[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1602 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1602

   To improve the energy security of the United States by promoting 
 diverse energy supplies and energy efficiency, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 12, 2007

   Mr. Hagel introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
   To improve the energy security of the United States by promoting 
 diverse energy supplies and energy efficiency, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short Title; Table of Contents.
Sec. 2. Definition of Secretary.
                      TITLE I--ELECTRICITY SECTOR

Sec. 101. Efficiency in Electricity Use.
Sec. 102. Incentives for Utility Investment in Smart Grid.
Sec. 103. Clean Energy Portfolio Standard.
Sec. 104. Nuclear Fuel Management and Disposal.
Sec. 105. Advanced Coal Generation.
                    TITLE II--TRANSPORTATION SECTOR

Sec. 201. Automobile Fuel Economy.
Sec. 202. Report on Average Fuel Economy of Federal Fleet.
Sec. 203. Traffic Signal Coordination.
Sec. 204. Renewable Content of Diesel Fuel.
Sec. 205. Coal-to-Liquid and Gas-to-Liquid Technologies.
Sec. 206. Availability of Certain Areas of the Outer Continental Shelf 
                            for Leasing.
             TITLE III--BUILDINGS AND MANUFACTURING SECTOR

Sec. 301. Energy Efficiency in Federal Buildings.
Sec. 302. Energy Efficiency in Public Schools.
Sec. 303. Manufacturing Processes and Materials Energy Use Commission.
Sec. 304. Greenfield Study.
                TITLE IV--NATIONAL CLIMATE CHANGE POLICY

Sec. 401. National Greenhouse Gas Emissions Registry.
Sec. 402. Report on Industrial Applications of Carbon Dioxide.
Sec. 403. National Carbon Dioxide Storage Assessment.
Sec. 404. Liability of Full Carbon Storage Facilities and Depleted Oil 
                            Fields.
Sec. 405. Funding.
  TITLE V-- STUDIES, ENERGY DAY, AND REESTABLISHMENT OF THE OFFICE OF 
                        TECHNOLOGICAL ASSESSMENT

                          Subtitle A--Studies

Sec. 501. Study of the Replacement of HVACR Equipment.
Sec. 502. Study on Fuel Economy Standards for Heavy Trucks.
Sec. 503. Study of the Use of Synthetic Fuel in Commercial Aircraft.
Sec. 504. Study of Infrastructure Needs for Significant Use of 
                            Renewable Fuels.
Sec. 505. Study on a Strategic Natural Gas Reserve.
                      Subtitle B--Energy Education

Sec. 511. Energy Day.
Sec. 512. Energy Efficient Education Programs.
             Subtitle C--Office of Technological Assessment

Sec. 521. Reestablishment of the Office of Technological Assessment.
Sec. 522. Authorization of Appropriations.

SEC. 2. DEFINITION OF SECRETARY.

            (1) In this Act, the term ``Secretary'' means the Secretary 
        of Energy.

                      TITLE I--ELECTRICITY SECTOR

SEC. 101. EFFICIENCY IN ELECTRICITY USE.

    (a) Findings.--Congress finds:
            (1) The electricity sector is responsible for 42 percent of 
        the energy consumed and 40 percent of the carbon dioxide 
        emitted in the U.S.
            (2) Energy efficiency is the quickest way to reduce 
        electricity consumption in the U.S.
            (3) The setting of energy efficiency appliance standards 
        requires a new framework in order to speed the diffusion of 
        technological advances into the market place.
            (4) Clean technologies of all kinds are required to enhance 
        the national security of the U.S. and reduce U.S. greenhouse 
        gas emissions. Due to the security implications of clean 
        technologies, electric generators should not be limited in the 
        clean generation technologies available to them for credit.
            (5) Nuclear power requires a waste storage solution. 
        Regardless of any future policy changes, waste storage will 
        always be required.
            (6) Regulations have prevented the dissemination of 
        advanced clean coal generation technology. Increases in 
        efficiency and reducing the need to build new generation 
        facilities should be balanced with clean air standards.
    (b) Appliance Efficiency Standards Commission.--Section 325 of the 
Energy Policy and Conservation Act (42 U.S.C. 6295) is amended by 
adding at the end the following:
    ``(hh) Appliance Efficiency Standards Commission.--
            ``(1) Establishment.--
                    ``(A) Establishment.--There is established a 
                commission to be known as the `Appliance Efficiency 
                Standards Commission' (referred to in this subsection 
                as the `Commission').
                    ``(B) Membership.--
                            ``(i) Composition.--The Commission shall be 
                        composed of 14 members appointed by the 
                        President, of whom--
                                    ``(I) 5 members shall be appointed 
                                to represent energy and manufacturing 
                                industries;
                                    ``(II) 3 members shall be appointed 
                                to represent consumer organizations;
                                    ``(III) 2 members shall be 
                                appointed from nongovernmental 
                                organizations that specialize in energy 
                                efficiency, environmental protection, 
                                or consumer advocacy; and
                                    ``(IV) 1 member shall be appointed 
                                from each of--
                                            ``(aa) the Department of 
                                        Commerce;
                                            ``(bb) the National Academy 
                                        of Sciences;
                                            ``(cc) the Department of 
                                        Energy; and
                                            ``(dd) the Environmental 
                                        Protection Agency.
                            ``(ii) Date of appointments.--The 
                        appointment of a member of the Commission shall 
                        be made not later than 90 days after the date 
                        of enactment of this subsection.
                    ``(C) Term; vacancies.--
                            ``(i) Term.--Subject to clause (ii), the 
                        term of office of a member of the Commission 
                        shall be 3 years.
                            ``(ii) Staggered initial terms.--Of the 
                        initial members of the Commission appointed 
                        under clause (i), the term of office of--
                                    ``(I) 5 members shall be 3 years;
                                    ``(II) 5 members shall be 2 years; 
                                and
                                    ``(III) 4 members shall be 1 year.
                            ``(iii) Vacancies.--A vacancy on the 
                        Commission--
                                    ``(I) shall not affect the powers 
                                of the Commission; and
                                    ``(II) shall be filled in the same 
                                manner as the original appointment was 
                                made.
                    ``(D) Initial meeting.--Not later than 30 days 
                after the date on which all members of the Commission 
                have been appointed, the Commission shall hold the 
                initial meeting of the Commission.
                    ``(E) Meetings.--The Commission shall meet at the 
                call of the Chairperson.
                    ``(F) Quorum.--A majority of the members of the 
                Commission shall constitute a quorum, but a lesser 
                number of members may hold hearings.
                    ``(G) Chairperson and vice chairperson.--The 
                Commission shall select a Chairperson and Vice 
                Chairperson from among the members of the Commission.
            ``(2) Duties.--The Commission shall--
                    ``(A) conduct ongoing studies of the establishment 
                or improvement of energy conservation standards and 
                test protocols for consumer goods and appliances that 
                will reduce the use of electricity use of consumer 
                products and improve the competitiveness of the United 
                States; and
                    ``(B) based on the studies, make recommendations to 
                the Secretary for the establishment or improvement of 
                energy conservation standards and test protocols 
                through expedited rulemaking under subsection (ii).
            ``(3) Powers.--
                    ``(A) Hearings.--The Commission may hold such 
                hearings, meet and act at such times and places, take 
                such testimony, and receive such evidence as the 
                Commission considers advisable to carry out this 
                subsection.
                    ``(B) Information from federal agencies.--
                            ``(i) In general.--The Commission may 
                        secure directly from a Federal agency such 
                        information as the Commission considers 
                        necessary to carry out this subsection.
                            ``(ii) Provision of information.--On 
                        request of the Chairperson of the Commission, 
                        the head of the agency shall provide the 
                        information to the Commission.
                    ``(C) Postal services.--The Commission may use the 
                United States mails in the same manner and under the 
                same conditions as other agencies of the Federal 
                Government.
                    ``(D) Gifts.--The Commission may accept, use, and 
                dispose of gifts or donations of services or property.
            ``(4) Commission personnel matters.--
                    ``(A) Compensation of members.--
                            ``(i) Non-federal employees.--A member of 
                        the Commission who is not an officer or 
                        employee of the Federal Government shall be 
                        compensated at a rate equal to the daily 
                        equivalent of the annual rate of basic pay 
                        prescribed for level IV of the Executive 
                        Schedule under section 5315 of title 5, United 
                        States Code, for each day (including travel 
                        time) during which the member is engaged in the 
                        performance of the duties of the Commission.
                            ``(ii) Federal employees.--A member of the 
                        Commission who is an officer or employee of the 
                        Federal Government shall serve without 
                        compensation in addition to the compensation 
                        received for the services of the member as an 
                        officer or employee of the Federal Government.
                    ``(B) Travel expenses.--A member of the Commission 
                shall be allowed travel expenses, including per diem in 
                lieu of subsistence, at rates authorized for an 
                employee of an agency under subchapter I of chapter 57 
                of title 5, United States Code, while away from the 
                home or regular place of business of the member in the 
                performance of the duties of the Commission.
                    ``(C) Staff.--
                            ``(i) In general.--The Chairperson of the 
                        Commission may, without regard to the civil 
                        service laws (including regulations), appoint 
                        and terminate an executive director and such 
                        other additional personnel as are necessary to 
                        enable the Commission to perform the duties of 
                        the Commission.
                            ``(ii) Confirmation of executive 
                        director.--The employment of an executive 
                        director shall be subject to confirmation by 
                        the Commission.
                            ``(iii) Compensation.--
                                    ``(I) In general.--Except as 
                                provided in subparagraph (B), the 
                                Chairperson of the Commission may fix 
                                the compensation of the executive 
                                director and other personnel without 
                                regard to the provisions of chapter 51 
                                and subchapter III of chapter 53 of 
                                title 5, United States Code, relating 
                                to classification of positions and 
                                General Schedule pay rates.
                                    ``(II) Maximum rate of pay.--The 
                                rate of pay for the executive director 
                                and other personnel shall not exceed 
                                the rate payable for level V of the 
                                Executive Schedule under section 5316 
                                of title 5, United States Code.
                    ``(D) Detail of federal government employees.--
                            ``(i) In general.--An employee of the 
                        Federal Government may be detailed to the 
                        Commission without reimbursement.
                            ``(ii) Civil service status.--The detail of 
                        the employee shall be without interruption or 
                        loss of civil service status or privilege.
                    ``(E) Procurement of temporary and intermittent 
                services.--The Chairperson of the Commission may 
                procure temporary and intermittent services in 
                accordance with section 3109(b) of title 5, United 
                States Code, at rates for individuals that do not 
                exceed the daily equivalent of the annual rate of basic 
                pay prescribed for level V of the Executive Schedule 
                under section 5316 of that title.
            ``(5) Administration.--Section 14 of the Federal Advisory 
        Committee Act (5 U.S.C. App.) shall not apply to the 
        Commission.
            ``(6) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection, to remain available until 
        expended.''.
    (c) Expedited Rulemakings.--Section 325 of the Energy Policy and 
Conservation Act (42 U.S.C. 6295) (as amended by subsection (b)) is 
amended by adding at the end the following:
    ``(ii) Expedited Rulemaking for Standards Recommended by Appliance 
Efficiency Standards Commission.--
            ``(1) In general.--The Secretary shall conduct an expedited 
        rulemaking based on each energy conservation standard or test 
        procedure recommended by the Appliance Efficiency Standards 
        Commission established under subsection (hh).
            ``(2) Procedure.--
                    ``(A) In general.--Notwithstanding subsection (p) 
                or section 336(a), if the Secretary receives a 
                recommendation of the Appliance Efficiency Standards 
                Commission, the Secretary shall conduct an expedited 
                rulemaking with respect to the standard or test 
                procedure proposed in the recommendation in accordance 
                with this paragraph.
                    ``(B) Advanced notice of proposed rulemaking.--If 
                no advanced notice of proposed rulemaking has been 
                issued under subsection (p)(1) with respect to the 
                rulemaking covered by the recommendation, the 
                requirements of subsection (p) with respect to the 
                issuance of an advanced notice of proposed rulemaking 
                shall not apply.
                    ``(C) Proposed rule.--
                            ``(i) Publication.--Not later than 30 days 
                        after the receipt of a recommendation described 
                        in paragraph (1), the Secretary shall publish a 
                        proposed rule proposing the standard or test 
                        procedure covered by the recommendation.
                            ``(ii) Public comment period.--
                        Notwithstanding paragraphs (2) and (3) of 
                        subsection (p), the public comment period for 
                        the proposed rule shall be the 30-day period 
                        beginning on the date of publication of the 
                        proposed rule in the Federal Register.
                            ``(iii) Public hearing.--Notwithstanding 
                        section 336(a), the Secretary may waive the 
                        holding of a public hearing with respect to the 
                        proposed rule.
                    ``(D) Final rule.--Notwithstanding subsection 
                (p)(4), the Secretary--
                            ``(i) may publish a final rule at any time 
                        after the 60-day period beginning on the date 
                        of publication of the proposed rule in the 
                        Federal Register; and
                            ``(ii) shall publish a final rule not later 
                        than 120 days after the date of publication of 
                        the proposed rule in the Federal Register.''.

SEC. 102. INCENTIVES FOR UTILITY INVESTMENT IN SMART GRID.

    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) Utility investment in smart grid investments.--Each 
        electric utility shall, before undertaking investments in 
        nonadvanced grid technologies, demonstrate that alternative 
        investments in advanced grid technologies have been considered, 
        including from a standpoint of cost-effectiveness.
            ``(17) Smart grid incentives.--Each electric utility shall 
        be permitted--
                    ``(A) to recover from ratepayers the capital and 
                operating expenditures and other costs incurred by the 
                utility for a qualified smart grid system, including an 
                enhanced rate of return on the capital expenditures of 
                the utility for the smart grid system; and
                    ``(B) to recover in a timely manner the costs of 
                equipment rendered obsolete by the deployment of a 
                smart grid system, based on the remaining depreciable 
                life of the obsolete equipment.''.

SEC. 103. CLEAN ENERGY PORTFOLIO STANDARD.

    Title VI of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2601 et seq.) is amended by adding at the end the following:

``SEC. 610. CLEAN ENERGY PORTFOLIO STANDARD.

    ``(a) Findings.--Congress finds that--
            ``(1) the development of clean energy resources of the 
        United States is a matter of national security and energy 
        security;
            ``(2) a Federal clean energy portfolio standard will help 
        improve the air quality of the United States by increasing the 
        use of electricity generating technologies without the 
        production of harmful emissions;
            ``(3) a clean energy portfolio standard may--
                    ``(A) help diversify fuel sources used for 
                electricity generation;
                    ``(B) encourage the conservation of energy sources;
                    ``(C) provide more reliable electricity through 
                diversification and conservation, thus reducing the 
                overall cost of electric generation;
                    ``(D) promote renewable generation technologies; 
                and
                    ``(E) significantly reduce future carbon dioxide 
                emissions;
            ``(4) a Federal clean energy portfolio standard should be 
        applied to the total electric sales made by retailers to 
        consumers--
                    ``(A) to ensure the most effective use of resources 
                and facilities in existence on the date of enactment of 
                this section; and
                    ``(B) to ensure that a significant portion of the 
                increased future demand for electricity is served by 
                clean energy resources;
            ``(5) approximately 30 percent of the total sales of 
        electricity in the United States is generated through clean 
        energy resources such as hydropower, nuclear, and renewable 
        technologies; and
            ``(6) it is the goal of a Federal clean energy portfolio 
        standard that 50 percent of the total retail sales of 
        electricity in the Untied States be generated through clean 
        energy resources by calendar year 2035.
    ``(b) Definitions.--In this section:
            ``(1) Associate company.--The term `associate company' has 
        the meaning given the term in section 1262 of the Public 
        Utility Holding Company Act of 2005 (42 U.S.C. 16451).
            ``(2) Base quantity of a retail electric supplier.--The 
        term `base quantity of a retail electric supplier' means the 
        average annual quantity of electric energy, expressed in terms 
        of kilowatt-hours, sold by a retail electric supplier to 
        electric consumers for purposes--
                    ``(A) other than resale during calendar years 2010 
                to 2012; or
                    ``(B) as otherwise determined by the Secretary.
            ``(3) Biomass.--
                    ``(A) In general.--The term `biomass' means any 
                organic material that is available on a renewable or 
                recurring basis, including--
                            ``(i) dedicated energy crops;
                            ``(ii) trees grown for energy production;
                            ``(iii) wood waste and wood residues;
                            ``(iv) plants (including aquatic plants, 
                        grasses and agricultural crops);
                            ``(v) residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other organic 
                        waste materials; and
                            ``(viii) fats and oils.
                    ``(B) Inclusions.--The term `biomass' includes only 
                organic material from--
                            ``(i) thinnings from trees that are less 
                        than 12 inches in diameter;
                            ``(ii) slash;
                            ``(iii) brush; and
                            ``(iv) mill residues.
                    ``(C) Exclusions.--The term `biomass' does not 
                include any material removed from National Forest 
                System land, unless the removal is part of a forest 
                management plan.
            ``(4) Clean energy.--The term `clean energy' means electric 
        energy generated by a clean energy resource.
            ``(5) Clean energy resource.--
                    ``(A) In general.--The term `clean energy resource' 
                means energy from--
                            ``(i) solar energy;
                            ``(ii) wind;
                            ``(iii) ocean energy (including tidal, 
                        wave, and current);
                            ``(iv) geothermal energy;
                            ``(v) fuel cells (including zero emission 
                        regenerative fuel cell technology);
                            ``(vi) solid waste (as that term is defined 
                        in section 1004 of the Solid Waste Disposal Act 
                        (42 U.S.C. 6903));
                            ``(vii) renewable natural gas;
                            ``(viii) landfill gas;
                            ``(ix) qualified hydropower production (as 
                        that term is defined in section 45(c)(8) of the 
                        Internal Revenue Code of 1986); and
                            ``(x) an inherently low-emission facility.
                    ``(B) Authorization to expand term.--In 
                promulgating regulations under subsection (q), the 
                Secretary may expand the definition of the term `clean 
                energy resource' to include new technologies or sources 
                that the Secretary determines to have characteristics 
                in common with other energy resources listed in this 
                subsection.
            ``(6) Demand-side management.--The term `demand-side 
        management' means--
                    ``(A) an electric retailer assistance of management 
                of customer consumption of electricity of the demand 
                for electricity through--
                            ``(i) the implementation of energy-
                        efficiency technologies;
                            ``(ii) the use of real-time or other 
                        information systems that provide relevant data 
                        to electricity consumers regarding--
                                    ``(I) rate of consumption;
                                    ``(II) cost per kilowatt hour 
                                during peak and off-peak hours; or
                                    ``(III) any other information that 
                                would assist electricity consumers in 
                                making informed decisions regarding the 
                                use of electricity; or
                            ``(iii) any other program approved by the 
                        Secretary that would assist in the management 
                        of customer consumption or demand for 
                        electricity which can be directly attributable 
                        to the resources invested in the approved 
                        program;
                    ``(B) management practices of an electric retailer 
                or other measures relating to residential, commercial, 
                industrial, institutional, or governmental customers 
                that reduce electricity consumption by those customers 
                or industrial by-product technologies consisting of the 
                use of a by-product from an industrial process 
                (including the reuse of energy from exhaust gases or 
                other manufacturing byproducts that are used in the 
                direct production of electricity at the facility of a 
                customer);
                    ``(C) electricity providers assistance in the 
                implementation of and expanded use of distributed 
                generation technologies, including on-site renewable 
                energy systems and fuel cells;
                    ``(D) energy efficiency technologies, including--
                            ``(i) generation technologies to improve 
                        efficiency; and
                            ``(ii) grid technologies to reduce line 
                        losses and improve transmission efficiency; and
                    ``(E) other demand management techniques or 
                processes whose effectiveness can be accounted for as 
                approved by the Secretary.
            ``(7) Expenditures on eligible demand-side management 
        products or services.--The term `expenditures on eligible 
        demand-side management products or services' means expenditures 
        incurred for demand-side management measures offered by a 
        retail electric supplier pursuant to energy conservation, 
        efficiency, and demand-side management plans and programs that 
        are--
                    ``(A) established under a law (including a 
                regulation) of a State; and
                    ``(B) approved by the appropriate regulatory 
                authorities of the State.
            ``(8) Incremental cost of energy.--The term `incremental 
        cost of energy' means--
                    ``(A) the cost to the electric utility for the 
                purchase of energy associated with the acquisition of 
                clean energy credits or for the generation of energy to 
                satisfy the minimum clean energy generation requirement 
                of subsection (d), including any receipt and delivery 
                costs incurred by the electric utility; and
                    ``(B) the cost to the electric utility for 
                acquiring renewable energy credits to satisfy the 
                minimum clean energy generation requirement of 
                subsection (d), including any cost associated with--
                            ``(i) alternative compliance payments;
                            ``(ii) credit or certificate purchases; or
                            ``(iii) other financial compliance payments 
                        made to a State.
            ``(9) Incremental electric sales of a retail electric 
        supplier.--The term `incremental electric sales of a retail 
        electric supplier' means the difference between--
                    ``(A) the quantity of sales of a retail electric 
                supplier to electric consumers in a given year; and
                    ``(B) the base quantity of a retail electric 
                supplier.
            ``(10) Inherently low-emission facility.--
                    ``(A) In general.--The term `inherently low-
                emission facility' means--
                            ``(i) an integrated gasification combine 
                        cycle generation facility or other coal-fired 
                        or gas-fired generation technology that 
                        provides for--
                                    ``(I) the future capture and 
                                sequestration of carbon provided that 
                                carbon capture and sequestration 
                                technology is commercially viable as 
                                determined by the Secretary; and
                                    ``(II) a reduction of emissions; 
                                and
                            ``(ii) a new nuclear power facility.
                    ``(B) Authorization to expand term.--In 
                promulgating regulations under subsection (q), the 
                Secretary may expand the definition of the term 
                `inherently low-emission facility' to include new 
                technologies that the Secretary determines to have 
                characteristics in common with other energy resources 
                listed in this subsection.
            ``(11) Indian land.--The term `Indian land' means--
                    ``(A) any land located within the boundaries of any 
                Indian reservation, pueblo, or rancheria;
                    ``(B) any land not located within the boundaries of 
                any indian reservation, pueblo, or rancheria, title to 
                which was, on the date of enactment of this section, 
                held by--
                            ``(i) the United States for the benefit of 
                        any Indian tribe or individual; or
                            ``(ii) any Indian tribe or individual 
                        subject to a restriction against alienation by 
                        the United States;
                    ``(C) any dependent Indian community; and
                    ``(D) any land conveyed to any Alaska Native 
                corporation under the Alaska Native Claims Settlement 
                Act (43 U.S.C. 1601 et seq.).
            ``(12) 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).
            ``(13) Necessary costs.--The term `necessary costs' means 
        any costs associated with--
                    ``(A) the purchase of--
                            ``(i) a clean energy credit; and
                            ``(ii) any associated energy;
                    ``(B) the generation of a clean energy credit; and
                    ``(C) the firming, shaping, balancing, backup, and 
                delivery services prudently incurred to maintain a 
                reliable and well-functioning electric system that 
                incorporates energy from a clean energy resource.
            ``(14) New nuclear power.--The term `new nuclear power' 
        means--
                    ``(A) electric energy that is generated from a 
                nuclear facility placed in service after January 1, 
                2012; or
                    ``(B) electric energy that is generated from an 
                existing facility that has been uprated after January 
                1, 2012 and is calculated by the difference between--
                            ``(i) average output prior to the uprate; 
                        and
                            ``(ii) the average output after the uprate.
            ``(15) Receipt and delivery costs.--
                    ``(A) In general.--The term `receipt and delivery 
                costs' means any costs associated with the receipt of 
                energy on the system of the electric utility and the 
                delivery of the energy to the retail loads of the 
                electric utility through--
                            ``(i) transmission facilities in existence 
                        on the date of enactment of this section; and
                            ``(ii) transmission facilities newly 
                        constructed after the date of enactment of this 
                        section.
                    ``(B) Inclusions.--The term `receipt and delivery 
                costs' includes--
                            ``(i) any transmission and distribution 
                        cost or charge;
                            ``(ii) any loss and associated ancillary 
                        service charge--
                                    ``(I) assessed by any applicable 
                                transmission provider; or
                                    ``(II) provided for pursuant to the 
                                Commission-accepted open access 
                                transmission tariff of the electric 
                                utility; and
                            ``(iii) any firming, shaping, backup, or 
                        delivery services required by the electric 
                        utility to balance clean energy.
            ``(16) Retail electric supplier.--The term `retail electric 
        supplier' means--
                    ``(A) an individual or entity that sold not less 
                than 500,000 megawatt hours of electric energy to 
                electric consumers for purposes other than resale in 
                any calendar year before January 1, 2015; and
                    ``(B) an individual or entity that first sold 
                electric energy to electric consumers for purposes 
                other than resale after January 1, 2015.
            ``(17) Sequestration.--The term `sequestration' means the 
        capture and storage of carbon in--
                    ``(A) biological organisms capable of the capture 
                and storage of carbon; or
                    ``(B) geological or geophysical structures that can 
                hold carbon and carbon molecules underground for a 
                period of at least 100 years or such other period as is 
                determined by the Secretary.
            ``(18) State renewable standard program.--The term `State 
        renewable standard program' means a program that--
                    ``(A) requires the generation or purchase of 
                electricity from renewable energy;
                    ``(B) provides for--
                            ``(i) alternative compliance payments in 
                        satisfaction of applicable State requirements 
                        under the program;
                            ``(ii) compliance through acquisition of 
                        certificates or credits; or
                            ``(iii) other financial compliance 
                        mechanisms; or
                    ``(C) imposes a penalty in the event of a failure 
                to meet applicable requirements.
    ``(c) Calculation of Base Quantity.--Not later than 2 years after 
the date of enactment of this section, the Secretary shall promulgate 
regulations to establish--
            ``(1) the calculation of the base quantity of electric 
        retail suppliers that initiate sales after January 1, 2010; and
            ``(2) the manner by which adjustments shall be made for--
                    ``(A) material changes in marketing patterns; and
                    ``(B) other unusual circumstances during or after 
                the base period.
    ``(d) Clean Energy Generation Requirement.--
            ``(1) Requirement.--
                    ``(A) Submission of clean energy credits.--
                            ``(i) In general.--Subject to clause (ii), 
                        for each calendar year beginning in calendar 
                        year 2012, each retail supplier shall submit to 
                        the Secretary, not later than April 1 of each 
                        following calendar year, clean energy credits 
                        in an amount equal to the required annual 
                        percentage described in paragraph (2).
                            ``(ii) Exception.--A retail electric 
                        supplier shall not be required to submit clean 
                        energy credits--
                                    ``(I) in a quantity greater than 
                                the incremental electric sales of a 
                                retail electric supplier to electric 
                                consumers in excess of the base 
                                quantity of the retail electric 
                                supplier established under subsection 
                                (c)(1); and
                                    ``(II) during the time period for 
                                which the President or the Governor of 
                                the State in which the retail electric 
                                supplier sells electricity has declared 
                                a state of emergency caused by a 
                                natural or manmade disaster.
            ``(2) Percentages.--The required annual percentage 
        described in this paragraph for a calendar year shall be not 
        less than the percentage specified in the following table for 
        the calendar year:

