<enum>I</enum><header>Clean Energy</header> <subtitle id="H51AF97481E4846BEAC3AC1C89F78135F"><enum>A</enum><header>Combined Efficiency and Renewable Electricity Standard</header> <section id="HA2E29097D0CA43CD980425E5F76DB316"><enum>101.</enum><header>Combined efficiency and renewable electricity standard</header> <subsection id="HB87D5D0569124BB5AA7D6B66CC48A156"><enum>(a)</enum><header>In general</header><text>Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HB3C13D5DC50E4DF8A6C13D2F6374AEFC" style="OLC"> <section id="H5A13D8BE328C4BFC9063802F28CAF3FF"><enum>610.</enum><header>Combined efficiency and renewable electricity standard</header> <subsection id="HAF51199CA37D4F268B919B870D08C19A"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="HC23720E0B397473589649130C069E32A"><enum>(1)</enum><header>CHP savings</header><text>The term <quote>CHP savings</quote> means—</text> <subparagraph id="H29B84582181A47B287BA3D074290021D"><enum>(A)</enum><text>CHP system savings from a combined heat and power system that commences operation after the date of enactment of this section; and</text> </subparagraph><subparagraph id="H26273E89F9C54534A2A915498FE3E82C"><enum>(B)</enum><text>the increase in CHP system savings from, at any time after the date of the enactment of this section, upgrading, replacing, expanding, or increasing the utilization of a combined heat and power system that commenced operation on or before the date of enactment of this section.</text> </subparagraph></paragraph><paragraph id="HB0A1ADB6FAC548D593B2AE7BF29398B1"><enum>(2)</enum><header>CHP system savings</header><text>The term <quote>CHP system savings</quote> means the increment of electric output of a combined heat and power system that is attributable to the higher efficiency of the combined system (as compared to the efficiency of separate production of the electric and thermal outputs).</text> </paragraph><paragraph id="H7C7E57E56DB641D1ADEF2530672CD874"><enum>(3)</enum><header>Combined heat and power system</header><text>The term <quote>combined heat and power system</quote> means a system that uses the same energy source both for the generation of electrical or mechanical power and the production of steam or another form of useful thermal energy, provided that—</text> <subparagraph id="HF2D04CACC5BB4CA8A3575F5F492588BC"><enum>(A)</enum><text>the system meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; and</text> </subparagraph><subparagraph id="H9978469C1FCA4C77B178F2E996C62185"><enum>(B)</enum><text>the net sales of electricity by the facility to customers not consuming the thermal output from that facility will not exceed 50 percent of total annual electric generation by the facility.</text> </subparagraph></paragraph><paragraph id="HF4388D10AE804678AEADC832FCE21351"><enum>(4)</enum><header>Customer facility savings</header><text>The term <quote>customer facility savings</quote> means a reduction in end-use electricity consumption (including recycled energy savings) at a facility of an end-use consumer of electricity served by a retail electric supplier, as compared to—</text> <subparagraph id="HE0FA2FBD11E6469CB42D7D18DF9B6DC4"><enum>(A)</enum><text>in the case of a new facility, consumption at a reference facility of average efficiency;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H5D4FBD722667415795BB86625311E0D7"><enum>(B)</enum><text>in the case of an existing facility, consumption at such facility during a base period, except as provided in subparagraphs (C) and (D);</text> </subparagraph><subparagraph id="HEF5FA9F156404613818F1B0A397C2060"><enum>(C)</enum><text>in the case of new equipment that replaces existing equipment with remaining useful life, the projected consumption of the existing equipment for the remaining useful life of such equipment, and thereafter, consumption of new equipment of average efficiency of the same equipment type; and</text> </subparagraph><subparagraph id="H3CCA8332C1CE4EC185F5B4F75318FC09"><enum>(D)</enum><text>in the case of new equipment that replaces existing equipment at the end of the useful life of the existing equipment, consumption by new equipment of average efficiency of the same equipment type.</text> </subparagraph></paragraph><paragraph id="H3BFD417BECB540FD85851533377086E3"><enum>(5)</enum><header>Distributed renewable generation facility</header><text>The term <quote>distributed renewable generation facility</quote> means a facility that—</text> <subparagraph id="HC0F26325F97941B4AD1770EA3697FEFC"><enum>(A)</enum><text>generates renewable electricity;</text> </subparagraph><subparagraph id="H80D2BCB0D7F84AA7AE8AEC135124B9A6"><enum>(B)</enum><text>primarily serves 1 or more electricity consumers at or near the facility site; and</text> </subparagraph><subparagraph id="HD472EB313E5E4380A6604E4578C007BC"><enum>(C)</enum><text display-inline="yes-display-inline">is no greater than—</text> <clause id="H2BD71BCEA5B14A13B1ACFF8D6C5F3784"><enum>(i)</enum><text>2 megawatts in capacity; or</text> </clause><clause id="H71EF7C94BBB14157A0CBAC514A0FFFB8"><enum>(ii)</enum><text>4 megawatts in capacity, in the case of a facility that is placed in service after the date of enactment of this section and generates electricity from a renewable energy resource other than by means of combustion.</text> </clause></subparagraph></paragraph><paragraph id="H6F34BBD424A644A596E591C2453AF20A"><enum>(6)</enum><header>Electricity savings</header><text>The term <quote>electricity savings</quote> means reductions in electricity consumption, relative to business-as-usual projections, achieved through measures implemented after the date of enactment of this section, limited to—</text> <subparagraph id="HC8AE1280FFE849F3ADAA74AEBEE5454C"><enum>(A)</enum><text>customer facility savings of electricity, adjusted to reflect any associated increase in fuel consumption at the facility;</text> </subparagraph><subparagraph id="H2A121C44AE974245BCF34BF6F8521B68"><enum>(B)</enum><text>reductions in distribution system losses of electricity achieved by a retail electricity distributor, as compared to losses attributable to new or replacement distribution system equipment of average efficiency;</text> </subparagraph><subparagraph id="H0F3AFA61713548F4BC20B3B75F5F540F"><enum>(C)</enum><text>CHP savings; and</text> </subparagraph><subparagraph id="H811698B938404E4CB30B0E569A906124"><enum>(D)</enum><text>fuel cell savings.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HA6DB7A91EF30400CA8483C7EE9156B9C"><enum>(7)</enum><header>Central procurement State</header><text display-inline="yes-display-inline">The term ‘central procurement State’ means a State that, as of January 1, 2009, had adopted and implemented a legally enforceable mandate that, in lieu of requiring utilities to submit credits or certificates issued based on generation of electricity from (or to purchase or generate electricity from) resources defined by the State as renewable, requires retail electric suppliers to collect payments from electricity ratepayers within the State that are used for central procurement, by a State agency or a public benefit corporation established pursuant to State law, of credits or certificates issued based on generation of electricity from resources defined by the State as renewable.</text> </paragraph><paragraph id="H087B73EFE0D44397834A95DB0035586F"><enum>(8)</enum><header>Federal renewable electricity credit</header><text>The term <quote>Federal renewable electricity credit</quote> means a credit, representing one megawatt hour of renewable electricity, issued pursuant to subsection (e).</text> </paragraph><paragraph id="HAC81EA28FE0F415D920832475DCAA4E1"><enum>(9)</enum><header>Fuel cell</header><text>The term <quote>fuel cell</quote> means a device that directly converts the chemical energy of a fuel and an oxidant into electricity by electrochemical processes occurring at separate electrodes in the device.</text> </paragraph><paragraph id="H0A0BE803E3DE4898AFB42CF0BA00F9C4"><enum>(10)</enum><header>Fuel cell savings</header><text>The term ‘fuel cell savings’ means the electricity saved by a fuel cell that is installed after the date of enactment of this section, or by upgrading a fuel cell that commenced operation on or before the date of enactment of this section, as a result of the greater efficiency with which the fuel cell transforms fuel into electricity as compared with sources of electricity delivered through the grid, provided that—</text> <subparagraph id="HB8DB2304D1FF42999A990C709676239D"><enum>(A)</enum><text>the fuel cell meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; and</text> </subparagraph><subparagraph id="H3243DE7CC5A94B03AE2EF2D94006CB46"><enum>(B)</enum><text>the net sales of electricity from the fuel cell to customers not consuming the thermal output from the fuel cell, if any, do not exceed 50 percent of the total annual electricity generation by the fuel cell.</text> </subparagraph></paragraph><paragraph id="HD127DF50DF844DF9ACE78B11688A5D1C"><enum>(11)</enum><header>Other qualifying energy resource</header><text>The term <quote>other qualifying energy resource</quote> means any of the following:</text> <subparagraph id="HDF1B5473FC794CA58B032EBA233DDA37"><enum>(A)</enum><text>Landfill gas.</text> </subparagraph><subparagraph id="HBBC71BAE1A6747519D97C0AC2E38C0A7"><enum>(B)</enum><text>Wastewater treatment gas.</text> </subparagraph><subparagraph id="H1DB07FC3F036402CBB366D317FCB5ADD"><enum>(C)</enum><text>Coal mine methane used to generate electricity at or near the mine mouth.</text> </subparagraph><subparagraph id="HB992C4B37C51494687B79ADCA0900C23"><enum>(D)</enum><text>Qualified waste-to-energy.</text> </subparagraph></paragraph><paragraph id="H08A37D9ACB944039B6EE5B85F8E34051"><enum>(12)</enum><header>Qualified hydropower</header><text>The term <quote>qualified hydropower</quote> means—</text> <subparagraph id="H69C7724ED4A84BF39567DF90EA978793"><enum>(A)</enum><text>energy produced from increased efficiency achieved, or additions of capacity made, on or after January 1, 1988, at a hydroelectric facility that was placed in service before that date and does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions; or</text> </subparagraph><subparagraph id="HB60DF146AD064ACEB3B7F3873F434F90"><enum>(B)</enum><text>energy produced from generating capacity added to a dam on or after January 1, 1988, provided that the Commission certifies that—</text> <clause id="H60FA8BD35B3B4A97981D64C09BF83AEE"><enum>(i)</enum><text>the dam was placed in service before the date of the enactment of this section and was operated for flood control, navigation, or water supply purposes and was not producing hydroelectric power prior to the addition of such capacity;</text> </clause><clause id="H3F96AB65BE1943E3A60F86934A2524C1"><enum>(ii)</enum><text>the hydroelectric project installed on the dam is licensed (or is exempt from licensing) by the Commission and is in compliance with the terms and conditions of the license or exemption, and with other applicable legal requirements for the protection of environmental quality, including applicable fish passage requirements; and</text> </clause><clause id="HE0D3E15D19CF4AB3B7DA6DEBB8812491"><enum>(iii)</enum><text>the hydroelectric project installed on the dam is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license or exemption requirements that require changes in water surface elevation for the purpose of improving the environmental quality of the affected waterway.</text> </clause></subparagraph></paragraph><paragraph id="HA39B97B3FB8D4D0780D41596F354983A"><enum>(13)</enum><header>Qualified waste-to-energy</header><text>The term <quote>qualified waste-to-energy</quote> means energy from the combustion of municipal solid waste or construction, demolition, or disaster debris, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, provided that—</text> <subparagraph id="HD4237008EA014EB7A6C29B9689E59F4E"><enum>(A)</enum><text>such term shall include only the energy derived from the non-fossil biogenic portion of such waste or debris;</text> </subparagraph><subparagraph id="H5716B22FEC46413AA175E2629B77BB2F"><enum>(B)</enum><text>the Commission determines, with the concurrence of the Administrator of the Environmental Protection Agency, that the total lifecycle greenhouse gas emissions attributable to the generation of electricity from such waste or debris are lower than those attributable to the likely alternative method of disposing of such waste or debris; and</text> </subparagraph><subparagraph id="H3AE45394100C4110B82C478CACB49055"><enum>(C)</enum><text>the owner or operator of the facility generating electricity from such energy provides to the Commission, on an annual basis—</text> <clause id="H94F458760EFC474880CEC23BCF6C034F"><enum>(i)</enum><text>a certification that the facility is in compliance with all applicable State, tribal, and Federal environmental permits;</text> </clause><clause id="H343CF25C823C48D1963691C7D58D98B0"><enum>(ii)</enum><text>in the case of a facility that commenced operation before the date of enactment of this section, a certification that the facility meets emissions standards promulgated under section 112 or 129 of the Clean Air Act (42 U.S.C. 7412 or 7429) that apply as of the date of enactment of this section to new facilities within the relevant source category; and</text> </clause><clause id="HB35EDA5EAC744CDC8139219FA1C5C457"><enum>(iii)</enum><text>in the case of the combustion, pyrolization, or gasification of municipal solid waste, a certification that each local government unit from which such waste originates operates, participates in the operation of, contracts for, or otherwise provides for, recycling services for its residents.</text> </clause></subparagraph></paragraph><paragraph id="HA4FE32BF4F7E4A9CB3D4FBADE9763528"><enum>(14)</enum><header>Recycled energy savings</header><text>The term <quote>recycled energy savings</quote> means a reduction in electricity consumption that results from a modification of an industrial or commercial system that commenced operation before the date of enactment of this section, in order to recapture electrical, mechanical, or thermal energy that would otherwise be wasted.</text> </paragraph><paragraph display-inline="no-display-inline" id="HEBB68D2BF16D4D5FB473DBC66C5854AC"><enum>(15)</enum><header>Renewable biomass</header><text display-inline="yes-display-inline">The term <quote>renewable biomass</quote> means any of the following:</text> <subparagraph id="HE8E51C4462CE4627856BF4B3F83C846A"><enum>(A)</enum><text>Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are—</text> <clause id="HD0C6690799824EC5A9E3C666E9AD874B"><enum>(i)</enum><text display-inline="yes-display-inline">not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth stands, late-successional stands (except for dead, severely damaged, or badly infested trees), components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;</text> </clause><clause id="H998FEE1F9D6B48B295A86E34FA5739C0"><enum>(ii)</enum><text>harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and</text> </clause><clause id="HCDBADAD3D5A14179BB54AD47F7E5899E"><enum>(iii)</enum><text>harvested in accordance with Federal and State law, and applicable land management plans.</text> </clause></subparagraph><subparagraph id="H0E058C19F4A1490197E8CFA355B83751"><enum>(B)</enum><text>Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including—</text> <clause id="H6B8D67FA2DDF41D7881D69F0B27016AD"><enum>(i)</enum><text>renewable plant material, including—</text> <subclause id="HE7908040A4A64B0899C8F7754C0E83E5"><enum>(I)</enum><text>feed grains;</text> </subclause><subclause id="H2E936BF6B2634A259ED6EBBAF49B4EA9"><enum>(II)</enum><text>other agricultural commodities;</text> </subclause><subclause id="HD9FD50EA08664C0CA2ABE9DEFE22C3EF"><enum>(III)</enum><text>other plants and trees; and</text> </subclause><subclause id="H00CB4C4B407C49A5BE6BB9E18A0C5252"><enum>(IV)</enum><text>algae; and</text> </subclause></clause><clause id="HFBE78147834743229341F77142BF11CB"><enum>(ii)</enum><text>waste material, including—</text> <subclause id="H9F524692FEA646379ABF2FA7D0575C9C"><enum>(I)</enum><text>crop residue;</text> </subclause><subclause id="HC17BAA0D6495439096E91B44DF97DD12"><enum>(II)</enum><text>other vegetative waste material (including wood waste and wood residues);</text> </subclause><subclause id="HC5B007CBB7DE4A17852EEE4DB2600319"><enum>(III)</enum><text>animal waste and byproducts (including fats, oils, greases, and manure);</text> </subclause><subclause id="H1D7C96C9920140D6A59154440C394C3D"><enum>(IV)</enum><text>construction waste; and</text> </subclause><subclause id="HBE20EAC2D68140ACB9E6C933C35EB48A"><enum>(V)</enum><text>food waste and yard waste.</text> </subclause></clause></subparagraph><subparagraph id="HF35357D26AD749C79464EAB32FBE7B22"><enum>(C)</enum><text display-inline="yes-display-inline">Residues and byproducts from wood, pulp, or paper products facilities.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HC253AA319A04441E837EDFECCF23E4EF"><enum>(16)</enum><header>Renewable electricity</header><text>The term <quote>renewable electricity</quote> means electricity generated (including by means of a fuel cell) from a renewable energy resource or other qualifying energy resources.</text> </paragraph><paragraph id="H729A30E787DB490F93063D7AE03898DE"><enum>(17)</enum><header>Renewable energy resource</header><text>The term <quote>renewable energy resource</quote> means each of the following:</text> <subparagraph id="H7671C120F2654B43886B6B3883CA4247"><enum>(A)</enum><text>Wind energy.</text> </subparagraph><subparagraph id="H8794613908AC4211B64295F3750AD9D4"><enum>(B)</enum><text>Solar energy.</text> </subparagraph><subparagraph id="HF6DC3D59F2944E2FB35394E41B897FFC"><enum>(C)</enum><text>Geothermal energy.</text> </subparagraph><subparagraph id="H8E212DBA849441CF825399026ADBC49A"><enum>(D)</enum><text>Renewable biomass.</text> </subparagraph><subparagraph id="HFF3F0A5F476E483A9B6263F15023033A"><enum>(E)</enum><text>Biogas derived exclusively from renewable biomass.</text> </subparagraph><subparagraph id="HF3AFF2FBE4D54E8299082CAB949FF14B"><enum>(F)</enum><text>Biofuels derived exclusively from renewable biomass.</text> </subparagraph><subparagraph id="HBB2A0F426ACB4C0EA3F130C6E2C64491"><enum>(G)</enum><text>Qualified hydropower.</text> </subparagraph><subparagraph id="HD8166CBF4CA54D15AFE88729489A10CF"><enum>(H)</enum><text>Marine and hydrokinetic renewable energy, as that term is defined in section 632 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17211">42 U.S.C. 17211</external-xref>).</text> </subparagraph></paragraph><paragraph id="H83D285233F37451DB49E63E9FD4EDFAB"><enum>(18)</enum><header>Retail electric supplier</header> <subparagraph id="H5BF02E43B216449C9743974107B62AD7"><enum>(A)</enum><header>In general</header><text>The term <quote>retail electric supplier</quote> means, for any given year, an electric utility that sold not less than 4,000,000 megawatt hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year.</text> </subparagraph><subparagraph id="HFE1DBB7BA49A4A32B3A6F3F240DCA5BE"><enum>(B)</enum><header>Inclusions and limitations</header><text>For purposes of determining whether an electric utility qualifies as a retail electric supplier under subparagraph (A)—</text> <clause id="HB58F95E242334AF4B34DEC0A5B2A0EF3"><enum>(i)</enum><text>the sales of any affiliate of an electric utility to electric consumers, other than sales to the affiliate’s lessees or tenants, for purposes other than resale shall be considered to be sales of such electric utility; and</text> </clause><clause id="H116891CD60474CF5BAD439931AB0EE86"><enum>(ii)</enum><text>sales by any electric utility to an affiliate, lessee, or tenant of such electric utility shall not be treated as sales to electric consumers.</text> </clause></subparagraph><subparagraph display-inline="no-display-inline" id="H213CE2BE3C714CC68021DB8E6A967E0B"><enum>(C)</enum><header>Affiliate</header><text>For purposes of this paragraph, the term <quote>affiliate</quote> when used in relation to a person, means another person that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, such person, as determined under regulations promulgated by the Commission.</text> </subparagraph></paragraph><paragraph id="HD3E5A9E53D4C4D8198AFCB9FA14B6CB6"><enum>(19)</enum><header>Retail electric supplier’s base amount</header><text>The term <quote>retail electric supplier’s base amount</quote> means the total amount of electric energy sold by the retail electric supplier, expressed in megawatt hours, to electric customers for purposes other than resale during the relevant calendar year, excluding—</text> <subparagraph id="HC3D64B8B10604F39B40DB13EBAEEFCC9"><enum>(A)</enum><text>electricity generated by a hydroelectric facility that is not qualified hydropower;</text> </subparagraph><subparagraph id="HCFDD3C5FE623451FA1B11632B9F5859F"><enum>(B)</enum><text>electricity generated by a nuclear generating unit placed in service after the date of enactment of this section; and</text> </subparagraph><subparagraph id="H3617DFBACED54C568E600CD61F5CCE5A"><enum>(C)</enum><text>the proportion of electricity generated by a fossil-fueled generating unit that is equal to the proportion of greenhouse gases produced by such unit that are captured and geologically sequestered.</text> </subparagraph></paragraph><paragraph id="HD4A59FA82D2443888B06B4112F9B062F"><enum>(20)</enum><header>Retire and retirement</header><text>The terms <quote>retire</quote> and <quote>retirement</quote> with respect to a Federal renewable electricity credit, means to disqualify such credit for any subsequent use under this section, regardless of whether the use is a sale, transfer, exchange, or submission in satisfaction of a compliance obligation.</text> </paragraph><paragraph id="H8AB380B2483544B49011CD1DFECF3C54"><enum>(21)</enum><header>Third-party efficiency provider</header><text>The term <quote>third-party efficiency provider</quote> means any retailer, building owner, energy service company, financial institution or other commercial, industrial or nonprofit entity that is capable of providing electricity savings in accordance with the requirements of this section.</text> </paragraph><paragraph id="HAE3E36DE9F234E528AB6286FE7B892FC"><enum>(22)</enum><header>Total annual electricity savings</header><text>The term <quote>total annual electricity savings</quote> means electricity savings during a specified calendar year from measures implemented since the date of the enactment of this section, taking into account verified measure lifetimes or verified annual savings attrition rates, as determined in accordance with such regulations as the Commission may promulgate and measured in megawatt hours.</text> </paragraph></subsection><subsection id="H978AAA138A9E489FBF5EB48006B10DB9"><enum>(b)</enum><header>Annual compliance obligation</header><text></text> <paragraph id="HE1B99A02A6574EC58A77EEAD6FA457FF"><enum>(1)</enum><header>In general</header><text>For each of calendar years 2012 through 2039, not later than March 31 of the following calendar year, each retail electric supplier shall submit to the Commission an amount of Federal renewable electricity credits and demonstrated total annual electricity savings that, in the aggregate, is equal to such retail electric supplier’s annual combined target as set forth in subsection (d), except as otherwise provided in subsection (h).</text> </paragraph><paragraph id="H61E0FE9F585D4E3F9793B037D608A192"><enum>(2)</enum><header>Demonstration of savings</header><text>For purposes of this subsection, submission of demonstrated total annual electricity savings means submission of a report that demonstrates, in accordance with the requirements of subsection (f), the total annual electricity savings achieved by the retail electric supplier within the relevant compliance year.</text> </paragraph><paragraph id="H74A00F8F09F74AD29F6801C0D59E6211"><enum>(3)</enum><header>Renewable electricity credits portion</header><text>Except as provided in paragraph (4), each retail electric supplier must submit Federal renewable electricity credits equal to at least three quarters of the retail electric supplier’s annual combined target.</text> </paragraph><paragraph id="HA1AC6EC993A44446B9D4E02961574FA9"><enum>(4)</enum><header>State petition</header> <subparagraph id="H7D5E28DDF2FD4D918862886BED3CC79E"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Upon written request from the Governor of any State (including, for purposes of this paragraph, the Mayor of the District of Columbia), the Commission shall increase, to not more than two fifths, the proportion of the annual combined targets of retail electric suppliers located within such State that may be met through submission of demonstrated total annual electricity savings, provided that such increase shall be effective only with regard to the portion of a retail electric supplier’s annual combined target that is attributable to electricity sales within such State.</text> </subparagraph><subparagraph id="H3678421CD0E3477A91E9F08A097C7E73"><enum>(B)</enum><header>Contents</header><text>A Governor’s request under this paragraph shall include an explanation of the Governor’s rationale for determining, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, to make such request. The request shall specify the maximum proportion of annual combined targets (not more than two fifths) that can be met through demonstrated total annual electricity savings, and the period for which such proportion shall be effective.</text> </subparagraph><subparagraph id="HA5F21F9ED89E46DE816272626F895FEA"><enum>(C)</enum><header>Revision</header><text>The Governor of any State may, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, submit a written request for revocation or revision of a previous request submitted under this paragraph. The Commission shall grant such request, provided that—</text> <clause id="H334654DFCEC440719E93E76CD405B711"><enum>(i)</enum><text>any revocation or revision shall not apply to the combined annual target for any year that is any earlier than 2 calendar years after the calendar year in which such request is submitted, so as to provide retail electric suppliers with adequate notice of such change; and</text> </clause><clause id="H1E193C486F664717A83E06589F2197A8"><enum>(ii)</enum><text>any revision shall meet the requirements of subparagraph (A).</text> </clause></subparagraph></paragraph></subsection><subsection id="H924151CC38B5478FB4703E803B44D64C"><enum>(c)</enum><header>Establishment of program</header><text>Not later than 1 year after the date of enactment of this section, the Commission shall promulgate regulations to implement and enforce the requirements of this section. In promulgating such regulations, the Commission shall, to the extent practicable—</text> <paragraph id="H0FE6282E1A5748B3A783C7BC4D4E7FC8"><enum>(1)</enum><text>preserve the integrity, and incorporate best practices, of existing State and tribal renewable electricity and energy efficiency programs;</text> </paragraph><paragraph id="H591D6278B39A407F8A9C65CEFDA53370"><enum>(2)</enum><text>rely upon existing and emerging State, tribal, or regional tracking systems that issue and track non-Federal renewable electricity credits; and</text> </paragraph><paragraph id="HC716AFCB7B9E4FF1A33445E58AED25E2"><enum>(3)</enum><text>cooperate with the States and Indian tribes to facilitate coordination between State, tribal, and Federal renewable electricity and energy efficiency programs and to minimize administrative burdens and costs to retail electric suppliers.</text> </paragraph></subsection><subsection id="H05E907FA79194D0E91CA98FFC0AC447F"><enum>(d)</enum><header>Annual compliance requirement</header> <paragraph id="H7CC60C90BB49475D820AAB35C03F968D"><enum>(1)</enum><header>Annual combined targets</header><text>For each of calendar years 2012 through 2039, a retail electric supplier’s annual combined target shall be the product of—</text> <subparagraph id="H24FB943764D44F818B2D55221E122DE0"><enum>(A)</enum><text>the required annual percentage for such year, as set forth in paragraph (2); and</text> </subparagraph><subparagraph id="H0BE33097233B49F3B981AEFCD6AC25B8"><enum>(B)</enum><text>the retail electric supplier’s base amount for such year.</text> </subparagraph></paragraph><paragraph id="H7C87F8511D3C4846A1BFBA8216072888"><enum>(2)</enum><header>Required annual percentage</header><text>For each of calendar years 2012 through 2039, the required annual percentage shall be as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Entry: 2 text, bold hds" table-type=""> <tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt" colname="column1" colwidth="230pts" min-data-value="190" rowsep="0"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="0" colwidth="95pts" min-data-value="95" rowsep="0"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>Calendar year</bold></entry><entry align="left" colname="column2" morerows="0" namest="column2"><bold>Required annual percentage</bold></entry> </row> </thead> <tbody> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2012</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">6.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">6.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">9.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">9.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">13.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2017</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">13.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2018</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">16.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2019</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">16.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2020</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">20.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2021 through 2039</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">20.0</entry> </row> </tbody> </tgroup> </table> </paragraph></subsection><subsection id="HAD3E7439B81D46A3B25DBD2498AB76A6"><enum>(e)</enum><header>Federal renewable electricity credits</header> <paragraph id="H69D01F85C7F04EFE95C28292858E63D4"><enum>(1)</enum><header>In general</header><text>The regulations promulgated under this section shall include provisions governing the issuance, tracking, and verification of Federal renewable electricity credits. Except as provided in paragraphs (2), (3), and (4) of this subsection, the Commission shall issue to each generator of renewable electricity, 1 Federal renewable electricity credit for each megawatt hour of renewable electricity generated by such generator after December 31, 2011. The Commission shall assign a unique serial number to each Federal renewable electricity credit.</text> </paragraph><paragraph id="H17B795DDD12043C593E44C4B428D9A7D"><enum>(2)</enum><header>Generation from certain State renewable electricity programs</header><text display-inline="yes-display-inline">(A) Except as provided in subparagraph (B), where renewable electricity is generated with the support of payments from a retail electric supplier pursuant to a State renewable electricity program (whether through State alternative compliance payments or through payments to a State renewable electricity procurement fund or entity), the Commission shall issue Federal renewable electricity credits to such retail electric supplier for the proportion of the relevant renewable electricity generation that is attributable to the retail electric supplier’s payments, as determined pursuant to regulations issued by the Commission. For any remaining portion of the relevant renewable electricity generation, the Commission shall issue Federal renewable electricity credits to the generator, as provided in paragraph (1), except that in no event shall more than 1 Federal renewable electricity credit be issued for the same megawatt hour of electricity. In determining how Federal renewable electricity credits will be apportioned among retail electric suppliers and generators in such circumstances, the Commission shall consider information and guidance furnished by the relevant State or States.</text> <subparagraph id="H0B506589817B487FB187C3B6220FFEDE" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">In the case of a central procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection (b), the Commission shall issue directly to the State Federal renewable electricity credits for any renewable electricity for which the State, pursuant to a mandate described in subsection (a)(7), has centrally procured credits or certificates issued based on generation of such renewable electricity.</text> </subparagraph></paragraph><paragraph id="HDC623A005C2D4A4697FADC89EF691C13"><enum>(3)</enum><header>Certain power sales contracts</header><text display-inline="yes-display-inline">Except as otherwise provided in paragraph (2), when a generator has sold renewable electricity to a retail electric supplier under a contract for power from a facility placed in service before the date of enactment of this section, and the contract does not provide for the determination of ownership of the Federal renewable electricity credits associated with such generation, the Commission shall issue such Federal renewable electricity credits to the retail electric supplier for the duration of the contract.</text> </paragraph><paragraph id="HCA62131D74BE4963A6453AE027DD47D5"><enum>(4)</enum><header>Credit multiplier for distributed renewable generation</header> <subparagraph id="HC4E6A0748348461A9EFDB4AA17934C38"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the Commission shall issue 3 Federal renewable electricity credits for each megawatt hour of renewable electricity generated by a distributed renewable generation facility.</text> </subparagraph><subparagraph id="H7B592423A4494F52A5D081448A05D089"><enum>(B)</enum><header>Adjustment</header><text>Except as provided in subparagraph (C), not later than January 1, 2014, and not less frequently than every 4 years thereafter, the Commission shall review the effect of this paragraph and shall, as necessary, reduce the number of Federal renewable electricity credits per megawatt hour issued under this paragraph for any given energy source or technology, but not below 1, to ensure that such number is no higher than the Commission determines is necessary to make distributed renewable generation facilities using such source or technology cost competitive with other sources of renewable electricity generation.</text> </subparagraph><subparagraph id="H7A8076EBE1D04BFCB126BE0F77346FF4"><enum>(C)</enum><header>Facilities placed in service after enactment</header><text>For any distributed renewable generation facility placed in service after the date of enactment of this section, subparagraph (B) shall not apply for the first 10 years after the date on which the facility is placed in service. For each year during such 10-year period, the Commission shall issue to the facility the same number of Federal renewable electricity credits per megawatt hour as are issued to that facility in the year in which such facility is placed in service. After such 10-year period, the Commission shall issue Federal renewable electricity credits to the facility in accordance with the current multiplier as determined pursuant to subparagraph (B).</text> </subparagraph></paragraph><paragraph id="H4EB0E9AA4AF44CC387A7BBE30805102F"><enum>(5)</enum><header>Credits based on qualified hydropower</header><text>For purposes of this subsection, the number of Federal renewable electricity credits issued for qualified hydropower shall be calculated—</text> <subparagraph id="HA4001532634B4808BB6889049368E576"><enum>(A)</enum><text>based solely on the increase in average annual generation directly resulting from the efficiency improvements or capacity additions described in subsection (a)(13)(A); and</text> </subparagraph><subparagraph id="HACDA323E567C45F791A811BE1459AA38"><enum>(B)</enum><text>using the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility, as certified by the Commission.</text> </subparagraph></paragraph><paragraph id="H06FA45CA8204431AB676026903C82950"><enum>(6)</enum><header>Generation from qualified waste-to-energy</header><text>In the case of electricity generated from the combustion of any municipal solid waste or construction, demolition, or disaster debris that is included in the definition of renewable biomass, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, the Commission shall issue Federal renewable electricity credits only for electricity generated from qualified waste-to-energy.</text> </paragraph><paragraph id="H64B361D0FAC146AC9525D05844311745"><enum>(7)</enum><header>Generation from mixed renewable and nonrenewable resources</header><text display-inline="yes-display-inline">If electricity is generated using both a renewable energy resource or other qualifying energy resource and an energy source that is not a renewable energy resource or other qualifying energy resource (as, for example, in the case of co-firing of renewable biomass and fossil fuel), the Commission shall issue Federal renewable electricity credits based on the proportion of the electricity that is attributable to the renewable energy resource or other qualifying energy resource.</text> </paragraph><paragraph id="H4AF9FC5F61D54EAFB3ADF47C839D1406"><enum>(8)</enum><header>Prohibition against double-counting</header><text>Except as provided in paragraph (4) of this subsection, the Commission shall ensure that no more than 1 Federal renewable electricity credit will be issued for any megawatt hour of renewable electricity and that no Federal renewable electricity credit will be used more than once for compliance with this section.</text> </paragraph><paragraph id="HDF4DC0D607E94CC0A5F3CB7915FA88D3"><enum>(9)</enum><header>Trading</header><text>The lawful holder of a Federal renewable electricity credit may sell, exchange, transfer, submit for compliance in accordance with subsection (b), or submit such credit for retirement by the Commission.</text> </paragraph><paragraph id="H0AD4FCD8CB2643F1B1C23E0CE3C80C7E"><enum>(10)</enum><header>Banking</header><text>A Federal renewable electricity credit may be submitted in satisfaction of the compliance obligation set forth in subsection (b) for the compliance year in which the credit was issued or for any of the 3 immediately subsequent compliance years. The Commission shall retire any Federal renewable electricity credit that has not been retired by April 2 of the calendar year that is 3 years after the calendar year in which the credit was issued.</text> </paragraph><paragraph id="H8F486A955E8A483E87773A19E2C8D0ED"><enum>(11)</enum><header>Retirement</header><text>The Commission shall retire a Federal renewable electricity credit immediately upon submission by the lawful holder of such credit, whether in satisfaction of a compliance obligation under subsection (b) or on some other basis.</text> </paragraph></subsection><subsection id="H8323CEDFABF84A38B6DD6D3E341109C9"><enum>(f)</enum><header>Electricity savings</header> <paragraph id="H66671DD90B544CD8BF3BC6D5B5E69BAF"><enum>(1)</enum><header>Standards for measurement of savings</header><text>As part of the regulations promulgated under this section, the Commission shall prescribe standards and protocols for defining and measuring electricity savings and total annual electricity savings that can be counted towards the compliance obligation set forth in subsection (b). Such protocols and standards shall, at minimum—</text> <subparagraph id="H1E08F242534043A8A58F6672643E9155"><enum>(A)</enum><text>specify the types of energy efficiency and energy conservation measures that can be counted;</text> </subparagraph><subparagraph id="H842A7D38D7404563BD79548006880B2A"><enum>(B)</enum><text>require that energy consumption estimates for customer facilities or portions of facilities in the applicable base and current years be adjusted, as appropriate, to account for changes in weather, level of production, and building area;</text> </subparagraph><subparagraph id="HFEC118655AF642C193215E2FB12A55E4"><enum>(C)</enum><text>account for the useful life of measures;</text> </subparagraph><subparagraph id="H767AE48398974EE795BA100F6FF49293"><enum>(D)</enum><text>include deemed savings values for specific, commonly used measures;</text> </subparagraph><subparagraph id="H4D6CC656E47A44CC83556DA428A9EAFE"><enum>(E)</enum><text>allow for savings from a program to be estimated based on extrapolation from a representative sample of participating customers;</text> </subparagraph><subparagraph id="H86FF234F34824A8D96BA14BBB4753DDA"><enum>(F)</enum><text>include procedures for counting CHP savings, recycled energy savings, and fuel cell savings;</text> </subparagraph><subparagraph id="H9F2F8B0C51D74A128B3BAA9A40136386"><enum>(G)</enum><text>include procedures for documenting measurable and verifiable electricity savings achieved as a result of market transformation efforts;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HDCF979AEF69A44DA9F88CFCDCB195C68"><enum>(H)</enum><text display-inline="yes-display-inline">include procedures for counting electricity savings achieved by solar water heating and solar light pipe technology that has the capability to provide measurable data on the amount of megawatt-hours displaced;</text> </subparagraph><subparagraph id="HC065A922AF544F838CE34C4B0D2C5958"><enum>(I)</enum><text>avoid double-counting of savings used for compliance with this section, including savings that are transferred pursuant to paragraph (3);</text> </subparagraph><subparagraph id="H4E1BC4971D4146D4B7834B0C66F2DCC9"><enum>(J)</enum><text>ensure that, except as provided in subparagraph (L), the retail electric supplier claiming the savings played a significant role in achieving the savings (including through the activities of a designated agent of the supplier or through the purchase of transferred savings);</text> </subparagraph><subparagraph id="H540A7FFFB5DD45AFA0059263D34D675D"><enum>(K)</enum><text>include savings from programs administered by a retail electric supplier (or a retail electricity distributor that is not a retail electric supplier) that are funded by State, Federal, or other sources;</text> </subparagraph><subparagraph id="H2ABC7E07242E4DB3908035F964DCCC4A"><enum>(L)</enum><text>in any State in which the State regulatory authority has designated 1 or more entities to administer electric ratepayer-funded efficiency programs approved by such State regulatory authority, provide that electricity savings achieved through such programs shall be distributed equitably among retail electric suppliers in accordance with the direction of the relevant State regulatory authority; and</text> </subparagraph><subparagraph id="HCB17E65D04C64A559D6F5D663096968A"><enum>(M)</enum><text>exclude savings achieved as a result of compliance with mandatory appliance and equipment efficiency standards or building codes.</text> </subparagraph></paragraph><paragraph id="H61DC88A864CC4882913F0CC97B53A292"><enum>(2)</enum><header>Standards for third-party verification of savings</header><text>The regulations promulgated under this section shall establish procedures and standards requiring third-party verification of all reported electricity savings, including requirements for accreditation of third-party verifiers to ensure that such verifiers are professionally qualified and have no conflicts of interest.</text> </paragraph><paragraph id="HB59DB97451AB40EA9559E461FF91ABAA"><enum>(3)</enum><header>Transfers of savings</header> <subparagraph id="H60F7B65B4C704C99928E8D5E71E4E95F"><enum>(A)</enum><header>Bilateral contracts for savings transfers</header><text>Subject to the limitations of this paragraph, a retail electric supplier may use electricity savings transferred, pursuant to a bilateral contract, from another retail electric supplier, an owner of an electric distribution facility that is not a retail electric supplier, a State, or a third-party efficiency provider to meet the applicable compliance obligation under subsection (b).</text> </subparagraph><subparagraph id="H8E9733711F46495A85D67F4EE42EFB9C"><enum>(B)</enum><header>Requirements</header><text>Electricity savings transferred and used for compliance pursuant to this paragraph shall be—</text> <clause id="H3CEB9B7E5F2D4C3FA6AA07933C8A1745"><enum>(i)</enum><text>measured and verified in accordance with the procedures specified under this subsection;</text> </clause><clause id="H9E21126A50964CEA834BBEF483122D65"><enum>(ii)</enum><text>reported in accordance with paragraph (4) of this subsection; and</text> </clause><clause id="HE4B8B609B22048AFB6D54F9C248D5246"><enum>(iii)</enum><text>achieved within the same State as is served by the retail electric supplier.</text> </clause></subparagraph><subparagraph id="H2ACE9152EE754011BB466372524256C2"><enum>(C)</enum><header>Regulatory approval</header><text>Nothing in this paragraph shall limit or affect the authority of a State regulatory authority to require a retail electric supplier that is regulated by such authority to obtain such authority’s authorization or approval of a contract for transfer of savings under this paragraph.</text> </subparagraph></paragraph><paragraph id="H3F7F08C7F0C348ACBDAFC863402AC722"><enum>(4)</enum><header>Reporting savings</header> <subparagraph id="H089035FCB97540D5A2D58EBBFA242EF8"><enum>(A)</enum><header>Requirements</header><text>The regulations promulgated under this section shall establish requirements governing the submission of reports to demonstrate, in accordance with the protocols and standards for measurement and third-party verification established under this subsection, the total annual electricity savings achieved by a retail electric supplier within the relevant year.</text> </subparagraph><subparagraph id="H6BEA71FA29EE429BA4D11AEF5C7BE597"><enum>(B)</enum><header>Review and approval</header><text>The Commission shall review each report submitted to the Commission by a retail electric supplier and shall exclude any electricity savings that have not been adequately demonstrated in accordance with the requirements of this subsection.</text> </subparagraph></paragraph><paragraph id="HA02497989204444EA8B90A0DEB701C81"><enum>(5)</enum><header>State administration</header> <subparagraph id="H3BCF9814512B40E68332C25BB32DD0A6"><enum>(A)</enum><header>Delegation of authority</header><text>Upon receipt of an application from the Governor of a State (including, for purposes of this subsection, the Mayor of the District of Columbia), the Commission may delegate to the State the authority to review and verify reported electricity savings for purposes of determining demonstrated total annual electricity savings that may be counted towards a retail electric supplier’s compliance obligation under subsection (b). The Commission shall make a substantive determination approving or disapproving a State application under this subparagraph, after notice and comment, within 180 days of receipt of a complete application.</text> </subparagraph><subparagraph id="H40CD00E5C2B24993A0061AEE203DCC83"><enum>(B)</enum><header>Alternative measurement and verification procedures and standards</header><text>As part of an application submitted under subparagraph (A), a State may request to use alternative measurement and verification procedures and standards to those specified in paragraphs (1) and (2), provided the State demonstrates that such alternative procedures and standards provide a level of accuracy of measurement and verification at least equivalent to the Federal procedures and standards promulgated under paragraphs (1) and (2).</text> </subparagraph><subparagraph id="HF0FD11024F3C4207B8992B9CB92B9EC4"><enum>(C)</enum><header>Review of State implementation</header><text>The Commission shall, not less frequently than once every 4 years, review each State’s implementation of delegated authority under this paragraph to ensure conformance with the requirements of this section. The Commission may, at any time, revoke the delegation of authority under this section upon a finding that the State is not implementing its delegated responsibilities in conformity with this paragraph. As a condition of maintaining its delegated authority under this paragraph, the Commission may require a State to submit a revised application under subparagraph (A) if the Commission has—</text> <clause id="H9A5953FD118440349A6A8E34D3330549"><enum>(i)</enum><text>promulgated new or substantially revised measurement and verification procedures and standards under this subsection; or</text> </clause><clause id="H5584F30ECB3B4D068778FA6F9866BFD0"><enum>(ii)</enum><text>otherwise substantially revised the program established under this section.</text> </clause></subparagraph></paragraph></subsection><subsection id="H451B27BE024A490D9B0F666CD80C4BE2"><enum>(g)</enum><header>Alternative compliance payments</header> <paragraph id="H5CD12091EF2E420D9575E1A503BC755D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A retail electric supplier, or a central procurement State that, pursuant to subsection (g), has assumed responsibility for compliance with the requirements of subsection (b), may satisfy the requirements of subsection (b) in whole or in part by submitting in accordance with this subsection, in lieu of each Federal renewable electricity credit or megawatt hour of demonstrated total annual electricity savings that would otherwise be due, a payment equal to $25, adjusted for inflation on January 1 of each year following calendar year 2009, in accordance with such regulations as the Commission may promulgate.</text> </paragraph><paragraph id="HB2196221F8BF4CF58CB2AA80CFF83823"><enum>(2)</enum><header>Payment to State funds</header><text display-inline="yes-display-inline">Except as otherwise provided in this paragraph and paragraph (4), payments made under this subsection shall be made directly to the State or States in which the retail electric supplier is located, in proportion to the portion of the retail electric supplier’s base amount that is sold within each relevant State, provided that such payments are deposited directly into a fund in the State treasury established for this purpose and that the State uses such funds in accordance with paragraphs (3) and (5) and with paragraph (4), where applicable. If the Commission determines at any time that a State is in substantial noncompliance with paragraph (3) or (5), or with paragraph (4), where applicable, the Commission shall direct that any future alternative compliance payments that would otherwise be paid to such State under this subsection shall instead be paid to the Commission and deposited in the United States Treasury.</text> </paragraph><paragraph id="HD3CE4028C25C44CB8A0C1996C16BFA7C"><enum>(3)</enum><header>State use of funds</header><text>As a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall use such payments exclusively for the purposes of—</text> <subparagraph id="H71590C427EB44E5A925D373017041D3C"><enum>(A)</enum><text>deploying technologies that generate electricity from renewable energy resources; or</text> </subparagraph><subparagraph id="H6CAA68BAA1414E05AFEAE3ED1477EB7E"><enum>(B)</enum><text>implementing cost-effective energy efficiency programs to achieve electricity savings.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HA7F6B2D9ECA3423D966777F6FC0EA743"><enum>(4)</enum><header>Central procurement states</header> <subparagraph id="HD06A74B0BACF4D8CBC8A29C4F3B36182"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A central procurement State that, pursuant to subsection (g), has assumed responsibility for compliance with the requirements of subsection (b) shall deposit any alternative compliance payments under this subsection in a unique fund in the State treasury created and used solely for this purpose.</text> </subparagraph><subparagraph id="H063A3C5D69114FB086224AEFAD2128C8"><enum>(B)</enum><header>Requirements</header><text>As a precondition of making alternative compliance payments under this subsection, a central procurement State shall certify to the Commission, in accordance with such requirements as the Commission may prescribe, that—</text> <clause id="H6B5FECB802EC41D49C276B04459D0816"><enum>(i)</enum><text>making such payments is the lowest cost alternative to meet the requirements of subsection (b); and</text> </clause><clause id="H42609FDCD5974CF6BDF829E4CC65A9B7"><enum>(ii)</enum><text>moneys used by the State to make such payments are in addition to any spending that the State, and any separate entity charged with administering the State central procurement requirement identified under subsection (a)(7), otherwise collectively would direct to the purposes identified in paragraph (3).</text> </clause></subparagraph><subparagraph id="HD61B42B365BE4440A20CFF0A28FC77D2"><enum>(C)</enum><header>Uses</header><text>A central procurement State that makes alternative compliance payments under this subsection shall certify to the Commission that, in using such payments in accordance with paragraph (3), it has, to the extent practicable, maximized the level of deployment of renewable electricity generation (measured in megawatt hours) and electricity savings per dollar that are achieved through such expenditures.</text> </subparagraph></paragraph><paragraph id="H3E135F68458B413CBF9F71A43C9BCE55"><enum>(5)</enum><header>Reporting</header><text display-inline="yes-display-inline">As a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall, within 12 months of receipt of any such payments and at 12-month intervals thereafter until such payments are expended, provide a report to the Commission, in accordance with such regulations as the Commission may prescribe, giving a full accounting of the use of such payments, including a detailed description of the activities funded thereby and demonstrating compliance with the requirements of this subsection.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H3DC80A8B363941358175EFC2783BC256"><enum>(g)</enum><header>Central procurement States</header> <paragraph id="H8B397FF0FCAF4DCD872A0D87C892A586"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A central procurement State may, upon submission of a written request by the Governor of such State to the Commission, assume responsibility for compliance with the requirements of subsection (b) on behalf of retail electric suppliers located in such State, exclusively with regard to the portion of such retail electric suppliers’ base amount that is sold within the State.</text> </paragraph><paragraph id="H5BB93FBAF493401AB257D2920BA4B066"><enum>(2)</enum><header>Demonstration of electricity savings</header><text>If a central procurement State opts to meet any part of the requirements of subsection (b) based on the achievement of demonstrated total annual electricity savings, regardless of whether such State has received delegated authority pursuant to subsection (f)(5), such State shall submit such demonstrated total annual electricity savings to the Commission through an annual report in accordance with requirements prescribed by the Commission by regulation, which shall be of equivalent stringency to those applicable to retail electric suppliers under subsection (f).</text> </paragraph><paragraph id="H9125D50E1B0C44BE989B6A80141C1C27"><enum>(3)</enum><header>Noncompliance</header><text>If a central procurement State that pursuant to this subsection has assumed responsibility for compliance with the requirements of subsection (b), fails to satisfy the requirements of subsection (b) or (h) for any year, the State’s assumption of responsibility under this subsection shall be discontinued immediately, and retail electric suppliers located in such State henceforth shall be directly subject to the requirements of this section.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HD84188F76B3B48AF8FCAAF50732F7EB9"><enum>(h)</enum><header>Information collection</header><text>The Commission may require any retail electric supplier, renewable electricity generator, or such other entities as the Commission deems appropriate, to provide any information the Commission determines appropriate to carry out this section. Failure to submit such information or submission of false or misleading information under this subsection shall be a violation of this section.</text> </subsection><subsection id="H84BB9F359C064941BD4E3DE4AC698938"><enum>(i)</enum><header>Enforcement and judicial review</header> <paragraph id="H4A53FD88285C4B088622743EECEDAD62"><enum>(1)</enum><header>Failure to submit credits or demonstrate savings</header><text display-inline="yes-display-inline">If any person, other than any central procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection (b), fails to comply with the requirements of subsection (b) or (h), such person shall be liable to pay to the Commission a civil penalty equal to the product of—</text> <subparagraph id="HE316FC2F61864B028052099A68C94396"><enum>(A)</enum><text>double the alternative compliance payment calculated under subsection (h)(1), and</text> </subparagraph><subparagraph id="H761AD43C65E34F2CA359C007DBC0B53F"><enum>(B)</enum><text>the aggregate quantity of Federal renewable electricity credits, total annual electricity savings, or equivalent alternative compliance payments that the person failed to submit in violation of the requirements of subsections (b) and (h).</text> </subparagraph></paragraph><paragraph id="HBE83CFBE61924309B0C60C6A7E26BF6F"><enum>(2)</enum><header>Enforcement</header><text>The Commission shall assess a civil penalty under paragraph (1) in accordance with the procedures described in section 31(d) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/823b">16 U.S.C. 823b(d)</external-xref>).</text> </paragraph><paragraph id="HE06743BEA13748D68AB1B567758E39C6"><enum>(3)</enum><header>Violation of requirement of regulations or orders</header><text display-inline="yes-display-inline">Any person, other than any central procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection (b), who violates, or fails or refuses to comply with, any requirement of a regulation promulgated or order issued under this section shall be subject to a civil penalty under section 316A(b) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825o-1">16 U.S.C. 825o–1</external-xref>). Such penalty shall be assessed by the Commission in the same manner as in the case of a violation referred to in section 316A(b) of such Act.</text> </paragraph></subsection><subsection id="HCC886C6075BF428CB5D0D9DEFE70C961"><enum>(j)</enum><header>Judicial review</header><text>Any person aggrieved by a final action taken by the Commission under this section, other than the assessment of a civil penalty under subsection (j), may use the procedures for review described in section 313 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825l">16 U.S.C. 825l</external-xref>). For purposes of this paragraph, references to an order in section 313 of such Act shall be deemed to refer also to all other final actions of the Commission under this section other than the assessment of a civil penalty under subsection (i).</text> </subsection><subsection id="H9C7577F9798D48FF91ED54A49FDC6ACF"><enum>(k)</enum><header>Savings provisions</header><text>Nothing in this section shall—</text> <paragraph id="H0F72DC0D193B4B179D0BDDEFB33B28B3"><enum>(1)</enum><text>diminish or qualify any authority of a State, a political subdivision of a State, or an Indian tribe to—</text> <subparagraph id="H7B949AC519DD4614B1F453A4AE99AF7C"><enum>(A)</enum><text>adopt or enforce any law or regulation respecting renewable electricity or energy efficiency, including any law or regulation establishing requirements more stringent than those established by this section, provided that no such law or regulation may relieve any person of any requirement otherwise applicable under this section; or</text> </subparagraph><subparagraph id="H6D092E7B5A7E455686A985D12134B16F"><enum>(B)</enum><text>regulate the acquisition and disposition of Federal renewable electricity credits by retail electric suppliers within the jurisdiction of such State, political subdivision, or Indian tribe, including the authority to require such retail electric supplier to acquire and submit to the Secretary for retirement Federal renewable electricity credits in excess of those submitted under this section; or</text> </subparagraph></paragraph><paragraph id="H79BCC9F0990D49ADA48A8DAFC8A81B60"><enum>(2)</enum><text>affect the application of, or the responsibility for compliance with, any other provision of law or regulation, including environmental and licensing requirements.</text> </paragraph></subsection><subsection id="HAB977BC906BF4924B00890636CEA573C"><enum>(l)</enum><header>Sunset</header><text>This section expires on December 31, 2040.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HB85A5710289A4CA7ADD7E6185D492AA8"><enum>(b)</enum><header>Conforming amendment</header><text>The table of contents set forth in section 1(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by inserting after the item relating to section 609 the following:</text> <quoted-block display-inline="no-display-inline" id="HE3ECC247A0C646629052BE829E9FB04C" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 610. Combined efficiency and renewable electricity standard.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H70AC4B53F95B4501A1CDCACC2F1277F0"><enum>102.</enum><header>Clarifying State authority to adopt renewable energy incentives</header><text display-inline="no-display-inline">Section 210 of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end thereof:</text> <quoted-block display-inline="no-display-inline" id="H70920FD0658F4CFC9263656431EB4C52" style="OLC"> <subsection id="HFA5CE452D5A8467E9974FB82A41814D7"><enum>(o)</enum><header>Clarification of State authority to adopt renewable energy incentives</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this Act or the Federal Power Act, a State legislature or regulatory authority may set the rates for a sale of electric energy by a facility generating electric energy from renewable energy sources pursuant to a State-approved production incentive program under which the facility voluntarily sells electric energy. For purposes of this subsection, <quote>State-approved production incentive program</quote> means a requirement imposed pursuant to State law, or by a State regulatory authority acting within its authority under State law, that an electric utility purchase renewable energy (as defined in section 609 of this Act) at a specified rate.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H5624F22A3F8243C8A2BC66881C11C8BA"><enum>103.</enum><header>Federal renewable energy purchases</header> <subsection id="H3E893EFB3E3E4E1DBC68164435B241E6"><enum>(a)</enum><header>Requirement</header><text display-inline="yes-display-inline">For each of calendar years 2012 through 2039, the President shall ensure that, of the total amount of electricity Federal agencies consume in the United States during each calendar year, the following percentage shall be renewable electricity:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Entry: 2 text, bold hds" table-type=""> <tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt" colname="column1" colwidth="230pts" min-data-value="190" rowsep="0"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="0" colwidth="95pts" min-data-value="95" rowsep="0"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>Calendar year</bold></entry><entry align="left" colname="column2" morerows="0" namest="column2"><bold>Required annual percentage</bold></entry> </row> </thead> <tbody> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2012</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">6.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">6.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">9.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">9.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">13.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2017</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">13.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2018</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">16.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2019</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">16.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2020</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">20.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2021 through 2039</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">20.0</entry> </row> </tbody> </tgroup> </table> </subsection><subsection id="H842057BD9B2A4FE2A52F30D7D1AE8105"><enum>(b)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="HCF8B72DF555E42B190CDA99A0F077808"><enum>(1)</enum><header>Renewable electricity</header><text>The term “renewable electricity” shall have the meaning given in section 610 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following).</text> </paragraph><paragraph id="HB68333C1C63C4B858149BEBD7E2061D1"><enum>(2)</enum><header>Renewable energy resource</header><text>The term “renewable energy resource” shall have the meaning given in section 610 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following).</text> </paragraph></subsection><subsection id="H2C665CE2F1004421920DEA4D76D7E550"><enum>(c)</enum><header>Modification of requirement</header><text>If the President determines that the Federal Government cannot feasibly meet the requirement established in subsection (a) in a specific calendar year, the President may, by written order, reduce such requirement for such calendar year to a percentage the President determines the Federal Government can feasibly meet.</text> </subsection><subsection id="H5F7063240E774128933F19768E431656"><enum>(d)</enum><header>Reports</header><text>Not later than April 1, 2013, and each year thereafter, the Secretary of Energy shall provide a report to Congress on the percentage of each Federal agency’s electricity consumption in the United States that was renewable electricity in the previous calendar year.</text> </subsection><subsection id="HAB2E689E1C7549DDBA2AFE675EF14594"><enum>(e)</enum><header>Contracts for renewable energy</header><paragraph commented="no" display-inline="yes-display-inline" id="HE8D54DA8303F4AF599E93380E1DB7764"><enum>(1)</enum><text>Notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/40/501">section 501(b)(1)(B)</external-xref> of title 40, United States Code, a contract for the acquisition of electricity generated from a renewable energy resource for the Federal Government may be made for a period of not more than 20 years.</text> </paragraph><paragraph id="H2994EFE1AA0349C49E388923D09B090C" indent="up1"><enum>(2)</enum><text>Not later than 90 days after the date of enactment of this subsection, the Secretary of Energy, through the Federal Energy Management Program, shall publish a standardized renewable energy purchase agreement, setting forth commercial terms and conditions, that Federal agencies may use to acquire electricity generated from a renewable energy resource.</text> </paragraph><paragraph id="H7EB14091F39C41EB8DFDF0C9D8B778DE" indent="up1"><enum>(3)</enum><text>The Secretary of Energy shall provide technical assistance to assist Federal agencies in implementing this subsection.</text> </paragraph></subsection></section></subtitle><subtitle id="H3D7491F0F7A14F74B0BD5EAF2D7C6763"><enum>B</enum><header>Carbon Capture and Sequestration</header> <section display-inline="no-display-inline" id="H51F862ED8F3F4932A4A91059C043F986" section-type="subsequent-section"><enum>111.</enum><header>National strategy</header> <subsection id="H08B481838C6A479AAD33B8940566C138"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Energy, the Secretary of the Interior, and the heads of such other relevant Federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal, regulatory and other barriers to the commercial-scale deployment of carbon capture and sequestration.</text> </subsection><subsection id="H60B1C58348C9459AB09C275508F3FB36"><enum>(b)</enum><header>Barriers</header><text>The report under this section shall—</text> <paragraph id="HCB4FC3A6C2C64AEAB8B4817544525FF9"><enum>(1)</enum><text>identify those regulatory, legal, and other gaps and barriers that could be addressed by a Federal agency using existing statutory authority, those, if any, that require Federal legislation, and those that would be best addressed at the State, tribal, or regional level;</text> </paragraph><paragraph id="HCC4F0E9F53544F99A8AC05C82ADD18F1"><enum>(2)</enum><text>identify regulatory implementation challenges, including those related to approval of State and tribal programs and delegation of authority for permitting; and</text> </paragraph><paragraph id="H7BF5D50181CD41718AE94DC86F5A05CE"><enum>(3)</enum><text display-inline="yes-display-inline">recommend rulemakings, Federal legislation, or other actions that should be taken to further evaluate and address such barriers.</text> </paragraph></subsection></section><section id="H4D8015BEE4CB4DC292F87DBF898A7617"><enum>112.</enum><header>Regulations for geologic sequestration sites</header> <subsection id="HC04981F920F74F30BAF606A7CE9DB7D9"><enum>(a)</enum><header>Coordinated Certification and Permitting Process</header><text>Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by adding after section 812 (as added by section 116 of this Act) the following:</text> <quoted-block display-inline="no-display-inline" id="H36A12354BF0A48628E24CB23947F2617" style="OLC"> <section id="H072CCF604C67429F975B4C58F609DA4E"><enum>813.</enum><header>Geologic sequestration sites</header> <subsection id="H8FEAB9F6B61445289EC517E9CAFEA3E3"><enum>(a)</enum><header>Coordinated process</header><text>The Administrator shall establish a coordinated approach to certifying and permitting geologic sequestration, taking into consideration all relevant statutory authorities. In establishing such approach, the Administrator shall—</text> <paragraph id="HCE31139C60E84A5CBB83336F966DA534"><enum>(1)</enum><text>take into account, and reduce redundancy with, the requirements of section 1421 of the Safe Drinking Water Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300h">42 U.S.C. 300h</external-xref>), as amended by section 112(b) of the <short-title>American Clean Energy and Security Act of 2009</short-title>, including the rulemaking for geologic sequestration wells described at 73 Fed. Reg. 43491–541 (July 25, 2008); and</text> </paragraph><paragraph id="HFD653D8A0FC14500948B4788896AB775"><enum>(2)</enum><text>to the extent practicable, reduce the burden on certified entities and implementing authorities.</text> </paragraph></subsection><subsection id="H6E515DDD5C8E4C28B03E4BBE753C89D9"><enum>(b)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to protect human health and the environment by minimizing the risk of escape to the atmosphere of carbon dioxide injected for purposes of geologic sequestration.</text> </subsection><subsection id="HD9DB48F577094D87A2A95A03A6FE4CEB"><enum>(c)</enum><header>Requirements</header><text>The regulations under subsection (b) shall include—</text> <paragraph id="H4ACD00579DE34A4B8066FD79A8645D02"><enum>(1)</enum><text>a process to obtain certification for geologic sequestration under this section; and</text> </paragraph><paragraph id="H77BC518EE3A54667B12A2051E13D6796"><enum>(2)</enum><text>requirements for—</text> <subparagraph id="H805142C5E9E2445D9192FA1EC3E1D840"><enum>(A)</enum><text>monitoring, record keeping, and reporting for emissions associated with injection into, and escape from, geologic sequestration sites, taking into account any requirements or protocols developed under section 713;</text> </subparagraph><subparagraph id="HB76E37A4D7D44BCEAFE07EB7F8840645"><enum>(B)</enum><text>public participation in the certification process that maximizes transparency;</text> </subparagraph><subparagraph id="H2C51C0F87379408EB7C5B9F7A39517F1"><enum>(C)</enum><text>the sharing of data between States, Indian tribes, and the Environmental Protection Agency; and</text> </subparagraph><subparagraph id="H567165FC174E490E817C749CDA6CDB5D"><enum>(D)</enum><text>other elements or safeguards necessary to achieve the purpose set forth in subsection (b).</text> </subparagraph></paragraph></subsection><subsection id="H3F7C3AEFD66A4532B9948684F74B465A"><enum>(d)</enum><header>Report</header><text>Not later than 2 years after the promulgation of regulations under subsection (b), and at 3-year intervals thereafter, the Administrator shall deliver to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on geologic sequestration in the United States, and, to the extent relevant, other countries in North America. Such report shall include—</text> <paragraph id="H6B433FA616464219ACEFF68C0FFFA09E"><enum>(1)</enum><text>data regarding injection, emissions to the atmosphere, if any, and performance of active and closed geologic sequestration sites, including those where enhanced hydrocarbon recovery operations occur;</text> </paragraph><paragraph id="HF59CD90E060C41B1AE8469305264D357"><enum>(2)</enum><text>an evaluation of the performance of relevant Federal environmental regulations and programs in ensuring environmentally protective geologic sequestration practices;</text> </paragraph><paragraph id="H7CA8C79BA4044BE2812D4EEC0DF0D6CD"><enum>(3)</enum><text>recommendations on how such programs and regulations should be improved or made more effective; and</text> </paragraph><paragraph id="H40327B18533545DC9D487AD7D884BCED"><enum>(4)</enum><text>other relevant information.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H6A22294D769B4308A11839DC90A7C3B3"><enum>(b)</enum><header>Safe Drinking Water Act standards</header><text display-inline="yes-display-inline">Section 1421 of the Safe Drinking Water Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300h">42 U.S.C. 300h</external-xref>) is amended by inserting after subsection (d) the following:</text> <quoted-block display-inline="no-display-inline" id="H27031D93DB744B5B8C9937F0B3BF5EBE" style="OLC"> <subsection id="HD6CD6B5A3C8B41E2BEC36F8A3B00CEAC"><enum>(e)</enum><header>Carbon dioxide geologic sequestration wells</header> <paragraph id="HE2C7E8F12889411DA6298D8EA2C5E70D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations under subsection (a) for carbon dioxide geologic sequestration wells.</text> </paragraph><paragraph id="H9966C5453F6C43C981664F1835E2BB3E"><enum>(2)</enum><header>Financial responsibility</header><text>The regulations referred to in paragraph (1) shall include requirements for maintaining evidence of financial responsibility, including financial responsibility for emergency and remedial response, well plugging, site closure, and post-injection site care. Financial responsibility may be established for carbon dioxide geologic sequestration wells in accordance with regulations promulgated by the Administrator by any one, or any combination, of the following: insurance, guarantee, trust, standby trust, surety bond, letter of credit, qualification as a self-insurer, or any other method satisfactory to the Administrator.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HA71D74CEBF3D4972B1E1F2BB57CF0814"><enum>113.</enum><header>Studies and reports</header> <subsection display-inline="no-display-inline" id="H5028CEFA8A4E4B38AE1096C6512F129D"><enum>(a)</enum><header>Study of legal framework for geologic sequestration sites</header> <paragraph id="H1724CDB723214A1BA00DD378A374908B"><enum>(1)</enum><header>Establishment of task force</header><text display-inline="yes-display-inline">As soon as practicable, but not later than 6 months after the date of enactment of this Act, the Administrator shall establish a task force to be composed of an equal number of subject matter experts, nongovernmental organizations with expertise in environmental policy, academic experts with expertise in environmental law, State and tribal officials with environmental expertise, representatives of State and tribal Attorneys General, representatives from the Environmental Protection Agency, the Department of the Interior, the Department of Energy, the Department of Transportation, and other relevant Federal agencies, and members of the private sector, to conduct a study of—</text> <subparagraph id="HE09DC23BBC724F55BB167AEF7D4C56E5"><enum>(A)</enum><text>existing Federal environmental statutes, State environmental statutes, and State common law that apply to geologic sequestration sites for carbon dioxide, including the ability of such laws to serve as risk management tools;</text> </subparagraph><subparagraph id="H7370BF59AD0747A9AA83D0A1730EC199"><enum>(B)</enum><text display-inline="yes-display-inline">the existing statutory framework, including Federal and State laws, that apply to harm and damage to the environment or public health at closed sites where carbon dioxide injection has been used for enhanced hydrocarbon recovery;</text> </subparagraph><subparagraph id="H54FB0E21920941C4AC88CAB02B63732C"><enum>(C)</enum><text>the statutory framework, environmental health and safety considerations, implementation issues, and financial implications of potential models for Federal, State, or private sector assumption of liabilities and financial responsibilities with respect to closed geologic sequestration sites;</text> </subparagraph><subparagraph id="H0ADAFAF118FF49D689A78EEABAE369C6"><enum>(D)</enum><text>private sector mechanisms, including insurance and bonding, that may be available to manage environmental, health and safety risk from closed geologic sequestration sites; and</text> </subparagraph><subparagraph id="H97912182BA514CAD9CBE858E0BC5DEEA"><enum>(E)</enum><text>the subsurface mineral rights, water rights, or property rights issues associated with geologic sequestration of carbon dioxide, including issues specific to Federal lands.</text> </subparagraph></paragraph><paragraph id="H4EA40105382947ECA3578C2276ACD1BF"><enum>(2)</enum><header>Report</header><text>Not later than 18 months after the date of enactment of this Act, the task force established under paragraph (1) shall submit to Congress a report describing the results of the study conducted under that paragraph including any consensus recommendations of the task force.</text> </paragraph></subsection><subsection id="H4E18524591E14137A23294F6D1CEBE19"><enum>(b)</enum><header>Environmental statutes</header> <paragraph id="HF4C90F251EF84FF6A34B9D194571144C"><enum>(1)</enum><header>Study</header><text>The Administrator shall conduct a study examining how, and under what circumstances, the environmental statutes for which the Environmental Protection Agency has responsibility would apply to carbon dioxide injection and geologic sequestration activities.</text> </paragraph><paragraph id="H6EEC47BBBEE04B88A956160F6B69F2DF"><enum>(2)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to Congress a report describing the results of the study conducted under paragraph (1).</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H6EF853A67D51412FB348804F24F11E2E"><enum>114.</enum><header>Carbon capture and sequestration demonstration and early deployment program</header> <subsection id="HC70191E565924C84821FAB469BA53608"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section:</text> <paragraph id="H48177F0DA14F43468D28D50F5D14C408"><enum>(1)</enum><header>Secretary</header><text display-inline="yes-display-inline">The term <quote>Secretary </quote> means the Secretary of Energy.</text> </paragraph><paragraph id="H40BAEF79480D4CA0B30A1FFDC6690E9D"><enum>(2)</enum><header>Distribution utility</header><text display-inline="yes-display-inline">The term <quote>distribution utility</quote> means an entity that distributes electricity directly to retail consumers under a legal, regulatory, or contractual obligation to do so.</text> </paragraph><paragraph id="H24B867FD4AC840DE92C723740A97E34C"><enum>(3)</enum><header>Electric utility</header><text>The term <quote>electric utility</quote> has the meaning provided by section 3(22) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(22)</external-xref>).</text> </paragraph><paragraph id="HF5E03C3B62BD434AB73EF15723D990AE"><enum>(4)</enum><header>Fossil fuel-based electricity</header><text display-inline="yes-display-inline">The term <quote>fossil fuel-based electricity</quote> means electricity that is produced from the combustion of fossil fuels.</text> </paragraph><paragraph id="H2FAC0228F4E74375B430464601D17556"><enum>(5)</enum><header>Fossil fuel</header><text>The term <quote>fossil fuel</quote> means coal, petroleum, natural gas or any derivative of coal, petroleum, or natural gas.</text> </paragraph><paragraph id="HF12CA9F603BD46878750EB7D5FFFF5FD"><enum>(6)</enum><header>Corporation</header><text>The term <quote>Corporation</quote> means the Carbon Storage Research Corporation established in accordance with this section.</text> </paragraph><paragraph id="HFDDAFEB8F44E49779549233C17493856"><enum>(7)</enum><header>Qualified industry organization</header><text display-inline="yes-display-inline">The term <quote>qualified industry organization</quote> means the Edison Electric Institute, the American Public Power Association, the National Rural Electric Cooperative Association, a successor organization of such organizations, or a group of owners or operators of distribution utilities delivering fossil fuel-based electricity who collectively represent at least 20 percent of the volume of fossil fuel-based electricity delivered by distribution utilities to consumers in the United States.</text> </paragraph><paragraph id="HAE3ED095D33E4FD8B7F1D2C2BEEB05C9"><enum>(8)</enum><header>Retail consumer</header><text>The term “retail consumer” means an end-user of electricity.</text> </paragraph></subsection><subsection id="H75260C61B76148EC83D211F2D7F567CD"><enum>(b)</enum><header>Carbon Storage Research Corporation</header> <paragraph id="H3DC487521B7C491CBF1A206B457A52A5"><enum>(1)</enum><header>Establishment</header> <subparagraph id="HAB9F5CDEE6A9448EB5DCC1955FF44C1E"><enum>(A)</enum><header>Referendum</header><text>Qualified industry organizations may conduct, at their own expense, a referendum among the owners or operators of distribution utilities delivering fossil fuel-based electricity for the creation of a Carbon Storage Research Corporation. Such referendum shall be conducted by an independent auditing firm agreed to by the qualified industry organizations. Voting rights in such referendum shall be based on the quantity of fossil fuel-based electricity delivered to consumers in the previous calendar year or other representative period as determined by the Secretary pursuant to subsection (f). Upon approval of those persons representing two-thirds of the total quantity of fossil fuel-based electricity delivered to retail consumers, the Corporation shall be established unless opposed by the State regulatory authorities pursuant to subparagraph (B). All distribution utilities voting in the referendum shall certify to the independent auditing firm the quantity of fossil fuel-based electricity represented by their vote.