, to extent practicable, the 
        Secretary concerned shall ensure local representation in each 
        category in paragraph (2).
            ``(5) Chairperson.--A majority on each resource advisory 
        committee shall select the chairperson of the committee.
    ``(e) Approval Procedures.--
            ``(1) In general.--Subject to paragraph (3), each resource 
        advisory committee shall establish procedures for proposing 
        projects to the Secretary concerned under this title.
            ``(2) Quorum.--A quorum must be present to constitute an 
        official meeting of the committee.
            ``(3) Approval by majority of members.--A project may be 
        proposed by a resource advisory committee to the Secretary 
        concerned under section 203(a), if the project has been 
        approved by a majority of members of the committee from each of 
        the 3 categories in subsection (d)(2).
    ``(f) Other Committee Authorities and Requirements.--
            ``(1) Staff assistance.--A resource advisory committee may 
        submit to the Secretary concerned a request for periodic staff 
        assistance from Federal employees under the jurisdiction of the 
        Secretary.
            ``(2) Meetings.--All meetings of a resource advisory 
        committee shall be announced at least 1 week in advance in a 
        local newspaper of record and shall be open to the public.
            ``(3) Records.--A resource advisory committee shall 
        maintain records of the meetings of the committee and make the 
        records available for public inspection.

``SEC. 206. USE OF PROJECT FUNDS.

    ``(a) Agreement Regarding Schedule and Cost of Project.--
            ``(1) Agreement between parties.--The Secretary concerned 
        may carry out a project submitted by a resource advisory 
        committee under section 203(a) using project funds or other 
        funds described in section 203(a)(2), if, as soon as 
        practicable after the issuance of a decision document for the 
        project and the exhaustion of all administrative appeals and 
        judicial review of the project decision, the Secretary 
        concerned and the resource advisory committee enter into an 
        agreement addressing, at a minimum, the following:
                    ``(A) The schedule for completing the project.
                    ``(B) The total cost of the project, including the 
                level of agency overhead to be assessed against the 
                project.
                    ``(C) For a multiyear project, the estimated cost 
                of the project for each of the fiscal years in which it 
                will be carried out.
                    ``(D) The remedies for failure of the Secretary 
                concerned to comply with the terms of the agreement 
                consistent with current Federal law.
            ``(2) Limited use of federal funds.--The Secretary 
        concerned may decide, at the sole discretion of the Secretary 
        concerned, to cover the costs of a portion of an approved 
        project using Federal funds appropriated or otherwise available 
        to the Secretary for the same purposes as the project.
    ``(b) Transfer of Project Funds.--
            ``(1) Initial transfer required.--As soon as practicable 
        after the agreement is reached under subsection (a) with regard 
        to a project to be funded in whole or in part using project 
        funds, or other funds described in section 203(a)(2), the 
        Secretary concerned shall transfer to the applicable unit of 
        National Forest System land or Bureau of Land Management 
        District an amount of project funds equal to--
                    ``(A) in the case of a project to be completed in a 
                single fiscal year, the total amount specified in the 
                agreement to be paid using project funds, or other 
                funds described in section 203(a)(2); or
                    ``(B) in the case of a multiyear project, the 
                amount specified in the agreement to be paid using 
                project funds, or other funds described in section 
                203(a)(2) for the first fiscal year.
            ``(2) Condition on project commencement.--The unit of 
        National Forest System land or Bureau of Land Management 
        District concerned, shall not commence a project until the 
        project funds, or other funds described in section 203(a)(2) 
        required to be transferred under paragraph (1) for the project, 
        have been made available by the Secretary concerned.
            ``(3) Subsequent transfers for multiyear projects.--
                    ``(A) In general.--For the second and subsequent 
                fiscal years of a multiyear project to be funded in 
                whole or in part using project funds, the unit of 
                National Forest System land or Bureau of Land 
                Management District concerned shall use the amount of 
                project funds required to continue the project in that 
                fiscal year according to the agreement entered into 
                under subsection (a).
                    ``(B) Suspension of work.--The Secretary concerned 
                shall suspend work on the project if the project funds 
                required by the agreement in the second and subsequent 
                fiscal years are not available.

``SEC. 207. AVAILABILITY OF PROJECT FUNDS.