``Calendar Year                               Minimum Annual Percentage
    2012-2017.....................................           5 percent 
    2018-2023.....................................          10 percent 
    2024-2029.....................................          15 percent 
    2030 and thereafter...........................          20 percent.
            ``(3) Means of compliance.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                order to satisfy the requirement of paragraph (1), a 
                retail electric supplier may submit to the Secretary 
                clean energy credits--
                            ``(i) issued to the retail electric 
                        supplier under subsections (e) and (h);
                            ``(ii) obtained by purchase or exchange 
                        under subsection (f);
                            ``(iii) borrowed under subsection (i); or
                            ``(iv) purchased from the Secretary under 
                        subsection (j).
                    ``(B) Limitations.--
                            ``(i) Limitation on use of credits relating 
                        to sequestration or retrofit technologies.--Not 
                        more than 10 percent of the obligation of a 
                        retail electric supplier under paragraph (1) 
                        may be satisfied through use of credits issued 
                        under subsection (e)(7)(C).
                            ``(ii) Limitation on counting of credits.--
                        A clean energy credit may be counted toward 
                        compliance with paragraph (1) not more than 
                        once.
    ``(e) Issuance of Credits.--
            ``(1) Establishment of program.--Not later than 1 year 
        after the date of enactment of this section, the Secretary 
        shall establish, by regulation, a program--
                    ``(A) to issue clean energy credits;
                    ``(B) to monitor the sale or exchange of clean 
                energy credits; and
                    ``(C) to track clean energy credits.
            ``(2) Application for credits.--
                    ``(A) In general.--In accordance with the program 
                established under paragraph (1), an individual or 
                entity that generates electric energy through the use 
                of a clean energy resource may apply to the Secretary 
                for the issuance of clean energy credits.
                    ``(B) Entities that generate electricity outside 
                the united states.--
                            ``(i) Demonstration of domestic 
                        consumption.--If the electricity generated by 
                        an applicant is generated outside the United 
                        States, the applicant shall demonstrate to the 
                        Secretary that the electricity is sold for 
                        ultimate consumption in the United States.
                            ``(ii) Application requirements.--The 
                        applicant shall submit to the Secretary an 
                        application that includes--
                                    ``(I) the type of clean energy 
                                resource used to produce the 
                                electricity;
                                    ``(II) the location at which the 
                                electric energy was produced;
                                    ``(III) the quantity of electricity 
                                generated by the clean energy resource; 
                                and
                                    ``(IV) any other appropriate 
                                information, as determined by the 
                                Secretary.
            ``(3) Eligibility.--
                    ``(A) In general.--To be eligible for a clean 
                energy credit, a unit of electric energy generated 
                through the use of a clean energy resource shall be 
                sold or used by the generator.
                    ``(B) Energy produced by clean and non-clean energy 
                resources.--If a clean energy resource and a nonclean 
                energy resource are combined to generate electric 
                energy, the Secretary shall issue clean energy credits 
                based on the proportion that the quantity of clean 
                energy resources used to generate the electric energy 
                bears to the total quantity of energy resources used to 
                generate the electric energy.
                    ``(C) Existing fossil-fired power facilities.--An 
                existing coal-fired or gas-fired power facility that is 
                retrofitted shall be eligible for a clean energy credit 
                to the extent that the facility is considered an 
                inherently low-emission facility.
            ``(4) Identification of credits.--The Secretary shall 
        identify clean energy credits by type and year of generation.
            ``(5) Treatment of certain retail electric suppliers.--If a 
        generator sells electric energy generated through the use of a 
        clean energy resource to a retail electric supplier under a 
        contract subject to section 210, or pursuant to a State net 
        metering program, the retail electric supplier shall be treated 
        as the generator of the electric energy for the purposes of 
        this section for the duration of the contract.
            ``(6) Establishment of a verification program.--Not later 
        than 1 year after the date of confirmation that such technology 
        is commercially viable as determined by the Secretary, the 
        Secretary shall establish, by regulation, a program for 
        verifying the reduction of carbon dioxide emissions into the 
        atmosphere through--
                    ``(A) permanent geological sequestration;
                    ``(B) biosequestration; or
                    ``(C) other verifiably permanent reductions in 
                carbon dioxide emissions from the retrofit of power 
                plants in existence on the date of enactment of this 
                section with technology that permanently reduces carbon 
                dioxide emissions--
                            ``(i) in proportion to the net power output 
                        of the power plant; or
                            ``(ii) from industrial or other sources.
            ``(7) Issuance of credits.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, not later than January 1, 2012, and 
                annually thereafter, the Secretary shall issue to each 
                individual or entity that generates electric energy 1 
                clean energy credit for each kilowatt-hour of electric 
                energy that the individual or entity generated through 
                the use of clean energy resources during the preceding 
                calendar year.
                    ``(B) Credits for sequestered carbon dioxide.--
                            ``(i) In general.--The Secretary shall 
                        issue 1,000 credits for each ton of carbon 
                        dioxide that has been--
                                    ``(I) verifiably sequestered and 
                                reduced; or
                                    ``(II) verifiably sequestered 
                                through biosequestration.
                            ``(ii) Value and use of credit.--A credit 
                        issued under clause (i)--
                                    ``(I) shall have the same value as 
                                a credit issued under any other 
                                subparagraph of this paragraph; and
                                    ``(II) may be used to comply with 
                                the minimum generation requirements 
                                under paragraphs (1) and (2) or 
                                subsection (d), except as provided in 
                                subsection (d)(3)(B)(i).
                            ``(iii) Projects located outside the united 
                        states.--A biosequestration project located 
                        outside the United States (other than on Indian 
                        land) shall not be eligible to receive credits 
                        under clause (i).
                    ``(C) Credits for facilities located on indian 
                land.--
                            ``(i) In general.--The Secretary shall 
                        issue 2 clean energy credits for each kilowatt-
                        hour of electric energy generated and supplied 
                        to the grid during the preceding calendar year 
                        through the use of clean energy at a facility 
                        located on Indian land.
                            ``(ii) Location requirement.--A facility 
                        shall receive 2 energy credits for each 
                        kilowatt-hour of electric energy generated 
                        under subparagraph (A), if the electric energy 
                        was produced by biomass grown on Indian land.
                    ``(D) Credits for entities subject to a state 
                renewable standard program.--
                            ``(i) In general.--The Secretary shall 
                        issue to a retail electric supplier that is 
                        subject to a State renewable standard program 
                        clean energy credits in a quantity that 
                        corresponds to the kilowatt-hour obligation--
                                    ``(I) represented by the State 
                                alternative compliance payment, credit 
                                or certificate payment, or other 
                                financial compliance payment (or a 
                                penalty payment as though that payment 
                                had been made to the Secretary under 
                                subsection (k)); or
                                    ``(II) satisfied under the State 
                                renewable standard program through the 
                                use of an eligible technology or 
                                eligible resource, as defined by the 
                                State.
                            ``(ii) Use of credits.--A clean energy 
                        credit issued by the Secretary to a retail 
                        electric supplier that is subject to a State 
                        renewable standard program under clause (i) may 
                        be--
                                    ``(I) applied against the required 
                                annual percentage of the retail 
                                electric supplier under subsection 
                                (d)(2); or
                                    ``(II) transferred for use only by 
                                an associate company of the retail 
                                electric supplier.
                    ``(E) Credits for eligible demand-side management 
                products or services.--
                            ``(i) In general.--The Secretary shall 
                        issue to a retail electric supplier that 
                        provides eligible demand-side management 
                        products or services clean energy credits in a 
                        quantity that corresponds to the amount of 
                        expenditures of eligible demand-side management 
                        products or services as though those 
                        expenditures had been payments made to the 
                        Secretary under subsection (k).
                            ``(ii) Use of credits.--A clean energy 
                        credit issued by the Secretary under clause (i) 
                        may be--
                                    ``(I) applied against the required 
                                annual percentage of the retail 
                                electric supplier under subsection 
                                (d)(2); or
                                    ``(II) transferred for use only by 
                                an associate company of the retail 
                                electric supplier.
                    ``(F) Credits for new nuclear power facilities.--
                The Secretary shall issue to a new nuclear power 
                facility that qualifies as an inherently low-emission 
                facility 1 credit for each kilowatt-hour of production 
                generated by the new nuclear power facility.
                    ``(G) Credits for new clean coal technology.--The 
                Secretary shall issue to a new clean-coal technology 
                power facility that qualifies as an inherently low-
                emission facility--
                            ``(i) 1 credit for each kilowatt-hour of 
                        production generated by the new clean-coal 
                        technology power facility; and
                            ``(ii) credits issued in accordance with 
                        subparagraph (B).
    ``(f) Trading Credits.--
            ``(1) In general.--Subject to paragraph (2), an individual 
        or entity that has earned credits under subsection (e)(7) may 
        sell or transfer to, or exchange credits with, any other 
        individual or entity.
            ``(2) Exception.--Clean energy credits issued by the 
        Secretary pursuant to subparagraphs (D) and (E) of subsection 
        (e)(7) may only be sold, transferred to, or exchanged with, any 
        individual or entity within the State in which the credits are 
        issued.
    ``(g) Duration of Validity.--A clean energy credit issued by the 
Secretary under subsection (e)(7) for any year that is not used to 
satisfy the minimum annual percentage requirement of subsection (d)(1) 
for that calendar year may be carried forward for use in any subsequent 
calendar year.
    ``(h) Early Action.--
            ``(1) In general.--Subject to paragraph (2), a retail 
        electric supplier generating electric energy through the use of 
        a clean energy resource during the period beginning January 1, 
        2008, and ending on December 31, 2012, shall be eligible to 
        receive credits from the Secretary.
            ``(2) Exception for existing inherently low-emission 
        facilities.--An inherently low-emission facility in existence 
        on the date of enactment of this section shall not be eligible 
        to receive a credit from the Secretary under paragraph (1).
            ``(3) Issuance of clean energy credits.--The Secretary 
        shall issue to an eligible electric supplier under paragraph 
        (1) clean energy credits on the same basis as if the generation 
        of the electricity by the eligible electric supplier occurred 
        after December 31, 2012.
            ``(4) Value and use of credits.--A credit issued by the 
        Secretary under paragraph (3)--
                    ``(A) shall have the same value as any credit 
                issued under this section; and
                    ``(B) may be used for any purpose authorized under 
                this section.
    ``(i) Clean Energy Credit Borrowing.--On any date before December 
31, 2012, and each calendar year thereafter, a retail electric supplier 
that has reason to believe that the supplier will not have sufficient 
clean energy credits to comply with subsection (d)(1) may--
            ``(1) submit to the Secretary a plan demonstrating that the 
        retail electric supplier will earn sufficient credits within 
        the subsequent 3 calendar years (or for a longer period, if the 
        retail electric supplier intends to obtain credits for power 
        generated by a new nuclear power facility) that would enable 
        the retail electric supplier to meet the requirements of 
        subsection (d)(1) for each applicable calendar year; and
            ``(2) on the approval of the plan by the Secretary, apply 
        clean energy credits that the retail electric supplier 
        demonstrates through the plan submitted under paragraph (1) 
        will be earned within the subsequent 3 calendar years (or for a 
        longer period, if the retail electric supplier intends to 
        obtain credits for power generated by a new nuclear power 
        facility) to meet the requirements of subsection (d)(1) for 
        each applicable calendar year.
    ``(j) Credit Cost Gap.--The Secretary shall offer clean energy 
credits for sale at a price that does not exceed--
            ``(1) 2.5 cents per kilowatt-hour for each applicable 
        compliance period that occurs during each of calendar years 
        2012 through 2017;
            ``(2) 3.0 cents per kilowatt-hour for each applicable 
        compliance period that occurs during each of calendar years 
        2018 through 2023;
            ``(3) 3.5 cents per kilowatt-hour for each applicable 
        compliance period that occurs during each of calendar years 
        2024 through 2029; and
            ``(4) 5.0 cents per kilowatt-hour for each applicable 
        compliance period that occurs during calendar year 2030 or each 
        calendar year thereafter.
    ``(k) Enforcement.--
            ``(1) In general.--The Secretary may assess a civil penalty 
        on a retail electric supplier that does not comply with 
        subsection (d)(1), unless the retail electric supplier was 
        unable to comply with subsection (d)(1) for reasons beyond the 
        reasonable control of the retail electric supplier, including--
                    ``(A) weather-related damage;
                    ``(B) mechanical failure;
                    ``(C) lack of transmission capacity or 
                availability;
                    ``(D) strikes;
                    ``(E) lockouts; or
                    ``(F) actions of a governmental authority, 
                including delays in permitting of new clean energy 
                facilities or transmission lines.
            ``(2) Mandatory civil penalty.--
                    ``(A) Imposition of penalty.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), any retail electric supplier that 
                        fails to submit the required number of clean 
                        energy credits under subsection (d)(1) shall be 
                        subject to a civil penalty.
                            ``(ii) Exception.--Any retail electric 
                        supplier that fails to submit the required 
                        number of clean energy credits under subsection 
                        (d)(1)(A)(i) but fulfills the requirements for 
                        an exemption under subsection (d)(1)(A)(ii) 
                        shall not be subject to a civil penalty.
                    ``(B) Amount of penalty.--The amount of the civil 
                penalty shall be not more than the lesser of--
                            ``(i) 3.5 cents for each kilowatt-hour 
                        produced by the retail electric supplier that 
                        was not covered by a clean energy credit; and
                            ``(ii) for each clean energy credit not 
                        submitted for a calendar year, an amount equal 
                        to 200 percent of the average market value of 
                        the clean energy credit during the calendar 
                        year.
    ``(l) Information Collection.--The Secretary may collect any 
information considered by the Secretary to be necessary to verify and 
audit--
            ``(1) the annual electric energy generation and clean 
        energy generation of any individual or entity applying for a 
        clean energy credit under this section;
            ``(2) the validity of clean energy credits submitted to the 
        Secretary by a retail electric supplier; and
            ``(3) the quantity of electricity sales of all retail 
        electric suppliers.
    ``(m) Environmental Savings Clause.--
            ``(1) Qualified hydropower production.--Qualified 
        hydropower production shall be subject to all applicable--
                    ``(A) environmental laws; and
                    ``(B) licensing and regulatory requirements.
            ``(2) Carbon sequestration projects.--A carbon 
        sequestration project that uses geological or geophysical 
        structures for the permanent storage of carbon dioxide shall 
        not be subject to liability under subtitles C or D of the Solid 
        Waste Disposal Act (42 U.S.C. 6921 et seq.) or the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601 et seq.).
    ``(n) Existing Programs.--
            ``(1) Coordination.--In carrying out this section, the 
        Secretary shall incorporate common elements of clean energy 
        programs in existence on the date of enactment of this section 
        (including State programs) to ensure administrative efficiency, 
        market liquidity, and effective enforcement.
            ``(2) Cooperation between secretary and states.--In 
        carrying out this section, the Secretary shall work with the 
        States--
                    ``(A) to minimize administrative burdens and costs; 
                and
                    ``(B) to avoid duplicating compliance charges to 
                retail electric suppliers.
    ``(o) Recovery of Costs.--
            ``(1) In general.--Any necessary costs incurred by a retail 
        electric supplier to comply with this section shall be 
        recoverable in accordance with this subsection.
            ``(2) Right of recovery by retail electric supplier.--
        Notwithstanding any other law (including a regulation), 
        administrative order, or agreement between the electric utility 
        and the Commission or a State regulatory authority, a retail 
        electric supplier that has completed a sale of electric energy 
        that is subject to any form of rate regulation (including any 
        utility that uses rates that are regulated by the Commission or 
        any State-regulated electric utility) shall not be denied the 
        opportunity to recover the full amount of the prudently 
        incurred incremental cost of energy obtained to comply with the 
        requirements of subsection (d)(1).
    ``(p) Clean Energy Technology Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a revolving fund, to be known as the 
        `Clean Energy Technology Trust Fund' (referred to in this 
        section as the `Fund'), consisting of such amounts as the 
        Secretary shall deposit into the Fund from funds received by 
        the Secretary under subsections (j) and (k)(2)(B).
            ``(2) Maximum cumulative amount.--Of any funds received by 
        the Secretary under subsections (j) and (k)(2)(B), the 
        Secretary shall deposit--
                    ``(A) not more than $25,000,000,000 into the Fund; 
                and
                    ``(B) any amounts in excess of $25,000,000,000 into 
                the general fund of the Treasury.
            ``(3) Expenditures from fund.--Beginning in fiscal year 
        2014, on the request of the Secretary, of the amount any funds 
        deposited into the Fund for the previous fiscal year, the 
        Secretary of the Treasury shall transfer--
                    ``(A) 50 percent of the funds to the secretary to 
                carry out research and demonstration projects to 
                promote clean energy resources, inherently low-emission 
                facilities, and demand-side management, of which the 
                secretary shall award--
                            ``(i) 50 percent of the funds shall be used 
                        to provide research and development grants to 
                        research centers and institutions of higher 
                        education in States that have paid into the 
                        Fund an amount that is greater than the average 
                        amount paid into the Fund by all States; and
                            ``(ii) 50 percent of the funds shall be 
                        used to provide research and development grants 
                        to research centers and institutions of higher 
                        education on a competitive basis;
                    ``(B) 45 percent of the funds shall be transferred 
                to the Secretary to assist in off-setting financial 
                burdens incurred by the implementation of the Clean, 
                Reliable, Efficient and Secure Energy Act; and
                    ``(C) 5 percent of the funds shall be transferred 
                to the Secretary to assist in off-setting financial 
                burdens incurred by the implementation of this section 
                through the low-income home energy assistance program 
                established under the Low-Income Home Energy Assistance 
                Act of 1981 (42 U.S.C. 8621 et seq.).
            ``(4) Transfers of amounts.--
                    ``(A) Budget act allocations.--The Effective for 
                the fiscal year 2014 and each fiscal year thereafter, 
                funds appropriate from the Fund established under 
                paragraph (1) of this section shall not be subject to--
                            ``(i) the allocations for discretionary 
                        spending under section 302(a) of the 
                        Congressional Budget Act of 1974 (2 U.S.C. 
                        633(a)); or
                            ``(ii) the suballocations of appropriations 
                        committees under section 302(b) of that Act.
                    ``(B) Adjustments.--Proper adjustment shall be made 
                in amounts subsequently transferred to the extent prior 
                estimates were in excess of or less than the amounts 
                required to be transferred.
    ``(q) Program Review.--
            ``(1) Comprehensive study.--Not later than 5 years after 
        the date of enactment of this section, and every 5 years 
        thereafter, the Secretary shall carry out a comprehensive study 
        to evaluate the effects of the implementation of this section.
            ``(2) Report.--Not later than January 1, 2017, the 
        Secretary shall submit to Congress a report that includes--
                    ``(A) the results of the comprehensive study 
                carried out under paragraph (1);
                    ``(B) recommendations for any modification or 
                improvement resulting from that study; and
                    ``(C) an evaluation of--
                            ``(i) the effectiveness of this section 
                        in--
                                    ``(I) increasing the market 
                                penetration of eligible clean energy 
                                technologies; and
                                    ``(II) lowering the cost of the 
                                eligible clean energy technologies;
                            ``(ii) any opportunities for the 
                        development and deployment of additional clean 
                        energy technologies that have been created 
                        after the date of enactment of this section;
                            ``(iii) the impact of this section on the 
                        regional diversity and reliability of supply 
                        sources (including the power quality benefits 
                        of distributed generation);
                            ``(iv) the regional resource development 
                        carried out under this section relative to the 
                        potential of each region to develop and use 
                        clean energy technologies, including any 
                        reasons for any underinvestment in clean energy 
                        resources;
                            ``(v) the costs and benefits of the clean 
                        energy standard established under this section 
                        to the economies of each state and the united 
                        states, including--
                                    ``(I) retail power costs;
                                    ``(II) economic development 
                                benefits of investment;
                                    ``(III) avoided costs relating to 
                                environmental and congestion mitigation 
                                investments that would otherwise have 
                                been incurred;
                                    ``(IV) the impact on the demand and 
                                price of natural gas; and
                                    ``(V) the effectiveness of green 
                                marketing programs at reducing the cost 
                                of clean energy resources;
                            ``(vi) the efficiency of the coordination 
                        between the Secretary and States in the 
                        implementation of this section, in particular, 
                        with regard to those States that have 
                        additional portfolio standard requirements in 
                        place; and
                            ``(vii) the ability of the State to apply 
                        for a waiver of the requirements of this 
                        section under subsection (s).
    ``(r) Implementation of Study.--Not later than 180 days after the 
date of completion of the study carried out by the Secretary under 
subsection (q)(1), the Secretary shall, by regulation, implement each 
modification included in the study that, as determined by the 
Secretary, is necessary--
            ``(1) to improve the efficiency of activities carried out 
        under this section; and
            ``(2) to maximize the use of clean energy under this 
        section.
    ``(s) Waiver of Requirements.--
            ``(1) Application.--Not later than 1 year after the date of 
        enactment of this section, any State that has reason to believe 
        that the cost of complying with this section shall cause undue 
        economic hardship to the ultimate purchasers of electricity in 
        the State (including manufacturing and industrial users of 
        electricity in the State) may apply to the Secretary for a 
        waiver from the requirement to comply with this section for 
        retail electric suppliers selling electricity to end-use 
        customers located in the State.
            ``(2) Requirements for waiver.--The Secretary shall grant 
        the application of the State under paragraph (1) if the 
        Secretary determines that complying with this section is likely 
        to cause undue economic hardship to the ultimate purchasers of 
        electricity in the State.
            ``(3) Determination of the secretary.--In making a 
        determination to grant a waiver under paragraph (2), the 
        Secretary shall consider--
                    ``(A) the adequacy of commercially available clean 
                energy resources located within the State;
                    ``(B) the potential clean energy resources 
                available within the region that includes the State;
                    ``(C) the cost of developing those resources at 
                current and reasonably expected levels of technology 
                (including the cost and availability of existing and 
                needed transmission facilities to transmit electric 
                energy from the location of the clean energy resources 
                to the consumers of electric energy within the State); 
                and
                    ``(D) the economic and associated impacts of those 
                costs on the ultimate purchasers located within the 
                State.
            ``(4) Limitations.--
                    ``(A) In general.--If the Secretary determines to 
                grant a waiver under paragraph (2), the waiver may be 
                granted for a period of not more than 3 years.
                    ``(B) Additional waivers.--
                            ``(i) Factors.--If a State that has been 
                        granted a waiver under subparagraph (A) submits 
                        an application for an additional waiver, the 
                        Secretary shall make a determination on the 
                        application on the basis of the factors 
                        described in paragraph (3).
                            ``(ii) Period.--If the Secretary grants a 
                        waiver to a State that has been previously 
                        granted a waiver under subparagraph (A), the 
                        waiver may be granted for a period of 2 
                        additional years.
                            ``(iii) Number of additional waivers.--No 
                        State that has applied for a waiver under 
                        clause (i) may apply for any additional 
                        waivers.''.