</text> </subparagraph><subparagraph id="H436DC0D3E5504429A55B2EB423352532"><enum>(B)</enum><header>State regulatory authorities</header><text>Upon its own motion or the petition of a qualified industry organization, each State regulatory authority shall consider its support or opposition to the creation of the Corporation under subparagraph (A). State regulatory authorities may notify the independent auditing firm referred to in subparagraph (A) of their views on the creation of the Corporation within 180 days after the date of enactment of this Act. If 40 percent or more of the State regulatory authorities submit to the independent auditing firm written notices of opposition, the Corporation shall not be established notwithstanding the approval of the qualified industry organizations as provided in subparagraph (A).</text> </subparagraph></paragraph><paragraph id="H98772C287A0E437EB2C1F6271FC78074"><enum>(2)</enum><header>Termination</header><text display-inline="yes-display-inline">The Corporation shall be authorized to collect assessments and conduct operations pursuant to this section for a 10-year period from the date 6 months after the date of enactment of this Act. After such 10-year period, the Corporation is no longer authorized to collect assessments and shall be dissolved on the date 15 years after such date of enactment, unless the period is extended by an Act of Congress.</text> </paragraph><paragraph id="H0800B59D57574E068C3AF9A36C0C2A1B"><enum>(3)</enum><header>Governance</header><text>The Corporation shall operate as a division or affiliate of the Electric Power Research Institute (referred to in this section as <quote>EPRI</quote>) and be managed by a Board of not more than 15 voting members responsible for its operations, including compliance with this section. EPRI, in consultation with the Edison Electric Institute, the American Public Power Association and the National Rural Electric Cooperative Association shall appoint the Board members under clauses (i), (ii), and (iii) of subparagraph (A) from among candidates recommended by those organizations. At least a majority of the Board members appointed by EPRI shall be representatives of distribution utilities subject to assessments under subsection (d).</text> <subparagraph id="HB1D2A8DD2AE64A8FA785DC9FE783D24A"><enum>(A)</enum><header>Members</header><text>The Board shall include at least one representative of each of the following:</text> <clause id="HF0F84AF83B8746208912921CEC9DF844"><enum>(i)</enum><text>Investor-owned utilities.</text> </clause><clause id="H9B9C3855D4F9482B9961466DED5081DA"><enum>(ii)</enum><text>Utilities owned by a State agency, a municipality, and an Indian tribe.</text> </clause><clause id="H608F563D61394D76966A19A50F3A40A9"><enum>(iii)</enum><text>Rural electric cooperatives.</text> </clause><clause id="H1A71B401C8C04D5B891953CF2FA3FB86"><enum>(iv)</enum><text>Fossil fuel producers.</text> </clause><clause id="H96127B16C4744D9FB9B82A1247409633"><enum>(v)</enum><text>Nonprofit environmental organizations.</text> </clause><clause id="HAF7C70495AD34726A527D8DE4CF02F29"><enum>(vi)</enum><text>Independent generators or wholesale power providers.</text> </clause><clause id="H49416DCC97C34C1780D21A2CD4F81608"><enum>(vii)</enum><text>Consumer groups.</text> </clause></subparagraph><subparagraph id="H257B5836B6D54DC3BEB65565326DD0D5"><enum>(B)</enum><header>Nonvoting Members</header><text>The Board shall also include as additional nonvoting Members the Secretary of Energy or his designee and 2 representatives of State regulatory authorities as defined in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2602">16 U.S.C. 2602(17)</external-xref>), each designated by the National Association of State Regulatory Utility Commissioners from States that are not within the same transmission interconnection.</text> </subparagraph></paragraph><paragraph id="H6E6C3E12DBD74D8D905574BFFA69E7CE"><enum>(4)</enum><header>Compensation</header><text display-inline="yes-display-inline">Corporation Board members shall receive no compensation for their services, nor shall Corporation Board members be reimbursed for expenses relating to their service.</text> </paragraph><paragraph id="H0DECE4E80A8440CA8A98D4347FCFE846"><enum>(5)</enum><header>Terms</header><text display-inline="yes-display-inline">Corporation Board members shall serve terms of 4 years and may serve not more than 2 full consecutive terms. Members filling unexpired terms may serve not more than a total of 8 consecutive years. Former members of the Corporation Board may be reappointed to the Corporation Board if they have not been members for a period of 2 years. Initial appointments to the Corporation Board shall be for terms of 1, 2, 3, and 4 years, staggered to provide for the selection of 3 members each year.</text> </paragraph><paragraph id="H1A24E368EEDA455ABA290AB2CB9FCF13"><enum>(6)</enum><header>Status of Corporation</header><text>The Corporation shall not be considered to be an agency, department, or instrumentality of the United States, and no officer or director or employee of the Corporation shall be considered to be an officer or employee of the United States Government, for purposes of title 5 or title 31 of the United States Code, or for any other purpose, and no funds of the Corporation shall be treated as public money for purposes of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/33">chapter 33</external-xref> of title 31, United States Code, or for any other purpose.</text> </paragraph></subsection><subsection id="HBBC0DC7328BB4659B39D0520FBCCBF53"><enum>(c)</enum><header>Functions and administration of the Corporation</header> <paragraph id="H72B7583190D64B95BFED7FC75CCA0718"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Corporation shall establish and administer a program to accelerate the commercial availability of carbon dioxide capture and storage technologies and methods, including technologies which capture and store, or capture and convert, carbon dioxide. Under such program competitively awarded grants, contracts, and financial assistance shall be provided and entered into with eligible entities. Except as provided in paragraph (8), the Corporation shall use all funds derived from assessments under subsection (d) to issue grants and contracts to eligible entities.</text> </paragraph><paragraph id="H6BA0A7C680094C55BBE5C35A9961AE6D"><enum>(2)</enum><header>Purpose</header><text display-inline="yes-display-inline">The purposes of the grants, contracts, and assistance under this subsection shall be to support commercial-scale demonstrations of carbon capture or storage technology projects capable of advancing the technologies to commercial readiness. Such projects should encompass a range of different coal and other fossil fuel varieties, be geographically diverse, involve diverse storage media, and employ capture or storage, or capture and conversion, technologies potentially suitable either for new or for retrofit applications. The Corporation shall seek, to the extent feasible, to support at least 5 commercial-scale demonstration projects integrating carbon capture and sequestration or conversion technologies.</text> </paragraph><paragraph id="H2CBC9055416240389FDAD7DA6E2E6661"><enum>(3)</enum><header>Eligible entities</header><text display-inline="yes-display-inline">Entities eligible for grants, contracts or assistance under this subsection may include distribution utilities, electric utilities and other private entities, academic institutions, national laboratories, Federal research agencies, State and tribal research agencies, nonprofit organizations, or consortiums of 2 or more entities. Pilot-scale and similar small-scale projects are not eligible for support by the Corporation. Owners or developers of projects supported by the Corporation shall, where appropriate, share in the costs of such projects.</text> </paragraph><paragraph id="H3DB55949037240F9A3464A7504DD3E6E"><enum>(4)</enum><header>Grants for early movers</header><text>Fifty percent of the funds raised under this section shall be provided in the form of grants to electric utilities that had, prior to the award of any grant under this section, committed resources to deploy a large scale electricity generation unit with integrated carbon capture and sequestration or conversion applied to a substantial portion of the unit’s carbon dioxide emissions. Grant funds shall be provided to defray costs incurred by such electricity utilities for at least 5 such electricity generation units.</text> </paragraph><paragraph id="H7392655163464171A40A649E3ABF93A3"><enum>(5)</enum><header>Administration</header><text display-inline="yes-display-inline">The members of the Board of Directors of the Corporation shall elect a Chairman and other officers as necessary, may establish committees and subcommittees of the Corporation, and shall adopt rules and bylaws for the conduct of business and the implementation of this section. The Board shall appoint an Executive Director and professional support staff who may be employees of the Electric Power Research Institute (EPRI). After consultation with the Technical Advisory Committee established under subsection (j), the Secretary, and the Director of the National Energy Technology Laboratory to obtain advice and recommendations on plans, programs, and project selection criteria, the Board shall establish priorities for grants, contracts, and assistance; publish requests for proposals for grants, contracts, and assistance; and award grants, contracts, and assistance competitively, on the basis of merit, after the establishment of procedures that provide for scientific peer review by the Technical Advisory Committee. The Board shall give preference to applications that reflect the best overall value and prospect for achieving the purposes of the section, such as those which demonstrate an integrated approach for capture and storage or capture and conversion technologies. The Board members shall not participate in making grants or awards to entities with whom they are affiliated.</text> </paragraph><paragraph id="HCFB2D43CC12248A8ADE52ED21E3F9B75"><enum>(6)</enum><header>Uses of grants, contracts, and assistance</header><text>A grant, contract, or other assistance provided under this subsection may be used to purchase carbon dioxide when needed to conduct tests of carbon dioxide storage sites, in the case of established projects that are storing carbon dioxide emissions, or for other purposes consistent with the purposes of this section. The Corporation shall make publicly available at no cost information learned as a result of projects which it supports financially.</text> </paragraph><paragraph id="HAFA3A2D1318C49A6B06DCD7BF581E655"><enum>(7)</enum><header>Intellectual property</header><text>The Board shall establish policies regarding the ownership of intellectual property developed as a result of Corporation grants and other forms of technology support. Such policies shall encourage individual ingenuity and invention.</text> </paragraph><paragraph id="H5BB11CEA43AA4207AA4DCFA5F71E4F78"><enum>(8)</enum><header>Administrative expenses</header><text display-inline="yes-display-inline">Up to 5 percent of the funds collected in any fiscal year under subsection (d) may be used for the administrative expenses of operating the Corporation (not including costs incurred in the determination and collection of the assessments pursuant to subsection (d)).</text> </paragraph><paragraph id="HDC4F981965E3477F89AFDE09EDEA04C1"><enum>(9)</enum><header>Programs and budget</header><text display-inline="yes-display-inline">Before August 1 each year, the Corporation, after consulting with the Technical Advisory Committee and the Secretary and the Director of the Department’s National Energy Technology Laboratory and other interested parties to obtain advice and recommendations, shall publish for public review and comment its proposed plans, programs, project selection criteria, and projects to be funded by the Corporation for the next calendar year. The Corporation shall also publish for public review and comment a budget plan for the next calendar year, including the probable costs of all programs, projects, and contracts and a recommended rate of assessment sufficient to cover such costs. The Secretary may recommend programs and activities the Secretary considers appropriate. The Corporation shall include in the first publication it issues under this paragraph a strategic plan or roadmap for the achievement of the purposes of the Corporation, as set forth in paragraph (2).</text> </paragraph><paragraph id="H381EB7AB58ED4241AE03F7414A39AF17"><enum>(10)</enum><header>Records; audits</header><text display-inline="yes-display-inline">The Corporation shall keep minutes, books, and records that clearly reflect all of the acts and transactions of the Corporation and make public such information. The books of the Corporation shall be audited by a certified public accountant at least once each fiscal year and at such other times as the Corporation may designate. Copies of each audit shall be provided to the Congress, all Corporation board members, all qualified industry organizations, each State regulatory authority and, upon request, to other members of the industry. If the audit determines that the Corporation’s practices fail to meet generally accepted accounting principles the assessment collection authority of the Corporation under subsection (d) shall be suspended until a certified public accountant renders a subsequent opinion that the failure has been corrected. The Corporation shall make its books and records available for review by the Secretary or the Comptroller General of the United States.</text> </paragraph><paragraph id="H660DD1DB6B1A4979A2ABE726F9684A28"><enum>(11)</enum><header>Public Access</header><text display-inline="yes-display-inline">The Corporation Board’s meetings shall be open to the public and shall occur after at least 30 days advance public notice. Meetings of the Board of Directors may be closed to the public where the agenda of such meetings includes only confidential matters pertaining to project selection, the award of grants or contracts, personnel matters, or the receipt of legal advice. The minutes of all meetings of the Corporation shall be made available to and readily accessible by the public.</text> </paragraph><paragraph id="H04C3CADC56FD466E9EAF82DF187F28A2"><enum>(12)</enum><header>Annual report</header><text display-inline="yes-display-inline">Each year the Corporation shall prepare and make publicly available a report which includes an identification and description of all programs and projects undertaken by the Corporation during the previous year. The report shall also detail the allocation or planned allocation of Corporation resources for each such program and project. The Corporation shall provide its annual report to the Congress, the Secretary, each State regulatory authority, and upon request to the public. The Secretary shall, not less than 60 days after receiving such report, provide to the President and Congress a report assessing the progress of the Corporation in meeting the objectives of this section.</text> </paragraph></subsection><subsection id="H0C05F72EC3434974A2059F4FA8EAFDDA"><enum>(d)</enum><header>Assessments</header> <paragraph id="H458E49AA608545BCB8AC06AE08E5C94F"><enum>(1)</enum><header>Amount</header><subparagraph commented="no" display-inline="yes-display-inline" id="H9C689B1C80C647B68B7AD0FE00E92A71"><enum>(A)</enum><text>In all calendar years following its establishment, the Corporation shall collect an assessment on distribution utilities for all fossil fuel-based electricity delivered directly to retail consumers (as determined under subsection (f)). The assessments shall reflect the relative carbon dioxide emission rates of different fossil fuel-based electricity, and initially shall be not less than the following amounts for coal, natural gas, and oil:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Entry: 2 text, bold hds" table-type=""> <tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt" colname="column1" colsep="0" colwidth="214pts" min-data-value="190" rowsep="0"></colspec><colspec align="center" char="" charoff="0" coldef="txt-no-ldr" colname="column2" colsep="0" colwidth="111pts" min-data-value="98" rowsep="0"></colspec> <tbody> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"><bold>Fuel type</bold></entry><entry colname="column2" leader-modify="clr-ldr"><bold>Rate of assessment per kilowatt hour</bold></entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">Coal</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">$0.00043</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">Natural Gas</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">$0.00022</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">Oil</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">$0.00032.</entry> </row> </tbody> </tgroup> </table> </subparagraph><subparagraph id="H98EA17DD9F9B4657B84300259B816A34" indent="up1"><enum>(B)</enum><text>The Corporation is authorized to adjust the assessments on fossil fuel-based electricity to reflect changes in the expected quantities of such electricity from different fuel types, such that the assessments generate not less than $1.0 billion and not more than $1.1 billion annually. The Corporation is authorized to supplement assessments through additional financial commitments.</text> </subparagraph></paragraph><paragraph id="HC47AE14BD46B4C56BE961BAEF7701F86"><enum>(2)</enum><header>Investment of funds</header><text display-inline="yes-display-inline">Pending disbursement pursuant to a program, plan, or project, the Corporation may invest funds collected through assessments under this subsection, and any other funds received by the Corporation, only in obligations of the United States or any agency thereof, in general obligations of any State or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the United States.</text> </paragraph><paragraph id="HCF632DFDD074435F845352B1F216E0F5"><enum>(3)</enum><header>Reversion of unused funds</header><text display-inline="yes-display-inline">If the Corporation does not disburse, dedicate or assign 75 percent or more of the available proceeds of the assessed fees in any calendar year 7 or more years following its establishment, due to an absence of qualified projects or similar circumstances, it shall reimburse the remaining undedicated or unassigned balance of such fees, less administrative and other expenses authorized by this section, to the distribution utilities upon which such fees were assessed, in proportion to their collected assessments.</text> </paragraph></subsection><subsection id="HD539BFECBD8E443C98A3A835AD41F90C"><enum>(e)</enum><header> ERCOT</header> <paragraph id="HF2F2C73891D24D2D9A65BB3FDF3C491E"><enum>(1)</enum><header>Assessment, collection, and remittance</header><subparagraph commented="no" display-inline="yes-display-inline" id="H68A6B2EED3114858862D6FA3602E39E4"><enum>(A)</enum><text>Notwithstanding any other provision of this section, within ERCOT, the assessment provided for in subsection (d) shall be—</text> <clause id="H516E364F397B44118D7FEF551A9D397C" indent="up1"><enum>(i)</enum><text>levied directly on qualified scheduling entities, or their successor entities;</text> </clause><clause id="H79BB934B252A4F97818F9AD5D049F230" indent="up1"><enum>(ii)</enum><text>charged consistent with other charges imposed on qualified scheduling entities as a fee on energy used by the load-serving entities; and</text> </clause><clause id="HDF1788E74BC5449AAF956F84F3C0A7BF" indent="up1"><enum>(iii)</enum><text>collected and remitted by ERCOT to the Corporation in the amounts and in the same manner as set forth in subsection (d).</text> </clause></subparagraph><subparagraph id="HB0EA31052DF445D6BF698EB53D3FE8B9" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The assessment amounts referred to in subparagraph (A) shall be—</text> <clause id="H507D5D5303CF4E0DB41D8102C76B46CC"><enum>(i)</enum><text>determined by the amount and types of fossil fuel-based electricity delivered directly to all retail customers in the prior calendar year beginning with the year ending immediately prior to the period described in subsection (b)(2); and</text> </clause><clause id="H01F02F21AB6840408386AED478CADF97"><enum>(ii)</enum><text>take into account the number of renewable energy credits retired by the load-serving entities represented by a qualified scheduling entity within the prior calendar year.</text> </clause></subparagraph></paragraph><paragraph id="H87A805B97550497C82B34F42EC7E4DB7"><enum>(2)</enum><header>Administration expenses</header><text display-inline="yes-display-inline">Up to 1 percent of the funds collected in any fiscal year by ERCOT under the provisions of this subsection may be used for the administrative expenses incurred in the determination, collection and remittance of the assessments to the Corporation.</text> </paragraph><paragraph id="H86B535CCD62C4459B1E6C429DAF2836A"><enum>(3)</enum><header>Audit</header><text>ERCOT shall provide a copy of its annual audit pertaining to the administration of the provisions of this subsection to the Corporation.</text> </paragraph><paragraph id="HCFE43916000140E68523E65FBB4D2398"><enum>(4)</enum><header>Definitions</header><text>For the purposes of this subsection:</text> <subparagraph id="H14708C0D1DA0416CA275FB9729DC26E7"><enum>(A)</enum><text>The term “ERCOT” means the Electric Reliability Council of Texas.</text> </subparagraph><subparagraph id="H29C87DC9DA2E42A2AC75E479B1F46949"><enum>(B)</enum><text>The term “load-serving entities” has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.</text> </subparagraph><subparagraph id="H18B5A2D344F04164B12036651CD6C9BB"><enum>(C)</enum><text>The term “qualified scheduling entities” has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.</text> </subparagraph><subparagraph id="H94EA552A3B8F473F8E62E4AE0681F861"><enum>(D)</enum><text>The term “renewable energy credit” has the meaning as promulgated and adopted by the Public Utility Commission of Texas pursuant to section 39.904(b) of the Public Utility Regulatory Act of 1999, and in effect on the date of enactment of this Act.</text> </subparagraph></paragraph></subsection><subsection id="HA8C4E7A43D5241128E57467A9B6DBB65"><enum>(f)</enum><header>Determination of fossil fuel-based electricity deliveries</header> <paragraph id="HCC57A67F36E3410DB8D82608386D3283"><enum>(1)</enum><header>Findings</header><text display-inline="yes-display-inline">The Congress finds that:</text> <subparagraph id="HF9C21CE47E6A4CC59C9475A31E6358B8"><enum>(A)</enum><text>The assessments under subsection (d) are to be collected based on the amount of fossil fuel-based electricity delivered by each distribution utility.</text> </subparagraph><subparagraph id="HD0C93A5A06E7446CA7E7671C78FDDE54"><enum>(B)</enum><text>Since many distribution utilities purchase all or part of their retail consumer’s electricity needs from other entities, it may not be practical to determine the precise fuel mix for the power sold by each individual distribution utility.</text> </subparagraph><subparagraph id="HFC177C0B4A894452B432B28DA0A602D0"><enum>(C)</enum><text>It may be necessary to use average data, often on a regional basis with reference to Regional Transmission Organization (<quote>RTO</quote>) or NERC regions, to make the determinations necessary for making assessments.</text> </subparagraph></paragraph><paragraph id="H47916BF3EDF44825826200EE3377181F"><enum>(2)</enum><header>DOE proposed rule</header><text>The Secretary, acting in close consultation with the Energy Information Administration, shall issue for notice and comment a proposed rule to determine the level of fossil fuel electricity delivered to retail customers by each distribution utility in the United States during the most recent calendar year or other period determined to be most appropriate. Such proposed rule shall balance the need to be efficient, reasonably precise, and timely, taking into account the nature and cost of data currently available and the nature of markets and regulation in effect in various regions of the country. Different methodologies may be applied in different regions if appropriate to obtain the best balance of such factors.</text> </paragraph><paragraph id="HB07B82D42433451CA07A613EDB6199CC"><enum>(3)</enum><header>Final rule</header><text display-inline="yes-display-inline">Within 6 months after the date of enactment of this Act, and after opportunity for comment, the Secretary shall issue a final rule under this subsection for determining the level and type of fossil fuel-based electricity delivered to retail customers by each distribution utility in the United States during the appropriate period. In issuing such rule, the Secretary may consider opportunities and costs to develop new data sources in the future and issue recommendations for the Energy Information Administration or other entities to collect such data. After notice and opportunity for comment the Secretary may, by rule, subsequently update and modify the methodology for making such determinations.</text> </paragraph><paragraph id="H1FF5561777624F7F85557940435C9FB3"><enum>(4)</enum><header>Annual determinations</header><text>Pursuant to the final rule issued under paragraph (3), the Secretary shall make annual determinations of the amounts and types for each such utility and publish such determinations in the Federal Register. Such determinations shall be used to conduct the referendum under subsection (b) and by the Corporation in applying any assessment under this subsection.</text> </paragraph><paragraph id="H1CF91B178EC94E0FB20DFC3F2923F8A9"><enum>(5)</enum><header>Rehearing and judicial review</header><text display-inline="yes-display-inline">The owner or operator of any distribution utility that believes that the Secretary has misapplied the methodology in the final rule in determining the amount and types of fossil fuel electricity delivered by such distribution utility may seek rehearing of such determination within 30 days of publication of the determination in the Federal Register. The Secretary shall decide such rehearing petitions within 30 days. The Secretary’s determinations following rehearing shall be final and subject to judicial review in the United States Court of Appeals for the District of Columbia.</text> </paragraph></subsection><subsection id="H54F5F357A8414A20BCADAD1DA9C89D0C"><enum>(g)</enum><header>Compliance with Corporation assessments</header><text>The Corporation may bring an action in the appropriate court of the United States to compel compliance with an assessment levied by the Corporation under this section. A successful action for compliance under this subsection may also require payment by the defendant of the costs incurred by the Corporation in bringing such action.</text> </subsection><subsection id="H6FA6C20FD2F545EFAA39640A0A9EFB38"><enum>(h)</enum><header>Midcourse review</header><text>Not later than 5 years following establishment of the Corporation, the Comptroller General of the United States shall prepare an analysis, and report to Congress, assessing the Corporation’s activities, including project selection and methods of disbursement of assessed fees, impacts on the prospects for commercialization of carbon capture and storage technologies, adequacy of funding, and administration of funds. The report shall also make such recommendations as may be appropriate in each of these areas. The Corporation shall reimburse the Government Accountability Office for the costs associated with performing this midcourse review.</text> </subsection><subsection id="HC9F8AEF28CB94585B1AE638445CEA388"><enum>(i)</enum><header>Recovery of costs</header> <paragraph id="H1E2C49F1F326414780725CF4ABDC88CA"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A distribution utility whose transmission, delivery, or sales of electric energy are subject to any form of rate regulation shall not be denied the opportunity to recover the full amount of the prudently incurred costs associated with complying with this section, consistent with applicable State or Federal law.</text> </paragraph><paragraph id="H46F5E849B62A445B96770F61D02D4D1C"><enum>(2)</enum><header>Ratepayer Rebates</header><text display-inline="yes-display-inline">Regulatory authorities that approve cost recovery pursuant to paragraph (1) may order rebates to ratepayers to the extent that distribution utilities are reimbursed undedicated or unassigned balances pursuant to subsection (d)(3).</text> </paragraph></subsection><subsection id="H7D8940EB4CC94854BED61D8BD8F6B436"><enum>(j)</enum><header>Technical Advisory Committee</header> <paragraph id="H7F25BD68A2E149B08329D346193464C9"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established an advisory committee, to be known as the <quote>Technical Advisory Committee</quote>.</text> </paragraph><paragraph id="HF82009F0FEB948DF8897785F5793C694"><enum>(2)</enum><header>Membership</header><text>The Technical Advisory Committee shall be comprised of not less than 7 members appointed by the Board from among academic institutions, national laboratories, independent research institutions, and other qualified institutions. No member of the Committee shall be affiliated with EPRI or with any organization having members serving on the Board. At least one member of the Committee shall be appointed from among officers or employees of the Department of Energy recommended to the Board by the Secretary of Energy.</text> </paragraph><paragraph id="H20B161F44F1243A6A180FD376570B381"><enum>(3)</enum><header>Chairperson and Vice Chairperson</header><text>The Board shall designate one member of the Technical Advisory Committee to serve as Chairperson of the Committee and one to serve as Vice Chairperson of the Committee.</text> </paragraph><paragraph id="H61E78D738A934963BE391ED947E318CA"><enum>(4)</enum><header>Compensation</header><text>The Board shall provide compensation to members of the Technical Advisory Committee for travel and other incidental expenses and such other compensation as the Board determines to be necessary.</text> </paragraph><paragraph id="H3461EE3FDD4F4823AF2EBC47772C9CC8"><enum>(5)</enum><header>Purpose</header><text>The Technical Advisory Committee shall provide independent assessments and technical evaluations, as well as make non-binding recommendations to the Board, concerning Corporation activities, including but not limited to the following:</text> <subparagraph id="H8AAE06CB0BA045898A86BBA0D9ED1BC3"><enum>(A)</enum><text display-inline="yes-display-inline">Reviewing and evaluating the Corporation’s plans and budgets described in subsection (c)(9), as well as any other appropriate areas, which could include approaches to prioritizing technologies, appropriateness of engineering techniques, monitoring and verification technologies for storage, geological site selection, and cost control measures.</text> </subparagraph><subparagraph id="H3CD650CBBBBC4221A47F769C3FCD0DF7"><enum>(B)</enum><text>Making annual non-binding recommendations to the Board concerning any of the matters referred to in subparagraph (A), as well as what types of investments, scientific research, or engineering practices would best further the goals of the Corporation.</text> </subparagraph></paragraph><paragraph id="H3991C125EE894882B8028C8CB621DAAA"><enum>(6)</enum><header>Public availability</header><text>All reports, evaluations, and other materials of the Technical Advisory Committee shall be made available to the public by the Board, without charge, at time of receipt by the Board.</text> </paragraph></subsection><subsection id="H6C9AD568ED46491097CDF13295B55927"><enum>(k)</enum><header>Lobbying restrictions</header><text>No funds collected by the Corporation shall be used in any manner for influencing legislation or elections, except that the Corporation may recommend to the Secretary and the Congress changes in this section or other statutes that would further the purposes of this section.</text> </subsection><subsection id="H71C79910566F47FF92954979A169EE39"><enum>(l)</enum><header>Davis-Bacon Compliance</header><text>The Corporation shall ensure that entities receiving grants, contracts, or other financial support from the Corporation for the project activities authorized by this section are in compliance with the Davis-Bacon Act (40 U.S.C. 276a–276a–5).</text> </subsection></section><section display-inline="no-display-inline" id="HC7782483F7424BEDAACBD53E99628CD6" section-type="subsequent-section"><enum>115.</enum><header>Commercial deployment of carbon capture and sequestration technologies</header><text display-inline="no-display-inline">Part H of title VII of the Clean Air Act (as added by section 321 of this Act) is amended by adding the following new section after section 785:</text> <quoted-block display-inline="no-display-inline" id="H1B277506233243DAA6F18F2C221F2A69" style="OLC"> <section id="HF9DF251CDA464C17A73C1DF4316AA23E"><enum>786.</enum><header>Commercial deployment of carbon capture and sequestration technologies</header> <subsection id="H5292DFD96B2D4AF8B180CA425CD8A171"><enum>(a)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations providing for the distribution of emission allowances allocated pursuant to section 782(f), pursuant to the requirements of this section, to support the commercial deployment of carbon capture and sequestration technologies in both electric power generation and industrial operations.</text> </subsection><subsection id="HDEEA5121B82E4006A6B1FFC0E7206CF1"><enum>(b)</enum><header>Eligibility criteria</header><text>For an owner or operator of a project to be eligible to receive emission allowances under this section, the project must—</text> <paragraph id="H99BE3B89D74F44339A94ECECF3ACFBCB"><enum>(1)</enum><text>implement carbon capture and sequestration technology—</text> <subparagraph id="HB522AB6AD78B44DA8A987A3A0AEDD55B"><enum>(A)</enum><text>at an electric generating unit that—</text> <clause id="HA79E344C3E16473D99E1164ABF135D4D"><enum>(i)</enum><text>has a nameplate capacity of 200 megawatts or more;</text> </clause><clause id="HBD6227169E704624A29B9BE94099499E"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a retrofit application, applies the carbon capture and sequestration technology to the flue gas from at least 200 megawatts of the total nameplate generating capacity of the unit, provided that clause (i) shall apply without exception;</text> </clause><clause id="H4388F9114A844850AECE6D3A19EC05E0"><enum>(iii)</enum><text>derives at least 50 percent of its annual fuel input from coal, petroleum coke, or any combination of these 2 fuels; and</text> </clause><clause id="HD6D6BBFAB210460B8ABFE34811FB2208"><enum>(iv)</enum><text>upon implementation of capture and sequestration technology, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by—</text> <subclause id="HAAF19EAAAA44455C9499B768EE8B2653"><enum>(I)</enum><text display-inline="yes-display-inline">the unit, measured on an annual basis, determined in accordance with section 812(b)(2); or</text> </subclause><subclause id="H57F8B8A9C4DA49F194EC06AA5D8FA5EE"><enum>(II)</enum><text>in the case of retrofit applications under clause (ii), the treated portion of flue gas from the unit, measured on an annual basis, determined in accordance with section 812(b)(2); or</text> </subclause></clause></subparagraph><subparagraph id="HEBB715CC481B40F281F7B5A3FAF6F68A"><enum>(B)</enum><text>at an industrial source that—</text> <clause id="H8E278ACEA5D640929CF006291158D671"><enum>(i)</enum><text>absent carbon capture and sequestration, would emit greater than 50,000 tons per year of carbon dioxide;</text> </clause><clause id="H905B1614BF1F42DFBA8F39A7F984D684"><enum>(ii)</enum><text display-inline="yes-display-inline">upon implementation, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the emission point, measured on an annual basis, determined in accordance with section 812(b)(2); and</text> </clause><clause id="HD6CBD1893999460BB5478EFA0B7BB3ED"><enum>(iii)</enum><text>does not produce a liquid transportation fuel from a solid fossil-based feedstock;</text> </clause></subparagraph></paragraph><paragraph id="HDE584B8B7C1C4D9285AEC2166B88E6A1"><enum>(2)</enum><text>geologically sequester carbon dioxide at a site that meets all applicable permitting and certification requirements for geologic sequestration, or, pursuant to such requirements as the Administrator may prescribe by regulation, convert captured carbon dioxide to a stable form that will safely and permanently sequester such carbon dioxide;</text> </paragraph><paragraph id="H514B481B4DB245868F782EB21040851C"><enum>(3)</enum><text>meet all other applicable State, tribal, and Federal permitting requirements; and</text> </paragraph><paragraph id="H7931AC528A1D4A0888ABDB0C3DD72E83"><enum>(4)</enum><text>be located in the United States.</text> </paragraph></subsection><subsection id="H2FD154C9D4EC43D7A0D68C76AC972CBA"><enum>(c)</enum><header>Phase I distribution to electric generating units</header> <paragraph id="H623EC6C8EA9D43EBA252FF8C0B7D95FA"><enum>(1)</enum><header>Application</header><text>This subsection shall apply only to projects at the first 6 gigawatts of electric generating units, measured in cumulative generating capacity of such units, that receive allowances under this section.</text> </paragraph><paragraph id="HE90444068C7D43B48C6AEC549DA33CD7"><enum>(2)</enum><header>Distribution</header><text>The Administrator shall distribute emission allowances allocated under section 782(f) to the owner or operator of each eligible project at an electric generating unit in a quantity equal to the quotient obtained by dividing—</text> <subparagraph id="HD0A57C3527004470AB1DCAC3B47EDD0B"><enum>(A)</enum><text>the product obtained by multiplying—</text> <clause id="HED08969F531341BC8D4F04EE4ED67670"><enum>(i)</enum><text>the number of metric tons of carbon dioxide emissions avoided through capture and sequestration of emissions by the project, as determined pursuant to such methodology as the Administrator shall prescribe by regulation; and</text> </clause><clause id="HE207A58243E844DD9D24739FC8D2BB40"><enum>(ii)</enum><text>a bonus allowance value, pursuant to paragraph (3); by</text> </clause></subparagraph><subparagraph id="HB170E9C2208A4EA381BEE880903855F2"><enum>(B)</enum><text>the average fair market value of an emission allowance during the preceding year.</text> </subparagraph></paragraph><paragraph id="H23033E46056B456BA8B0C27BD81488B4"><enum>(3)</enum><header>Bonus allowance values</header> <subparagraph id="H60D2FA252A754108B10AD2734E0595E2"><enum>(A)</enum><text>For a generating unit achieving the capture and sequestration of 85 percent or more of the carbon dioxide that otherwise would be emitted by such unit, the bonus allowance value shall be $90 per ton.</text> </subparagraph><subparagraph id="H002FDD2418EB4C56A195EAE0F8E0B4B2"><enum>(B)</enum><text>The Administrator shall by regulation establish a bonus allowance value for each rate of lower capture and sequestration achieved by a generating unit, from a minimum of $50 per ton for a 50 percent rate and varying directly with increasing rates of capture and sequestration up to $90 per ton for an 85 percent rate.</text> </subparagraph><subparagraph id="HDAEB6F657B8C467D83AEA990A8E2BED9"><enum>(C)</enum><text display-inline="yes-display-inline">For a generating unit that achieves the capture and sequestration of at least 50 percent of the carbon dioxide that otherwise would be emitted by such unit by not later than January 1, 2017, the otherwise applicable bonus allowance value under this paragraph shall be increased by $10, provided that the owner of such unit notifies the Administrator by not later than January 1, 2012, of its intent to achieve such rate of capture and sequestration.</text> </subparagraph><subparagraph id="HAC96696B69284BD0A6F6A39F691E1B3B"><enum>(D)</enum><text>For a carbon capture and sequestration project sequestering in a geological formation for purposes of enhanced hydrocarbon recovery, the Administrator shall, by regulation, reduce the applicable bonus allowance value under this paragraph to reflect the lower net cost of the project when compared to sequestration into geological formations solely for purposes of sequestration.</text> </subparagraph><subparagraph id="H3842ABCD1C754E81BE3ACE38CA88A14C"><enum>(E)</enum><text>The Administrator shall annually adjust for inflation the bonus allowance values established under this paragraph.</text> </subparagraph></paragraph></subsection><subsection id="H330ED4F6B2E1418D936BE197B928FF15"><enum>(d)</enum><header>Phase II distribution to electric generating units</header> <paragraph id="HAEA54CB98BA44BFC8F76AF0870DC04BE"><enum>(1)</enum><header>Application</header><text>This subsection shall apply only to the distribution of emission allowances for carbon capture and sequestration projects at electric generating units after the capacity threshold identified in subsection (c)(1) is reached.</text> </paragraph><paragraph id="HD58B8E271332469BA4DFA6E123D2D9D0"><enum>(2)</enum><header>Regulations</header><text>Not later than 2 years prior to the date on which the capacity threshold identified in subsection (c)(1) is projected to be reached, the Administrator shall promulgate regulations to govern the distribution of emission allowances to the owners or operators of eligible projects under this subsection.</text> </paragraph><paragraph id="H603988A9E8DE4D2F84286A1E892BBEDE"><enum>(3)</enum><header>Reverse auctions</header> <subparagraph id="H89DEB8A7651E47A3B74E25E9161287A0"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (4), the regulations promulgated under paragraph (2) shall provide for the distribution of emission allowances to the owners or operators of eligible projects under this subsection through reverse auctions, which shall be held no less frequently than once each calendar year. The Administrator may establish a separate auction for each of no more than 5 different project categories, defined on the basis of coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof. The Administrator may establish appropriate minimum rates of capture and sequestration in implementing this paragraph.</text> </subparagraph><subparagraph id="H3448210F29F6442CA3926BCA960DDBDA"><enum>(B)</enum><header>Auction process</header><text>At each reverse auction—</text> <clause id="H0D28E46A4C6D4EE9A64D5998D89F7DB8"><enum>(i)</enum><text>the Administrator shall solicit bids from eligible projects;</text> </clause><clause id="H6BABA665515D486597670B5FA6640CD3"><enum>(ii)</enum><text>eligible projects participating in the auction shall submit a bid including the desired level of carbon dioxide sequestration incentive per ton and the estimated quantity of carbon dioxide that the project will permanently sequester over 10 years; and</text> </clause><clause id="HF732ED511C1440788015D58611560FEA"><enum>(iii)</enum><text>the Administrator shall select bids, within each auction, for the sequestration amount submitted, beginning with the eligible project submitting the bid for the lowest level of sequestration incentive on a per ton basis and meeting such other requirements as the Administrator may specify, until the amount of funds available for the reverse auction is committed.</text> </clause></subparagraph><subparagraph id="HCFA2567867E14BC88770814DD6F9156B"><enum>(C)</enum><header>Form of distribution</header><text>The Administrator shall distribute emission allowances to the owners or operators of eligible projects selected through a reverse auction under this paragraph pursuant to a formula equivalent to that described in subsection (c)(2), except that the bonus allowance value that is bid by the entity shall be substituted for the bonus allowance values set forth in subsection (c)(3).</text> </subparagraph></paragraph><paragraph id="H084ED87456BA47E38990E365FC9F5E9E"><enum>(4)</enum><header>Alternative distribution method</header> <subparagraph id="H3E984D94D2E54607919DF64DBD3A001C"><enum>(A)</enum><header>In general</header><text>If the Administrator determines that reverse auctions would not provide for efficient and cost-effective commercial deployment of carbon capture and sequestration technologies, the Administrator may instead, through regulations promulgated under paragraph (2) or (5), prescribe a schedule for the award of bonus allowances to the owners or operators of eligible projects under this subsection, in accordance with the requirements of this paragraph.</text> </subparagraph><subparagraph id="HD03B07D0ACAB4234990869EA62EF15DB"><enum>(B)</enum><header>Multiple tranches</header><text>The Administrator shall divide emission allowances available for distribution to the owners or operators of eligible projects into a series of tranches, each supporting the deployment of a specified quantity of cumulative electric generating capacity utilizing carbon capture and sequestration technology, each of which shall not be greater than 6 gigawatts.</text> </subparagraph><subparagraph id="HA3CD5CF7C49E4B2880605A02EA1F8E39"><enum>(C)</enum><header>Method of distribution</header><text>The Administrator shall distribute emission allowances within each tranche, on a first-come, first-served basis—</text> <clause id="H8510C9A970F14D1F9E3165D14B674523"><enum>(i)</enum><text>based on the date of full-scale operation of capture and sequestration technology; and</text> </clause><clause id="H4770D3089E2346FAB3802B5997663FAA"><enum>(ii)</enum><text>pursuant to a formula, similar to that set forth in subsection (c)(2) (except that the Administrator shall prescribe bonus allowance values different than those set forth in subsection (c)(3)), establishing the number of allowances to be distributed per ton of carbon dioxide sequestered by the project.</text> </clause></subparagraph><subparagraph id="H55D0FE0E56E84123A5DB3E7E680D10D0"><enum>(D)</enum><header>Requirements</header><text>For each tranche established pursuant to subparagraph (B), the Administrator shall establish a schedule for distributing emission allowances that—</text> <clause id="HDD15E414FB304D25973208CC88B2C1AC"><enum>(i)</enum><text>is based on a sliding scale that provides higher bonus allowance values for projects achieving higher rates of capture and sequestration;</text> </clause><clause id="H8428C0C0D44A48BFB8A52775CB0D7B85"><enum>(ii)</enum><text>for each capture and sequestration rate, establishes a bonus allowance value that is lower than that established for such rate in the previous tranche (or, in the case of the first tranche, than that established for such rate under subsection (c)(3)); and</text> </clause><clause id="H43402B1C45A94548A4F64489428AB0C5"><enum>(iii)</enum><text>may establish different bonus allowance levels for no more than 5 different project categories, defined by coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof.</text> </clause></subparagraph><subparagraph id="H4553F98718244D3B8C8D0655E62ADF17"><enum>(E)</enum><header>Criteria for establishing bonus allowance values</header><text>In setting bonus allowance values under this paragraph, the Administrator shall seek to cover no more than the reasonable incremental capital and operating costs of a project that are attributable to implementation of carbon capture, transportation, and sequestration technologies, taking into account—</text> <clause id="H2958E58544674809B2AAB428C098EE1D"><enum>(i)</enum><text>the reduced cost of compliance with section 722 of this Act;</text> </clause><clause id="H840E183B488F492DAE539DE2B2BA53AF"><enum>(ii)</enum><text>the reduced cost associated with sequestering in a geological formation for purposes of enhanced hydrocarbon recovery when compared to sequestration into geological formations solely for purposes of sequestration;</text> </clause><clause id="H52B374824DCA439797E1C2B8F24AA538"><enum>(iii)</enum><text>the relevant factors defining the project category; and</text> </clause><clause id="HD626DF3705BB41D499D48B5528BAD7C8"><enum>(iv)</enum><text>such other factors as the Administrator determines are appropriate.</text> </clause></subparagraph></paragraph><paragraph id="H2045D75025054985A0EEC309C2B6DB3E"><enum>(5)</enum><header>Revision of regulations</header><text>The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years.</text> </paragraph></subsection><subsection id="H8CAB52466ABD4798BCE419A162460E47"><enum>(e)</enum><header>Limits for certain electric generating units</header> <paragraph id="H0C20E18DCD664925A919190965DA0840"><enum>(1)</enum><header>Definitions</header><text>For purposes of this subsection, the terms <quote>covered EGU</quote> and <quote>initially permitted</quote> shall have the meaning given those terms in section 812 of this Act.</text> </paragraph><paragraph id="H70471F77AC1645B2B357F4D683F83888"><enum>(2)</enum><header>Covered egus initially permitted from 2009 through 2014</header><text display-inline="yes-display-inline">For a covered EGU that is initially permitted on or after January 1, 2009, and before January 1, 2015, the Administrator shall reduce the quantity of emission allowances that the owner or operator of such covered EGU would otherwise be eligible to receive under this section as follows:</text> <subparagraph id="HB2774B2039EC402084ABD79C7B853E5E"><enum>(A)</enum><text display-inline="yes-display-inline">In the case of a unit commencing operation on or before January 1, 2019, if the date in clause (ii)(I) is earlier than the date in clause (ii)(II), by the product of—</text> <clause id="H84AC26EC327846E7A70F6762926B438C"><enum>(i)</enum><text>20 percent; and</text> </clause><clause id="HED4E2323D16E4D8FB1C9672905E2F5BB"><enum>(ii)</enum><text>the number of years, if any, that have elapsed between—</text> <subclause id="HA0226D1C39784438A6D805E0DE669946"><enum>(I)</enum><text>the earlier of January 1, 2020, or the date that is 5 years after the commencement of operation of such covered EGU; and</text> </subclause><subclause id="HBA6B46DEB85C466089E3C0E48971EB4E"><enum>(II)</enum><text>the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).</text> </subclause></clause></subparagraph><subparagraph id="H494656F4A7F04C548C1CB7D573873CDB"><enum>(B)</enum><text>In the case of a unit commencing operation after January 1, 2019, by the product of—</text> <clause id="H7800F89E95314781B2C93F395004B1CE"><enum>(i)</enum><text>20 percent; and</text> </clause><clause id="H966D7BAEEB404C60996B183CDB90638D"><enum>(ii)</enum><text>the number of years between—</text> <subclause id="HAD887C79DE2D44868EF9E0A680440A56"><enum>(I)</enum><text>the commencement of operation of such covered EGU; and</text> </subclause><subclause id="H5211A2EE3EDB48B6AFB95AADCD9B2E9D"><enum>(II)</enum><text>the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).</text> </subclause></clause></subparagraph></paragraph><paragraph id="HD07E5298FAD9487DAD3C4DF569A8ABBF"><enum>(3)</enum><header>Covered egus initially permitted from 2015 through 2019</header><text display-inline="yes-display-inline">The owner or operator of a covered EGU that is initially permitted on or after January 1, 2015, and before January 1, 2020, shall be ineligible to receive emission allowances pursuant to this section if such unit, upon commencement of operations (and thereafter), does not achieve and maintain an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).</text> </paragraph></subsection><subsection id="H729BDCD006274DB088947AD9DB9110C1"><enum>(f)</enum><header>Industrial sources</header> <paragraph id="HEFDD819469C14DCCA890836F2F77D108"><enum>(1)</enum><header>Allowances</header><text>The Administrator may distribute not more than 15 percent of the allowances allocated under section 782(f) for any vintage year to the owners or operators of eligible industrial sources to support the commercial-scale deployment of carbon capture and sequestration technologies at such sources.</text> </paragraph><paragraph id="H9BA5B9915C494E9C9F1015A6938AF7CE"><enum>(2)</enum><header>Distribution</header><text>The Administrator shall, by regulation, prescribe requirements for the distribution of emission allowances to the owners or operators of industrial sources under this subsection, based on a bonus allowance formula that awards allowances to qualifying projects on the basis of tons of carbon dioxide captured and permanently sequestered. The Administrator may provide for the distribution of emission allowances pursuant to—</text> <subparagraph id="HA81F9096BC084568BAA5147FECABF705"><enum>(A)</enum><text>a reverse auction method, similar to that described under subsection (d)(3), including the use of separate auctions for different project categories; or</text> </subparagraph><subparagraph id="H49707A90A4D24316B1325A465EFA3328"><enum>(B)</enum><text>an incentive schedule, similar to that described under subsection (d)(4), which shall ensure that incentives are set so as to satisfy the requirement described in subsection (d)(4)(E).</text> </subparagraph></paragraph><paragraph id="HE37D27AAB6D54D299FE6CB87F993D0ED"><enum>(3)</enum><header>Revision of regulations</header><text>The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years.</text> </paragraph></subsection><subsection id="HC9CAA9C1C8674221BBC63A2AD0122B2B"><enum>(g)</enum><header>Limitations</header><text display-inline="yes-display-inline">Allowances may be distributed under this section only for tons of carbon dioxide emissions that have already been captured and sequestered. A qualifying project may receive annual emission allowances under this section only for the first 10 years of operation. No greater than 72 gigawatts of total cumulative generating capacity (including industrial applications, measured by such equivalent metric as the Administrator may designate) may receive emission allowances under this section. Upon reaching the limit described in the preceding sentence, any emission allowances that are allocated for carbon capture and sequestration deployment under section 782(f) and are not yet obligated under this section shall be treated as allowances not designated for distribution for purposes of section 782(r).</text> </subsection><subsection id="HA2CA07275C7F4EE985EA9276BE044C46"><enum>(h)</enum><header>Exhaustion of account and annual roll-over of surplus allowances</header> <paragraph id="H44586F1FCC674AFBB4392DA19A1C521B"><enum>(1)</enum><text>In distributing emission allowances under this section, the Administrator shall ensure that qualifying projects receiving allowances receive distributions for 10 years.</text> </paragraph><paragraph id="H55BF68DFF5414E0D92153970039123C5"><enum>(2)</enum><text>If the Administrator determines that the emission allowances allocated under section 782(f) with a vintage year that matches the year of distribution will be exhausted once the estimated full 10-year distributions will be provided to current eligible participants, the Administrator shall provide to new eligible projects allowances from vintage years after the year of the distribution.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H90C874E7B3314DF695E32C8E2EA9D2A4"><enum>(i)</enum><header>Retrofit applications</header><paragraph commented="no" display-inline="yes-display-inline" id="H87C67547D09A4292AECEAE0A407215F4"><enum>(1)</enum><text>In calculating bonus allowance values for retrofit applications eligible under subsection (b)(1)(A)(ii) and (iv)(II), the Administrator shall apply the required capture rates with respect to the treated portion of flue gas from the unit.</text> </paragraph><paragraph id="H00C96BFC11D048F9A12D6610159B2B28" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">No additional projects shall be eligible for allowances under subsection (b)(1)(A)(ii) and (iv)(II) as of such time as the Administrator reports, pursuant to section 812(d), that carbon capture and sequestration retrofit projects at electric generating units that are eligible for allowances under this section have been applied, in the aggregate, to the flue gas generated by 1 gigawatt of total cumulative generating capacity. The limitation in the preceding sentence shall not apply to projects that meet the eligibility criteria in subsection (b)(1)(A)(iv)(I).</text> </paragraph></subsection><subsection id="H1762289BED3948B29D617C3A0D9A4C48"><enum>(j)</enum><header>Davis-Bacon Compliance</header><text display-inline="yes-display-inline">All laborers and mechanics employed on projects funded directly by or assisted in whole or in part by this section through the use of emission allowances shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV, chapter 31, part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and <external-xref legal-doc="usc" parsable-cite="usc/40/3145">section 3145</external-xref> of title 40, United States Code.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H0C20D866F5D44AE0AAFB828FD3337640"><enum>116.</enum><header>Performance standards for coal-fueled power plants</header> <subsection id="HF2EB102C06BF4102B0A7BEA196DEE8A3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title VIII of the Clean Air Act (as added by section 331 of this Act) is amended by adding the following new section after section 811:</text> <quoted-block display-inline="no-display-inline" id="HF6F278F5001747438638A5FF31CDE7E5" style="OLC"> <section id="H0D9B1F07DF0A45058555B7A7AE1015EF"><enum>812.</enum><header>Performance standards for new coal-fired power plants</header> <subsection id="HA246DE2183F74411BA1585E690B34D57"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H20C3613691554557B1093882D8EEA68A"><enum>(1)</enum><header>Covered EGU</header><text display-inline="yes-display-inline">The term ‘covered EGU’ means a utility unit that is required to have a permit under section 503(a) and is authorized under state or federal law to derive at least 30 percent of its annual heat input from coal, petroleum coke, or any combination of these fuels.</text> </paragraph><paragraph id="H92CF95D2D6554860938A64233172046C"><enum>(2)</enum><header>Initially permitted</header><text display-inline="yes-display-inline">The term ‘initially permitted’ means that the owner or operator has received a Clean Air Act preconstruction approval or permit, for the covered EGU as a new (not a modified) source, but administrative review or appeal of such approval or permit has not been exhausted. A subsequent modification of any such approval or permits, ongoing administrative or court review, appeals, or challenges, or the existence or tolling of any time to pursue further review, appeals, or challenges shall not affect the date on which a covered EGU is considered to be initially permitted under this paragraph.</text> </paragraph></subsection><subsection id="HC9659E11591A4527B16FEF715A8EDE93"><enum>(b)</enum><header>Standards</header><paragraph commented="no" display-inline="yes-display-inline" id="H1F40067A2C99410F9EC5DF45EC23D34B"><enum>(1)</enum><text display-inline="yes-display-inline">A covered EGU that is initially permitted on or after January 1, 2020, shall achieve an emission limit that is a 65 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis, or meet such more stringent standard as the Administrator may establish pursuant to subsection (c).</text> </paragraph><paragraph id="H50A12C942A3349708D0077FB0B9E3539" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">A covered EGU that is initially permitted after January 1, 2009, and before January 1, 2020, shall, by the applicable compliance date established under this paragraph, achieve an emission limit that is a 50 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis. Compliance with the requirement set forth in this paragraph shall be required by the earliest of the following:</text> <subparagraph id="H736959C62CAB4AA8A8DDEB0DAE754371"><enum>(A)</enum><text>Four years after the date the Administrator has published pursuant to subsection (d) a report that there are in commercial operation in the United States electric generating units or other stationary sources equipped with carbon capture and sequestration technology that, in the aggregate—</text> <clause id="HDCF0B7BB5BBD4E73958B740023E13BD3"><enum>(i)</enum><text>have a total of at least 4 gigawatts of nameplate generating capacity of which—</text> <subclause id="HE33C856A997249C5BC4D3962DF49D80C"><enum>(I)</enum><text display-inline="yes-display-inline">at least 3 gigawatts must be electric generating units; and</text> </subclause><subclause id="H99DB6EC115EE485D9ECB31ABB5D3D1E9"><enum>(II)</enum><text display-inline="yes-display-inline">up to 1 gigawatt may be industrial applications, for which capture and sequestration of 3 million tons of carbon dioxide per year on an aggregate annualized basis shall be considered equivalent to 1 gigawatt;</text> </subclause></clause><clause id="H40CBE376846843EABE36A0D4AAD33328"><enum>(ii)</enum><text display-inline="yes-display-inline">include at least 2 electric generating units, each with a nameplate generating capacity of 250 megawatts or greater, that capture, inject, and sequester carbon dioxide into geologic formations other than oil and gas fields; and</text> </clause><clause id="H1058F207DE7348CC80FD551A28BCD877"><enum>(iii)</enum><text>are capturing and sequestering in the aggregate at least 12 million tons of carbon dioxide per year, calculated on an aggregate annualized basis.</text> </clause></subparagraph><subparagraph id="HDC6037A693894EE0AE49AD85CC1504E1"><enum>(B)</enum><text display-inline="yes-display-inline">January 1, 2025.</text> </subparagraph></paragraph><paragraph id="HB4F72234973F4E309A954E1D300A465C" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">If the deadline for compliance with paragraph (2) is January 1, 2025, the Administrator may extend the deadline for compliance by a covered EGU by up to 18 months if the Administrator makes a determination, based on a showing by the owner or operator of the unit, that it will be technically infeasible for the unit to meet the standard by the deadline. The owner or operator must submit a request for such an extension by no later than January 1, 2022, and the Administrator shall provide for public notice and comment on the extension request.</text> </paragraph></subsection><subsection id="H442F17C6EBC949EEAFEDC8BC508EF11D"><enum>(c)</enum><header>Review and revision of standards</header><text display-inline="yes-display-inline">Not later than 2025 and at 5-year intervals thereafter, the Administrator shall review the standards for new covered EGUs under this section and shall, by rule, reduce the maximum carbon dioxide emission rate for new covered EGUs to a rate which reflects the degree of emission limitation achievable through the application of the best system of emission reduction which (taking into account the cost of achieving such reduction and any nonair quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated.</text> </subsection><subsection id="H88CC192FC3E7412CAB2250C1AF0A82A4"><enum>(d)</enum><header> Reports</header><text display-inline="yes-display-inline">Not later than the date 18 months after the date of enactment of this title and semiannually thereafter, the Administrator shall publish a report on the nameplate capacity of units (determined pursuant to subsection (b)(2)(A)) in commercial operation in the United States equipped with carbon capture and sequestration technology, including the information described in subsection (b)(2)(A) (including the cumulative generating capacity to which carbon capture and sequestration retrofit projects meeting the criteria described in section 786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied and the quantities of carbon dioxide captured and sequestered by such projects).</text> </subsection><subsection id="HCFD48EA63E56478BBE9E4E93C92DC0C7"><enum>(e)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to carry out the requirements of this section.</text> </subsection></section><after-quoted-block>. </after-quoted-block></quoted-block> </subsection></section></subtitle><subtitle id="H0C34F701FFA54AFB8A202ADFDA658693"><enum>C</enum><header>Clean Transportation</header> <section id="H5A05091D0EB44922874877143DA5C6FD"><enum>121.</enum><header>Electric vehicle infrastructure</header> <subsection id="H06DA6CA47B7546A8BCC2FF867856DF30"><enum>(a)</enum><header>Amendment of PURPA</header><text display-inline="yes-display-inline">Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2621">16 U.S.C. 2621(d)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HAC842D58225E466DB814A024AED3968D" style="OLC"> <paragraph id="H5B0BE99D38D343859B3FD8B04B7451E9"><enum>(20)</enum><header>Plug-in electric drive vehicle infrastructure</header> <subparagraph id="H32951B500F3D4BCAA6F085EF39CB39BE"><enum>(A)</enum><header>Utility plan for infrastructure</header><text display-inline="yes-display-inline">Each electric utility shall develop a plan to support the use of plug-in electric drive vehicles, including heavy-duty hybrid electric vehicles. The plan may provide for deployment of electrical charging stations in public or private locations, including street parking, parking garages, parking lots, homes, gas stations, and highway rest stops. Any such plan may also include—</text> <clause id="H1F3DFF3887954A90B82A500847E2A0D3"><enum>(i)</enum><text display-inline="yes-display-inline">battery exchange, fast charging infrastructure and other services;</text> </clause><clause id="HD4DFDDD36BF74B97AFDC2C694043012B"><enum>(ii)</enum><text display-inline="yes-display-inline">triggers for infrastructure deployment based upon market penetration of plug-in electric drive vehicles; and</text> </clause><clause id="HDBECFA21D1C345A7BE08B819511814A2"><enum>(iii)</enum><text>such other elements as the State determines necessary to support plug-in electric drive vehicles.</text> </clause><continuation-text continuation-text-level="subparagraph">Each plan under this paragraph shall provide for the deployment of the charging infrastructure or other infrastructure necessary to adequately support the use of plug-in electric drive vehicles.</continuation-text></subparagraph><subparagraph id="HB57626AF4C2643BD986A0A653B6FBB27"><enum>(B)</enum><header>Support requirements</header><text display-inline="yes-display-inline">Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall—</text> <clause id="H8DB0795CF42A47E1A14B5FF2559D8BFE"><enum>(i)</enum><text>require that charging infrastructure deployed is interoperable with products of all auto manufacturers to the extent possible; and</text> </clause><clause id="HCE7F43678F1247CABF7A5CE3B9A21A2C"><enum>(ii)</enum><text>consider adopting minimum requirements for deployment of electrical charging infrastructure and other appropriate requirements necessary to support the use of plug-in electric drive vehicles.</text> </clause></subparagraph><subparagraph id="H8F2FA3D4EB164081A39AC2FFEE2D66E0"><enum>(C)</enum><header>Cost recovery</header><text>Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall consider whether, and to what extent, to allow cost recovery for plans and implementation of plans.</text> </subparagraph><subparagraph id="HE7363A96F01E4676B41A102156D4B1A8"><enum>(D)</enum><header>Smart Grid integration</header><text display-inline="yes-display-inline">The State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall, in accordance with regulations issued by the Federal Energy Regulatory Commission pursuant to section 1305(d) of the Energy Independence and Security Act of 2007—</text> <clause id="H406384465690464F8BD1ADBD81DC432E"><enum>(i)</enum><text display-inline="yes-display-inline">establish any appropriate protocols and standards for integrating plug-in electric drive vehicles into an electrical distribution system, including Smart Grid systems and devices as described in title XIII of the Energy Independence and Security Act of 2007;</text> </clause><clause id="HE296994024FE4E41884A97DB9835BEB6"><enum>(ii)</enum><text display-inline="yes-display-inline">include, to the extent feasible, the ability for each plug-in electric drive vehicle to be identified individually and to be associated with its owner’s electric utility account, regardless of the location that the vehicle is plugged in, for purposes of appropriate billing for any electricity required to charge the vehicle’s batteries as well as any crediting for electricity provided to the electric utility from the vehicle’s batteries; and</text> </clause><clause id="HF9E791DFB6664643A8D15EAB76842F27"><enum>(iii)</enum><text display-inline="yes-display-inline">review the determination made in response to section 1252 of the Energy Policy Act of 2005 in light of this section, including whether time-of-use pricing should be employed to enable the use of plug-in electric drive vehicles to contribute to meeting peak-load and ancillary service power needs.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="HA2117EFE38AC436E89F6B30588963FA7"><enum>(b)</enum><header>Compliance</header> <paragraph id="H116D99353F354902BAA3CDD115C413D9"><enum>(1)</enum><header>Time limitations</header><text>Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(b)</external-xref>) is amended by adding the following at the end thereof:</text> <quoted-block display-inline="no-display-inline" id="H4550D998216741378310B40B12219572" style="OLC"> <paragraph id="HDF1C4CB4A13F4313BB47F3F731860D66" indent="up1"><enum>(7)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H24E39E95529E49EDA36129D13AE6C793"><enum>(A)</enum><text>Not later than 3 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (20) of section 111(d).</text> </subparagraph><subparagraph id="HCDC65746C3CC4DE59443D230C92B5360" indent="up1"><enum>(B)</enum><text>Not later than 4 years after the date of enactment of the this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to the standard established by paragraph (20) of section 111(d).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H6AFBA521C417415096980417C451A87E"><enum>(2)</enum><header>Failure to comply</header><text>Section 112(c) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(c)</external-xref>) is amended by adding the following at the end: <quote>In the case of the standards established by paragraph (20) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraph.</quote>.</text> </paragraph><paragraph id="H49AF359E1746406990E91404669895E2"><enum>(3)</enum><header>Prior State actions</header><text>Section 112(d) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(d)</external-xref>) is amended by striking <quote>(19)</quote> and inserting <quote>(20)</quote> before <quote>of section 111(d)</quote>.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H1E569241084C47B18CC0779ED489127C" section-type="subsequent-section"><enum>122.</enum><header>Large-scale vehicle electrification program</header> <subsection id="H442951A605FF4A2C8CA72DAF71C98048"><enum>(a)</enum><header>Deployment Program</header><text>The Secretary of Energy shall establish a program to deploy and integrate plug-in electric drive vehicles into the electricity grid in multiple regions. In carrying out the program, the Secretary may provide financial assistance described under subsection (d), consistent with the goals under subsection (b). The Secretary shall select regions based upon applications for assistance received pursuant to subsection (c).</text> </subsection><subsection id="H581D6DB8A0CA44A796FF8CECA4A52BF6"><enum>(b)</enum><header>Goals</header><text display-inline="yes-display-inline">The goals of the program established pursuant to subsection (a) shall be—</text> <paragraph id="H656DAB14C3FB4D449A2809280DB08CB6"><enum>(1)</enum><text>to demonstrate the viability of a vehicle-based transportation system that is not overly dependent on petroleum as a fuel and contributes to lower carbon emissions than a system based on conventional vehicles;</text> </paragraph><paragraph id="H0960EBEEBF8C4DAF896C00E4A4118F63"><enum>(2)</enum><text>to facilitate the integration of advanced vehicle technologies into electricity distribution areas to improve system performance and reliability;</text> </paragraph><paragraph id="HCC4224D244C3411AB041EA1AF9AA1724"><enum>(3)</enum><text>to demonstrate the potential benefits of coordinated investments in vehicle electrification on personal mobility and a regional grid;</text> </paragraph><paragraph id="H217F3BFC24C64F8E975A8BEFEAC931B1"><enum>(4)</enum><text>to demonstrate protocols and standards that facilitate vehicle integration into the grid; and</text> </paragraph><paragraph id="H85ACB5D7FE664227955E9D563A33AD61"><enum>(5)</enum><text>to investigate differences in each region and regulatory environment regarding best practices in implementing vehicle electrification.</text> </paragraph></subsection><subsection id="H35AF5481E47A41C2AD818EFEA4512318"><enum>(c)</enum><header>Applications</header><text display-inline="yes-display-inline">Any State, Indian tribe, or local government (or group of State, Indian tribe, or local governments) may apply to the Secretary of Energy for financial assistance in furthering the regional deployment and integration into the electricity grid of plug-in electric drive vehicles. Such applications may be jointly sponsored by electric utilities, automobile manufacturers, technology providers, car sharing companies or organizations, or other persons or entities.</text> </subsection><subsection id="HCBAE57F7A7E642DFB07CD5A9AB0E2965"><enum>(d)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Pursuant to applications received under subsection (c), the Secretary may make financial assistance available to any applicant or joint sponsor of the application to be used for any of the following:</text> <paragraph id="H25B579B1A498480AADE4FBAD6107476C"><enum>(1)</enum><text>Assisting persons located in the regional deployment area, including fleet owners, in the purchase of new plug-in electric drive vehicles by offsetting in whole or in part the incremental cost of such vehicles above the cost of comparable conventionally fueled vehicles.</text> </paragraph><paragraph id="H23AF103FCFAE43A1A62CD34396BFF34C"><enum>(2)</enum><text>Supporting the use of plug-in electric drive vehicles by funding projects for the deployment of any of the following:</text> <subparagraph id="HE50107F48AEC46F1A7FEA6659216BED6"><enum>(A)</enum><text display-inline="yes-display-inline">Electrical charging infrastructure for plug-in electric drive vehicles, including battery exchange, fast charging infrastructure, and other services, in public or private locations, including street parking, parking garages, parking lots, homes, gas stations, and highway rest stops.</text> </subparagraph><subparagraph id="H000FE810CA254922BFC5033AC7B92A28"><enum>(B)</enum><text display-inline="yes-display-inline">Smart Grid equipment and infrastructure, as described in title XIII of the Energy Independence and Security Act of 2007, to facilitate the charging and integration of plug-in electric drive vehicles.</text> </subparagraph></paragraph><paragraph id="H18016CBF4B934FA5AE0A127F05DD4822"><enum>(3)</enum><text>Such other projects as the Secretary determines appropriate to support the large-scale deployment of plug-in electric drive vehicles in regional deployment areas.</text> </paragraph></subsection><subsection id="HDFC8073A11334045BB92585F53554249"><enum>(e)</enum><header>Program Requirements</header><text display-inline="yes-display-inline">The Secretary, in consultation with the Administrator and the Secretary of Transportation, shall determine design elements and requirements of the program established pursuant to subsection (a), including—</text> <paragraph id="HE045B0A326B44576B237AA56212EA5A6"><enum>(1)</enum><text>the type of financial mechanism with which to provide financial assistance;</text> </paragraph><paragraph id="H11B9D08F36C94E5BA2FB2BF2B2FCF1D8"><enum>(2)</enum><text display-inline="yes-display-inline">criteria for evaluating applications submitted under subsection (c), including the anticipated ability to promote deployment and market penetration of vehicles that are less dependent on petroleum as a fuel source; and</text> </paragraph><paragraph id="H1D213ECDF16147D091CD128CFD945E46"><enum>(3)</enum><text>reporting requirements for entities that receive financial assistance under this section, including a comprehensive set of performance data characterizing the results of the deployment program.</text> </paragraph></subsection><subsection id="HE54655EC5ADC429989D275038EE57050"><enum>(f)</enum><header>Information Clearinghouse</header><text display-inline="yes-display-inline">The Secretary shall, as part of the program established pursuant to subsection (a), collect and make available to the public information regarding the cost, performance, and other technical data regarding the deployment and integration of plug-in electric drive vehicles.</text> </subsection><subsection id="H3BD3F3A1068D431C8D55E2E2E3FB9C4F"><enum>(g)</enum><header>Authorization</header><text>There are authorized to be appropriated to carry out this section such sums as may be necessary.</text> </subsection></section><section display-inline="no-display-inline" id="H0D59ED21E59F443BBCE327C9CF0B1EBB" section-type="subsequent-section"><enum>123.</enum><header>Plug-in electric drive vehicle manufacturing</header> <subsection id="H5012E02D9F934CDA8788876FBDEDFCE4"><enum>(a)</enum><header>Vehicle manufacturing assistance program</header><text display-inline="yes-display-inline">The Secretary of Energy shall establish a program to provide financial assistance to automobile manufacturers to facilitate the manufacture of plug-in electric drive vehicles, as defined in section 131(a)(5) of the Energy Independence and Security Act of 2007, that are developed and produced in the United States.</text> </subsection><subsection id="H650F085C412D4036A27E943E7B1A50A7"><enum>(b)</enum><header>Financial assistance</header><text display-inline="yes-display-inline">The Secretary of Energy may provide financial assistance to an automobile manufacturer under the program established pursuant to subsection (a) for the reconstruction or retooling of facilities for the manufacture of plug-in electric drive vehicles or batteries for such vehicles that are developed and produced in the United States.</text> </subsection><subsection id="H944C242873CC4115B1BD77C3FCE65EDF"><enum>(c)</enum><header>Coordination with regional deployment</header><text>The Secretary may provide financial assistance under subsection (b) in conjunction with the award of financial assistance under the large scale vehicle electrification program established pursuant to section 122 of this Act.</text> </subsection><subsection display-inline="no-display-inline" id="HDFE5E4CA08EB4694A969A11F3BA08B0B"><enum>(d)</enum><header>Program Requirements</header><text display-inline="yes-display-inline">The Secretary shall determine design elements and requirements of the program established pursuant to subsection (a), including—</text> <paragraph id="HE890500619AF4B38AE395327C26198C2"><enum>(1)</enum><text>the type of financial mechanism with which to provide financial assistance;</text> </paragraph><paragraph id="HF32F3BA2116E4AD0A1C2F5C93BA232DD"><enum>(2)</enum><text>criteria, in addition to the criteria described under subsection (e), for evaluating applications for financial assistance; and</text> </paragraph><paragraph id="H1C0DB4D9ABE845F0B1B89BD218D693DB"><enum>(3)</enum><text>reporting requirements for automobile manufacturers that receive financial assistance under this section.</text> </paragraph></subsection><subsection id="H9CEBA8ADBE1640EDAC62D37FB19638D7"><enum>(e)</enum><header>Criteria</header><text>In selecting recipients of financial assistance from among applicant automobile manufacturers, the Secretary shall give preference to proposals that—</text> <paragraph id="HB65158FEFE95460DB51D16F37F55E23D"><enum>(1)</enum><text>are most likely to be successful; and</text> </paragraph><paragraph id="HD578DC67E2824F7A9D67901C3DA0221C"><enum>(2)</enum><text>are located in local markets that have the greatest need for the facility.</text> </paragraph></subsection><subsection id="H22B7972E5E3A4F4EBD74BD8E593BC372"><enum>(f)</enum><header>Reports</header><text>The Secretary shall annually submit to Congress a report on the program established pursuant to this section.</text> </subsection><subsection id="H34572E0B5E5D4C2084C02859D5F91901"><enum>(g)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this section.</text> </subsection></section><section id="HBEA0A0C71C0C4352926C2F1AC2363927"><enum>124.</enum><header>Investment in clean vehicles</header> <subsection id="H957FA323D88C4D6CA91C31DAC0A5CB8D"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H881E924DA3774762B89E1D298D0CD253"><enum>(1)</enum><header>Advanced technology vehicles and qualifying components</header><text>The terms <quote>advanced technology vehicles</quote> and <quote>qualifying components</quote> shall have the definition of such terms in section 136 of the Energy Independence and Security Act of 2007, except that for purposes of this section, the average base year as described in such section 136(a)(1)(C) shall be the following:</text> <subparagraph id="HE01A4AD04E1B49419CE2F85B755CF7B3"><enum>(A)</enum><text>In each of the years 2012 through 2016, model year 2009.</text> </subparagraph><subparagraph id="H07BD1CFDC263489B92D1B34386A8A2B8"><enum>(B)</enum><text>In 2017, the Administrator shall, notwithstanding such section 136(a)(1)(C), determine an appropriate baseline based on technological and economic feasibility.</text> </subparagraph></paragraph><paragraph id="H2DAC453C79C64E069C0A85C6EB1A9DAB"><enum>(2)</enum><header>Plug-in electric drive vehicle</header><text>The term <quote>plug-in electric drive vehicle</quote> shall have the definition of such term in section 131 of the Energy Independence and Security Act of 2007.</text> </paragraph></subsection><subsection id="H7402310D2EB442618EE38E053F0AAE6A"><enum>(b)</enum><header>Distribution of allowances</header><text>The Administrator shall, in accordance with this section, distribute emission allowances allocated pursuant to section 782(i) of the Clean Air Act not later than September 30 of 2012 and each calendar year thereafter through 2025.