    ``(a) Submission of Proposed Projects to Obligate Funds.--By 
September 30 of each fiscal year through fiscal year 2011, a resource 
advisory committee shall submit to the Secretary concerned pursuant to 
section 203(a)(1) a sufficient number of project proposals that, if 
approved, would result in the obligation of at least the full amount of 
the project funds reserved by the participating county in the preceding 
fiscal year.
    ``(b) Use or Transfer of Unobligated Funds.--Subject to section 
208, if a resource advisory committee fails to comply with subsection 
(a) for a fiscal year, any project funds reserved by the participating 
county in the preceding fiscal year and remaining unobligated shall be 
available for use as part of the project submissions in the next fiscal 
year.
    ``(c) Effect of Rejection of Projects.--Subject to section 208, any 
project funds reserved by a participating county in the preceding 
fiscal year that are unobligated at the end of a fiscal year because 
the Secretary concerned has rejected one or more proposed projects 
shall be available for use as part of the project submissions in the 
next fiscal year.
    ``(d) Effect of Court Orders.--
            ``(1) In general.--If an approved project under this Act is 
        enjoined or prohibited by a Federal court, the Secretary 
        concerned shall return the unobligated project funds related to 
        the project to the participating county or counties that 
        reserved the funds.
            ``(2) Expenditure of funds.--The returned funds shall be 
        available for the county to expend in the same manner as the 
        funds reserved by the county under subparagraph (B) or (C)(i) 
        of section 102(d)(1).

``SEC. 208. TERMINATION OF AUTHORITY.

    ``(a) In General.--The authority to initiate projects under this 
title shall terminate on September 30, 2011.
    ``(b) Deposits in Treasury.--Any project funds not obligated by 
September 30, 2012, shall be deposited in the Treasury of the United 
States.

                       ``TITLE III--COUNTY FUNDS

``SEC. 301. DEFINITIONS.

    ``In this title:
            ``(1) County funds.--The term `county funds' means all 
        funds an eligible county elects under section 102(d) to reserve 
        for expenditure in accordance with this title.
            ``(2) Participating county.--The term `participating 
        county' means an eligible county that elects under section 
        102(d) to expend a portion of the Federal funds received under 
        section 102 in accordance with this title.

``SEC. 302. USE.

    ``(a) Authorized Uses.--A participating county, including any 
applicable agencies of the participating county, shall use county 
funds, in accordance with this title, only--
            ``(1) to carry out activities under the Firewise 
        Communities program to provide to homeowners in fire-sensitive 
        ecosystems education on, and assistance with implementing, 
        techniques in home siting, home construction, and home 
        landscaping that can increase the protection of people and 
        property from wildfires;
            ``(2) to reimburse the participating county for search and 
        rescue and other emergency services, including firefighting, 
        that are--
                    ``(A) performed on Federal land after the date on 
                which the use was approved under subsection (b);
                    ``(B) paid for by the participating county; and
            ``(3) to develop community wildfire protection plans in 
        coordination with the appropriate Secretary concerned.
    ``(b) Proposals.--A participating county shall use county funds for 
a use described in subsection (a) only after a 45-day public comment 
period, at the beginning of which the participating county shall--
            ``(1) publish in any publications of local record a 
        proposal that describes the proposed use of the county funds; 
        and
            ``(2) submit the proposal to any resource advisory 
        committee established under section 205 for the participating 
        county.

``SEC. 303. CERTIFICATION.

    ``(a) In General.--Not later than February 1 of the year after the 
year in which any county funds were expended by a participating county, 
the appropriate official of the participating county shall submit to 
the Secretary concerned a certification that the county funds expended 
in the applicable year have been used for the uses authorized under 
section 302(a), including a description of the amounts expended and the 
uses for which the amounts were expended.
    ``(b) Review.--The Secretary concerned shall review the 
certifications submitted under subsection (a) as the Secretary 
concerned determines to be appropriate.

``SEC. 304. TERMINATION OF AUTHORITY.

    ``(a) In General.--The authority to initiate projects under this 
title terminates on September 30, 2011.
    ``(b) Availability.--Any county funds not obligated by September 
30, 2012, shall be returned to the Treasury of the United States.

                  ``TITLE IV--MISCELLANEOUS PROVISIONS

``SEC. 401. REGULATIONS.

    ``The Secretary of Agriculture and the Secretary of the Interior 
shall issue regulations to carry out the purposes of this Act.