SEC. 104. NUCLEAR FUEL MANAGEMENT AND DISPOSAL.

    (a) Definitions.--In this section:
            (1) Disposal.--The term ``disposal'' has the meaning given 
        the term in section 2 of the Nuclear Waste Policy Act of 1982 
        (42 U.S.C. 10101).
            (2) High-level radioactive waste.--The term ``high-level 
        radioactive waste'' has the meaning given the term in section 2 
        of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101).
            (3) Project.--The term ``Project'' means the Yucca Mountain 
        Project.
            (4) Repository.--The term ``repository'' has the meaning 
        given the term in section 2 of the Nuclear Waste Policy Act of 
        1982 (42 U.S.C. 10101).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (6) Spent nuclear fuel.--The term ``spent nuclear fuel'' 
        has the meaning given the term in section 2 of the Nuclear 
        Waste Policy Act of 1982 (42 U.S.C. 10101).
            (7) Yucca mountain site.--The term ``Yucca Mountain site'' 
        has the meaning given the term in section 2 of the Nuclear 
        Waste Policy Act of 1982 (42 U.S.C. 10101).
    (b) Withdrawal of Land.--
            (1) Land withdrawal; jurisdiction; reservation; 
        acquisition.--
                    (A) Land withdrawal.--Subject to valid existing 
                rights, and except as otherwise provided in this 
                section, the land described in paragraph (2) is 
                withdrawn permanently from any form of entry, 
                appropriation, or disposal under the public land laws, 
                including, without limitation--
                            (i) the mineral leasing laws;
                            (ii) the geothermal leasing laws;
                            (iii) materials sales laws; and
                            (iv) the mining laws.
                    (B) Jurisdiction.--As of the date of enactment of 
                this Act, any land described in paragraph (2) that is 
                under the jurisdiction of the Secretary of the Air 
                Force or the Secretary of the Interior shall be--
                            (i) transferred to the Secretary; and
                            (ii) under the jurisdiction of the 
                        Secretary.
                    (C) Reservation.--The land described in paragraph 
                (2) is reserved for use by the Secretary for activities 
                associated with the disposal of high-level radioactive 
                waste and spent nuclear fuel under the Nuclear Waste 
                Policy Act of 1982 (42 U.S.C. 10101 et seq.), 
                including--
                            (i) development;
                            (ii) preconstruction testing and 
                        performance confirmation;
                            (iii) licensing;
                            (iv) construction;
                            (v) management and operation;
                            (vi) monitoring;
                            (vii) closure and post-closure; and
                            (viii) other such activities associated 
                        with the disposal of high-level radioactive 
                        waste and spent nuclear fuel under the Nuclear 
                        Waste Policy Act of 1982 (42 U.S.C. 10101 et 
                        seq.).
            (2) Land description.--
                    (A) Boundaries.--The land referred to in paragraph 
                (1) is the approximately 147,000 acres of land located 
                in Nye County, Nevada, as generally depicted on the map 
                relating to the Project, numbered YMP-03-024.2, 
                entitled ``Proposed Land Withdrawal'', and dated July 
                21, 2005.
                    (B) Legal description and map.--
                            (i) In general.--As soon as practicable 
                        after the date of enactment of this Act, the 
                        Secretary of the Interior shall--
                                    (I) publish in the Federal Register 
                                a notice containing a legal description 
                                of the land described in this 
                                paragraph; and
                                    (II) provide to Congress, the 
                                Governor of the State of Nevada, and 
                                the Archivist of the United States--
                                            (aa) a copy of the map 
                                        referred to in subparagraph 
                                        (A); and
                                            (bb) the legal description 
                                        of the land.
                            (ii) Treatment.--
                                    (I) In general.--The map and legal 
                                description referred to in clause (i) 
                                shall have the same force and effect as 
                                if the map and legal description were 
                                included in this section.
                                    (II) Technical corrections.--The 
                                Secretary of the Interior may correct 
                                any clerical or typographical error in 
                                the map and legal description referred 
                                to in clause (i).
            (3) Revocations.--
                    (A) Public land order.--Public Land Order 6802, 
                dated September 25, 1990 (as extended by Public Land 
                Order 7534), and any condition or memorandum of 
                understanding accompanying the land order (as so 
                extended), is revoked.
                    (B) Right of way.--The rights-of-way reservations 
                relating to the Project, numbered N-48602 and N-47748 
                and dated January 5, 2001, are revoked.
            (4) Management of withdrawn land.--
                    (A) In general.--The Secretary, in consultation 
                with the Secretary of the Air Force and the Secretary 
                of the Interior, as appropriate, shall manage the land 
                withdrawn under paragraph (1)(A) in accordance with--
                            (i) the Federal Land Policy and Management 
                        Act of 1976 (43 U.S.C. 1701 et seq.);
                            (ii) this Act; and
                            (iii) other applicable laws.
                    (B) Management plan.--
                            (i) Development.--Not later than 3 years 
                        after the date of enactment of this Act, the 
                        Secretary, in consultation with the Secretary 
                        of the Air Force and the Secretary of the 
                        Interior, as appropriate, shall develop and 
                        submit to Congress and the State of Nevada a 
                        management plan for the use of the land 
                        withdrawn under subsection (b)(1)(A).
                            (ii) Priority.--Subject to clauses (iii), 
                        (iv), and (v), use of the land withdrawn under 
                        paragraph (1)(A) for an activity not relating 
                        to the Project shall be subject to such 
                        conditions and restrictions as the Secretary 
                        considers to be appropriate to facilitate 
                        activities relating to the Project.
                            (iii) Air force use.--The management plan 
                        may provide for the continued use by the 
                        Department of the Air Force of the portion of 
                        the land withdrawn under paragraph (1)(A) 
                        located within the Nellis Air Force base test 
                        and training range under such terms and 
                        conditions as may be agreed to by the Secretary 
                        and the Secretary of the Air Force.
                            (iv) Nevada test site use.--The management 
                        plan may provide for the continued use by the 
                        National Nuclear Security Administration of the 
                        portion of the land withdrawn under subsection 
                        (b)(1)(A) located within the Nevada test site 
                        of the Administration under such conditions as 
                        the Secretary considers to be necessary to 
                        minimize any effect on activities relating to 
                        the Project or other activities of the 
                        Administration.
                            (v) Other uses.--
                                    (I) In general.--The management 
                                plan shall include provisions--
                                            (aa) relating to the 
                                        maintenance of wildlife habitat 
                                        on the land withdrawn under 
                                        paragraph (1)(A); and
                                            (bb) under which the 
                                        Secretary may permit any use 
                                        not relating to the Project, as 
                                        the Secretary considers to be 
                                        appropriate, in accordance with 
                                        the requirements under 
                                        subclause (II).
                                    (II) Requirements.--
                                            (aa) Grazing.--The 
                                        Secretary may permit any 
                                        grazing use to continue on the 
                                        land withdrawn under paragraph 
                                        (1)(A) if the grazing use was 
                                        established before the date of 
                                        enactment of this Act, subject 
                                        to such regulations, policies, 
                                        and practices as the Secretary, 
                                        in consultation with the 
                                        Secretary of the Interior, 
                                        determines to be appropriate, 
                                        and in accordance with 
                                        applicable grazing laws and 
                                        policies, including--

                                                    (AA) the Act of 
                                                June 28, 1934 (commonly 
                                                known as the ``Taylor 
                                                Grazing Act'') (43 
                                                U.S.C. 315 et seq.);

                                                    (BB) title IV of 
                                                the Federal Land Policy 
                                                Management Act of 1976 
                                                (43 U.S.C. 1751 et 
                                                seq.); and

                                                    (CC) the Public 
                                                Rangelands Improvement 
                                                Act of 1978 (43 U.S.C. 
                                                1901 et seq.).