</text> </subsection><subsection id="H7E8E12B06FB1432B9414A90526FF9D69"><enum>(c)</enum><header>Plug-in electric drive vehicle manufacturing and deployment</header> <paragraph id="HE4C815E4BF0D4EF0A452DA24ED1A1A85"><enum>(1)</enum><header>In general</header><text>The Administrator shall, at the direction of the Secretary of Energy, provide emission allowances allocated pursuant to section 782(i) to applicants, joint sponsors and automobile manufacturers pursuant to sections 122 and 123 of this Act.</text> </paragraph><paragraph id="HAD3232A0F7EE46C8A9C0804C8B98D2B7"><enum>(2)</enum><header>Annual amount</header><text>In each of the years 2012 through 2017, one-quarter of the portion of the emission allowances allocated pursuant to section 782(i) of the Clean Air Act shall be available to carry out paragraph (1) such that—</text> <subparagraph id="H6087A4502FAC4094AC1366980A5C661F"><enum>(A)</enum><text>one-eighth of the portion shall be available to carry out section 122; and</text> </subparagraph><subparagraph id="H29A7B2A0B8D1485986109C9E7FF430D9"><enum>(B)</enum><text>one-eighth of the portion shall be available to carry out section 123.</text> </subparagraph></paragraph><paragraph id="H4586FE5468D04A69B778A528C190D5FF"><enum>(3)</enum><header>Preference</header><text>In directing the provision of emission allowances under this subsection to carry out section 122, the Secretary shall give preference to applications under section 122(c) that are jointly sponsored by one or more automobile manufacturers.</text> </paragraph><paragraph id="H3CD7D8A70F404CD9AE1EF2A7A24D525C"><enum>(4)</enum><header>Multi-year commitments</header><text>The Administrator shall commit to providing emission allowances to an applicant, joint sponsor, or automobile manufacturer for up to five consecutive years if—</text> <subparagraph id="HF05639E6C6D1497D80A088CDBF99CFB3"><enum>(A)</enum><text>an application under section 122 or 123 of this Act requests a multi-year commitment;</text> </subparagraph><subparagraph id="H67D89FC2ADF74C3BBE09A227A461D5AA"><enum>(B)</enum><text>such application meets the criteria for support established by the Secretary of Energy under section 122 or 123 of this Act;</text> </subparagraph><subparagraph id="HCA6808962CDB44DEB0458C3A8A6A8F82"><enum>(C)</enum><text>the Administrator confirms to the Secretary that emission allowances will be available for a multi-year commitment;</text> </subparagraph><subparagraph id="H4892D6F1D03E4BA694CB8F11810D64C1"><enum>(D)</enum><text>the Secretary of Energy determines that a multi-year commitment for such application will advance the goals of section 122 or 123; and</text> </subparagraph><subparagraph id="HF8CC8A89E0E642FA926D53FFB94A18EF"><enum>(E)</enum><text>the Secretary of Energy directs the Administrator to make a multi-year commitment.</text> </subparagraph></paragraph><paragraph id="HD3EF0F48CA5348EFB5EFF7B94FDF856C"><enum>(5)</enum><header>Insufficient applications</header><text>If, in any year, emission allowances available under paragraph (2) cannot be provided because of insufficient numbers of submitted applications that meet the criteria for support established by the Secretary of Energy under section 122 or 123 of this Act, the remaining emission allowances shall be distributed according to subsection (d).</text> </paragraph></subsection><subsection id="H0CED49E7E9BF4589B1F626B0BC9524C6"><enum>(d)</enum><header>Advanced technology vehicles</header> <paragraph id="HEEB8839F751B43B38DA91262C7824844"><enum>(1)</enum><header>In general</header><text>The Administrator shall, at the direction of the Secretary of Energy, provide any emission allowances allocated pursuant to section 782(i) of the Clean Air Act that are not provided under subsection (c) to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of—</text> <subparagraph id="H164FF06BB5784704888292F69D8B7FD4"><enum>(A)</enum><text>reequipping, expanding, or establishing a manufacturing facility in the United States to produce—</text> <clause id="H024D5DBD7178428BA463A38C60F57011"><enum>(i)</enum><text>qualifying advanced technology vehicles; or</text> </clause><clause id="HD11EC9C0E653468895B8F71A0E625808"><enum>(ii)</enum><text>qualifying components; and</text> </clause></subparagraph><subparagraph id="H6FB088EDC3F741DBBBA968D14A314838"><enum>(B)</enum><text>engineering integration performed in the United States of qualifying vehicles and qualifying components.</text> </subparagraph></paragraph><paragraph id="H9A46A56F227C47118CFB9A19F1AC8371"><enum>(2)</enum><header>Preference</header><text>In directing the provision of emission allowances under this subsection during the years 2012 through 2017, the Secretary shall give preference to applications for projects that save the maximum number of gallons of fuel.</text> </paragraph></subsection></section><section id="H7EB4065394434DB0AA8FF8014F58F1A8"><enum>125.</enum><header>Advanced technology vehicle manufacturing incentive loans</header><text display-inline="no-display-inline">Section 136(d)(1) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17013">42 U.S.C. 17013(d)(1)</external-xref>) is amended by striking <quote>$25,000,000,000</quote> and inserting <quote>$50,000,000,000</quote>.</text> </section><section display-inline="no-display-inline" id="HA5BA8717E7754EDB8E1D5516BA52EB3E"><enum>126.</enum><header>Definition of renewable biomass</header> <subsection id="HB9EA741162E14881877D82701A1D101A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 211(o)(1)(I) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(I)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H371C83F6809849AF81DF32769438563B" style="OLC"> <subparagraph id="HB7F841DCC15F400C81DDBE6F888452F2"><enum>(I)</enum><header>Renewable biomass</header><text display-inline="yes-display-inline">The term <quote>renewable biomass</quote> means any of the following:</text> <clause id="HD89E95D77400454897AA7B5B9056448F"><enum>(i)</enum><text>Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are—</text> <subclause id="H9D0244065A78454BB9E531E419B00E8C"><enum>(I)</enum><text display-inline="yes-display-inline">not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth stands, late-successional stands (except for dead, severely damaged, or badly infested trees), components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;</text> </subclause><subclause id="H95281DC0C5A64B9294BDA07514DE8055"><enum>(II)</enum><text>harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and</text> </subclause><subclause id="H48C0E65E134A4EC8A87EE61D32DE5283"><enum>(III)</enum><text>harvested in accordance with Federal and State law, and applicable land management plans.</text> </subclause></clause><clause id="H9BA2B0DFAFC54A0D9692CEFE9E6643B6"><enum>(ii)</enum><text>Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including—</text> <subclause id="HCDCE98F192634E46A40E0A50E8F1418C"><enum>(I)</enum><text>renewable plant material, including—</text> <item id="H65F16CA8E73B4A22BB3E870D558EE808"><enum>(aa)</enum><text>feed grains;</text> </item><item id="H18C3C3800AFD443BABC70BAA8EF7069B"><enum>(bb)</enum><text>other agricultural commodities;</text> </item><item id="H5408423427F74328A23F0F8D0FF79583"><enum>(cc)</enum><text>other plants and trees; and</text> </item><item id="HA55EC3F49D0F4554B09BB560C3854D0C"><enum>(dd)</enum><text>algae; and</text> </item></subclause><subclause id="H55FEB415A9FD4AFD84A48BB3CFA5AF43"><enum>(II)</enum><text>waste material, including—</text> <item id="H286209B78CD2482AA02A7FE478DA2FC5"><enum>(aa)</enum><text>crop residue;</text> </item><item id="H47BA361C88BE4AAE84B50BA53A376AEF"><enum>(bb)</enum><text>other vegetative waste material (including wood waste and wood residues);</text> </item><item id="HD2778A88E6A048A396D935B3D8C460C3"><enum>(cc)</enum><text>animal waste and byproducts (including fats, oils, greases, and manure);</text> </item><item id="H3E7CF459AF1A4119B131C9616E0F7804"><enum>(dd)</enum><text>construction waste;</text> </item><item id="HF07F6E2AEB734530B471FC1D702957CC"><enum>(ee)</enum><text>food waste and yard waste; and</text> </item><item id="H6F872ACE08514B2598EF3F59CBB2EEE1"><enum>(ff)</enum><text>the non-fossil biogenic portion of municipal solid waste and construction, demolition, and disaster debris.</text> </item></subclause></clause><clause id="H7D3A3B596E0B447FB5125DBD589315E3"><enum>(iii)</enum><text>Residues and byproducts from wood, pulp, or paper products facilities.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H3A074428A7A04307AE1D6D9F7A3F89C0"><enum>(b)</enum><header>Reduction</header><text display-inline="yes-display-inline">The last sentence of section 211(o)(7)(D) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(7)(D)</external-xref>) is amended to read as follows: <quote>For any calendar year in which the Administrator makes such a reduction, the Administrator shall also reduce the applicable volume of renewable fuel and advanced biofuels requirement established under paragraph (2)(B) by the same volume.</quote>.</text> </subsection></section><section id="H6389863763414AD7B7B6D600193DA064"><enum>127.</enum><header>Open fuel standard</header> <subsection id="HBA8645E3024B403D9F4FFEE8E185BDEF"><enum>(a)</enum><header>Findings</header><text>The Congress finds that—</text> <paragraph id="H870281AD3E214BA19AD4E00C5373F05A"><enum>(1)</enum><text>the status of oil as a strategic commodity, which derives from its domination of the transportation sector, presents a clear and present danger to the United States;</text> </paragraph><paragraph id="HBBB803AA34074AD2B11EE01AC3AFA6A2"><enum>(2)</enum><text>in a prior era, when salt was a strategic commodity, salt mines conferred national power and wars were fought over the control of such mines;</text> </paragraph><paragraph id="H966B82D417C146A7A11C1F166CCE0476"><enum>(3)</enum><text>technology, in the form of electricity and refrigeration, decisively ended salt’s monopoly of meat preservation and greatly reduced its strategic importance;</text> </paragraph><paragraph id="HEA51F2B6DDC84AD4BB08E4A20716E827"><enum>(4)</enum><text>fuel competition and consumer choice would similarly serve to end oil’s monopoly in the transportation sector and strip oil of its strategic status;</text> </paragraph><paragraph id="HB8A1753B2F8D4A9BB8F7F41A54D49027"><enum>(5)</enum><text>the current closed fuel market has allowed a cartel of petroleum exporting countries to inflate fuel prices, effectively imposing a harmful tax on the economy of the United States;</text> </paragraph><paragraph id="HE2A303C5B3D6404DB40F60B325C0A7FD"><enum>(6)</enum><text>much of the inflated petroleum revenues the oil cartel earns at the expense of the people of the United States are used for purposes antithetical to the interests of the United States and its allies;</text> </paragraph><paragraph id="HEE5C3B25B2674F7BB64A8F6987102998"><enum>(7)</enum><text>alcohol fuels, including ethanol and methanol, could potentially provide significant supplies of additional fuels that could be produced in the United States and in many other countries in the Western Hemisphere that are friendly to the United States;</text> </paragraph><paragraph id="HC45078E55B814B0CA6FC2F35F7C6AD38"><enum>(8)</enum><text>alcohol fuels can only play a major role in securing the energy independence of the United States if a substantial portion of vehicles in the United States are capable of operating on such fuels;</text> </paragraph><paragraph id="H7969339727F14BA1B175526EAB044F40"><enum>(9)</enum><text>it is not in the best interest of United States consumers or the United States Government to be constrained to depend solely upon petroleum resources for vehicle fuels if alcohol fuels are potentially available;</text> </paragraph><paragraph id="HA5D76A27E56B4A1D995F2D92F207BA2F"><enum>(10)</enum><text>existing technology, in the form of flexible fuel vehicles, allows internal combustion engine cars and trucks to be produced at little or no additional cost, which are capable of operating on conventional gasoline, alcohol fuels, or any combination of such fuels, as availability or cost advantage dictates, providing a platform on which fuels can compete;</text> </paragraph><paragraph id="HBF997A1694B7487BAF65B6F6EC8A4F75"><enum>(11)</enum><text>the necessary distribution system for such alcohol fuels will not be developed in the United States until a substantial fraction of the vehicles in the United States are capable of operating on such fuels;</text> </paragraph><paragraph id="H868FB1E84D9441C3A68171609D71C731"><enum>(12)</enum><text>the establishment of such a vehicle fleet and distribution system would provide a large market that would mobilize private resources to substantially advance the technology and expand the production of alcohol fuels in the United States and abroad;</text> </paragraph><paragraph id="H97EB8104444E487E98AF25DDA021DA6F"><enum>(13)</enum><text>the United States has an urgent national security interest to develop alcohol fuels technology, production, and distribution systems as rapidly as possible;</text> </paragraph><paragraph id="H8A99B0C26CB44E87AF487A5725DA0B03"><enum>(14)</enum><text>new cars sold in the United States that are equipped with an internal combustion engine should allow for fuel competition by being flexible fuel vehicles, and new diesel cars should be capable of operating on biodiesel; and</text> </paragraph><paragraph id="H373C669567B340F3A58E18214C937FB0"><enum>(15)</enum><text>such an open fuel standard would help to protect the United States economy from high and volatile oil prices and from the threats caused by global instability, terrorism, and natural disaster.</text> </paragraph></subsection><subsection id="H711B744F0C414E41BEB186D70CA14731"><enum>(b)</enum><header>Open fuel standard for transportation</header><paragraph commented="no" display-inline="yes-display-inline" id="H498B623E700343E7907767477B3CE05F"><enum>(1)</enum><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/329">Chapter 329</external-xref> of title 49, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H904B5655C1914AFC81C7C7E9BFD80B98" style="USC"> <section id="H14C601783B7A419C994BE7D962944DAB"><enum>32920.</enum><header>Open fuel standard for transportation</header> <subsection id="H704B6F9B02B644C39FFE68C0EB70E23A"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H20E6A1EA841845688E181910DEEA41E0"><enum>(1)</enum><header>E<enum-in-header>85</enum-in-header></header><text>The term <quote>E85</quote> means a fuel mixture containing 85 percent ethanol and 15 percent gasoline by volume.</text> </paragraph><paragraph id="H80ACD7EFF6FB46CFBAE4EE40E6DD5BE8"><enum>(2)</enum><header>Flexible fuel automobile</header><text>The term <quote>flexible fuel automobile</quote> means an automobile that has been warranted by its manufacturer to operate on gasoline, E85, and M85.</text> </paragraph><paragraph id="H44CBB389F8484416B2E800EB5435230A"><enum>(3)</enum><header>Fuel choice-enabling automobile</header><text>The term <quote>fuel choice-enabling automobile</quote> means—</text> <subparagraph id="HDE8DD1688B054574B0DD2DEA42A7DC94"><enum>(A)</enum><text>a flexible fuel automobile; or</text> </subparagraph><subparagraph id="H35C51C777CC5435DBA453CF849959767"><enum>(B)</enum><text>an automobile that has been warranted by its manufacturer to operate on biodiesel.</text> </subparagraph></paragraph><paragraph id="HED1B6CC3F9BD4B03A022F266CC0C09ED"><enum>(4)</enum><header>Light-duty automobile</header><text>The term <quote>light-duty automobile</quote> means—</text> <subparagraph id="H3DA3A5AA319645A28E58E1F9B4AA605B"><enum>(A)</enum><text>a passenger automobile; or</text> </subparagraph><subparagraph id="HB4B49F60316D45989173FEA7E1D34B2F"><enum>(B)</enum><text>a non-passenger automobile.</text> </subparagraph></paragraph><paragraph id="H11F6081C46544FFFBD817EFA40E7D475"><enum>(5)</enum><header>Light-duty automobile manufacturer’s annual covered inventory</header><text>The term <quote>light-duty automobile manufacturer’s annual covered inventory</quote> means the number of light-duty automobiles powered by an internal combustion engine that a manufacturer, during a given calendar year, manufactures in the United States or imports from outside of the United States for sale in the United States.</text> </paragraph><paragraph id="HDD1DAB1A7DB74B9FBFB2970B7D6CB9EB"><enum>(6)</enum><header>M<enum-in-header>85</enum-in-header></header><text>The term <quote>M85</quote> means a fuel mixture containing 85 percent methanol and 15 percent gasoline by volume.</text> </paragraph></subsection><subsection id="HBBE8D58C8B2A404BA020599A15A17A7C"><enum>(b)</enum><header>Open fuel standard for transportation</header><text></text> <paragraph id="HA6B582126E30487CB36A44D76C693BA0"><enum>(1)</enum><header>In general</header><text>The Secretary may promulgate regulations to require each light-duty automobile manufacturer’s annual covered inventory to be comprised of a minimum percentage of fuel-choice enabling automobiles, with sufficient lead time, if the Secretary, in coordination with the Secretary of Energy and the Administrator of the Environmental Protection Agency, determines such requirement is a cost-effective way to achieve the Nation’s energy independence and environmental objectives. The cost-effective determination shall consider the future availability of both alternative fuel supply and infrastructure to deliver the alternative fuel to the fuel-choice enabling vehicles.</text> </paragraph><paragraph id="HF39639EBCB314A7BB7C1C3EACA01FF3B"><enum>(2)</enum><header>Temporary exemption from requirements</header> <subparagraph id="H3CE759076C354DC28095F7997440BE71"><enum>(A)</enum><header>Application</header><text>A manufacturer may request an exemption from the requirement described in paragraph (1) by submitting an application to the Secretary, at such time, in such manner, and containing such information as the Secretary may require by regulation. Each such application shall specify the models, lines, and types of automobiles affected.</text> </subparagraph><subparagraph id="H92691444257D4071AEBEA223F3CFDBFD"><enum>(B)</enum><header>Evaluation</header><text>After evaluating an application received from a manufacturer, the Secretary may at any time, under such terms and conditions, and to such extent as the Secretary considers appropriate, temporarily exempt, or renew the exemption of, a light-duty automobile from the requirement described in paragraph (1) if the Secretary determines that unavoidable events not under the control of the manufacturer prevent the manufacturer of such automobile from meeting its required production volume of fuel choice-enabling automobiles, including—</text> <clause id="H7486F24043824226A597029BD6822DAE"><enum>(i)</enum><text>a disruption in the supply of any component required for compliance with the regulations;</text> </clause><clause id="HA7E1625C848F49E0B5F53686D89C4D80"><enum>(ii)</enum><text>a disruption in the use and installation by the manufacturer of such component; or</text> </clause><clause id="HDE7804E3E2F8463C9C40988740AD193C"><enum>(iii)</enum><text>application to plug-in electric drive vehicles causing such vehicles to fail to meet State air quality requirements.</text> </clause></subparagraph><subparagraph id="HC2D88BC47AE44B859CB6B2BD072D35AF"><enum>(C)</enum><header>Consolidation</header><text>The Secretary may consolidate applications received from multiple manufacturers under subparagraph (A) if they are of a similar nature.</text> </subparagraph><subparagraph id="HF661F41F756545F981EDF3834E82F7AD"><enum>(D)</enum><header>Conditions</header><text>Any exemption granted under subparagraph (B) shall be conditioned upon the manufacturer’s commitment to recall the exempted automobiles for installation of the omitted components within a reasonable time proposed by the manufacturer and approved by the Secretary after such components become available in sufficient quantities to satisfy both anticipated production and recall volume requirements.</text> </subparagraph><subparagraph id="HD5E460936C824DE580BC776AD1B98E6B"><enum>(E)</enum><header>Notice</header><text>The Secretary shall publish in the Federal Register—</text> <clause id="H6EB097BB6A6B406B8103583564C0155B"><enum>(i)</enum><text>notice of each application received from a manufacturer;</text> </clause><clause id="HD3AC504E2E9C45F7A3AEB72305245474"><enum>(ii)</enum><text>notice of each decision to grant or deny a temporary exemption; and</text> </clause><clause id="H18F82CBCA2AC48D9BD1DD8825939F2E0"><enum>(iii)</enum><text>the reasons for granting or denying such exemptions.</text> </clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H3896FAC07C474EC18E5E93940EE83D29" indent="up1"><enum>(2)</enum><text>The table of contents in chapter 329 of such title is amended adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H1E7C95FEF4A040C498384CFE281E7724" style="USC"> <toc regeneration="no-regeneration"> <toc-entry level="section">32920. Open fuel standard for transportation.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="HC503814872FB4A9192138BD96720F825" section-type="subsequent-section"><enum>128.</enum><header>Diesel emissions reduction</header><text display-inline="no-display-inline">Subtitle G of title VII of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16131">42 U.S.C. 16131 et seq.</external-xref>) is amended—</text> <paragraph id="HFC21488E7DA2418EAE25A96E454C9FEC"><enum>(1)</enum><text>in the matter preceding clause (i) in section 791(3)(B), by inserting <quote>in any State</quote> after <quote>nonprofit organization or institution</quote>;</text> </paragraph><paragraph id="HF60ABAF2BC7E4AF996719FD2C94A9981"><enum>(2)</enum><text>in section 791(9), by striking <quote>The term <term>State</term> includes the District of Columbia.</quote> and inserting <quote>The term <term>State</term> includes the District of Columbia, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the Virgin Islands.</quote>;</text> </paragraph><paragraph id="H3E934E3EFE814B028F86E10E4CD5C42F"><enum>(3)</enum><text>in section 793(c)—</text> <subparagraph id="HA6C50AB4B43C4B75B156F6B880E9D1B6"><enum>(A)</enum><text>in paragraph (2)(A), by striking <quote>51 States</quote> and inserting <quote>56 States</quote>;</text> </subparagraph><subparagraph id="HEF8141980A1647D2B036BAF31DE0E7BB"><enum>(B)</enum><text>in paragraph (2)(A), by striking <quote>1.96 percent</quote> and inserting <quote>1.785 percent</quote>;</text> </subparagraph><subparagraph id="H0956F02994F444AF8D7E40337F6E059D"><enum>(C)</enum><text>in paragraph (2)(B), by striking <quote>51 States</quote> and inserting <quote>56 States</quote>; and</text> </subparagraph><subparagraph id="H5F5C5A54D0E247F68F82807C879D1BF8"><enum>(D)</enum><text>in paragraph (2)(B), by amending clause (ii) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H1C06228754694CB89449CF0008387F39" style="OLC"> <clause id="HB65BB6811C67498FB196ECC2B0A1B6DE"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of funds remaining after each State described in paragraph (1) receives the 1.785-percent allocation under this paragraph.</text> </clause><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H903638F72F4646EBBF37876C6F8D4F79"><enum>(4)</enum><text display-inline="yes-display-inline">in section 797, by striking <quote>2011</quote> and inserting <quote>2016</quote>.</text> </paragraph></section><section id="H12BDCBA5651D45F9897680609B39D9C0"><enum>129.</enum><header>Loan guarantees for projects to construct renewable fuel pipelines</header> <subsection id="H739271F29F5D4D5EB900F1B2550A64C4"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">Section 1701 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16511">42 U.S.C. 16511</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H7D25C034FBA0487D82456C601129C608" style="OLC"> <paragraph id="HD720EDEB01E0445899B06CC150CB54B5"><enum>(6) </enum><header>Renewable fuel</header><text display-inline="yes-display-inline">The term ‘renewable fuel’ has the meaning given the term in section 211(o)(1) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)</external-xref>), except that the term shall include all ethanol and biodiesel.</text> </paragraph><paragraph id="HFF5FD6EA2DE04CE292C4137BCD26F467"><enum>(7)</enum><header>Renewable fuel pipeline</header><text>The term ‘renewable fuel pipeline’ means a common carrier pipeline for transporting renewable fuel.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H582A453AF55345F2BDDAABF098FEAA42"><enum>(b)</enum><header>Renewable fuel pipeline eligibility</header><text>Section 1703(b) the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16513">42 U.S.C. 16513</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H46B11A20B90C4D36933D32B04E3D5467" style="OLC"> <paragraph id="HFC03F1D9D5934549847CCE6B1595DDF5"><enum>(11)</enum><text display-inline="yes-display-inline">Renewable fuel pipelines.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HD6DEC27F57B343C5AE3B9F3D2A2AEBFB"><enum>130.</enum><header>Fleet vehicles</header><text display-inline="no-display-inline">Section 508 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13258">42 U.S.C. 13258</external-xref>) is amended as follows:</text> <paragraph id="H6F7E23337EAB49F09839D776E5AAD2C3"><enum>(1)</enum><text>By adding the following new paragraph at the end of subsection (a):</text> <quoted-block display-inline="no-display-inline" id="HA339D14ED2FA410BA8745669C4C0CEC3" style="OLC"> <paragraph id="HE161F80443DD49978D4DFB0AD0B30706"><enum>(6)</enum><header>Repowered or converted alternative fueled vehicles</header><text display-inline="yes-display-inline">As used in this paragraph, the term <quote>repowered or converted alternative fueled vehicle</quote> includes light-, medium- or heavy-duty motor vehicles that have been modified with an EPA or CARB compliant engine or vehicle or aftermarket system so that the vehicle or engine is capable of operating on an alternative fuel.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HF3235A2F3C5548D38C928FA1DFFD8DB1"><enum>(2)</enum><text>By adding the following new paragraph at the end of subsection (b):</text> <quoted-block display-inline="no-display-inline" id="H0C9BAC5028EC412DA65C9F59596C5768" style="OLC"> <paragraph id="H6A30C65E5CE845429085C932A5A5E934"><enum>(3)</enum><text display-inline="yes-display-inline">Repowered or converted vehicles. Not later than January 1, 2010, the Secretary shall allocate credits to fleets that repower or convert an existing vehicle so that it is capable of operating on an alternative fuel. In the case of any medium- or heavy-duty vehicle that is repowered or converted so that it is capable of operating on an alternative fuel, the Secretary shall allocate additional credits for such vehicles if he determines that such vehicles displace more petroleum than light duty alternative fueled vehicles. Such rules shall also include a requirement that such vehicles remain in the fleet for a period of no less than 2 years in order to continue to qualify for credit. The Secretary also shall extend the flexibility afforded in this paragraph to Federal fleets subject to the purchase provisions contained in section 303 of this Act.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HF736276085DA4530A6D29083FA555120"><enum>130A.</enum><header>Report on natural gas vehicle emissions reductions</header><text display-inline="no-display-inline">Within 360 days after the date of enactment of this Act, the Administrator, in consultation with the Secretaries of Energy and Transportation, and the Administrator of the General Services Administration, and after an examination of available scientific studies or analysis, shall submit to the Congress a report on—</text> <paragraph id="H21B7E0A5C9284D7AB1D0021B3BB5C5C3"><enum>(1)</enum><text>the contribution that light and heavy duty natural gas vehicles, by category and State, have made during the last decade to the reduction of greenhouse gases and criteria pollutants under the Clean Air Act, and the reduced consumption of petroleum-based fuels;</text> </paragraph><paragraph id="H14D5CF6FE3BE463BA3534A1290CB2CCB"><enum>(2)</enum><text>the contribution that light and heavy duty natural gas vehicles are expected to make from 2010 to 2020 in reducing greenhouse gas and criteria pollutants under the Clean Air Act based, among other things, on additional Federal incentives for the manufacture and deployment of natural gas vehicles provided in this Act, and other Federal legislation; and</text> </paragraph><paragraph id="H79FBA1F7132F46A79393CA5E683FCFC9"><enum>(3)</enum><text>additional Federal measures, including legislation, that could, if implemented, maximize the potential for natural gas used in both stationary and mobile sources to contribute to the reduction of greenhouse gases and criteria pollutants under the Clean Air Act.</text> </paragraph></section></subtitle><subtitle id="HB7B4F41FD87D4F379FDB71818EB9A7E7"><enum>D</enum><header>State Energy and Environment Development Accounts</header> <section id="H5186C862A4654B3CA5550B204B665EF4"><enum>131.</enum><header>Establishment of SEED Accounts</header> <subsection id="H51DF6CD88ECC4FCEA8F86FE7DDD9DB30"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HA0CB2B2244A44079B17F488C9787512A"><enum>(1)</enum><header>SEED Account</header><text display-inline="yes-display-inline">The term <quote>SEED Account</quote> means a State Energy and Environment Development Account established pursuant to this section.</text> </paragraph><paragraph id="H02040A49B0714F58B497F86AC140B260"><enum>(2)</enum><header>State energy office</header><text>The term <quote>State Energy Office</quote> means a State entity eligible for grants under part D of title III of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6321">42 U.S.C. 6321 et seq.</external-xref>).</text> </paragraph></subsection><subsection id="HD98AB03027ED4A38A6A059EA39AF1BA2"><enum>(b)</enum><header>Establishment of program</header><text display-inline="yes-display-inline">The Administrator shall establish a program under which a State, through its State Energy Office or other State agency designated by the State, may operate a State Energy and Environment Development Account.</text> </subsection><subsection id="H99C8066CF60140658CFB56A24BE5DB89"><enum>(c)</enum><header>Purpose</header><text>The purpose of each SEED Account is to serve as a common State-level repository for managing and accounting for emission allowances provided to States designated for renewable energy and energy efficiency purposes.</text> </subsection><subsection id="H79B6A8385A3D4CF5B13BA14B456A0671"><enum>(d)</enum><header>Regulations</header><text>Not later than 1 year after the date of enactment of this Act, the Administrator shall promulgate regulations to carry out this section, including regulations—</text> <paragraph id="HEDC496B5894C4933A84C588A1F49778B"><enum>(1)</enum><text>to ensure that each State operates its SEED Account and any subaccounts thereof efficiently and in accordance with this Act and applicable State and Federal laws;</text> </paragraph><paragraph id="HA36FA3E35A234E04ABA532F55319AE67"><enum>(2)</enum><text>to prevent waste, fraud, and abuse;</text> </paragraph><paragraph id="H95CFA9B778694591A8EE097495CCCB9C"><enum>(3)</enum><text>to indicate the emission allowances that may be deposited in a State’s SEED Account pending distribution or use;</text> </paragraph><paragraph id="H50EA8A059F824F939941BCDCD9797F0F"><enum>(4)</enum><text>to indicate the programs and objectives authorized by Federal law for which emission allowances in a SEED Account may be distributed or used;</text> </paragraph><paragraph id="HE470D3B3F36843B29A7F43CDFF061162"><enum>(5)</enum><text>to identify the forms of financial assistance and incentives that States may provide through distribution or use of SEED Accounts; and</text> </paragraph><paragraph id="HDB2B68C4838D42FEA9590696A120461A"><enum>(6)</enum><text>to prescribe the form and content of reports that the States are required to submit under this section on the use of SEED Accounts.</text> </paragraph></subsection><subsection id="HDA61CE38822A4944A307C1BC08519070"><enum>(e)</enum><header>Operation</header> <paragraph id="H3AA8565BBF0D48909BE5470BEA3F229B"><enum>(1)</enum><header>Deposits</header> <subparagraph id="H1480F05FBD61483E87A8F67F2EBC1821"><enum>(A)</enum><header>In general</header><text>In the allowance tracking system established pursuant to section 724(d) of the Clean Air Act, the Administrator shall establish a SEED Account for each State and place in it the allowances allocated pursuant to section 782(g) of the Clean Air Act to be distributed to States pursuant to sections 132 and 201 of this Act.</text> </subparagraph><subparagraph id="H39EEFB94572B4BFEB8E077140344B580"><enum>(B)</enum><header>Financial account</header><text>A State may create a financial account associated with its SEED Account to deposit, retain, and manage any proceeds of any sale of any allowance provided pursuant to this Act pending expenditure or disbursement of those proceeds for purposes permitted under this section. The funds in such an account shall not be commingled with other funds not derived from the sale of allowances provided to the State; however, loans made by the State from such funds pursuant to paragraph (2)(C)(i) may be repaid into such a financial account, including any interest charged.</text> </subparagraph></paragraph><paragraph id="H7A92BEA75DE746FE98895DD53E84AE7C"><enum>(2)</enum><header>Withdrawals</header> <subparagraph id="H313E2F7F880546A79C46C5766A3DAB63"><enum>(A)</enum><header>In general</header><text>All allowances distributed pursuant to sections 132 and 201, including the proceeds of any sale of such allowances, shall support renewable energy and energy efficiency programs authorized or approved by the Federal Government.</text> </subparagraph><subparagraph id="HBB119BC5B24D44D79C45F8AFBD114AA9"><enum>(B)</enum><header>Dedicated allowances</header><text>Allowances distributed pursuant to sections 132 and 201 that are required by law to be used for specific purposes for a specified period shall be used according to those requirements during that period.</text> </subparagraph><subparagraph id="HEF21F2DD20D44310BA54BEA4890BBE6C"><enum>(C)</enum><header>Undedicated allowances</header><text>To the extent that allowances distributed pursuant to sections 132 and 201 are not required by law to be used for specific purposes for a specified period as described in subparagraph (B), such allowances or the proceeds of their sale may be used for any of the following purposes:</text> <clause id="H06E4B34F84234C019E32934A4502C3BD"><enum>(i)</enum><header>Loans</header><text>Loans of allowances, or the proceeds from the sale of allowances, may be provided, interest on commercial loans may be subsidized at an interest rate as low as zero, and other credit support may be provided to support programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.</text> </clause><clause id="H043460E49F324BB480D70190077700AF"><enum>(ii)</enum><header>Grants</header><text display-inline="yes-display-inline">Grants of allowances or the proceeds of their sale may be provided to support programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.</text> </clause><clause id="H7A688E066E8A4DE78797C2EB34E538A7"><enum>(iii)</enum><header>Other forms of support</header><text display-inline="yes-display-inline">Allowances or the proceeds of the sale of allowances may be provided for other forms of support for programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.</text> </clause><clause id="HB1E750EAFF714389A7B7132F08EBBCDC"><enum>(iv)</enum><header>Administrative costs</header><text>Except to the extent provided in Federal law authorizing or allocating allowances deposited in a SEED Account, not more than 5 percent of the allowance value in a SEED Account in any year may be used to cover administrative expenses of the SEED Account.</text> </clause></subparagraph><subparagraph id="H640131F1F45049368EAEBF17EABD1658"><enum>(D)</enum><header>Subaccounts</header><text>A State may request that the Administrator establish accounts for local governments that request such subaccounts to hold allowances distributed to local governments for renewable energy or energy efficiency programs authorized or approved by the Federal Government.</text> </subparagraph><subparagraph id="HB1EDDC03A7A748B2B9B81593BD55DE14"><enum>(E)</enum><header>Intended use plans</header> <clause id="HC042EF863EF04D6390E472571C9E53FA"><enum>(i)</enum><header>In general</header><text>After providing for public review and comment, each State administering a SEED Account shall annually prepare a plan that identifies the intended uses of the allowances or proceeds from the sale of allowances in its SEED Account.</text> </clause><clause id="H84C7C1AF99EE4CCFBB7735CB3B50DB73"><enum>(ii)</enum><header>Contents</header><text>An intended use plan shall include—</text> <subclause id="HE86734A639CA4D088BC31ABF4EF69F6B"><enum>(I)</enum><text>a list of the projects or programs for which withdrawals from the SEED Account are intended in the next fiscal year that begins after the date of the plan, including a description of each project;</text> </subclause><subclause id="H6C121ABCE00D4B98AB69B9231A8001E9"><enum>(II)</enum><text>the relationship of each of the projects or programs to an identified Federal purpose authorized by this Act, or any other Federal statute;</text> </subclause><subclause id="H7593B0FAE0F341D491DB06B77779EF2C"><enum>(III)</enum><text>the expected terms of use of allowance value to provide assistance;</text> </subclause><subclause id="HF54719C1DA6746C7932CBB6C8A2D41A9"><enum>(IV)</enum><text>the criteria and methods established for the distribution of allowances or allowance value;</text> </subclause><subclause id="HE755C8D4C0684CD691F2895D846B236A"><enum>(V)</enum><text>a description of the equivalent financial value and status of the SEED Account; and</text> </subclause><subclause id="H70327F932E2448F6AA158D36495168E6"><enum>(VI)</enum><text>a statement of the mid-term and long-term goals of the State for use of its SEED Account.</text> </subclause></clause></subparagraph></paragraph><paragraph id="H2D359F55F97B44A5BBDBDBA55404D1F0"><enum>(3)</enum><header>Accountability and transparency</header> <subparagraph id="H45BF2FF26CE54384AC664F341EFA988F"><enum>(A)</enum><header>Controls and procedures</header><text>Any State that has a SEED Account shall establish fiscal controls and recordkeeping and accounting procedures for the SEED Account sufficient to ensure proper accounting during appropriate accounting periods for distributions into the SEED Account, transfers from the SEED Account, and SEED Account balances, including any related financial accounts. Such controls and procedures shall conform to generally accepted government accounting principles. Any State that has a SEED Account shall retain records for a period of at least 5 years.</text> </subparagraph><subparagraph id="HA7A3797B89EE4DB89F01EC937B38E410"><enum>(B)</enum><header>Audits</header><text>Any State that has a SEED Account shall have an annual audit conducted of the SEED Account by an independent public accountant in accordance with generally accepted auditing standards, and shall transmit the results of that audit to the Administrator.</text> </subparagraph><subparagraph id="H4D1A243DC287466784C197395A309F86"><enum>(C)</enum><header>State report</header><text>Each State administering a SEED Account shall make publicly available and submit to the Administrator a report every 2 years on its activities related to its SEED Account.</text> </subparagraph><subparagraph id="HB6014D2F0D61441CA410532E974937CC"><enum>(D)</enum><header>Public information</header><text display-inline="yes-display-inline">Any—</text> <clause id="H28CCC5D4C51A41DDA7CD6A3A8B7FF5FC"><enum>(i)</enum><text>controls and procedures established under subparagraph (A); and</text> </clause><clause id="H451B1F8B0CF34D4A846000EC24DD9122"><enum>(ii)</enum><text>information obtained through audits conducted under subparagraph (B), except to the extent that it would be protected from disclosure, if it were information held by the Federal Government, under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)</external-xref> of title 5, United States Code,</text> </clause><continuation-text continuation-text-level="subparagraph">shall be made publicly available.</continuation-text></subparagraph><subparagraph id="H21DF16CD38B143FEB5194079E6DF58A0"><enum>(E)</enum><header>Other protections</header><text>The Administrator shall require such additional procedures and protections as are necessary to ensure that any State that has a SEED Account will operate the SEED Account in an accountable and transparent manner.</text> </subparagraph></paragraph></subsection><subsection id="HBB58EBAD64A046D4A08ABCC0EA40474D"><enum>(f)</enum><header>Requirements for eligibility</header><text display-inline="yes-display-inline">A State’s eligibility to receive allowances in its SEED Account shall depend on that State’s compliance with the requirements of this Act (and the amendments made by this Act).</text> </subsection><subsection id="HE5B82349BD874430AF7911B94E80D1E3"><enum>(g)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to the Administrator such sums as may be necessary for SEED Account operations.</text> </subsection></section><section id="HEEB6B6F25CC64E008E65BC27075EF1F9"><enum>132.</enum><header>Support of State renewable energy and energy efficiency programs</header> <subsection id="HA0AAD5D07C5740C3B8B41A557BBBBB5F"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H35A696CF8C0643169948C03664FE94CB"><enum>(1)</enum><header>Allowance</header><text>The term <quote>allowance</quote> means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).</text> </paragraph><paragraph id="H686FB619DB104C8694C52E65FDC54C38"><enum>(2)</enum><header>Cost-effective</header><text>The term <quote>cost-effective</quote>, with respect to an energy efficiency program, means that the program meets the Total Resource Cost Test, which requires that the net present value of economic benefits over the life of the program or measure, including avoided supply and delivery costs and deferred or avoided investments, is greater than the net present value of the economic costs over the life of the program, including program costs and incremental costs borne by the energy consumer.</text> </paragraph><paragraph id="H767ACABE8B84436BA886E938846142FC"><enum>(3)</enum><header>Renewable energy resource</header><text>The term <quote>renewable energy resource</quote> shall have the meaning given that term in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of this Act).</text> </paragraph><paragraph id="H3EAE60456B9D4C9289D53F83D14A29F7"><enum>(4)</enum><header>Vintage year</header><text>The term <quote>vintage year</quote> shall the meaning given that term in section 700 of the Clean Air Act (as added by section 311 of this Act).</text> </paragraph></subsection><subsection id="H3595DF6DE9CA446E90F518BDF046433F"><enum>(b)</enum><header>Distribution among states</header><text>Not later than September 30 of each calendar year from 2011 through 2049, the Administrator shall, in accordance with this section, distribute allowances allocated pursuant to section 782(g)(1) of the Clean Air Act (as added by section 311 of this Act) for the following vintage year. The Administrator shall distribute 0.5 percent of such allowances pursuant to section 133 of this Act. The Administrator shall distribute the remaining allowances to States for renewable energy and energy efficiency programs to be deposited in and administered through the State Energy and Environment Development (SEED) Accounts established pursuant to section 131. The Administrator shall distribute allowances among the States under this section each year in accordance with the following formula:</text> <paragraph id="H19A6AB094B2949D6904E577096F4C757"><enum>(1)</enum><text>One third of the allowances shall be divided equally among the States.</text> </paragraph><paragraph id="HD8BBFE02EB0948DFAA721E437E15AA90"><enum>(2)</enum><text>One third of the allowances shall be distributed ratably among the States based on the population of each State, as contained in the most recent reliable census data available from the Bureau of the Census, Department of Commerce, for all States at the time the Administrator calculates the formula for distribution.</text> </paragraph><paragraph id="HE9303050C49C41209FC1CA5CFA64AB60"><enum>(3)</enum><text>One third of the allowances for shall be distributed ratably among the States on the basis of the energy consumption of each State as contained in the most recent State Energy Data Report available from the Energy Information Administration (or such alternative reliable source as the Administrator may designate).</text> </paragraph></subsection><subsection id="H699107F6568E442DA3D8AD84AC3D599E"><enum>(c)</enum><header>Uses</header><text>The allowances distributed to each State pursuant to this section shall be used exclusively in accordance with the following requirements:</text> <paragraph id="H57949362CEE14144B13176BE46865001"><enum>(1)</enum><text>Not less than 12.5 percent shall be distributed by the State to units of local government within such State to be used exclusively to support the energy efficiency and renewable energy purposes listed in paragraphs (2) and (3).</text> </paragraph><paragraph id="H0D9EA42596AD4BECAE851A5B8EDB2EAE"><enum>(2)</enum><text>Not less than 20 percent shall be used exclusively for the following energy efficiency purposes, provided that not less than 1 percent shall be used for the purpose described in subparagraph (D) and not less than 5.5 percent shall be used for the purpose described in subparagraph (E):</text> <subparagraph id="H482640740DE44021AF95DBEF055D7750"><enum>(A)</enum><text>Implementation and enforcement of building codes adopted in compliance with section 201.</text> </subparagraph><subparagraph id="H99B5AC7D2E4647D2A849ABE2D588259D"><enum>(B)</enum><text>Implementation of the energy efficient manufactured homes program established pursuant to section 203.</text> </subparagraph><subparagraph id="HD3FBAEB39DF9484CB6F259507E3472F7"><enum>(C)</enum><text>Implementation of the building energy performance labeling program established pursuant to section 204.</text> </subparagraph><subparagraph id="H616AA1CF82B547F0987256445EFBCE22"><enum>(D)</enum><text>Low-income community energy efficiency programs that are consistent with the grant program established under section 264 of this Act.</text> </subparagraph><subparagraph id="H614EF82510E446898940A3F45FF26EC4"><enum>(E)</enum><text>Implementation of the Retrofit for Energy and Environmental Performance (REEP) program established pursuant to section 202.</text> </subparagraph></paragraph><paragraph id="HB9A54726B59044C89888F03BF02EEAD6"><enum>(3)</enum><text display-inline="yes-display-inline">Not less than 20 percent shall be used exclusively for capital grants, tax credits, production incentives, loans, loan guarantees, forgivable loans, direct provision of allowances, and interest rate buy-downs for—</text> <subparagraph id="HB76F027748294C679CC7064A33736F16"><enum>(A)</enum><text>re-equipping, expanding, or establishing a manufacturing facility that receives certification from the Secretary of Energy pursuant to section 1302 of the American Recovery and Reinvestment Act of 2009 for the production of—</text> <clause id="H5C80C93272E94FFDA5FD4FA1EFB40612"><enum>(i)</enum><text>property designed to be used to produce energy from renewable energy sources; and</text> </clause><clause id="H2ADD5286B3F743F6BB5AE2528814BEBE"><enum>(ii)</enum><text>electricity storage systems;</text> </clause></subparagraph><subparagraph id="HA3F3B830529741A5848B0EA3B53641C2"><enum>(B)</enum><text>deployment of technologies to generate electricity from renewable energy sources; and</text> </subparagraph><subparagraph id="HCECD07B2FBBB4E0D8700FABCB0F260E1"><enum>(C)</enum><text>deployment of facilities or equipment, such as solar panels, to generate electricity or thermal energy from renewable energy resources in and on buildings in an urban environment.</text> </subparagraph></paragraph><paragraph id="H4A175E6BAB7946FBA875F35A69023800"><enum>(4)</enum><text>The remaining 47.5 percent shall be used exclusively for any of the following purposes:</text> <subparagraph id="H734DF22909F4407A8E7BB4A65A8011F5"><enum>(A)</enum><text>Energy efficiency purposes described in paragraph (2).</text> </subparagraph><subparagraph id="HC0E8914F6E1E4B418C0FA3BC7AEC244A"><enum>(B)</enum><text>Renewable energy purposes described in paragraph (3)(B) and (C).</text> </subparagraph><subparagraph id="H36D8C8F56E7E4006962CD5C1EB8D6FA6"><enum>(C)</enum><text>Cost-effective energy efficiency programs for end-use consumers of electricity, natural gas, home heating oil, or propane, including, where appropriate, programs or mechanisms administered by local governments and entities other than the State.</text> </subparagraph><subparagraph id="HE0D11549EE564629AE3DD0CE8EB65066"><enum>(D)</enum><text>Enabling the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17381">42 U.S.C. 17381</external-xref>)) for State, local government, and other public buildings and facilities, including integration of renewable energy resources and distributed generation, demand response, demand side management, and systems analysis.</text> </subparagraph><subparagraph id="H71318D66DF634A888EAC2100A4ED2F20"><enum>(E)</enum><text>Providing the non-Federal share of support for surface transportation capital projects under—</text> <clause id="HA97464BD1A3141DB8A0D4E980853D65C"><enum>(i)</enum><text>sections 5307, 5308, 5309, 5310, 5311 and 5319 of title 49, United States Code; and</text> </clause><clause id="HA83DEFCCB9C446379D89F4AF43C5CF1A"><enum>(ii)</enum><text>sections 142, 146, and 149 of title 23, United States Code,</text> </clause><continuation-text continuation-text-level="subparagraph">provided that not more than 10 percent of allowances distributed to each State pursuant to this section shall be used for such purpose.</continuation-text></subparagraph></paragraph><paragraph id="HF913F9FC32344454820551980312DAF8"><enum>(5)</enum><text>For any allowances used for the purpose described in paragraph (4)(C), the State shall—</text> <subparagraph id="HA0099CE1438341D2AD1B29F2C12C397D"><enum>(A)</enum><text>prioritize expansion of existing energy efficiency programs approved and overseen by the State or the appropriate State regulatory authority; and</text> </subparagraph><subparagraph id="H6D019E9272F24A4188B3982FBA278879"><enum>(B)</enum><text>demonstrate that such allowances have been used to supplement, and not to supplant, existing and otherwise available State, local, and ratepayer funding for such purpose.</text> </subparagraph></paragraph></subsection><subsection id="HC736781B4B3C4CB1957612B3CA7C6FED"><enum>(d)</enum><header>Reporting</header><text>Each State receiving allowances under this section shall include in its biennial reports required under section 131, in accordance with such requirements as the Administrator may prescribe—</text> <paragraph id="H7FF0316437834A389710B9DC5079CCEF"><enum>(1)</enum><text>a list of entities receiving allowances or allowance value under this section, including entities receiving such allowances or allowance value from units of local government pursuant to subsection (c)(1);</text> </paragraph><paragraph id="H96A0324CE9DF49F0908C6D376D4BF4FE"><enum>(2)</enum><text>the amount and nature of allowances or allowance value received by each such recipient;</text> </paragraph><paragraph id="H8F6B6681298C4A5B9E6658D74704E4B3"><enum>(3)</enum><text>the specific purposes for which such allowances or allowance value was conveyed to each such recipient;</text> </paragraph><paragraph id="H30018C60AF104EDF9D4D49E0BF397A60"><enum>(4)</enum><text>documentation of the amount of energy savings, emission reductions, renewable energy deployment, and new or retooled manufacturing capacity resulting from the use of such allowances or allowance value; and</text> </paragraph><paragraph id="H2CD4C686C2724A24AF086FAA4CA53741"><enum>(5)</enum><text>for any energy efficiency program supported under subsection (c)(4)(C)—</text> <subparagraph id="HA9AC83770BB14E48926B4F128EBE66A1"><enum>(A)</enum><text>an assessment demonstrating the cost-effectiveness of such program; and</text> </subparagraph><subparagraph id="HD2D77C64D5034BE5AC956BC81691191B"><enum>(B)</enum><text>a demonstration that the requirements set forth in subsection (c)(5) have been satisfied.</text> </subparagraph></paragraph></subsection><subsection id="H6BEC0C0EBC7843598269B86197C03677"><enum>(e)</enum><header>Enforcement</header><text>If the Administrator determines that a State is not in compliance with this section, the Administrator may withhold up to twice the number of allowances that the State failed to use in accordance with the requirements of this section, that such State would otherwise be eligible to receive under this section in later years. Allowances withheld pursuant to this subsection shall be distributed among the remaining States in accordance with the requirements of subsection (b).</text> </subsection></section><section id="H503D653A277345929F5025D1C430449B"><enum>133.</enum><header>Support of Indian renewable energy and energy efficiency programs</header> <subsection id="HB04B5806EAF7494F9D2A6913A8901851"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H2C3387324D9742249728D62493E0F259"><enum>(1)</enum><header>Allowance; cost-effective; renewable energy resource</header><text>The terms <quote>allowance</quote>, <quote>cost-effective</quote>, and <quote>renewable energy resource</quote> have the meaning given those terms in section 132 of this Act.</text> </paragraph><paragraph id="HC0B25A3E9B134251BD7CD8BCF627E0F9"><enum>(2)</enum><header>Indian tribe</header><text>The term <quote>Indian tribe</quote> has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25. U.S.C. 450b).</text> </paragraph><paragraph id="H967ADB84708648CEA788778D2ACBF6EA"><enum>(3)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of Energy.</text> </paragraph></subsection><subsection id="H75E8F284D0864C05817DBAB42207BB0D"><enum>(b)</enum><header>Establishment</header><text>Not later than 18 months after the date of enactment of this Act, the Secretary shall, in consultation with the Administrator and the Secretary of the Interior, promulgate regulations establishing a program to distribute allowances to Indian tribes on a competitive basis for the following purposes:</text> <paragraph id="H7D243B3B5D014170B2367B751CA3F6FC"><enum>(1)</enum><header>Energy efficiency</header><text>Cost-effective energy efficiency programs for end-use consumers of electricity, natural gas, home heating oil, or propane.</text> </paragraph><paragraph id="HADF277BE09BC4C9E8EC2FD81D1C41E73"><enum>(2)</enum><header>Renewable energy</header><text>Deployment of technologies to generate electricity from renewable energy resources.</text> </paragraph></subsection><subsection id="H4342B9FFE35647509B8AE8DBAA42C0F6"><enum>(c)</enum><header>Requirements</header><text>The regulations promulgated pursuant to subsection (b) shall prescribe design elements and requirements of the program established under this section, including—</text> <paragraph id="H17455333864140B4AF685F36E55FFD56"><enum>(1)</enum><text>objective criteria for evaluating proposals submitted by Indian tribes, and for selecting projects and programs to receive support, under this section;</text> </paragraph><paragraph id="HD7F4DBE36B5B438B90AE692718BED548"><enum>(2)</enum><text>reporting requirements for Indian tribes that receive allowances under this section; and</text> </paragraph><paragraph id="H520D0B59DA6C4BF3AE35333C8BE37FF6"><enum>(3)</enum><text>other appropriate elements and requirements.</text> </paragraph></subsection><subsection id="HB7100B6C66FB4078AA7482EE273360F3"><enum>(d)</enum><header>Distribution</header><text>The Administrator shall, at the direction of the Secretary, distribute to Indian tribes allowances that are set aside, pursuant to section 132, for use under this section.</text> </subsection></section></subtitle><subtitle id="H4B06B2130FDE4930B098A33295786ABB"><enum>E</enum><header>Smart Grid Advancement</header> <section id="H859B8B6EA76B42C79020E47B63144431"><enum>141.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle:</text> <paragraph id="H2BFD9A6A3D984B56B966DFDB58053175"><enum>(1)</enum><text display-inline="yes-display-inline">The term <quote>applicable baseline</quote> means the average of the highest three annual peak demands a load-serving entity has experienced during the 5 years immediately prior to the date of enactment of this Act.</text> </paragraph><paragraph id="HEC79DC63474F4651B14AD9970060B30D"><enum>(2)</enum><text display-inline="yes-display-inline">The term <quote>Commission</quote> means Federal Energy Regulatory Commission.</text> </paragraph><paragraph id="H7C72890EF86C4A49AACD8CDF642276ED"><enum>(3)</enum><text display-inline="yes-display-inline">The term <quote>load-serving entity</quote> means an entity that provides electricity directly to retail consumers with the responsibility to assure power quality and reliability, including such entities that are investor-owned, publicly owned, owned by rural electric cooperatives, or other entities.</text> </paragraph><paragraph id="H9D2CB61C2FBB4A70B016A5BB37EFD584"><enum>(4)</enum><text display-inline="yes-display-inline">The term <quote>peak demand</quote> means the highest point of electricity demand, net of any distributed electricity generation or storage from sources on the load-serving entity’s customers’ premises, during any hour on the system of a load serving entity during a calendar year, expressed in Megawatts (MW), or more than one such high point as a function of seasonal demand changes.</text> </paragraph><paragraph id="H95135944A1E94682A57C6BFBD761148F"><enum>(5)</enum><text display-inline="yes-display-inline">The term <quote>peak demand reduction</quote> means the reduction in annual peak demand as compared to a previous baseline year or period, expressed in Megawatts (MW), whether accomplished by—</text> <subparagraph id="H051280F1B8574818AFA8190278FD1920"><enum>(A)</enum><text>diminishing the end-use requirements for electricity;</text> </subparagraph><subparagraph id="H92DC7096BE82462B8C4E1977946EA623"><enum>(B)</enum><text>use of locally stored energy or generated electricity to meet those requirements from distributed resources on the load-serving entity’s customers’ premises and without use of high-voltage transmission; or</text> </subparagraph><subparagraph id="H95C84CEB1540419ABF3503E3BE0C3EB9"><enum>(C)</enum><text>energy savings from efficient operation of the distribution grid resulting from the use of a Smart Grid.</text> </subparagraph></paragraph><paragraph id="HD299467C918B409883EA5F3E569BC171"><enum>(6)</enum><text display-inline="yes-display-inline">The term <quote>peak demand reduction plan</quote> means a plan developed by or for a load-serving entity that it will implement to meet its peak demand reduction goals.</text> </paragraph><paragraph id="H3FD4EAF13F504544AB1C2E126A11D2F2"><enum>(7)</enum><text display-inline="yes-display-inline">The term <quote>peak period</quote> means the time period on the system of a load-serving entity relative to peak demand that may warrant special measures or electricity resources to maintain system reliability while meeting peak demand.</text> </paragraph><paragraph id="H560BD9B5D2F64B8290FAE35FB4045254"><enum>(8)</enum><text display-inline="yes-display-inline">The term <quote>Secretary</quote> means the Secretary of Energy.</text> </paragraph><paragraph id="HC39C6C81546B41619B773EF85ABBBBFA"><enum>(9)</enum><text display-inline="yes-display-inline">The term <quote>Smart Grid</quote> has the meaning provided by section 1301 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/15/17381">15 U.S.C. 17381</external-xref>).</text> </paragraph></section><section id="HD34427752D344F17A8F041C8F40F1D63"><enum>142.</enum><header> Assessment of Smart Grid cost effectiveness in products</header> <subsection id="H23DA3D291899402887C1E0FEE75F0B4A"><enum>(a)</enum><header>Assessment</header><text display-inline="yes-display-inline">Within 1 year after the date of enactment of this Act, the Secretary and the Administrator shall each assess the potential for cost-effective integration of Smart Grid technologies and capabilities in all products that are reviewed by the Department of Energy and the Environmental Protection Agency, respectively, for potential designation as Energy Star products.</text> </subsection><subsection id="H577F3350116F4B7CBDB178C1008C067B"><enum>(b)</enum><header>Analysis</header><paragraph commented="no" display-inline="yes-display-inline" id="HDC4F2D5DE61B4EE3B3EE06B65770DDA0"><enum>(1)</enum><text>Within 2 years after the date of enactment of this Act, the Secretary and the Administrator shall each prepare an analysis of the potential energy savings, greenhouse gas emission reductions, and electricity cost savings that could accrue for each of the products identified by the assessment in subsection (a) in the following optimal circumstances:</text> <subparagraph id="HDA1A5AF770C94767A588C4907425F108" indent="up1"><enum>(A)</enum><text>The products possessed Smart Grid capability and interoperability that is tested and proven reliable.</text> </subparagraph><subparagraph id="HDF8767D0BB994713800809F2697E1D07" indent="up1"><enum>(B)</enum><text>The products were utilized in an electricity utility service area which had Smart Grid capability and offered customers rate or program incentives to use the products.</text> </subparagraph><subparagraph id="H2EFE1FC8BB6141849123E807014A940D" indent="up1"><enum>(C)</enum><text>The utility’s rates reflected national average costs, including average peak and valley seasonal and daily electricity costs.</text> </subparagraph><subparagraph id="HCD8242A238D149BCA0BBCF42B3766024" indent="up1"><enum>(D)</enum><text>Consumers using such products took full advantage of such capability.</text> </subparagraph><subparagraph id="HF7D8D4B5C3FB4A5699146EE3A684F6B3" indent="up1"><enum>(E)</enum><text>The utility avoided incremental investments and rate increases related to such savings.</text> </subparagraph></paragraph><paragraph id="HB5DA738DD5F840B48709DE110DC769A4" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The analysis under paragraph (1) shall be considered the <quote>best case</quote> Smart Grid analysis. On the basis of such an analysis for each product, the Secretary and the Administrator shall determine whether the installation of Smart Grid capability for such a product would be cost effective. For purposes of this paragraph, the term <quote>cost effective</quote> means that the cumulative savings from using the product under the best case Smart Grid circumstances for a period of one-half of the product’s expected useful life will be greater than the incremental cost of the Smart Grid features included in the product.</text> </paragraph><paragraph id="H64A361D2CBA64CAFA3F01977A1780F5E" indent="up1"><enum>(3)</enum><text>To the extent that including Smart Grid capability in any products analyzed under paragraph (2) is found to be cost effective in the best case, the Secretary and the Administrator shall, not later than 3 years after the date of enactment of this Act take each of the following actions:</text> <subparagraph id="HD04057692C014816865FF2D8BBD5E417"><enum>(A)</enum><text>Inform the manufacturer of such product of such finding of cost effectiveness.</text> </subparagraph><subparagraph id="H73E588D996104820B497E1D8D858E390"><enum>(B)</enum><text display-inline="yes-display-inline">Assess the potential contributions the development and use of products with Smart Grid technologies bring to reducing peak demand and promoting grid stability.</text> </subparagraph><subparagraph id="HD1599E698A3A427C84464E4FC7B568FE"><enum>(C)</enum><text>Assess the potential national energy savings and electricity cost savings that could be realized if Smart Grid potential were installed in the relevant products reviewed by the Energy Star program.</text> </subparagraph><subparagraph id="HDF0EF796A74F44BA9977177B28409FC3"><enum>(D)</enum><text>Assess and identify options for providing consumers information on products with Smart Grid capabilities, including the necessary conditions for cost-effective savings.</text> </subparagraph><subparagraph id="H0062CA7D741049589FEB6A5F19019792"><enum>(E)</enum><text display-inline="yes-display-inline">Submit a report to Congress summarizing the results of the assessment for each class of products, and presenting the potential energy and greenhouse gas savings that could result if Smart Grid capability were installed and utilized on such products.</text> </subparagraph></paragraph></subsection></section><section id="H97E274F4599D420A833DA615C287BBDF"><enum>143.</enum><header>Inclusions of Smart Grid capability on appliance ENERGY GUIDE labels</header><text display-inline="no-display-inline">Section 324(a)(2) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6294">42 U.S.C. 6294(a)(2)</external-xref>) is amended by adding the following at the end:</text> <quoted-block display-inline="no-display-inline" id="H5FBF87DB768A48539B4AF7B63331C040" style="OLC"> <subparagraph id="HB78EE552A58A419EA6426E2EC7B38500"><enum>(J)</enum><clause commented="no" display-inline="yes-display-inline" id="HD087480164E6480DAE6216D66F746DCA"><enum>(i)</enum><text>Not later than 1 year after the date of enactment of this subparagraph, the Federal Trade Commission shall initiate a rulemaking to consider making a special note in a prominent manner on any ENERGY GUIDE label for any product actually including Smart Grid capability that—</text> <subclause id="HC68323B1CF9F442AA1D54ACAA9C9C4F6" indent="up1"><enum>(I)</enum><text>Smart Grid capability is a feature of that product;</text> </subclause><subclause id="H75DADE43424D43A8A52E0DD7BC5575AA" indent="up1"><enum>(II)</enum><text>the use and value of that feature depended on the Smart Grid capability of the utility system in which the product was installed and the active utilization of that feature by the customer; and</text> </subclause><subclause id="H33F489F80A454BC8A48305B3AF4717CF" indent="up1"><enum>(III)</enum><text>on a utility system with Smart Grid capability, the use of the product’s Smart Grid capability could reduce the customer’s cost of the product’s annual operation by an estimated dollar amount range representing the result of incremental energy and electricity cost savings that would result from the customer taking full advantage of such Smart Grid capability.</text> </subclause></clause><clause id="H1BD9C420888D4F9ABC59FE22D48AC6C4" indent="up1"><enum>(ii)</enum><text>Not later than 3 years after the date of enactment of this subparagraph, the Commission shall complete the rulemaking initiated under clause (i).</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H3455709E225F4DC1BE653E4AE547572E"><enum>144.</enum><header>Smart Grid peak demand reduction goals</header> <subsection id="H5E1737344FF049B7A327C96B66466F9B"><enum>(a)</enum><header>Goals</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this section, each load-serving entity, or, at the option of the State, each State with respect to load-serving entities that the State regulates, shall determine and publish peak demand reduction goals for any load-serving entities that have an applicable baseline in excess of 250 megawatts.</text> </subsection><subsection id="H0278D62409DF49CAA3D339DD7DFFC494"><enum>(b)</enum><header>Baselines</header><paragraph commented="no" display-inline="yes-display-inline" id="H8055D5AF04644551806A24D7BAE37E92"><enum>(1)</enum><text>The Commission, in consultation with the Secretary and the Administrator, shall develop and publish, after an opportunity for public comment, but not later than 180 days after enactment of this section, a methodology to provide for adjustments or normalization to a load-serving entity’s applicable baseline over time to reflect changes in the number of customers served, weather conditions, general economic conditions, and any other appropriate factors external to peak demand management, as determined by the Commission.</text> </paragraph><paragraph id="HCFFD913A6D5147C386C864AAFA4C6A36" indent="up1"><enum>(2)</enum><text>The Commission shall support load-serving entities (including any load-serving entities with an applicable baseline of less than 250 megawatts that volunteer to participate in achieving the purposes of this section) in determining their applicable baselines, and in developing their peak demand reduction goals.</text> </paragraph><paragraph id="H9F670F715F35421BAD0ED19604436048" indent="up1"><enum>(3)</enum><text>The Secretary, in consultation with the Commission, the Administrator, and the North American Electric Reliability Corporation, shall develop a system and rules for measurement and verification of demand reductions.</text> </paragraph></subsection><subsection id="HE4CB8BDFC33D4663B59AE8DB2FD98778"><enum>(c)</enum><header>Peak demand reduction goals</header><paragraph commented="no" display-inline="yes-display-inline" id="H46F1FF440788446BBE991ECF60412BB3"><enum>(1)</enum><text display-inline="yes-display-inline">Peak demand reduction goals may be established for an individual load-serving entity, or, at the determination of a State, tribal, or regional entity, by that State, tribal, or regional entity for a larger region that shares a common system peak demand and for which peak demand reduction measures would offer regional benefit.</text> </paragraph><paragraph id="H8CC7A73AA1934A6FA0E452002CB1BB13" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">A State or regional entity establishing peak demand reduction goals shall cooperate, as necessary and appropriate, with the Commission, the Secretary, State regulatory commissions, State energy offices, the North American Electric Reliability Corporation, and other relevant authorities.</text> </paragraph><paragraph id="HB272CDECB8F14EE283FA6FCDC5FE9D21" indent="up1"><enum>(3)</enum><text>In determining the applicable peak demand reduction goals—</text> <subparagraph id="HAC9B7D150A67436DB6734B91D7B952F1"><enum>(A)</enum><text>States and other jurisdictional entities may utilize the results of the 2009 National Demand Response Potential Assessment, as authorized by section 571 of the National Energy Conservation Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8279">42 U.S.C. 8279</external-xref>); and</text> </subparagraph><subparagraph id="HA8A566A760F04445859D2FC2AD2CFC6A"><enum>(B)</enum><text>the relative economics of peak demand reduction and generation required to meet peak demand shall be evaluated in a neutral and objective manner.</text> </subparagraph></paragraph><paragraph id="HDDBDBB21E06E48D2A18D3FCC34E413BE" indent="up1"><enum>(4)</enum><text>The applicable peak demand reduction goals shall provide that—</text> <subparagraph id="HA58663DA881843D3828D4FA6818933C1"><enum>(A)</enum><text>load-serving entities will reduce or mitigate peak demand by a minimum percentage amount from the applicable baseline to a lower peak demand during calendar year 2012;</text> </subparagraph><subparagraph id="H736B3E8522594363918DEEF84D42427B"><enum>(B)</enum><text>load-serving entities will reduce or mitigate peak demand by a minimum percentage greater amount from the applicable baseline to a lower peak demand during calendar year 2015; and</text> </subparagraph><subparagraph id="H81E9AF31ECAC47ADB412830F05C8DC9D"><enum>(C)</enum><text display-inline="yes-display-inline">the minimum percentage reductions established as peak demand reduction goals shall be the maximum reductions that are realistically achievable with an aggressive effort to deploy Smart Grid and peak demand reduction technologies and methods, including but not limited to those listed in subsection (d).</text> </subparagraph></paragraph></subsection><subsection id="H692A9BEB21AF4A87B789E6F43C605A1F"><enum>(d)</enum><header>Plan</header><text>Each load-serving entity shall prepare a peak demand reduction plan that demonstrates its ability to meet each applicable goal by any or a combination of the following options:</text> <paragraph id="H4D1F794C5A2C40EEB91278E1C96D2856"><enum>(1)</enum><text display-inline="yes-display-inline">Direct reduction in megawatts of peak demand through—</text> <subparagraph id="H3F3DEF5DFFFB48659C32AA23FB711957"><enum>(A)</enum><text>energy efficiency measures (including efficient transmission wire technologies which significantly reduce line loss compared to traditional wire technology) with reliable and continued application during peak demand periods; or</text> </subparagraph><subparagraph id="H5EB2E1B7182D4680A51E3C3437A64AE2"><enum>(B)</enum><text>use of a Smart Grid.</text> </subparagraph></paragraph><paragraph id="HC2770E2861D947E2B934AC11CDA00C84"><enum>(2)</enum><text>Demonstration that an amount of megawatts equal to a stated portion of the applicable goal is contractually committed to be available for peak reduction through one or more of the following:</text> <subparagraph id="HCC5E61E0C4D848379C247EB2C14D7766"><enum>(A)</enum><text>Megawatts enrolled in demand response programs.</text> </subparagraph><subparagraph id="H3FEE822E133848158F61C1A6E52EDD9C"><enum>(B)</enum><text>Megawatts subject to the ability of a load-serving entity to call on demand response programs, smart appliances, smart electricity or energy storage devices, distributed generation resources on the entity’s customers’ premises, or other measures directly capable of actively, controllably, reliably, and dynamically reducing peak demand (<quote>dynamic peak management control</quote>).</text> </subparagraph><subparagraph id="H5DAC167B349D4512BF436FE8986247DE"><enum>(C)</enum><text>Megawatts available from distributed dynamic electricity or energy storage under agreement with the owner of that storage.</text> </subparagraph><subparagraph id="HA0F1EFC5395D498BA7465D26BDAD7E5F"><enum>(D)</enum><text>Megawatts committed from dispatchable distributed generation demonstrated to be reliable under peak period conditions and in compliance with air quality regulations.</text> </subparagraph><subparagraph id="HAD935C5267534B21A9220EA64ADA934D"><enum>(E)</enum><text>Megawatts available from smart appliances and equipment with Smart Grid capability available for direct control by the utility through agreement with the customer owning the appliances or equipment or with a third party pursuant to such agreements.</text> </subparagraph><subparagraph id="H99FFFE380E4045E78ABCE1B19464B111"><enum>(F)</enum><text>Megawatts from a demonstrated and assured minimum of distributed solar electric generation capacity in instances where peak period and peak demand conditions are directly related to solar radiation and accompanying heat.</text> </subparagraph></paragraph><paragraph id="H66F524D458D64D6F806C21061CB222F3"><enum>(3)</enum><text>If any of the methods listed in subparagraph (C), (D), or (E) of paragraph (2) are relied upon to meet its peak demand reduction goals, the load-serving entity must demonstrate this capability by operating a test during the applicable calendar year.</text> </paragraph><paragraph id="H4FE243140F9444049F6BAB38C1ACF5F0"><enum>(4)</enum><text>Nothing in this section shall require the publication in peak demand reduction goals or in any peak demand reduction plan of any information that is confidential for competitive or other reasons or that identifies individual customers.</text> </paragraph></subsection><subsection id="H45FF0EE154FF46618FBCF1B26CB06F28"><enum>(e)</enum><header>Existing authority and requirements</header><text>Nothing in this section diminishes or supersedes any authority of a State or political subdivision of a State to adopt or enforce any law or regulation respecting peak demand management, demand response, distributed energy storage, use of distributed generation, or the regulation of load-serving entities. The Commission, in consultation with States and Indian tribes having such peak management, demand response and distributed energy storage programs, shall to the maximum extent practicable, facilitate coordination between the Federal program and such State and tribal programs.</text> </subsection><subsection id="H9652E19873BF4600B6132B7254977173"><enum>(f)</enum><header>Relief</header><text>The Commission may, for good cause, grant relief to load-serving entities from the requirements of this section.</text> </subsection><subsection id="H939E09DFFA1642388A43850B3F6F795F"><enum>(g)</enum><header>Other laws</header><text>Except as provided in subsections (e) and (f), no law or regulation shall relieve any person of any requirement otherwise applicable under this section.</text> </subsection><subsection id="H7C392C58AA24416AAE30DBB09175176D"><enum>(h)</enum><header>Compliance</header><paragraph commented="no" display-inline="yes-display-inline" id="HF44855E65E254EAF9F30DBD451F55F48"><enum>(1)</enum><text>The Commission shall within 1 year after the date of enactment of this Act establish a public website where the Commission will provide information and data demonstrating compliance by States, Indian tribes regional entities, and load-serving entities with this section, including the success of load-serving entities in meeting applicable peak demand reduction goals.</text> </paragraph><paragraph id="HC130CF2F311842699F66B3E7874CDCD4" indent="up1"><enum>(2)</enum><text>The Commission shall, by April 1 of each year beginning in 2012, provide a report to Congress on compliance with this section and success in meeting applicable peak demand reduction goals and, as appropriate, shall make recommendations as to how to increase peak demand reduction efforts.</text> </paragraph><paragraph id="H2599679F1ADF49A89319FEC3EC1A5CAC" indent="up1"><enum>(3)</enum><text>The Commission shall note in each such report any State, political subdivision of a State, or load-serving entity that has failed to comply with this section, or is not a part of any region or group of load-serving entities serving a region that has complied with this section.</text> </paragraph><paragraph id="H7F39C9EDA60641D7B2D7B729192725BF" indent="up1"><enum>(4)</enum><text>The Commission shall have and exercise the authority to take reasonable steps to modify the process of establishing peak demand reduction goals and to accept adjustments to them as appropriate when sought by load-serving entities.</text> </paragraph></subsection><subsection id="HF495B577B89E492B8BB371DC662719C1"><enum>(i)</enum><header>Assistance and funding</header> <paragraph id="H63B096D17D0D4BFCBD5AEC5104ACDD07"><enum>(1)</enum><header>Assistance to States and tribes</header><text display-inline="yes-display-inline">Any costs incurred by States for activities undertaken pursuant to this section shall be supported by the use of emission allowances allocated to the States’ SEED Accounts or to the tribes pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.</text> </paragraph><paragraph id="H9F6D2D5BAD214523912CE96EDCD938BA"><enum>(2)</enum><header>Funding</header><text display-inline="yes-display-inline">There are authorized to be appropriated such sums as may be necessary to the Commission, the Secretary, and the Administrator to carry out the provisions of this section.</text> </paragraph></subsection></section><section id="HC60CFD0E7FB84C49B5618E4A52741C34"><enum>145.</enum><header> Reauthorization of energy efficiency public information program to include Smart Grid information</header> <subsection id="H9378A6293E0B451B916553667A10903C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 134 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15832">42 U.S.C. 15832</external-xref>) is amended as follows:</text> <paragraph id="H93288E2726434951B9E8A91B53B3A0BF"><enum>(1)</enum><text>By amending the section heading to read as follows: <quote><header-in-text level="section" style="OLC">Energy efficiency and Smart Grid public information initiative</header-in-text></quote>.</text> </paragraph><paragraph id="H1C132B9C7BD1472492683C29360411ED"><enum>(2)</enum><text>In paragraph (1) of subsection (a) by striking <quote>reduce energy consumption during the 4-year period beginning on the date of enactment of this Act</quote> and inserting <quote>increase energy efficiency and to adopt Smart Grid technology and practices</quote>.</text> </paragraph><paragraph id="HDFCA84B757024A178FB229BA71BCC29A"><enum>(3)</enum><text>In paragraph (2) of subsection (a) by striking <quote>benefits to consumers of reducing</quote> and inserting <quote>economic and environmental benefits to consumers and the United States of optimizing</quote>.</text> </paragraph><paragraph id="H5711126B954A4AE0A6E31A58136576B2"><enum>(4)</enum><text>In subsection (a) by inserting at the beginning of paragraph (3) <quote>the effect of energy efficiency and Smart Grid capability in reducing energy and electricity prices throughout the economy, together with</quote>.</text> </paragraph><paragraph id="H2A474865F995459CA3C34873B49A20A1"><enum>(5)</enum><text>In subsection (a)(4) by redesignating subparagraph (D) as (E), by striking <quote>and</quote> at the end of subparagraph (C), and by inserting after subparagraph (C) the following:</text> <quoted-block display-inline="no-display-inline" id="H68F76FBDF38A4F2BAB2FB267053DB2A7" style="OLC"> <subparagraph id="HD667DA061793421CBB6AAB954F60501D"><enum>(D)</enum><text display-inline="yes-display-inline">purchasing and utilizing equipment that includes Smart Grid features and capability; and</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HFF3A3F0AA06F42658FFB3C4CD2446D0A"><enum>(6)</enum><text>In subsection (c), by striking <quote>Not later than July 1, 2009,” and inserting, “For each year when appropriations pursuant to the authorization in this section exceed $10,000,000,</quote>.</text> </paragraph><paragraph id="H4409EB95DC1A4498A3E8044AF37C434C"><enum>(7)</enum><text>In subsection (d) by striking <quote>2010</quote> and inserting <quote>2020</quote>.</text> </paragraph><paragraph id="H1F5EF859097C46968BE762860E9808F6"><enum>(8)</enum><text>In subsection (e) by striking <quote>2010</quote> and inserting <quote>2020</quote>.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HEF8F5920781B4BC59E2A13C8102A2E57"><enum>(b)</enum><header>Table of contents</header><text display-inline="yes-display-inline">The item relating to section 134 in the table of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 and following) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H26DC637F8C8345BF9A5990276655E33B" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 134. Energy efficiency and Smart Grid public information initiative.