``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as are 
necessary to carry out this Act for each of fiscal years 2008 through 
2011.

``SEC. 403. TREATMENT OF FUNDS AND REVENUES.

    ``(a) Relation to Other Appropriations.--Funds made available under 
section 402 and funds made available to a Secretary concerned under 
section 206 shall be in addition to any other annual appropriations for 
the Forest Service and the Bureau of Land Management.
    ``(b) Deposit of Revenues and Other Funds.--All revenues generated 
from projects pursuant to title II, including any interest accrued from 
the revenues, shall be deposited in the Treasury of the United 
States.''.
    (b) Forest Receipt Payments to Eligible States and Counties.--
            (1) Act of may 23, 1908.--The sixth paragraph under the 
        heading ``FOREST SERVICE'' in the Act of May 23, 1908 (16 
        U.S.C. 500) is amended in the first sentence by striking 
        ``twenty-five percentum'' and all that follows through ``shall 
        be paid'' and inserting the following: ``an amount equal to the 
        annual average of 25 percent of all amounts received for the 
        applicable fiscal year and each of the preceding 6 fiscal years 
        from each national forest shall be paid''.
            (2) Weeks law.--Section 13 of the Act of March 1, 1911 
        (commonly known as the ``Weeks Law'') (16 U.S.C. 500) is 
        amended in the first sentence by striking ``twenty-five 
        percentum'' and all that follows through ``shall be paid'' and 
        inserting the following: ``an amount equal to the annual 
        average of 25 percent of all amounts received for the 
        applicable fiscal year and each of the preceding 6 fiscal years 
        from each national forest shall be paid''.
    (c) Payments in Lieu of Taxes.--
            (1) In general.--Section 6906 of title 31, United States 
        Code, is amended to read as follows:
``Sec. 6906. Funding
    ``For fiscal year 2009--
            ``(1) each county or other eligible unit of local 
        government shall be entitled to payment under this chapter; and
            ``(2) sums shall be made available to the Secretary of the 
        Interior for obligation or expenditure in accordance with this 
        chapter.''.
            (2) Conforming amendment.--The table of sections for 
        chapter 69 of title 31, United States Code, is amended by 
        striking the item relating to section 6906 and inserting the 
        following:

``6906. Funding.''.
            (3) Budget scorekeeping.--
                    (A) In general.--Notwithstanding the Budget 
                Scorekeeping Guidelines and the accompanying list of 
                programs and accounts set forth in the joint 
                explanatory statement of the committee of conference 
                accompanying Conference Report 105-217, the amendment 
                made by paragraph (1) shall be treated in the baseline 
                for purposes of section 257 of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 (2 U.S.C. 907) 
                (as in effect before September 30, 2002), by the 
                Chairpersons of the Committee on the Budget of the 
                House of Representatives and the Committee on the 
                Budget of the Senate, as appropriate, for purposes of 
                budget enforcement in the House of Representatives and 
                the Senate, and under the Congressional Budget Act of 
                1974 (2 U.S.C. 601 et seq.) as if Payment in Lieu of 
                Taxes (14-1114-0-1-806) were an account designated as 
                Appropriated Entitlements and Mandatories for Fiscal 
                Year 1997 in the joint explanatory statement of the 
                committee of conference accompanying Conference Report 
                105-217.
                    (B) Effective date.--This paragraph shall--
                            (i) be effective beginning on the date of 
                        enactment of this Act; and
                            (ii) remain in effect for any fiscal year 
                        for which the entitlement in section 6906 of 
                        title 31, United States Code (as amended by 
                        paragraph (1)), applies.

            In lieu of the matter proposed to be inserted by the 
        amendment of the Senate to the title of the bill, amend the 
        title so as to read: ``An Act to move the United States toward 
        greater energy independence and security, to increase the 
        production of clean renewable fuels, to protect consumers, to 
        increase the efficiency of products, buildings, and vehicles, 
        to promote research on and deploy greenhouse gas capture and 
        storage options, and to improve the energy performance of the 
        Federal Government, and for other purposes.''.

            Attest:

                                                                 Clerk.
110th CONGRESS

  1st Session

                                 H.R. 6

_______________________________________________________________________

                 HOUSE AMENDMENTS TO SENATE AMENDMENTS