                                            (bb) Hunting and 
                                        trapping.--The Secretary may 
                                        permit any hunting or trapping 
                                        use to continue on the land 
                                        withdrawn under paragraph 
                                        (1)(A) if the hunting or 
                                        trapping use was established 
                                        before the date of enactment of 
                                        this Act, at such time and in 
                                        such zones as the Secretary, in 
                                        consultation with the Secretary 
                                        of the Interior and the State 
                                        of Nevada, may establish, 
                                        taking into consideration 
                                        public safety, national 
                                        security, administration, and 
                                        public use and enjoyment of the 
                                        land.
                            (vi) Public access.--
                                    (I) In general.--The management 
                                plan may provide for limited public 
                                access to the portion of the land 
                                withdrawn under paragraph (1)(A) that 
                                was under the control of the Bureau of 
                                Land Management on the day before the 
                                date of enactment of this Act.
                                    (II) Specific uses.--The management 
                                plan may permit public uses of the land 
                                relating to the Nye County Early 
                                Warning Drilling Program, utility 
                                corridors, and other uses the 
                                Secretary, in consultation with the 
                                Secretary of the Interior, considers to 
                                be consistent with the purposes of the 
                                withdrawal under paragraph (1)(A).
                    (C) Mining.--
                            (i) In general.--Surface and subsurface 
                        mining and oil and gas production, including 
                        slant drilling from outside the boundaries of 
                        the land withdrawn under paragraph (1)(A), 
                        shall be prohibited at any time on or under the 
                        land.
                            (ii) Evaluation of claims.--The Secretary 
                        of the Interior shall evaluate and adjudicate 
                        the validity of any mining claim relating to 
                        any portion of the land withdrawn under 
                        paragraph (1)(A) that was under the control of 
                        the Bureau of Land Management on the day before 
                        the date of enactment of this Act.
                            (iii) Compensation.--The Secretary shall 
                        provide just compensation for the acquisition 
                        of any valid property right relating to mining 
                        pursuant to the withdrawal under paragraph 
                        (1)(A).
                    (D) Closures.--If the Secretary, in consultation 
                with the Secretary of the Air Force and the Secretary 
                of the Interior, as appropriate, determines that the 
                health and safety of the public or the national defense 
                and security require the closure of a road, trail, or 
                other portion of the land withdrawn under paragraph 
                (1)(A) (including the airspace above the land), the 
                Secretary--
                            (i) may close the road, trail, or portion 
                        of land (including airspace); and
                            (ii) shall provide to the public a notice 
                        of the closure.
                    (E) Implementation.--The Secretary and the 
                Secretary of the Air Force or the Secretary of the 
                Interior, as appropriate, shall implement the 
                management plan developed under subparagraph (B) under 
                such terms and conditions as may be agreed to by the 
                Secretaries.
    (c) Receipt and Storage Facilities.--Section 114(b) of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10134(b)) is amended--
            (1) by striking ``If the President'' and inserting the 
        following:
            ``(1) In general.--If the President''; and
            (2) by adding at the end the following:
            ``(2) Application for receipt and storage facilities.--
                    ``(A) In general.--In conjunction with the 
                submission of an application for a construction 
                authorization under this subsection, the Secretary 
                shall apply to the Commission for a license in 
                accordance with part 72 of title 10, Code of Federal 
                Regulations (or a successor regulation), to construct 
                and operate facilities to receive and store spent 
                nuclear fuel and high-level radioactive waste at the 
                Yucca Mountain site.
                    ``(B) Deadline for final decision by commission.--
                The Commission shall issue a final decision approving 
                or disapproving the issuance of the license not later 
                than 18 months after the date of submission of the 
                application to the Commission.''.
    (d) Repeal of Capacity Limitation.--Section 114(d) of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10134(d)) is amended by striking 
the second and third sentences.
    (e) Infrastructure Activities.--Section 114 of the Nuclear Waste 
Policy Act of 1982 (42 U.S.C. 10134) is amended by adding at the end 
the following:
    ``(g) Infrastructure Activities.--
            ``(1) Construction of connected facilities.--At any time 
        after the completion by the Secretary of a final environmental 
        impact statement that evaluates the activities to be performed 
        under this subsection, the Secretary may commence the following 
        activities in connection with any activity or facility licensed 
        or to be licensed by the Commission at the Yucca Mountain site:
                    ``(A) Preparation of the site for construction of 
                the facility (including such activities as clearing, 
                grading, and construction of temporary access roads and 
                borrow areas).
                    ``(B) Installation of temporary construction 
                support facilities (including such items as warehouse 
                and shop facilities, utilities, concrete mixing plants, 
                docking and unloading facilities, and construction 
                support buildings).
                    ``(C) Excavation for facility structures.
                    ``(D) Construction of service facilities (including 
                such facilities as roadways, paving, railroad spurs, 
                fencing, exterior utility and lighting systems, 
                transmission lines, and sanitary sewerage treatment 
                facilities).
                    ``(E) Construction of structures, systems, and 
                components that do not prevent or mitigate the 
                consequences of possible accidents that could cause 
                undue risk to the health and safety of the public.
                    ``(F) Installation of structural foundations 
                (including any necessary subsurface preparation) for 
                structures, systems, and components that prevent or 
                mitigate the consequences of possible accidents that 
                could cause undue risk to the health and safety of the 
                public.
            ``(2) Authorization to receive and store.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Defense waste.--The term `defense 
                        waste' means high-level radioactive waste, and 
                        spent nuclear fuel, that results from an atomic 
                        energy defense activity.
                            ``(ii) Legacy spent nuclear fuel.--The term 
                        `legacy spent nuclear fuel' means spent nuclear 
                        fuel--
                                    ``(I) that is subject to a contract 
                                entered into pursuant to section 302; 
                                and
                                    ``(II) for which the Secretary 
                                determines that there is not at the 
                                time of the determination, and will not 
                                be within a reasonable time after the 
                                determination, sufficient domestic 
                                capacity available to recycle the spent 
                                nuclear fuel.
                    ``(B) Authorization for defense waste.--At any time 
                after the issuance of a license for receipt and storage 
                facilities under subsection (b)(2), the Secretary may 
                transport defense waste to receipt and storage 
                facilities at the Yucca Mountain site.
                    ``(C) Authorization for legacy spent nuclear 
                fuel.--At any time after the issuance of a construction 
                authorization under subsection (d) and the issuance of 
                a license for receipt and storage facilities under 
                subsection (b)(2), the Secretary may receive and store 
                legacy spent nuclear fuel and high-level radioactive 
                waste at the Yucca Mountain site.''.
    (f) Rail Line.--
            (1) Construction of rail line.--The Secretary shall acquire 
        rights-of-way within the corridor designated in paragraph (2) 
        in accordance with this subsection, and shall construct and 
        operate, or cause to be constructed and operated, a railroad 
        and such facilities as are required to transport spent nuclear 
        fuel and high-level radioactive waste from existing rail 
        systems to the site of surface facilities within the geologic 
        repository operations area for the receipt, handling, 
        packaging, and storage of spent nuclear fuel and high-level 
        radioactive waste prior to emplacement.
            (2) Acquisition and withdrawal of land.--
                    (A) Route designation and acquisition.--
                            (i) Rights-of-way and facilities.--The 
                        Secretary shall acquire such rights-of-way and 
                        develop such facilities within the corridor 
                        referred to as ``X'' on the map dated [--------
                        ] and on file with the Secretary as are 
                        necessary to carry out paragraph (1).
                            (ii) Recommendations.--The Secretary shall 
                        consider specific alignment proposals for the 
                        route for the corridor made by the State of 
                        Nevada and the units of local government within 
                        whose jurisdiction the route is proposed to 
                        pass.
                            (iii) Notice and description.--Not later 
                        than 180 days after the date of enactment of 
                        this Act, the Secretary shall--
                                    (I) publish in the Federal Register 
                                a notice containing a legal description 
                                of the corridor; and
                                    (II) file copies of the map 
                                referred to in clause (i) and the legal 
                                description of the corridor with--
                                            (aa) Congress;
                                            (bb) the Secretary of the 
                                        Interior;
                                            (cc) the Governor of the 
                                        State of Nevada;
                                            (dd) the Board of County 
                                        Commissioners of Lincoln 
                                        County, Nevada;
                                            (ee) the Board of County 
                                        Commissioners of Nye County, 
                                        Nevada; and
                                            (ff) the Archivist of the 
                                        United States.
                            (iv) Administration.--
                                    (I) Effect.--The map and legal 
                                description referred to in clause (iii) 
                                shall have the same force and effect as 
                                if the map and legal description were 
                                included in this Act.
                                    (II) Corrections.--The Secretary 
                                may correct clerical and typographical 
                                errors in the map and legal description 
                                and make minor adjustments in the 
                                boundaries of the corridor.
                    (B) Withdrawal and reservation.--
                            (i) Public land.--Subject to valid existing 
                        rights, the public land depicted on the map 
                        referred to in subparagraph (A)(iii) is 
                        withdrawn from all forms of entry, 
                        appropriation, and disposal under the public 
                        land laws, including the mineral leasing laws, 
                        the geothermal laws, the material sale laws, 
                        and the mining laws.
                            (ii) Administrative jurisdiction.--
                        Administrative jurisdiction over the land is 
                        transferred from the Secretary of the Interior 
                        to the Secretary.
                            (iii) Reservation.--The land is reserved 
                        for the use of the Secretary for the 
                        construction and operation of transportation 
                        facilities and associated activities under 
                        title I of the Nuclear Waste Policy Act of 1982 
                        (42 U.S.C. 10121 et seq.)
                            (iv) Memorandum of understanding.--The 
                        Secretary may also enter into a memorandum of 
                        understanding with the head of any other agency 
                        having administrative jurisdiction over other 
                        Federal land used for purposes of the corridor 
                        referred to in subparagraph (A)(i).
            (3) Environmental impact.--
                    (A) In general.--The Secretary shall comply with 
                all applicable requirements under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.) with respect to activities carried out under this 
                subsection.
                    (B) Consideration of potential impacts.--To the 
                extent a Federal agency is required to consider the 
                potential environmental impact of an activity carried 
                out under this subsection, the Federal agency shall 
                adopt, to the maximum extent practicable, an 
                environmental impact statement prepared under this 
                subsection.
                    (C) Effect of adoption of statement.--The adoption 
                by a Federal agency of an environmental impact 
                statement under subparagraph (B) shall be considered to 
                satisfy the responsibilities of the Federal agency 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.), and no further consideration 
                under that Act shall be required by the Federal agency.
    (g) New Plant Contracts.--Section 302(a) of the Nuclear Waste 
Policy Act of 1982 (42 U.S.C. 10222(a)) is amended by striking 
paragraph (5) and inserting the following:
            ``(5) Required provisions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any contract entered into under this 
                section shall provide that--
                            ``(i) following issuance of a license to 
                        construct and operate facilities to receive and 
                        store spent nuclear fuel at the Yucca Mountain 
                        site, the Secretary shall take title to the 
                        high-level radioactive waste or spent nuclear 
                        fuel involved as expeditiously as practicable 
                        upon the request of the generator or owner of 
                        such waste or spent fuel; and
                            ``(ii) in return for the payment of fees 
                        established by this section, the Secretary, 
                        beginning not later than January 31, 1998, 
                        shall dispose of the high-level radioactive 
                        waste or spent nuclear fuel involved as 
                        provided in this subtitle.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                with respect to a nuclear power facility for which a 
                license application is filed with the Commission after 
                January 1, 2008, under section 103 or 104 of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2133, 2134), a contract 
                entered into under this section shall--
                            ``(i) except as provided in clause (ii) and 
                        any terms and conditions relating to spent 
                        nuclear fuel generated before the date of 
                        enactment of the Nuclear Fuel Management and 
                        Disposal Act, be consistent with the terms and 
                        conditions of the contract entitled `Contract 
                        for Disposal of Spent Nuclear Fuel and/or High-
                        Level Radioactive Waste' that is included in 
                        section 961.11 of title 10 of the Code of 
                        Federal Regulations (as in effect on the date 
                        of enactment of the Nuclear Fuel Management and 
                        Disposal Act);
                            ``(ii) provide for the taking of title to, 
                        and removal of, high-level waste or spent 
                        nuclear fuel beginning not later than 25 years 
                        after the date on which the nuclear power 
                        facility begins commercial operations; and
                            ``(iii) be entered into not later than 60 
                        days after the date on which the license 
                        application is docketed by the Commission.''.
    (h) Nuclear Waste Fund.--
            (1) Budget act allocations.--Effective for fiscal year 2008 
        and each fiscal year thereafter, funds appropriated from the 
        Nuclear Waste Fund established under section 302 of the Nuclear 
        Waste Policy Act of 1982 (42 U.S.C. 10222) shall not be subject 
        to--
                    (A) the allocations for discretionary spending 
                under section 302(a) of the Congressional Budget Act of 
                1974 (2 U.S.C. 633(a)); or
                    (B) the suballocations of appropriations committees 
                under section 302(b) of that Act.
            (2) Fund uses.--Section 302(d)(4) of the Nuclear Waste 
        Policy Act of 1982 (42 U.S.C. 10222(d)(4)) is amended by 
        striking ``with'' and all that follows through ``storage site'' 
        and inserting ``with surface facilities within the geologic 
        repository operations area (including surface facilities for 
        the receipt, handling, packaging, and storage of spent nuclear 
        fuel and high-level radioactive waste prior to emplacement, or 
        transportation to the repository of spent nuclear fuel or high-
        level radioactive waste to surface facilities for the receipt, 
        handling, packaging, and storage of spent nuclear fuel and 
        high-level radioactive waste prior to emplacement and the 
        transportation, treating, or packaging of spent nuclear fuel or 
        high-level radioactive waste to be disposed of in the 
        repository, to be stored in a monitored retrievable storage 
        site),''.
            (3) Budget neutrality.--As soon as practicable after the 
        date of enactment of this Act, the Chairperson of the Committee 
        on the Budget of the House of Representatives and the 
        Chairperson of the Committee on Budget of the Senate shall make 
        adjustments in the allocation of new budget authority to the 
        appropriate committees in amounts equal to the fees 
        reclassified by paragraph (1).
    (i) Waste Confidence.--For purposes of a determination by the 
Nuclear Regulatory Commission on whether to grant or amend any license 
to operate any civilian nuclear power reactor or high-level radioactive 
waste or spent fuel storage or treatment facility under the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.), the provisions of this Act 
(including the amendments made by this Act) and the obligation of the 
Secretary to develop a repository in accordance with the Nuclear Waste 
Policy Act of 1982 (42 U.S.C. 10101 et seq.), shall provide sufficient 
and independent grounds for any further findings by the Nuclear 
Regulatory Commission of reasonable assurances that spent nuclear fuel 
and high-level radioactive waste would be disposed of safely and in a 
timely manner.

SEC. 105. ADVANCED COAL GENERATION.

    (a) FutureGen Facility.--
            (1) Definitions.--In this subsection:
                    (A) Consortium.--The term ``Consortium'' means the 
                consortium described in paragraph (3).
                    (B) Facility.--The term ``Facility'' means the 
                FutureGen Facility authorized under paragraph (2).
            (2) Authorization of facility.--The Secretary shall 
        construct a facility, to be known as the ``FutureGen 
        Facility'', to demonstrate the feasibility of integrating 
        commercial-scale gasification combined cycle power plant 
        technologies with advanced clean coal energy technologies, 
        including through the capture and sequestration of carbon 
        dioxide in geological formations.
            (3) Cooperative agreement.--The Secretary shall enter into 
        a cooperative agreement with a nonprofit consortium of domestic 
        and international coal-fueled power producers, domestic and 
        international coal companies, and other interested parties to 
        provide for the financing of the Facility.
            (4) Objectives.--The Secretary shall establish objectives 
        for the Facility, including objectives providing for--
                    (A) the operation of the Facility by calendar year 
                2012;
                    (B) the Facility to be designed in a manner--
                            (i) to achieve--
                                    (I) at least a 99-percent reduction 
                                in sulfur dioxide emissions,; and
                                    (II) at least a 90-percent 
                                reduction in mercury emissions based on 
                                the mercury content of coal;
                            (ii) to emit--
                                    (I) not more than 0.05 pounds of 
                                nitrogen oxide emissions per million 
                                Btu; and
                                    (II) not more than 0.005 pounds of 
                                total particulate emissions in the flue 
                                gas per million Btu;
                            (iii) to capture and permanently sequester 
                        at least 1,000,000 metric tons per year of 
                        carbon dioxide in geological formations;
                            (iv) to determine whether the technologies 
                        used by the Facility apply to various coal 
                        types; and
                            (v) to assess the feasibility of 
                        electricity generation from coal using advanced 
                        clean coal technology with carbon capture and 
                        sequestration at a cost that is not greater 
                        than 110 percent of the average cost of 
                        operation of commercial integrated coal 
                        gasification combined cycle electricity 
                        generating plant operating in the United States 
                        as of the date of enactment of this Act; and
                    (C) the completion of an environmental impact 
                statement for the Facility by not later than September 
                30, 2007.
            (5) System integration.--To reduce technical risk and focus 
        development efforts on system integration, the Secretary shall, 
        to the maximum extent practicable, ensure that the Facility is 
        designed in a manner to use, as appropriate--
                    (A) available advanced clean coal technology; and
                    (B) first-of-a-kind technology systems and 
                components.
            (6) Data protection.--Section 402(h) of the Energy Policy 
        Act of 2005 (42 U.S.C. 15962(h)) shall apply to the 
        dissemination of information collected by the Facility.
            (7) Cost-sharing requirement.--
                    (A) Federal share.--
                            (i) In general.--The Federal share of the 
                        total costs of constructing the Facility shall 
                        be not more than 74 percent.
                            (ii) Contributions from other countries.--
                        The Secretary may credit toward the Federal 
                        share contributions for the Facility received 
                        by the Secretary from other countries.
                    (B) Non-federal share.--
                            (i) In general.--The non-Federal share 
                        shall be paid by the Consortium.
                            (ii) Source of funds.--To pay the non-
                        Federal share, the Consortium may use amounts 
                        made available to the Consortium by States, 
                        technology providers, and other non-Federal 
                        entities.
            (8) Title to facility.--
                    (A) Conveyance to consortium.--The Secretary may 
                convey to the Consortium title to the Facility--
                            (i) on a determination by the Secretary 
                        that the conveyance would best accomplish the 
                        objectives established for the Facility under 
                        paragraph (4); or
                            (ii) on the date on which the demonstration 
                        activities under this subsection are 
                        terminated.
                    (B) Conveyance to secretary.--The Secretary may 
                agree to take title to the Facility if the Secretary 
                determines that the Consortium has insufficient funds 
                to construct or operate the Facility.
            (9) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary to carry out this 
        subsection--
                    (A) $108,000,000 for fiscal year 2008;
                    (B) $233,000,000 for fiscal year 2009;
                    (C) $233,000,000 for fiscal year 2010;
                    (D) $233,000,000 for fiscal year 2011;
                    (E) $92,000,000 for fiscal year 2012; and
                    (F) such sums as are necessary for each of fiscal 
                years 2013 through 2017.
    (b) Deployment of Advanced Coal Generation Units.--
            (1) Definitions.--In this subsection:
                    (A) Air separation unit.--The term ``air separation 
                unit'' means a technology capable of using ambient air 
                to separate and concentrate a gas with 95 percent 
                oxygen concentration for use in oxy fuel technology.
                    (B) Capture-ready.--The term ``capture ready'' 
                means the design of a new coal-fired unit that reduces 
                the cost of and facilitates the addition of carbon 
                dioxide separation and capture technologies after the 
                unit has been placed into service.
                    (C) Oxy fuel.--The term ``oxy fuel'' means a coal-
                fired boiler that burns coal in an environment with a 
                95 percent oxygen concentration.
                    (D) Subcritical pulverized coal unit.--The term 
                ``subcritical pulverized coal unit'' means a coal-fired 
                boiler that operates--
                            (i) at a pressure below 3,200 pounds per 
                        square inch; and
                            (ii) below a temperature of 1,025 degrees 
                        Fahrenheit.
                    (E) Supercritical pulverized coal unit.--The term 
                ``supercritical pulverized coal unit'' means a coal-
                fired boiler that--
                            (i) reaches an electricity generating 
                        efficiency of from 37 percent to 40 percent 
                        (High Heating Value); and
                            (ii) operates at a minimum pressure of 
                        3,500 pounds per square inch and a minimum 
                        temperature of 1,050 degrees Fahrenheit.
                    (F) Ultrasupercritical pulverized coal unit.--The 
                term ``ultrasupercritical pulverized coal unit'' means 
                a coal-fired boiler that--
                            (i) reaches an electricity generating 
                        efficiency of more than 43 percent (High 
                        Heating Value); and
                            (ii) operates at a minimum pressure of 
                        4,600 pounds per square inch and a minimum 
                        temperature of 1,110 degrees Fahrenheit.
            (2) Exemption from new source review.--Effective beginning 
        on the date of enactment of this section, any subcritical 
        pulverized coal unit in existence on the date of enactment of 
        this Act that is rebuilt with a supercritical pulverized coal 
        unit, or an ultrasupercritical pulverized coal unit, that 
        includes post-combustion carbon dioxide capture technology or 
        an oxy fuel pulverized coal unit shall be exempt from any new 
        source review requirements under the Clean Air Act (42 U.S.C. 
        7401 et seq.) if--
                    (A) there is no appreciable increase in the rate of 
                regulated emissions calculated by quantity of 
                pollutants removed per ton of coal used; and
                    (B) the new unit does not--
                            (i) cause the area in which the unit is 
                        located to deteriorate from an attainment to a 
                        nonattainment area; or
                            (ii) alter the progress of the State in 
                        achieving attainment under the applicable State 
                        implementation plan.
            (3) Loan guarantees for oxy fuel air separation units and 
        air-blown ultrasupercritical pulverized coal units that are 
        capture-ready.--Section 1703(b) of the Energy Policy Act of 
        2005 (42 U.S.C. 16513(b)) is amended by adding at the end the 
        following:
            ``(11) Air separation units and air-blown 
        ultrasupercritical pulverized coal units that are capture ready 
        (as the terms are defined in section 105(b)(1) of the Clean, 
        Reliable, Efficient and Secure Energy Act).''.

                    TITLE II--TRANSPORTATION SECTOR

SEC. 201. AUTOMOBILE FUEL ECONOMY.

    (a) Fuel Economy Standards.--Section 32902 of title 49, United 
States Code, is amended by striking subsections (a) and (b) and 
inserting the following:
    ``(a) In General.--Not later than 3 years before the beginning of 
each model year, the Secretary of Transportation, by regulation, shall 
prescribe average fuel economy standards for automobiles manufactured 
by a manufacturer for that model year in accordance with subsection 
(b).
    ``(b) Standards Based on Automobile Classes.--In prescribing 
average fuel economy standards under subsection (a), the Secretary of 
Transportation shall prescribe different standards for different 
classes of automobiles, as determined by the product of the tire 
footprint and weight of the automobiles in each such class.''.
    (b) Annual Increases in Fuel Economy Standards.--Section 32902(c) 
of title 49, United States Code, is amended to read as follows:
    ``(c) Annual Increases in Fuel Economy Standards.--(1) For the 
first model year subject to the requirements of this subsection, the 
average fuel economy standard for each class of automobile shall be the 
average combined highway and city miles per gallon performance of all 
automobiles within that class of automobiles during the previous model 
year (rounded up to the nearest 1/10 of a gallon).
    ``(2) Except as provided under paragraph (3), for each model year 
after the model year described in paragraph (1), the average fuel 
economy standard attained by each fleet of automobiles manufactured or 
sold in the United States shall be not less than 4 percent higher than 
the average fuel economy for such fleet during the previous model year.
    ``(3) The Secretary of Transportation may prescribe an average fuel 
economy standard for a class of automobiles in a model year that is 
lower than the standard required under paragraph (2) if, in 
consultation with the National Academy of Sciences, the Secretary 
determines that a 4 percent increase in the average fuel economy 
standard for that class of automobiles in that model year--
            ``(A) is not technologically achievable; or
            ``(B) cannot be achieved without compromising safety.
    ``(4) Any average fuel economy standard prescribed for a class of 
automobiles in a model year that is lower than the standard required 
under paragraph (2) shall be the maximum standard that--
            ``(A) is technologically achievable; and
            ``(B) does not compromise passenger safety.''.
    (c) Incentives for Automobile Manufacturers.--
            (1) In general.--Section 712(a) of the Energy Policy Act of 
        2005 (42 U.S.C. 16062(a)) is amended in the second sentence by 
        striking ``grants to automobile manufacturers'' and inserting 
        ``grants and loan guarantees under section 1703(b)(8) to 
        automobile manufacturers and suppliers''.
            (2) 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) For new or for the retooling of existing production 
        facilities for the manufacture of fuel efficient vehicles or 
        parts for fuel efficient vehicles, including electric drive 
        transportation technology and advanced diesel vehicles.''.
    (d) Effective Date.--The amendments made by this section--
            (1) shall take effect on January 1 of the calendar year 
        following the date of the enactment of this Act; and
            (2) shall apply to automobiles manufactured in any model 
        year beginning not less than 30 months after such effective 
        date.

SEC. 202. REPORT ON AVERAGE FUEL ECONOMY OF FEDERAL FLEET.

    (a) In General.--The Secretary shall annually submit to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Energy and Commerce of the House of Representatives a 
report that compiles any information on the average fuel economy of 
light duty vehicles of each Federal agency (other than vehicles 
exempted under subsection (c)) collected by the Secretary during the 
applicable fiscal year under the Federal Energy Management Program.
    (b) Components.--The report submitted under subsection (a) shall 
specify, with respect to each Federal agency--
            (1) the number of dual fueled vehicles owned or leased by 
        the Federal agency;
            (2) the quantity of conventional gasoline used by the 
        Federal agency during the preceding fiscal year;
            (3) the quantity of renewable fuel used by the Federal 
        agency during the preceding fiscal year;
            (4) the number of vehicles purchased or leased during the 
        preceding fiscal year;
            (5) the fuel economy of newly-purchased and newly-leased 
        vehicles; and
            (6) the estimated time period, and the number of new 
        vehicles needed to be purchased or leased, in order to achieve 
        fuel efficiency requirements.
    (c) Exemption.--The Secretary shall exclude from the report any 
vehicles of the Department of Defense that the Secretary of Defense 
determines would compromise national security interests by reporting 
such figures publicly.
    (d) Availability.--The report submitted under subsection (a) shall 
be made available for inspection by the public.

SEC. 203. TRAFFIC SIGNAL COORDINATION.

    (a) In General.--Of funds made available to carry out this Act, the 
Secretary shall use not less than $2,000,000 per year to carry out, 
through the Clean Cities Program established under sections 404, 409, 
and 505 of the Energy Policy Act of 1992 (42 U.S.C. 13231, 13235, 
13256), a program for traffic signal coordination.
    (b) Requirement.--The Secretary shall ensure that any activity 
under the program under subsection (a) shall be carried out by a 
certified civil engineer with experience relating to traffic patterns, 
signals, and congestion.
    (c) Action by State and Local Governments.--
            (1) Report.--Each unit of State or local government that 
        receives funds from the Secretary to carry out an activity 
        under the program under subsection (a) shall submit to the 
        Secretary a report describing the quantity of fuel savings of 
        the State as a result of the activity--
                    (A) by not later than 3 years after the date on 
                which the State receives the funds; and
                    (B) every 3 years thereafter.
            (2) Treatment of emission reductions.--Any emission 
        reductions due to fuel savings in a State as a result of an 
        activity under the program under subsection (a) shall be taken 
        into account with respect to the State implementation plan of 
        the State under the Clean Air Act (42 U.S.C. 7401 et seq.), 
        regardless of whether the activity is part of a transportation 
        implementation plan of the State.