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HC5495A6462F542D0ADCBF1E59946B397"><enum>146.</enum><header>Inclusion of Smart Grid features in appliance rebate program</header> <subsection id="H1196FE6866624A82A54803DAAE0AE914"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 124 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15821">42 U.S.C. 15821</external-xref>) is amended as follows:</text> <paragraph id="HAF28E506921F4FE2ABB9B132C7B0ABDB"><enum>(1)</enum><text>By amending the section heading to read as follows: <quote><header-in-text level="section" style="OLC">Energy efficient and smart appliance rebate program</header-in-text>.</quote>.</text> </paragraph><paragraph id="H984FA43669D04AABA49F23FE587317D9"><enum>(2)</enum><text>By redesignating paragraphs (4) and (5) of subsection (a) as paragraphs (5) and (6), respectively, and inserting after paragraph (3) the following:</text> <quoted-block display-inline="no-display-inline" id="HB1547640D43144C2AC93D7A6FD1F343B" style="OLC"> <paragraph id="H46E4666DD51B4DDEB405B4873EA47360"><enum>(4)</enum><header>Smart appliance</header><text display-inline="yes-display-inline">The term <quote>smart appliance</quote> means a product that the Administrator of the Environmental Protection Agency or the Secretary of Energy has determined qualifies for such a designation in the Energy Star program pursuant to section 142 of the <short-title>American Clean Energy and Security Act of 2009</short-title>, or that the Secretary or the Administrator has separately determined includes the relevant Smart Grid capabilities listed in section 1301 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/15/17381">15 U.S.C. 17381</external-xref>).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HBC8DC935FD074156B25CD92B29BC3BFF"><enum>(3)</enum><text>In subsection (b)(1) by inserting <quote>and smart</quote> after <quote>efficient</quote> and by inserting after <quote>products</quote> the first place it appears <quote>, including products designated as being smart appliances</quote>.</text> </paragraph><paragraph id="H82CCEF28E62A457494A49ABD67010716"><enum>(4)</enum><text>In subsection (b)(3), by inserting <quote>the administration of</quote> after <quote>carry out</quote>.</text> </paragraph><paragraph id="HBDFE8263C04343F39C17FA18092138F3"><enum>(5)</enum><text>In subsection (d), by inserting <quote>the administration of</quote> after <quote>carrying out</quote> and by inserting <quote>, and up to 100 percent of the value of the rebates provided pursuant to this section</quote> before the period at the end.</text> </paragraph><paragraph id="HE2B16993D2F5404EACC1FF29BA75ED9B"><enum>(6)</enum><text>In subsection (e)(3), by inserting <quote>, with separate consideration as applicable if the product is also a smart appliance,</quote> after <quote>Energy Star product</quote> the first place it appears and by inserting <quote>or smart appliance</quote> before the period at the end.</text> </paragraph><paragraph id="HD19B39C7393D44B1B18D567E6B9F0736"><enum>(7)</enum><text>In subsection (f), by striking <quote>$50,000,000</quote> through the period at the end and inserting <quote>$100,000,000 for each fiscal year from 2010 through 2015.</quote>.</text> </paragraph></subsection><subsection id="H1493B093D4B940DA926F84E992A43103"><enum>(b)</enum><header>Table of contents</header><text display-inline="yes-display-inline">The item relating to section 124 in the table of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 and following) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HC5B5B3D403D44F13A279431A90219B07" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 124. Energy efficient and smart appliance rebate program.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle><subtitle id="HFDC5CD08A129472DBBE4C375190AEFBB"><enum>F</enum><header>Transmission Planning</header> <section id="H650CA37B74E74FD79E2B6192A65E6927"><enum>151.</enum><header>Transmission planning and siting</header> <subsection id="H48E24DEDC6994A7C9AE8099D1BDA4E3D"><enum>(a)</enum><header>In general</header><text>Section 216 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824p">16 U.S.C. 824p</external-xref>) is amended as follows:</text> <paragraph id="H5C4562F025DF4250AF1B1A21BBC28C74"><enum>(1)</enum><text>In subsection (b), in paragraph (5), by striking <quote>; and</quote> and inserting a semicolon, in paragraph (6) by striking the period and inserting <quote>; and</quote> and by adding the following at the end thereof:</text> <quoted-block id="HD39D7F7351EA47F8ACCA196BC4188B5D" style="OLC"> <paragraph id="HB1F191EC6D2A4751BDC084DF23D21C3C"><enum>(7)</enum><text>the facility is interstate in nature or is an intrastate segment integral to a proposed interstate facility;</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HD5434B5DA1CA439381112360A4078CA1"><enum>(2)</enum><text>In subsection (k), by inserting at the end the following: <quote>Subsections (a), (b), (c), and (h) of this section shall not apply in the Western interconnection.</quote>.</text> </paragraph><paragraph id="H18C10B7F4F474E958A8971021D636769"><enum>(3)</enum><text>In subsections (d) and (e), by striking <quote>subsection (b)</quote> in each place and inserting <quote>subsection (b) or section 216B</quote>, and by striking <quote>permit</quote> and inserting <quote>permit or certificate</quote> in each place it appears.</text> </paragraph></subsection><subsection id="H5A1FFD7760CA48B493AAD110862DEC88"><enum>(b)</enum><header>New sections</header><text>The Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824p">16 U.S.C. 824p</external-xref>) is amended by inserting the following new sections after section 216:</text> <quoted-block display-inline="no-display-inline" id="HE4DE6B72CCD4487281AA443BE5BAD73E" style="OLC"> <section id="HB2ADE5232EB849669DF4FDD8CA9E728A"><enum>216A.</enum><header>Transmission planning</header> <subsection id="H26B1207CA57C4E14992FF5BC4C6EA711"><enum>(a)</enum><header>Federal policy for transmission planning</header> <paragraph id="H522525091EDF4FB095F1A37DA22039AD"><enum>(1)</enum><header>Objectives</header><text>It is the policy of the United States that regional electric grid planning should facilitate the deployment of renewable and other zero-carbon and low-carbon energy sources for generating electricity to reduce greenhouse gas emissions while ensuring reliability, reducing congestion, ensuring cyber-security, minimizing environmental harm, and providing for cost-effective electricity services throughout the United States, in addition to serving the objectives stated in section 217(b)(4).</text> </paragraph><paragraph id="H4EF995158FFF4588B12824FA7B82ACE9"><enum>(2)</enum><header>Options</header><text>In addition to the policy under paragraph (1), it is the policy of the United States that regional electric grid planning to meet these objectives should result from an open, inclusive and transparent process, taking into account all significant demand-side and supply-side options, including energy efficiency, distributed generation, renewable energy and zero-carbon electricity generation technologies, smart-grid technologies and practices, demand response, electricity storage, voltage regulation technologies, high capacity conductors with at least 25 percent greater efficiency than traditional ACSR (aluminum stranded conductors steel reinforced) conductors, superconductor technologies, underground transmission technologies, and new conventional electric transmission capacity and corridors.</text> </paragraph></subsection><subsection id="H83C0EBB6D4E949BA9206043DF82738D4"><enum>(b)</enum><header>Planning</header><text></text> <paragraph id="HC573D9EBC9EB404E849FB4B283A1F520"><enum>(1)</enum><header>Planning principles</header><text>Not later than 1 year after the date of enactment of this section, the Commission shall adopt, after notice and opportunity for comment, national electricity grid planning principles derived from the Federal policy established under subsection (a) to be applied in ongoing and future transmission planning that may implicate interstate transmission of electricity.</text> </paragraph><paragraph id="HDE516FD998194E418800BF27379FA8EA"><enum>(2)</enum><header>Regional planning entities</header><text>Not later than 3 months after the date of adoption by the Commission of national electricity grid planning principles pursuant to paragraph (1), entities that conduct or may conduct transmission planning pursuant to State, tribal, or Federal law or regulation, including States, Indian tribes, entities designated by States and Indian tribes, Federal Power Marketing Administrations, transmission providers, operators and owners, regional organizations, and electric utilities, and that are willing to incorporate the national electricity grid planning principles adopted by the Commission in their electric grid planning, shall identify themselves and the regions for which they propose to develop plans to the Commission.</text> </paragraph><paragraph id="H45388BBBB87E4516A8ACAEF3F2D2F365"><enum>(3)</enum><header>Coordination of regional planning entities</header><text>The Commission shall encourage regional planning entities described under paragraph (2) to cooperate and coordinate across regions and to harmonize regional electric grid planning with planning in adjacent or overlapping jurisdictions to the maximum extent feasible. The Commission shall work with States, Indian tribes, Federal land management agencies, State energy, environment, natural resources, and land management agencies and commissions, Federal power marketing administrations, electric utilities, transmission providers, load-serving entities, transmission operators, regional transmission organizations, independent system operators, and other organizations to resolve any conflict or competition among proposed planning entities in order to build consensus and promote the Federal policy established under subsection (a). The Commission shall seek to ensure that planning that is consistent with the national electricity grid planning principles adopted pursuant to paragraph (1) is conducted in all regions of the United States and the territories, but in a manner that, to the extent feasible, avoids uncoordinated planning by more than one planning entity for the same area.</text> </paragraph><paragraph id="H4472C5B1CA6746DF9A3EE39F80C90107"><enum>(4)</enum><header>Relation to existing planning policy</header><text>In implementing the Federal policy established under subsection (a), the Commission shall—</text> <subparagraph id="H95F528BF34DF4E019441EA0880212918"><enum>(A)</enum><text>incorporate and coordinate with any ongoing planning efforts undertaken pursuant to section 217 and Commission Order No. 890;</text> </subparagraph><subparagraph id="H52F2272AE037476EB4D542497190EC1D"><enum>(B)</enum><text>coordinate with the Secretary of Energy in providing to the regional planning entities an annual summary of national energy policy priorities and goals;</text> </subparagraph><subparagraph id="H8A3D05A6848F4DB6BA221F4956D78D63"><enum>(C)</enum><text>coordinate with corridor designation and planning functions carried out pursuant to section 216 by the Secretary of Energy, who shall provide financial support from available funds to support the purposes of this section; and</text> </subparagraph><subparagraph id="H953E69400852408F9EAB3963EE9BA572"><enum>(D)</enum><text>coordinate with the Secretaries of the Interior and Agriculture and Indian tribes in carrying out the Secretaries’ or tribal governments’ existing responsibilities for the planning or siting of transmission facilities on Federal or tribal lands, consistent with law, policy, and regulations relating to the management of federal public lands.</text> </subparagraph></paragraph><paragraph id="H5B2AF399DBBA45438929B210DF113554"><enum>(5)</enum><header>Assistance</header><text></text> <subparagraph id="HFFBD0B9043594A2292FA3B67C4027174"><enum>(A)</enum><header>In general</header><text>The Commission shall provide support to and may participate if invited to do so in the regional grid planning processes conducted by regional planning entities. The Secretary of Energy and the Commission may provide planning resources and assistance as required or as requested by regional planning entities, including system data, cost information, system analysis, technical expertise, modeling support, dispute resolution services, and other assistance to regional planning entities, as appropriate.</text> </subparagraph><subparagraph id="H77EB70910F2B4C698AC90736FA45C8CA"><enum>(B)</enum><header>Authorization</header><text>There are authorized to be appropriated such sums as may be necessary to carry out this paragraph.</text> </subparagraph></paragraph><paragraph id="H29BB4A34BE3F4C93A056912DD696ECFC"><enum>(6)</enum><header>Conflict resolution</header><text>In the event that regional grid plans conflict, the Commission shall assist the regional planning entities in resolving such conflicts in order to achieve the objectives of the Federal policy established under subsection (a).</text> </paragraph><paragraph id="H1CF8838A033B4BB299C57F3C3339099C"><enum>(7)</enum><header>Submission of plans</header><text>The Commission shall require regional planning entities to submit initial regional electric grid plans to the Commission not later than 18 months after the date the Commission promulgates national electricity grid planning principles pursuant to paragraph (1), with updates to such plans not less than every 3 years thereafter. The Commission shall review such plans for consistency with the national grid planning principles and may return a plan to one or more planning entities for further consideration, along with the Commission’s own recommendations for resolution of any conflict or for improvement.</text> </paragraph><paragraph id="H4D3D61429ABD406394BBFC1CA09E578C"><enum>(8)</enum><header>Integration of plans</header><text>Regional electric grid plans should, in general, be developed from sub-regional requirements and plans, including planning input reflecting individual utility service areas. Regional plans may then in turn be combined into larger regional plans, up to interconnection-wide and national plans, as appropriate and necessary as determined by the Commission. In no case shall a multi-regional plan impose inclusion of a facility on a region that has submitted a valid plan that, after efforts to resolve the conflict, does not include such facility. To the extent practicable, all plans submitted to the Commission shall be public documents and available on the Commission’s Web site.</text> </paragraph><paragraph id="H399AC92F01D84F0A8A90C167355B0BE4"><enum>(9)</enum><header>Multi-regional meetings</header><text>As regional grid plans are submitted to the Commission, the Commission may convene multi-regional meetings to discuss regional grid plan consistency and integration, including requirements for multi-regional projects, and to resolve any conflicts that emerge from such multi-regional projects. The Commission shall provide its recommendations for eliminating any inter-regional conflicts.</text> </paragraph><paragraph id="H7E39630A4EB64935A795FD4444D5F65F"><enum>(10)</enum><header>Report to congress</header><text>Not later than 3 years after the date of enactment of this section and each 3 years thereafter, the Commission shall provide a report to Congress containing the results of the regional grid planning process, including summaries of the adopted regional plans and the extent to which the Federal policy objectives in subsection (a) have been successfully achieved. The Commission shall provide an electronic version of its report on its website with links to all regional and sub-regional plans taken into account. The Commission shall note and provide its recommended resolution for any conflicts not resolved during the planning process. The Commission shall make any recommendations to Congress on the appropriate Federal role or support required to address the needs of the electric grid, including recommendations for addressing any needs that are beyond the reach of existing State, tribal, and Federal authority.</text> </paragraph></subsection></section><section id="H4C1A4071CE39418987C63374A02E5C79"><enum>216B.</enum><header>Siting and construction in the Western Interconnection</header> <subsection id="H9BAD9DA997454A658FEB9F8538C73BE2"><enum>(a)</enum><header>Applicability</header><text>This section applies only to States located in the Western Interconnection and does not apply to States located in the Eastern Interconnection, to the States of Alaska or Hawaii, or to ERCOT.</text> </subsection><subsection id="H366129B9891F45869619E509F7AA91D4"><enum>(b)</enum><header>Certificate of public convenience and necessity</header><text>The Commission may, after notice and opportunity for hearing, issue a certificate of public convenience and necessity for the construction or modification of a transmission facility if the Commission finds that—</text> <paragraph id="H5F5BDF0AAF184B3F90BCA6BC8E097A76"><enum>(1)</enum><text>the facility was identified and included in one or more relevant and final regional or interconnection-wide electric grid plans submitted to the Commission pursuant to subsection (b) of 216A;</text> </paragraph><paragraph id="H802B58EE160F46FDA78D6735BC298831"><enum>(2)</enum><text>any conflict among regional electric grid plans concerning the need for the facility was resolved;</text> </paragraph><paragraph id="H8C032437114A4CAB9BA639137E3D11A2"><enum>(3)</enum><text>such relevant regional electric grid plans are consistent with the national grid planning principles adopted by the Commission pursuant to subsection (b);</text> </paragraph><paragraph id="H65F879AC6CA34CCC8214D00F55E486FD"><enum>(4)</enum><text>the facility was identified as needed in significant measure to meet demand for renewable energy in such plans;</text> </paragraph><paragraph id="H57F93454E276471FA72D2C5E6C79C505"><enum>(5)</enum><text>the facility is a multistate facility;</text> </paragraph><paragraph id="H433285C279C0498C935DD380023590D4"><enum>(6)</enum><text>the developer of such facility filed a complete application seeking approval for the siting of the facility with a state commission or other entity that has authority to approve the siting of the facility;</text> </paragraph><paragraph id="H4FCF4D4E116E43C98235CAA847B82955"><enum>(7)</enum><text>a State commission or other entity that has authority to approve the siting of the facility—</text> <subparagraph id="HE951C6F401264E9B8E428DF1399F8D10"><enum>(A)</enum><text>did not issue a decision on an application seeking approval for the siting of the facility within 1 year after the date the applicant submitted a completed application to the State;</text> </subparagraph><subparagraph id="H7D0F0316A2E74DC996A69BF36A7EECB8"><enum>(B)</enum><text>denied a complete application seeking approval for the siting of the facility; or</text> </subparagraph><subparagraph id="HF9CA3E4774774EAE940D6C1CC4677B93"><enum>(C)</enum><text>authorized the siting of the facility subject to conditions that unreasonably interfere with the development of the facility; and</text> </subparagraph></paragraph><paragraph id="H80D23BBC1F6A4A5BBAB622606623FD85"><enum>(8)</enum><text>the siting of the facility can be accomplished in a manner consistent with the Federal policy established in subsection (a) of section 216A and the national grid planning principles adopted by the Commission pursuant to subsection (b) of section 216A.</text> </paragraph></subsection><subsection id="H7220911F35134F66B8B5324F9ADF2D4D"><enum>(c)</enum><header>State recommendations on resource protection</header><text>In issuing a final certificate of public convenience and necessity pursuant to subsection (b), the Commission shall—</text> <paragraph id="H3307BD47FE1E439BB34CA0EA62731DD3"><enum>(1)</enum><text>consider any siting constraints and mitigation measures based on habitat protection, health and safety considerations, environmental considerations, or cultural site protection identified by relevant State or local authorities; and</text> </paragraph><paragraph id="HD9E155F6A8DB48D3AC72903EC1711050"><enum>(2)</enum><text>incorporate those identified siting constraints or mitigation measures, including recommendations related to project routing, as conditions in the final certificate of public convenience and necessity, or if the Commission determines that a recommended siting constraint or mitigation measure is infeasible, excessively costly, or inconsistent with the Federal policy established in subsection (a) of section 216A or the national grid planning principles adopted by the Commission pursuant to subsection (b) of section 216A—</text> <subparagraph id="H17122601FA4F43A4B79B54426A049EBC"><enum>(A)</enum><text>consult with State regulatory agencies to seek to resolve the issue;</text> </subparagraph><subparagraph id="HDCE43B3FA11A450180ED3CFC6C22C932"><enum>(B)</enum><text display-inline="yes-display-inline">incorporate as conditions on the certificate such recommended siting constraints or mitigation measures as are determined to be appropriate by the Commission, based on consultation by the Commission with State regulatory agencies, the Federal policy established in subsection (a) of section 216A and the national grid planning principles adopted by the Commission pursuant to subsection (b)of section 216A, and the record before the Commission; and</text> </subparagraph><subparagraph id="H665B4ACF700642CA9F6BADC9858D749E"><enum>(C)</enum><text>if, after consultation, the Commission does not adopt in whole or in part a recommendation of an agency, publish a finding that the adoption of the recommendation is infeasible, not cost effective, or inconsistent with this section or other applicable provisions of law.</text> </subparagraph></paragraph></subsection><subsection id="H3DC0F0C3C6FC4F83A699D5FE2E509264"><enum>(d)</enum><header>Certificate applications</header><paragraph commented="no" display-inline="yes-display-inline" id="H9A7DEE4A4BCC4DE1A98F8030E1A99B77"><enum>(1)</enum><text>An application for a preliminary or final certificate of public convenience and necessity under this subsection shall be made in writing to the Commission.</text> </paragraph><paragraph id="H90754AA3219F4E7F88462F3958E2A8F1" indent="up1"><enum>(2)</enum><text>The Commission shall issue rules specifying—</text> <subparagraph id="HB65099F18B9D4CDD985DDC58BCEC2FE1"><enum>(A)</enum><text>the form of the application;</text> </subparagraph><subparagraph id="H50B2DA79ECFB448CA6936BB190FD0F07"><enum>(B)</enum><text>the information to be contained in the application; and</text> </subparagraph><subparagraph id="H2ED35079036D4ED9B65CED1FA0A85310"><enum>(C)</enum><text>the manner of service of notice of the application on interested persons.</text> </subparagraph></paragraph></subsection><subsection id="HCA6004D81E0046AF992277A97D7ABF2F"><enum>(e)</enum><header>Coordination of Federal authorizations for transmission facilities</header> <paragraph id="HC3E9898611CC42EF86D8C5656B26119C"><enum>(1)</enum><text>In this subsection, the term <quote>Federal authorization</quote> shall have the same meaning and include the same actions as in section 216(h).</text> </paragraph><paragraph id="H3CAB9134FA754763A625D53919CD4701"><enum>(2)</enum><text>The Federal Energy Regulatory Commission shall act as the lead agency for purposes of coordinating all applicable Federal authorizations and related environmental reviews of the facility, provided, however, that to the extent the facility is proposed to be sited on Federal lands, the Department of the Interior will assume such lead-agency duties as agreed between the Commission and the Department of Interior.</text> </paragraph><paragraph id="H069DFB8F1DD244B2A7EC8E4F2194CF9E"><enum>(3)</enum><text>To the maximum extent practicable under applicable Federal law, the Commission, and to the extent agreed, the Secretary of Interior, shall coordinate the Federal authorization and review process under this subsection with any Indian tribes, multistate entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the facility, to ensure timely and efficient review and permit decisions.</text> </paragraph><paragraph id="H02083A2C414A4300949CC49602D90299"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H326641A588A54CB4A73652710A8F5FD7"><enum>(A)</enum><text>As head of the lead agency, the Chairman of the Commission, in consultation with the Secretary of Interior and with those entities referred to in paragraph (3) that are willing to coordinate their own separate permitting and environmental reviews with the Federal authorization and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of, and Federal authorization decisions relating to, the proposed facility.</text> </subparagraph><subparagraph id="H9553675CEF5B46B6B72B2EB12C74E768" indent="up1"><enum>(B)</enum><text>The Chairman of the Commission, or the Secretary of Interior, as agreed under paragraph (2), shall ensure that, once an application has been submitted with such data as the lead agency considers necessary, all permit decisions and related environmental reviews under all applicable Federal laws shall be completed—</text> <clause id="HB28A42B6056540DEA06042B23CDD00B6"><enum>(i)</enum><text>within 1 year; or</text> </clause><clause id="H4D92610B98B2409DB703528DC79FC09C"><enum>(ii)</enum><text>if a requirement of another provision of Federal law does not permit compliance with clause (i), as soon thereafter as is practicable.</text> </clause></subparagraph><subparagraph id="H83F354FD3A774916B716FFF12BEF1726" indent="up1"><enum>(C)</enum><text>The Commission shall provide an expeditious pre-application mechanism for prospective applicants to confer with the agencies involved to have each such agency determine and communicate to the prospective applicant not later than 60 days after the prospective applicant submits a request for such information concerning—</text> <clause id="HFDAE95D57E334033BC9830A12A3361BC"><enum>(i)</enum><text>the likelihood of approval for a potential facility; and</text> </clause><clause id="H3E6A9FE40FA0433F884D815FE1108646"><enum>(ii)</enum><text>key issues of concern to the agencies and public.</text> </clause></subparagraph></paragraph><paragraph id="H7DFC1CAA020E4B4996CF12C309680B7F"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HE5E9196138244FC6A54D83386B0AFA46"><enum>(A)</enum><text>As lead agency head, the Chairman of the Commission, in consultation with the affected agencies, shall prepare a single environmental review document, which shall be used as the basis for all decisions on the proposed project under Federal law.</text> </subparagraph><subparagraph id="H4DFD1B5E3C21497391417C1D4B8374B6" indent="up1"><enum>(B)</enum><text>The Chairman of the Commission and the heads of other agencies shall streamline the review and permitting of transmission within corridors designated under section 503 of the Federal Land Policy and Management Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1763">43 U.S.C. 1763</external-xref>) by fully taking into account prior analyses and decisions relating to the corridors.</text> </subparagraph><subparagraph id="H4EF809ABC60B454593246EBE03D1C51D" indent="up1"><enum>(C)</enum><text>The document shall include consideration by the relevant agencies of any applicable criteria or other matters as required under applicable law.</text> </subparagraph></paragraph><paragraph id="H61E3E399342C4C4ABF871B120E3E8A15"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H0D0579A42FF944F5A0F6F4E1EC937DCD"><enum>(A)</enum><text>If any agency has denied a Federal authorization required for a transmission facility, or has failed to act by the deadline established by the Commission pursuant to this section for deciding whether to issue the authorization, the applicant or any State in which the facility would be located may file an appeal with the President, who shall, in consultation with the affected agency, review the denial or failure to take action on the pending application.</text> </subparagraph><subparagraph id="HD0A3A03997674410A6C9524FAD34A758" indent="up1"><enum>(B)</enum><text>Based on the overall record and in consultation with the affected agency, the President may—</text> <clause id="H01729DE342274ABF9D9C7D74E9FB1AB9"><enum>(i)</enum><text>issue the necessary authorization with any appropriate conditions; or</text> </clause><clause id="HEEC8343C7C954A73A533D3E29DF359ED"><enum>(ii)</enum><text>deny the application.</text> </clause></subparagraph><subparagraph id="HAE48DFB9E81A453690CA030AAB7762FE" indent="up1"><enum>(C)</enum><text>The President shall issue a decision not later than 90 days after the date of the filing of the appeal.</text> </subparagraph><subparagraph id="HFA8DEE4FD13C4A69B8EA01586A695F34" indent="up1"><enum>(D)</enum><text>In making a decision under this paragraph, the President shall comply with applicable requirements of Federal law, including any requirements of—</text> <clause id="H2D2F49D24C2842A18732B8182CC087B1"><enum>(i)</enum><text>the National Forest Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/16/472a">16 U.S.C. 472a et seq.</external-xref>);</text> </clause><clause id="H7D81F7B83B3A47E397DCECB7FA6AC85A"><enum>(ii)</enum><text>the Endangered Species Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/16/1531">16 U.S.C. 1531 et seq.</external-xref>);</text> </clause><clause id="HEF549B2B2BDB407B9FE0DA503A8C9AEF"><enum>(iii)</enum><text>the Federal Water Pollution Control Act (<external-xref legal-doc="usc" parsable-cite="usc/33/1251">33 U.S.C. 1251 et seq.</external-xref>);</text> </clause><clause id="H1C9178581679446382E4E7EB8271CF84"><enum>(iv)</enum><text>the National Environmental Policy Act of 1969 (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>); and</text> </clause><clause id="HAB1A06601C72457BAEE5B476F4A56B3B"><enum>(v)</enum><text>the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1701">43 U.S.C. 1701 et seq.</external-xref>).</text> </clause></subparagraph></paragraph><paragraph id="HCE0D88876E7F4CBAADF25A487865DC13"><enum>(7)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H9BF54CAE3FF84E97B8E9E3E8AE141622"><enum>(A)</enum><text>Not later than 18 months after August 8, 2005, the Commission or, as requested, the Secretary or Interior, shall issue any regulations necessary to implement this subsection.</text> </subparagraph><subparagraph id="H16445699EA9C417A855324D357373EF8" indent="up1"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H1DE8C92008484453998CEF39061C6230"><enum>(i)</enum><text>Not later than 1 year after August 8, 2005, the Commission, the Secretary of Interior, and the heads of all Federal agencies with authority to issue Federal authorizations shall enter into a memorandum of understanding to ensure the timely and coordinated review and permitting of electricity transmission facilities.</text> </clause><clause id="HB6A8629D7A784230B15357AEFB89C4A1" indent="up1"><enum>(ii)</enum><text>Interested Indian tribes, multistate entities, and State agencies may enter the memorandum of understanding.</text> </clause></subparagraph><subparagraph id="H2C330A74976E477890A74991238D2A85" indent="up1"><enum>(C)</enum><text>The head of each Federal agency with authority to issue a Federal authorization shall designate a senior official responsible for, and dedicate sufficient other staff and resources to ensure, full implementation of the regulations and memorandum required under this paragraph.</text> </subparagraph></paragraph><paragraph id="H934CE7D1FC4A4BD2AE9A71F827BEA620"><enum>(8)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HE624B1087621479E8751DA7D1790A417"><enum>(A)</enum><text>Each Federal land use authorization for an electricity transmission facility shall be issued—</text> <clause id="H7859E2F4E58D4D1CADCA9B6F7C865A36" indent="up1"><enum>(i)</enum><text>for a duration, as determined by the Secretary of Interior, commensurate with the anticipated use of the facility; and</text> </clause><clause id="H228C86D739574707A85FDD20490E3495" indent="up1"><enum>(ii)</enum><text>with appropriate authority to manage the right-of-way for reliability and environmental protection.</text> </clause></subparagraph><subparagraph id="HE8CC25E2D88541FDA6B36FE7D13255C1" indent="up1"><enum>(B)</enum><text>On the expiration of the authorization (including an authorization issued before August 8, 2005), the authorization shall be reviewed for renewal taking fully into account reliance on such electricity infrastructure, recognizing the importance of the authorization for public health, safety, and economic welfare and as a legitimate use of Federal land.</text> </subparagraph></paragraph><paragraph id="H9EE35277DB8546A3ABF34FEB94AEDCB0"><enum>(9)</enum><text>In exercising the responsibilities under this section, the Commission shall consult regularly with—</text> <subparagraph id="HFDFE4F3FCDBC416F92645F7B63F97374"><enum>(A)</enum><text>electric reliability organizations (including related regional entities) approved by the Commission; and</text> </subparagraph><subparagraph id="HF67E2766B42949C2BC6B7A06FE0CE7B0"><enum>(B)</enum><text>Transmission Organizations approved by the Commission.</text> </subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H790F5D6F6D9D4C7DA31A10955CCB3551"><enum>152.</enum><header>Net metering for Federal agencies</header> <subsection id="H42DE02FF4BBD44DD82A2D38BFE465FEA"><enum>(a)</enum><header>Standard</header><text>Subsection (b) of section 113 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2623">16 U.S.C. 2623</external-xref>) is amended by adding the following new paragraph at the end thereof:</text> <quoted-block display-inline="no-display-inline" id="HFFECD464848B44138709D4C3A93B4D88" style="OLC"> <paragraph id="HA0F2D6390BA14099AADF977EE2C8ECDB"><enum>(6)</enum><header>Net metering for Federal agencies</header><text display-inline="yes-display-inline">Each electric utility shall offer to arrange (either directly or through a third party) to make interconnection and net metering available to Federal Government agencies, offices, or facilities in accordance with the requirements of section 115(j). The standard under this paragraph shall apply only to electric utilities that sold over 4,000,000 megawatt hours of electricity in the preceding year to the ultimate consumers thereof. In the case of a standard under this paragraph, a period of 1 year after the date of the enactment of this section shall be substituted for the 2-year period referred to in other provisions of this section.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H4B0BB64E457542418532326B2F3504B5"><enum>(b)</enum><header>Special rules</header><text display-inline="yes-display-inline">Section 115 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2625">16 U.S.C. 2625</external-xref>) is amended by adding the following new subsection at the end thereof:</text> <quoted-block display-inline="no-display-inline" id="HFA81DF072AC2471B92F7BF71ADE2352A" style="OLC"> <subsection id="H8826674AD4684DE38811FD2EE1AD2E8D"><enum>(j)</enum><header>Net metering for Federal agencies</header><paragraph commented="no" display-inline="yes-display-inline" id="HA772026B85D640FE95D8F7692B3863B5"><enum>(1)</enum><text>The standard under paragraph (6) of section 113(b) shall require that rates and charges and contract terms and conditions for the sale of electric energy to the Federal Government or agency shall be the same as the rates and charges and contract terms and conditions that would be applicable if the agency did not own or operate a qualified generation unit and use a net metering system.</text> </paragraph><paragraph id="H76199DA17EFA4CEF9907B4385B8A0670" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HB8F3988187D3430A810E63E8D51B35C8"><enum>(A)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that each electric utility shall arrange to provide to the Government office or agency that qualifies for net metering an electrical energy meter capable of net metering and measuring, to the maximum extent practicable, the flow of electricity to or from the customer, using a single meter and single register, the cost of which shall be recovered from the customer.</text> </subparagraph><subparagraph id="H194DC370BABE41B39C41378933364EBF" indent="up1"><enum>(B)</enum><text>In a case in which it is not practicable to provide a meter under subparagraph (A), the utility (either directly or through a third party) shall, at the expense of the utility install 1 or more of those electric energy meters.</text> </subparagraph></paragraph><paragraph id="H9D63D192F4A1414EB5B0E7AA75286E13" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H4E60DDF74D744048B6A0AD1055124516"><enum>(A)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that each electric utility shall calculate the electric energy consumption for the Government office or agency using a net metering system that meets the requirements of this subsection and paragraph (6) of section 113(b) and shall measure the net electricity produced or consumed during the billing period using the metering installed in accordance with this paragraph.</text> </subparagraph><subparagraph id="HB72FEFECC2B641EEB1FAF9F3DB386867" indent="up1"><enum>(B)</enum><text>If the electricity supplied by the retail electric supplier exceeds the electricity generated by the Government office or agency during the billing period, the Government office or agency shall be billed for the net electric energy supplied by the retail electric supplier in accordance with normal billing practices.</text> </subparagraph><subparagraph id="HB9AB3F864C344076BFB1B3CB221C7B66" indent="up1"><enum>(C)</enum><text>If electric energy generated by the Government office or agency exceeds the electric energy supplied by the retail electric supplier during the billing period, the Government office or agency shall be billed for the appropriate customer charges for that billing period and credited for the excess electric energy generated during the billing period, with the credit appearing as a kilowatt-hour credit on the bill for the following billing period.</text> </subparagraph><subparagraph id="H6E818EE740AB494E89D6858D39644434" indent="up1"><enum>(D)</enum><text>Any kilowatt-hour credits provided to the Government office or agency as provided in this subsection shall be applied to the Government office or agency electric energy consumption on the following billing period bill (except for a billing period that ends in the next calendar year). At the beginning of each calendar year, any unused kilowatt-hour credits remaining from the preceding year will carry over to the new year.</text> </subparagraph></paragraph><paragraph id="HB08F00E200FB42099FC0E74D471180DE" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that each electric utility shall offer a meter and retail billing arrangement that has time-differentiated rates. The kilowatt-hour credit shall be based on the ratio representing the difference in retail rates for each time-of-use rate, or the credits shall be reflected on the bill of the Government office or agency as a monetary credit reflecting retail rates at the time of generation of the electric energy by the customer-generator.</text> </paragraph><paragraph id="H20C18651D9C849E9B87257AFDC768783" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that the qualified generation unit, interconnection standards, and net metering system used by the Government office or agency shall meet all applicable safety and performance and reliability standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, and the American National Standards Institute.</text> </paragraph><paragraph id="H7EE70FBA9ED74793899846E777CA2E05" indent="up1"><enum>(6)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that electric utilities shall not make additional charges, including standby charges, for equipment or services for safety or performance that are in addition to those necessary to meet the other standards and requirements of this subsection and paragraph (6) of section 113(b).</text> </paragraph><paragraph id="H97B413466CDC4FDA959283566AC1C7D2" indent="up1"><enum>(7)</enum><text display-inline="yes-display-inline">For purposes of this subsection and paragraph (6) of section 113(b):</text> <subparagraph id="HBA8895BF451D48EE9B9757E393025BB8"><enum>(A)</enum><text>The term ‘Government’ means any office, facility, or agency of the Federal Government.</text> </subparagraph><subparagraph id="H97040EDB6C144656A1C62B3AC7F0468D"><enum>(B)</enum><text>The term ‘customer-generator’ means the owner or operator of a electricity generation unit.</text> </subparagraph><subparagraph id="HE81DF08EC4F843F7B964C726CA539374"><enum>(C)</enum><text>The term ‘electric generation unit’ means any renewable electric generation unit that is owned, operated, or sited on a Federal Government facility.</text> </subparagraph><subparagraph id="H6AB64172E609426E90A28A6AF10D66BB"><enum>(D)</enum><text>The term ‘net metering’ means the process of—</text> <clause id="H955FA6EE798149A4A5408C07D7247B3E"><enum>(i)</enum><text>measuring the difference between the electricity supplied to a customer-generator and the electricity generated by the customer-generator that is delivered to a utility at the same point of interconnection during an applicable billing period; and</text> </clause><clause id="HA7B73ACD2D29448790FED4FBC361A7F4"><enum>(ii)</enum><text>providing an energy credit to the customer-generator in the form of a kilowatt-hour credit for each kilowatt-hour of electricity produced by the customer-generator from an electric generation unit.</text> </clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC03C40F318764FC9B45FF2561BA571A2"><enum>(c)</enum><header>Savings provision</header><text>If this section or a portion of this section is determined to be invalid or unenforceable, that shall not affect the validity or enforceability of any other provision of this Act.</text> </subsection></section><section id="HBD8AEDCACC7B4C6D9BE06A2B69480FB9"><enum>153.</enum><header>Support for qualified advanced electric transmission manufacturing plants, qualified high efficiency transmission property, and qualified advanced electric transmission property</header> <subsection id="H6F894067CAF3462FA756DC484C63554B"><enum>(a)</enum><header>Loan Guarantees Prior to September 30, 2011</header><text>Section 1705(a) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16515">42 U.S.C. 16515(a)</external-xref>), as added by section 406 of the American Recovery and Reinvestment Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/109/58">Public Law 109–58</external-xref>; 119 Stat. 594) is amended by adding the following new paragraph at the end thereof:</text> <quoted-block id="H2B99C1F04FA6461994DC7073C27A0C5E" style="OLC"> <paragraph id="H04104027C503453884FBC06CD455C21E"><enum>(5)</enum><text>The development, construction, acquisition, retrofitting, or engineering integration of a qualified advanced electric transmission manufacturing plant or the construction of a qualified high efficiency transmission property or a qualified advanced electric transmission property (whether by construction of new facilities or the modification of existing facilities). For purposes of this paragraph:</text> <subparagraph id="HB335CC6F3E144124BEEA5DDA0D9316FE"><enum>(A)</enum><text>The term <quote>qualified advanced electric transmission property</quote> means any high voltage electric transmission cable, related substation, converter station, or other integrated facility that—</text> <clause id="HC376F8552A264E1FB7BB3CD866C26A3A"><enum>(i)</enum><text>utilizes advanced ultra low resistance superconductive material or other advanced technology that has been determined by the Secretary of Energy as—</text> <subclause id="HDCD93A434D774D07A1EFF6E900099F3F"><enum>(I)</enum><text>reasonably likely to become commercially viable within 10 years after the date of enactment of this paragraph;</text> </subclause><subclause id="HFDDFBB0AA44F4955973ECF3D1AEC0EB4"><enum>(II)</enum><text>capable of reliably transmitting at least 5 gigawatts of high-voltage electric energy for distances greater than 300 miles with energy losses not exceeding 3 percent of the total power transported; and</text> </subclause><subclause id="HAF7323D1AB494E41955112AAB98E916C"><enum>(III)</enum><text>not creating an electromagnetic field;</text> </subclause></clause><clause id="H97EB3411C1A2410EAB9A57684AA19ED2"><enum>(ii)</enum><text>has been determined by an appropriate energy regulatory body, upon application, to be in the public interest and thereby eligible for inclusion in regulated rates; and</text> </clause><clause id="HDE165AB115704FA79135ECF387EB4D4F"><enum>(iii)</enum><text>can be located safely and economically in a permanent underground right of way not to exceed 25 feet in width.</text> </clause><continuation-text continuation-text-level="subparagraph">The term <quote>qualified advanced electric transmission property</quote> shall not include any property placed in service after December 31, 2016.</continuation-text></subparagraph><subparagraph id="H914BB83ED4CE4429B0B9AB987FA3D977"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H9896624539CC48BE949C9147794A8CA0"><enum>(i)</enum><text>The term <quote>qualified high efficiency transmission property</quote> means any high voltage overhead electric transmission line, related substation, or other integrated facility that—</text> <subclause id="HAFC2146B158645629C6704047388C894" indent="up1"><enum>(I)</enum><text>utilizes advanced conductor core technology that—</text> <item id="HD2EFF97BB2FC49CAB8C1FB560A346EE8"><enum>(aa)</enum><text>has been determined by the Secretary of Energy as reasonably likely to become commercially viable within 10 years after the date of enactment of this paragraph;</text> </item><item id="HAD3C71F79C6A4B29974408D5489F53F6"><enum>(bb)</enum><text>is suitable for use on transmission lines up to 765kV; and</text> </item><item id="H54F68480D6094EE2A956D6D44E5C5619"><enum>(cc)</enum><text>exhibits power losses at least 30 percent lower than that of transmission lines using conventional <quote>ACSR</quote> conductors;</text> </item></subclause><subclause id="H8766D6BD5B0E4AB4B206F36517126562" indent="up1"><enum>(II)</enum><text>has been determined by an appropriate energy regulatory body, upon application, to be in the public interest and thereby eligible for inclusion in regulated rates; and</text> </subclause><subclause id="H9EB864E3A8644E21B39C5A0A2AD2212C" indent="up1"><enum>(III)</enum><text>can be located safely and economically in a right of way not to exceed that used by conventional <quote>ACSR</quote> conductors; and</text> </subclause></clause><clause id="H90D6D7B1A49F40129596F8866025AEF2" indent="up1"><enum>(ii)</enum><text>The term <quote>qualified high efficiency transmission property</quote> shall not include any property placed in service after December 31, 2016.</text> </clause></subparagraph><subparagraph id="H7B950BBE61D345B79E2296728B466A60"><enum>(C)</enum><text>The term <quote>qualified advanced electric transmission manufacturing plant</quote> means any industrial facility located in the United States which can be equipped, re-equipped, expanded, or established to produce in whole or in part qualified advanced electric transmission property.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H7C235A4AAFC84BBF8A44208FB8F320C9"><enum>(b)</enum><header>Additional Loan Guarantee Authority</header><text>Section 1703 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16513">42 U.S.C. 16513</external-xref>) is amended by adding the following new paragraph at the end of subsection (b):</text> <quoted-block id="HCCF3840E2B394DD3BA47131C9B8BEEC1" style="OLC"> <paragraph id="HB6C9E543D9C3474FBE9F1208D8F8181E"><enum>(12)</enum><text>The development, construction, acquisition, retrofitting, or engineering integration of a qualified advanced electric transmission manufacturing plant or the construction of a qualified advanced electric transmission property (whether by construction of new facilities or the modification of existing facilities). For purposes of this paragraph, the terms <quote>qualified advanced electric transmission property</quote> and <quote>qualified advanced electric transmission manufacturing plant</quote> have the meanings provided by section 1705(a)(5).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H3A072564723444359AB79FBCED5FB1D3"><enum>(c)</enum><header>Grants</header><text>The Secretary of Energy is authorized to provide grants for up to 50 percent of costs incurred in connection with the development, construction, acquisition of components for, or engineering of a qualified advanced electric transmission property defined in paragraph (5) of section 1705(a) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16515">42 U.S.C. 16515(a)</external-xref>). Such grants may only be made to the first project which qualifies under that paragraph. There are authorized to be appropriated for purposes of this subsection not more than $100,000,000 for fiscal year 2010. The United States shall take no equity or other ownership interest in the qualified advanced electric transmission manufacturing plant or qualified advanced electric transmission property for which funding is provided under this subsection.</text> </subsection></section></subtitle><subtitle id="HC1529D6FD5614F6183E6849D6FDCCFB5"><enum>G</enum><header>Technical Corrections to Energy Laws</header> <section id="H23E23C7BC06D466FADD82A611F5A1DD8" section-type="subsequent-section"><enum>161.</enum><header>Technical corrections to Energy Independence and Security Act of 2007</header> <subsection id="H521F798E5C014E7C9438C3261EDA5F51"><enum>(a)</enum><header>Title III—Energy savings through improved standards for appliance and lighting</header><paragraph commented="no" display-inline="yes-display-inline" id="H13E1A2028CCD441B9B3C58A1ABDB6AA7"><enum>(1)</enum><text display-inline="yes-display-inline">Section 325(u) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(u)</external-xref>) (as amended by section 301(c) of the Energy Independence and Security Act of 2007 (121 Stat. 1550)) is amended—</text> <subparagraph id="H87A0F5589A4440ACB7758A8B70077209"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraph (7) as paragraph (4); and</text> </subparagraph><subparagraph id="HCB26E23667284D0F913F38B14BBAA7B7"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (4) (as so redesignated), by striking <quote>supplies is</quote> and inserting <quote>supply is</quote>.</text> </subparagraph></paragraph><paragraph id="H5B1B625878414218854C6AB4DCBF8144" indent="up1"><enum>(2)</enum><text>Section 302 of the Energy Independence and Security Act of 2007 (121 Stat. 1551)) is amended—</text> <subparagraph id="HAC7CE3E770394566B4978D941F53B7FD"><enum>(A)</enum><text>in subsection (a), by striking <quote>end of the paragraph</quote> and inserting <quote>end of subparagraph (A)</quote>; and</text> </subparagraph><subparagraph id="HD932F10F7A8843A3B9F76E76D89FEFD8"><enum>(B)</enum><text>in subsection (b), by striking <quote>6313(a)</quote> and inserting <quote>6314(a)</quote>.</text> </subparagraph></paragraph><paragraph id="H48D890E285294FD6A6BC5F254D88214A" indent="up1"><enum>(3)</enum><text>Section 343(a)(1) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6313">42 U.S.C. 6313(a)(1)</external-xref>) (as amended by section 302(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1551)) is amended—</text> <subparagraph id="H006F23AA9BD74DEF8D3D272A51C94205"><enum>(A)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">Test procedures</header-in-text></quote> and all that follows through <quote>At least once</quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Test procedures</header-in-text>.—At least once</quote>; and</text> </subparagraph><subparagraph id="H4541E0C905654AB9BC05AD386AE08F87"><enum>(B)</enum><text>by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively (and by moving the margins of such subparagraphs 2 ems to the left).</text> </subparagraph></paragraph><paragraph id="HCA4D28D8A9D5472ABC669043B5105D2B" indent="up1"><enum>(4)</enum><text>Section 342(a)(6) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6313">42 U.S.C. 6313(a)(6)</external-xref>) (as amended by section 305(b)(2) of the Energy Independence and Security Act of 2007 (121 Stat. 1554)) is amended—</text> <subparagraph id="H77F36EC57CDF4967BCDE284452173AEC"><enum>(A)</enum><text>in subparagraph (B)—</text> <clause id="HEF9D607420934A61A0B1A68C3DA713A8"><enum>(i)</enum><text>by striking <quote>If the Secretary</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H4D8EFAB2BF21463781044BE97F2D121F" style="OLC"> <clause id="H0D9509D08C7E438DA89039BC3E78503D"><enum>(i)</enum><header>In general</header><text>If the Secretary</text> </clause><after-quoted-block>; </after-quoted-block></quoted-block> </clause><clause id="H831A6F94E9AB400DBEE930BA7576C66A"><enum>(ii)</enum><text>by striking <quote>clause (ii)(II)</quote> and inserting <quote>subparagraph (A)(ii)(II)</quote>;</text> </clause><clause id="HAC6E0F64C73B47588EE841DF1AF4164A"><enum>(iii)</enum><text>by striking <quote>clause (i)</quote> and inserting <quote>subparagraph (A)(i)</quote>; and</text> </clause><clause id="H75AE0550E734477396C9E55BF85D9FDA"><enum>(iv)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HEAC00D3F38B542F3BEB0BBEC315CFDD9" style="OLC"> <clause id="HE2D727D7319E40459A68FF77D6A792B0"><enum>(ii)</enum><header>Factors</header><text>In determining whether a standard is economically justified for the purposes of subparagraph (A)(ii)(II), the Secretary shall, after receiving views and comments furnished with respect to the proposed standard, determine whether the benefits of the standard exceed the burden of the proposed standard by, to the maximum extent practicable, considering—</text> <subclause id="HD88707FE33E1418A88C2A33236246BB2"><enum>(I)</enum><text>the economic impact of the standard on the manufacturers and on the consumers of the products subject to the standard;</text> </subclause><subclause id="H2D648B759BD1472AB7C16A506DCA95D5"><enum>(II)</enum><text>the savings in operating costs throughout the estimated average life of the product in the type (or class) compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the products that are likely to result from the imposition of the standard;</text> </subclause><subclause id="HF3ADD260F34440F691BAC99DAC7AEA51"><enum>(III)</enum><text>the total projected quantity of energy savings likely to result directly from the imposition of the standard;</text> </subclause><subclause id="HCDF43E9D4AF64647B1722D104B040A09"><enum>(IV)</enum><text>any lessening of the utility or the performance of the products likely to result from the imposition of the standard;</text> </subclause><subclause id="H44D22893E34D4FFD9ACF0E3579B0448E"><enum>(V)</enum><text>the impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the imposition of the standard;</text> </subclause><subclause id="H6764897F1D9242F395F598FADD1EDD99"><enum>(VI)</enum><text>the need for national energy conservation; and</text> </subclause><subclause id="H1A260D892D544DA8BF171F6CC9B9CA2C"><enum>(VII)</enum><text>other factors the Secretary considers relevant.</text> </subclause></clause><clause id="H7F4AF6073F5448C0A92937D0F8C6ED13"><enum>(iii)</enum><header>Administration</header> <subclause id="H44344B54E1814C19912646A340F06EB2"><enum>(I)</enum><header>Energy use and efficiency</header><text>The Secretary may not prescribe any amended standard under this paragraph that increases the maximum allowable energy use, or decreases the minimum required energy efficiency, of a covered product.</text> </subclause><subclause id="H424F3BB630E748E1B7DE47E6FCF99A35"><enum>(II)</enum><header>Unavailability</header> <item id="HC7CE232B68DB448AA4BC3D4B93F7156A"><enum>(aa)</enum><header>In general</header><text>The Secretary may not prescribe an amended standard under this subparagraph if the Secretary finds (and publishes the finding) that interested persons have established by a preponderance of the evidence that a standard is likely to result in the unavailability in the United States in any product type (or class) of performance characteristics (including reliability, features, sizes, capacities, and volumes) that are substantially the same as those generally available in the United States at the time of the finding of the Secretary.</text> </item><item id="HC81132F335D44B168C2B4A176C5C5A15"><enum>(bb)</enum><header>Other types or classes</header><text>The failure of some types (or classes) to meet the criterion established under this subclause shall not affect the determination of the Secretary on whether to prescribe a standard for the other types or classes.</text> </item></subclause></clause><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="H9564706B1D3640C39B7D2771CD8477B6"><enum>(B)</enum><text>in subparagraph (C)(iv), by striking <quote>An amendment prescribed under this subsection</quote> and inserting <quote>Notwithstanding subparagraph (D), an amendment prescribed under this subparagraph</quote>.</text> </subparagraph></paragraph><paragraph id="H1DABB5ED273D45D7AB1A60EBDDD02989" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">Section 342(a)(6)(B)(iii) of the Energy Policy and Conservation Act (as added by section 306(c) of the Energy Independence and Security Act of 2007) is transferred and redesignated as clause (vi) of section 342(a)(6)(C) of the Energy Policy and Conservation Act (as amended by section 305(b)(2) of the Energy Independence and Security Act of 2007).</text> </paragraph><paragraph id="HF2262720C03049EA85F9E26BC8C0DFB8" indent="up1"><enum>(6)</enum><text>Section 340 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6311">42 U.S.C. 6311</external-xref>) (as amended by sections 312(a)(2) and 314(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1564, 1569)) is amended by redesignating paragraphs (22) and (23) (as added by section 314(a) of that Act) as paragraphs (23) and (24), respectively.</text> </paragraph><paragraph id="H4C214107BF4E4BB0A43A1C39DB363E1A" indent="up1"><enum>(7)</enum><text display-inline="yes-display-inline">Section 345 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6316">42 U.S.C. 6316</external-xref>) (as amended by section 312(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1567)) is amended—</text> <subparagraph id="H47AD63E801F447C3A587E274FDA0348B"><enum>(A)</enum><text>by striking <quote>subparagraphs (B) through (G)</quote> each place it appears and inserting <quote>subparagraphs (B), (C), (D), (I), (J), and (K)</quote>;</text> </subparagraph><subparagraph id="H6FC0438A62624107AA86C5C893318392"><enum>(B)</enum><text>by striking <quote>part A</quote> each place it appears and inserting <quote>part B</quote>; and</text> </subparagraph><subparagraph id="HE1B1438BC4284F01976E500E5C91E70C"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (h)(3), by striking <quote>section 342(f)(3)</quote> and inserting <quote>section 342(f)(4)</quote>.</text> </subparagraph></paragraph><paragraph id="HD9CA049CE1C345F2A1C7C3FE4A9C9207" indent="up1"><enum>(8)</enum><text>Section 340(13) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6311">42 U.S.C. 6311(13)</external-xref>) (as amended by section 313(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1568)) is amended—</text> <subparagraph id="H2D96D89748854154B4CB9B48BC541947"><enum>(A)</enum><text>by striking subparagraphs (A) and (B) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H38E2FBFEC26B454894977A95548B0F0B" style="OLC"> <subparagraph id="HF5A1ED2EA2534C0B90A86924CF13AD70"><enum>(A)</enum><header>In general</header><text>The term <term>electric motor</term> means any motor that is—</text> <clause id="H425FD5D60CAE469799A7CEFD819E7394"><enum>(i)</enum><text>a general purpose T-frame, single-speed, foot-mounting, polyphase squirrel-cage induction motor of the National Electrical Manufacturers Association, Design A and B, continuous rated, operating on 230/460 volts and constant 60 Hertz line power as defined in NEMA Standards Publication MG1–1987; or</text> </clause><clause id="HA88B5B567EB347648A9B469C4BEEC357"><enum>(ii)</enum><text>a motor incorporating the design elements described in clause (i), but is configured to incorporate one or more of the following variations—</text> <subclause id="HC43FDE3616344B4091E8DB534C2C4B49"><enum>(I)</enum><text>U-frame motor;</text> </subclause><subclause id="H1800D72B9C44452894C05FD3A0F0282E"><enum>(II)</enum><text>NEMA Design C motor;</text> </subclause><subclause id="H4EA04663A22B4FC9805B20036C1D56A5"><enum>(III)</enum><text>close-coupled pump motor;</text> </subclause><subclause id="H65C92952C1134D2C84C84A237C81C83E"><enum>(IV)</enum><text>footless motor;</text> </subclause><subclause id="HB4B1A5AEDB8F4500842E74BF7264F719"><enum>(V)</enum><text>vertical solid shaft normal thrust motor (as tested in a horizontal configuration);</text> </subclause><subclause id="H4D31488320CE44559B344CD3C62B763A"><enum>(VI)</enum><text>8-pole motor; or</text> </subclause><subclause id="H6926A7EE4C3A4ABD88823DFC484CF9CB"><enum>(VII)</enum><text>poly-phase motor with a voltage rating of not more than 600 volts (other than 230 volts or 460 volts, or both, or can be operated on 230 volts or 460 volts, or both).</text> </subclause></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HA18BB6102E7C4F44852BBDA083FEEAB1"><enum>(B)</enum><text>by redesignating subparagraphs (C) through (I) as subparagraphs (B) through (H), respectively.</text> </subparagraph></paragraph><paragraph id="H67B4EA8D948646BDA3563FCE346BAE7E" indent="up1"><enum>(9)(A)</enum><text display-inline="yes-display-inline">Section 342(b) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6313">42 U.S.C. 6313(b)</external-xref>) is amended—</text> </paragraph><paragraph id="H42DF25B0EAD8469896CA640004E63AC5" indent="up1"><enum>(i)</enum><text>in paragraph (1), by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph (3)</quote>;</text> </paragraph><paragraph id="HF038E7183A17407B92CDE04FD352FCF1" indent="up1"><enum>(ii)</enum><text>by redesignating paragraphs (2) and (3) as paragraphs (3) and (4);</text> </paragraph><paragraph id="HE75E0879E3ED4838B12A8056952D607C" indent="up1"><enum>(iii)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="H99ED5B0276E24BC9BEE9E17218AFE076" style="OLC"> <paragraph id="H1D10E606774241F581099A90A44B8CC3"><enum>(2)</enum><header>Standards effective beginning December 19, 2010</header> <subparagraph id="H356A7DE71E6044CCB0758A16D72C4A4D"><enum>(A)</enum><header>In general</header><text>Except for definite purpose motors, special purpose motors, and those motors exempted by the Secretary under paragraph (3) and except as provided for in subparagraphs (B), (C), and (D), each electric motor manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG–1 (2006) Table 12–12.</text> </subparagraph><subparagraph id="HCAB11D5582EF459780C56D49C7CB9B27"><enum>(B)</enum><header>Fire pump electric motors</header><text display-inline="yes-display-inline">Except for those motors exempted by the Secretary under paragraph (3), each fire pump electric motor manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency that is not less than the nominal full load efficiency described in NEMA MG–1 (2006) Table 12–11.</text> </subparagraph><subparagraph id="H9A4D9A3E444B4A1D978A20427E45A436"><enum>(C)</enum><header>NEMA Design B electric motors</header><text display-inline="yes-display-inline">Except for those motors exempted by the Secretary under paragraph (3), each NEMA Design B electric motor with power ratings of more than 200 horsepower, but not greater than 500 horsepower, manufactured (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG–1 (2006) Table 12–11.</text> </subparagraph><subparagraph id="HE2603DA9830046E5A0EC2E872B63E8BF"><enum>(D)</enum><header>Motors incorporating certain design elements</header><text display-inline="yes-display-inline">Except for those motors exempted by the Secretary under paragraph (3), each electric motor described in section 340(13)(A)(ii) manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG–1 (2006) Table 12–11.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HC9134904A67441ED9C393685A36F6E70" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">in paragraph (3) (as redesignated by clause (ii)), by striking <quote>paragraph (1)</quote> each place it appears in subparagraphs (A) and (D) and inserting <quote>paragraphs (1) and (2)</quote>.</text> <subparagraph id="H6B765DFFEF3943D181D5E790E9BCC79A" indent="up1"><enum>(B)</enum><text>Section 313 of the Energy Independence and Security Act of 2007 (121 Stat. 1568) is repealed.</text> </subparagraph><subparagraph id="HB8E0749154FB4840BD695651A53CD0E6" indent="up1"><enum>(C)</enum><text>The amendments made by—</text> <clause id="H9D4BE3943B3C4C848BF300DC42EBC172"><enum>(i)</enum><text>subparagraph (A) shall take effect on December 19, 2010; and</text> </clause><clause id="H77F05486CFE347E286562CFD8E741E3B"><enum>(ii)</enum><text>subparagraph (B) shall take effect on December 19, 2007.</text> </clause></subparagraph></paragraph><paragraph id="H87522E2495C24C2D8197A86C28A74067" indent="up1"><enum>(10)</enum><text display-inline="yes-display-inline">Section 321(30)(D)(i)(III) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291(30)(D)(i)(III)</external-xref>) (as amended by section 321(a)(1)(A) of the Energy Independence and Security Act of 2007 (121 Stat. 1574)) is amended by inserting before the semicolon the following: <quote>or, in the case of a modified spectrum lamp, not less than 232 lumens and not more than 1,950 lumens</quote>.</text> </paragraph><paragraph id="H72BA73DEF0804C3981AFA2570F1D071A" indent="up1"><enum>(11)</enum><text display-inline="yes-display-inline">Section 321(30)(T) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291(30)(T)</external-xref> (as amended by section 321(a)(1)(B) of the Energy Independence and Security Act of 2007 (121 Stat. 1574)) is amended—</text> <subparagraph id="H33B10FBA53154E3A900F7229C8DBB3D3"><enum>(A)</enum><text>in clause (i)—</text> <clause id="H5603A2B315E1424C8E6307EBE6B1451F"><enum>(i)</enum><text>by striking the comma after <quote>household appliance</quote> and inserting <quote>and</quote>; and</text> </clause><clause id="HA6E13DA51AC64A0ABB335994CAAE861B"><enum>(ii)</enum><text>by striking <quote>and is sold at retail,</quote>; and</text> </clause></subparagraph><subparagraph id="HB211D30821374466A79547AE33E72896"><enum>(B)</enum><text>in clause (ii), by inserting <quote>when sold at retail,</quote> before <quote>is designated</quote>.</text> </subparagraph></paragraph><paragraph id="HB45A3ACAC76A4899B181B4D6715C1856" indent="up1"><enum>(12)</enum><text display-inline="yes-display-inline">Section 325 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295</external-xref>) (as amended by sections 321(a)(3)(A) and 322(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1577, 1588)) is amended by striking subsection (i) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H0964A31F22434ABDA4540F1E0875FA35" style="OLC"> <subsection id="HAC2ADE2B0484464E9703AAA7E7D79327"><enum>(i)</enum><header>General service fluorescent lamps, general service incandescent lamps, intermediate base incandescent lamps, candelabra base incandescent lamps, and incandescent reflector lamps</header> <paragraph id="HF3F47784ECCC4F72AC5EC081865CFFF5"><enum>(1)</enum><header>Energy efficiency standards</header> <subparagraph id="HD996B759901F4FAB81C030C5C726658A"><enum>(A)</enum><header>In general</header><text>Each of the following general service fluorescent lamps, general service incandescent lamps, intermediate base incandescent lamps, candelabra base incandescent lamps, and incandescent reflector lamps manufactured after the effective date specified in the tables listed in this subparagraph shall meet or exceed the following lamp efficacy, new maximum wattage, and CRI standards:</text> <table blank-lines-before="2" line-rules="hor"> <ttitle>FLUORESCENT LAMPS</ttitle> <tgroup cols="5" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.9" ttitle-size="8"><colspec coldef="txt" colname="col1" min-data-value="30"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col2" min-data-value="40"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col3" min-data-value="40"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col4" min-data-value="72"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col5" min-data-value="40"></colspec> <thead> <row><entry align="center" colname="col1">Lamp Type</entry><entry align="center" colname="col2">Nominal Lamp Wattage</entry><entry align="center" colname="col3">Minimum CRI</entry><entry align="center" colname="col4">Minimum Average Lamp Efficacy (LPW)</entry><entry align="center" colname="col5">Effective Date (Period of Months)</entry> </row> </thead> <tbody> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">4-foot medium bi-pin</entry><entry colname="col2" entry-modify="ctr-variable">>35 W</entry><entry colname="col3" entry-modify="ctr-variable">69</entry><entry colname="col4" entry-modify="ctr-variable">75.0</entry><entry colname="col5" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-clr-start-end"></entry><entry colname="col2" entry-modify="ctr-variable">≤35 W</entry><entry colname="col3" entry-modify="ctr-variable">45</entry><entry colname="col4" entry-modify="ctr-variable">75.0 </entry><entry colname="col5" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">2-foot U-shaped</entry><entry colname="col2" entry-modify="ctr-variable">>35 W</entry><entry colname="col3" entry-modify="ctr-variable">69</entry><entry colname="col4" entry-modify="ctr-variable">68.0 </entry><entry colname="col5" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-clr-start-end"></entry><entry colname="col2" entry-modify="ctr-variable"> ≤35 W</entry><entry colname="col3" entry-modify="ctr-variable">45</entry><entry colname="col4" entry-modify="ctr-variable">64.0 </entry><entry colname="col5" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">8-foot slimline</entry><entry colname="col2" entry-modify="ctr-variable"> 65 W</entry><entry colname="col3" entry-modify="ctr-variable">69</entry><entry colname="col4" entry-modify="ctr-variable">80.0 </entry><entry colname="col5" entry-modify="ctr-variable">18</entry> </row> <row><entry colname="col1" stub-definition="txt-clr-start-end"></entry><entry colname="col2" entry-modify="ctr-variable">≤65 W</entry><entry colname="col3" entry-modify="ctr-variable">45</entry><entry colname="col4" entry-modify="ctr-variable">80.0 </entry><entry colname="col5" entry-modify="ctr-variable">18</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">8-foot high output</entry><entry colname="col2" entry-modify="ctr-variable">>100 W</entry><entry colname="col3" entry-modify="ctr-variable">69</entry><entry colname="col4" entry-modify="ctr-variable">80.0 </entry><entry colname="col5" entry-modify="ctr-variable">18</entry> </row> <row><entry colname="col1" stub-definition="txt-clr-start-end"></entry><entry colname="col2" entry-modify="ctr-variable">≤100 W</entry><entry colname="col3" entry-modify="ctr-variable">45</entry><entry colname="col4" entry-modify="ctr-variable">80.0 </entry><entry colname="col5" entry-modify="ctr-variable">18</entry> </row> </tbody> </tgroup> </table> <table line-rules="hor"> <ttitle>INCANDESCENT REFLECTOR LAMPS</ttitle> <tgroup cols="3" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.9" ttitle-size="8"><colspec coldef="txt" colname="col1" min-data-value="30"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col2" min-data-value="72"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col3" min-data-value="40"></colspec> <thead> <row><entry align="center" colname="col1">Nominal Lamp Wattage</entry><entry align="center" colname="col2">Minimum Average Lamp Efficacy (LPW)</entry><entry align="center" colname="col3">Effective Date (Period of Months)</entry> </row> </thead> <tbody> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1"> 40–50</entry><entry colname="col2" entry-modify="ctr-variable">10.5</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1"> 51–66</entry><entry colname="col2" entry-modify="ctr-variable">11.0</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1"> 67–85</entry><entry colname="col2" entry-modify="ctr-variable">12.5</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1"> 86–115</entry><entry colname="col2" entry-modify="ctr-variable">14.0</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">116–155</entry><entry colname="col2" entry-modify="ctr-variable">14.5</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">156–205</entry><entry colname="col2" entry-modify="ctr-variable">15.0</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> </tbody> </tgroup> </table> <table align-to-level="section" blank-lines-before="1" frame="topbot" line-rules="hor-ver" rule-weights="4.4.4.4.0.0" subformat="S6211" table-type="4-Generic:-1-text,-3-num"> <ttitle>GENERAL SERVICE INCANDESCENT LAMPS</ttitle> <tgroup cols="4" grid-typeface="1.1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="center" coldef="txt-no-ldr" colname="col1" colsep="1" colwidth="186" min-data-value="120" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col2" colsep="1" colwidth="140" min-data-value="15" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col3" colsep="1" colwidth="93" min-data-value="10" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col4" colsep="1" colwidth="93" min-data-value="10" rowsep="0"></colspec> <thead> <row><entry align="center" colname="col1" rowsep="1">Rated Lumen Ranges</entry><entry align="center" colname="col2" rowsep="1">Maximum Rated Wattage</entry><entry align="center" colname="col3" rowsep="1">Minimum Rated Lifetime</entry><entry align="center" colname="col4" rowsep="1">Effective Date</entry> </row> </thead> <tbody> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">1490–2600</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">72</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2012</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">1050–1489</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">53</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2013</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">750–1049</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">43</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2014</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">310–749</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">29</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2014</entry> </row> </tbody> </tgroup> </table> <table align-to-level="section" blank-lines-before="1" frame="topbot" line-rules="hor-ver" rule-weights="4.4.4.4.0.0" subformat="S6211" table-type="4-Generic:-1-text,-3-num"> <ttitle>MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS</ttitle> <tgroup cols="4" grid-typeface="1.1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="center" coldef="txt-no-ldr" colname="col1" colsep="1" colwidth="186" min-data-value="120" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col2" colsep="1" colwidth="140" min-data-value="15" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col3" colsep="1" colwidth="93" min-data-value="10" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col4" colsep="1" colwidth="93" min-data-value="10" rowsep="0"></colspec> <thead> <row><entry align="center" colname="col1" rowsep="1">Rated Lumen Ranges</entry><entry align="center" colname="col2" rowsep="1">Maximum Rated Wattage</entry><entry align="center" colname="col3" rowsep="1">Minimum Rated Lifetime</entry><entry align="center" colname="col4" rowsep="1">Effective Date</entry> </row> </thead> <tbody> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">1118–1950</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">72</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2012</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">788–1117</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">53</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2013</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">563–787</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">43</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2014</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">232–562</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">29</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2014</entry> </row> </tbody> </tgroup> </table> </subparagraph><subparagraph id="HE1F65ED3405C477BBA6FF9AEA44E729D"><enum>(B)</enum><header>Application</header> <clause id="H0A6194C9DA704C188506258190A3A6E4"><enum>(i)</enum><header>Application criteria</header><text>This subparagraph applies to each lamp that—</text> <subclause id="H24891F2EFBA341FB87CFEA74D2550EE1"><enum>(I)</enum><text>is intended for a general service or general illumination application (whether incandescent or not);</text> </subclause><subclause id="HE4EA9670871B4D8B89431B505B920793"><enum>(II)</enum><text>has a medium screw base or any other screw base not defined in ANSI C81.61–2006;</text> </subclause><subclause id="H9BDA90E21D7747CA8563EA1D36A2B77A"><enum>(III)</enum><text>is capable of being operated at a voltage at least partially within the range of 110 to 130 volts; and</text> </subclause><subclause id="H525A7494E547487E936B18421A08AD1E"><enum>(IV)</enum><text>is manufactured or imported after December 31, 2011.</text> </subclause></clause><clause id="H3E35DDB9AB0B48708C81F5E526E75273"><enum>(ii)</enum><header>Requirement</header><text>For purposes of this paragraph, each lamp described in clause (i) shall have a color rendering index that is greater than or equal to—</text> <subclause id="H7137C69AE1BA410B90450C1E27855445"><enum>(I)</enum><text>80 for nonmodified spectrum lamps; or</text> </subclause><subclause id="H56F2E178940849579D84A575A3FE17C1"><enum>(II)</enum><text>75 for modified spectrum lamps.</text> </subclause></clause></subparagraph><subparagraph commented="no" id="H2B7468B4CCE747F7852481183E4C2193"><enum>(C)</enum><header>Candelabra incandescent lamps and intermediate base incandescent lamps</header> <clause commented="no" id="H89ABE06CA2EA4EC5BB0E4EAA0DE4054C"><enum>(i)</enum><header>Candelabra base incandescent lamps</header><text>Effective beginning January 1, 2012, a candelabra base incandescent lamp shall not exceed 60 rated watts.</text> </clause><clause commented="no" id="HA50DFF9AAED84A44BACB98BA9AE2C8E2"><enum>(ii)</enum><header>Intermediate base incandescent lamps</header><text>Effective beginning January 1, 2012, an intermediate base incandescent lamp shall not exceed 40 rated watts.</text> </clause></subparagraph><subparagraph id="HFCA231B888D9486788612055E7C2DABB"><enum>(D)</enum><header>Exemptions</header> <clause id="H265C3A5AA1494792B65D3A419742159A"><enum>(i)</enum><header>Statutory exemptions</header><text>The standards specified in subparagraph (A) shall not apply to the following types of incandescent reflector lamps:</text> <subclause id="H358B4316DDD24AE894198D421B6BB53D"><enum>(I)</enum><text>Lamps rated at 50 watts or less that are ER30, BR30, BR40, or ER40 lamps.</text> </subclause><subclause id="H019C598844C34540BD5B7DC22D1B5FCF"><enum>(II)</enum><text>Lamps rated at 65 watts that are BR30, BR40, or ER40 lamps.</text> </subclause><subclause id="HA7D7690556E3448D8FD43C421437893D"><enum>(III)</enum><text>R20 incandescent reflector lamps rated 45 watts or less.</text> </subclause></clause><clause id="HF57758268A95463C802789D72EF8D288"><enum>(ii)</enum><header>Administrative exemptions</header> <subclause id="H53C3BCCDACEF495487CC6A725796CB2B"><enum>(I)</enum><header>Petition</header><text>Any person may petition the Secretary for an exemption for a type of general service lamp from the requirements of this subsection.</text> </subclause><subclause id="H6D740FCEC7B14E6EA31F397D81021A11"><enum>(II)</enum><header>Criteria</header><text>The Secretary may grant an exemption under subclause (I) only to the extent that the Secretary finds, after a hearing and opportunity for public comment, that it is not technically feasible to serve a specialized lighting application (such as a military, medical, public safety, or certified historic lighting application) using a lamp that meets the requirements of this subsection.</text> </subclause><subclause id="HFC5B7052BB084CB5914A6212BBE1E862"><enum>(III)</enum><header>Additional criterion</header><text>To grant an exemption for a product under this clause, the Secretary shall include, as an additional criterion, that the exempted product is unlikely to be used in a general service lighting application.</text> </subclause></clause></subparagraph><subparagraph id="HE4195AD8EA9D45DB9AEFB2EB001D8128"><enum>(E)</enum><header>Extension of coverage</header> <clause id="H52183C0D7014415B9C79DD3345705792"><enum>(i)</enum><header>Petition</header><text>Any person may petition the Secretary to establish standards for lamp shapes or bases that are excluded from the definition of general service lamps.</text> </clause><clause id="HBDF8147EAE094FD5BD34F43A3A6D0EC5"><enum>(ii)</enum><header>Increased sales of exempted lamps</header><text>The petition shall include evidence that the availability or sales of exempted incandescent lamps have increased significantly since the date on which the standards on general service incandescent lamps were established.</text> </clause><clause id="H141B9CC5C1FC46EE9EE86800DAA01B2B"><enum>(iii)</enum><header>Criteria</header><text>The Secretary shall grant a petition under clause (i) if the Secretary finds that—</text> <subclause id="HAB5383789A894EE786A435E3328A8620"><enum>(I)</enum><text>the petition presents evidence that demonstrates that commercial availability or sales of exempted incandescent lamp types have increased significantly since the standards on general service lamps were established and likely are being widely used in general lighting applications; and</text> </subclause><subclause id="H46E45A7019364065A1D378E49128A37D"><enum>(II)</enum><text>significant energy savings could be achieved by covering exempted products, as determined by the Secretary based in part on sales data provided to the Secretary from manufacturers and importers.</text> </subclause></clause><clause id="HF712E2359EB34488BE237B71A0B2E1CF"><enum>(iv)</enum><header>No presumption</header><text>The grant of a petition under this subparagraph shall create no presumption with respect to the determination of the Secretary with respect to any criteria under a rulemaking conducted under this section.</text> </clause><clause id="H0114340F33D7416A8B11D7B691551332"><enum>(v)</enum><header>Expedited proceeding</header><text>If the Secretary grants a petition for a lamp shape or base under this subparagraph, the Secretary shall—</text> <subclause id="H003E10A178964380AA98F5F937F979B8"><enum>(I)</enum><text>conduct a rulemaking to determine standards for the exempted lamp shape or base; and</text> </subclause><subclause id="HFE32BC2BA5734E1D8666928EE1F68F85"><enum>(II)</enum><text>complete the rulemaking not later than 18 months after the date on which notice is provided granting the petition.</text> </subclause></clause></subparagraph><subparagraph id="HA22ED5707A97492FB982D91DBC4328F2"><enum>(F)</enum><header>Effective dates</header> <clause id="H1FE050EAA14E4D04904D4ED463D041CB"><enum>(i)</enum><header>In general</header><text>In this paragraph, except as otherwise provided in a table contained in subparagraph (A) or in clause (ii), the term <term>effective date</term> means the last day of the month specified in the table that follows October 24, 1992.</text> </clause><clause id="HB472E3BB310947A7B31E0413930742CF"><enum>(ii)</enum><header>Special effective dates</header> <subclause id="HE789A5F9D5684DD7B82F769DF1E3AA3B"><enum>(I)</enum><header>ER, br, and bpar lamps</header><text>The standards specified in subparagraph (A) shall apply with respect to ER incandescent reflector lamps, BR incandescent reflector lamps, BPAR incandescent reflector lamps, and similar bulb shapes on and after January 1, 2008, or the date that is 180 days after the date of enactment of the Energy Independence and Security Act of 2007.</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="H190B44EDD2D44A2894CAC4FDE74FBAAE"><enum>(II)</enum><header>Lamps between 2.25–2.75 inches in diameter</header><text>The standards specified in subparagraph (A) shall apply with respect to incandescent reflector lamps with a diameter of more than 2.25 inches, but not more than 2.75 inches, on and after the later of January 1, 2008, or the date that is 180 days after the date of enactment of the Energy Independence and Security Act of 2007.</text> </subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF18692FCDDBE4F4DA9BB2D6F142DD7B8"><enum>(2)</enum><header>Compliance with existing law</header><text>Notwithstanding section 332(a)(5) and section 332(b), it shall not be unlawful for a manufacturer to sell a lamp that is in compliance with the law at the time the lamp was manufactured.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H121BEE3E78554AC4B6338964DE85D49F"><enum>(3)</enum><header>Rulemaking before October 24, 1995</header> <subparagraph commented="no" display-inline="no-display-inline" id="HFE1F0D7A4937404AB67290D7E2BD53BD"><enum>(A)</enum><header>In general</header><text>Not later than 36 months after October 24, 1992, the Secretary shall initiate a rulemaking procedure and shall publish a final rule not later than the end of the 54-month period beginning on October 24, 1992, to determine whether the standards established under paragraph (1) should be amended.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2B7D7DD9083B4BFBAE2B8AD893A353BE"><enum>(B)</enum><header>Administration</header><text>The rule shall contain the amendment, if any, and provide that the amendment shall apply to products manufactured on or after the 36-month period beginning on the date on which the final rule is published.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB3EA9C4E77B8468DB28C5D3E61B3435D"><enum>(4)</enum><header>Rulemaking before October 24, 2000</header> <subparagraph commented="no" display-inline="no-display-inline" id="H3C599F5F4BD74140A7E80713F6DCA976"><enum>(A)</enum><header>In general</header><text>Not later than 8 years after October 24, 1992, the Secretary shall initiate a rulemaking procedure and shall publish a final rule not later than 9 years and 6 months after October 24, 1992, to determine whether the standards in effect for fluorescent lamps and incandescent lamps should be amended.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H71B700B0AEC142BC984AFB5A7761941C"><enum>(B)</enum><header>Administration</header><text>The rule shall contain the amendment, if any, and provide that the amendment shall apply to products manufactured on or after the 36-month period beginning on the date on which the final rule is published.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6C994786855D4EFBB53DAE43E1F94A15"><enum>(5)</enum><header>Rulemaking for additional general service fluorescent lamps</header> <subparagraph commented="no" display-inline="no-display-inline" id="HE8086B54D0A34E1BA2EE312AEA3DA3C9"><enum>(A)</enum><header>In general</header><text>Not later than the end of the 24-month period beginning on the date labeling requirements under section 324(a)(2)(C) become effective, the Secretary shall—</text> <clause commented="no" display-inline="no-display-inline" id="H4E40F4494C534F0AAC0B66916D7B5CE4"><enum>(i)</enum><text>initiate a rulemaking procedure to determine whether the standards in effect for fluorescent lamps and incandescent lamps should be amended so that the standards would be applicable to additional general service fluorescent lamps; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="H2B8319E8108D480FA7BA139DC961839E"><enum>(ii)</enum><text>publish, not later than 18 months after initiating the rulemaking, a final rule including the amended standards, if any.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H74DBB3CAC7984823BBA0D2DDE3803DE7"><enum>(B)</enum><header>Administration</header><text>The rule shall provide that the amendment shall apply to products manufactured after a date which is 36 months after the date on which the rule is published.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD8F9148D31B8479398ACA353F43B6795"><enum>(6)</enum><header>Standards for general service lamps</header> <subparagraph id="H3753804A7FCB41F3A513E32F7060DAAA"><enum>(A)</enum><header>Rulemaking before January 1, 2014</header> <clause id="H985A9214713045E18093A4E0C90A7EFF"><enum>(i)</enum><header>In general</header><text>Not later than January 1, 2014, the Secretary shall initiate a rulemaking procedure to determine whether—</text> <subclause id="H414254DE9E364BC8A11598F5958874A1"><enum>(I)</enum><text>standards in effect for general service lamps should be amended; and</text> </subclause><subclause id="H0100D4BED8944898B1E26D6FB1B7339B"><enum>(II)</enum><text>the exclusions for certain incandescent lamps should be maintained or discontinued based, in part, on excluded lamp sales collected by the Secretary from manufacturers.</text> </subclause></clause><clause id="HACA43B73E7EE4EEEAF5A212C442193B5"><enum>(ii)</enum><header>Scope</header><text>The rulemaking—</text> <subclause id="HEEAB7C2C2C3843A78DDB83CFD2289CF5"><enum>(I)</enum><text>shall not be limited to incandescent lamp technologies; and</text> </subclause><subclause id="HD7A298D399F14E118E08F81E5AB4368D"><enum>(II)</enum><text>shall include consideration of a minimum standard of 45 lumens per watt for general service lamps.</text> </subclause></clause><clause id="H70F1E82CB3774DBCBF7FF2B0692AB492"><enum>(iii)</enum><header>Amended standards</header><text>If the Secretary determines that the standards in effect for general service lamps should be amended, the Secretary shall publish a final rule not later than January 1, 2017, with an effective date that is not earlier than 3 years after the date on which the final rule is published.</text> </clause><clause id="H26586D71F22F4FB0BBBAD2D65EF1D7C5"><enum>(iv)</enum><header>Phased-in effective dates</header><text>The Secretary shall consider phased-in effective dates under this subparagraph after considering—</text> <subclause id="H9F32A9094E8E44318A81DE5E75D395B5"><enum>(I)</enum><text>the impact of any amendment on manufacturers, retiring and repurposing existing equipment, stranded investments, labor contracts, workers, and raw materials; and</text> </subclause><subclause id="H980D84DFC72542C5A2C3EA9D8F191FEA"><enum>(II)</enum><text>the time needed to work with retailers and lighting designers to revise sales and marketing strategies.</text> </subclause></clause><clause id="H088B4CE5A3754E54A52C321CB57BA2D0"><enum>(v)</enum><header>Backstop requirement</header><text>If the Secretary fails to complete a rulemaking in accordance with clauses (i) through (iv) or if the final rule does not produce savings that are greater than or equal to the savings from a minimum efficacy standard of 45 lumens per watt, effective beginning January 1, 2020, the Secretary shall prohibit the manufacture of any general service lamp that does not meet a minimum efficacy standard of 45 lumens per watt.</text> </clause><clause id="H9789327B76E8402185B4885047B80491"><enum>(vi)</enum><header>State preemption</header><text>Neither section 327(c) nor any other provision of law shall preclude California or Nevada from adopting, effective beginning on or after January 1, 2018—</text> <subclause id="HC635DE06C5984750AD6938B05DE7ADB6"><enum>(I)</enum><text>a final rule adopted by the Secretary in accordance with clauses (i) through (iv);</text> </subclause><subclause id="H5CF7C908726846E1A559A9CA3E1AE960"><enum>(II)</enum><text>if a final rule described in subclause (I) has not been adopted, the backstop requirement under clause (v); or</text> </subclause><subclause id="H9DCB2BF19DBF4FD49B4209497DB8655C"><enum>(III)</enum><text>in the case of California, if a final rule described in subclause (I) has not been adopted, any California regulations relating to these covered products adopted pursuant to State statute in effect as of the date of enactment of the Energy Independence and Security Act of 2007.</text> </subclause></clause></subparagraph><subparagraph id="H3E20492BB8AB4D64927D5B67A5B3C907"><enum>(B)</enum><header>Rulemaking before January 1, 2020</header> <clause id="H4A0B9CDECE544A35BC7AD38A64A63E80"><enum>(i)</enum><header>In general</header><text>Not later than January 1, 2020, the Secretary shall initiate a rulemaking procedure to determine whether—</text> <subclause id="H5DBF4FFF4A0E40EC94A6D85618E0E9CC"><enum>(I)</enum><text>standards in effect for general service lamps should be amended; and</text> </subclause><subclause id="H8A526EF67A5F4058BD3EC59A96797979"><enum>(II)</enum><text>the exclusions for certain incandescent lamps should be maintained or discontinued based, in part, on excluded lamp sales data collected by the Secretary from manufacturers.</text> </subclause></clause><clause id="H0533AD98E3834E5FB2AC0E06E8F36408"><enum>(ii)</enum><header>Scope</header><text>The rulemaking shall not be limited to incandescent lamp technologies.</text> </clause><clause id="H9C83C4C8527B4951977A5E4F8647176B"><enum>(iii)</enum><header>Amended standards</header><text>If the Secretary determines that the standards in effect for general service lamps should be amended, the Secretary shall publish a final rule not later than January 1, 2022, with an effective date that is not earlier than 3 years after the date on which the final rule is published.</text> </clause><clause id="H137B3F55420248ADA6BA2EF177592CAD"><enum>(iv)</enum><header>Phased-in effective dates</header><text>The Secretary shall consider phased-in effective dates under this subparagraph after considering—</text> <subclause id="H16B2623E959D4523B4791EC557E88D02"><enum>(I)</enum><text>the impact of any amendment on manufacturers, retiring and repurposing existing equipment, stranded investments, labor contracts, workers, and raw materials; and</text> </subclause><subclause id="H03C3E40029C04B13AEA647BAC41705E1"><enum>(II)</enum><text>the time needed to work with retailers and lighting designers to revise sales and marketing strategies.</text> </subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H25DA001A2C8041CD954B08294CEB543C"><enum>(7)</enum><header>Federal actions</header> <subparagraph commented="no" display-inline="no-display-inline" id="HBEC638E791524D96B4C30C94571B449C"><enum>(A)</enum><header>Comments of Secretary</header> <clause commented="no" display-inline="no-display-inline" id="HAD018A7903AE40DC816AAFB18E06F182"><enum>(i)</enum><header>In general</header><text>With respect to any lamp to which standards are applicable under this subsection or any lamp specified in section 346, the Secretary shall inform any Federal entity proposing actions that would adversely impact the energy consumption or energy efficiency of the lamp of the energy conservation consequences of the action.</text> </clause><clause commented="no" display-inline="no-display-inline" id="HFAA221D50D8B43649AE9A68C858A13F2"><enum>(ii)</enum><header>Consideration</header><text>The Federal entity shall carefully consider the comments of the Secretary.</text> </clause></subparagraph><subparagraph id="HDE959849E2A14E17AF43DCD8FCD0F295"><enum>(B)</enum><header>Amendment of standards</header><text>Notwithstanding section 325(n)(1), the Secretary shall not be prohibited from amending any standard, by rule, to permit increased energy use or to decrease the minimum required energy efficiency of any lamp to which standards are applicable under this subsection if the action is warranted as a result of other Federal action (including restrictions on materials or processes) that would have the effect of either increasing the energy use or decreasing the energy efficiency of the product.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2943058B24864AFFB6CF7FB09B219A92"><enum>(8)</enum><header>Compliance</header> <subparagraph commented="no" display-inline="no-display-inline" id="HAE76BF88E1944804AD177727A6C56D44"><enum>(A)</enum><header>In general</header><text>Not later than the date on which standards established pursuant to this subsection become effective, or, with respect to high-intensity discharge lamps covered under section 346, the effective date of standards established pursuant to that section, each manufacturer of a product to which the standards are applicable shall file with the Secretary a laboratory report certifying compliance with the applicable standard for each lamp type.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7BDDA7360CE3422186D8CA5A18EFC850"><enum>(B)</enum><header>Contents</header><text>The report shall include the lumen output and wattage consumption for each lamp type as an average of measurements taken over the preceding 12-month period.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3FE76AEA53A745F2A943E8F75DAF3C1C"><enum>(C)</enum><header>Other lamp types</header><text>With respect to lamp types that are not manufactured during the 12-month period preceding the date on which the standards become effective, the report shall—</text> <clause commented="no" display-inline="no-display-inline" id="H3EF2757C5E2044BC9F4DAA513129AC7A"><enum>(i)</enum><text>be filed with the Secretary not later than the date that is 12 months after the date on which manufacturing is commenced; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="HB332F50118C343CEBC2128148C4CFBA8"><enum>(ii)</enum><text>include the lumen output and wattage consumption for each such lamp type as an average of measurements taken during the 12-month period.</text> </clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HC2FF9B0A1FE8489EBAAA00265511ACFC" indent="up1"><enum>(13)</enum><text display-inline="yes-display-inline">Section 325(l)(4)(A) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(l)(4)(A)</external-xref>) (as amended by section 321(a)(3)(B) of the Energy Independence and Security Act of 2007 (121 Stat. 1581)) is amended by striking <quote>only</quote>.</text> </paragraph><paragraph id="H2593F7954C354E1E9A882F9FE3295F1F" indent="up1"><enum>(14)</enum><text>Section 327(b)(1)(B) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297(b)(1)(B)</external-xref>) (as amended by section 321(d)(3) of the Energy Independence and Security Act of 2007 (121 Stat. 1585)) is amended—</text> <subparagraph id="H45DDDE7728944B298053600D4CE8FF25"><enum>(A)</enum><text>in clause (i), by inserting <quote>and</quote> after the semicolon at the end;</text> </subparagraph><subparagraph id="HB5AF4A6A49534DF4A9AC2C8CEFB6C999"><enum>(B)</enum><text>in clause (ii), by striking <quote>; and</quote> and inserting a period; and</text> </subparagraph><subparagraph id="H6693D00784504350ACEDAD3BD2927B6C"><enum>(C)</enum><text>by striking clause (iii).</text> </subparagraph></paragraph><paragraph id="HDD8F05D34DB94DB885075715456B3D31" indent="up1"><enum>(15)</enum><text>Section 321(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1586) is amended—</text> <subparagraph id="H5356DDEC86BB4A7F86A6B9A24BCBDD67"><enum>(A)</enum><text>in the matter preceding paragraph (1), by striking <quote>is amended</quote> and inserting <quote>(as amended by section 306(b)) is amended</quote>; and</text> </subparagraph><subparagraph id="HC27F9EAFD86F4553A0FF4C7C6F142926"><enum>(B)</enum><text>by striking paragraphs (1) and (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H4792C89FB6FA41C89E9BC48413CB9930" style="OLC"> <paragraph id="H9FA78D4561DC44C382B58A0E49AB1914"><enum>(1)</enum><text>in paragraph (5), by striking <quote>or</quote> after the semicolon at the end;</text> </paragraph><paragraph id="H25E6B1DEE18F4B77AA0468C3888FDE09"><enum>(2)</enum><text>in paragraph (6), by striking the period at the end and inserting <quote>; or</quote>; and</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B18864282B04A888F0426E80A2B8582" indent="up1"><enum>(16)</enum><text>Section 332(a) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6302">42 U.S.C. 6302(a)</external-xref>) (as amended by section 321(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1586)) is amended by redesignating the second paragraph (6) as paragraph (7).</text> </paragraph><paragraph id="H1F667BE0ADBC4CE99835188958D6822B" indent="up1"><enum>(17)</enum><text>Section 321(30)(C)(ii) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291(30)(C)(ii)</external-xref>) (as amended by section 322(a)(1)(B) of the Energy Independence and Security Act of 2007 (121 Stat. 1587)) is amended by inserting a period after <quote>40 watts or higher</quote>.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H32A4032D7C8D4876B7C84FAC14699260" indent="up1"><enum>(18)</enum><text>Section 322(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1588)) is amended by striking <quote>6995(i)</quote> and inserting <quote>6295(i)</quote>.</text> </paragraph><paragraph id="HED302A623DFD491783E237C4299A7157" indent="up1"><enum>(19)</enum><text display-inline="yes-display-inline">Section 327(c) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297(c)</external-xref>) (as amended by sections 324(f) of the Energy Independence and Security Act of 2007 (121 Stat. 1594)) is amended—</text> <subparagraph id="H909C382CBD3F46B284CC603ADC8E55FD"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (6), by striking <quote>or</quote> after the semicolon at the end;</text> </subparagraph><subparagraph id="H35E7D14B0DD242348AA05ADC4140F11B"><enum>(B)</enum><text>in paragraph (8)(B), by striking <quote>and</quote> after the semicolon at the end;</text> </subparagraph><subparagraph id="H4914F5FF62DA4361BEC4590B1A5FE941"><enum>(C)</enum><text>in paragraph (9)—</text> <clause id="H7B88417706824E0E92D9FB23FABB8FD2"><enum>(i)</enum><text>by striking <quote>except that—</quote> and all that follows through <quote>if the Secretary fails to issue</quote> and inserting <quote>except that if the Secretary fails to issue</quote>;</text> </clause><clause id="H1F59A85984A549B4A35E69671A8C5840"><enum>(ii)</enum><text>by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively (and by moving the margins of such subparagraphs 2 ems to the left); and</text> </clause><clause id="H31C31BBE1171499E8EA21FEAB454B115"><enum>(iii)</enum><text>by striking the period at the end and inserting a semicolon; and</text> </clause></subparagraph><subparagraph id="HDACFB2A99CA9464DBD083D7E14BE2B3E"><enum>(D)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H52D7EA5257EE457B8908D588D116FAAD" style="OLC"> <paragraph id="HBE3D7EDD8E104C669DBF3D98A71E36A6"><enum>(10)</enum><text>is a regulation for general service lamps that conforms with Federal standards and effective dates;</text> </paragraph><paragraph id="HE425FA7D22F04F9FAB74BC7821ECDA75"><enum>(11)</enum><text>is an energy efficiency standard for general service lamps enacted into law by the State of Nevada prior to December 19, 2007, if the State has not adopted the Federal standards and effective dates pursuant to subsection (b)(1)(B)(ii); or</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H69C3D0D783F9451F9BD7A86E6A52FCEC" indent="up1"><enum>(20)</enum><text>Section 325(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1596)) is amended by striking <quote>6924(c)</quote> and inserting <quote>6294(c)</quote>.</text> </paragraph></subsection><subsection id="H11A8A16F9FE544B892899109E01F725D"><enum>(b)</enum><header>Title IV—Energy savings in buildings and industry</header><paragraph commented="no" display-inline="yes-display-inline" id="HC7B3CFC03837482FA091916D2E5584CE"><enum>(1)</enum><text display-inline="yes-display-inline">Section 401 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17061">42 U.S.C. 17061</external-xref>) is amended—</text> <subparagraph id="H2E7E260822D043DCA01377B39C3A518D" indent="up1"><enum>(A)</enum><text>in paragraph (2), by striking <quote>484</quote> and inserting <quote>494</quote>; and</text> </subparagraph><subparagraph id="H41109E2599BB47B7B0EFF0A8352EE59B" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (13), by striking <quote>Agency</quote> and inserting <quote>Administration</quote>.</text> </subparagraph></paragraph><paragraph id="HDCE0DED1E2D24F6EBE175B2D4F9F83E6" indent="up1"><enum>(2)</enum><text>Section 422 of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6872">42 U.S.C. 6872</external-xref>) (as amended by section 411(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1600)) is amended by striking 1 of the 2 periods at the end of paragraph (5).</text> </paragraph><paragraph id="H09E592F9BB0E465C869689619DC10CA6" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">Section 305(a)(3)(D)(i) of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6834">42 U.S.C. 6834(a)(3)(D)(i)</external-xref>) (as amended by section 433(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1612)) is amended—</text> <subparagraph id="H6AE08385792F432694DFF8687E56C9BF"><enum>(A)</enum><text>in subclause (I)—</text> <clause id="H11FEDE4CA65D4CC7A15F53C9D34CFF52"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>in fiscal year 2003 (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data from the Energy Information Agency</quote> and inserting <quote>as measured by the calendar year 2003 Commercial Buildings Energy Consumption Survey or the calendar year 2005 Residential Energy Consumption Survey data from the Energy Information Administration</quote>; and</text> </clause><clause id="H1420C9C4BF334C19BCB407A7A4B40CF8"><enum>(ii)</enum><text display-inline="yes-display-inline">in the table at the end, by striking <header-in-text level="section" style="USC"><quote>Fiscal Year</quote></header-in-text> and inserting <header-in-text level="section" style="USC"><quote>Calendar Year</quote></header-in-text>; and</text> </clause></subparagraph><subparagraph id="HA55D4E587527401E9538C1B633E44FBF"><enum>(B)</enum><text>in subclause (II)—</text> <clause id="H168FAA177A854750A3050883E12857DB"><enum>(i)</enum><text>by striking <quote>(II) Upon petition</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H8BC6ADBC2CEB40C6A1A3625A2D278DCE" style="OLC"> <subclause id="H2433EBCA46794016914CB90C7BD297BC"><enum>(II)</enum><header>Downward adjustment of numeric requirement</header> <item id="H478800D79A0D43CF8675D65FDBC51810"><enum>(aa)</enum><header>In general</header><text>On petition</text> </item></subclause><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause id="HBC50A4FB0C05435DB5D67B4C2E51A075"><enum>(ii)</enum><text>by striking the last sentence and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H18B7DF8526CC465B8787BD625D660E16" style="OLC"> <item id="HD9506D02CC894B53AF59103BCFD3C63F"><enum>(bb)</enum><header>Exceptions to requirement for concurrence of Secretary</header> <subitem id="H8344B8EA682640488273D31464F34C6C"><enum>(AA)</enum><header>In general</header><text>The requirement to petition and obtain the concurrence of the Secretary under this subclause shall not apply to any Federal building with respect to which the Administrator of General Services is required to transmit a prospectus to Congress under <external-xref legal-doc="usc" parsable-cite="usc/40/3307">section 3307</external-xref> of title 40, United States Code, or to any other Federal building designed, constructed, or renovated by the Administrator if the Administrator certifies, in writing, that meeting the applicable numeric requirement under subclause (I) with respect to the Federal building would be technically impracticable in light of the specific functional needs for the building.</text> </subitem><subitem id="H0E53619D79DC4BAC8F6D99879C987610"><enum>(BB)</enum><header>Adjustment</header><text>In the case of a building described in subitem (AA), the Administrator may adjust the applicable numeric requirement of subclause (I) downward with respect to the building.</text> </subitem></item><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph id="H45703CAB722845C89AA8D1DC686FCD1A" indent="up1"><enum>(4)</enum><text>Section 436(c)(3) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17092">42 U.S.C. 17092(c)(3)</external-xref>) is amended by striking <quote>474</quote> and inserting <quote>494</quote>.</text> </paragraph><paragraph id="HE9B894ABA03341DE90B999ED3B95EA06" indent="up1"><enum>(5)</enum><text>Section 440 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17096">42 U.S.C. 17096</external-xref>) is amended by striking <quote>and 482</quote>.</text> </paragraph><paragraph id="HCD600A1FD5F3433E9A386D020B65E9BD" indent="up1"><enum>(6)</enum><text>Section 373(c) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6343">42 U.S.C. 6343(c)</external-xref>) (as amended by section 451(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1628)) is amended by striking <quote>Administrator</quote> and inserting <quote>Secretary</quote>.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HB59350D26DD44A37A30544D5AD31C434"><enum>(c)</enum><header>Date of enactment</header><text>Section 1302 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17382">42 U.S.C. 17382</external-xref>) is amended in the first sentence by striking <quote>enactment</quote> and inserting <quote>the date of enactment of this Act</quote>.</text> </subsection><subsection id="HEBA9182E8CA4430D9AE8B1497F467D8C"><enum>(d)</enum><header>Reference</header><text>Section 1306(c)(3) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17386">42 U.S.C. 17386(c)(3)</external-xref>) is amended by striking <quote>section 1307 (paragraph (17) of section 111(d) of the Public Utility Regulatory Policies Act of 1978)</quote> and inserting <quote>paragraph (19) of section 111(d) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2621">16 U.S.C. 2621(d)</external-xref>)</quote>.</text> </subsection><subsection id="H53EF2A06314B405486065C55EBE6369C"><enum>(e)</enum><header>Effective date</header><text display-inline="yes-display-inline">This section and the amendments made by this section take effect as if included in the Energy Independence and Security Act of 2007 (<external-xref legal-doc="public-law" parsable-cite="pl/110/140">Public Law 110–140</external-xref>; 121 Stat. 1492).</text> </subsection></section><section display-inline="no-display-inline" id="HEDAF528AE9F94D6182234340C94A8ABD" section-type="subsequent-section"><enum>162.</enum><header>Technical corrections to Energy Policy Act of 2005</header> <subsection id="H4D4DCAE8DC8B4F49BC7CC116E9D3C199"><enum>(a)</enum><header>Title I—Energy efficiency</header><text>Section 325(g)(8)(C)(ii) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(g)(8)(C)(ii)</external-xref>) (as added by section 135(c)(2)(B) of the Energy Policy Act of 2005) is amended by striking <quote>20°F</quote> and inserting <quote>−20°F</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HF08AC2238DE14432B9019E9E599C9EF0"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">This section and the amendments made by this section take effect as if included in the Energy Policy Act of 2005 (<external-xref legal-doc="public-law" parsable-cite="pl/109/58">Public Law 109–58</external-xref>; 119 Stat. 594).</text> </subsection></section></subtitle><subtitle id="H5016D606A271476EB4384A7DEF65EBD2"><enum>H</enum><header>Energy and Efficiency Centers and Research</header> <section id="HB85CED7AD93E4E35B9A2B16C5E355138"><enum>171.</enum><header>Energy Innovation Hubs</header> <subsection id="HAC99E064034D421A93189585A8B64370"><enum>(a)</enum><header>Purpose</header><text>The Secretary shall carry out a program to establish Energy Innovation Hubs to enhance the Nation’s economic, environmental, and energy security by promoting commercial application of clean, indigenous energy alternatives to oil and other fossil fuels, reducing greenhouse gas emissions, and ensuring that the United States maintains a technological lead in the development and commercial application of state-of-the-art energy technologies. To achieve these purposes the program shall—</text> <paragraph id="H42CF8BAE3B084511BE20A74C01BB0CE4"><enum>(1)</enum><text>leverage the expertise and resources of the university and private research communities, industry, venture capital, national laboratories, and other participants in energy innovation to support cross-disciplinary research and development in areas not being served by the private sector in order to develop and transfer innovative clean energy technologies into the marketplace;</text> </paragraph><paragraph id="HEF77109438EA4DBA95777C0C142791D5"><enum>(2)</enum><text>expand the knowledge base and human capital necessary to transition to a low-carbon economy; and</text> </paragraph><paragraph id="H7687DCA7D4AD4FAC980DFF890EFD655C"><enum>(3)</enum><text>promote regional economic development by cultivating clusters of clean energy technology firms, private research organizations, suppliers, and other complementary groups and businesses.</text> </paragraph></subsection><subsection id="H3CB9B5CDF51C41269C653F74BBB38074"><enum>(b)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H78E1908D1D744A4099D4D15A559621F5"><enum>(1)</enum><header>Allowance</header><text>The term <quote>allowance</quote> means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).</text> </paragraph><paragraph id="HE82C134596CF45768872249F203F8E14"><enum>(2)</enum><header>Clean energy technology</header><text>The term <quote>clean energy technology</quote> means a technology that—</text> <subparagraph id="HA965403DFEDB491EA557D9602F5A5ADB"><enum>(A)</enum><text>produces energy from solar, wind, geothermal, biomass, tidal, wave, ocean, and other renewable energy resources (as such term is defined in section 610 of the Public Utility Regulatory Policies Act of 1978);</text> </subparagraph><subparagraph id="H9F1D3E3069194D99AE14E1FA6B5B1BA7"><enum>(B)</enum><text>more efficiently transmits, distributes, or stores energy;</text> </subparagraph><subparagraph id="HFD058E61914543AFBF0C5F2ACEFABE60"><enum>(C)</enum><text>enhances energy efficiency for buildings and industry, including combined heat and power;</text> </subparagraph><subparagraph id="H0EC2F15800164D4CAA76D6E03224E4F8"><enum>(D)</enum><text>enables the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17381">42 U.S.C. 17381</external-xref>)), including integration of renewable energy resources and distributed generation, demand response, demand side management, and systems analysis;</text> </subparagraph><subparagraph id="H97CEC2AA257C474A9164A865A6CEF889"><enum>(E)</enum><text>produces an advanced or sustainable material with energy or energy efficiency applications;</text> </subparagraph><subparagraph id="HB796207DE2E44BF6BCD04EE455833CB8"><enum>(F)</enum><text>enhances water security through improved water management, conservation, distribution, and end use applications; or</text> </subparagraph><subparagraph id="HEF2EEEB1167E443BB76F69E88DA779DB"><enum>(G)</enum><text>improves energy efficiency for transportation, including electric vehicles.</text> </subparagraph></paragraph><paragraph id="H63A44A46F16547129686800BF48987AB"><enum>(3)</enum><header>Cluster</header><text display-inline="yes-display-inline">The term <quote>cluster</quote> means a network of entities directly involved in the research, development, finance, and commercialization of clean energy technologies whose geographic proximity facilitates utilization and sharing of skilled human resources, infrastructure, research facilities, educational and training institutions, venture capital, and input suppliers.</text> </paragraph><paragraph id="HCE303552062848198FD712925BD97C5E"><enum>(4)</enum><header>Hub</header><text>The term <quote>Hub</quote> means an Energy Innovation Hub established in accordance with this section.</text> </paragraph><paragraph id="HFFD79080A50142969F4F6D96447CE558"><enum>(5)</enum><header>Project</header><text>The term <quote>project</quote> means an activity with respect to which a Hub provides support under subsection (e).</text> </paragraph><paragraph id="H48147FEE73AD45E18AE7859FD183ED0D"><enum>(6)</enum><header>Qualifying entity</header><text>The term <quote>qualifying entity</quote> means each of the following:</text> <subparagraph id="H9EEB7C206FB5471EBC922A4418FAC799"><enum>(A)</enum><text>A research university.</text> </subparagraph><subparagraph id="HB4D52B583A034591BBA1029AEAE7DE0B"><enum>(B)</enum><text>A State or Federal institution with a focus on the advancement of clean energy technologies.</text> </subparagraph><subparagraph id="HA0DC070E15964483B247CC8EC3F1DBAD"><enum>(C)</enum><text>A nongovernmental organization with research or commercialization expertise in clean energy technology development.</text> </subparagraph></paragraph><paragraph id="HF4B3FEA4DB1F4A7CBE7A504F2C12D4B7"><enum>(7)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of Energy.</text> </paragraph><paragraph id="HB7ABFA4A266B4433BAF83D490659E5FB"><enum>(8)</enum><header>Technology development focus</header><text>The term <quote>technology development focus</quote> means the unique technology development areas in which a Hub will specialize, and may include solar electricity, fuels from solar energy, batteries and energy storage, electricity grid systems and devices, energy efficient building systems and design, advanced materials, modeling and simulation, and other clean energy technology development areas designated by the Secretary.</text> </paragraph><paragraph id="HC35AFD7C13FE4B7B9998874388CA0DCE"><enum>(9)</enum><header>Translational research</header><text>The term <quote>translational research</quote> means coordination of basic or applied research with technical and commercial applications to enable promising discoveries or inventions to attract investment sufficient for market penetration and diffusion.</text> </paragraph><paragraph id="H62D2C164EBA54C989D06D6B6ACE7A707"><enum>(10)</enum><header>Vintage year</header><text>The term <quote>vintage year</quote> has the meaning given that term in section 700 of the Clean Air Act (as added by section 312 of this Act).</text> </paragraph></subsection><subsection id="H183CFBF3DBCC4E05A2776D59CEA2ACA8"><enum>(c)</enum><header>Role of the secretary</header><text>The Secretary shall—</text> <paragraph id="H02EC14C2B0824D3F9C5ED5D9307B0BAA"><enum>(1)</enum><text>have ultimate responsibility for, and oversight of, all aspects of the program under this section;</text> </paragraph><paragraph id="H54A4FEB0A2064E5AAB264ACDB6D0743A"><enum>(2)</enum><text display-inline="yes-display-inline">provide for the distribution of allowances allocated under section 782(h)(1) of the Clean Air Act (as added by section 321 of this Act) to support the establishment of 8 Hubs, each with a unique designated technology development focus, pursuant to this section;</text> </paragraph><paragraph id="H76879D14F06142B2BBF90FC75E1D713E"><enum>(3)</enum><text display-inline="yes-display-inline">coordinate the innovation activities of Hubs with those occurring through other Department of Energy entities, including the National Laboratories, the Advanced Research Projects Agency—Energy, and Energy Frontier Research Collaborations, and within industry, including by annually—</text> <subparagraph id="H60B3748057FE48E9A16CB46443F127BA"><enum>(A)</enum><text>issuing guidance regarding national energy research and development priorities and strategic objectives; and</text> </subparagraph><subparagraph id="H6EBAF78BA14D46DF9DA183C22762CC40"><enum>(B)</enum><text>convening a conference of staff of the Department of Energy and representatives from such other entities to share research results, program plans, and opportunities for collaboration.</text> </subparagraph></paragraph></subsection><subsection id="H6EF143D47A114582932800B5FD4F7931"><enum>(d)</enum><header>Entities eligible for support</header><text>A consortium shall be eligible to receive allowances to support the establishment of a Hub under this section if—</text> <paragraph id="H88E7C19E019E4D78A5F2016A7427095F"><enum>(1)</enum><text>it is composed of—</text> <subparagraph id="H0E2FA11BC1AF41FC9FBB59C0AD4FA33A"><enum>(A)</enum><text>2 research universities with a combined annual research budget of $500,000,000; and</text> </subparagraph><subparagraph id="HF17A97A829214E12B3191095A470D3E6"><enum>(B)</enum><text>1 or more additional qualifying entities;</text> </subparagraph></paragraph><paragraph id="H6BA54955C5C747C3A06C2D62A0984D14"><enum>(2)</enum><text>its members have established a binding agreement that documents—</text> <subparagraph id="H3C79D83B390A41C7B6D6B4C1DDE5F993"><enum>(A)</enum><text>the structure of the partnership agreement;</text> </subparagraph><subparagraph id="H08613B79DE9A4AC4B1A9AF51861E05F3"><enum>(B)</enum><text>a governance and management structure to enable cost-effective implementation of the program;</text> </subparagraph><subparagraph id="H24A07789A0F14C3FA8F26394668286E4"><enum>(C)</enum><text>an intellectual property management policy;</text> </subparagraph><subparagraph id="H6AEAA710894148F69ABD9F0F29A77BEC"><enum>(D)</enum><text>a conflicts of interest policy consistent with subsection (e)(4);</text> </subparagraph><subparagraph id="H368E5CDDFEEB48D49EE8295219FA6424"><enum>(E)</enum><text>an accounting structure that meets the requirements of the Department of Energy and can be audited under subsection (f)(5); and</text> </subparagraph><subparagraph id="H27C11739A51B4580AE0D7034014C2541"><enum>(F)</enum><text>that it has an Advisory Board consistent with subsection (e)(3);</text> </subparagraph></paragraph><paragraph id="H8E21EBF66CC546CEA99A51AA60918A5E"><enum>(3)</enum><text>it receives financial contributions from States, consortium participants, or other non-Federal sources, to be used to support project awards pursuant to subsection (e);</text> </paragraph><paragraph id="HE26C98A6B8ED43F9B924C3A50AA2280E"><enum>(4)</enum><text>it is part of an existing cluster or demonstrates high potential to develop a new cluster; and</text> </paragraph><paragraph id="HB22EA6EA20FD4E28B6C16C64C22F395E"><enum>(5)</enum><text>it operates as a nonprofit organization.</text> </paragraph></subsection><subsection id="H4F218E8F6868445EB93EE5FEE98DA52B"><enum>(e)</enum><header>Energy innovation hubs</header> <paragraph id="H33A27C8CBEB84F0498DAC19C45C8112A"><enum>(1)</enum><header>Role</header><text>Hubs receiving allowances under this section shall support translational research activities leading to commercial application of clean energy technologies, in accordance with the purposes of this section, through issuance of awards to projects managed by qualifying entities and other entities meeting the Hub’s project criteria, including national laboratories. Each such Hub shall—</text> <subparagraph id="HE0A69AC85A594AA6A319CC80F3DCD847"><enum>(A)</enum><text>develop and publish for public review and comment proposed plans, programs, project selection criteria, and terms for individual project awards under this subsection;</text> </subparagraph><subparagraph id="H2CBE12F52830486B814BE4D43116B503"><enum>(B)</enum><text>submit an annual report to the Secretary summarizing the Hub’s activities, organizational expenditures, and Board members, which shall include a certification of compliance with conflict of interest policies and a description of each project in the research portfolio;</text> </subparagraph><subparagraph id="HC62CDA5C27BF48FA90702888FCDD12AE"><enum>(C)</enum><text>establish policies—</text> <clause id="HE28B1989AFCE48E6AA28B458CA9B736E"><enum>(i)</enum><text>regarding intellectual property developed as a result of Hub awards and other forms of technology support that encourage individual ingenuity and invention while speeding technology transfer and facilitating the establishment of rapid commercialization pathways;</text> </clause><clause id="H25107FE547484734912276D4E251F0EF"><enum>(ii)</enum><text>to prevent resources provided to the Hub from being used to displace private sector investment otherwise likely to occur, including investment from private sector entities that are members of the consortium;</text> </clause><clause id="HA12FC9398AEE47DBB8E43650A4A79BE4"><enum>(iii)</enum><text>to facilitate the participation of private investment firms or other private entities that invest in clean energy technologies to perform due diligence on award proposals, to participate in the award review process, and to provide guidance to projects supported by the Hub; and</text> </clause><clause id="H6E6D3DC7728F4940B4F240F1368944A8"><enum>(iv)</enum><text>to facilitate the participation of entrepreneurs with a demonstrated history of developing and commercializing clean energy technologies;</text> </clause></subparagraph><subparagraph id="HF1ABA8E57E034015AE55D1FDD35866DB"><enum>(D)</enum><text>oversee project solicitations, review proposed projects, and select projects for awards; and</text> </subparagraph><subparagraph id="H54F41E4170AE462981EAD923955441AB"><enum>(E)</enum><text>monitor project implementation.</text> </subparagraph></paragraph><paragraph id="HD623C13256474B4AB13BD6DA97C7EFD1"><enum>(2)</enum><header>Distribution of awards by hubs</header><text>A Hub shall distribute awards under this subsection to support clean energy technology projects conducting translational research and related activities, provided that at least 50 percent of such support shall be provided to projects related to the Hub’s technology development focus.</text> </paragraph><paragraph id="H3AB8DE16611F4076A00B0722FB21E7BA"><enum>(3)</enum><header>Advisory boards</header> <subparagraph id="H9D7C066110024DB49B47EDF2C4A19B90"><enum>(A)</enum><header>In general</header><text>Each Hub shall establish an Advisory Board, the members of which shall have extensive and relevant scientific, technical, industry, financial, or research management expertise. The Advisory Board shall review the Hub’s proposed plans, programs, project selection criteria, and projects and shall ensure that projects selected for awards meet the conflict of interest policies of the Hub. Advisory Board members other than those representing consortium members shall serve for no more than 3 years. All Advisory Board members shall comply with the Hub’s conflict of interest policies and procedures.</text> </subparagraph><subparagraph id="H1D6D5940E1BC4A01B6BFEE0F9F936175"><enum>(B)</enum><header>Members</header><text>Each Advisory Board shall consist of—</text> <clause id="HB4685E9C00544B9892434CC9A59B73C5"><enum>(i)</enum><text>5 members selected by the consortium’s research universities;</text> </clause><clause id="H44B8411B25094951B29BDFF3D62DC4C8"><enum>(ii)</enum><text>2 members selected by the consortium’s other qualifying entities;</text> </clause><clause id="H8186C6A53BB1410F8B51C97894C38068"><enum>(iii)</enum><text>2 members selected at large by other Advisory Board members to represent the entrepreneur and venture capital communities; and</text> </clause><clause id="H1248704CD76A4419ABE50923FBEFBCF7"><enum>(iv)</enum><text>1 member appointed by the Secretary.</text> </clause></subparagraph><subparagraph id="H5F3FC9F514BB4FAE86823A2DB1F4D0C6"><enum>(D)</enum><header>Compensation</header><text>Members of an Advisory Board may receive reimbursement for travel expenses and a reasonable stipend.</text> </subparagraph></paragraph><paragraph id="H5EC71B9C10764E089245E8F277D6E255"><enum>(4)</enum><header>Conflict of interest</header> <subparagraph id="H3A46DB8723FC47B5962DC4F4655CECD6"><enum>(A)</enum><header>Procedures</header><text>Hubs shall establish procedures to ensure that any employee or consortia designee for Hub activities who serves in a decisionmaking capacity shall—</text> <clause id="H37877EE2361647E7814FD2039A71997D"><enum>(i)</enum><text>disclose any financial interests in, or financial relationships with, applicants for or recipients of awards under this subsection, including those of his or her spouse or minor child, unless such relationships or interests would be considered to be remote or inconsequential; and</text> </clause><clause id="H1933FB1614D4403FAF9DA943E8B75C20"><enum>(ii)</enum><text>recuse himself or herself from any funding decision for projects in which he or she has a personal financial interest.</text> </clause></subparagraph><subparagraph id="HDABB13FA8DE04320856398D76C238DA1"><enum>(B)</enum><header>Disqualification and revocation</header><text>The Secretary may disqualify an application or revoke allowances distributed to the Hub or awards provided under this subsection, if cognizant officials of the Hub fail to comply with procedures required under subparagraph (A).</text> </subparagraph></paragraph></subsection><subsection id="HBE606968CB0248D8ABDA49CCDC988ECD"><enum>(f)</enum><header>Distribution of allowances to energy innovation hubs</header> <paragraph id="H6891C5E76C754A60977709CA426A56C6"><enum>(1)</enum><header>Distribution of allowances</header><text>Not later than September 30 of 2011 and each calendar year thereafter through 2049, the Secretary shall, in accordance with the requirements of this section, distribute to eligible consortia allowances allocated for the following vintage year under section 782(h)(1) of the Clean Air Act (as added by section 321 of this Act). Not less than 10 percent and not more than 30 percent of the allowances available for distribution in any given year shall be distributed to support any individual Hub under this section.</text> </paragraph><paragraph id="H1EF7C53EB727455D929328AFCE6BB22F"><enum>(2)</enum><header>Selection and schedule</header><text display-inline="yes-display-inline">Allowances to support the establishment of a Hub shall be distributed to eligible consortia (as defined in subsection (d)) selected through a competitive process. Not later than 120 days after the date of enactment of this Act, the Secretary shall solicit proposals from eligible consortia to establish Hubs, which shall be submitted not later than 180 days after the date of enactment of this Act. The Secretary shall select the program consortia not later than 270 days after the date of enactment of this Act. For at least 3 awards to consortia under this section, the Secretary shall give special consideration to applications in which 1 or more of the institutions under subsection (d)(1)(A) are 1890 Land Grant Institutions (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/7/7061">7 U.S.C. 7061</external-xref>)), Predominantly Black Institutions (as defined in section 318 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1059e">20 U.S.C. 1059e</external-xref>)), Tribal Colleges or Universities (as defined in section 316(b) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1059c">20 U.S.C. 1059c(b)</external-xref>), or Hispanic Serving Institutions (as defined in section 318 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1059e">20 U.S.C. 1059e</external-xref>)).</text> </paragraph><paragraph id="HBEE71539720A443A90D1E4E72DA23470"><enum>(3)</enum><header>Amount and term of awards</header><text>For each Hub selected to receive an award under this subsection, the Secretary shall define a quantity of allowances that shall be distributed to such Hub each year for an initial period not to exceed 5 years. The Secretary may extend the term of such award by up to 5 additional years, and a Hub may compete to receive an increase in the quantity of allowances per year that it shall receive during any such extension. A Hub shall be eligible to compete for a new award after the expiration of the term of any award, including any extension of such term, under this subsection.</text> </paragraph><paragraph id="H76CD67AA3C914C068121FE57EFE23828"><enum>(4)</enum><header>Use of allowances</header><text display-inline="yes-display-inline">Allowances distributed under this section shall be used exclusively to support project awards pursuant to subsection (e)(1) and (2), provided that a Hub may use not more than 10 percent of the value of such allowances for its administrative expenses related to making such awards. Allowances distributed under this section shall not be used for construction of new buildings or facilities for Hubs, and construction of new buildings or facilities shall not be considered as part of the non-Federal share of a cost sharing agreement under this section.</text> </paragraph><paragraph id="HE65C3FAAF55F4416955B3B6CAE66A4FA"><enum>(5)</enum><header>Audit</header><text>Each Hub shall conduct, in accordance with such requirements as the Secretary may prescribe, an annual audit to determine the extent to which allowances distributed to the Hub under this subsection, and awards under subsection (e), have been utilized in a manner consistent with this section. The auditor shall transmit a report of the results of the audit to the Secretary and to the Government Accountability Office. The Secretary shall include such report in an annual report to Congress, along with a plan to remedy any deficiencies cited in the report. The Government Accountability Office may review such audits as appropriate and shall have full access to the books, records, and personnel of the Hub to ensure that allowances distributed to the Hub under this subsection, and awards made under subsection (e), have been utilized in a manner consistent with this section.</text> </paragraph><paragraph id="HFFB2E9CF3731467BBB9A313E04B99304"><enum>(6)</enum><header>Revocation of allowances</header><text>The Secretary shall have authority to review awards made under this subsection and to revoke such awards if the Secretary determines that a Hub has used the award in a manner not consistent with the requirements of this section.</text> </paragraph></subsection></section><section id="HCF8D9388ED9F4BB49A0C4E93E5D0EE7D"><enum>172.</enum><header>Advanced energy research</header> <subsection id="HAF0C082FA3EE4F44A9B52C0F6DE17501"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H2A998E1E36E14A009AF057262022F3EF"><enum>(1)</enum><header>Allowance</header><text display-inline="yes-display-inline">The term <quote>allowance</quote> means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).</text> </paragraph><paragraph id="HFA55E12F1FA346A1B28E8900C7698FB4"><enum>(2)</enum><header>Director</header><text>The term <quote>Director</quote> means Director of the Advanced Research Projects Agency-Energy.</text> </paragraph></subsection><subsection id="H6951A50E99FF4620BC5F97CF35602CD1"><enum>(b)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than September 30 of 2011 and each calendar year thereafter through 2049, the Director shall distribute allowances allocated for the following vintage year under section 782(h)(2) of the Clean Air Act (as added by section 321 of this Act). Such allowances shall be distributed on a competitive basis to institutions of higher education, companies, research foundations, trade and industry research collaborations, or consortia of such entities, or other appropriate research and development entities to achieve the goals of the Advanced Research Projects Agency-Energy (as described in section 5012(c) of the America COMPETES Act) through targeted acceleration of—</text> <paragraph id="HBD0C1B86899B42A182F5727B52BB1F1C"><enum>(1)</enum><text>novel early-stage energy research with possible technology applications;</text> </paragraph><paragraph id="H92A644CC9C94480F98553C721082BBFC"><enum>(2)</enum><text>development of techniques, processes, and technologies, and related testing and evaluation;</text> </paragraph><paragraph id="H719BF28CA0B4434CAC2A1D34BA9870AE"><enum>(3)</enum><text>development of manufacturing processes for technologies; and</text> </paragraph><paragraph id="H9721C13CDB6B462F99761E51E9A4D9A8"><enum>(4)</enum><text>demonstration and coordination with nongovernmental entities for commercial applications of technologies and research applications.</text> </paragraph></subsection><subsection id="H02E8EFC6455545D0AC9301D205B09C51"><enum>(c)</enum><header>Responsibilities</header><text display-inline="yes-display-inline">The Director shall be responsible for assessing the success of programs and terminating programs carried out under this section that are not achieving the goals of the programs, consistent with 5012(e)(2) and (4) of the America COMPETES Act. The Director shall designate program managers whose responsibilities are consistent with 5012(f)(1)(B) of the America COMPETES Act. The Director’s reporting and coordination requirements established through 5012(g) and (h) of the America COMPETES Act shall apply to activities funded through this section.</text> </subsection><subsection id="HFD2196F8B73E4AFF9F2EB77C19171A63"><enum>(d)</enum><header>Supplement not supplant</header><text>Assistance provided under this section shall be used to supplement, and not to supplant, any other Federal resources available to carry out activities described in this section.</text> </subsection></section><section id="HCBE8128C68CC4487AD45D47219C75DBE"><enum>173.</enum><header>Building Assessment Centers</header> <subsection id="HC0F6B7E93B9544F1A317974B1FE31A80"><enum>(a)</enum><header>In general</header><text>The Secretary of Energy (in this section referred to as the <quote>Secretary</quote>) shall provide funding to institutions of higher education for Building Assessment Centers to—</text> <paragraph id="H011B1C6FA650477E988D358D37E3CC11"><enum>(1)</enum><text display-inline="yes-display-inline">identify opportunities for optimizing energy efficiency and environmental performance in existing buildings;</text> </paragraph><paragraph id="HC139AB493E094628A3FFE718F08065C8"><enum>(2)</enum><text>promote high-efficiency building construction techniques and materials options;</text> </paragraph><paragraph id="HED95D0FC5BB441CBAF9CBDC7EB210602"><enum>(3)</enum><text>promote applications of emerging concepts and technologies in commercial and institutional buildings;</text> </paragraph><paragraph id="H063F8DDA7FE6482E8AEC92F84006530C"><enum>(4)</enum><text>train engineers, architects, building scientists, and building technicians in energy-efficient design and operation;</text> </paragraph><paragraph id="H6B33D00BE22141B481142F8785FAA6A5"><enum>(5)</enum><text>assist local community colleges, trade schools, registered apprenticeship programs and other accredited training programs in training building technicians;</text> </paragraph><paragraph id="H12E76A9FF1AE495088B76A4D0AB72D8B"><enum>(6)</enum><text>promote research and development for the use of alternative energy sources to supply heat and power, for buildings, particularly energy-intensive buildings; and</text> </paragraph><paragraph id="H3BD8E0EB1AD743C0B980E94FD38C995A"><enum>(7)</enum><text>coordinate with and assist State-accredited technical training centers and community colleges, while ensuring appropriate services to all regions of the United States.</text> </paragraph></subsection><subsection id="HB410D32B0CCC4971AD089CCC69261FFC"><enum>(b)</enum><header>Coordination with regional Centers for Energy and Environmental Knowledge and Outreach</header><text display-inline="yes-display-inline">A Building Assessment Center may serve as a Center for Energy and Environmental Knowledge and Outreach established pursuant to section 174.</text> </subsection><subsection id="HD64343C7309C49B39950BD4DB346BC5F"><enum>(c)</enum><header>Coordination and duplication</header><text>The Secretary shall coordinate efforts under this section with other programs of the Department of Energy and other Federal agencies to avoid duplication of effort.</text> </subsection><subsection id="H6C1E5782F4B04835B879398024E1CB41"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary to carry out this section $50,000,000 for fiscal year 2010 and each fiscal year thereafter.</text> </subsection></section><section id="H705846449EC14A069924E8BE00A1925A"><enum>174.</enum><header>Centers for Energy and Environmental Knowledge and Outreach</header> <subsection id="H2D1EC244B1844C23A297C7582F7EB907"><enum>(a)</enum><header>Regional Centers for Energy and Environmental Knowledge and Outreach</header> <paragraph id="H76D4C6754D2C45D5A0F8BAA7E7A825F6"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary shall establish not more than 10 regional Centers for Energy and Environmental Knowledge and Outreach at institutions of higher education to coordinate with and advise industrial research and assessment centers, Building Assessment Centers, and Clean Energy Application Centers located in the region of such Center for Energy and Environmental Knowledge and Outreach.</text> </paragraph><paragraph id="HA911906FB1E245D7BC9579F4D89DBD01"><enum>(2)</enum><header>Technical assistance programs</header><text>Each Center for Energy and Environmental Knowledge and Outreach shall consist of at least one, new or existing, high performing, of the following:</text> <subparagraph id="HFC4F6138E1AD42A6BD9FB29CD1C9F9E8"><enum>(A)</enum><text>An industrial research and assessment center.</text> </subparagraph><subparagraph id="H97A6E31DB64A47098F952055278B1774"><enum>(B)</enum><text>A Clean Energy Application Center.</text> </subparagraph><subparagraph id="HE4E7E555998244B4814D582651CF8105"><enum>(C)</enum><text>A Building Assessment Center.</text> </subparagraph></paragraph><paragraph id="H6990DA0AE3684E2EA81443B6C9AEA371"><enum>(3)</enum><header>Selection criteria</header><text display-inline="yes-display-inline">The Secretary shall select Centers for Energy and Environmental Knowledge and Outreach through a competitive process, based on the following:</text> <subparagraph id="H24F21C293D834A3EA385BB6A878F7BB0"><enum>(A)</enum><text display-inline="yes-display-inline">Identification of the highest performing industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.</text> </subparagraph><subparagraph id="HEC422F6A5F604D1FB7B6C6409C4A9BDA"><enum>(B)</enum><text display-inline="yes-display-inline">The degree to which an institution of higher education maintains credibility among regional private sector organizations such as trade associations, engineering associations, and environmental organizations.</text> </subparagraph><subparagraph id="HFB621827C578448AB484B419958A8252"><enum>(C)</enum><text display-inline="yes-display-inline">The degree to which an institution of higher education is providing or has provided technical assistance, academic leadership, and market leadership in the energy arena in a manner that is consistent with the areas of focus of industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.</text> </subparagraph><subparagraph id="H60D777E9376C4A7CB6FF93CDD84EC64C"><enum>(D)</enum><text display-inline="yes-display-inline">The presence of an additional industrial research and assessment center, Clean Energy Application Center, or Building Assessment Center at the institution of higher education.</text> </subparagraph></paragraph><paragraph id="HF5267BF92D7E40AFBEE9B0E131F4B43D"><enum>(4)</enum><header>Geographic diversity</header><text display-inline="yes-display-inline">In selecting Centers for Energy and Environmental Knowledge and Outreach under this subsection, the Secretary shall ensure such Centers are distributed geographically in a relatively uniform manner to ensure all regions of the Nation are represented.</text> </paragraph><paragraph id="H30B5BA4DB48742F78322CA0644F5541B"><enum>(5)</enum><header>Regional leadership</header><text display-inline="yes-display-inline">Each Center for Energy and Environmental Knowledge and Outreach shall, to the extent possible, provide leadership to all other industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers located in the Center's geographic region, as determined by the Secretary. Such leadership shall include—</text> <subparagraph id="H31D7082A29A64556A83C7108977D11AE"><enum>(A)</enum><text display-inline="yes-display-inline">developing regional goals specific to the purview of the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers programs;</text> </subparagraph><subparagraph id="H15C660C2632E43F194B6B3086F3B6C8D"><enum>(B)</enum><text>developing regionally specific technical resources; and</text> </subparagraph><subparagraph id="H7ABD13B2608341ABA50D1807136C358A"><enum>(C)</enum><text display-inline="yes-display-inline">outreach to interested parties in the region to inform them of the information, resources, and services available through the associated industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.</text> </subparagraph></paragraph><paragraph id="H970E9A535EF84B159FE61E1E935C1C00"><enum>(6)</enum><header>Further coordination</header><text display-inline="yes-display-inline">To increase the value and capabilities of the regionally associated industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers programs, Centers for Energy and Environmental Knowledge and Outreach shall—</text> <subparagraph id="HEF4EB2AFF73E495EB770F5BF78EE0133"><enum>(A)</enum><text display-inline="yes-display-inline">coordinate with Manufacturing Extension Partnership Centers of the National Institute of Science and Technology;</text> </subparagraph><subparagraph id="H52A3443DB73B49A3BE553FE043BD154E"><enum>(B)</enum><text>coordinate with the relevant programs in the Department of Energy, including the Building Technology Program and Industrial Technologies Program;</text> </subparagraph><subparagraph id="H50A458D2299841F8BC283E43E8198E0A"><enum>(C)</enum><text display-inline="yes-display-inline">increase partnerships with the National Laboratories of the Department of Energy to leverage the expertise and technologies of the National Laboratories to achieve the goals of the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers;</text> </subparagraph><subparagraph id="H581FE9F82E224556A5E63AD7D393A8FA"><enum>(D)</enum><text>work with relevant municipal, county, and State economic development entities to leverage relevant financial incentives for capital investment and other policy tools for the protection and growth of local business and industry;</text> </subparagraph><subparagraph id="HD61453EF7B374C6D8116619EA5F0B50F"><enum>(E)</enum><text display-inline="yes-display-inline">partner with local professional and private trade associations and business development interests to leverage existing knowledge of local business challenges and opportunities;</text> </subparagraph><subparagraph id="H7AFD7BDC33DB438089554E7FD9626B89"><enum>(F)</enum><text>work with energy utilities and other administrators of publicly funded energy programs to leverage existing energy efficiency and clean energy programs;</text> </subparagraph><subparagraph id="H9B534F8F33AE482ABB0C340DF46085CB"><enum>(G)</enum><text>identify opportunities for reducing greenhouse gas emissions; and</text> </subparagraph><subparagraph id="HC2A7575326B741888087959E28EF6ED6"><enum>(H)</enum><text display-inline="yes-display-inline">promote sustainable business practices for those served by the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.</text> </subparagraph></paragraph><paragraph id="HCA9FF2B0EF73403CAAAD2BC038438119"><enum>(7)</enum><header>Workforce Training</header> <subparagraph id="H7C0DF933231F45F3856848F67E2B137C"><enum>(A)</enum><header>In general</header><text>The Secretary shall require each Center for Energy and Environmental Knowledge and Outreach to establish or maintain an internship program for the region of such Center, designed to encourage students who perform energy assessments to continue working with a particular company, building, or facility to help implement the recommendations contained in any such assessment provided to such company, building, or facility. Each Center for Energy and Environmental Knowledge and Outreach shall act as internship coordinator to help match students to available opportunities.</text> </subparagraph><subparagraph id="H729E0547CD6A4A37A309490612B6D1EF"><enum>(B)</enum><header>Federal Share</header><text>The Federal share of the cost of carrying out internship programs described under subparagraph (A) shall be 50 percent.</text> </subparagraph><subparagraph id="H77BE6D00E7E54FC48E41B64F456AA329"><enum>(C)</enum><header>Funding</header><text>Subject to the availability of appropriations, of the funds made available to carry out this subsection, the Secretary shall use to carry out this paragraph not less than $5,000,000 for fiscal year 2010 and each fiscal year thereafter.</text> </subparagraph></paragraph><paragraph id="H3E146410BE194528A5FBEF275BFA1E5D"><enum>(8)</enum><header>Small Business Loans</header><text display-inline="yes-display-inline">The Administrator of the Small Business Administration shall, to the maximum practicable, expedite consideration of applications from eligible small business concerns for loans under the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/631">15 U.S.C. 631 et seq.</external-xref>) for loans to implement recommendations of any industrial research and assessment center, Clean Energy Application Center, or Building Assessment Center.</text> </paragraph><paragraph commented="no" id="H0BC3D29F5E2140D0B83B7B761A918791"><enum>(9)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph commented="no" id="H672738EE85A14C6EA6443F996939925E"><enum>(A)</enum><header>Industrial research and assessment center</header><text display-inline="yes-display-inline">The term <term>industrial research and assessment center</term> means a center established or maintained pursuant to section 452(e) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17111">42 U.S.C. 17111(e)</external-xref>).</text> </subparagraph><subparagraph commented="no" id="H3FA2EDD39FC14B74BE1FB0CA85E18586"><enum>(B)</enum><header>Clean Energy Application Center</header><text display-inline="yes-display-inline">The term <term>Clean Energy Application Center</term> means a center redesignated and described section under section 375 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6345">42 U.S.C. 6345</external-xref>).</text> </subparagraph><subparagraph commented="no" id="H436CE33FE54E4A0C83F77FC57C7FC63D"><enum>(C)</enum><header>Building Assessment Center</header><text display-inline="yes-display-inline">The term <term>Building Assessment Center</term> means an institution of higher education-based center established pursuant to section 173.</text> </subparagraph><subparagraph id="H26E9BFA8878D46CAAC9B00548EA8571F"><enum>(D)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text> </subparagraph></paragraph><paragraph id="H11F1E6F42EAE443E9E10BB2195E62F98"><enum>(10)</enum><header>Funding</header><text display-inline="yes-display-inline">There are authorized to be appropriated to the Secretary to carry out this subsection $10,000,000 for fiscal year 2010 and each fiscal year thereafter. Subject to the availability of appropriations, of the funds made available to carry out this subsection, the Secretary shall provide to each Center for Energy and Environmental Knowledge and Outreach not less than $500,000 for fiscal year 2010 and each fiscal year thereafter.</text> </paragraph></subsection><subsection id="H871B7A24E10F49F9AA248D01A0A24304"><enum>(b)</enum><header>Integration of other technical assistance programs</header> <paragraph id="H081A7991FF3A48FE9A8307F0CEB7FA82"><enum>(1)</enum><header>Clean Energy Application Centers</header><text display-inline="yes-display-inline">Section 375 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6345">42 U.S.C. 6345</external-xref>) is amended—</text> <subparagraph id="HD051B32A94234C25AA0ED5AEC55FE164"><enum>(A)</enum><text>by redesignating subsection (f) as subsection (g); and</text> </subparagraph><subparagraph id="H8B9CBC45B9384E0994DB47CCD6D842F5"><enum>(B)</enum><text>by adding after subsection (e) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HEF3A124D1AEE4CCF813307F69370741E" style="OLC"> <subsection id="H2FD2B7C56BBC4D05BE77793A251841E7"><enum>(f)</enum><header>Coordination with Centers for Energy and Environmental Knowledge and Outreach</header><text display-inline="yes-display-inline">A Clean Energy Application Center may serve as a Center for Energy and Environmental Knowledge and Outreach established pursuant to section 174 of the <short-title>American Clean Energy and Security Act of 2009</short-title>.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="HAE8202CCF2C64AFD940EBAA030689DB5"><enum>(2)</enum><header>Industrial research and assessment centers</header><text display-inline="yes-display-inline">Section 452(e) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17111">42 U.S.C. 17111(e)</external-xref>) is amended—</text> <subparagraph id="HC1165EA4554646C38A7B178BE10E8D96"><enum>(A)</enum><text>by striking <quote>The Secretary</quote> and all that follows through <quote>shall be—</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H024CA93E74A54B3BB31C89AEB1BB3D84" style="OLC"> <paragraph id="HA42E79B41C854AA0A6BFA33BD2753B6C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall provide funding to institution of higher education-based industrial research and assessment centers, whose purposes shall be—</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph id="H475F3494BD114911AB06BE5BA5F1915F"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively (and by moving the margins of such subparagraphs 2 ems to the right); and</text> </subparagraph><subparagraph id="HF941B0070B7F4FC5B57D7AE19461B914"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HD6293289195F4DA7AD980DA34260A883" style="OLC"> <paragraph id="HE126CAFF576E4B9E991A34F50C899131"><enum>(2)</enum><header>Coordination with Centers for Energy and Environmental Knowledge and Outreach</header><text display-inline="yes-display-inline">An industrial research and assessment center may serve as a Center for Energy and Environmental Knowledge and Outreach established pursuant to section 174 of the <short-title>American Clean Energy and Security Act of 2009</short-title>.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="H3C69086460004B518DB752099A29EAA9"><enum>(c)</enum><header>Additional funding for Clean Energy Application Centers</header><text display-inline="yes-display-inline">Subsection (g) of section 375 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6345">42 U.S.C. 6345(f)</external-xref>), as redesignated by subsection (b)(1) of this section, is amended by striking <quote>$10,000,000 for each of fiscal years 2008 through 2012</quote> and inserting <quote>$30,000,000 for fiscal year 2010 and each fiscal year thereafter</quote>.</text> </subsection></section><section id="H9AD18A2BE37246E5A42EC022268C581B"><enum>175.</enum><header>High efficiency gas turbine research, development, and demonstration</header> <subsection id="H41493DE7EB90462B858ED472633156C5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Energy shall carry out a multiyear, multiphase program of research, development, and technology demonstration to improve the efficiency of gas turbines used in combined cycle power generation systems and to identify the technologies that ultimately will lead to gas turbine combined cycle efficiency of 65 percent.</text> </subsection><subsection id="HA3297C5E9A8C4752A863B6382038A514"><enum>(b)</enum><header>Program elements</header><text>The program under this section shall—</text> <paragraph id="H58FC61AE58B24A84B887F08785F1858A"><enum>(1)</enum><text>support first-of-a-kind engineering and detailed gas turbine design for utility-scale electric power generation, including—</text> <subparagraph id="H89AE0DC2C1FD4B64BDDE55CE1716E4F1"><enum>(A)</enum><text>high temperature materials, including superalloys, coatings, and ceramics;</text> </subparagraph><subparagraph id="H0ADBFAD81A0F4F999042820BFB5BD080"><enum>(B)</enum><text>improved heat transfer capability;</text> </subparagraph><subparagraph id="H858E955113B7418FB0021FEDB283BD1A"><enum>(C)</enum><text>manufacturing technology required to construct complex three-dimensional geometry parts with improved aerodynamic capability;</text> </subparagraph><subparagraph id="HCB9D5C62CCC84095A2DF18291CB4CCB6"><enum>(D)</enum><text>combustion technology to produce higher firing temperature while lowering nitrogen oxide and carbon monoxide emissions per unit of output;</text> </subparagraph><subparagraph id="HA07D77D22B414E3080204805F6C3212E"><enum>(E)</enum><text>advanced controls and systems integration;</text> </subparagraph><subparagraph id="H10382A4E6105443CAD715347A1B24C50"><enum>(F)</enum><text>advanced high performance compressor technology; and</text> </subparagraph><subparagraph id="H0B247317C99942239BCD1CC30BFA1F28"><enum>(G)</enum><text>validation facilities for the testing of components and subsystems;</text> </subparagraph></paragraph><paragraph id="HDC44E6F8A98F4CA2913D923358AB4432"><enum>(2)</enum><text>include technology demonstration through component testing, subscale testing, and full scale testing in existing fleets;</text> </paragraph><paragraph id="HE88F564A9DCB41C680E08A0900D1F70A"><enum>(3)</enum><text>include field demonstrations of the developed technology elements so as to demonstrate technical and economic feasibility; and</text> </paragraph><paragraph id="HD9B7EB2134F64A1382176DCE5F8D17DB"><enum>(4)</enum><text>assess overall combined cycle system performance.</text> </paragraph></subsection><subsection id="H39DF1A34BC6F4DCF80D1960A5E967EB7"><enum>(c)</enum><header>Program goals</header><text>The goals of the multiphase program established under subsection (a) shall be—</text> <paragraph id="H70F23DD7BCC842DAAABD9ACEB283149C"><enum>(1)</enum><text>in phase I—</text> <subparagraph id="H9979F4F476BD4374B8B364E701C2ABF1"><enum>(A)</enum><text>to develop the conceptual design of advanced high efficiency gas turbines that can achieve at least 62 percent combined cycle efficiency on a lower heating value basis; and</text> </subparagraph><subparagraph id="HAAA2CEF48E814E11966AC24C24A73E98"><enum>(B)</enum><text>to develop and demonstrate the technology required for advanced high efficiency gas turbines that can achieve at least 62 percent combined cycle efficiency on a lower heating value basis; and</text> </subparagraph></paragraph><paragraph id="HECAC698821D540EF8CC356DCD3F5F7F0"><enum>(2)</enum><text>in phase II, to develop the conceptual design for advanced high efficiency gas turbines that can achieve at least 65 percent combined cycle efficiency on a lower heating value basis.</text> </paragraph></subsection><subsection id="H382137E578A24E01B027D72D41279B1A"><enum>(d)</enum><header>Proposals</header><text>Within 180 days after the date of enactment of this section, the Secretary shall solicit proposals for conducting activities under this section. In selecting proposals, the Secretary shall emphasize—</text> <paragraph id="H0E755DFE0BE044319CE1A2AB9FE10C35"><enum>(1)</enum><text>the extent to which the proposal will stimulate the creation or increased retention of jobs in the United States; and</text> </paragraph><paragraph id="H3511A8A3DD134DA9BBA495C4294E2F4A"><enum>(2)</enum><text>the extent to which the proposal will promote and enhance United States technology leadership.</text> </paragraph></subsection><subsection id="H6EF27861DE1E43E6BB96DA06AC450A4B"><enum>(e)</enum><header>Cost sharing</header><text>Section 988 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16352">42 U.S.C. 16352</external-xref>) shall apply to an award of financial assistance made under this section.</text> </subsection><subsection id="HAD3C4569554A4C7485B3764ACD719E36"><enum>(f)</enum><header>Limits on participation</header><text>The limits on participation applicable under section 999E of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16375">42 U.S.C. 16375</external-xref>) shall apply to financial assistance awarded under this section.</text> </subsection><subsection id="H560CCDB35B174504A6D92498DC97A39B"><enum>(g)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary for carrying out this section $65,000,000 for each of fiscal years 2011 through 2014.</text> </subsection></section></subtitle><subtitle id="H8CF9A4D50C7C4D3A926F0613D66D93BE"><enum>I</enum><header>Nuclear and Advanced Technologies</header> <section id="H5F43F2F381BB4E3980BFEBDD72594A52"><enum>181.</enum><header>Revisions to loan guarantee program authority</header> <subsection id="H4D3C3328964147FC8ED011481FCA0AFD"><enum>(a)</enum><header>Definition of conditional commitment</header><text display-inline="yes-display-inline">Section 1701 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16511">42 U.S.C. 16511</external-xref>), as amended by section 130(a) of this Act, is amended by adding after paragraph (7) the following:</text> <quoted-block display-inline="no-display-inline" id="H20ED14F2B7314659BC756715C46743ED" style="OLC"> <paragraph id="H549B9A3BF04A4947AD8547A04C07116B"><enum>(8)</enum><header>Conditional commitment</header><text display-inline="yes-display-inline">The term <quote>conditional commitment</quote> means a final term sheet negotiated between the Secretary and a project sponsor or sponsors, which term sheet shall be binding on both parties and become a final loan guarantee agreement if all conditions precedent established in the term sheet, which shall include the acquisition of all necessary permits and licenses, are satisfied.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HEF505375BEA8443580F62C8861C0FDB1"><enum>(b)</enum><header>Specific appropriation or contribution</header><text display-inline="yes-display-inline">Section 1702 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512</external-xref>) is amended by striking subsection (b) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HD2750DC7B4B84E50A9ADFCAD3D65024F" style="OLC"> <subsection id="HB85958EE96EC485A83AE3E84D63C1918"><enum>(b)</enum><header>Specific appropriation or contribution</header> <paragraph id="HAD9BC31589E74942AFE5B098E80AC295"><enum>(1)</enum><header>In general</header><text>No guarantee shall be made unless—</text> <subparagraph id="H84E376A0EC88400A826CDAABB7F7B8AD"><enum>(A)</enum><text>an appropriation for the cost has been made;</text> </subparagraph><subparagraph id="H10EE4314DA344A2287B5DD882B19380C"><enum>(B)</enum><text>the Secretary has received from the borrower a payment in full for the cost of the obligation and deposited the payment into the Treasury; or</text> </subparagraph><subparagraph id="H0790C177912142869D25BBCC9DBA2B5B"><enum>(C)</enum><text>a combination of appropriations or payments from the borrower has been made sufficient to cover the cost of the obligation.</text> </subparagraph></paragraph><paragraph id="H4762594C82C14FDDB5E61EE7086DA4AD"><enum>(2)</enum><header>Limitation</header><text>The source of payments received from a borrower under paragraph (1)(B) shall not be a loan or other debt obligation that is made or guaranteed by the Federal Government.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H79A3DC6D0E8F47128D943D405EA7CB5C"><enum>(c)</enum><header>Fees</header><text display-inline="yes-display-inline">Section 1702(h) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512(h)</external-xref>) is amended by striking paragraph (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HDD8C94D1071B42C88C9AB32AE590422A" style="OLC"> <paragraph id="H1AA6373335AC4E938BC538261207F450"><enum>(2)</enum><header>Availability</header><text display-inline="yes-display-inline">Fees collected under this subsection shall—</text> <subparagraph id="H4B323B1601EB406588AA9A4C9451F34F"><enum>(A)</enum><text>be deposited by the Secretary into a special fund in the Treasury to be known as the ‘Incentives For Innovative Technologies Fund’; and</text> </subparagraph><subparagraph id="HF08C4711304F48D0BBBF2BCD943B3FEF"><enum>(B)</enum><text>remain available to the Secretary for expenditure, without further appropriation or fiscal year limitation, for administrative expenses incurred in carrying out this title.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HB190B21F39214632BA16064B3CDB822B"><enum>(d)</enum><header>Wage rate requirements</header><text display-inline="yes-display-inline">Section 1702 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H9BA48EAE1FE54BF79F8EF663E1561041" style="OLC"> <subsection id="H37BA220B57644FC580757E93702317E7"><enum>(k)</enum><header>Wage Rate Requirements</header><text display-inline="yes-display-inline">No loan guarantee shall be made under this title unless the borrower has provided to the Secretary reasonable assurances that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the guaranteed loan will be paid wages at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and <external-xref legal-doc="usc" parsable-cite="usc/40/3145">section 3145</external-xref> of title 40, United States Code.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H7833A4FF85E44CB3AB4552B1796EA987"><enum>(e)</enum><header>Subrogation</header><text>Section 1702(g)(2) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512(g)(2)</external-xref>) is amended by striking subparagraphs (B) and (C) and inserting the following:</text> <quoted-block id="H9043CE17B0804567A7BB333515090052" style="OLC"> <subparagraph id="H3893600A96984D6996CA68FD93F3A05A"><enum>(B)</enum><header>Superiority of rights</header><text>Except as provided in subparagraph (C), the rights of the Secretary, with respect to any property acquired pursuant to a guarantee or related agreements, shall be superior to the rights of any other person with respect to the property.