SEC. 204. RENEWABLE CONTENT OF DIESEL FUEL.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
            (1) by redesignating the first subsection (r) (relating to 
        the definition of the term ``manufacturer'') as subsection (t) 
        and moving the subsection so as to appear after subsection (s); 
        and
            (2) by inserting after subsection (o) the following:
    ``(p) Alternative Biodiesel Standard.--
            ``(1) Definition of renewable fuel.--
                    ``(A) In general.--In this section, the term 
                `renewable fuel' means--
                            ``(i)(I) motor vehicle fuel that is 
                        produced from grain, starch, oil seeds, or 
                        vegetable, animal, or fish material, including 
                        fats, greases, and oils, sugarcane, sugar 
                        beets, sugar components, tobacco, potatoes, or 
                        other biomass;
                            ``(II) natural gas produced from a biogas 
                        source, including a landfill, sewage waste 
                        treatment plant, feedlot, or any other area in 
                        which decaying organic matter is found; and
                            ``(ii) motor vehicle fuel that is used to 
                        replace or reduce the quantity of fossil fuels 
                        in a fuel mixture used to operate a motor 
                        vehicle.
                    ``(B) Inclusion.--In this section, the term 
                `renewable fuel' includes a diesel fuel substitute 
                produced from--
                            ``(i) animal fat;
                            ``(ii) vegetable oil;
                            ``(iii) recycled yellow grease;
                            ``(iv) thermal depolymerization;
                            ``(v) thermochemical conversion; or
                            ``(vi) a blend of diesel and ethanol.
            ``(2) Alternative biodiesel program.--
                    ``(A) Regulations.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of acceptance of the ASTM 
                        standard for biodiesel by the Administrator, 
                        after consultation with industry 
                        representatives, the Administrator shall 
                        promulgate regulations to ensure that diesel 
                        fuel sold or introduced into commerce in the 
                        United States (except in noncontiguous States 
                        or territories), on an annual average basis, 
                        contains the applicable volume of biodiesel 
                        fuel determined in accordance with subparagraph 
                        (B).
                            ``(ii) Noncontiguous state opt-in.--
                                    ``(I) In general.--On the petition 
                                of a noncontiguous State or territory, 
                                the Administrator may allow the 
                                alternative biodiesel fuel program 
                                established under this subsection to 
                                apply in the noncontiguous State or 
                                territory at the same time or at any 
                                time after the Administrator 
                                promulgates regulations under this 
                                subparagraph.
                                    ``(II) Other actions.--In carrying 
                                out this clause, the Administrator 
                                may--
                                            ``(aa) promulgate or revise 
                                        regulations under this 
                                        paragraph;
                                            ``(bb) establish applicable 
                                        percentages under paragraph 
                                        (3);
                                            ``(cc) provide for the 
                                        generation of credits under 
                                        paragraph (4); and
                                            ``(dd) take such other 
                                        actions as are necessary to 
                                        allow for the application of 
                                        the alternative biodiesel 
                                        program in a noncontiguous 
                                        State or territory.
                            ``(iii) Provisions of regulations.--
                        Regardless of the date of promulgation, the 
                        regulations promulgated under clause (i)--
                                    ``(I) shall contain compliance 
                                provisions applicable to refineries, 
                                blenders, distributors, and importers, 
                                as appropriate, to ensure that the 
                                requirements of this paragraph are met; 
                                but
                                    ``(II) shall not--
                                            ``(aa) restrict geographic 
                                        areas in which biodiesel fuel 
                                        may be used; or
                                            ``(bb) impose any per-
                                        gallon obligation for the use 
                                        of biodiesel fuel.
                            ``(iv) Failure to promulgate regulations.--
                        If the Administrator fails to promulgate 
                        regulations in accordance with clause (i), the 
                        percentage of renewable fuel in the diesel 
                        motor pool sold or introduced into commerce in 
                        the United States for calendar year 2008, on a 
                        volume basis, shall be not less than 0.006 
                        percent.
                    ``(B) Applicable volume.--
                            ``(i) Calendar years 2008 through 2015.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for any of calendar years 
                        2007 through 2014 shall be determined in 
                        accordance with the following table:

``Calendar Year                      Available Volume of Biodiesel Fuel
                                               (In millions of gallons)
        2008...................................................    250 
        2009...................................................    500 
        2010...................................................    750 
        2011...................................................  1,000 
        2012...................................................  1,250 
        2013...................................................  1,500 
        2014...................................................  1,750 
        2015...................................................  2,000.
                            ``(ii) Calendar year 2016 and thereafter.--
                        Subject to clause (iii), for the purposes of 
                        subparagraph (A), the applicable volume for 
                        calendar year 2016 and each calendar year 
                        thereafter shall be determined by the 
                        Administrator, in coordination with the 
                        Secretary of Agriculture and the Secretary of 
                        Energy, based on a review of the implementation 
                        of the program during calendar years 2007 
                        through 2014, including a review of--
                                    ``(I) the impact of the use of 
                                biodiesel fuel on the environment, air 
                                quality, energy security, job creation, 
                                and rural economic development; and
                                    ``(II) the expected annual rate of 
                                future production of renewable fuels to 
                                be used as--
                                            ``(aa) a blend component; 
                                        or
                                            ``(bb) a replacement for 
                                        diesel.
                            ``(iii) Minimum applicable volume.--For the 
                        purpose of subparagraph (A), the applicable 
                        volume for calendar year 2016 and each calendar 
                        year thereafter shall be equal to the product 
                        obtained by multiplying--
                                    ``(I) the number of gallons of 
                                diesel fuel that the Administrator 
                                estimates will be sold or introduced 
                                into commerce in the calendar year; and
                                    ``(II) the ratio that--
                                            ``(aa) 2,000,000,000 
                                        gallons of biodiesel fuel; 
                                        bears to
                                            ``(bb) the number of 
                                        gallons of diesel fuel sold or 
                                        introduced into commerce in 
                                        calendar year 2015.
            ``(3) Applicable percentages.--
                    ``(A) Provision of estimate of volumes of diesel 
                sales.--Not later than October 31 of each of calendar 
                years 2007 through 2013, the Administrator of the 
                Energy Information Administration shall provide to the 
                Administrator an estimate with respect to the following 
                calendar year, of the volumes of diesel fuel projected 
                to be sold or introduced into commerce in the United 
                States.
                    ``(B) Determination of applicable percentages.--
                            ``(i) In general.--Not later than November 
                        30 of each calendar years 2007 through 2013, 
                        based on the estimate provided under 
                        subparagraph (A), the Administrator shall 
                        determine and publish in the Federal Register, 
                        with respect to the following calendar year, 
                        the biodiesel fuel obligation that ensures that 
                        the requirements of paragraph (2) are met.
                            ``(ii) Required elements.--The biodiesel 
                        obligation determined for a calendar year under 
                        clause (i) shall--
                                    ``(I) be applicable to refineries, 
                                blenders, and importers, as 
                                appropriate;
                                    ``(II) be expressed in terms of a 
                                volume percentage of diesel fuel sold 
                                or introduced into commerce in the 
                                United States; and
                                    ``(III) subject to subparagraph 
                                (C)(i), consist of a single applicable 
                                percentage that applies to all 
                                categories of persons specified in 
                                subclause (I).
                    ``(C) Adjustments.--In determining the applicable 
                percentage for a calendar year, the Administrator shall 
                make adjustments--
                            ``(i) to prevent the imposition of 
                        redundant obligations on any person specified 
                        in subparagraph (B)(ii)(I); and
                            ``(ii) to account for the use of biodiesel 
                        fuel during the previous calendar year by small 
                        refineries that are exempt under paragraph (7).
            ``(4) Credit program.--
                    ``(A) In general.--The regulations promulgated 
                under paragraph (2)(A) shall provide--
                            ``(i) for the generation of an appropriate 
                        amount of credits by any person that refines, 
                        blends, or imports diesel fuel that contains a 
                        quantity of biodiesel that is greater than the 
                        quantity required under paragraph (2);
                            ``(ii) for the generation of credits by 
                        small refineries in accordance with paragraph 
                        (7)(C).
                    ``(B) Use of credits.--A person that generates 
                credits under subparagraph (A) may use the credits, or 
                transfer all or a portion of the credits to another 
                person, for the purpose of complying with paragraph 
                (2).
                    ``(C) Duration of credits.--A credit generated 
                under this paragraph shall be valid during the 1-year 
                period beginning on the date on which the credit is 
                generated.
                    ``(D) Inability to generate or purchase sufficient 
                credits.--The regulations promulgated under paragraph 
                (2)(A) shall include provisions allowing any person 
                that is unable to generate or purchase sufficient 
                credits to meet the requirements of paragraph (2) to 
                carry forward a biodiesel fuel deficit on condition 
                that the person, in the calendar year following the 
                year in which the biodiesel fuel deficit is created--
                            ``(i) achieves compliance with the 
                        biodiesel fuel requirement under paragraph (2); 
                        and
                            ``(ii) generates or purchases additional 
                        biodiesel fuel credits to offset the biodiesel 
                        fuel deficit of the previous year.
            ``(5) Seasonal variations in biodiesel use.--
                    ``(A) Study.--For each of calendar years 2008 
                through 2015, the Administrator of the Energy 
                Information Administration shall conduct a study of 
                biodiesel fuel blending to determine whether there are 
                excessive seasonal variations in the use of biodiesel 
                fuel.
                    ``(B) Regulation of excessive seasonal 
                variations.--If, for any calendar year, the 
                Administrator of the Energy Information Administration, 
                based on the study under subparagraph (A), makes the 
                determinations specified in subparagraph (C), the 
                Administrator of the Environmental Protection Agency 
                shall promulgate regulations to ensure that 25 percent 
                or more of the quantity of biodiesel fuel necessary to 
                meet the requirements under paragraph (2) is used 
                during each of the 2 periods specified in subparagraph 
                (D) of each subsequent calendar year.
                    ``(C) Determinations.--The determinations referred 
                to in subparagraph (B) are that--
                            ``(i) less than 25 percent of the quantity 
                        of biodiesel fuel necessary to meet the 
                        requirements of paragraph (2) has been used 
                        during 1 of the 2 periods specified in 
                        subparagraph (D) of the calendar year;
                            ``(ii) a pattern of excessive seasonal 
                        variation described in clause (i) will continue 
                        in subsequent calendar years; and
                            ``(iii) promulgating regulations or other 
                        requirements to impose a 25 percent or more 
                        seasonal use of biodiesel fuel will not prevent 
                        or interfere with the attainment of national 
                        ambient air quality standards or significantly 
                        increase the price of diesel fuels to the 
                        consumer.
                    ``(D) Periods.--The 2 periods referred to in this 
                paragraph are--
                            ``(i) April through September; and
                            ``(ii) January through March and October 
                        through December.
                    ``(E) Exclusion.--Biodiesel fuel blended or 
                consumed in calendar year 2008 in a State that has 
                received a waiver under section 209(b) shall not be 
                included in the study under subparagraph (A).
                    ``(F) State exemption from seasonality 
                requirements.--Notwithstanding any other provision of 
                law, the seasonality requirement relating to biodiesel 
                fuel use established by this paragraph shall not apply 
                to any State that has received a waiver under section 
                209(b) or any State dependent on refineries in the 
                State for diesel supplies.
            ``(6) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, may waive the requirements of 
                paragraph (2), in whole or in part, on receipt of a 
                petition by 1 or more States, by reducing the national 
                quantity of biodiesel fuel required under paragraph 
                (2), based on a determination by the Administrator, 
                after public notice and opportunity for comment, that--
                            ``(i) implementation of the requirement 
                        would severely harm the economy or environment 
                        of a State, a region, or the United States; or
                            ``(ii) there is an inadequate domestic 
                        supply of renewable fuel.
                    ``(B) Petitions for waivers.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, shall approve or disapprove a 
                State petition for a waiver of the requirements of 
                paragraph (2) not later than 90 days after the date on 
                which the petition is received by the Administrator.
                    ``(C) Termination of waivers.--
                            ``(i) In general.--A waiver granted under 
                        subparagraph (A) shall terminate after 1 year, 
                        but may be renewed by the Administrator after 
                        consultation with the Secretary of Agriculture 
                        and the Secretary of Energy.
                            ``(ii) Consecutive waivers.--Not more than 
                        3 consecutive waivers may be granted to any 1 
                        State.
            ``(7) Small refineries.--
                    ``(A) Temporary exemption.--
                            ``(i) In general.--Paragraph (2) shall not 
                        apply to small refineries until calendar year 
                        2012.
                            ``(ii) Extension of exemption.--
                                    ``(I) Study by secretary of 
                                energy.--Not later than December 31, 
                                2010, the Secretary of Energy shall 
                                conduct for the Administrator a study 
                                to determine whether compliance with 
                                paragraph (2) would impose a 
                                disproportionate economic hardship on 
                                small refineries.
                                    ``(II) Extension of exemption.--In 
                                the case of a small refinery that the 
                                Secretary of Energy determines under 
                                subclause (I) would be subject to a 
                                disproportionate economic hardship if 
                                required to comply with paragraph (2), 
                                the Administrator shall extend the 
                                exemption under clause (i) for the 
                                small refinery for a period of not less 
                                than an additional 2 years.
                    ``(B) Petitions based on disproportionate economic 
                hardship.--
                            ``(i) Extension of exemption.--A small 
                        refinery may at any time petition the 
                        Administrator for an extension of the exemption 
                        under subparagraph (A) for the reason of 
                        disproportionate economic hardship.
                            ``(ii) Evaluation of petitions.--In 
                        evaluating a petition under clause (i), the 
                        Administrator, in consultation with the 
                        Secretary of Energy, shall consider the 
                        findings of the study under subparagraph 
                        (A)(ii) and other economic factors.
                            ``(iii) Deadline for action on petitions.--
                        The Administrator shall act on any petition 
                        submitted by a small refinery for a hardship 
                        exemption not later than 90 days after the date 
                        of receipt of the petition.
                    ``(C) Credit program.--If a small refinery notifies 
                the Administrator that the small refinery waives the 
                exemption under subparagraph (A), the regulations 
                promulgated under paragraph (2)(A) shall provide for 
                the generation of credits by the small refinery under 
                paragraph (4) beginning in the calendar year following 
                the date of notification.
                    ``(D) Opt-in for small refineries.--A small 
                refinery shall be subject to paragraph (2) if the small 
                refinery notifies the Administrator that the small 
                refinery waives the exemption under subparagraph 
                (A).''.
    (b) Conforming Amendments.--
            (1) Section 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) 
        is amended--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by striking ``or 
                        (o)'' each place it appears and inserting 
                        ``(o), or (p)''; and
                            (ii) in the second sentence, by striking 
                        ``or (o)'' and inserting ``(o), or (p)''; and
                    (B) in the first sentence of paragraph (2), by 
                striking ``and (o)'' each place it appears and 
                inserting ``(o), and (p)''.
            (2) Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) 
        is amended--
                    (A) in paragraph (1)(C), by striking clause (ii) 
                and inserting the following:
                            ``(ii) Inclusion.--The term `renewable 
                        fuel' includes cellulosic biomass ethanol and 
                        waste derived ethanol.'';
                    (B) in paragraph (5)(A)--
                            (i) in clause (i), by inserting ``and'' 
                        after the semicolon at the end;
                            (ii) by striking clause (ii); and
                            (iii) by redesignating clause (iii) as 
                        clause (ii); and
                    (C) in paragraph (10)--
                            (i) in the paragraph heading--
                                    (I) by inserting ``and biodiesel'' 
                                after ``ethanol''; and
                                    (II) by striking ``analysis'' and 
                                inserting ``analyses''; and
                            (ii) in subparagraph (A)(i), by striking 
                        ``ethanol production industry'' and inserting 
                        ``ethanol production and biodiesel production 
                        industries''.
    (c) Amendments to the Energy Policy Act of 2005.--Section 1501(d) 
of the Energy Policy Act of 2005 (42 U.S.C. 7545 note; Public Law 109-
58) is amended--
            (1) in paragraph (1)(A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``and each diesel, low sulfur diesel, and 
                ultra low sulfur diesel use area'' after ``each 
                reformulated gasoline use area'';
                    (B) in clause (iii), by striking ``and'' at the 
                end; and
                    (C) by adding at the end the following:
                            ``(v) diesel, low sulfur diesel, and ultra 
                        low sulfur diesel containing biodiesel; and'';
        and
            (2) in the second sentence of paragraph (2), by striking 
        ``gasoline distribution patterns'' and inserting ``gasoline 
        distribution and diesel distribution patterns''.

SEC. 205. COAL-TO-LIQUID AND GAS-TO-LIQUID TECHNOLOGIES.

    (a) Findings.--Congress finds that--
            (1) coal-to-liquid and gas-to-liquid technologies are 
        mature, known technologies that are used around the world;
            (2) with sizable coal reserves, the United States is 
        ideally suited for the use of coal-to-liquid and gas-to-liquid 
        technologies to produce alternatives for petroleum products; 
        and
            (3) it is in the best interest of the national security of 
        the United States to develop and commercialize a synthetic 
        fuels industry.
    (b) Coal-to-Liquid and Gas-to-Liquid Facilities Loan Guarantee 
Program.--
            (1) Amount.--Section 1702(c) of the Energy Policy Act of 
        2005 (42 U.S.C. 16512(c)) is amended--
                    (A) by striking ``Unless'' and inserting the 
                following:
            ``(1) In general.--Except as provided in paragraph (2), 
        unless'';
                and
                    (B) by adding at the end the following:
            ``(2) Exception.--The amount of a loan guarantee provided 
        under this title for a project described in section 1703(b)(11) 
        shall be not more than the lesser of--
                    ``(A) 50 percent of the project cost of the 
                facility that is the subject of the guarantee, as 
                estimated at the time at which the guarantee is issued; 
                or
                    ``(B) $100,000,000''.
            (2) Eligible projects.--Section 1703(b) of the Energy 
        Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by adding at 
        the end the following:
            ``(11) Coal-to-liquid and gas-to-liquid facilities that 
        produce not less than 150,000,000 gallons of liquid 
        transportation fuel per year.''.
            (3) Authorization of appropriations.--Section 1704 of the 
        Energy Policy Act of 2005 (42 U.S.C. 16514) is amended by 
        adding at the end the following:
    ``(c) Coal-to-Liquid and Gas-to-Liquid Projects.--There are 
authorized to be appropriated such sums as are necessary to provide the 
cost of guarantees for projects involving coal-to-liquid and gas-to-
liquid facilities under section 1703(b)(11).''.
    (c) Department of Defense Requirements for Utilization of Coal-to-
Liquid or Gas-to-Liquid Fuel in Military Aircraft.--
            (1) In general.--Subchapter II of chapter 134 of title 10, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 2263. Fuel: minimum requirements for utilization of coal-to-
              liquid or gas-to-liquid fuel
    ``(a) In General.--Of the total amount of fuel utilized by the 
Department of Defense in a calendar year, the percentage of such fuel 
that is coal-to-liquid fuel, gas-to-liquid fuel, or both shall be the 
percentage as follows:
            ``(1) In the first applicable utilization year, 5 percent.
            ``(2) Except as provided in subsection (c), in any year 
        after the first applicable utilization year, a percentage that 
        is 5 greater than the percentage of utilization in the 
        preceding year under this section.
    ``(b) First Applicable Utilization Year.--For purposes of 
subsection (a)(1), the first applicable utilization year for coal-to-
liquid fuel and gas-to-liquid fuel shall be the earlier of the 
following:
            ``(1) The first calendar year after the Secretary Defense 
        certifies to Congress that at least 50 percent of the aircraft 
        fleet of the Department has the proven capability to utilize 
        coal-to-liquid fuel or gas-to-liquid fuel without--
                    ``(A) any adverse effect on the aircraft engines of 
                such fleet;
                    ``(B) any adverse effect on the overall performance 
                of the aircraft; and
                    ``(C) any adverse effect on health and safety of 
                the aircrew, passengers, and maintenance crew.
            ``(2) 2017.
    ``(c) Exception.--If as of December 31 of any year in which 
subsection (a) is in effect the average price of crude petroleum (as 
determined by the Secretary of Energy in 2007 constant dollars) is less 
then $40 per barrel, paragraph (2) of that subsection shall not be 
operative in the next succeeding year.
    ``(d) Maximum Percentage.--(1) The maximum percentage of the fuel 
utilized by the Department that is required by this section to be coal-
to-liquid fuel, gas-to-liquid fuel, or both is 50 percent.
    ``(2) Nothing in paragraph (1) shall be construed to limit the 
percentage of fuel utilized by the Department that is coal-to-liquid 
fuel or gas-to-liquid fuel.''.
            (2) Clerical amendment.--The table of section at the 
        beginning of subchapter II of such chapter is amended by adding 
        at the end the following new item:

``2263. Fuel: minimum requirements for utilization of coal-to-liquid or 
                            gas-to-liquid fuel.''.
    (d) Commercial Aircraft Study.--
            (1) In general.--The Secretary of Energy, in consultation 
        with the Administrator of the Federal Aviation Administration, 
        shall conduct a study on commercial style aircraft engines and 
        airframes to determine the quantity of fuel produced using 
        coal-to-liquid or gas-to-liquid technology that may be used 
        without compromising health, safety, or the longevity of the 
        engines and airframes, including an analysis of any 
        environmental benefits from using the fuel.
            (2) Report.--Not later than 180 days after the date of the 
        completion of the study under paragraph (1), the Secretary of 
        Energy shall submit to the appropriate committees of Congress a 
        report that describes--
                    (A) the results of the study; and
                    (B) any recommendations of the Secretary of Energy.

SEC. 206. AVAILABILITY OF CERTAIN AREAS OF THE OUTER CONTINENTAL SHELF 
              FOR LEASING.