</text> </subparagraph><subparagraph id="HED4D9AFCF15847DFA4238C380A5B96D3"><enum>(C)</enum><header>Terms and conditions</header><text>A guarantee agreement shall include such detailed terms and conditions as the Secretary determines appropriate to—</text> <clause id="H2E81C1A9242A415183B633270FF6796D"><enum>(i)</enum><text>protect the financial interests of the United States in the case of default;</text> </clause><clause id="HBFE1C84C1CC74BA18BA543E1AA0BC01B"><enum>(ii)</enum><text>have available all the patents and technology necessary for any person selected, including the Secretary, to complete and operate the project;</text> </clause><clause id="HDCDD224DE180404E93E4816FFD9193C4"><enum>(iii)</enum><text>provide for sharing the proceeds received from the sale of project assets with other creditors or control the disposition of project assets if necessary to protect the financial interests of the United States in the case of default; and</text> </clause><clause id="HE28BC5D488F340948C22E2241A8FA1C1"><enum>(iv)</enum><text>provide such lien priority in project assets as necessary to protect the financial interests of the United States in the case of a default.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H581466546F994910B705A7A8223CED8E"><enum>182.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of sections 183 through 189 of this subtitle is to promote the domestic development and deployment of clean energy technologies required for the 21st century through the establishment of a self-sustaining Clean Energy Deployment Administration that will provide for an attractive investment environment through partnership with and support of the private capital market in order to promote access to affordable financing for accelerated and widespread deployment of—</text> <paragraph id="HAB018B9799564816AE5F39A5B3F39304"><enum>(1)</enum><text>clean energy technologies;</text> </paragraph><paragraph id="H24CA574D6B6A436FA0BFA3A8EF1DD37E"><enum>(2)</enum><text>advanced or enabling energy infrastructure technologies;</text> </paragraph><paragraph id="H542E5183005B4A5FBF66A05BA8FEBEF6"><enum>(3)</enum><text>energy efficiency technologies in residential, commercial, and industrial applications, including end-use efficiency in buildings; and</text> </paragraph><paragraph id="HDEE399451FD94180B9569A43ABE71A77"><enum>(4)</enum><text>manufacturing technologies for any of the technologies or applications described in this section.</text> </paragraph></section><section id="H9147E7DBE22642F985CDCF49CEB81290"><enum>183.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text> <paragraph id="HF3A64E11638B4046A8B6AD0544056F9D"><enum>(1)</enum><header>Administration</header><text>The term <term>Administration</term> means the Clean Energy Deployment Administration established by section 186.</text> </paragraph><paragraph id="H00FD6AF3E70A48A384B01A465D48C691"><enum>(2)</enum><header>Advisory council</header><text>The term <term>Advisory Council</term> means the Energy Technology Advisory Council of the Administration.</text> </paragraph><paragraph id="HA497BFD635E64A79B7003D62E4DF755D"><enum>(3)</enum><header>Breakthrough technology</header><text>The term <term>breakthrough technology</term> means a clean energy technology that—</text> <subparagraph id="H767CF14F7F6242BBA2C4197E1DDE7BEE"><enum>(A)</enum><text>presents a significant opportunity to advance the goals developed under section 185, as assessed under the methodology established by the Advisory Council; but</text> </subparagraph><subparagraph id="HEBA683DA7190441BB22D5CBE14B2DDC4"><enum>(B)</enum><text>has generally not been considered a commercially ready technology as a result of high perceived technology risk or other similar factors.</text> </subparagraph></paragraph><paragraph id="HE3029E09CFF047828BC97D1C6F978630"><enum>(4)</enum><header>Clean energy technology</header><text>The term <term>clean energy technology</term> means a technology related to the production, use, transmission, storage, control, or conservation of energy—</text> <subparagraph id="H08D080CBB37E4D678360B1FCFF8D7F72"><enum>(A)</enum><text>that will contribute to a stabilization of atmospheric greenhouse gas concentrations thorough reduction, avoidance, or sequestration of energy-related emissions and—</text> <clause id="H6569EC77C0DA4BEA93FDCE1AE2B9B250"><enum>(i)</enum><text>reduce the need for additional energy supplies by using existing energy supplies with greater efficiency or by transmitting, distributing, or transporting energy with greater effectiveness through the infrastructure of the United States; or</text> </clause><clause id="HE9EB4D858AAA4452A2F77099D78C7CD8"><enum>(ii)</enum><text>diversify the sources of energy supply of the United States to strengthen energy security and to increase supplies with a favorable balance of environmental effects if the entire technology system is considered; and</text> </clause></subparagraph><subparagraph id="HADD431D2F1F64DB59E48BB2FC0794804"><enum>(B)</enum><text>for which, as determined by the Administrator, insufficient commercial lending is available at affordable rates to allow for widespread deployment.</text> </subparagraph></paragraph><paragraph id="H95612CDB090B4FC9BA469A51BCEAADD8"><enum>(5)</enum><header>Cost</header><text>The term <term>cost</term> has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text> </paragraph><paragraph id="H4F2B374AB8654BE19A517A7FA4178B47"><enum>(6)</enum><header>Direct loan</header><text>The term <term>direct loan</term> has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text> </paragraph><paragraph id="H61205E8A739A42AA9DFADAE9275F271F"><enum>(7)</enum><header>Fund</header><text>The term <term>Fund</term> means the Clean Energy Investment Fund established by section 184(a).</text> </paragraph><paragraph id="H62A4C81FB6BB4FE3A9F579A7705A1797"><enum>(8)</enum><header>Green bonds</header><text>The term <term>Green Bonds</term> means bonds issued pursuant to section 184.</text> </paragraph><paragraph id="HC876A0C9D77C4B4B83CB175539388ACB"><enum>(8)</enum><header>Loan guarantee</header><text>The term <term>loan guarantee</term> has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text> </paragraph><paragraph id="H25CF72C91E8540428AD45904CFB7043B"><enum>(9)</enum><header>National laboratory</header><text>The term <term>National Laboratory</term> has the meaning given the term in section 2 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15801">42 U.S.C. 15801</external-xref>).</text> </paragraph><paragraph id="HF4F21A1881FC4C8A8C19D4448C6F6F85"><enum>(10)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text> </paragraph><paragraph id="H46A27BF0260A42549DF462E25A803CE2"><enum>(11)</enum><header>State</header><text>The term <term>State</term> means—</text> <subparagraph id="HB24C8B2AF62F46C29643C68C8D22365B"><enum>(A)</enum><text>a State;</text> </subparagraph><subparagraph id="H2955DDED86CC4810A5FB9EA913947445"><enum>(B)</enum><text>the District of Columbia;</text> </subparagraph><subparagraph id="H197FF18AEAC04484845ACEB37AC8A477"><enum>(C)</enum><text>the Commonwealth of Puerto Rico; and</text> </subparagraph><subparagraph id="H419DC885F2B441CC8BDCAC1261CCE9AC"><enum>(D)</enum><text>any other territory or possession of the United States.</text> </subparagraph></paragraph><paragraph id="H48733A4D415941B0A977C911F231DCED"><enum>(12)</enum><header>Technology risk</header><text>The term <term>technology risk</term> means the risks during construction or operation associated with the design, development, and deployment of clean energy technologies (including the cost, schedule, performance, reliability and maintenance, and accounting for the perceived risk), from the perspective of commercial lenders, that may be increased as a result of the absence of adequate historical construction, operating, or performance data from commercial applications of the technology.</text> </paragraph></section><section id="HF9BDC34290974B1BBA39AB0A5903366D"><enum>184.</enum><header>Clean energy investment fund</header> <subsection id="H8F04E75B02AC40BF81B5BBE2EE0DA8BB"><enum>(a)</enum><header>Establishment</header><text>There is established in the Treasury of the United States a revolving fund, to be known as the <quote>Clean Energy Investment Fund</quote>, consisting of—</text> <paragraph id="HD05819134F6543C59174439A9331243F"><enum>(1)</enum><text>such amounts as are deposited in the Fund under this subtitle; and</text> </paragraph><paragraph id="H5944DD56832949388769D286BF1D177B"><enum>(2)</enum><text>such sums as may be appropriated to supplement the Fund.</text> </paragraph></subsection><subsection id="HB1A59354727043A1B03D66DC33D60F14"><enum>(b)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Fund such sums as are necessary to carry out this subtitle.</text> </subsection><subsection id="HC0C5A0A284E54A7FAEEA63608023C8E2"><enum>(c)</enum><header>Expenditures from fund</header> <paragraph id="H9B39245305E64AC2A828CBE0A27D5180"><enum>(1)</enum><header>In general</header><text>Amounts in the Fund shall be available to the Administrator of the Administration for obligation without fiscal year limitation, to remain available until expended.</text> </paragraph><paragraph id="H6CC4020EC0D94DD299F2E99908DF8FBB"><enum>(2)</enum><header>Administrative expenses</header> <subparagraph id="H77EE1FA0777F4A6FA41CF3B8D4FB2C25"><enum>(A)</enum><header>Fees</header><text>Fees collected for administrative expenses shall be available without limitation to cover applicable expenses.</text> </subparagraph><subparagraph id="H668724F71C8C4EFB9CD15B7952187D1A"><enum>(B)</enum><header>Fund</header><text>To the extent that administrative expenses are not reimbursed through fees, an amount not to exceed 1.5 percent of the amounts in the Fund as of the beginning of each fiscal year shall be available to pay the administrative expenses for the fiscal year necessary to carry out this subtitle.</text> </subparagraph></paragraph></subsection><subsection id="H5102F0CE34AF4A61966739F1E92FBD01"><enum>(d)</enum><header>Transfers of amounts</header> <paragraph id="H299C605F3F4D41FE8EA9ED85EC10102B"><enum>(1)</enum><header>In general</header><text>The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.</text> </paragraph><paragraph id="HDE67A3F45C2A4DA0AFADFE93FDC52290"><enum>(2)</enum><header>Adjustments</header><text>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.</text> </paragraph><paragraph id="HDDE21F2B53624998A71AD379B35803C9"><enum>(3)</enum><header>Cash flows</header><text>Cash flows associated with costs of the Fund described in section 502(5)(B) of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a(5)(B)</external-xref>) shall be transferred to appropriate credit accounts.</text> </paragraph></subsection><subsection id="HA4C185304B0844EA8F9F2E16921BD34F"><enum>(e)</enum><header>Green bonds</header> <paragraph id="HD09916A198C247A28B5C284168F2662D"><enum>(1)</enum><header>Initial capitalization</header><text>The Secretary of the Treasury shall issue Green Bonds in the amount of $7,500,000,000 on the credit of the United States to acquire capital stock of the Administration. Stock certificates evidencing ownership in the Administration shall be issued by the Administration to the Secretary of the Treasury, to the extent of payments made for the capital stock of the Administration.</text> </paragraph><paragraph id="HAE661B8D4AA04BFF97BE40AD7652C83D"><enum>(2)</enum><header>Denominations and maturity</header><text>Green Bonds shall be in such forms and denominations, and shall mature within such periods, as determined by the Secretary of the Treasury.</text> </paragraph><paragraph id="HC01CC5AF49E34F738956B17FECE1D89C"><enum>(3)</enum><header>Interest</header><text>Green Bonds shall bear interest at a rate not less than the current average yield on outstanding market obligations of the United States of comparable maturity during the month preceding the issuance of the obligation as determined by the Secretary of the Treasury.</text> </paragraph><paragraph id="HF860A1D163D645749E7C8F4075EBAAF7"><enum>(4)</enum><header>Lawful investments</header><text>Green Bonds shall be lawful investments, and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof.</text> </paragraph></subsection></section><section id="H792B18514DEA4E7C8853FFC429254E03"><enum>185.</enum><header>Energy technology deployment goals</header> <subsection id="H55794C0923114BA582A8E366AC7E9362"><enum>(a)</enum><header>Goals</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary, after consultation with the Advisory Council, shall develop and publish for review and comment in the Federal Register recommended near-, medium-, and long-term goals (including numerical performance targets at appropriate intervals to measure progress toward those goals) for the deployment of clean energy technologies through the credit support programs established by section 187 to promote—</text> <paragraph id="H9C3730F8B0904B4790E03DA362D30461"><enum>(1)</enum><text>sufficient electric generating capacity using clean energy technologies to meet the energy needs of the United States;</text> </paragraph><paragraph id="HAFD5C7F32F264AE39FBBDA034BFD391B"><enum>(2)</enum><text>clean energy technologies in vehicles and fuels that will substantially reduce the reliance of the United States on foreign sources of energy and insulate consumers from the volatility of world energy markets;</text> </paragraph><paragraph id="HBCF1561DFAC043699B514C17F73350E4"><enum>(3)</enum><text>a domestic commercialization and manufacturing capacity that will establish the United States as a world leader in clean energy technologies across multiple sectors;</text> </paragraph><paragraph id="H0C7E0F807C0B423D84C5730908573267"><enum>(4)</enum><text>installation of sufficient infrastructure to allow for the cost-effective deployment of clean energy technologies appropriate to each region of the United States;</text> </paragraph><paragraph id="H25C4EB2F9D28468DADE2532A393A1ACE"><enum>(5)</enum><text>the transformation of the building stock of the United States to zero net energy consumption;</text> </paragraph><paragraph id="HAEA471A0968F4CB7BF69330FB1D8248F"><enum>(6)</enum><text>the recovery, use, and prevention of waste energy;</text> </paragraph><paragraph id="H238844C9D2F049CCAF71DF6A5380EAD8"><enum>(7)</enum><text>domestic manufacturing of clean energy technologies on a scale that is sufficient to achieve price parity with conventional energy sources;</text> </paragraph><paragraph id="H6355F23379934688B2D959AFD468F29E"><enum>(8)</enum><text>domestic production of commodities and materials (such as steel, chemicals, polymers, and cement) using clean energy technologies so that the United States will become a world leader in environmentally sustainable production of the commodities and materials;</text> </paragraph><paragraph id="HCAC7D710BF7D498BBF40C9615E0E5AF6"><enum>(9)</enum><text>a robust, efficient, and interactive electricity transmission grid that will allow for the incorporation of clean energy technologies, distributed generation, and demand-response in each regional electric grid;</text> </paragraph><paragraph id="HC73DC2A5FF5C43D684204ABE9B829DCD"><enum>(10)</enum><text>sufficient availability of financial products to allow owners and users of residential, retail, commercial, and industrial buildings to make energy efficiency and distributed generation technology investments with reasonable payback periods;</text> </paragraph><paragraph display-inline="no-display-inline" id="H792458B2058D4547837E6B62A189ECF7"><enum>(11)</enum><text display-inline="yes-display-inline">sufficient availability of financial services and support to small businesses developing and deploying clean energy technologies through partnerships with private entities that have relevant credit expertise; and</text> </paragraph><paragraph id="HE886E8F2B62A44E79BA662F83BBF1CD2"><enum>(12)</enum><text>such other goals as the Secretary, in consultation with the Advisory Council, determines to be consistent with the purpose stated in section 182.</text> </paragraph></subsection><subsection id="H9F1705E5563D48889A82BD853ACD55FD"><enum>(b)</enum><header>Revisions</header><text>The Secretary shall revise the goals established under subsection (a), from time to time as appropriate, to account for advances in technology and changes in energy policy.</text> </subsection></section><section id="H44FC70C72BFB44EEBE74F5CD2ADC425F"><enum>186.</enum><header>Clean energy deployment administration</header> <subsection id="H0B9F72D31A194ADC8609CB21DF3050C1"><enum>(a)</enum><header>Establishment</header> <paragraph id="H8B71E2B38D2F45458687C6C4DEAD0FEC"><enum>(1)</enum><header>Establishment of corporation</header><text>There is established a corporation to be known as the Clean Energy Deployment Administration that shall be wholly owned by the United States.</text> </paragraph><paragraph id="HA1E8094ED5524645BC1EE5F21E50A56B"><enum>(2)</enum><header>Independent corporation</header><text>The Administration shall be an independent corporation. Neither the Administration nor any of its functions, powers, or duties shall be transferred to or consolidated with any other department, agency, or corporation of the Government unless the Congress provides otherwise.</text> </paragraph><paragraph id="HEE1330BA248D4A9FA1F94267BED25648"><enum>(3)</enum><header>Charter</header><text>The Administration shall be chartered for 20 years from the date of enactment of this section.</text> </paragraph><paragraph id="H322A04813E03424DAD42F4A75F8AE4C2"><enum>(4)</enum><header>Status</header> <subparagraph id="HF20408949AC7496596E503DE0A5D8A20"><enum>(A)</enum><header>Inspector general</header><text>Section 12 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—</text> <clause id="H3642DC7D7728419A83962434A4E21E83"><enum>(i)</enum><text>in paragraph (1), by inserting <quote>the Administrator of the Clean Energy Deployment Administration;</quote> after <quote>Export-Import Bank;</quote>; and</text> </clause><clause id="HF06E5D08FA3B46FB8E09C4A3FD4DE48A"><enum>(ii)</enum><text>in paragraph (2), by inserting <quote>the Clean Energy Deployment Administration,</quote> after <quote>Export-Import Bank,</quote>.</text> </clause></subparagraph></paragraph><paragraph id="H2B3DCB62175F41A5A18CE2F44F517271"><enum>(3)</enum><header>Offices</header> <subparagraph id="HE79E6D96F84746799AAC573878D2E6D0"><enum>(A)</enum><header>Principal office</header><text>The Administration shall—</text> <clause id="HCB6743389FF64789911D0325ECD770DA"><enum>(i)</enum><text>maintain the principal office of the Administration in the national capital region; and</text> </clause><clause id="H235FCF7D68D3463C966662D84557111A"><enum>(ii)</enum><text>for purposes of venue in civil actions, be considered to be a resident of the District of Columbia.</text> </clause></subparagraph><subparagraph id="H21FFF299C6BB44A2A6CB44433F06243A"><enum>(B)</enum><header>Other offices</header><text>The Administration may establish other offices in such other places as the Administration considers necessary or appropriate for the conduct of the business of the Administration.</text> </subparagraph></paragraph></subsection><subsection id="HA0BC7BD5A7AE4F19B1669E0BEAF283BE"><enum>(b)</enum><header>Administrator</header> <paragraph id="H56157B8D9B564F918D8B8EEEDA2C54F1"><enum>(1)</enum><header>In general</header><text>The Administrator of the Administration shall be—</text> <subparagraph id="HF909161557D949D794243DE0284FD879"><enum>(A)</enum><text>appointed by the President, with the advice and consent of the Senate, for a 5-year term; and</text> </subparagraph><subparagraph id="HB8B857FB0D04472794D1B4B4E85B615A"><enum>(B)</enum><text>compensated at the prevailing rate for compensation for similar positions in industry.</text> </subparagraph></paragraph><paragraph id="HC5ADEED0D6454F8EA74BE9B719AE6C58"><enum>(2)</enum><header>Duties</header><text>The Administrator of the Administration shall—</text> <subparagraph id="H80CAC4FBF0AD4B4991ADE0A6E2AF05E6"><enum>(A)</enum><text>serve as the Chief Executive Officer of the Administration and Chairman of the Board;</text> </subparagraph><subparagraph id="HBBBAAE0A01734C4AA52B0EF55D50E08A"><enum>(B)</enum><text>ensure that—</text> <clause id="HC0D76C4AAC634E04BC105ECDEE0E2CB5"><enum>(i)</enum><text>the Administration operates in a safe and sound manner, including maintenance of adequate capital and internal controls (consistent with section 404 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7262">15 U.S.C. 7262</external-xref>));</text> </clause><clause id="HF4EA70D294364E3DABD31215F23877C5"><enum>(ii)</enum><text>the operations and activities of the Administration foster liquid, efficient, competitive, and resilient energy and energy efficiency finance markets;</text> </clause><clause id="H87F6637331AC4E5386DA2E766AF0BFE5"><enum>(iii)</enum><text>the Administration carries out the purpose stated in section 182 only through activities that are authorized under and consistent with sections 182 through 189; and</text> </clause><clause id="H417083DE3EB14583A1CBA87C4CD58C0D"><enum>(iv)</enum><text>the activities of the Administration and the manner in which the Administration is operated are consistent with the public interest;</text> </clause></subparagraph><subparagraph id="H5E76476500BA4E4797EF68BC0E2D5747"><enum>(C)</enum><text>develop policies and procedures for the Administration that will—</text> <clause id="H7A6D7A310B334893967E712ADACEF6EF"><enum>(i)</enum><text>promote a self-sustaining portfolio of investments that will maximize the value of investments to effectively promote clean energy technologies;</text> </clause><clause id="H87E448C1847240BE9BAA8B1AA5E176D8"><enum>(ii)</enum><text>promote transparency and openness in Administration operations;</text> </clause><clause id="H0F2BD5AC8C044FE8949C5FA72CC8B231"><enum>(iii)</enum><text>afford the Administration with sufficient flexibility to meet the purpose stated in section 182; and</text> </clause><clause id="HAD1CCDCBD8FD4821A420E1193382F25C"><enum>(iv)</enum><text>provide for the efficient processing of applications; and</text> </clause></subparagraph><subparagraph id="H6418507D62B04226B9E3C5BC6C78685B"><enum>(D)</enum><text>with the concurrence of the Board, set expected loss reserves for the support provided by the Administration consistent with section 187(c).</text> </subparagraph></paragraph></subsection><subsection id="H0D1BA3E1ECD348F89C7518B86518C7EC"><enum>(c)</enum><header>Board of directors</header> <paragraph id="H58C1638E38024DFA9CF082F375F7BEC0"><enum>(1)</enum><header>In general</header><text>The Board of Directors of the Administration shall consist of—</text> <subparagraph id="H415B504AC9144ED9A1316283794EC152"><enum>(A)</enum><text>the Secretary or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;</text> </subparagraph><subparagraph id="H998E01A55CD24EF9A6EAAFC1E1B099D0"><enum>(B)</enum><text>the Secretary of the Treasury or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;</text> </subparagraph><subparagraph id="HBE679903B8954D318A872FFA5F350365"><enum>(C)</enum><text>the Secretary of the Interior or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;</text> </subparagraph><subparagraph id="HBBCD680DA00C427BA23D9BD2777DB712"><enum>(D)</enum><text>the Secretary of Agriculture or the designee of the Secretary, who shall serve as an ex officio member of the Board of Directors;</text> </subparagraph><subparagraph id="H878FA3FACBEA42C2836D74D0152ED60B"><enum>(E)</enum><text>the Administrator of the Administration, who shall serve as the Chairman of the Board of Directors; and</text> </subparagraph><subparagraph id="H53EC4E15DE5A495E9D4E57CCA844C3D5"><enum>(F)</enum><text>4 additional members who shall—</text> <clause id="HAC99B4445D3C477DB35216C8312D8807"><enum>(i)</enum><text>be appointed by the President, with the advice and consent of the Senate, for staggered 5-year terms; and</text> </clause><clause id="H94F14909FBBA425FB1CF802A7A247800"><enum>(ii)</enum><text>have experience in banking, financial services, technology assessment, energy regulation, or risk management, including individuals with substantial experience in the development of energy projects, the electricity generation sector, the transportation sector, the manufacturing sector, and the energy efficiency sector.</text> </clause></subparagraph></paragraph><paragraph id="H7816C0D09CD34FB98998195C56B8C739"><enum>(2)</enum><header>Duties</header><text>The Board of Directors shall—</text> <subparagraph id="H0D773F34268E48D2A2C87300DC63A9F6"><enum>(A)</enum><text>oversee the operations of the Administration and ensure industry best practices are followed in all financial transactions involving the Administration;</text> </subparagraph><subparagraph id="H123259FB310D4C88BFE27CFB3AF04667"><enum>(B)</enum><text>consult with the Administrator of the Administration on the general policies and procedures of the Administration to ensure the interests of the taxpayers are protected;</text> </subparagraph><subparagraph id="H8B43C80CAA9D40A39E8CC6D6A96764A7"><enum>(C)</enum><text>ensure the portfolio of investments are consistent with purpose stated in section 182 and with the long-term financial stability of the Administration;</text> </subparagraph><subparagraph id="H2823F6A60E204010B5B273F54A5A5501"><enum>(D)</enum><text>ensure that the operations and activities of the Administration are consistent with the development of a robust private sector that can provide commercial loans or financing products; and</text> </subparagraph><subparagraph id="H3B9620A8B86442949AC605F28BF90828"><enum>(E)</enum><text>not serve on a full-time basis, except that the Board of Directors shall meet at least quarterly to review, as appropriate, applications for credit support and set policies and procedures as necessary.</text> </subparagraph></paragraph><paragraph id="H3C585B30670348D287121F089295A10F"><enum>(3)</enum><header>Removal</header><text>An appointed member of the Board of Directors may be removed from office by the President for good cause.</text> </paragraph><paragraph id="H8C2A406DC0484E49AABA988CAB9440CC"><enum>(4)</enum><header>Vacancies</header><text>An appointed seat on the Board of Directors that becomes vacant shall be filled by appointment by the President, but only for the unexpired portion of the term of the vacating member.</text> </paragraph><paragraph id="HA19F8CE34B5C4A84B3736D742EAA7CD6"><enum>(5)</enum><header>Compensation of members</header><text>An appointed member of the Board of Directors shall be compensated at the prevailing rate for compensation for similar positions in industry.</text> </paragraph></subsection><subsection id="H47292B96BFD749EC842DC5FAFC839190"><enum>(d)</enum><header>Energy technology advisory council</header> <paragraph id="HD8E92F5F1CCB44DD827E502052200352"><enum>(1)</enum><header>In general</header><text>The Administration shall have an Energy Technology Advisory Council consisting of 8 members selected by the Board of Directors of the Administration.</text> </paragraph><paragraph id="HA846905BC6F04F9683B2B31EDC0DF08D"><enum>(2)</enum><header>Qualifications</header><text>The members of the Advisory Council shall—</text> <subparagraph id="H7FA5D9D17BDB4FCB9DAAF5238671E7F7"><enum>(A)</enum><text>have clean energy project development, clean energy finance, commercial, and/or relevant scientific expertise; and</text> </subparagraph><subparagraph id="H6B7544640BB3490DA0E2D5D70F6E48C4"><enum>(B)</enum><text>include representatives of—</text> <clause id="H244BC681A38D4A119F6BAB779B22D422"><enum>(i)</enum><text>the academic community;</text> </clause><clause id="HCF49A1385C1F42A89628F379756EB25D"><enum>(ii)</enum><text>the private research community;</text> </clause><clause id="H34D7B57B25244BBD834BB2B45B21FB8B"><enum>(iii)</enum><text>National Laboratories;</text> </clause><clause id="H6D3ACBEF255547488794A37BD5354398"><enum>(iv)</enum><text>the technology or project development community; and</text> </clause><clause id="H65F993920A424553B68EAD0E4ED7C30A"><enum>(v)</enum><text>the commercial energy financing and operations sector.</text> </clause></subparagraph></paragraph><paragraph id="H323CAE5D482A4958B6DC290255009954"><enum>(3)</enum><header>Duties</header><text>The Advisory Council shall—</text> <subparagraph id="H567A98E61D614B33BBA394F3718386C9"><enum>(A)</enum><text>develop and publish for comment in the Federal Register a methodology for assessment of clean energy technologies that will allow the Administration to evaluate projects based on the progress likely to be achieved per-dollar invested in maximizing the attributes of the definition of clean energy technology, taking into account the extent to which support for a clean energy technology is likely to accrue subsequent benefits that are attributable to a commercial scale deployment taking place earlier than that which otherwise would have occurred without the support; and</text> </subparagraph><subparagraph id="HE96892ED3C2E436A9ABE42B1FE9F8D99"><enum>(B)</enum><text>advise on the technological approaches that should be supported by the Administration to meet the technology deployment goals established by the Secretary pursuant to section 185.</text> </subparagraph></paragraph><paragraph id="HF06F71F7A94749FD941C9296D8280A35"><enum>(4)</enum><header>Term</header> <subparagraph id="HEFE894CB17D441CE888455BA136D3F09"><enum>(A)</enum><header>In general</header><text>Members of the Advisory Council shall have 5-year staggered terms, as determined by the Administrator of the Administration.</text> </subparagraph><subparagraph id="H683D779726A142E49066FB8EFF6897F9"><enum>(B)</enum><header>Reappointment</header><text>A member of the Advisory Council may be reappointed.</text> </subparagraph></paragraph><paragraph id="HADA3DA82BA6F48EBA7C78C0F9ECD7AC9"><enum>(5)</enum><header>Compensation</header><text>A member of the Advisory Council, who is not otherwise compensated as a Federal employee, 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 <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> 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 Advisory Council.</text> </paragraph></subsection><subsection id="H7E9A295E94C54AADB0F3DB08AEC92993"><enum>(e)</enum><header>Staff</header> <paragraph id="HB7E20FDDD67B4999BDCE01B2126255C6"><enum>(1)</enum><header>In general</header><text>The Administrator of the Administration, in consultation with the Board of Directors, may—</text> <subparagraph id="H8AF17963E36C442CB77472CCD7D6199A"><enum>(A)</enum><text>appoint and terminate such officers, attorneys, employees, and agents as are necessary to carry out this subtitle; and</text> </subparagraph><subparagraph id="HEB375ADF6F89468A8D8682519D7F213F"><enum>(B)</enum><text>vest those personnel with such powers and duties as the Administrator of the Administration may determine.</text> </subparagraph></paragraph></subsection><subsection id="H218F0690FE0A45BC8E250C5D73EFAD8D"><enum>(f)</enum><header>Conflicts of interest</header><text>No director, officer, attorney, agent, or employee of the Administration shall in any manner, directly or indirectly, participate in the deliberation upon, or the determination of, any question affecting such individual’s personal interests, or the interests of any corporation, partnership, or association in which such individual is directly or indirectly personally interested.</text> </subsection><subsection id="H8BCCB0E616F144818CA9FE35984B08A0"><enum>(g)</enum><header>Sunset</header> <paragraph id="H91DFF19A346448BEA3F4F5B500C442DA"><enum>(1)</enum><header>Expiration of charter</header><text>The Administration shall continue to exercise its functions until all obligations and commitments of the Administration are discharged, even after its charter has expired.</text> </paragraph><paragraph id="HAC797F59C3404D6C966D1540F9E589DE"><enum>(2)</enum><header>Prior obligations</header><text>No provisions of this subsection shall be construed as preventing the Administration from—</text> <subparagraph id="H99FCB75A5920425E878DD3E47B343651"><enum>(A)</enum><text>undertaking obligations prior to the date of the expiration of its charter which mature subsequent to such date;</text> </subparagraph><subparagraph id="HCC7D3E0A9FD1449BB9FBAA2B0AF36558"><enum>(B)</enum><text>assuming, prior to the date of the expiration of its charter, liability as guarantor, endorser, or acceptor of obligations which mature subsequent to such date; or</text> </subparagraph><subparagraph id="H4B210C74F26D47BC870D2BB65372B1E2"><enum>(C)</enum><text>continuing as a corporation and exercising any of its functions subsequent to the date of the expiration of its charter for purposes of orderly liquidation, including the administration of its assets and the collection of any obligations held by the Administration.</text> </subparagraph></paragraph></subsection></section><section id="H781D849ADF814711B4AE64CDF4B2C1E3"><enum>187.</enum><header>Direct support</header> <subsection id="H48220E26413240C595B3EDCE97122070"><enum>(a)</enum><header>In general</header><text>The Administration may issue direct loans, letters of credit, and loan guarantees to deploy clean energy technologies if the Administrator of the Administration has determined that deployment of the technologies would benefit or be accelerated by the support.</text> </subsection><subsection id="HA8FE65E406054DA1AC6ED9498ECF42E0"><enum>(b)</enum><header>Eligibility criteria</header><text>In carrying out this section and awarding credit support to projects, the Administrator of the Administration shall account for—</text> <paragraph id="HFC5F877E9BAA47A4BA8C81BA25310BA6"><enum>(1)</enum><text>how the technology rates based on an evaluation methodology established by the Advisory Council;</text> </paragraph><paragraph id="H1EE380453828445E9465376A24208AFB"><enum>(2)</enum><text>how the project fits with the goals established under section 185; and</text> </paragraph><paragraph id="H80E4DD37B69C4980BC85316E6C8E8841"><enum>(3)</enum><text>the potential for the applicant to successfully complete the project.</text> </paragraph></subsection><subsection id="HD24D873F78434685AFD2014F313FCE04"><enum>(c)</enum><header>Risk</header> <paragraph id="H521693C41E704D34880D5E618D3C4C4E"><enum>(1)</enum><header>Expected loan loss reserve</header><text>The Administrator of the Administration shall establish an expected loan loss reserve to account for estimated losses attributable to activities under this section that is consistent with the purposes of—</text> <subparagraph id="H01D67C66386246F7A12736BDB5351810"><enum>(A)</enum><text>developing breakthrough technologies to the point at which technology risk is largely mitigated;</text> </subparagraph><subparagraph id="HB69F41B85A7342A78AE393210AF313BD"><enum>(B)</enum><text>achieving widespread deployment and advancing the commercial viability of clean energy technologies; and</text> </subparagraph><subparagraph id="HD54D347084B04D7D8CA7490A1F3CD1F6"><enum>(C)</enum><text>advancing the goals established under section 185.</text> </subparagraph></paragraph><paragraph id="H94121E47B51D4E9E809F4F79CE131345"><enum>(2)</enum><header>Initial expected loan loss reserve</header><text>Until such time as the Administrator of the Administration determines sufficient data exist to establish an expected loan loss reserve that is appropriate, the Administrator of the Administration shall consider establishing an initial rate of 10 percent for the portfolio of investments under this subtitle.</text> </paragraph><paragraph id="H05E915EB8F6D44A885EC6F4ABF8C67E7"><enum>(3)</enum><header>Portfolio investment approach</header><text>The Administration shall—</text> <subparagraph id="HF80CD7BE1B8F4168994938A5C276EDA4"><enum>(A)</enum><text>use a portfolio investment approach to mitigate risk and diversify investments across technologies and ensure that no particular technology is provided more than 30 percent of the financial support available;</text> </subparagraph><subparagraph id="H96DF1FA80F85471884667E7581E8A836"><enum>(B)</enum><text>to the maximum extent practicable and consistent with long-term self-sufficiency, weigh the portfolio of investments in projects to advance the goals established under section 185;</text> </subparagraph><subparagraph id="H9CA21FEABDD244759443F8726E1627EF"><enum>(C)</enum><text>consistent with the expected loan loss reserve established under this subsection, the purpose stated in section 182, and section 186(b)(2)(B), provide the maximum practicable percentage of support to promote breakthrough technologies; and</text> </subparagraph><subparagraph id="H9E1C2A22102E4C1AB17F2D699C92EB36"><enum>(D)</enum><text>give the highest priority to investments that promote technologies that will achieve the maximum greenhouse gas emission reductions within a reasonable period of time per dollar invested and the earliest reductions in greenhouse gas emissions.</text> </subparagraph></paragraph><paragraph id="HBFBE9315118449C1897B4165DE87834F"><enum>(4)</enum><header>Loss rate review</header> <subparagraph id="H05B2BA4AD82C40378FAD9CC05C51441A"><enum>(A)</enum><header>In general</header><text>The Board of Directors shall review on an annual basis the loss rates of the portfolio to determine the adequacy of the reserves.</text> </subparagraph><subparagraph id="H1C58F5A58C764EFCA0434C3B84D2893C"><enum>(B)</enum><header>Report</header><text>Not later than 90 days after the date of the initiation of the review, the Administrator of the Administration shall submit to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate, and the Committee on Energy and Commerce and the Committee on Ways and Means of the House of Representatives a report describing the results of the review and any recommended policy changes.</text> </subparagraph></paragraph><paragraph id="H87FCAC83543C4E79B374F0B6036AE4AA"><enum>(5)</enum><header>Federal cost share</header><text>Direct loans, letters of credit and loan guarantees by the Administration shall not exceed an amount equal to 80 percent of the project cost of the facility that is the subject of the loan, letter of credit or loan guarantee, as estimated at the time at which the loan, letter of credit or loan guarantee is issued.</text> </paragraph></subsection><subsection id="HBEA9A9BEE4934A8CA54A8F1FAE80433C"><enum>(d)</enum><header>Application review</header> <paragraph id="H9ECFB5B985DC4A3BB72811273D6A0732"><enum>(1)</enum><header>In general</header><text>To the maximum extent practicable and consistent with sound business practices, the Administration shall seek to consolidate reviews of applications for credit support under this subtitle such that final decisions on applications can generally be issued not later than 180 days after the date of submission of a completed application.</text> </paragraph><paragraph id="HC52251A95D884EBFA2C0EDB5E9D047CD"><enum>(2)</enum><header>Environmental review</header><text>In carrying out this subtitle, the Administration shall, to the maximum extent practicable—</text> <subparagraph id="HDD6F8A3DC5C64A988E4FE27684893427"><enum>(A)</enum><text>avoid duplicating efforts that have already been undertaken by other agencies (including State agencies acting under Federal programs); and</text> </subparagraph><subparagraph id="H6470DACC345E41D0BB22AD175B724811"><enum>(B)</enum><text>with the advice of the Council on Environmental Quality and any other applicable agencies, use the administrative records of similar reviews conducted throughout the executive branch to develop the most expeditious review process practicable.</text> </subparagraph></paragraph></subsection><subsection id="HA7691D37D4F046BDA64DD2E91AD7259E"><enum>(e)</enum><header>Wage rate requirements</header> <paragraph id="HF40002AAE9434749807DF213351F2DA9"><enum>(1)</enum><header>In general</header><text>No credit support shall be issued under this section unless the borrower has provided to the Administrator of the Administration reasonable assurances that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the Administration will be paid wages at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code.</text> </paragraph><paragraph id="HF0A0992C46EA4265B92D29765731C192"><enum>(2)</enum><header>Labor standards</header><text>With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and <external-xref legal-doc="usc" parsable-cite="usc/40/3145">section 3145</external-xref> of title 40, United States Code.</text> </paragraph></subsection><subsection id="H9EA88E58C9544246AB5CEDED339202B3"><enum>(f)</enum><header>Limitations</header><paragraph commented="no" display-inline="yes-display-inline" id="HD9F3C42290E24382BDF580EE2DE2E789"><enum>(1)</enum><text>The Administration shall not provide direct support as defined under this section or indirect support as defined under section 188 to an individual clean energy technology project that obtained a loan guarantee under title XVII of the Energy Policy Act of 2005.</text> </paragraph><paragraph id="HD7A2F3717ED14DFFA28E284FD0E7D24F" indent="up1"><enum>(2)</enum><text>No direct or indirect support provided by the Administration may be used to pay any part of the cost of an obligation or a loan guarantee under title XVII of the Energy Policy Act of 2005.</text> </paragraph></subsection></section><section id="HFF73F952E5CB446181EF239900007300"><enum>188.</enum><header>Indirect support</header> <subsection id="HC0031F5DB0E24288A2E9971A7C5D04E0"><enum>(a)</enum><header>In general</header><text>For the purpose of enhancing the availability of private financing for clean energy technology deployment, the Administration may—</text> <paragraph id="HAC13E17CDCCA495BBC916950090F4E1B"><enum>(1)</enum><text>provide credit support to portfolios of taxable debt obligations originated by state, local, and private sector entities that enable owners and users of buildings and industrial facilities to—</text> <subparagraph id="H26877175ACC94FDB8B793DDA2D736970"><enum>(A)</enum><text>significantly increase the energy efficiency of such buildings or facilities; or</text> </subparagraph><subparagraph id="H2240353FA31C40AE969027420E754947"><enum>(B)</enum><text>install systems that individually generate electricity from renewable energy resources and have a capacity of no more than 2 megawatts;</text> </subparagraph></paragraph><paragraph id="HCEDA373FF8F84F30AB8BD2A3246A367D"><enum>(2)</enum><text>facilitate financing transactions in tax equity markets and long-term purchasing of clean energy by state, local, and non-governmental not-for-profit entities, to the degree and extent that the Administration determines such financing activity is appropriate and consistent with carrying out the purposes described in Section 182 of this Act; and</text> </paragraph><paragraph id="HB625B84FC24C4D209BDC87A6C1B1AE83"><enum>(3)</enum><text>provide credit support to portfolios of taxable debt obligations originated by state, local, and private sector entities that enable the deployment of energy storage applications for electric drive vehicles, stationary applications, and electricity transmission and distribution.</text> </paragraph></subsection><subsection id="HE324BCDBF6044FA09CC26846319B62F7"><enum>(b)</enum><header>Definitions</header><text>For purposes of the section:</text> <paragraph id="H2BE5C2BB1E66417C99DB8346F5543C1F"><enum>(1)</enum><header>Credit support</header><text>The term <term>credit support</term> means—</text> <subparagraph id="H60AD6996DF0E454CAD8CB9ADE2B2670E"><enum>(A)</enum><text>direct loans, letters of credit, loan guarantees, and insurance products; and</text> </subparagraph><subparagraph id="H4AE5071CE8F743298F412BD3BC029930"><enum>(B)</enum><text>the purchase or commitment to purchase, or the sale or commitment to sell, debt instruments (including subordinated securities).</text> </subparagraph></paragraph><paragraph id="H88858125C3D5438BBAED03911B07F4AD"><enum>(2)</enum><header>Renewable energy resource</header><text>The term <term>renewable energy resource</term> shall have the meaning given that term in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of this Act).</text> </paragraph></subsection><subsection id="HC3E434C9B5274E3FB0E62518279D441E"><enum>(c)</enum><header>Transparency</header><text>The Administration shall seek to foster through its credit support activities—</text> <paragraph id="H38299071C86348FFAA4C2242162CFCD4"><enum>(1)</enum><text>the development and consistent application of standard contractual terms, transparent underwriting standards and consistent measurement and verification protocols, as applicable; and</text> </paragraph><paragraph id="HA07E0F9D642A4847AF8698CD5B06A424"><enum>(2)</enum><text>the creation of performance data that promotes effective underwriting and risk management to support lending markets and stimulate the development of private investment markets.</text> </paragraph></subsection><subsection id="H3F8C96E6534544F0AD3BA716C6EE23C8"><enum>(d)</enum><header>Exempt securities</header><text>All securities insured or guaranteed by the Administration shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to the principal or interest by the United States, be considered to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.</text> </subsection></section><section id="HBD74FEF8B8D142C3B023DD0C5A4A852D"><enum>189.</enum><header>Federal credit authority</header> <subsection id="HA2C1C2B9D49743B5B7D9504CEE8A3582"><enum>(a)</enum><header>Payments of liabilities</header> <paragraph id="HD7531265BB8D4E07A5D7E338F385AD61"><enum>(1)</enum><header>In general</header><text>Any payment made to discharge liabilities arising from agreements under this subtitle shall be paid exclusively out of the Fund or the associated credit account, as appropriate.</text> </paragraph><paragraph id="HC79788F3C6DB40EF835B26300B9428E3"><enum>(2)</enum><header>Security</header><text>Subject to paragraph (1), the full faith and credit of the United States is pledged to the payment of all obligations entered into by the Administration pursuant to this subtitle.</text> </paragraph></subsection><subsection id="H373C209A66694BEC8E0F0DBFB425674E"><enum>(b)</enum><header>Fees</header> <paragraph id="H2EF3EB1D3CF240B09960E5D261B5471D"><enum>(1)</enum><header>In general</header><text>Consistent with achieving the purpose stated in section 182, the Administrator of the Administration shall charge fees or collect compensation generally in accordance with commercial rates.</text> </paragraph><paragraph id="H36D1440047EB461CB92E8CE83F618845"><enum>(2)</enum><header>Availability of fees</header><text>All fees collected by the Administration may be retained by the Administration and placed in the Fund and may remain available to the Administration, without further appropriation or fiscal year limitation, for use in carrying out the purpose stated in section 182.</text> </paragraph><paragraph id="H4D7EC9EF4D0A464C9482910695E6628A"><enum>(3)</enum><header>Breakthrough technologies</header><text>The Administration shall charge the minimum amount in fees or compensation practicable for breakthrough technologies, consistent with the long-term viability of the Administration, unless the Administration first determines that a higher charge will not impede the development of the technology.</text> </paragraph><paragraph id="H4DB1D7FD4AD94B2391697E032CDC966F"><enum>(4)</enum><header>Alternative fee arrangements</header><text>The Administration may use such alternative arrangements (such as profit participation, contingent fees, and other valuable contingent interests) as the Administration considers appropriate to compensate the Administration for the expenses of the Administration and the risk inherent in the support of the Administration.</text> </paragraph></subsection><subsection id="H0684C3C6952E4A759E616ECC21751A63"><enum>(c)</enum><header>Cost transfer authority</header><text>Amounts collected by the Administration for the cost of a loan or loan guarantee shall be transferred by the Administration to the respective credit accounts.</text> </subsection></section><section id="HA8007CD7582749F2A972BAB963BADFEE"><enum>190.</enum><header>General provisions</header> <subsection id="HFF2B2AC0BDC8475987930898EF41FFD0"><enum>(a)</enum><header>Immunity from impairment, limitation, or restriction</header> <paragraph id="H377B7A8108524BB497DA11D89F2EBB1B"><enum>(1)</enum><header>In general</header><text>All rights and remedies of the Administration (including any rights and remedies of the Administration on, under, or with respect to any mortgage or any obligation secured by a mortgage) shall be immune from impairment, limitation, or restriction by or under—</text> <subparagraph id="H58FA00057335444EAC81BE142B232718"><enum>(A)</enum><text>any law (other than a law enacted by Congress expressly in limitation of this paragraph) that becomes effective after the acquisition by the Administration of the subject or property on, under, or with respect to which the right or remedy arises or exists or would so arise or exist in the absence of the law; or</text> </subparagraph><subparagraph id="H5020A1C826F649569A7C880CD42A9E69"><enum>(B)</enum><text>any administrative or other action that becomes effective after the acquisition.</text> </subparagraph></paragraph><paragraph id="HAFBA12B0A0DA4EA789721936F26D0A1F"><enum>(2)</enum><header>State law</header><text>The Administrator of the Administration may conduct the business of the Administration without regard to any qualification or law of any State relating to incorporation.</text> </paragraph></subsection><subsection id="HA0417C31627E4F558118D222F7151C97"><enum>(b)</enum><header>Use of other agencies</header><text>With the consent of a department, establishment, or instrumentality (including any field office), the Administration may—</text> <paragraph id="HD39EB2D89DEA4E40A7EBFCFE4E5147D7"><enum>(1)</enum><text>use and act through any department, establishment, or instrumentality; and</text> </paragraph><paragraph id="H41896CE12BB443E69540AE9BEEB46DA0"><enum>(2)</enum><text>use, and pay compensation for, information, services, facilities, and personnel of the department, establishment, or instrumentality.</text> </paragraph></subsection><subsection id="HCCD5B01847C0413E802CF62735947044"><enum>(c)</enum><header>Financial matters</header> <paragraph id="HCD01838A8112451B9D182ECA4C8765DA"><enum>(1)</enum><header>Investments</header><text>Funds of the Administration may be invested in such investments as the Board of Directors may prescribe. Earnings from such funds, other than fees collected under section 189, may be spent by the Administration only to such extent or in such amounts as are provided in advance by appropriation Acts.</text> </paragraph><paragraph id="H008667CE9AAA40D3B847F13E52656851"><enum>(2)</enum><header>Fiscal agents</header><text>Any Federal Reserve bank or any bank as to which at the time of the designation of the bank by the Administrator of the Administration there is outstanding a designation by the Secretary of the Treasury as a general or other depository of public money, may be designated by the Administrator of the Administration as a depositary or custodian or as a fiscal or other agent of the Administration.</text> </paragraph></subsection><subsection id="H152FA5AA31454C56BF41E63F524A8DA1"><enum>(d)</enum><header>Periodic reports</header><text>Not later than 1 year after commencement of operation of the Administration and at least biannually thereafter, the Administrator of the Administration shall submit to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House of Representatives a report that includes a description of—</text> <paragraph id="H9D4423ED274C4732B9BE4376571EAB21"><enum>(1)</enum><text>the technologies supported by activities of the Administration and how the activities advance the purpose stated in section 182; and</text> </paragraph><paragraph id="H982C399E24BE45B2B7B948AFDBFDA898"><enum>(2)</enum><text>the performance of the Administration on meeting the goals established under section 185.</text> </paragraph></subsection><subsection id="HC6459EB249AB492E9B373DFD8D8DF5A3"><enum>(g)</enum><header>Audits by the comptroller general</header> <paragraph id="HE7B88883BDA44EB08CB975F144490FDB"><enum>(1)</enum><header>In general</header><text>The programs, activities, receipts, expenditures, and financial transactions of the Administration shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General.</text> </paragraph><paragraph id="H663DEF22084B41ADA656902C62435BEA"><enum>(2)</enum><header>Access</header><text>The representatives of the Government Accountability Office shall—</text> <subparagraph id="HB88BF679A8A14A72896938E43CFEC2E9"><enum>(A)</enum><text>have access to the personnel and to all books, accounts, documents, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to, under the control of, or in use by the Administration, or any agent, representative, attorney, advisor, or consultant retained by the Administration, and necessary to facilitate the audit;</text> </subparagraph><subparagraph id="HF42C781AF4684F24A0924C3EAB83A97D"><enum>(B)</enum><text>be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians;</text> </subparagraph><subparagraph id="HC6DF852EDF264A6C9E7294599A47BD77"><enum>(C)</enum><text>be authorized to obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to the audit without cost to the Comptroller General; and</text> </subparagraph><subparagraph id="HB17E7B3A7C4C4DD9A9754090D8894047"><enum>(D)</enum><text>have the right of access of the Comptroller General to such information pursuant to <external-xref legal-doc="usc" parsable-cite="usc/31/716">section 716(c)</external-xref> of title 31, United States Code.</text> </subparagraph></paragraph><paragraph id="H71215255992D4AAC8823AA4F5AC9731C"><enum>(3)</enum><header>Assistance and cost</header> <subparagraph id="HA62E94CAB4CB46CEBB11EE3526A0D35F"><enum>(A)</enum><header>In general</header><text>For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to section 3709 of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/41/5">41 U.S.C. 5</external-xref>), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes.</text> </subparagraph><subparagraph id="H99A15547F00A4F4CBCB4ADF35D580E1A"><enum>(B)</enum><header>Reimbursement</header> <clause id="HF976A1B833F6456486DF575F61950013"><enum>(i)</enum><header>In general</header><text>On the request of the Comptroller General, the Administration shall reimburse the Government Accountability Office for the full cost of any audit conducted by the Comptroller General under this subsection.</text> </clause><clause id="H44370B7A18084EF79D76AF8438F208A8"><enum>(ii)</enum><header>Crediting</header><text>Such reimbursements shall—</text> <subclause id="HF90DB84B3ECD4A98B612D6DE33EF5697"><enum>(I)</enum><text>be credited to the appropriation account entitled <quote>Salaries and Expenses, Government Accountability Office</quote> at the time at which the payment is received; and</text> </subclause><subclause id="H3B3A9C27A50E43618C18039164828C95"><enum>(II)</enum><text>remain available until expended.</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="HC83F0A9C6888409FA6CA767958F0725C"><enum>(h)</enum><header>Annual independent audits</header> <paragraph id="H9CBAD9CC163A40848651FAE1D168558A"><enum>(1)</enum><header>In general</header><text>The Administrator of the Administration shall—</text> <subparagraph id="H57DA7BA6748841F6A246FE263B93A4CD"><enum>(A)</enum><text>have an annual independent audit made of the financial statements of the Administration by an independent public accountant in accordance with generally accepted auditing standards; and</text> </subparagraph><subparagraph id="H564266F4D56F456E91CECA671EE7CAA5"><enum>(B)</enum><text>submit to the Secretary and to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House the results of the audit.</text> </subparagraph></paragraph><paragraph id="H79497751936E4474A0B1F55E3966DBE2"><enum>(2)</enum><header>Content</header><text>In conducting an audit under this subsection, the independent public accountant shall determine and report on whether the financial statements of the Administration—</text> <subparagraph id="H074199F6B6D7487F9651DB3242771BC2"><enum>(A)</enum><text>are presented fairly in accordance with generally accepted accounting principles; and</text> </subparagraph><subparagraph id="H17DFDC185B2B4587B48D86352BBC9CFB"><enum>(B)</enum><text>comply with any disclosure requirements imposed under this subtitle.</text> </subparagraph></paragraph></subsection><subsection id="HF9697F37365D4F5689358B96182B0B81"><enum>(i)</enum><header>Financial reports</header> <paragraph id="H45BA940FFFCB442DAF4C7F548B282DAD"><enum>(1)</enum><header>In general</header><text>The Administrator of the Administration shall submit to the Secretary and to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House annual and quarterly reports of the financial condition and operations of the Administration, which shall be in such form, contain such information, and be submitted on such dates as the Secretary shall require.</text> </paragraph><paragraph id="H25AEBBF41B844B1E97F0DE3C1CF3EE4F"><enum>(2)</enum><header>Contents of annual reports</header><text>Each annual report shall include—</text> <subparagraph id="H4CDE3408DF57445088C428503AC3B278"><enum>(A)</enum><text>financial statements prepared in accordance with generally accepted accounting principles;</text> </subparagraph><subparagraph id="HB619AD9DA0B142ABBEFF7EC85E91BAED"><enum>(B)</enum><text>any supplemental information or alternative presentation that the Secretary may require; and</text> </subparagraph><subparagraph id="HC3043575156F4DB6A39F2F2689744CA5"><enum>(C)</enum><text>an assessment (as of the end of the most recent fiscal year of the Administration), signed by the chief executive officer and chief accounting or financial officer of the Administration, of—</text> <clause id="HE1070E5093B5431D82335F51F118FD37"><enum>(i)</enum><text>the effectiveness of the internal control structure and procedures of the Administration; and</text> </clause><clause id="H627C414E402E4473B9BE8B8E06C6B480"><enum>(ii)</enum><text>the compliance of the Administration with applicable safety and soundness laws.</text> </clause></subparagraph></paragraph><paragraph id="H4B75F3BE99274BB6ACEFBCC6E5498638"><enum>(3)</enum><header>Special reports</header><text>The Secretary may require the Administrator of the Administration to submit other reports on the condition (including financial condition), management, activities, or operations of the Administration, as the Secretary considers appropriate.</text> </paragraph><paragraph id="HEE5384FF6A3F42CA855AF404897553A4"><enum>(4)</enum><header>Accuracy</header><text>Each report of financial condition shall contain a declaration by the Administrator of the Administration or any other officer designated by the Board of Directors of the Administration to make the declaration, that the report is true and correct to the best of the knowledge and belief of the officer.</text> </paragraph><paragraph id="H0083A2A6A3C448E7B44AE4C6AD02E49A"><enum>(5)</enum><header>Availability of reports</header><text>Reports required under this section shall be published and made publicly available as soon as is practicable after receipt by the Secretary.</text> </paragraph></subsection><subsection id="H3520B31A0ED54F99BAB273D6AB51FB27"><enum>(j)</enum><header>Spending safeguards and reporting</header> <paragraph id="HAF275521265C41DAAD3009F6C65F9830"><enum>(1)</enum><header>In general</header><text>The Administrator—</text> <subparagraph id="H1F1F5823FE9142EEA5BE5B9100188BF8"><enum>(A)</enum><text>shall require any entity receiving financing support from the Administration to report quarterly, in a format specified by the Administrator, on such entity’s use of such support and its progress fulfilling the objectives for which such support was granted, and the Administrator shall make these reports available to the public;</text> </subparagraph><subparagraph id="H26A324FC1F644EDCB35E7290E6B1A53F"><enum>(B)</enum><text>may establish additional reporting and information requirements for any recipient of financing support from the Administration;</text> </subparagraph><subparagraph id="H9BDB1ED408E741649092B4985E36E0C0"><enum>(C)</enum><text>shall establish appropriate mechanisms to ensure appropriate use and compliance with all terms of any financing support from the Administration;</text> </subparagraph><subparagraph id="H40DD98B2C52E44D18C975BA41FF659D8"><enum>(D)</enum><text>shall create and maintain a fully searchable database, accessible on the Internet (or successor protocol) at no cost to the public, that contains at least—</text> <clause id="HBC138AA3F89540AAA757D4475768DEAB"><enum>(i)</enum><text>a list of each entity that has applied for financing support;</text> </clause><clause id="H46153B97E3E044B5AFCF4648E5A5E069"><enum>(ii)</enum><text>a description of each application;</text> </clause><clause id="H56BED57827A14326A649FC31A29BDBCC"><enum>(iii)</enum><text>the status of each such application;</text> </clause><clause id="HFBD7D0E8D3EF4AC1B1CA6A7EBDD441E6"><enum>(iv)</enum><text>the name of each entity receiving financing support;</text> </clause><clause id="H5FC61FF703F04358A52BEB846CE7E965"><enum>(v)</enum><text>the purpose for which such entity is receiving such financing support;</text> </clause><clause id="H53B1285485D543C9AEF30C22CAA0C6DB"><enum>(vi)</enum><text>each quarterly report submitted by the entity pursuant to this section; and</text> </clause><clause id="H9F21C17BEC2A415D9D82DA9FB75D04B4"><enum>(vii)</enum><text>such other information sufficient to allow the public to understand and monitor the financial support provided by the Administration;</text> </clause></subparagraph><subparagraph id="H471785A9FFC74F4EA92FC0FE38D8D2BB"><enum>(E)</enum><text>shall make all financing transactions available for public inspection, including formal annual reviews by both a private auditor and the Comptroller General; and</text> </subparagraph><subparagraph id="H484664E9C16F46DBB74A5B4A48CDBE3B"><enum>(F)</enum><text>shall at all times be available to receive public comment in writing on the activities of the Administration.</text> </subparagraph></paragraph><paragraph id="H3D65A0B4FAB44C3A8CFD6CAF102AB6B1"><enum>(2)</enum><header>Protection of confidential business information</header><text>To the extent necessary and appropriate, the Administrator may redact any information regarding applicants and borrowers to protect confidential business information.</text> </paragraph></subsection></section><section id="H679B1AB9447F447DB2AEBF5ABC5E4A6A"><enum>191.</enum><header>Conforming amendments</header> <subsection id="H2FC6763CBDA64EE29CE044D1B3E7D7AE"><enum>(a)</enum><header>Tax exempt status</header><text>Subsection (l) of <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following:</text> <quoted-block id="HB80C4753D7114E528AD13AA583FE6301" style="OLC"> <paragraph id="H3F895DA108AE43578986119EF909B2B8"><enum>(4)</enum><text>The Clean Energy Deployment Administration established under section 186 of the American Clean Energy and Security Act of 2009.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC30EED558B20473689AF1330FA209B2C"><enum>(b)</enum><header>Wholly owned government corporation</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/31/9101">section 9101</external-xref> of title 31, United States Code, is amended by adding at the end the following:</text> <quoted-block id="H3BB6972142124A748D870DC99614C290" style="OLC"> <subparagraph id="HDE73EAFEFEBC4058AC0B91D3312EC02D"><enum>(S)</enum><text>the Clean Energy Deployment Administration.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle><subtitle id="H4C56E1F5BC2849E3BBFDC58DC98C3038"><enum>J</enum><header>Miscellaneous</header> <section id="H612F2922030F493498C0D72624480A22"><enum>195.</enum><header>Increased hydroelectric generation at existing Federal facilities</header> <subsection id="H606939B1E21D4E68A0A85A3CDF5053E4"><enum>(a)</enum><header>In general</header><text>The Secretary of the Interior, the Secretary of Energy, and the Secretary of the Army shall jointly update the study of the potential for increasing electric power production capability at federally owned or operated water regulation, storage, and conveyance facilities required in section 1834 of the Energy Policy Act of 2005.</text> </subsection><subsection id="H29808DF497084B1C9111FA9B80D4E037"><enum>(b)</enum><header>Content</header><text>The update under this section shall include identification and description in detail of each facility that is capable, with or without modification, of producing additional hydroelectric power, including estimation of the existing potential for the facility to generate hydroelectric power.</text> </subsection><subsection id="HBAEF4BC44F7242789027ED50629AA9B9"><enum>(c)</enum><header>Report</header><text>The Secretaries shall submit to the Committees on Energy and Commerce, Natural Resources, and Transportation and Infrastructure of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on the findings, conclusions, and recommendations of the update of the study under this section by not later than 12 months after the date of enactment of this Act. The report shall include each of the following:</text> <paragraph id="H0C8E4B0ADCE1407798516BD170FD2758"><enum>(1)</enum><text>The identifications, descriptions, and estimations referred to in subsection (b).</text> </paragraph><paragraph id="H33D1C4D5D1154E19944BF226389F4425"><enum>(2)</enum><text>A description of activities currently conducted or considered, or that could be considered, to produce additional hydroelectric power from each identified facility.</text> </paragraph><paragraph id="H753A6A20C11E4C95BB660A61924FADC8"><enum>(3)</enum><text>A summary of prior actions taken by the Secretaries to produce additional hydroelectric power from each identified facility.</text> </paragraph><paragraph id="H0F2ECB6A629848C7BAB5653884B099DD"><enum>(4)</enum><text>The costs to install, upgrade, or modify equipment or take other actions to produce additional hydroelectric power from each identified facility, and the level of Federal power customer involvement in the determination of such costs.</text> </paragraph><paragraph id="HB2C5A1D3BAE04C45BA6819D155EE1251"><enum>(5)</enum><text>The benefits that would be achieved by such installation, upgrade, modification, or other action, including quantified estimates of any additional energy or capacity from each facility identified under subsection (b).</text> </paragraph><paragraph id="H49EE0F70507F4B4EB6E7C26CFAF65B43"><enum>(6)</enum><text>A description of actions that are planned, underway, or might reasonably be considered to increase hydroelectric power production by replacing turbine runners, by performing generator upgrades or rewinds, or by construction of pumped storage facilities.</text> </paragraph><paragraph id="H0F66C913BA2B4C75A53C92D214D0E667"><enum>(7)</enum><text>The impact of increased hydroelectric power production on irrigation, water supply, fish, wildlife, Indian tribes, river health, water quality, navigation, recreation, fishing, and flood control.</text> </paragraph><paragraph id="H23D33CCDBF07473D94543529167BC383"><enum>(8)</enum><text>Any additional recommendations to increase hydroelectric power production from, and reduce costs and improve efficiency at, federally owned or operated water regulation, storage, and conveyance facilities.</text> </paragraph></subsection></section><section id="H33536BDB53484880BC4A1FC3C1B76888"><enum>196.</enum><header>Clean technology business competition grant program</header> <subsection id="H9860D6414836457B86FD56300E18B352"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Energy is authorized to provide grants to organizations to conduct business competitions that provide incentives, training, and mentorship to entrepreneurs, including minority-owned and woman-owned, and early stage start-up companies throughout the United States to meet high priority economic, environmental, and energy security goals in areas to include energy efficiency, renewable energy, air quality, water quality and conservation, transportation, smart grid, green building, and waste management. Such competitions shall have the purpose of accelerating the development and deployment of clean technology businesses and green jobs; stimulating green economic development; providing business training and mentoring to early stage clean technology companies; and strengthening the competitiveness of United States clean technology industry in world trade markets. Priority shall be given to business competitions that are private sector led, encourage regional and interregional cooperation, and can demonstrate market-driven practices and show the creation of cost-effective green jobs through an annual publication of competition activities and directory of companies.</text> </subsection><subsection id="H8270258B5C4E4ED8A2B1303D28532EC8"><enum>(b)</enum><header>Eligibility</header><text display-inline="yes-display-inline">An organization eligible for a grant under subsection (a) is—</text> <paragraph id="H2E8842B5577C41B0BCEBF67772E39AF1"><enum>(1)</enum><text>any organization described in <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)(3)</external-xref> of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; and</text> </paragraph><paragraph id="H3C49BC5476CE4716912568B2D6A222DF"><enum>(2)</enum><text display-inline="yes-display-inline">any sponsored entity of an organization described in paragraph (1) that is operated as a nonprofit entity.</text> </paragraph></subsection><subsection id="HF734A0CF0EB74706B0957F084C9B34D6"><enum>(c)</enum><header>Priority</header><text>In making grants under this section, the Secretary shall give priority to those organizations that can demonstrate broad funding support from private and other non-Federal funding sources to leverage Federal investment.</text> </subsection><subsection id="HEB9DBAFCDE854306AEDDB821DFD57559"><enum>(d)</enum><header>Authorization of appropriations</header><text>For the purpose of carrying out this section, there are authorized to be appropriated $20,000,000.</text> </subsection></section><section id="H4F771DB4323E4FC6BDEE568BDA9ADAC3"><enum>197.</enum><header>National Bioenergy Partnership</header> <subsection id="H893526F59F594786B34C25C84027957B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Energy shall establish a National Bioenergy Partnership to provide coordination among programs of State governments, the Federal Government, and the private sector that support the institutional and physical infrastructure necessary to promote the deployment of sustainable biomass fuels and bioenergy technologies for the United States.</text> </subsection><subsection id="H78AB63FA3F8A4F59BAD11858FD5236F1"><enum>(b)</enum><header>Program</header><text>The National Bioenergy Partnership shall consist of five regions, to be administered by the CONEG Policy Research Center, the Council of Great Lakes Governors, the Southern States Energy Board, the Western Governors Association, and the Pacific Regional Biomass Energy Partnership led by the Washington State University Energy Program.</text> </subsection><subsection id="HDA874591F58143F9837487064046E2E4"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated for each of fiscal years 2010 through 2014 to carry out this section—</text> <paragraph id="HC46C2883D55F410E8E083B04DB9E291C"><enum>(1)</enum><text>$5,000,000, to be allocated among the 5 regions described in subsection (b) on the basis of the number of States in each region, for distribution among the member States of that region based on procedures developed by the member States of the region; and</text> </paragraph><paragraph id="H8444C3E778934755B850F0566B59DCCF"><enum>(2)</enum><text>$2,500,000, to be allocated equally among the 5 regions described in subsection (b) for region-wide activities, including technical assistance and regional studies and coordination.</text> </paragraph></subsection></section><section id="H2B0FF7E78FF74C7A9D533AB2AF2BD2BB"><enum>198.</enum><header>Office of Consumer Advocacy</header><text display-inline="no-display-inline">Section 319 of the Federal Power Act is amended to read as follows:</text> <quoted-block id="HFB5F3249666540EE9974C24541B71320" style="OLC"> <section id="HC841782D54EB4F4C8E96CB52049EC7CE"><enum>319.</enum><header>Office of Consumer Advocacy</header> <subsection id="H74EFEA2AB04A40D38856AB1370AEB34E"><enum>(a)</enum><header>Office</header> <paragraph id="H0B2F08C2BE444134BB63DA75AE48F907"><enum>(1)</enum><header>Establishment</header><text>There is established within the Commission an Office of Consumer Advocacy to serve as an advocate for the public interest. The Office of Administrative Litigation within the Commission shall be incorporated into the Office of Consumer Advocacy.</text> </paragraph><paragraph id="HA8A0C70F52734084B40DC251CFA6A040"><enum>(2)</enum><header>Director</header><text>The Office shall be headed by a Director to be appointed by the President by and with the advice and consent of the Senate from among individuals who are licensed attorneys admitted to the Bar of any State or of the District of Columbia and who have experience in public utility proceedings.</text> </paragraph><paragraph id="H60C47CC59F0D4544822DA89F1E917281"><enum>(3)</enum><header>Duties</header><text>The Office may—</text> <subparagraph id="H0C63F426FA2F4358BE3089597D49EE06"><enum>(A)</enum><text>represent the interests of energy customers—</text> <clause id="H6BBEBDC6B23C48C6B80237DA4995619F"><enum>(i)</enum><text>on matters before the Commission concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission;</text> </clause><clause id="HEA5A85F30CD746E99572F194DEC8E965"><enum>(ii)</enum><text>as amicus curiae, in the review in the courts of the United States of rulings by the Commission in such matters; and</text> </clause><clause id="H0FF3CCDC11924AEEB6108CC4B7576AAE"><enum>(iii)</enum><text>as amicus, in hearings and proceedings in other Federal regulatory agencies and commissions related to such matters;</text> </clause></subparagraph><subparagraph id="HE1DF8CBE4FC147439E71DEDE0AF4305C"><enum>(B)</enum><text>monitor and review energy customer complaints and grievances on matters concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission;</text> </subparagraph><subparagraph id="HEAE4EF3E3AE848CCB84AFF73153164D2"><enum>(C)</enum><text>investigate independently, or within the context of formal proceedings, the services provided by, the rates charged by, and the valuation of the properties of, public utilities and natural gas companies under the jurisdiction of the Commission;</text> </subparagraph><subparagraph id="H6386C3276F254922A0F3A0555B7E86E9"><enum>(D)</enum><text>develop means, such as public dissemination of information, consultative services, and technical assistance, to ensure, to the maximum extent practicable, that the interests of energy consumers are adequately represented in the course of any hearing or proceeding described in subparagraph (A);</text> </subparagraph><subparagraph id="H9939647DB92E4FD2AC4ED4FB9FF4B221"><enum>(E)</enum><text>collect data concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission; and</text> </subparagraph><subparagraph id="H4F6ACFE30AA04D85A172F7E6116B6E9B"><enum>(F)</enum><text>prepare and issue reports and recommendations.</text> </subparagraph></paragraph><paragraph id="H7EE7D2E03C0643F18ECD8B49593C7D0B"><enum>(4)</enum><header>Compensation and powers</header><text>The Director shall be compensated at Level IV of the Executive Schedule. The Director may—</text> <subparagraph id="HEFAF8F86EB444837BBD63875D9B21EF8"><enum>(A)</enum><text>employ not more than 25 full-time professional employees at appropriate levels in the GS Scale and such additional support personnel as required; and</text> </subparagraph><subparagraph id="H0881F2C8ADF54FFABD67F552587C1B18"><enum>(B)</enum><text>procure temporary and intermittent services as needed.</text> </subparagraph></paragraph><paragraph id="H558B87C5A5294258BA71D0E984DDFBA2"><enum>(5)</enum><header>Information from other Federal agencies</header><text>The Director may request, from any department, agency, or instrumentality of the United States such information as he deems necessary to carry out his functions under this section. Upon such request, the head of the department, agency, or instrumentality concerned shall, to the extent practicable and authorized by law, provide such information to the Office.</text> </paragraph></subsection><subsection id="H7667A67F31CB46DAA9A6E4CF2C60470C"><enum>(b)</enum><header>Consumer Advocacy Advisory Committee</header> <paragraph id="HA8DC5EC972E64D3C98D54B168268C3A0"><enum>(1)</enum><header>Establishment</header><text>The Director shall establish an advisory committee to be known as Consumer Advocacy Advisory Committee (in this section referred to as the <quote>Advisory Committee</quote>) to review rates, services, and disputes and to make recommendations to the Director.</text> </paragraph><paragraph id="H55998D12C10D4067A19E376B7C7DF8F8"><enum>(2)</enum><header>Composition</header><text>The Director shall appoint 5 members to the Advisory Committee including—</text> <subparagraph id="H40CD22173052432FA06E1B2E0A0109F1"><enum>(A)</enum><text>2 individuals representing State utility consumer advocates; and</text> </subparagraph><subparagraph id="H6ED3D2CA43AC44039A1B33F59035200F"><enum>(B)</enum><text>1 individual, from a nongovernmental organization representing consumers.</text> </subparagraph></paragraph><paragraph id="HB960977D9F4D47E4BC7A81F3DF625B0E"><enum>(3)</enum><header>Meetings</header><text>The Advisory Committee shall meet at such frequency as may be required to carry out its duties.</text> </paragraph><paragraph id="H56F10F46A7964EC2BBF422F6B4FB9556"><enum>(4)</enum><header>Reports</header><text>The Director shall provide for the publication of recommendations of the Advisory Committee on the public website established for the Office.</text> </paragraph><paragraph id="H5F778EA347124C9386DE6BFA054E0F2A"><enum>(5)</enum><header>Duration</header><text>Notwithstanding any other provision of law, the Advisory Committee shall continue in operation during the period for which the Office exists.</text> </paragraph></subsection><subsection id="HC45F751973F4437E95AF6B2DDCD77545"><enum>(c)</enum><header>Definitions</header> <paragraph id="H65BE4599BF064913A9A01EDC46510A06"><enum>(1)</enum><header>Energy customer</header><text>The term <quote>energy customer</quote> means a residential customer or a small commercial customer that receives products or services directly or indirectly from a public utility or natural gas company under the jurisdiction of the Commission.</text> </paragraph><paragraph id="H19E22A4D2E31417BA1B9BCC41137EF61"><enum>(2)</enum><header>Natural gas company</header><text>The term <quote>natural gas company</quote> has the meaning given the term in section 2 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717a">15 U.S.C. 717a</external-xref>), as modified by section 601(a) of the Natural Gas Policy Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/15/3431">15 U.S.C. 3431(a)</external-xref>).</text> </paragraph><paragraph id="H767E4A9C472B4421A75CA2D5C0567E6E"><enum>(3)</enum><header>Office</header><text>The term <quote>Office</quote> means the Office of Consumer Advocacy established under this section.</text> </paragraph><paragraph id="H9016E2CB47144C9BB131FF0FD019C305"><enum>(4)</enum><header>Public utility</header><text>The term <quote>public utility</quote> has the meaning given the term in section 201(e) of this Act.</text> </paragraph><paragraph id="HFD1D16E0E20844DAA4B744F6CA0FA22E"><enum>(5)</enum><header>Small commercial customer</header><text>The term <quote>small commercial customer</quote> means a commercial customer that has a peak demand of not more than 1,000 kilowatts per hour.</text> </paragraph></subsection><subsection id="H1CDDED6FA872414D8A4362D21123F6B7"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as necessary to carry out this section.</text> </subsection><subsection id="HDEFDE64910DD4634970F4D7B21B56D40"><enum>(e)</enum><header>Savings clause</header><text>Nothing in this section affects the rights or obligations of any State utility consumer advocate.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H34CCF3B93B574739969AF272BDE60F44"><enum>199.</enum><header>Development corporation for renewable power borrowing authority</header> <subsection id="HDF14FD9B0E33460E89E3BA69BBCF8F41"><enum>(a)</enum><header>Determination</header><text>No later than 6 months after the date of enactment of this Act, the Secretary of Energy, in coordination with the Secretary of Commerce, shall—</text> <paragraph id="HA08CEDFB82E448199E533EA0AC6102F6"><enum>(1)</enum><text>determine any geographic area within the contiguous United States that lacks a Federal power marketing agency;</text> </paragraph><paragraph id="H5DDD0D487D134552AE81F5BC4BCB8A83"><enum>(2)</enum><text display-inline="yes-display-inline">develop a plan or criteria for the geographic areas identified in paragraph (1) regarding investment in renewable energy and associated infrastructure within an area identified in paragraph (1); and</text> </paragraph><paragraph id="H109C598C6E0C46048BFA58399470610E"><enum>(3)</enum><text>identify any Federal agency within an area in paragraph (1) that has, or could develop, the ability to facilitate the investment in paragraph (2).</text> </paragraph></subsection><subsection id="H2A144FA61BBB48E4A605CEEC6B8A26C5"><enum>(b)</enum><header>Report</header><text>The Secretary of Energy, in coordination with the Secretary of Commerce, shall provide the determinations made under subsection (a) to the Committee on Energy and Commerce of the House of Representatives.</text> </subsection><subsection id="H1A187CE16E5147EBAF4CE374AF0E9EB7"><enum>(c)</enum><header>Establishment</header><text>Based upon the determinations made pursuant to subsection (a), the Secretary of Energy, in coordination with the Secretary of Commerce, shall recommend to the Committee on Energy and Commerce of the House of Representatives the establishment of any new Federal lending authority, including authorization of additional lending authority for existing Federal agencies, not to exceed $3,500,000,000 per geographic area identified in subsection (a)(1).</text> </subsection><subsection id="H05D254D5BF124E05A6DD4C76A21F8989"><enum>(d)</enum><header>Authorization</header><text>$25,000,000 is authorized to be appropriated for fiscal year 2010 to carry out the provisions of this section.</text> </subsection></section><section id="H303E91237A1941BB9434563EFE28C521" section-type="subsequent-section"><enum>199A.</enum><header>Study</header><text display-inline="no-display-inline">Not later than February 1, 2011, the Secretary of Energy shall transmit to the Congress a report showing the results of a study on the use of thorium-fueled nuclear reactors for national energy needs. Such report shall include a response to the International Atomic Energy Agency study entitled <quote>Thorium fuel cycle - Potential benefits and challenges</quote> (IAEA–TECDOC

Short title; table of contents

(a)

Short title

This Act may be cited as the

American Clean Energy and Security Act of 2009

. (b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

Sec. 3. International participation.

Title I—Clean Energy

Subtitle A—Combined Efficiency and Renewable Electricity Standard

Sec. 101. Combined efficiency and renewable electricity standard.

Sec. 610. Combined efficiency and renewable electricity standard.

Sec. 102. Clarifying State authority to adopt renewable energy incentives.

Sec. 103. Federal renewable energy purchases.

Subtitle B—Carbon Capture and Sequestration

Sec. 111. National strategy.

Sec. 112. Regulations for geologic sequestration sites.

Sec. 813. Geologic sequestration sites.

Sec. 113. Studies and reports.

Sec. 114. Carbon capture and sequestration demonstration and early deployment program.

Sec. 115. Commercial deployment of carbon capture and sequestration technologies.

Sec. 786. Commercial deployment of carbon capture and sequestration technologies.

Sec. 116. Performance standards for coal-fueled power plants.

Sec. 812. Performance standards for new coal-fired power plants.

Subtitle C—Clean Transportation

Sec. 121. Electric vehicle infrastructure.

Sec. 122. Large-scale vehicle electrification program.

Sec. 123. Plug-in electric drive vehicle manufacturing.

Sec. 124. Investment in clean vehicles.

Sec. 125. Advanced technology vehicle manufacturing incentive loans.

Sec. 126. Definition of renewable biomass.

Sec. 127. Open fuel standard.

Sec. 32920. Open fuel standard for transportation.

Sec. 128. Diesel emissions reduction.

Sec. 129. Loan guarantees for projects to construct renewable fuel pipelines.

Sec. 130. Fleet vehicles.

Sec. 130A. Report on natural gas vehicle emissions reductions.

Subtitle D—State Energy and Environment Development Accounts

Sec. 131. Establishment of SEED Accounts.

Sec. 132. Support of State renewable energy and energy efficiency programs.

Sec. 133. Support of Indian renewable energy and energy efficiency programs.

Subtitle E—Smart Grid Advancement

Sec. 141. Definitions.

Sec. 142. Assessment of Smart Grid cost effectiveness in products.

Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE labels.

Sec. 144. Smart Grid peak demand reduction goals.

Sec. 145. Reauthorization of energy efficiency public information program to include Smart Grid information.

Sec. 146. Inclusion of Smart Grid features in appliance rebate program.

Subtitle F—Transmission Planning

Sec. 151. Transmission planning and siting.

Sec. 216A Transmission planning.

Sec. 216B. Siting and construction in the Western Interconnection.

Sec. 152. Net metering for Federal agencies.

Sec. 153. Support for qualified advanced electric transmission manufacturing plants, qualified high efficiency transmission property, and qualified advanced electric transmission property.

Subtitle G—Technical Corrections to Energy Laws

Sec. 161. Technical corrections to Energy Independence and Security Act of 2007.

Sec. 162. Technical corrections to Energy Policy Act of 2005.

Subtitle H—Energy and Efficiency Centers and Research

Sec. 171. Energy Innovation Hubs.

Sec. 172. Advanced energy research.

Sec. 173. Building Assessment Centers.

Sec. 174. Centers for Energy and Environmental Knowledge and Outreach.

Sec. 175. High efficiency gas turbine research, development, and demonstration.

Subtitle I—Nuclear and Advanced Technologies

Sec. 181. Revisions to loan guarantee program authority.

Sec. 182. Purpose.

Sec. 183. Definitions.

Sec. 184. Clean energy investment fund.

Sec. 185. Energy technology deployment goals.

Sec. 186. Clean energy deployment administration.

Sec. 187. Direct support.

Sec. 188. Indirect support.

Sec. 189. Federal credit authority.

Sec. 190. General provisions.

Sec. 191. Conforming amendments.

Subtitle J—Miscellaneous

Sec. 195. Increased hydroelectric generation at existing Federal facilities.

Sec. 196. Clean technology business competition grant program.

Sec. 197. National Bioenergy Partnership.

Sec. 198. Office of Consumer Advocacy.

Sec. 319. Office of Consumer Advocacy.

Sec. 199. Development corporation for renewable power borrowing authority.

Sec. 199A. Study.

Title II—Energy Efficiency

Subtitle A—Building Energy Efficiency Programs

Sec. 201. Greater energy efficiency in building codes.

Sec. 304. Greater energy efficiency in building codes.

Sec. 202. Building retrofit program.

Sec. 203. Energy efficient manufactured homes.

Sec. 204. Building energy performance labeling program.

Sec. 205. Tree planting programs.

Sec. 206. Energy efficiency for data center buildings.

Sec. 207. Community building code administration grants.

Sec. 208. Solar energy systems building permit requirements for receipt of community development block grant funds.

Sec. 209. Prohibition of restrictions on residential installation of solar energy system.

Subtitle B—Lighting and Appliance Energy Efficiency Programs

Sec. 211. Lighting efficiency standards.

Sec. 212. Other appliance efficiency standards.

Sec. 213. Appliance efficiency determinations and procedures.

Sec. 334. Jurisdiction and venue.

Sec. 214. Best-in-Class Appliances Deployment Program.

Sec. 215. WaterSense.

Sec. 216. Federal procurement of water efficient products.

Sec. 217. Early adopter water efficient product incentive programs.

Sec. 218. Certified stoves program.

Sec. 219. Energy Star standards.

Subtitle C—Transportation Efficiency

Sec. 221. Emissions standards.

Part B—Mobile Sources

Sec. 821. Greenhouse gas emission standards for mobile sources.

Sec. 222. Greenhouse gas emissions reductions through transportation efficiency.

Part D—Transportation Emissions

Sec. 841. Greenhouse gas emissions reductions through transportation efficiency.

Sec. 223. SmartWay transportation efficiency program.

Sec. 822. SmartWay transportation efficiency program.

Sec. 224. State vehicle fleets.

Subtitle D—Industrial Energy Efficiency Programs

Sec. 241. Industrial plant energy efficiency standards.

Sec. 242. Electric and thermal waste energy recovery award program.

Sec. 243. Clarifying election of waste heat recovery financial incentives.

Sec. 244. Motor market assessment and commercial awareness program.

Sec. 245. Motor efficiency rebate program.

Sec. 347. Motor efficiency rebate program.

Sec. 246. Clean energy manufacturing revolving loan fund program.

Sec. 27. Clean energy manufacturing revolving loan fund program.

Sec. 247. Clean energy and efficiency manufacturing partnerships.

Sec. 248. Technical amendments.

Subtitle E—Improvements in energy savings performance contracting

Sec. 251. Energy savings performance contracts.

Subtitle F—Public Institutions

Sec. 261. Public institutions.

Sec. 262. Community energy efficiency flexibility.

Sec. 263. Small community joint participation.

Sec. 264. Low income community energy efficiency program.

Sec. 265. Consumer behavior research.

Subtitle G—Miscellaneous

Sec. 271. Energy efficient information and communications technologies.

Sec. 543. Energy efficient information and communications technologies.

Sec. 272. National energy efficiency goals.

Sec. 273. Affiliated island energy independence team.

Sec. 274. Product carbon disclosure program.

Sec. 275. Industrial energy efficiency education and training initiative.

Sec. 276. Sense of Congress.

Subtitle H—Green Resources for Energy Efficient Neighborhoods

Sec. 281. Short title.

Sec. 282. Definitions.

Sec. 283. Implementation of energy efficiency participation incentives for HUD programs.

Sec. 284. Basic HUD energy efficiency standards and standards for additional credit.

Sec. 285. Energy efficiency and conservation demonstration program for multifamily housing projects assisted with project-based rental assistance.

Sec. 286. Additional credit for Fannie Mae and Freddie Mac housing goals for energy-efficient and location-efficient mortgages.

Sec. 287. Duty to serve underserved markets for energy-efficient and location-efficient mortgages.

Sec. 288. Consideration of energy efficiency under FHA mortgage insurance programs and Native American and Native Hawaiian loan guarantee programs.

Sec. 543. Consideration of energy efficiency.

Sec. 289. Energy-efficient mortgages and location-efficient mortgages education and outreach campaign.

Sec. 290. Collection of information on energy-efficient and location-efficient mortgages through Home Mortgage Disclosure Act.

Sec. 291. Ensuring availability of homeowners insurance for homes not connected to electricity grid.

Sec. 292. Mortgage incentives for energy-efficient multifamily housing.

Sec. 293. Energy-efficient certifications for manufactured housing with mortgages.

Sec. 294. Assisted housing energy loan pilot program.

Sec. 295. Making it green.

Sec. 296. Residential energy efficiency block grant program.

Sec. 123. Residential energy efficiency block grant program.

Sec. 297. Including sustainable development and transportation strategies in comprehensive housing affordability strategies.

Sec. 298. Grant program to increase sustainable low-income community development capacity.

Sec. 299. HOPE VI green developments requirement.

Sec. 299A. Consideration of energy efficiency improvements in appraisals.

Sec. 299B. Housing Assistance Council.

Sec. 299C. Rural housing and economic development assistance.

Sec. 299D. Loans to States and Indian tribes to carry out renewable energy sources activities.

Sec. 299E. Green banking centers.

Sec. 299F. GAO reports on availability of affordable mortgages.

Sec. 299G. Public housing energy cost report.

Sec. 299H. Secondary market for residential renewable energy lease instruments.

Sec. 299I. Green guarantees.

Title III—Reducing Global Warming Pollution

Sec. 301. Short title.

Subtitle A—Reducing Global Warming Pollution

Sec. 311. Reducing global warming pollution.

Title VII—Global Warming Pollution Reduction Program

Part A—Global Warming Pollution Reduction Goals and Targets

Sec. 701. Findings and purpose.

Sec. 702. Economy-wide reduction goals.

Sec. 703. Reduction targets for specified sources.

Sec. 704. Supplemental pollution reductions.

Sec. 705. Review and program recommendations.

Sec. 706. National Academy review.

Sec. 707. Presidential response and recommendations.

Part B—Designation and registration of greenhouse gases

Sec. 711. Designation of greenhouse gases.

Sec. 712. Carbon dioxide equivalent value of greenhouse gases.

Sec. 713. Greenhouse gas registry.

Part C—Program rules

Sec. 721. Emission allowances.

Sec. 722. Prohibition of excess emissions.

Sec. 723. Penalty for noncompliance.

Sec. 724. Trading.

Sec. 725. Banking and borrowing.

Sec. 726. Strategic reserve.

Sec. 727. Permits.

Sec. 728. International emission allowances.

Part D—Offsets

Sec. 731. Offsets Integrity Advisory Board.

Sec. 732. Establishment of offsets program.

Sec. 733. Eligible project types.

Sec. 734. Requirements for offset projects.

Sec. 735. Approval of offset projects.

Sec. 736. Verification of offset projects.

Sec. 737. Issuance of offset credits.

Sec. 738. Audits.

Sec. 739. Program review and revision.

Sec. 740. Early offset supply.

Sec. 741. Environmental considerations.

Sec. 742. Trading.

Sec. 743. International offset credits.

Part E—Supplemental Emissions Reductions from Reduced Deforestation

Sec. 751. Definitions.

Sec. 752. Findings.

Sec. 753. Supplemental emissions reductions through reduced deforestation.

Sec. 754. Requirements for international deforestation reduction program.

Sec. 755. Reports and reviews.

Sec. 756. Legal effect of part.

Sec. 312. Definitions.

Sec. 700. Definitions.

Subtitle B—Disposition of allowances

Sec. 321. Disposition of allowances for global warming pollution reduction program.

Part H—Disposition of allowances

Sec. 781. Allocation of allowances for supplemental reductions.

Sec. 782. Allocation of emission allowances.

Sec. 783. Electricity consumers.

Sec. 784. Natural gas consumers.

Sec. 785. Home heating oil, propane, and kerosene consumers.

Sec. 787. Allocations to refineries.

Sec. 788. Supplemental agriculture and renewable energy incentives programs.

Sec. 789. Climate change consumer refunds.

Sec. 790. Exchange for State-issued allowances.

Sec. 791. Auction procedures.

Sec. 792. Auctioning allowances for other entities.

Sec. 793. Establishment of funds.

Sec. 794. Oversight of allocations.

Sec. 795. Exchange for early action offset credits.

Subtitle C—Additional greenhouse gas standards

Sec. 331. Greenhouse gas standards.

Title VIII—Additional Greenhouse Gas Standards

Sec. 801. Definitions.

Part A—Stationary Source Standards

Sec. 811. Standards of performance.

Part C—Exemptions From Other Programs

Sec. 831. Criteria pollutants.

Sec. 832. International air pollution.

Sec. 833. Hazardous air pollutants.

Sec. 834. New source review.

Sec. 835. Title V permits.

Sec. 332. HFC Regulation.

Sec. 619. Hydrofluorocarbons (HFCs).

Sec. 333. Black carbon.

Part E—Black Carbon

Sec. 851. Black carbon.

Sec. 334. States.

Sec. 335. State programs.

Part F—Miscellaneous

Sec. 861. State programs.

Sec. 862. Grants for support of air pollution control programs.

Sec. 336. Enforcement.

Sec. 337. Conforming amendments.

Sec. 338. Davis-Bacon compliance.

Sec. 339. National strategy for domestic biological carbon sequestration.

Sec. 340. Reducing acid rain and mercury pollution.

Subtitle D—Carbon Market Assurance

Sec. 341. Carbon market assurance.

Part IV—Carbon Market Assurance

Sec. 401. Oversight and assurance of carbon markets.

Sec. 402. Applicability of Part III provisions.

Sec. 1041. Fraud and false statements in connection with regulated allowances.

Sec. 342. Carbon derivative markets.

Subtitle E—Additional Market Assurance

Sec. 351. Regulation of certain transactions in derivatives involving energy commodities.

Sec. 352. No effect on authority of the Federal Energy Regulatory Commission.

Sec. 353. Inspector General of the Commodity Futures Trading Commission.

Sec. 354. Settlement and clearing through registered derivatives clearing organizations.

Sec. 355. Limitation on eligibility to purchase a credit default swap.

Sec. 356. Transaction fees.

Sec. 357. No effect on antitrust law or authority of the Federal Trade Commission.

Sec. 358. Effect of derivatives regulatory reform legislation.

Sec. 359. Cease-and-desist authority.

Sec. 360. Presidential review of regulations.

Title IV—Transitioning to a Clean Energy Economy

Subtitle A—Ensuring real reductions in industrial emissions

Sec. 401. Ensuring real reductions in industrial emissions.

Part F—Ensuring real reductions in industrial emissions

Sec. 761. Purposes.

Sec. 762. Definitions.

Subpart 1—Emission allowance rebate program

Sec. 763. Eligible industrial sectors.

Sec. 764. Distribution of emission allowance rebates.

Subpart 2—Promoting international reductions in industrial emissions

Sec. 765. International negotiations.

Sec. 766. United States negotiating objectives with respect to multilateral environmental negotiations.

Sec. 767. Presidential reports and determinations.

Sec. 768. International reserve allowance program.

Sec. 769. Iron and steel sector.

Subtitle B—Green Jobs and Worker Transition

Part 1—Green Jobs

Sec. 421. Clean energy curriculum development grants.

Sec. 422. Increased funding for energy worker training program.

Sec. 423. Development of Information and Resources clearinghouse for vocational education and job training in renewable energy sectors.

Sec. 424. Monitoring program effectiveness.

Sec. 424A. Green construction careers demonstration project.

Part 2—Climate Change Worker Adjustment Assistance

Sec. 425. Petitions, eligibility requirements, and determinations.

Sec. 426. Program benefits.

Sec. 427. General provisions.

Subtitle C—Consumer assistance

Sec. 431. Energy refund program.

Title XXII—Energy refund program

Sec. 2201. Energy refund program.

Sec. 432. Modification of earned income credit amount for individuals with no qualifying children.

Sec. 433. Protection of Social Security and Medicare trust funds.

Subtitle D—Exporting Clean Technology

Sec. 441. Findings and purposes.

Sec. 442. Definitions.

Sec. 443. Governance.

Sec. 444. Determination of eligible countries.

Sec. 445. Qualifying activities.

Sec. 446. Assistance.

Subtitle E—Adapting to Climate Change

Part 1—Domestic Adaptation

Subpart A—National Climate Change Adaptation Program

Sec. 451. Global change research and data management.

Sec. 452. National Climate Service.

Sec. 453. State programs to build resilience to climate change impacts.

Subpart B—Public Health and Climate Change

Sec. 461. Sense of Congress on public health and climate change.

Sec. 462. Relationship to other laws.

Sec. 463. National strategic action plan.

Sec. 464. Advisory board.

Sec. 465. Reports.

Sec. 466. Definitions.

Sec. 467. Climate Change Health Protection and Promotion Fund.

Subpart C—Natural resource adaptation

Sec. 471. Purposes.

Sec. 472. Natural resources climate change adaptation policy.

Sec. 473. Definitions.

Sec. 474. Council on Environmental Quality.

Sec. 475. Natural Resources Climate Change Adaptation Panel.

Sec. 476. Natural Resources Climate Change Adaptation Strategy.

Sec. 477. Natural resources adaptation science and information.

Sec. 478. Federal natural resource agency adaptation plans.

Sec. 479. State natural resources adaptation plans.

Sec. 480. Natural Resources Climate Change Adaptation Fund.

Sec. 481. National Wildlife Habitat and Corridors Information Program.

Sec. 482. Additional provisions regarding Indian tribes.

Part 2—International Climate Change Adaptation Program

Sec. 491. Findings and purposes.

Sec. 492. Definitions.

Sec. 493. International Climate Change Adaptation Program.

Sec. 494. Distribution of allowances.

Sec. 495. Bilateral assistance.

Title V—Agricultural and Forestry Related Offsets

Subtitle A—Offset Credit Program From Domestic Agricultural and Forestry Sources

Sec. 501. Definitions.

Sec. 502. Establishment of offset credit program from domestic agricultural and forestry sources.

Sec. 503. List of eligible domestic agricultural and forestry offset practice types.

Sec. 504. Requirements for domestic agricultural and forestry practices.

Sec. 505. Project plan submission and approval.

Sec. 506. Verification of offset practices.

Sec. 507. Certification of offset credits.

Sec. 508. Ownership and transfer of offset credits.

Sec. 509. Program review and revision.

Sec. 510. Environmental considerations.

Sec. 511. Audits.

Subtitle B—USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee

Sec. 531. Establishment of USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee.

Subtitle C—Miscellaneous

Sec. 551. International indirect land use changes.

Sec. 552. Biomass-based diesel.

Sec. 553. Modification of definition of renewable biomass.

Definitions

For purposes of this Act: (1)

Administrator

The term Administrator means the Administrator of the Environmental Protection Agency. (2)

State

The term State has the meaning given that term in section 302 of the Clean Air Act.