    (a) Definitions.--Section 2 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331) is amended--
            (1) in subsection (a), by inserting before the semicolon at 
        the end the following: ``or lying within the United States 
        exclusive economic zone adjacent to the territories of the 
        United States'';
            (2) by striking the semicolon at the end of each 
        subsections (a) through (o) and inserting a period;
            (3) by striking subsection (f) and inserting the following:
    ``(f) Affected State; Adjacent State.--
            ``(1) In general.--The terms `affected State' and `adjacent 
        State' mean, with respect to any program, plan, lease sale, 
        leased tract, or other activity, proposed, conducted, or 
        approved pursuant to this Act, any State the laws of which are 
        declared, pursuant to section 4(a)(2), to be the law of the 
        United States for the portion of the outer Continental Shelf on 
        which the program, plan, lease sale, leased tract, or activity 
        appertains or is, or is proposed to be, conducted.
            ``(2) State.--In this subsection, the term `State' includes 
        Puerto Rico and other territories of the United States.'';
            (4) in subsection (p), by striking ``; and'' at the end and 
        inserting a period; and
            (5) by adding at the end the following:
    ``(r) Adjacent Zone.--The term `Adjacent Zone' means, with respect 
to any program, plan, lease sale, leased tract, or other activity, 
proposed, conducted or approved pursuant to this Act, the portion of 
the outer Continental Shelf for which the laws of a particular adjacent 
State are declared pursuant to section 4(a)(2), to be the law of the 
United States.
    ``(s) Coastline.--The term `coastline' has the meaning given the 
term `coast line' in section 2 of the Submerged Lands Act (43 U.S.C. 
1301).
    ``(t) Mile.--The term `mile' means a statute mile.
    ``(u) Neighboring State.--The term `neighboring State' means a 
coastal State having a common boundary at the coastline with an 
adjacent State.''.
    (b) Reservation of Lands and Rights.--Section 12 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1341) is amended--
            (1) by striking Sec. 12 and all that follows through ``The 
        President'' and inserting the following:

``SEC. 12. RESERVATIONS.

    ``(a) Authority of the President.--
            ``(1) In general.--The President'';
        and
            (2) in subsection (a), by adding at the end the following:
            ``(2) Length of withdrawal.--A withdrawal by the President 
        may be for a term of not to exceed 10 years.
            ``(3) Considerations.--When considering potential uses of 
        the outer Continental Shelf, to the maximum extent practicable, 
        the President shall accommodate competing interests and 
        potential uses.
            ``(4) Prior withdrawals.--
                    ``(A) By the president.--The President may 
                partially or completely revise or revoke any prior 
                withdrawal made by the President under this section.
                    ``(B) Initiated by a state.--The President may not 
                revise or revoke a withdrawal that was initiated by a 
                petition from a State and approved by the Secretary 
                under subsection (h).'';
        and
            (3) by adding at the end the following:
    ``(g) Availability for Leasing Within Certain Areas of the Outer 
Continental Shelf.--
            ``(1) Prohibition against leasing.--
                    ``(A) Unavailable for leasing without state 
                request.--Except as otherwise provided in this 
                subsection, beginning on the date of enactment of this 
                subsection, the Secretary shall not offer for leasing 
                for oil and gas, or natural gas--
                            ``(i) any area within 50 miles of the 
                        coastline that was withdrawn from disposition 
                        by leasing in the Atlantic OCS Region, the 
                        Pacific OCS Region, or the Gulf of Mexico OCS 
                        Region Eastern Planning Area, as depicted on 
                        the maps referred to in this subparagraph, 
                        under the `Memorandum on Withdrawal of Certain 
                        Areas of the United States Outer Continental 
                        Shelf from Leasing Disposition', 34 Weekly 
                        Comp. Pres. Doc. 1111, dated June 12, 1998; or
                            ``(ii) any area within 50 miles of the 
                        coastline not withdrawn under that Memorandum 
                        that is included within the Gulf of Mexico OCS 
                        Region Eastern Planning Area as indicated on 
                        the map entitled `Gulf of Mexico OCS Region 
                        State Adjacent Zones and OCS Planning Areas' or 
                        the Florida Straits Planning Area as indicated 
                        on the map entitled `Atlantic OCS Region State 
                        Adjacent Zones and OCS Planning Areas', both of 
                        which are dated September 2005 and on file in 
                        the Office of the Director, National Ocean 
                        Resources and Royalty Service.
                    ``(B) Areas between 50 and 100 miles from the 
                coastline.--Unless an adjacent State petitions under 
                subsection (h) within 1 year after the date of the 
                enactment of this subsection for natural gas leasing or 
                by June 30, 2009, for oil and gas leasing, the 
                Secretary shall offer for leasing--
                            ``(i) any area more than 50 miles but less 
                        than 100 miles from the coastline that was 
                        withdrawn from disposition by leasing in the 
                        Atlantic OCS Region, the Pacific OCS Region, or 
                        the Gulf of Mexico OCS Region Eastern Planning 
                        Area, as depicted on the maps referred to in 
                        this subparagraph, under the `Memorandum on 
                        Withdrawal of Certain Areas of the United 
                        States Outer Continental Shelf from Leasing 
                        Disposition', 34 Weekly Comp. Pres. Doc. 1111, 
                        dated June 12, 1998; or
                            ``(ii) any area more than 50 miles but less 
                        than 100 miles from the coastline not withdrawn 
                        under that Memorandum that is included within 
                        the Gulf of Mexico OCS Region Eastern Planning 
                        Area as indicated on the map entitled `Gulf of 
                        Mexico OCS Region State Adjacent Zones and OCS 
                        Planning Areas' or within the Florida Straits 
                        Planning Area as indicated on the map entitled 
                        `Atlantic OCS Region State Adjacent Zones and 
                        OCS Planning Areas', both of which are dated 
                        September 2005 and on file in the Office of the 
                        Director, National Ocean Resources and Royalty 
                        Service.
            ``(2) Revocation of withdrawal.--
                    ``(A) In general.--The `Memorandum on Withdrawal of 
                Certain Areas of the United States Outer Continental 
                Shelf from Leasing Disposition', 34 Weekly Comp. Pres. 
                Doc. 1111, dated June 12, 1998, is revoked and no 
                longer in effect regarding--
                            ``(i) any area that is more than 100 miles 
                        from the coastline; or
                            ``(ii) any area that is less than 100 miles 
                        from the coastline and is included within the 
                        Gulf of Mexico OCS Region Central Planning Area 
                        as depicted on the map entitled `Gulf of Mexico 
                        OCS Region State Adjacent Zones and OCS 
                        Planning Areas' dated September 2005 and on 
                        file in the Office of the Director, National 
                        Ocean Resources and Royalty Service.
                    ``(B) Inclusion of certain areas.--
                            ``(i) In general.--The 2002-2007 5-Year 
                        Outer Continental Shelf Oil and Gas Leasing 
                        Program shall be modified to include--
                                    ``(I) the areas added to the Gulf 
                                of Mexico OCS Region Central Planning 
                                Area by this Act to the extent that the 
                                areas were included within the original 
                                boundaries of proposed Lease Sale 181; 
                                and
                                    ``(II) a sale in such additional 
                                areas, which shall be held not later 
                                than June 30, 2007.
                            ``(ii) Environmental impact statement.--The 
                        final environmental impact statement prepared 
                        for the area described in clause (i) for Lease 
                        Sale 181 shall be considered sufficient for all 
                        purposes for each lease sale in which the area 
                        is offered for lease during the 2002-2007 5-
                        Year Outer Continental Shelf Oil and Gas 
                        Leasing Program without need for 
                        supplementation.
                            ``(iii) Tracts partially added.--
                                    ``(I) In general.--Any tract only 
                                partially added to the Gulf of Mexico 
                                OCS Region Central Planning Area by 
                                this Act shall be eligible for leasing 
                                of the part of the tract that is 
                                included within the Gulf of Mexico OCS 
                                Region Central Planning Area.
                                    ``(II) Remainder of tract.--The 
                                remainder of a tract described in 
                                subclause (I) that lies outside of the 
                                Gulf of Mexico OCS Region Central 
                                Planning Area may be developed and 
                                produced by the lessee of the partial 
                                tract using extended reach or similar 
                                drilling from a location on a leased 
                                area.
                            ``(iv) Use of tracts.--Any area in the OCS 
                        withdrawn from leasing may be leased, and 
                        thereafter developed and produced by the lessee 
                        using extended reach or similar drilling from a 
                        location on a leased area located in an area 
                        available for leasing.
            ``(3) Petition for leasing.--
                    ``(A) Petitions.--
                            ``(i) In general.--The Governor of a State, 
                        upon concurrence of the legislature of the 
                        State, may submit to the Secretary a petition 
                        requesting that the Secretary make available 
                        any area that is within the Adjacent Zone of 
                        the State, included under paragraph (1), and 
                        that--
                                    ``(I) is greater than 25 miles from 
                                any point on the coastline of a 
                                neighboring State for the conduct of 
                                offshore leasing, pre-leasing, and 
                                related activities with respect to 
                                natural gas leasing; or
                                    ``(II) is greater than 50 miles 
                                from any point on the coastline of a 
                                neighboring State for the conduct of 
                                offshore leasing, pre-leasing, and 
                                related activities with respect to oil 
                                and gas leasing.
                            ``(ii) Other leasing.--The adjacent State 
                        may petition for leasing any other area within 
                        the Adjacent Zone of the State--
                                    ``(I) if leasing is allowed in the 
                                similar area of the Adjacent Zone of 
                                the applicable neighboring State; or
                                    ``(II) if leasing is not allowed, 
                                if the neighboring State, acting 
                                through the Governor of the neighboring 
                                State, expresses the concurrence of the 
                                neighboring State with the petition.
                            ``(iii) Secretarial finding.--The Secretary 
                        shall only consider a petition under clause 
                        (ii) after--
                                    ``(I) making a finding that leasing 
                                is allowed in the similar area of the 
                                Adjacent Zone of the applicable 
                                neighboring State; or
                                    ``(II) receiving the concurrence of 
                                the neighboring State.
                            ``(iv) Date of receipt.--The date of 
                        receipt by the Secretary of a concurrence by a 
                        neighboring State shall constitute the date of 
                        receipt of the petition for the State for which 
                        the concurrence applies.
                            ``(v) Concurrences required.--Except for 
                        any area described in paragraph (2)(B)(iv), a 
                        petition for leasing any part of the Alabama 
                        Adjacent Zone that is part of the Gulf of 
                        Mexico Eastern Planning Area, as indicated on 
                        the map entitled `Gulf of Mexico OCS Region 
                        State Adjacent Zones and OCS Planning Areas' 
                        which is dated September 2005 and on file in 
                        the Office of the Director, National Ocean 
                        Resources and Royalty Service, shall require 
                        the concurrence of the States of Alabama and 
                        Florida.
                    ``(B) Limitations on leasing.--In its petition, a 
                State with an Adjacent Zone that contains leased tracts 
                may condition new leasing for oil and gas, or natural 
                gas, for tracts within 25 miles of the coastline by--
                            ``(i) requiring a net reduction in the 
                        number of production platforms;
                            ``(ii) requiring a net increase in the 
                        average distance of production platforms from 
                        the coastline;
                            ``(iii) limiting permanent surface 
                        occupancy on new leases to areas that are more 
                        than 10 miles from the coastline;
                            ``(iv) limiting certain tracts to being 
                        produced from shore or from platforms located 
                        on other tracts; or
                            ``(v) other conditions that the adjacent 
                        State may consider appropriate if the Secretary 
                        does not determine that production is made 
                        economically or technically impracticable or 
                        otherwise impossible.
                    ``(C) Action by secretary.--
                            ``(i) In general.--Not later than 90 days 
                        after receipt of a petition of a State under 
                        subparagraph (A), the Secretary shall approve 
                        the petition, unless the Secretary determines 
                        that leasing the area would probably cause 
                        serious harm or damage to the marine resources 
                        of the Adjacent Zone of the State.
                            ``(ii) Environmental assessment.--Prior to 
                        approving the petition, the Secretary shall 
                        complete an environmental assessment under the 
                        National Environmental Policy Act of 1969 (42 
                        U.S.C. 4321 et seq.) that documents the 
                        anticipated environmental effects of leasing in 
                        the area included within the scope of the 
                        petition.
                    ``(D) Failure to act.--If the Secretary fails to 
                approve or deny a petition in accordance with 
                subparagraph (C), the petition shall be considered to 
                be approved 90 days after the receipt of the petition.
                    ``(E) Amendment of 5-year leasing program.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), notwithstanding section 18, not 
                        later than 180 days after the approval of a 
                        petition under subparagraph (C) or (D), after 
                        the expiration of the time limits established 
                        by paragraph (1)(B), and not later than 180 
                        days after the enactment of this subsection for 
                        the areas made available for leasing under 
                        paragraph (2), the Secretary shall amend the 5-
                        Year Outer Continental Shelf Oil and Gas 
                        Leasing Program (in effect on the date of 
                        enactment of this subsection) to include 1 or 
                        more lease sales for at least 75 percent of the 
                        associated areas.
                            ``(ii) Exception.--
                                    ``(I) In general.--The Secretary 
                                shall not make the amendment described 
                                in clause (i) if there are, from the 
                                date of approval, expiration of the 
                                time limits, or the date of enactment 
                                of this subsection, as applicable, less 
                                than 1 year remaining in the 5-Year 
                                Leasing Program described in clause 
                                (i).
                                    ``(II) Subsequent leasing 
                                program.--In a case described in 
                                subclause (I), the Secretary shall 
                                include the associated areas within 
                                lease sales under the next 5-Year Outer 
                                Continental Shelf Oil and Gas Leasing 
                                Program.
                            ``(iii) No further consultations 
                        required.--For purposes of amending the 5-Year 
                        Outer Continental Shelf Oil and Gas Leasing 
                        Program in accordance with this section, 
                        further consultations with States shall not be 
                        required.
                            ``(iv) Environmental assessment.--For 
                        purposes of this section, an environmental 
                        assessment performed under the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4321 et seq.) to assess the effects of 
                        approving the petition shall be sufficient to 
                        support the amendment of the 5-Year Outer 
                        Continental Shelf Oil and Gas Leasing Program.
            ``(4) Disposition of revenues.--Revenues from leases 
        entered into under this subsection shall be disposed of in 
        accordance with section 105 of the Gulf of Mexico Energy 
        Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432).
    ``(h) Option To Petition for Extension of Withdrawal From Leasing 
Within Certain Areas of Outer Continental Shelf.--
            ``(1) Petitions.--
                    ``(A) In general.--The Governor of a State, upon 
                the concurrence of the legislature of the State, may 
                submit to the Secretary a petition requesting that the 
                Secretary extend, for a period of time of not more than 
                5 years, the withdrawal from leasing for all or part of 
                any area within the Adjacent Zone of the State located 
                more than 50 miles, but less than 100 miles, from the 
                coastline that is subject to subsection (g)(1)(B).
                    ``(B) Limitation on petitions.--A State may 
                petition not more than once per calendar year for any 
                particular area.
                    ``(C) Separate petitions.--A State shall submit 
                separate petitions, with separate votes by the 
                legislature of the State, for oil and gas leasing and 
                for natural gas leasing.
                    ``(D) Scope of petitions.--A petition of a State 
                may request certain areas to be withdrawn from all 
                leasing and certain areas to be withdrawn only from 1 
                type of leasing.
                    ``(E) Alabama adjacent zone.--A petition for 
                extending the withdrawal from leasing of any part of 
                the Alabama Adjacent Zone that is more than 50 miles, 
                but less than 100 miles, from the coastline and that is 
                a part of the Gulf of Mexico OCS Region Eastern 
                Planning Area, as indicated on the map entitled `Gulf 
                of Mexico OCS Region State Adjacent Zones and OCS 
                Planning Areas' which is dated September 2005 and on 
                file in the Office of the Director, National Ocean 
                Resources and Royalty Service, may be made by the State 
                of Alabama or Florida.
            ``(2) Action by secretary.--
                    ``(A) Timing.--Not later than 90 days after receipt 
                of the petition of a State, the Secretary shall approve 
                or deny the petition, taking into consideration the 
                effect of approving the petition on marine resources of 
                the Adjacent Zone of the State.
                    ``(B) Environmental assessment.--If the Secretary 
                denies a petition under subparagraph (A), the Secretary 
                shall perform an environmental assessment under the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.) to assess the effects of that denial.
            ``(3) Failure to act.--If the Secretary fails to approve or 
        deny a petition in accordance with paragraph (2), the petition 
        shall be considered to be approved 180 days after the date of 
        receipt of the petition.
    ``(i) Effect of Other Laws.--
            ``(1) In general.--Adoption by any adjacent State of any 
        constitutional provision, or enactment of any State law, that 
        has the effect, as determined by the Secretary, of restricting 
        the Governor or the legislature, or both, of the State from 
        exercising full discretion related to subsection (g) or (h) 
        shall for the duration of the restriction--
                    ``(A) prohibit any sharing of OCS receipts (as that 
                term is defined in section 9(a)) under this Act with 
                the adjacent State, and the coastal political 
                subdivisions of the adjacent State; and
                    ``(B) prohibit the adjacent State from exercising 
                any authority under subsection (h).
            ``(2) Timing.--The Secretary shall make the determination 
        of the existence of a restricting constitutional provision or 
        State statute not later than 30 days after receipt of a 
        petition by any outer Continental Shelf lessee or coastal 
        State.''.
    (c) Conforming Amendment.--Section 102(9)(A) of the Gulf of Mexico 
Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) 
is amended--
            (1) in clause (i)--
                    (A) in subclause (I), by striking ``and'' at the 
                end; and
                    (B) by adding at the end the following:
                                    ``(III) areas leased under section 
                                12(g) of the Outer Continental Shelf 
                                Lands Act (43 U.S.C. 1341(g)); and'';
        and
            (2) in clause (ii)--
                    (A) in subclause (II), by striking ``and'' at the 
                end;
                    (B) in subclause (III), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                                    ``(IV) areas leased under section 
                                12(g) of the Outer Continental Shelf 
                                Lands Act (43 U.S.C. 1341(g)).''.

             TITLE III--BUILDINGS AND MANUFACTURING SECTOR

SEC. 301. ENERGY EFFICIENCY IN FEDERAL BUILDINGS.

    (a) Energy Efficiency in Federal Buildings.--
            (1) Definitions.--In this section--
                    (A) Administrator.--The term ``Administrator'' 
                means the Administrator of General Services.
                    (B) Committee.--The term ``Committee'' means the 
                Green Building Advisory Committee established under 
                section 103(a).
                    (C) Director.--The term ``Director'' means the 
                individual appointed to the position established under 
                section 101(a).
                    (D) Federal facility.--
                            (i) In general.--The term ``Federal 
                        facility'' means any building or facility the 
                        intended use of which requires the building or 
                        facility to be--
                                    (I) accessible to the public; and
                                    (II) constructed or altered by or 
                                on behalf of the United States.
                            (ii) Exclusions.--The term ``Federal 
                        facility'' does not include a privately-owned 
                        residential or commercial structure that is not 
                        leased by the Federal Government.
                    (E) High-performance green building.--The term 
                ``high-performance green building'' means a building 
                that, during its life-cycle--
                            (i) reduces energy, water, and material 
                        resource use;
                            (ii) integrates systems in the building;
                            (iii) 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
                    (F) Life-cycle.--The term ``life-cycle'', with 
                respect to a high-performance green building, means all 
                stages of the useful life of the building (including 
                components, equipment, systems, and controls of the 
                building) beginning at conception of a green building 
                project and continuing through site selection, design, 
                construction, landscaping, commissioning, operation, 
                maintenance, renovation, deconstruction or demolition, 
                removal, and recycling of the green building.
                    (G) 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.
                    (H) Life-cycle costing.--The term ``life-cycle 
                costing'', with respect to a high-performance green 
                building, means a technique of economic evaluation 
                that--
                            (i) 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
                            (ii) 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.
            (2) Oversight.--
                    (A) In general.--The Administrator shall establish 
                within the General Services Administration, and appoint 
                an individual to serve as Director in, a position in 
                the career-reserved Senior Executive service, to--
                            (i) establish and manage the Office in 
                        accordance with section 102; and
                            (ii) carry out other duties as required 
                        under this Act.
                    (B) Compensation.--The compensation of the Director 
                shall not exceed the maximum rate of basic pay for the 
                Senior Executive Service under section 5382 of title 5, 
                United States Code, including any applicable locality-
                based comparability payment that may be authorized 
                under section 5304(h)(2)(C) of that title.
            (3) Office of high-performance green buildings.--
                    (A) Establishment.--The Director shall establish 
                within the General Services Administration an Office of 
                High-Performance Green Buildings.
                    (B) Duties.--The Director shall--
                            (i) ensure full coordination of high-
                        performance green building information and 
                        activities within the General Services 
                        Administration and all relevant agencies, 
                        including, at a minimum--
                                    (I) the Environmental Protection 
                                Agency;
                                    (II) the Office of the Federal 
                                Environmental Executive;
                                    (III) the Office of Federal 
                                Procurement Policy;
                                    (IV) the Department of Energy;
                                    (V) the Department of Health and 
                                Human Services;
                                    (VI) the Department of Defense; and
                                    (VII) such other Federal agencies 
                                as the Director considers to be 
                                appropriate;
                            (ii) establish a senior-level Federal green 
                        building advisory committee, which shall 
                        provide advice and recommendations in 
                        accordance with section 103;
                            (iii) identify and biennially reassess 
                        improved or higher rating standards recommended 
                        by the Committee;
                            (iv) establish a national high-performance 
                        green building clearinghouse in accordance with 
                        section 104, which shall provide green building 
                        information through--
                                    (I) outreach;
                                    (II) education; and
                                    (III) the provision of technical 
                                assistance;
                            (v) ensure full coordination of research 
                        and development information relating to high-
                        performance green building initiatives under 
                        section 105;
                            (vi) identify and develop green building 
                        standards that could be used for all types of 
                        Federal facilities in accordance with section 
                        105;
                            (vii) establish green practices that can be 
                        used throughout the life of a Federal facility;
                            (viii) review and analyze current Federal 
                        budget practices and life-cycle costing issues, 
                        and make recommendations to Congress, in 
                        accordance with section 106; and
                            (ix) complete and submit the report 
                        described in subsection (c).
                    (C) Report.--Not later than 2 years after the date 
                of enactment of this Act, and biennially thereafter, 
                the Director shall submit to Congress a report that--
                            (i) describes the status of the green 
                        building initiatives under this Act and other 
                        Federal programs in effect as of the date of 
                        the report, including--
                                    (I) the extent to which the 
                                programs are being carried out in 
                                accordance with this Act;
                                    (II) the status of funding requests 
                                and appropriations for those programs; 
                                and
                                    (III) the effectiveness of 
                                different programs in reducing the 
                                energy consumption of the Federal 
                                government;
                            (ii) identifies within the planning, 
                        budgeting, and construction process all types 
                        of Federal facility procedures that inhibit new 
                        and existing Federal facilities from becoming 
                        high-performance green buildings as measured 
                        by--
                                    (I) a silver rating, as defined by 
                                the Leadership in Energy and 
                                Environmental Design Building Rating 
                                System standard established by the 
                                United States Green Building Council 
                                (or an equivalent rating); or
                                    (II) an improved or higher rating 
                                standard, as identified by the 
                                Committee;
                            (iii) identifies inconsistencies, as 
                        reported to the Committee, in Federal law with 
                        respect to product acquisition guidelines and 
                        high-performance product guidelines;
                            (iv) recommends language for uniform 
                        standards for use by Federal agencies in 
                        environmentally responsible acquisition;
                            (v) in coordination with the Office of 
                        Management and Budget, reviews the budget 
                        process for capital programs with respect to 
                        alternatives for--
                                    (I) restructuring of budgets to 
                                require the use of complete energy- and 
                                environmental-cost accounting;
                                    (II) using operations expenditures 
                                in budget-related decisions while 
                                simultaneously incorporating 
                                productivity and health measures (as 
                                those measures can be quantified by the 
                                Office, with the assistance of 
                                universities and national 
                                laboratories);
                                    (III) permitting Federal agencies 
                                to retain all identified savings 
                                accrued as a result of the use of life-
                                cycle costing for future high-
                                performance green building initiatives; 
                                and
                                    (IV) identifying short- and long-
                                term cost savings that accrue from 
                                high-performance green buildings, 
                                including those relating to health and 
                                productivity;
                            (vi) 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;
                            (vii) summarizes and highlights 
                        development, at the State and local level, of 
                        green building initiatives, including executive 
                        orders, policies, or laws adopted promoting 
                        green building (including the status of 
                        implementation of those initiatives); and
                            (viii) 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 (6).
                    (D) Implementation.--The Office shall carry out 
                each plan for implementation of recommendations under 
                subsection (c)(7).
            (4) Green building advisory committee.--
                    (A) Establishment.--Not later than 180 days after 
                the date of enactment of this Act, the Director shall 
                establish a committee to be known as the ``Green 
                Building Advisory Committee''.
                    (B) Membership.--The Committee shall be composed of 
                representatives of, at a minimum--
                            (i) each agency referred to in section 
                        102(b)(1); and
                            (ii) other relevant entities, as determined 
                        by the Director, including at least 1 
                        representative of each of the following:
                                    (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) Children and adult 
                                environmental health experts.
                    (C) Meetings.--The Director shall establish a 
                regular schedule of meetings for the Committee, which 
                shall convene a minimum of 6 times each year.
                    (D) Duties.--The Committee shall provide advice and 
                expertise for use by the Director in carrying out the 
                duties under this Act, including such recommendations 
                relating to Federal activities carried out under 
                sections 104 through 106 as are agreed to by a majority 
                of the members of the Committee.
                    (E) FACA exemption.--The Committee shall not be 
                subject to the Federal Advisory Committee Act (5 U.S.C. 
                App.).
            (5) Information clearinghouse and outreach.--The Director, 
        in coordination with the Committee, shall carry out public 
        outreach to inform individuals and entities of the information 
        and services available Government-wide by--
                    (A) establishing and maintaining a national high-
                performance green building clearinghouse, including on 
                the Internet, that--
                            (i) identifies existing similar efforts and 
                        coordinates activities of common interest; and
                            (ii) 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;
                    (B) identifying and recommending educational 
                resources for implementing high-performance green 
                building practices, including security and emergency 
                benefits and practices;
                    (C) providing access to technical assistance on 
                using tools and resources to make more cost-effective, 
                energy-efficient, health-protective, and 
                environmentally beneficial decisions for constructing 
                high-performance green buildings, particularly tools 
                available to conduct life-cycle costing and life-cycle 
                assessment;
                    (D) providing information on application processes 
                for certifying a high-performance green building, 
                including certification and commissioning;
                    (E) providing technical information, market 
                research, or other forms of assistance or advice that 
                would be useful in planning and constructing high-
                performance green buildings; and
                    (F) using such other methods as are determined by 
                the Director to be appropriate.
            (6) Coordination of research efforts.--
                    (A) Establishment.--The Director, in coordination 
                with the Committee, shall--
                            (i)(I) survey existing research and studies 
                        relating to high-performance green buildings; 
                        and
                            (II) coordinate activities of common 
                        interest;
                            (ii) develop and recommend a high-
                        performance green building research plan that--
                                    (I) identifies information and 
                                research needs, including the 
                                relationships between health, occupant 
                                productivity, and each of;
                                    (II) pollutant emissions from 
                                materials and products in the building;
                                    (III) natural day lighting;
                                    (IV) ventilation choices and 
                                technologies;
                                    (V) heating, cooling, and system 
                                control choices and technologies;
                                    (VI) moisture control and mold;
                                    (VII) maintenance, cleaning, and 
                                pest control activities;
                                    (VIII) acoustics; and
                                    (IX) other issues relating to the 
                                health, comfort, productivity, and 
                                performance of occupants of the 
                                building; and
                            (iii) 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;
                    (B) assist the budget and life-cycle costing 
                functions of the Office under section 106;
                    (C) study and identify potential benefits of green 
                buildings relating to energy security, natural 
                disaster, and emergency needs of the Federal 
                Government; and
                    (D) support other research initiatives determined 
                by the Office.
            (7) Budget and life-cycle costing and contracting 
        establishment.--The Director, in coordination with the 
        Committee, shall--
                    (A) identify, review, and analyze current budget 
                and contracting practices that affect achievement of 
                high-performance green buildings, including the 
                identification of barriers to green building life-cycle 
                costing and budgetary issues;
                    (B) 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;
                    (C) identify tools to aid life-cycle cost 
                decisionmaking; and
                    (D) explore the feasibility of incorporating the 
                benefits of green buildings, such as security benefits, 
                into a cost-budget analysis to aid in life-cycle 
                costing for budget and decision making processes.
            (8) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out subsection (a) $4,000,000 for 
        each of fiscal years 2008 through 2013, to remain available 
        until expended.
    (b) Federal Green Building Performance.--
            (1) 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--
                    (A) conduct an audit of the implementation of this 
                Act; and
                    (B) submit to the Office, the Committee, the 
                Administrator, and Congress a report describing the 
                results of the audit.
            (2) Contents.--An audit under paragraph (1) shall include a 
        review, with respect to the period covered by the report under 
        paragraph (1)(B), of--
                    (A) 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 paragraph (a)(7);
                    (B) the level of coordination among the Office, the 
                Office of Management and Budget, and relevant agencies;
                    (C) the performance of the Office in carrying out 
                the implementation plan;
                    (D) the design stage of high-performance green 
                building measures;
                    (E) high-performance building data that were 
                collected and reported to the Office; and
                    (F) such other matters as the Comptroller General 
                of the United States determines to be appropriate.
            (3) Consultation.--The Director shall consult with the 
        Committee to enhance and assist the implementation of 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.
    (c) Federal Stimulus of Commercial Application of Energy Technology 
.--
            (1) Definitions.--For purposes of this subsection:
                    (A) Department.--The term ``Department'' means the 
                Department of Energy.
                    (B) Fund.--The term ``Fund'' means the Innovative 
                Energy Technologies Fund for Federal Buildings 
                established in section 3.
                    (C) Innovative energy technology.--The term 
                ``innovative energy technology'' means a technology, 
                including an advanced energy conservation or renewable 
                energy technology, that was developed, in whole or in 
                part, with the support of the Department.
                    (D) Innovative energy technology project.--The term 
                ``innovative energy technology project'' means a 
                project that--
                            (i) results in the commercial application 
                        of an innovative energy technology; and
                            (ii) assists a Federal agency in meeting or 
                        exceeding all Federal energy efficiency 
                        requirements then in effect, including 
                        applicable Executive orders such as Executive 
                        Order No. 13423.
                    (E) Secretary.--The term ``Secretary'' means the 
                Secretary of Energy.
            (2) Establishment of fund.--
                    (A) In general.--Not later than 6 months after the 
                date of enactment of this Act, the Secretary of Energy 
                shall establish the Innovative Energy Technologies Fund 
                for Federal Buildings within the Clean Energy 
                Technology Fund established in Section 103 of this Act. 
                The Secretary of Energy shall administer the Fund to 
                enable Federal agencies to demonstrate innovative 
                energy technologies for retrofit or new construction of 
                Federal buildings and facilities.
                    (B) Criteria and guidelines.--Not later than 6 
                months after the date of enactment of this Act, the 
                Secretary shall establish criteria and guidelines for 
                Federal agencies to borrow from and pay back to the 
                Fund.
            (3) Loans from the fund.--
                    (A) General procedure.--Federal agencies may apply 
                to the Secretary for a loan for financing the 
                demonstration of innovative energy technology projects, 
                and shall repay the Fund from savings in energy and 
                other costs attributable to actions taken as a result 
                of the demonstration project undertaken with the loan.
                    (B) Purposes of loan.--In addition to financing an 
                innovative energy technology project, a Federal agency 
                may use the loan amount to pay the costs of 
                administration and the development of proposals for 
                subsequent projects to further develop the technology 
                (including data collection and energy surveys), and to 
                acquire and operate equipment necessary to monitor and 
                verify associated energy savings.
                    (C) Repayments.--A Federal agency shall repay to 
                the Fund the principal amount of the loan and fees 
                determined by the Secretary to cover costs of 
                administering the loan. The repayment period shall be 
                15 years, or less as appropriate to the project.
            (4) Reports and audits.--
                    (A) Reports to the secretary.--Not later than 1 
                year after a Federal agency implements its first 
                innovative energy technology project for which a loan 
                is provided under this Act, and each year thereafter 
                until the date that final repayment of all loans 
                provided to that agency under this Act is due, the 
                Federal agency shall transmit to the Secretary an 
                annual report that--
                            (i) states whether projects meet or fail to 
                        meet the energy savings projections for the 
                        projects based on measured savings;
                            (ii) for each project that fails to meet 
                        the energy savings projections, states the 
                        reasons for failure and describes proposed 
                        remedies; and
                            (iii) for each project that meets the 
                        energy savings projections, proposes expanded 
                        demonstrations of the innovative energy 
                        technology demonstrated with the loan funds.
                    (B) Audits.--The Secretary may audit any innovative 
                energy technology project financed with a loan from the 
                Fund to assess the project's performance.
                    (C) Reports to congress.--At the end of each fiscal 
                year, the Secretary shall transmit to Congress a report 
                on the operations of the Fund, including a statement of 
                the total receipts into the Fund, the total 
                expenditures from the Fund to each Federal agency, and 
                examples of project successes and failures in meeting 
                energy savings projections.
            (5) Authorization of appropriations.--
                    (A) Establishment of fund.--There are authorized to 
                be appropriated to the Secretary for the establishment 
                of the Fund, $100,000,000 for each of the fiscal years 
                2008 through 2017.
                    (B) Operation of fund.--There are authorized to be 
                appropriated to the Secretary from the Fund, for 
                carrying out the loan program under this Act, such sums 
                as may be necessary.

SEC. 302. ENERGY EFFICIENCY PUBLIC SCHOOLS.

    (a) The Secretary of Energy shall provide grants--
            (1) to State educational agencies and local educational 
        agencies for providing intensive technical assistance for, and 
        assisting the implementation of, the EnergySmart Schools 
        Program of the Department of Energy and the Energy Star for K-
        12 School Districts program of the Environmental Protection 
        Agency; and
            (2) to state educational agencies for use in the 
        development of state-level school energy efficiency quality 
        plans, in partnership with the department of energy, 
        including--
                    (A) standards for school building design, 
                construction, and renovation; and
                    (B) proposals for the systematic improvement 
                (including benchmarks and timelines) of environmental 
                conditions in and around schools throughout the State, 
                including--
                            (i) environmentally preferable purchasing 
                        of products for instruction and maintenance;
                            (ii) increasing the use of alternative 
                        energy fuels in school buses; and
                            (iii) maximization of transportation 
                        choices for students, staff, and other members 
                        of the community.
    (b) Federal Share.--The Federal share of the cost of a project or 
activity carried out using funds from a grant under this Act shall not 
exceed 90 percent.
    (c) Grant Priority.--In providing grants under section 2(1), the 
Secretary of Energy shall give priority to projects to provide 
assistance to school districts that have a demonstrated need for energy 
efficiency improvement.
    (d) Definition.--For purposes of this Act, the terms ``State 
educational agency'' and ``local educational agency'' have the meanings 
given those terms in section 9101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801).
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out this Act 
$10,000,000 for the period encompassing fiscal years 2006 through 2011.

SEC. 303. MANUFACTURING PROCESSES AND MATERIALS ENERGY USE COMMISSION.

    Subtitle C of title I of the Energy Policy Act of 2005 (P.L. 109-
58; 119 Stat. 620) is amended by adding at the end the following:

``SEC. 142. MANUFACTURING PROCESSES AND MATERIALS ENERGY USE 
              COMMISSION.

    ``(a) Establishment.--
            ``(1) Establishment.--There is established a commission to 
        be known as the `Appliance Efficiency Standards Commission' 
        (referred to in this subsection as the `Commission').
            ``(2) Membership.--
                    ``(A) Composition.--The Commission shall be 
                composed of 12 members appointed by the President, of 
                whom--
                            ``(i) 4 members shall be appointed to 
                        represent energy and manufacturing industries;
                            ``(ii) 2 members shall be appointed from 
                        nongovernmental organizations that specialize 
                        in energy efficiency, environmental protection, 
                        or consumer advocacy;
                            ``(iii) 3 members shall be appointed from 
                        the National Academy of Sciences; and
                            ``(iv) 1 member shall be appointed from 
                        each of--
                                    ``(I) the Department of Commerce; 
                                and
                                    ``(II) the Department of Energy.
                    ``(B) Date of appointments.--The appointment of a 
                member of the Commission shall be made not later than 
                90 days after the date of enactment of this subsection.
            ``(3) Term; vacancies.--
                    ``(A) Term.--Subject to clause (ii), the term of 
                office of a member of the Commission shall be 3 years.
                    ``(B) Vacancies.--A vacancy on the Commission--
                            ``(i) shall not affect the powers of the 
                        Commission; and
                            ``(ii) shall be filled in the same manner 
                        as the original appointment was made.
            ``(4) Initial meeting.--Not later than 30 days after the 
        date on which all members of the Commission have been 
        appointed, the Commission shall hold the initial meeting of the 
        Commission.
            ``(5) Meetings.--The Commission shall meet at the call of 
        the Chairperson.
            ``(6) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum, but a lesser number of members may 
        hold hearings.
            ``(7) Chairperson and vice chairperson.--The Commission 
        shall select a Chairperson and Vice Chairperson from among the 
        members of the Commission.
    ``(b) Duties.--The Commission shall--
            ``(1) conduct a study on the methods to develop new 
        manufacturing processes and material that are able to use 
        diverse energy sources; and
            ``(2) submit to Congress a report that describes the result 
        of the study.
    ``(c) Powers.--
            ``(1) Hearings.--The Commission may hold such hearings, 
        meet and act at such times and places, take such testimony, and 
        receive such evidence as the Commission considers advisable to 
        carry out this subsection.
            ``(2) Information from federal agencies.--
                    ``(A) In general.--The Commission may secure 
                directly from a Federal agency such information as the 
                Commission considers necessary to carry out this 
                subsection.
                    ``(B) Provision of information.--On request of the 
                Chairperson of the Commission, the head of the agency 
                shall provide the information to the Commission.
            ``(3) Postal services.--The Commission may use the United 
        States mails in the same manner and under the same conditions 
        as other agencies of the Federal Government.
            ``(4) Gifts.--The Commission may accept, use, and dispose 
        of gifts or donations of services or property.
    ``(d) Commission Personnel Matters.--
            ``(1) Compensation of members.--
                    ``(A) Non-federal employees.--A member of the 
                Commission who is not an officer or employee of the 
                Federal Government shall be compensated at a rate equal 
                to the daily equivalent of the annual rate of basic pay 
                prescribed for level IV of the Executive Schedule under 
                section 5315 of title 5, United States Code, for each 
                day (including travel time) during which the member is 
                engaged in the performance of the duties of the 
                Commission.
                    ``(B) Federal employees.--A member of the 
                Commission who is an officer or employee of the Federal 
                Government shall serve without compensation in addition 
                to the compensation received for the services of the 
                member as an officer or employee of the Federal 
                Government.
            ``(2) Travel expenses.--A member of the Commission shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for an employee of an agency 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from the home or regular place of business of 
        the member in the performance of the duties of the Commission.
            ``(3) Staff.--
                    ``(A) In general.--The Chairperson of the 
                Commission may, without regard to the civil service 
                laws (including regulations), appoint and terminate an 
                executive director and such other additional personnel 
                as are necessary to enable the Commission to perform 
                the duties of the Commission.
                    ``(B) Confirmation of executive director.--The 
                employment of an executive director shall be subject to 
                confirmation by the Commission.
                    ``(C) Compensation.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), the Chairperson of the 
                        Commission may fix the compensation of the 
                        executive director and other personnel without 
                        regard to the provisions of chapter 51 and 
                        subchapter III of chapter 53 of title 5, United 
                        States Code, relating to classification of 
                        positions and General Schedule pay rates.
                            ``(ii) Maximum rate of pay.--The rate of 
                        pay for the executive director and other 
                        personnel shall not exceed the rate payable for 
                        level V of the Executive Schedule under section 
                        5316 of title 5, United States Code.
            ``(4) Detail of federal government employees.--
                    ``(A) In general.--An employee of the Federal 
                Government may be detailed to the Commission without 
                reimbursement.
                    ``(B) Civil service status.--The detail of the 
                employee shall be without interruption or loss of civil 
                service status or privilege.
            ``(5) Procurement of temporary and intermittent services.--
        The Chairperson of the Commission may procure temporary and 
        intermittent services in accordance with section 3109(b) of 
        title 5, United States Code, at rates for individuals that do 
        not exceed the daily equivalent of the annual rate of basic pay 
        prescribed for level V of the Executive Schedule under section 
        5316 of that title.
            ``(6) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection, to remain available until expended.
    ``(e) Administration.--Section 14 of the Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Commission.''.

SEC. 304. GREENFIELD STUDY.

    (a) Definition.--For the purposes of this section, the term 
``greenfield facility'' shall mean a new industrial manufacturing, 
refining or other industrial facility.
    (b) Study.--The Secretary, in coordination with the Secretary of 
Commerce and the Administrator of the Environmental Protection Agency, 
shall conduct a study on the costs and benefits of locating greenfield 
facilities near existing manufacturing or electric generating 
facilities for purposes of energy efficiency, including--
            (1) an identification of the barriers to locating 
        greenfield facilities near existing manufacturing or electric 
        generating facilities; and
            (2) the development of a 5-year plan to remove, to the 
        maximum extent practicable, any barriers that are the result of 
        an activity, facility or regulation of the Federal government.

                TITLE IV--NATIONAL CLIMATE CHANGE POLICY

SEC. 401. NATIONAL GREENHOUSE GAS EMISSIONS REGISTRY.

    Section 1605 of the Energy Policy Act of 1992 (42 U.S.C. 13385) is 
amended--
            (1) by amending the second sentence of subsection (a) to 
        read as follows: ``The Secretary shall annually update and 
        analyze such inventory using available data, including, 
        beginning in calendar year 2008, information collected as a 
        result of voluntary reporting under subsection (b). The 
        inventory shall identify for calendar year 2008 and thereafter 
        the amount of emissions reductions attributed to those reported 
        under subsection (b).'';
            (2) by amending subsection (b)(1) (B) and (C) to read as 
        follows--
                    ``(B) annual reductions or avoidance of greenhouse 
                gas emissions and carbon sequestration achieved through 
                any measures, including agricultural activities, co-
                generation, appliance efficiency, energy efficiency, 
                forestry activities that increase carbon sequestration 
                stocks (including the use of forest products), fuel 
                switching, management of crop lands, grazing lands, 
                grasslands and dry lands, manufacture or use of 
                vehicles with reduced greenhouse gas emissions , 
                methane recovery, ocean seeding, use of renewable 
                energy, chlorofluorocarbon capture and replacement, and 
                power plant heat rate improvement'';
            (3) by striking in the first sentence of subsection (b)(2) 
        the word ``entities'' and inserting ``persons or entities'' and 
        in the second sentence of such subsection, by inserting after 
        ``Persons'' the words ``or entities'';
            (4) by inserting in the second sentence of subsection 
        (b)(4) the words ``persons or'' before ``entity'';
            (5) by adding after subsection (b)(4) the following new 
        paragraphs--
            ``(5) Recognition of voluntary greenhouse gas emissions 
        reduction, avoidance, or sequestration.--To encourage new and 
        increased voluntary efforts to reduce, avoid, or sequester 
        emissions of greenhouse gases, the Secretary shall develop and 
        establish a program of giving annual public recognition to all 
        reporting persons and entities demonstrating voluntarily 
        achieved greenhouse gases reduction, avoidance, or 
        sequestration, pursuant to the voluntary collections and 
        reporting guidelines issued under this section. Such 
        recognition shall be based on the information certified, 
        subject to section 1001 of title 18, United States Code, by 
        such persons or entities for accuracy as provided in paragraph 
        2 of this subsection, and shall include such information 
        reported prior to the enactment of this paragraph. At a minimum 
        such recognition shall annually be published in the Federal 
        Register.
            ``(6) Review and revision of guidelines.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subparagraph, the Secretary 
                of Energy, acting through the Administrator of the 
                Energy Information Administration, shall conduct a 
                review of guidelines established under this section 
                regarding the accuracy and reliability of reports of 
                greenhouse gas reductions and related information.
                    ``(B) Contents.--The review shall include the 
                consideration of the need for any amendments to such 
                guidelines, including--
                            ``(i) a random or other verification 
                        process using the authorities available to the 
                        Secretary under other provisions of law;
                            ``(ii) a range of reference cases for 
                        reporting of project-based activities in 
                        sectors, including the measures specified in 
                        subparagraph (1)(B) of this subsection, and the 
                        inclusion of benchmark and default 
                        methodologies and best practices for use as 
                        reference cases for eligible projects;
                            ``(iii) issues, such as comparability, that 
                        are associated with the option of reporting on 
                        an entity-wide basis or on an activity or 
                        project basis;
                            ``(iv) safeguards to address the 
                        possibility of reporting, inadvertently or 
                        otherwise, of some or all of the same 
                        greenhouse gas emissions reductions by more 
                        than one reporting entity or person and to make 
                        corrections where necessary;
                            ``(v) provisions that encourage entities or 
                        persons to register their certified, by 
                        appropriate and credible means, baseline 
                        emissions levels on an annual basis, taking 
                        into consideration all of their reports made 
                        under this section prior to the enactment of 
                        this paragraph;
                            ``(vi) procedures and criteria for the 
                        review and registration of ownership of all or 
                        part of any reported and verified emissions 
                        reductions relative to a reported baseline 
                        emissions level under this section; and
                            ``(vii) accounting provisions needed to 
                        allow for changes in registration of ownership 
                        of emissions reductions resulting from a 
                        voluntary private transaction between reporting 
                        entities or persons.
                For the purposes of this paragraph, the term 
                `reductions' means any and all activities taken by a 
                reporting entity or person that reduce, avoid or 
                sequester greenhouse gas emissions, or sequester 
                greenhouse gases from the atmosphere.
                    ``(C) Economic analysis.--The review should 
                consider the costs and benefits of any such amendments, 
                the effect of such amendments on participation in this 
                program, including by farmers and small businesses, and 
                the need to avoid creating undue economic advantages or 
                disadvantages for persons or entities in the private 
                sector. The review should provide, where appropriate, a 
                range of reasonable options that are consistent with 
                the voluntary nature of this section and that will help 
                further the purposes of this section.
                    ``(D) Public comment and submission of report.--The 
                findings of the review shall be made available in draft 
                form for public comment for at least 45 days, and a 
                report containing the findings of the review shall be 
                submitted to Congress and the President no later than 
                one year after date of enactment of this section.
                    ``(E) Revision of guidelines.--If the Secretary, 
                after consultation with the Administrator, finds, based 
                on the study results, that changes to the program are 
                likely to be beneficial and cost effective in improving 
                the accuracy and reliability of reported greenhouse gas 
                reductions and related information, are consistent with 
                the voluntary nature of this section, and further the 
                purposes of this section, the Secretary shall propose 
                and promulgate changes to program guidelines based with 
                such findings. In carrying out the provisions of this 
                paragraph, the Secretary shall consult with the 
                Secretary of Agriculture and the Administrator of the 
                Small Business Administration to encourage greater 
                participation by small business and farmers in 
                addressing greenhouse gas emission reductions and 
                reporting such reductions.
                    ``(F) Periodic review and revision of guidelines.--
                The Secretary shall thereafter review and revise these 
                guidelines at least once every 5 years, following the 
                provisions for economic analysis, public review, and 
                revision set forth in subsections (C) through (E) of 
                this section.'';
            (6) in subsection (c), by inserting ``the Secretary of the 
        Department of Agriculture, the Secretary of the Department of 
        Commerce, the Administrator of the Energy Information 
        Administration, and'' before ``the Administrator''; and
            (7) by adding at the end the following:
    ``(d) Public Awareness Program.--
            ``(1) In general.--The Secretary shall create and implement 
        a public awareness program to educate all persons in the United 
        States of--
                    ``(A) the direct benefits of engaging in voluntary 
                greenhouse gas emissions reduction measures and having 
                the emissions reductions certified under this section 
                and available for use therein; and
                    ``(B) the ease of use of the forms and procedures 
                for having emissions reductions certified under this 
                section.
            ``(2) Agricultural and small business outreach.--The 
        Secretary of Agriculture and the Administrator of the Small 
        Business Administration shall assist the Secretary in creating 
        and implementing a targeted public awareness program to 
        encourage voluntary participation by small businesses and 
        farmers.''.

SEC. 402. REPORT ON INDUSTRIAL APPLICATIONS OF CARBON DIOXIDE.

    The Secretary shall offer to enter into a contract with the 
National Academy of Sciences under which the National Academy shall 
conduct a study of uses (including industrial applications) for 
captured carbon dioxide other than sequestration, enhanced oil recovery 
or carbon trading.

SEC. 403. NATIONAL CARBON DIOXIDE STORAGE ASSESSMENT.

    (a) Definitions.--In this section:
            (1) Assessment.--The term ``assessment'' means the national 
        assessment of geological storage capacity for carbon dioxide 
        completed under this section.
            (2) Capacity; geological storage capacity.--The terms 
        ``capacity'' and ``geological storage capacity'' mean the 
        portion of a storage formation that can retain carbon dioxide 
        under the parameters (including physical, geological, and 
        economic parameters) established under the methodology 
        developed under this section.
            (3) Engineered hazards.--The term ``engineered hazards'' 
        includes the location and completion history of any well that 
        could affect potential storage.
            (4) Risk.--The term ``risk'' includes risks posed by 
        geochemical, geomechanical, hydrogeological, structural, and 
        engineered hazards.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Interior, acting through the Director of the United States 
        Geological Survey.
            (6) Storage formation.--The term ``storage formation'' 
        means a deep saline formation, unmineable coal seam, or oil or 
        gas reservoir capable of accommodating a volume of industrial 
        carbon dioxide.
    (b) Methodology for National Assessment of Geological Storage 
Capacity for Carbon Dioxide.--
            (1) In general.--Not later than 270 days after the date of 
        enactment of this section, the Secretary shall develop a 
        methodology for conducting a national assessment of the 
        geological storage capacity for carbon dioxide.
            (2) Potential storage formations.--In developing the 
        methodology under this section, the Secretary shall consider--
                    (A) the geographic extent of all potential storage 
                formations of the contiguous 48 States;
                    (B) the capacity of the potential storage 
                formations;
                    (C) the ability of the potential storage formations 
                to be injected with carbon dioxide;
                    (D) an estimate of potential volumes of oil and gas 
                recoverable by injection and storage of industrial 
                carbon dioxide in potential storage formations;
                    (E) an estimate of the percentage of carbon dioxide 
                injected into oil and gas wells that would be 
                permanently stored when used in enhanced oil recovery;
                    (F) the potential of vertical and horizontal 
                migration of carbon dioxide from the potential storage 
                formations;
                    (G) the ability of monitoring of and data 
                collection from the potential storage formations; and
                    (H) the risk associated with the potential storage 
                formations.
            (3) Coordination.--
                    (A) Federal coordination.--The Secretary shall 
                coordinate 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) State coordination.--The Secretary shall 
                consult with the State geological surveys and other 
                relevant entities to ensure, to the maximum extent 
                practicable, the usefulness and success of the 
                assessment.
            (4) Opportunity for review and comment.--During the period 
        beginning on the date that is 270 days after the date of 
        enactment of this section and ending not more than 60 days, 
        after the commencement of the assessment, the Secretary shall 
        provide the heads of stakeholder Federal agencies, the heads of 
        State land management agencies, industry stakeholders, and the 
        public with an opportunity to review and comment on the 
        proposed methodology developed under subparagraph (A).
            (5) Independent verification.--During the period described 
        in subparagraph (D), the Secretary shall convene a committee of 
        subject matter experts composed of representatives of Federal 
        agencies, institutions of higher education, nongovernmental 
        organizations, State organizations, industry, and international 
        geoscience organizations to conduct a review of the methodology 
        for capacity and risk estimation required to carry out this 
        section.
            (6) Final publication.--Not later than 90 days after the 
        period described in subparagraph (D), the Secretary shall--
                    (A) publish in the Federal Register a description 
                of the final methodology to be used for conducting the 
                national assessment of the geological storage capacity 
                for carbon dioxide required under subparagraph (A), 
                taking into account any comments received under 
                subparagraph (D) and the methodology review conducted 
                under subsection (E); and
                    (B) issue a public report that responds to the 
                comments received under subparagraph (D) and the 
                methodology review under subparagraph (E).
    (c) Completion of National Assessment of Geological Storage 
Capacity for Carbon Dioxide.--
            (1) In general.--Not later than 3 years after the date of 
        final publication of the methodology, the Secretary shall 
        complete a national assessment of geological storage capacity 
        for carbon dioxide using the methodology under paragraph (2).
            (2) Database.--
                    (A) In general.--The Secretary shall establish a 
                database on the Internet accessible to the public that 
                provides the results of the assessment required under 
                this section, including a detailed description of the 
                data collected under the assessment.
                    (B) Data.--The database shall include the metrics 
                necessary to rank potential storage sites for capacity 
                and risk, across the United States, within each State, 
                by formation, and within each basin.
                    (C) Report.--
                            (i) In general.--Not later than 180 days 
                        after the date on which the assessment required 
                        under this section is completed, the Secretary 
                        shall submit to the appropriate committees of 
                        Congress and the President a report that 
                        describes the findings of the assessment.
                            (ii) Public availability.--The Secretary 
                        shall make the report required under this 
                        subparagraph available on the internet.
    (d) Regulatory Reform for Carbon Sequestration Commission.--
            (1) Establishment.--
                    (A) In general.--There is established a commission 
                to be known as the ``Regulatory Reform for Carbon 
                Sequestration Commission'' (referred to in this 
                subsection as the ``Commission''.
                    (B) Membership.--The Commission shall be composed 
                of 15 members, to be appointed by the President, of 
                whom--
                            (i) 1 member shall be a representative of 
                        the Department of Energy;
                            (ii) 1 member shall be a representative of 
                        the Department of Commerce;
                            (iii) 1 member shall be a representative of 
                        the Environmental Protection Agency; and
                            (iv) the remaining members shall be--
                                    (I) representatives from the 
                                manufacturing industry;
                                    (II) representatives from the 
                                electric utility industry;
                                    (III) representatives from non-
                                governmental organizations that focus 
                                on--
                                            (aa) energy efficiency; and
                                            (bb) environmental 
                                        protection; or
                                    (IV) representatives from the 
                                investment banking community.
                    (C) Date of appointments.--The appointment of a 
                member of the Commission shall be made not later than 
                90 days after the date of enactment of this subsection.
                    (D) Term; vacancies.--
                            (i) Term.--Subject to clause (ii), the term 
                        of office of a member of the Commission shall 
                        be 3 years.
                            (ii) Vacancies.--A vacancy on the 
                        Commission--
                                    (I) shall not affect the powers of 
                                the Commission; and
                                    (II) shall be filled in the same 
                                manner as the original appointment was 
                                made.
                    (E) Initial meeting.--Not later than 30 days after 
                the date on which all members of the Commission have 
                been appointed, the Commission shall hold the initial 
                meeting of the Commission.
                    (F) Meetings.--The Commission shall meet at the 
                call of the Chairperson.
                    (G) Quorum.--A majority of the members of the 
                Commission shall constitute a quorum, but a lesser 
                number of members may hold hearings.
                    (H) Chairperson and vice chairperson.--The 
                Commission shall select a Chairperson and Vice 
                Chairperson from among the members of the Commission.
            (2) Duties.--The Commission shall--
                    (A) Study.--The Commission shall conduct a study to 
                identify any regulatory barriers to siting new 
                manufacturing facilities, power plants, and other 
                necessary infrastructure in close proximity to the 
                potential sites ranked under subsection (c)(2)(B).
                    (B) Recommendations.--The Commission shall develop 
                recommendations to remove the barriers identified under 
                paragraph (A).
                    (C) Report.--Not later than 1 year after the date 
                of release of the Final Publication under paragraph 
                (b)(6) of this section, the Commission shall submit to 
                the President and Congress a report that contains--
                            (i) a detailed statement of the findings 
                        and conclusions of the Commission; and
                            (ii) the recommendations of the Commission 
                        for removing the barriers identified under 
                        subparagraph (A).

SEC. 404. LIABILITY OF FULL CARBON STORAGE FACILITIES AND DEPLETED OIL 
              FIELDS.

    On determination by the Governor of a State that a carbon facility 
of the State or an oil field in that State that used enhanced oil 
recovery practices that the facility is full, or that the oil field is 
depleted, the Governor shall transfer liability for the facility or oil 
field to the Federal Government, in accordance with such procedures and 
requirements as the Secretary may establish, by regulation.

SEC. 405. FUNDING.

    (a) In General.--There is authorized to be appropriated to carry 
out this title $80,000,000 for each of the fiscal years 2008 through 
2015.
    (b) Effect of Limitation on Appropriations.--If, in any fiscal 
year, the amount appropriated to carry out this title is less than an 
amount equal to 75 percent of the amount authorized in to be 
appropriated for the fiscal year under subsection (a), each carbon 
capture-ready or carbon capture and sequestration retrofit requirement 
of this Act shall terminate.

  TITLE V--STUDIES, ENERGY DAY, AND REESTABLISHMENT OF THE OFFICE OF 
                        TECHNOLOGICAL ASSESSMENT

                          Subtitle A--Studies

SEC. 501. STUDY OF THE REPLACEMENT OF HVACR EQUIPMENT.

    (a) Study Required.--The Secretary of Energy shall convene a study 
group including the Director of the Office of Management and Budget 
(OMB), the Deputy Secretary of Housing and Urban Development (HUD), 
representatives of the energy community, representatives of the housing 
community, and such other individuals as the Secretary of Energy, 
Director of OMB, and Deputy Secretary of HUD may designate. The 
Secretary of Energy, Director of OMB, and Deputy Secretary of HUD, in 
consultation with the study group, shall evaluate the impact of the 
replacement of residential HVACR equipment--that does not meet current 
minimum efficiency requirements as stated in the National Appliance 
Energy Conservation Act of 1987--at the time of sale of residential 
homes.
    (b) Report Required.--Not later than 6 months after the date of 
enactment of this Act, the Secretary of Energy, Director of OMB, and 
Director of HUD shall submit a report regarding the findings of the 
study group to the Committee on Energy and Commerce in the House of 
Representatives and the Committee on Energy and Natural Resources of 
the Senate.

SEC. 502. STUDY ON FUEL ECONOMY STANDARDS FOR HEAVY TRUCKS.

    (a) Within 2 years of enactment of this Act, The National Science 
Foundation shall conduct a study to--
            (1) determine the fuel economy effects on heavy trucks as a 
        result of compliance with Title II of the Clean Air Act; and
            (2) assess the ability of different technologies for 
        increased fuel economy of heavy trucks while adhering to 
        existing regulations established under Title II of the Clean 
        Air Act.
    (b) Within 6 months of completing the study in section (a), the 
National Academies shall report to Congress regarding--
            (1) the technological feasibility to comply with fuel 
        economy standards for heavy trucks; and
            (2) the potential fuel savings due to fuel economy 
        standards on heavy trucks.

SEC. 503. STUDY OF THE USE OF SYNTHETIC FUEL IN COMMERCIAL AIRCRAFT.

    (a) Within 1 year of enactment of this section, the Secretary of 
Energy in coordination with the Federal Aviation Administrator, shall 
conduct a study on the use of synthetic fuels in commercial aircraft.
    (b) Within 1 year of completing the study in section (a), the 
Secretary shall submit a report to the appropriate Congressional 
Committees regarding--
            (1) the effects of synthetic fuels on any effect on--
                    (A) the aircraft engines;
                    (B) the overall performance of the aircraft; and
                    (C) the health and safety of--
                            (i) the aircrew;
                            (ii) the maintenance crew; and
                            (iii) passengers; and
            (2) the reduction in petroleum imports due to the use of 
        synthetic fuels in commercial aircraft.

SEC. 504. STUDY OF INFRASTRUCTURE NEEDS FOR SIGNIFICANT USE OF 
              RENEWABLE FUELS.

    (a) Within 2 years of enactment of this Act, the Secretary of 
Energy, in coordination with the Secretaries of Transportation, 
Commerce and Agriculture, and the National Academies of Science, shall 
conduct a study to--
            (1) identify future infrastructure needs for an increase in 
        the Renewable Fuels Standard in Section 1501 of the Energy 
        Policy Act of 2005 to 36 billion gallons by 2022; and
            (2) the impact of the Renewable Fuels Standard in Section 
        1501 of the Energy Policy Act of 2005 on the price of animal 
        feed and fertilizer at--
                    (A) its current level; and
                    (B) an expanded standard of 36 billion gallons by 
                2022.
    (b) Within 1 year of completing the study in section (a), the 
Secretary shall submit to Congress a report of the study's findings.

SEC. 505. STUDY ON A STRATEGIC NATURAL GAS RESERVE.

    (a) Within 1 year of enactment of this Act, the Secretary of Energy 
shall conduct a study to--
            (1) determine the necessity of establishing a strategic 
        natural gas reserve similar to the Strategic Petroleum Reserve;
            (2) assess the ability of a Strategic Natural Gas Reserve 
        to be built in four different quadrants of the continental 
        United States; and
            (3) assess the amount of royalty-in-kind gas necessary to 
        fill a Strategic Natural Gas Reserve.
    (b) Within 1 year of completing the study in section (a), the 
Secretary shall submit to Congress a report of the study's findings.

                      Subtitle B--Energy Education

SEC. 511. ENERGY DAY.

    (a) Purpose.--The purpose of this section is to raise public 
awareness of energy issues, including--
            (1) the origins of energy;
            (2) areas relating to energy in which the United States is 
        vulnerable; and
            (3) the basis of petroleum prices.
    (b) Designation.--The President shall--
            (1) designate an appropriate day as ``Energy Day''; and
            (2) each year call upon the people of the United States to 
        observe the day with appropriate ceremonies and activities in 
        schools and communities.

SEC. 512. ENERGY EFFICIENT EDUCATION PROGRAMS.

    (a) In General.--The Secretary shall carry out an education program 
to increase public awareness of measures that consumers can take to 
increase energy efficiency.
    (b) DOE Website.--In carrying out subsection (a), the Secretary 
shall improve the quality and quantity of information, and ease of 
access to that information, that the public can access on the website 
of the Department of Energy, including educational materials developed 
under subsection (a).

             Subtitle C--Office of Technological Assessment

SEC. 521. REESTABLISHMENT OF THE OFFICE OF TECHNOLOGICAL ASSESSMENT.

    (a) Short Title Amendment.--The first section of the Technology 
Assessment Act of 1972 (2 U.S.C. 471 note) is amended by striking 
``Technology Assessment Act of 1972'' and inserting the ``Office of 
Technology Assessment Reestablishment Act of 2007''.
    (b) Authorization of Appropriations.--Section 12(a) of the Office 
of Technology Assessment Reestablishment Act of 2007 (as so renamed by 
section 1 of this Act) (2 U.S.C. 481(a)) is amended by striking 
``$5,000,000 in the aggregate for the two fiscal years ending June 30, 
1973, and June 30, 1974, and thereafter such sums as may be necessary'' 
and inserting ``$25,000,000 for each of the fiscal years 2008 through 
2013''.
    (c) Establishment of the Office of Technology Assessment.--Section 
3(c) of the Office of Technology Assessment Reestablishment Act of 2007 
(U.S.C. 471) is amended by--
            (1) striking ``and'' at the end of paragraph (7);
            (2) striking ``.'' at the end of paragraph (8), and 
        inserting ``;''; and
            (3) adding after paragraph (8) the following language:
            ``(9) make assessments relating to the uses and application 
        of technology to address current national science and 
        technology policy issues; and
            ``(10) assess and analyze foreign science and technologies 
        that have the capability of contributing to solving energy 
        security related issues through incorporation of foreign 
        science and technologies into the technology portfolio of the 
        United States.''.

SEC. 522. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums that are 
necessary to carry out this title.
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