International participation

The Administrator, in consultation with the Department of State and the United States Trade Representative, shall annually prepare and certify a report to the Congress regarding whether China and India have adopted greenhouse gas emissions standards at least as strict as those standards required under this Act. If the Administrator determines that China and India have not adopted greenhouse gas emissions standards at least as stringent as those set forth in this Act, the Administrator shall notify each Member of Congress of his determination, and shall release his determination to the media.

<enum>I</enum><header>Clean Energy</header> <subtitle id="H51AF97481E4846BEAC3AC1C89F78135F"><enum>A</enum><header>Combined Efficiency and Renewable Electricity Standard</header> <section id="HA2E29097D0CA43CD980425E5F76DB316"><enum>101.</enum><header>Combined efficiency and renewable electricity standard</header> <subsection id="HB87D5D0569124BB5AA7D6B66CC48A156"><enum>(a)</enum><header>In general</header><text>Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HB3C13D5DC50E4DF8A6C13D2F6374AEFC" style="OLC"> <section id="H5A13D8BE328C4BFC9063802F28CAF3FF"><enum>610.</enum><header>Combined efficiency and renewable electricity standard</header> <subsection id="HAF51199CA37D4F268B919B870D08C19A"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="HC23720E0B397473589649130C069E32A"><enum>(1)</enum><header>CHP savings</header><text>The term <quote>CHP savings</quote> means—</text> <subparagraph id="H29B84582181A47B287BA3D074290021D"><enum>(A)</enum><text>CHP system savings from a combined heat and power system that commences operation after the date of enactment of this section; and</text> </subparagraph><subparagraph id="H26273E89F9C54534A2A915498FE3E82C"><enum>(B)</enum><text>the increase in CHP system savings from, at any time after the date of the enactment of this section, upgrading, replacing, expanding, or increasing the utilization of a combined heat and power system that commenced operation on or before the date of enactment of this section.</text> </subparagraph></paragraph><paragraph id="HB0A1ADB6FAC548D593B2AE7BF29398B1"><enum>(2)</enum><header>CHP system savings</header><text>The term <quote>CHP system savings</quote> means the increment of electric output of a combined heat and power system that is attributable to the higher efficiency of the combined system (as compared to the efficiency of separate production of the electric and thermal outputs).</text> </paragraph><paragraph id="H7C7E57E56DB641D1ADEF2530672CD874"><enum>(3)</enum><header>Combined heat and power system</header><text>The term <quote>combined heat and power system</quote> means a system that uses the same energy source both for the generation of electrical or mechanical power and the production of steam or another form of useful thermal energy, provided that—</text> <subparagraph id="HF2D04CACC5BB4CA8A3575F5F492588BC"><enum>(A)</enum><text>the system meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; and</text> </subparagraph><subparagraph id="H9978469C1FCA4C77B178F2E996C62185"><enum>(B)</enum><text>the net sales of electricity by the facility to customers not consuming the thermal output from that facility will not exceed 50 percent of total annual electric generation by the facility.</text> </subparagraph></paragraph><paragraph id="HF4388D10AE804678AEADC832FCE21351"><enum>(4)</enum><header>Customer facility savings</header><text>The term <quote>customer facility savings</quote> means a reduction in end-use electricity consumption (including recycled energy savings) at a facility of an end-use consumer of electricity served by a retail electric supplier, as compared to—</text> <subparagraph id="HE0FA2FBD11E6469CB42D7D18DF9B6DC4"><enum>(A)</enum><text>in the case of a new facility, consumption at a reference facility of average efficiency;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H5D4FBD722667415795BB86625311E0D7"><enum>(B)</enum><text>in the case of an existing facility, consumption at such facility during a base period, except as provided in subparagraphs (C) and (D);</text> </subparagraph><subparagraph id="HEF5FA9F156404613818F1B0A397C2060"><enum>(C)</enum><text>in the case of new equipment that replaces existing equipment with remaining useful life, the projected consumption of the existing equipment for the remaining useful life of such equipment, and thereafter, consumption of new equipment of average efficiency of the same equipment type; and</text> </subparagraph><subparagraph id="H3CCA8332C1CE4EC185F5B4F75318FC09"><enum>(D)</enum><text>in the case of new equipment that replaces existing equipment at the end of the useful life of the existing equipment, consumption by new equipment of average efficiency of the same equipment type.</text> </subparagraph></paragraph><paragraph id="H3BFD417BECB540FD85851533377086E3"><enum>(5)</enum><header>Distributed renewable generation facility</header><text>The term <quote>distributed renewable generation facility</quote> means a facility that—</text> <subparagraph id="HC0F26325F97941B4AD1770EA3697FEFC"><enum>(A)</enum><text>generates renewable electricity;</text> </subparagraph><subparagraph id="H80D2BCB0D7F84AA7AE8AEC135124B9A6"><enum>(B)</enum><text>primarily serves 1 or more electricity consumers at or near the facility site; and</text> </subparagraph><subparagraph id="HD472EB313E5E4380A6604E4578C007BC"><enum>(C)</enum><text display-inline="yes-display-inline">is no greater than—</text> <clause id="H2BD71BCEA5B14A13B1ACFF8D6C5F3784"><enum>(i)</enum><text>2 megawatts in capacity; or</text> </clause><clause id="H71EF7C94BBB14157A0CBAC514A0FFFB8"><enum>(ii)</enum><text>4 megawatts in capacity, in the case of a facility that is placed in service after the date of enactment of this section and generates electricity from a renewable energy resource other than by means of combustion.</text> </clause></subparagraph></paragraph><paragraph id="H6F34BBD424A644A596E591C2453AF20A"><enum>(6)</enum><header>Electricity savings</header><text>The term <quote>electricity savings</quote> means reductions in electricity consumption, relative to business-as-usual projections, achieved through measures implemented after the date of enactment of this section, limited to—</text> <subparagraph id="HC8AE1280FFE849F3ADAA74AEBEE5454C"><enum>(A)</enum><text>customer facility savings of electricity, adjusted to reflect any associated increase in fuel consumption at the facility;</text> </subparagraph><subparagraph id="H2A121C44AE974245BCF34BF6F8521B68"><enum>(B)</enum><text>reductions in distribution system losses of electricity achieved by a retail electricity distributor, as compared to losses attributable to new or replacement distribution system equipment of average efficiency;</text> </subparagraph><subparagraph id="H0F3AFA61713548F4BC20B3B75F5F540F"><enum>(C)</enum><text>CHP savings; and</text> </subparagraph><subparagraph id="H811698B938404E4CB30B0E569A906124"><enum>(D)</enum><text>fuel cell savings.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HA6DB7A91EF30400CA8483C7EE9156B9C"><enum>(7)</enum><header>Central procurement State</header><text display-inline="yes-display-inline">The term ‘central procurement State’ means a State that, as of January 1, 2009, had adopted and implemented a legally enforceable mandate that, in lieu of requiring utilities to submit credits or certificates issued based on generation of electricity from (or to purchase or generate electricity from) resources defined by the State as renewable, requires retail electric suppliers to collect payments from electricity ratepayers within the State that are used for central procurement, by a State agency or a public benefit corporation established pursuant to State law, of credits or certificates issued based on generation of electricity from resources defined by the State as renewable.</text> </paragraph><paragraph id="H087B73EFE0D44397834A95DB0035586F"><enum>(8)</enum><header>Federal renewable electricity credit</header><text>The term <quote>Federal renewable electricity credit</quote> means a credit, representing one megawatt hour of renewable electricity, issued pursuant to subsection (e).</text> </paragraph><paragraph id="HAC81EA28FE0F415D920832475DCAA4E1"><enum>(9)</enum><header>Fuel cell</header><text>The term <quote>fuel cell</quote> means a device that directly converts the chemical energy of a fuel and an oxidant into electricity by electrochemical processes occurring at separate electrodes in the device.</text> </paragraph><paragraph id="H0A0BE803E3DE4898AFB42CF0BA00F9C4"><enum>(10)</enum><header>Fuel cell savings</header><text>The term ‘fuel cell savings’ means the electricity saved by a fuel cell that is installed after the date of enactment of this section, or by upgrading a fuel cell that commenced operation on or before the date of enactment of this section, as a result of the greater efficiency with which the fuel cell transforms fuel into electricity as compared with sources of electricity delivered through the grid, provided that—</text> <subparagraph id="HB8DB2304D1FF42999A990C709676239D"><enum>(A)</enum><text>the fuel cell meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; and</text> </subparagraph><subparagraph id="H3243DE7CC5A94B03AE2EF2D94006CB46"><enum>(B)</enum><text>the net sales of electricity from the fuel cell to customers not consuming the thermal output from the fuel cell, if any, do not exceed 50 percent of the total annual electricity generation by the fuel cell.</text> </subparagraph></paragraph><paragraph id="HD127DF50DF844DF9ACE78B11688A5D1C"><enum>(11)</enum><header>Other qualifying energy resource</header><text>The term <quote>other qualifying energy resource</quote> means any of the following:</text> <subparagraph id="HDF1B5473FC794CA58B032EBA233DDA37"><enum>(A)</enum><text>Landfill gas.</text> </subparagraph><subparagraph id="HBBC71BAE1A6747519D97C0AC2E38C0A7"><enum>(B)</enum><text>Wastewater treatment gas.</text> </subparagraph><subparagraph id="H1DB07FC3F036402CBB366D317FCB5ADD"><enum>(C)</enum><text>Coal mine methane used to generate electricity at or near the mine mouth.</text> </subparagraph><subparagraph id="HB992C4B37C51494687B79ADCA0900C23"><enum>(D)</enum><text>Qualified waste-to-energy.</text> </subparagraph></paragraph><paragraph id="H08A37D9ACB944039B6EE5B85F8E34051"><enum>(12)</enum><header>Qualified hydropower</header><text>The term <quote>qualified hydropower</quote> means—</text> <subparagraph id="H69C7724ED4A84BF39567DF90EA978793"><enum>(A)</enum><text>energy produced from increased efficiency achieved, or additions of capacity made, on or after January 1, 1988, at a hydroelectric facility that was placed in service before that date and does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions; or</text> </subparagraph><subparagraph id="HB60DF146AD064ACEB3B7F3873F434F90"><enum>(B)</enum><text>energy produced from generating capacity added to a dam on or after January 1, 1988, provided that the Commission certifies that—</text> <clause id="H60FA8BD35B3B4A97981D64C09BF83AEE"><enum>(i)</enum><text>the dam was placed in service before the date of the enactment of this section and was operated for flood control, navigation, or water supply purposes and was not producing hydroelectric power prior to the addition of such capacity;</text> </clause><clause id="H3F96AB65BE1943E3A60F86934A2524C1"><enum>(ii)</enum><text>the hydroelectric project installed on the dam is licensed (or is exempt from licensing) by the Commission and is in compliance with the terms and conditions of the license or exemption, and with other applicable legal requirements for the protection of environmental quality, including applicable fish passage requirements; and</text> </clause><clause id="HE0D3E15D19CF4AB3B7DA6DEBB8812491"><enum>(iii)</enum><text>the hydroelectric project installed on the dam is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license or exemption requirements that require changes in water surface elevation for the purpose of improving the environmental quality of the affected waterway.</text> </clause></subparagraph></paragraph><paragraph id="HA39B97B3FB8D4D0780D41596F354983A"><enum>(13)</enum><header>Qualified waste-to-energy</header><text>The term <quote>qualified waste-to-energy</quote> means energy from the combustion of municipal solid waste or construction, demolition, or disaster debris, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, provided that—</text> <subparagraph id="HD4237008EA014EB7A6C29B9689E59F4E"><enum>(A)</enum><text>such term shall include only the energy derived from the non-fossil biogenic portion of such waste or debris;</text> </subparagraph><subparagraph id="H5716B22FEC46413AA175E2629B77BB2F"><enum>(B)</enum><text>the Commission determines, with the concurrence of the Administrator of the Environmental Protection Agency, that the total lifecycle greenhouse gas emissions attributable to the generation of electricity from such waste or debris are lower than those attributable to the likely alternative method of disposing of such waste or debris; and</text> </subparagraph><subparagraph id="H3AE45394100C4110B82C478CACB49055"><enum>(C)</enum><text>the owner or operator of the facility generating electricity from such energy provides to the Commission, on an annual basis—</text> <clause id="H94F458760EFC474880CEC23BCF6C034F"><enum>(i)</enum><text>a certification that the facility is in compliance with all applicable State, tribal, and Federal environmental permits;</text> </clause><clause id="H343CF25C823C48D1963691C7D58D98B0"><enum>(ii)</enum><text>in the case of a facility that commenced operation before the date of enactment of this section, a certification that the facility meets emissions standards promulgated under section 112 or 129 of the Clean Air Act (42 U.S.C. 7412 or 7429) that apply as of the date of enactment of this section to new facilities within the relevant source category; and</text> </clause><clause id="HB35EDA5EAC744CDC8139219FA1C5C457"><enum>(iii)</enum><text>in the case of the combustion, pyrolization, or gasification of municipal solid waste, a certification that each local government unit from which such waste originates operates, participates in the operation of, contracts for, or otherwise provides for, recycling services for its residents.</text> </clause></subparagraph></paragraph><paragraph id="HA4FE32BF4F7E4A9CB3D4FBADE9763528"><enum>(14)</enum><header>Recycled energy savings</header><text>The term <quote>recycled energy savings</quote> means a reduction in electricity consumption that results from a modification of an industrial or commercial system that commenced operation before the date of enactment of this section, in order to recapture electrical, mechanical, or thermal energy that would otherwise be wasted.</text> </paragraph><paragraph display-inline="no-display-inline" id="HEBB68D2BF16D4D5FB473DBC66C5854AC"><enum>(15)</enum><header>Renewable biomass</header><text display-inline="yes-display-inline">The term <quote>renewable biomass</quote> means any of the following:</text> <subparagraph id="HE8E51C4462CE4627856BF4B3F83C846A"><enum>(A)</enum><text>Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are—</text> <clause id="HD0C6690799824EC5A9E3C666E9AD874B"><enum>(i)</enum><text display-inline="yes-display-inline">not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth stands, late-successional stands (except for dead, severely damaged, or badly infested trees), components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;</text> </clause><clause id="H998FEE1F9D6B48B295A86E34FA5739C0"><enum>(ii)</enum><text>harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and</text> </clause><clause id="HCDBADAD3D5A14179BB54AD47F7E5899E"><enum>(iii)</enum><text>harvested in accordance with Federal and State law, and applicable land management plans.</text> </clause></subparagraph><subparagraph id="H0E058C19F4A1490197E8CFA355B83751"><enum>(B)</enum><text>Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including—</text> <clause id="H6B8D67FA2DDF41D7881D69F0B27016AD"><enum>(i)</enum><text>renewable plant material, including—</text> <subclause id="HE7908040A4A64B0899C8F7754C0E83E5"><enum>(I)</enum><text>feed grains;</text> </subclause><subclause id="H2E936BF6B2634A259ED6EBBAF49B4EA9"><enum>(II)</enum><text>other agricultural commodities;</text> </subclause><subclause id="HD9FD50EA08664C0CA2ABE9DEFE22C3EF"><enum>(III)</enum><text>other plants and trees; and</text> </subclause><subclause id="H00CB4C4B407C49A5BE6BB9E18A0C5252"><enum>(IV)</enum><text>algae; and</text> </subclause></clause><clause id="HFBE78147834743229341F77142BF11CB"><enum>(ii)</enum><text>waste material, including—</text> <subclause id="H9F524692FEA646379ABF2FA7D0575C9C"><enum>(I)</enum><text>crop residue;</text> </subclause><subclause id="HC17BAA0D6495439096E91B44DF97DD12"><enum>(II)</enum><text>other vegetative waste material (including wood waste and wood residues);</text> </subclause><subclause id="HC5B007CBB7DE4A17852EEE4DB2600319"><enum>(III)</enum><text>animal waste and byproducts (including fats, oils, greases, and manure);</text> </subclause><subclause id="H1D7C96C9920140D6A59154440C394C3D"><enum>(IV)</enum><text>construction waste; and</text> </subclause><subclause id="HBE20EAC2D68140ACB9E6C933C35EB48A"><enum>(V)</enum><text>food waste and yard waste.</text> </subclause></clause></subparagraph><subparagraph id="HF35357D26AD749C79464EAB32FBE7B22"><enum>(C)</enum><text display-inline="yes-display-inline">Residues and byproducts from wood, pulp, or paper products facilities.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HC253AA319A04441E837EDFECCF23E4EF"><enum>(16)</enum><header>Renewable electricity</header><text>The term <quote>renewable electricity</quote> means electricity generated (including by means of a fuel cell) from a renewable energy resource or other qualifying energy resources.</text> </paragraph><paragraph id="H729A30E787DB490F93063D7AE03898DE"><enum>(17)</enum><header>Renewable energy resource</header><text>The term <quote>renewable energy resource</quote> means each of the following:</text> <subparagraph id="H7671C120F2654B43886B6B3883CA4247"><enum>(A)</enum><text>Wind energy.</text> </subparagraph><subparagraph id="H8794613908AC4211B64295F3750AD9D4"><enum>(B)</enum><text>Solar energy.</text> </subparagraph><subparagraph id="HF6DC3D59F2944E2FB35394E41B897FFC"><enum>(C)</enum><text>Geothermal energy.</text> </subparagraph><subparagraph id="H8E212DBA849441CF825399026ADBC49A"><enum>(D)</enum><text>Renewable biomass.</text> </subparagraph><subparagraph id="HFF3F0A5F476E483A9B6263F15023033A"><enum>(E)</enum><text>Biogas derived exclusively from renewable biomass.</text> </subparagraph><subparagraph id="HF3AFF2FBE4D54E8299082CAB949FF14B"><enum>(F)</enum><text>Biofuels derived exclusively from renewable biomass.</text> </subparagraph><subparagraph id="HBB2A0F426ACB4C0EA3F130C6E2C64491"><enum>(G)</enum><text>Qualified hydropower.</text> </subparagraph><subparagraph id="HD8166CBF4CA54D15AFE88729489A10CF"><enum>(H)</enum><text>Marine and hydrokinetic renewable energy, as that term is defined in section 632 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17211">42 U.S.C. 17211</external-xref>).</text> </subparagraph></paragraph><paragraph id="H83D285233F37451DB49E63E9FD4EDFAB"><enum>(18)</enum><header>Retail electric supplier</header> <subparagraph id="H5BF02E43B216449C9743974107B62AD7"><enum>(A)</enum><header>In general</header><text>The term <quote>retail electric supplier</quote> means, for any given year, an electric utility that sold not less than 4,000,000 megawatt hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year.</text> </subparagraph><subparagraph id="HFE1DBB7BA49A4A32B3A6F3F240DCA5BE"><enum>(B)</enum><header>Inclusions and limitations</header><text>For purposes of determining whether an electric utility qualifies as a retail electric supplier under subparagraph (A)—</text> <clause id="HB58F95E242334AF4B34DEC0A5B2A0EF3"><enum>(i)</enum><text>the sales of any affiliate of an electric utility to electric consumers, other than sales to the affiliate’s lessees or tenants, for purposes other than resale shall be considered to be sales of such electric utility; and</text> </clause><clause id="H116891CD60474CF5BAD439931AB0EE86"><enum>(ii)</enum><text>sales by any electric utility to an affiliate, lessee, or tenant of such electric utility shall not be treated as sales to electric consumers.</text> </clause></subparagraph><subparagraph display-inline="no-display-inline" id="H213CE2BE3C714CC68021DB8E6A967E0B"><enum>(C)</enum><header>Affiliate</header><text>For purposes of this paragraph, the term <quote>affiliate</quote> when used in relation to a person, means another person that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, such person, as determined under regulations promulgated by the Commission.</text> </subparagraph></paragraph><paragraph id="HD3E5A9E53D4C4D8198AFCB9FA14B6CB6"><enum>(19)</enum><header>Retail electric supplier’s base amount</header><text>The term <quote>retail electric supplier’s base amount</quote> means the total amount of electric energy sold by the retail electric supplier, expressed in megawatt hours, to electric customers for purposes other than resale during the relevant calendar year, excluding—</text> <subparagraph id="HC3D64B8B10604F39B40DB13EBAEEFCC9"><enum>(A)</enum><text>electricity generated by a hydroelectric facility that is not qualified hydropower;</text> </subparagraph><subparagraph id="HCFDD3C5FE623451FA1B11632B9F5859F"><enum>(B)</enum><text>electricity generated by a nuclear generating unit placed in service after the date of enactment of this section; and</text> </subparagraph><subparagraph id="H3617DFBACED54C568E600CD61F5CCE5A"><enum>(C)</enum><text>the proportion of electricity generated by a fossil-fueled generating unit that is equal to the proportion of greenhouse gases produced by such unit that are captured and geologically sequestered.</text> </subparagraph></paragraph><paragraph id="HD4A59FA82D2443888B06B4112F9B062F"><enum>(20)</enum><header>Retire and retirement</header><text>The terms <quote>retire</quote> and <quote>retirement</quote> with respect to a Federal renewable electricity credit, means to disqualify such credit for any subsequent use under this section, regardless of whether the use is a sale, transfer, exchange, or submission in satisfaction of a compliance obligation.</text> </paragraph><paragraph id="H8AB380B2483544B49011CD1DFECF3C54"><enum>(21)</enum><header>Third-party efficiency provider</header><text>The term <quote>third-party efficiency provider</quote> means any retailer, building owner, energy service company, financial institution or other commercial, industrial or nonprofit entity that is capable of providing electricity savings in accordance with the requirements of this section.</text> </paragraph><paragraph id="HAE3E36DE9F234E528AB6286FE7B892FC"><enum>(22)</enum><header>Total annual electricity savings</header><text>The term <quote>total annual electricity savings</quote> means electricity savings during a specified calendar year from measures implemented since the date of the enactment of this section, taking into account verified measure lifetimes or verified annual savings attrition rates, as determined in accordance with such regulations as the Commission may promulgate and measured in megawatt hours.</text> </paragraph></subsection><subsection id="H978AAA138A9E489FBF5EB48006B10DB9"><enum>(b)</enum><header>Annual compliance obligation</header><text></text> <paragraph id="HE1B99A02A6574EC58A77EEAD6FA457FF"><enum>(1)</enum><header>In general</header><text>For each of calendar years 2012 through 2039, not later than March 31 of the following calendar year, each retail electric supplier shall submit to the Commission an amount of Federal renewable electricity credits and demonstrated total annual electricity savings that, in the aggregate, is equal to such retail electric supplier’s annual combined target as set forth in subsection (d), except as otherwise provided in subsection (h).</text> </paragraph><paragraph id="H61E0FE9F585D4E3F9793B037D608A192"><enum>(2)</enum><header>Demonstration of savings</header><text>For purposes of this subsection, submission of demonstrated total annual electricity savings means submission of a report that demonstrates, in accordance with the requirements of subsection (f), the total annual electricity savings achieved by the retail electric supplier within the relevant compliance year.</text> </paragraph><paragraph id="H74A00F8F09F74AD29F6801C0D59E6211"><enum>(3)</enum><header>Renewable electricity credits portion</header><text>Except as provided in paragraph (4), each retail electric supplier must submit Federal renewable electricity credits equal to at least three quarters of the retail electric supplier’s annual combined target.</text> </paragraph><paragraph id="HA1AC6EC993A44446B9D4E02961574FA9"><enum>(4)</enum><header>State petition</header> <subparagraph id="H7D5E28DDF2FD4D918862886BED3CC79E"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Upon written request from the Governor of any State (including, for purposes of this paragraph, the Mayor of the District of Columbia), the Commission shall increase, to not more than two fifths, the proportion of the annual combined targets of retail electric suppliers located within such State that may be met through submission of demonstrated total annual electricity savings, provided that such increase shall be effective only with regard to the portion of a retail electric supplier’s annual combined target that is attributable to electricity sales within such State.</text> </subparagraph><subparagraph id="H3678421CD0E3477A91E9F08A097C7E73"><enum>(B)</enum><header>Contents</header><text>A Governor’s request under this paragraph shall include an explanation of the Governor’s rationale for determining, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, to make such request. The request shall specify the maximum proportion of annual combined targets (not more than two fifths) that can be met through demonstrated total annual electricity savings, and the period for which such proportion shall be effective.</text> </subparagraph><subparagraph id="HA5F21F9ED89E46DE816272626F895FEA"><enum>(C)</enum><header>Revision</header><text>The Governor of any State may, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, submit a written request for revocation or revision of a previous request submitted under this paragraph. The Commission shall grant such request, provided that—</text> <clause id="H334654DFCEC440719E93E76CD405B711"><enum>(i)</enum><text>any revocation or revision shall not apply to the combined annual target for any year that is any earlier than 2 calendar years after the calendar year in which such request is submitted, so as to provide retail electric suppliers with adequate notice of such change; and</text> </clause><clause id="H1E193C486F664717A83E06589F2197A8"><enum>(ii)</enum><text>any revision shall meet the requirements of subparagraph (A).</text> </clause></subparagraph></paragraph></subsection><subsection id="H924151CC38B5478FB4703E803B44D64C"><enum>(c)</enum><header>Establishment of program</header><text>Not later than 1 year after the date of enactment of this section, the Commission shall promulgate regulations to implement and enforce the requirements of this section. In promulgating such regulations, the Commission shall, to the extent practicable—</text> <paragraph id="H0FE6282E1A5748B3A783C7BC4D4E7FC8"><enum>(1)</enum><text>preserve the integrity, and incorporate best practices, of existing State and tribal renewable electricity and energy efficiency programs;</text> </paragraph><paragraph id="H591D6278B39A407F8A9C65CEFDA53370"><enum>(2)</enum><text>rely upon existing and emerging State, tribal, or regional tracking systems that issue and track non-Federal renewable electricity credits; and</text> </paragraph><paragraph id="HC716AFCB7B9E4FF1A33445E58AED25E2"><enum>(3)</enum><text>cooperate with the States and Indian tribes to facilitate coordination between State, tribal, and Federal renewable electricity and energy efficiency programs and to minimize administrative burdens and costs to retail electric suppliers.</text> </paragraph></subsection><subsection id="H05E907FA79194D0E91CA98FFC0AC447F"><enum>(d)</enum><header>Annual compliance requirement</header> <paragraph id="H7CC60C90BB49475D820AAB35C03F968D"><enum>(1)</enum><header>Annual combined targets</header><text>For each of calendar years 2012 through 2039, a retail electric supplier’s annual combined target shall be the product of—</text> <subparagraph id="H24FB943764D44F818B2D55221E122DE0"><enum>(A)</enum><text>the required annual percentage for such year, as set forth in paragraph (2); and</text> </subparagraph><subparagraph id="H0BE33097233B49F3B981AEFCD6AC25B8"><enum>(B)</enum><text>the retail electric supplier’s base amount for such year.</text> </subparagraph></paragraph><paragraph id="H7C87F8511D3C4846A1BFBA8216072888"><enum>(2)</enum><header>Required annual percentage</header><text>For each of calendar years 2012 through 2039, the required annual percentage shall be as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Entry: 2 text, bold hds" table-type=""> <tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt" colname="column1" colwidth="230pts" min-data-value="190" rowsep="0"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="0" colwidth="95pts" min-data-value="95" rowsep="0"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>Calendar year</bold></entry><entry align="left" colname="column2" morerows="0" namest="column2"><bold>Required annual percentage</bold></entry> </row> </thead> <tbody> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2012</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">6.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">6.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">9.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">9.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">13.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2017</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">13.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2018</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">16.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2019</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">16.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2020</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">20.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2021 through 2039</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">20.0</entry> </row> </tbody> </tgroup> </table> </paragraph></subsection><subsection id="HAD3E7439B81D46A3B25DBD2498AB76A6"><enum>(e)</enum><header>Federal renewable electricity credits</header> <paragraph id="H69D01F85C7F04EFE95C28292858E63D4"><enum>(1)</enum><header>In general</header><text>The regulations promulgated under this section shall include provisions governing the issuance, tracking, and verification of Federal renewable electricity credits. Except as provided in paragraphs (2), (3), and (4) of this subsection, the Commission shall issue to each generator of renewable electricity, 1 Federal renewable electricity credit for each megawatt hour of renewable electricity generated by such generator after December 31, 2011. The Commission shall assign a unique serial number to each Federal renewable electricity credit.</text> </paragraph><paragraph id="H17B795DDD12043C593E44C4B428D9A7D"><enum>(2)</enum><header>Generation from certain State renewable electricity programs</header><text display-inline="yes-display-inline">(A) Except as provided in subparagraph (B), where renewable electricity is generated with the support of payments from a retail electric supplier pursuant to a State renewable electricity program (whether through State alternative compliance payments or through payments to a State renewable electricity procurement fund or entity), the Commission shall issue Federal renewable electricity credits to such retail electric supplier for the proportion of the relevant renewable electricity generation that is attributable to the retail electric supplier’s payments, as determined pursuant to regulations issued by the Commission. For any remaining portion of the relevant renewable electricity generation, the Commission shall issue Federal renewable electricity credits to the generator, as provided in paragraph (1), except that in no event shall more than 1 Federal renewable electricity credit be issued for the same megawatt hour of electricity. In determining how Federal renewable electricity credits will be apportioned among retail electric suppliers and generators in such circumstances, the Commission shall consider information and guidance furnished by the relevant State or States.</text> <subparagraph id="H0B506589817B487FB187C3B6220FFEDE" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">In the case of a central procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection (b), the Commission shall issue directly to the State Federal renewable electricity credits for any renewable electricity for which the State, pursuant to a mandate described in subsection (a)(7), has centrally procured credits or certificates issued based on generation of such renewable electricity.</text> </subparagraph></paragraph><paragraph id="HDC623A005C2D4A4697FADC89EF691C13"><enum>(3)</enum><header>Certain power sales contracts</header><text display-inline="yes-display-inline">Except as otherwise provided in paragraph (2), when a generator has sold renewable electricity to a retail electric supplier under a contract for power from a facility placed in service before the date of enactment of this section, and the contract does not provide for the determination of ownership of the Federal renewable electricity credits associated with such generation, the Commission shall issue such Federal renewable electricity credits to the retail electric supplier for the duration of the contract.</text> </paragraph><paragraph id="HCA62131D74BE4963A6453AE027DD47D5"><enum>(4)</enum><header>Credit multiplier for distributed renewable generation</header> <subparagraph id="HC4E6A0748348461A9EFDB4AA17934C38"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the Commission shall issue 3 Federal renewable electricity credits for each megawatt hour of renewable electricity generated by a distributed renewable generation facility.</text> </subparagraph><subparagraph id="H7B592423A4494F52A5D081448A05D089"><enum>(B)</enum><header>Adjustment</header><text>Except as provided in subparagraph (C), not later than January 1, 2014, and not less frequently than every 4 years thereafter, the Commission shall review the effect of this paragraph and shall, as necessary, reduce the number of Federal renewable electricity credits per megawatt hour issued under this paragraph for any given energy source or technology, but not below 1, to ensure that such number is no higher than the Commission determines is necessary to make distributed renewable generation facilities using such source or technology cost competitive with other sources of renewable electricity generation.</text> </subparagraph><subparagraph id="H7A8076EBE1D04BFCB126BE0F77346FF4"><enum>(C)</enum><header>Facilities placed in service after enactment</header><text>For any distributed renewable generation facility placed in service after the date of enactment of this section, subparagraph (B) shall not apply for the first 10 years after the date on which the facility is placed in service. For each year during such 10-year period, the Commission shall issue to the facility the same number of Federal renewable electricity credits per megawatt hour as are issued to that facility in the year in which such facility is placed in service. After such 10-year period, the Commission shall issue Federal renewable electricity credits to the facility in accordance with the current multiplier as determined pursuant to subparagraph (B).</text> </subparagraph></paragraph><paragraph id="H4EB0E9AA4AF44CC387A7BBE30805102F"><enum>(5)</enum><header>Credits based on qualified hydropower</header><text>For purposes of this subsection, the number of Federal renewable electricity credits issued for qualified hydropower shall be calculated—</text> <subparagraph id="HA4001532634B4808BB6889049368E576"><enum>(A)</enum><text>based solely on the increase in average annual generation directly resulting from the efficiency improvements or capacity additions described in subsection (a)(13)(A); and</text> </subparagraph><subparagraph id="HACDA323E567C45F791A811BE1459AA38"><enum>(B)</enum><text>using the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility, as certified by the Commission.</text> </subparagraph></paragraph><paragraph id="H06FA45CA8204431AB676026903C82950"><enum>(6)</enum><header>Generation from qualified waste-to-energy</header><text>In the case of electricity generated from the combustion of any municipal solid waste or construction, demolition, or disaster debris that is included in the definition of renewable biomass, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, the Commission shall issue Federal renewable electricity credits only for electricity generated from qualified waste-to-energy.</text> </paragraph><paragraph id="H64B361D0FAC146AC9525D05844311745"><enum>(7)</enum><header>Generation from mixed renewable and nonrenewable resources</header><text display-inline="yes-display-inline">If electricity is generated using both a renewable energy resource or other qualifying energy resource and an energy source that is not a renewable energy resource or other qualifying energy resource (as, for example, in the case of co-firing of renewable biomass and fossil fuel), the Commission shall issue Federal renewable electricity credits based on the proportion of the electricity that is attributable to the renewable energy resource or other qualifying energy resource.</text> </paragraph><paragraph id="H4AF9FC5F61D54EAFB3ADF47C839D1406"><enum>(8)</enum><header>Prohibition against double-counting</header><text>Except as provided in paragraph (4) of this subsection, the Commission shall ensure that no more than 1 Federal renewable electricity credit will be issued for any megawatt hour of renewable electricity and that no Federal renewable electricity credit will be used more than once for compliance with this section.</text> </paragraph><paragraph id="HDF4DC0D607E94CC0A5F3CB7915FA88D3"><enum>(9)</enum><header>Trading</header><text>The lawful holder of a Federal renewable electricity credit may sell, exchange, transfer, submit for compliance in accordance with subsection (b), or submit such credit for retirement by the Commission.</text> </paragraph><paragraph id="H0AD4FCD8CB2643F1B1C23E0CE3C80C7E"><enum>(10)</enum><header>Banking</header><text>A Federal renewable electricity credit may be submitted in satisfaction of the compliance obligation set forth in subsection (b) for the compliance year in which the credit was issued or for any of the 3 immediately subsequent compliance years. The Commission shall retire any Federal renewable electricity credit that has not been retired by April 2 of the calendar year that is 3 years after the calendar year in which the credit was issued.</text> </paragraph><paragraph id="H8F486A955E8A483E87773A19E2C8D0ED"><enum>(11)</enum><header>Retirement</header><text>The Commission shall retire a Federal renewable electricity credit immediately upon submission by the lawful holder of such credit, whether in satisfaction of a compliance obligation under subsection (b) or on some other basis.</text> </paragraph></subsection><subsection id="H8323CEDFABF84A38B6DD6D3E341109C9"><enum>(f)</enum><header>Electricity savings</header> <paragraph id="H66671DD90B544CD8BF3BC6D5B5E69BAF"><enum>(1)</enum><header>Standards for measurement of savings</header><text>As part of the regulations promulgated under this section, the Commission shall prescribe standards and protocols for defining and measuring electricity savings and total annual electricity savings that can be counted towards the compliance obligation set forth in subsection (b). Such protocols and standards shall, at minimum—</text> <subparagraph id="H1E08F242534043A8A58F6672643E9155"><enum>(A)</enum><text>specify the types of energy efficiency and energy conservation measures that can be counted;</text> </subparagraph><subparagraph id="H842A7D38D7404563BD79548006880B2A"><enum>(B)</enum><text>require that energy consumption estimates for customer facilities or portions of facilities in the applicable base and current years be adjusted, as appropriate, to account for changes in weather, level of production, and building area;</text> </subparagraph><subparagraph id="HFEC118655AF642C193215E2FB12A55E4"><enum>(C)</enum><text>account for the useful life of measures;</text> </subparagraph><subparagraph id="H767AE48398974EE795BA100F6FF49293"><enum>(D)</enum><text>include deemed savings values for specific, commonly used measures;</text> </subparagraph><subparagraph id="H4D6CC656E47A44CC83556DA428A9EAFE"><enum>(E)</enum><text>allow for savings from a program to be estimated based on extrapolation from a representative sample of participating customers;</text> </subparagraph><subparagraph id="H86FF234F34824A8D96BA14BBB4753DDA"><enum>(F)</enum><text>include procedures for counting CHP savings, recycled energy savings, and fuel cell savings;</text> </subparagraph><subparagraph id="H9F2F8B0C51D74A128B3BAA9A40136386"><enum>(G)</enum><text>include procedures for documenting measurable and verifiable electricity savings achieved as a result of market transformation efforts;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HDCF979AEF69A44DA9F88CFCDCB195C68"><enum>(H)</enum><text display-inline="yes-display-inline">include procedures for counting electricity savings achieved by solar water heating and solar light pipe technology that has the capability to provide measurable data on the amount of megawatt-hours displaced;</text> </subparagraph><subparagraph id="HC065A922AF544F838CE34C4B0D2C5958"><enum>(I)</enum><text>avoid double-counting of savings used for compliance with this section, including savings that are transferred pursuant to paragraph (3);</text> </subparagraph><subparagraph id="H4E1BC4971D4146D4B7834B0C66F2DCC9"><enum>(J)</enum><text>ensure that, except as provided in subparagraph (L), the retail electric supplier claiming the savings played a significant role in achieving the savings (including through the activities of a designated agent of the supplier or through the purchase of transferred savings);</text> </subparagraph><subparagraph id="H540A7FFFB5DD45AFA0059263D34D675D"><enum>(K)</enum><text>include savings from programs administered by a retail electric supplier (or a retail electricity distributor that is not a retail electric supplier) that are funded by State, Federal, or other sources;</text> </subparagraph><subparagraph id="H2ABC7E07242E4DB3908035F964DCCC4A"><enum>(L)</enum><text>in any State in which the State regulatory authority has designated 1 or more entities to administer electric ratepayer-funded efficiency programs approved by such State regulatory authority, provide that electricity savings achieved through such programs shall be distributed equitably among retail electric suppliers in accordance with the direction of the relevant State regulatory authority; and</text> </subparagraph><subparagraph id="HCB17E65D04C64A559D6F5D663096968A"><enum>(M)</enum><text>exclude savings achieved as a result of compliance with mandatory appliance and equipment efficiency standards or building codes.</text> </subparagraph></paragraph><paragraph id="H61DC88A864CC4882913F0CC97B53A292"><enum>(2)</enum><header>Standards for third-party verification of savings</header><text>The regulations promulgated under this section shall establish procedures and standards requiring third-party verification of all reported electricity savings, including requirements for accreditation of third-party verifiers to ensure that such verifiers are professionally qualified and have no conflicts of interest.</text> </paragraph><paragraph id="HB59DB97451AB40EA9559E461FF91ABAA"><enum>(3)</enum><header>Transfers of savings</header> <subparagraph id="H60F7B65B4C704C99928E8D5E71E4E95F"><enum>(A)</enum><header>Bilateral contracts for savings transfers</header><text>Subject to the limitations of this paragraph, a retail electric supplier may use electricity savings transferred, pursuant to a bilateral contract, from another retail electric supplier, an owner of an electric distribution facility that is not a retail electric supplier, a State, or a third-party efficiency provider to meet the applicable compliance obligation under subsection (b).</text> </subparagraph><subparagraph id="H8E9733711F46495A85D67F4EE42EFB9C"><enum>(B)</enum><header>Requirements</header><text>Electricity savings transferred and used for compliance pursuant to this paragraph shall be—</text> <clause id="H3CEB9B7E5F2D4C3FA6AA07933C8A1745"><enum>(i)</enum><text>measured and verified in accordance with the procedures specified under this subsection;</text> </clause><clause id="H9E21126A50964CEA834BBEF483122D65"><enum>(ii)</enum><text>reported in accordance with paragraph (4) of this subsection; and</text> </clause><clause id="HE4B8B609B22048AFB6D54F9C248D5246"><enum>(iii)</enum><text>achieved within the same State as is served by the retail electric supplier.</text> </clause></subparagraph><subparagraph id="H2ACE9152EE754011BB466372524256C2"><enum>(C)</enum><header>Regulatory approval</header><text>Nothing in this paragraph shall limit or affect the authority of a State regulatory authority to require a retail electric supplier that is regulated by such authority to obtain such authority’s authorization or approval of a contract for transfer of savings under this paragraph.</text> </subparagraph></paragraph><paragraph id="H3F7F08C7F0C348ACBDAFC863402AC722"><enum>(4)</enum><header>Reporting savings</header> <subparagraph id="H089035FCB97540D5A2D58EBBFA242EF8"><enum>(A)</enum><header>Requirements</header><text>The regulations promulgated under this section shall establish requirements governing the submission of reports to demonstrate, in accordance with the protocols and standards for measurement and third-party verification established under this subsection, the total annual electricity savings achieved by a retail electric supplier within the relevant year.</text> </subparagraph><subparagraph id="H6BEA71FA29EE429BA4D11AEF5C7BE597"><enum>(B)</enum><header>Review and approval</header><text>The Commission shall review each report submitted to the Commission by a retail electric supplier and shall exclude any electricity savings that have not been adequately demonstrated in accordance with the requirements of this subsection.</text> </subparagraph></paragraph><paragraph id="HA02497989204444EA8B90A0DEB701C81"><enum>(5)</enum><header>State administration</header> <subparagraph id="H3BCF9814512B40E68332C25BB32DD0A6"><enum>(A)</enum><header>Delegation of authority</header><text>Upon receipt of an application from the Governor of a State (including, for purposes of this subsection, the Mayor of the District of Columbia), the Commission may delegate to the State the authority to review and verify reported electricity savings for purposes of determining demonstrated total annual electricity savings that may be counted towards a retail electric supplier’s compliance obligation under subsection (b). The Commission shall make a substantive determination approving or disapproving a State application under this subparagraph, after notice and comment, within 180 days of receipt of a complete application.</text> </subparagraph><subparagraph id="H40CD00E5C2B24993A0061AEE203DCC83"><enum>(B)</enum><header>Alternative measurement and verification procedures and standards</header><text>As part of an application submitted under subparagraph (A), a State may request to use alternative measurement and verification procedures and standards to those specified in paragraphs (1) and (2), provided the State demonstrates that such alternative procedures and standards provide a level of accuracy of measurement and verification at least equivalent to the Federal procedures and standards promulgated under paragraphs (1) and (2).</text> </subparagraph><subparagraph id="HF0FD11024F3C4207B8992B9CB92B9EC4"><enum>(C)</enum><header>Review of State implementation</header><text>The Commission shall, not less frequently than once every 4 years, review each State’s implementation of delegated authority under this paragraph to ensure conformance with the requirements of this section. The Commission may, at any time, revoke the delegation of authority under this section upon a finding that the State is not implementing its delegated responsibilities in conformity with this paragraph. As a condition of maintaining its delegated authority under this paragraph, the Commission may require a State to submit a revised application under subparagraph (A) if the Commission has—</text> <clause id="H9A5953FD118440349A6A8E34D3330549"><enum>(i)</enum><text>promulgated new or substantially revised measurement and verification procedures and standards under this subsection; or</text> </clause><clause id="H5584F30ECB3B4D068778FA6F9866BFD0"><enum>(ii)</enum><text>otherwise substantially revised the program established under this section.</text> </clause></subparagraph></paragraph></subsection><subsection id="H451B27BE024A490D9B0F666CD80C4BE2"><enum>(g)</enum><header>Alternative compliance payments</header> <paragraph id="H5CD12091EF2E420D9575E1A503BC755D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A retail electric supplier, or a central procurement State that, pursuant to subsection (g), has assumed responsibility for compliance with the requirements of subsection (b), may satisfy the requirements of subsection (b) in whole or in part by submitting in accordance with this subsection, in lieu of each Federal renewable electricity credit or megawatt hour of demonstrated total annual electricity savings that would otherwise be due, a payment equal to $25, adjusted for inflation on January 1 of each year following calendar year 2009, in accordance with such regulations as the Commission may promulgate.</text> </paragraph><paragraph id="HB2196221F8BF4CF58CB2AA80CFF83823"><enum>(2)</enum><header>Payment to State funds</header><text display-inline="yes-display-inline">Except as otherwise provided in this paragraph and paragraph (4), payments made under this subsection shall be made directly to the State or States in which the retail electric supplier is located, in proportion to the portion of the retail electric supplier’s base amount that is sold within each relevant State, provided that such payments are deposited directly into a fund in the State treasury established for this purpose and that the State uses such funds in accordance with paragraphs (3) and (5) and with paragraph (4), where applicable. If the Commission determines at any time that a State is in substantial noncompliance with paragraph (3) or (5), or with paragraph (4), where applicable, the Commission shall direct that any future alternative compliance payments that would otherwise be paid to such State under this subsection shall instead be paid to the Commission and deposited in the United States Treasury.</text> </paragraph><paragraph id="HD3CE4028C25C44CB8A0C1996C16BFA7C"><enum>(3)</enum><header>State use of funds</header><text>As a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall use such payments exclusively for the purposes of—</text> <subparagraph id="H71590C427EB44E5A925D373017041D3C"><enum>(A)</enum><text>deploying technologies that generate electricity from renewable energy resources; or</text> </subparagraph><subparagraph id="H6CAA68BAA1414E05AFEAE3ED1477EB7E"><enum>(B)</enum><text>implementing cost-effective energy efficiency programs to achieve electricity savings.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HA7F6B2D9ECA3423D966777F6FC0EA743"><enum>(4)</enum><header>Central procurement states</header> <subparagraph id="HD06A74B0BACF4D8CBC8A29C4F3B36182"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A central procurement State that, pursuant to subsection (g), has assumed responsibility for compliance with the requirements of subsection (b) shall deposit any alternative compliance payments under this subsection in a unique fund in the State treasury created and used solely for this purpose.</text> </subparagraph><subparagraph id="H063A3C5D69114FB086224AEFAD2128C8"><enum>(B)</enum><header>Requirements</header><text>As a precondition of making alternative compliance payments under this subsection, a central procurement State shall certify to the Commission, in accordance with such requirements as the Commission may prescribe, that—</text> <clause id="H6B5FECB802EC41D49C276B04459D0816"><enum>(i)</enum><text>making such payments is the lowest cost alternative to meet the requirements of subsection (b); and</text> </clause><clause id="H42609FDCD5974CF6BDF829E4CC65A9B7"><enum>(ii)</enum><text>moneys used by the State to make such payments are in addition to any spending that the State, and any separate entity charged with administering the State central procurement requirement identified under subsection (a)(7), otherwise collectively would direct to the purposes identified in paragraph (3).</text> </clause></subparagraph><subparagraph id="HD61B42B365BE4440A20CFF0A28FC77D2"><enum>(C)</enum><header>Uses</header><text>A central procurement State that makes alternative compliance payments under this subsection shall certify to the Commission that, in using such payments in accordance with paragraph (3), it has, to the extent practicable, maximized the level of deployment of renewable electricity generation (measured in megawatt hours) and electricity savings per dollar that are achieved through such expenditures.</text> </subparagraph></paragraph><paragraph id="H3E135F68458B413CBF9F71A43C9BCE55"><enum>(5)</enum><header>Reporting</header><text display-inline="yes-display-inline">As a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall, within 12 months of receipt of any such payments and at 12-month intervals thereafter until such payments are expended, provide a report to the Commission, in accordance with such regulations as the Commission may prescribe, giving a full accounting of the use of such payments, including a detailed description of the activities funded thereby and demonstrating compliance with the requirements of this subsection.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H3DC80A8B363941358175EFC2783BC256"><enum>(g)</enum><header>Central procurement States</header> <paragraph id="H8B397FF0FCAF4DCD872A0D87C892A586"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A central procurement State may, upon submission of a written request by the Governor of such State to the Commission, assume responsibility for compliance with the requirements of subsection (b) on behalf of retail electric suppliers located in such State, exclusively with regard to the portion of such retail electric suppliers’ base amount that is sold within the State.</text> </paragraph><paragraph id="H5BB93FBAF493401AB257D2920BA4B066"><enum>(2)</enum><header>Demonstration of electricity savings</header><text>If a central procurement State opts to meet any part of the requirements of subsection (b) based on the achievement of demonstrated total annual electricity savings, regardless of whether such State has received delegated authority pursuant to subsection (f)(5), such State shall submit such demonstrated total annual electricity savings to the Commission through an annual report in accordance with requirements prescribed by the Commission by regulation, which shall be of equivalent stringency to those applicable to retail electric suppliers under subsection (f).</text> </paragraph><paragraph id="H9125D50E1B0C44BE989B6A80141C1C27"><enum>(3)</enum><header>Noncompliance</header><text>If a central procurement State that pursuant to this subsection has assumed responsibility for compliance with the requirements of subsection (b), fails to satisfy the requirements of subsection (b) or (h) for any year, the State’s assumption of responsibility under this subsection shall be discontinued immediately, and retail electric suppliers located in such State henceforth shall be directly subject to the requirements of this section.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HD84188F76B3B48AF8FCAAF50732F7EB9"><enum>(h)</enum><header>Information collection</header><text>The Commission may require any retail electric supplier, renewable electricity generator, or such other entities as the Commission deems appropriate, to provide any information the Commission determines appropriate to carry out this section. Failure to submit such information or submission of false or misleading information under this subsection shall be a violation of this section.</text> </subsection><subsection id="H84BB9F359C064941BD4E3DE4AC698938"><enum>(i)</enum><header>Enforcement and judicial review</header> <paragraph id="H4A53FD88285C4B088622743EECEDAD62"><enum>(1)</enum><header>Failure to submit credits or demonstrate savings</header><text display-inline="yes-display-inline">If any person, other than any central procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection (b), fails to comply with the requirements of subsection (b) or (h), such person shall be liable to pay to the Commission a civil penalty equal to the product of—</text> <subparagraph id="HE316FC2F61864B028052099A68C94396"><enum>(A)</enum><text>double the alternative compliance payment calculated under subsection (h)(1), and</text> </subparagraph><subparagraph id="H761AD43C65E34F2CA359C007DBC0B53F"><enum>(B)</enum><text>the aggregate quantity of Federal renewable electricity credits, total annual electricity savings, or equivalent alternative compliance payments that the person failed to submit in violation of the requirements of subsections (b) and (h).</text> </subparagraph></paragraph><paragraph id="HBE83CFBE61924309B0C60C6A7E26BF6F"><enum>(2)</enum><header>Enforcement</header><text>The Commission shall assess a civil penalty under paragraph (1) in accordance with the procedures described in section 31(d) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/823b">16 U.S.C. 823b(d)</external-xref>).</text> </paragraph><paragraph id="HE06743BEA13748D68AB1B567758E39C6"><enum>(3)</enum><header>Violation of requirement of regulations or orders</header><text display-inline="yes-display-inline">Any person, other than any central procurement State that pursuant to subsection (g) has assumed responsibility for compliance with the requirements of subsection (b), who violates, or fails or refuses to comply with, any requirement of a regulation promulgated or order issued under this section shall be subject to a civil penalty under section 316A(b) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825o-1">16 U.S.C. 825o–1</external-xref>). Such penalty shall be assessed by the Commission in the same manner as in the case of a violation referred to in section 316A(b) of such Act.</text> </paragraph></subsection><subsection id="HCC886C6075BF428CB5D0D9DEFE70C961"><enum>(j)</enum><header>Judicial review</header><text>Any person aggrieved by a final action taken by the Commission under this section, other than the assessment of a civil penalty under subsection (j), may use the procedures for review described in section 313 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825l">16 U.S.C. 825l</external-xref>). For purposes of this paragraph, references to an order in section 313 of such Act shall be deemed to refer also to all other final actions of the Commission under this section other than the assessment of a civil penalty under subsection (i).</text> </subsection><subsection id="H9C7577F9798D48FF91ED54A49FDC6ACF"><enum>(k)</enum><header>Savings provisions</header><text>Nothing in this section shall—</text> <paragraph id="H0F72DC0D193B4B179D0BDDEFB33B28B3"><enum>(1)</enum><text>diminish or qualify any authority of a State, a political subdivision of a State, or an Indian tribe to—</text> <subparagraph id="H7B949AC519DD4614B1F453A4AE99AF7C"><enum>(A)</enum><text>adopt or enforce any law or regulation respecting renewable electricity or energy efficiency, including any law or regulation establishing requirements more stringent than those established by this section, provided that no such law or regulation may relieve any person of any requirement otherwise applicable under this section; or</text> </subparagraph><subparagraph id="H6D092E7B5A7E455686A985D12134B16F"><enum>(B)</enum><text>regulate the acquisition and disposition of Federal renewable electricity credits by retail electric suppliers within the jurisdiction of such State, political subdivision, or Indian tribe, including the authority to require such retail electric supplier to acquire and submit to the Secretary for retirement Federal renewable electricity credits in excess of those submitted under this section; or</text> </subparagraph></paragraph><paragraph id="H79BCC9F0990D49ADA48A8DAFC8A81B60"><enum>(2)</enum><text>affect the application of, or the responsibility for compliance with, any other provision of law or regulation, including environmental and licensing requirements.</text> </paragraph></subsection><subsection id="HAB977BC906BF4924B00890636CEA573C"><enum>(l)</enum><header>Sunset</header><text>This section expires on December 31, 2040.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HB85A5710289A4CA7ADD7E6185D492AA8"><enum>(b)</enum><header>Conforming amendment</header><text>The table of contents set forth in section 1(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by inserting after the item relating to section 609 the following:</text> <quoted-block display-inline="no-display-inline" id="HE3ECC247A0C646629052BE829E9FB04C" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 610. Combined efficiency and renewable electricity standard.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H70AC4B53F95B4501A1CDCACC2F1277F0"><enum>102.</enum><header>Clarifying State authority to adopt renewable energy incentives</header><text display-inline="no-display-inline">Section 210 of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end thereof:</text> <quoted-block display-inline="no-display-inline" id="H70920FD0658F4CFC9263656431EB4C52" style="OLC"> <subsection id="HFA5CE452D5A8467E9974FB82A41814D7"><enum>(o)</enum><header>Clarification of State authority to adopt renewable energy incentives</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this Act or the Federal Power Act, a State legislature or regulatory authority may set the rates for a sale of electric energy by a facility generating electric energy from renewable energy sources pursuant to a State-approved production incentive program under which the facility voluntarily sells electric energy. For purposes of this subsection, <quote>State-approved production incentive program</quote> means a requirement imposed pursuant to State law, or by a State regulatory authority acting within its authority under State law, that an electric utility purchase renewable energy (as defined in section 609 of this Act) at a specified rate.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H5624F22A3F8243C8A2BC66881C11C8BA"><enum>103.</enum><header>Federal renewable energy purchases</header> <subsection id="H3E893EFB3E3E4E1DBC68164435B241E6"><enum>(a)</enum><header>Requirement</header><text display-inline="yes-display-inline">For each of calendar years 2012 through 2039, the President shall ensure that, of the total amount of electricity Federal agencies consume in the United States during each calendar year, the following percentage shall be renewable electricity:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Entry: 2 text, bold hds" table-type=""> <tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt" colname="column1" colwidth="230pts" min-data-value="190" rowsep="0"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="0" colwidth="95pts" min-data-value="95" rowsep="0"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>Calendar year</bold></entry><entry align="left" colname="column2" morerows="0" namest="column2"><bold>Required annual percentage</bold></entry> </row> </thead> <tbody> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2012</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">6.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">6.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">9.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">9.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">13.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2017</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">13.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2018</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">16.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2019</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">16.5</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2020</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">20.0</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr">2021 through 2039</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">20.0</entry> </row> </tbody> </tgroup> </table> </subsection><subsection id="H842057BD9B2A4FE2A52F30D7D1AE8105"><enum>(b)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="HCF8B72DF555E42B190CDA99A0F077808"><enum>(1)</enum><header>Renewable electricity</header><text>The term “renewable electricity” shall have the meaning given in section 610 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following).</text> </paragraph><paragraph id="HB68333C1C63C4B858149BEBD7E2061D1"><enum>(2)</enum><header>Renewable energy resource</header><text>The term “renewable energy resource” shall have the meaning given in section 610 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following).</text> </paragraph></subsection><subsection id="H2C665CE2F1004421920DEA4D76D7E550"><enum>(c)</enum><header>Modification of requirement</header><text>If the President determines that the Federal Government cannot feasibly meet the requirement established in subsection (a) in a specific calendar year, the President may, by written order, reduce such requirement for such calendar year to a percentage the President determines the Federal Government can feasibly meet.</text> </subsection><subsection id="H5F7063240E774128933F19768E431656"><enum>(d)</enum><header>Reports</header><text>Not later than April 1, 2013, and each year thereafter, the Secretary of Energy shall provide a report to Congress on the percentage of each Federal agency’s electricity consumption in the United States that was renewable electricity in the previous calendar year.</text> </subsection><subsection id="HAB2E689E1C7549DDBA2AFE675EF14594"><enum>(e)</enum><header>Contracts for renewable energy</header><paragraph commented="no" display-inline="yes-display-inline" id="HE8D54DA8303F4AF599E93380E1DB7764"><enum>(1)</enum><text>Notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/40/501">section 501(b)(1)(B)</external-xref> of title 40, United States Code, a contract for the acquisition of electricity generated from a renewable energy resource for the Federal Government may be made for a period of not more than 20 years.</text> </paragraph><paragraph id="H2994EFE1AA0349C49E388923D09B090C" indent="up1"><enum>(2)</enum><text>Not later than 90 days after the date of enactment of this subsection, the Secretary of Energy, through the Federal Energy Management Program, shall publish a standardized renewable energy purchase agreement, setting forth commercial terms and conditions, that Federal agencies may use to acquire electricity generated from a renewable energy resource.</text> </paragraph><paragraph id="H7EB14091F39C41EB8DFDF0C9D8B778DE" indent="up1"><enum>(3)</enum><text>The Secretary of Energy shall provide technical assistance to assist Federal agencies in implementing this subsection.</text> </paragraph></subsection></section></subtitle><subtitle id="H3D7491F0F7A14F74B0BD5EAF2D7C6763"><enum>B</enum><header>Carbon Capture and Sequestration</header> <section display-inline="no-display-inline" id="H51F862ED8F3F4932A4A91059C043F986" section-type="subsequent-section"><enum>111.</enum><header>National strategy</header> <subsection id="H08B481838C6A479AAD33B8940566C138"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Energy, the Secretary of the Interior, and the heads of such other relevant Federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal, regulatory and other barriers to the commercial-scale deployment of carbon capture and sequestration.</text> </subsection><subsection id="H60B1C58348C9459AB09C275508F3FB36"><enum>(b)</enum><header>Barriers</header><text>The report under this section shall—</text> <paragraph id="HCB4FC3A6C2C64AEAB8B4817544525FF9"><enum>(1)</enum><text>identify those regulatory, legal, and other gaps and barriers that could be addressed by a Federal agency using existing statutory authority, those, if any, that require Federal legislation, and those that would be best addressed at the State, tribal, or regional level;</text> </paragraph><paragraph id="HCC4F0E9F53544F99A8AC05C82ADD18F1"><enum>(2)</enum><text>identify regulatory implementation challenges, including those related to approval of State and tribal programs and delegation of authority for permitting; and</text> </paragraph><paragraph id="H7BF5D50181CD41718AE94DC86F5A05CE"><enum>(3)</enum><text display-inline="yes-display-inline">recommend rulemakings, Federal legislation, or other actions that should be taken to further evaluate and address such barriers.</text> </paragraph></subsection></section><section id="H4D8015BEE4CB4DC292F87DBF898A7617"><enum>112.</enum><header>Regulations for geologic sequestration sites</header> <subsection id="HC04981F920F74F30BAF606A7CE9DB7D9"><enum>(a)</enum><header>Coordinated Certification and Permitting Process</header><text>Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by adding after section 812 (as added by section 116 of this Act) the following:</text> <quoted-block display-inline="no-display-inline" id="H36A12354BF0A48628E24CB23947F2617" style="OLC"> <section id="H072CCF604C67429F975B4C58F609DA4E"><enum>813.</enum><header>Geologic sequestration sites</header> <subsection id="H8FEAB9F6B61445289EC517E9CAFEA3E3"><enum>(a)</enum><header>Coordinated process</header><text>The Administrator shall establish a coordinated approach to certifying and permitting geologic sequestration, taking into consideration all relevant statutory authorities. In establishing such approach, the Administrator shall—</text> <paragraph id="HCE31139C60E84A5CBB83336F966DA534"><enum>(1)</enum><text>take into account, and reduce redundancy with, the requirements of section 1421 of the Safe Drinking Water Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300h">42 U.S.C. 300h</external-xref>), as amended by section 112(b) of the <short-title>American Clean Energy and Security Act of 2009</short-title>, including the rulemaking for geologic sequestration wells described at 73 Fed. Reg. 43491–541 (July 25, 2008); and</text> </paragraph><paragraph id="HFD653D8A0FC14500948B4788896AB775"><enum>(2)</enum><text>to the extent practicable, reduce the burden on certified entities and implementing authorities.</text> </paragraph></subsection><subsection id="H6E515DDD5C8E4C28B03E4BBE753C89D9"><enum>(b)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to protect human health and the environment by minimizing the risk of escape to the atmosphere of carbon dioxide injected for purposes of geologic sequestration.</text> </subsection><subsection id="HD9DB48F577094D87A2A95A03A6FE4CEB"><enum>(c)</enum><header>Requirements</header><text>The regulations under subsection (b) shall include—</text> <paragraph id="H4ACD00579DE34A4B8066FD79A8645D02"><enum>(1)</enum><text>a process to obtain certification for geologic sequestration under this section; and</text> </paragraph><paragraph id="H77BC518EE3A54667B12A2051E13D6796"><enum>(2)</enum><text>requirements for—</text> <subparagraph id="H805142C5E9E2445D9192FA1EC3E1D840"><enum>(A)</enum><text>monitoring, record keeping, and reporting for emissions associated with injection into, and escape from, geologic sequestration sites, taking into account any requirements or protocols developed under section 713;</text> </subparagraph><subparagraph id="HB76E37A4D7D44BCEAFE07EB7F8840645"><enum>(B)</enum><text>public participation in the certification process that maximizes transparency;</text> </subparagraph><subparagraph id="H2C51C0F87379408EB7C5B9F7A39517F1"><enum>(C)</enum><text>the sharing of data between States, Indian tribes, and the Environmental Protection Agency; and</text> </subparagraph><subparagraph id="H567165FC174E490E817C749CDA6CDB5D"><enum>(D)</enum><text>other elements or safeguards necessary to achieve the purpose set forth in subsection (b).</text> </subparagraph></paragraph></subsection><subsection id="H3F7C3AEFD66A4532B9948684F74B465A"><enum>(d)</enum><header>Report</header><text>Not later than 2 years after the promulgation of regulations under subsection (b), and at 3-year intervals thereafter, the Administrator shall deliver to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on geologic sequestration in the United States, and, to the extent relevant, other countries in North America. Such report shall include—</text> <paragraph id="H6B433FA616464219ACEFF68C0FFFA09E"><enum>(1)</enum><text>data regarding injection, emissions to the atmosphere, if any, and performance of active and closed geologic sequestration sites, including those where enhanced hydrocarbon recovery operations occur;</text> </paragraph><paragraph id="HF59CD90E060C41B1AE8469305264D357"><enum>(2)</enum><text>an evaluation of the performance of relevant Federal environmental regulations and programs in ensuring environmentally protective geologic sequestration practices;</text> </paragraph><paragraph id="H7CA8C79BA4044BE2812D4EEC0DF0D6CD"><enum>(3)</enum><text>recommendations on how such programs and regulations should be improved or made more effective; and</text> </paragraph><paragraph id="H40327B18533545DC9D487AD7D884BCED"><enum>(4)</enum><text>other relevant information.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H6A22294D769B4308A11839DC90A7C3B3"><enum>(b)</enum><header>Safe Drinking Water Act standards</header><text display-inline="yes-display-inline">Section 1421 of the Safe Drinking Water Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300h">42 U.S.C. 300h</external-xref>) is amended by inserting after subsection (d) the following:</text> <quoted-block display-inline="no-display-inline" id="H27031D93DB744B5B8C9937F0B3BF5EBE" style="OLC"> <subsection id="HD6CD6B5A3C8B41E2BEC36F8A3B00CEAC"><enum>(e)</enum><header>Carbon dioxide geologic sequestration wells</header> <paragraph id="HE2C7E8F12889411DA6298D8EA2C5E70D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations under subsection (a) for carbon dioxide geologic sequestration wells.</text> </paragraph><paragraph id="H9966C5453F6C43C981664F1835E2BB3E"><enum>(2)</enum><header>Financial responsibility</header><text>The regulations referred to in paragraph (1) shall include requirements for maintaining evidence of financial responsibility, including financial responsibility for emergency and remedial response, well plugging, site closure, and post-injection site care. Financial responsibility may be established for carbon dioxide geologic sequestration wells in accordance with regulations promulgated by the Administrator by any one, or any combination, of the following: insurance, guarantee, trust, standby trust, surety bond, letter of credit, qualification as a self-insurer, or any other method satisfactory to the Administrator.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HA71D74CEBF3D4972B1E1F2BB57CF0814"><enum>113.</enum><header>Studies and reports</header> <subsection display-inline="no-display-inline" id="H5028CEFA8A4E4B38AE1096C6512F129D"><enum>(a)</enum><header>Study of legal framework for geologic sequestration sites</header> <paragraph id="H1724CDB723214A1BA00DD378A374908B"><enum>(1)</enum><header>Establishment of task force</header><text display-inline="yes-display-inline">As soon as practicable, but not later than 6 months after the date of enactment of this Act, the Administrator shall establish a task force to be composed of an equal number of subject matter experts, nongovernmental organizations with expertise in environmental policy, academic experts with expertise in environmental law, State and tribal officials with environmental expertise, representatives of State and tribal Attorneys General, representatives from the Environmental Protection Agency, the Department of the Interior, the Department of Energy, the Department of Transportation, and other relevant Federal agencies, and members of the private sector, to conduct a study of—</text> <subparagraph id="HE09DC23BBC724F55BB167AEF7D4C56E5"><enum>(A)</enum><text>existing Federal environmental statutes, State environmental statutes, and State common law that apply to geologic sequestration sites for carbon dioxide, including the ability of such laws to serve as risk management tools;</text> </subparagraph><subparagraph id="H7370BF59AD0747A9AA83D0A1730EC199"><enum>(B)</enum><text display-inline="yes-display-inline">the existing statutory framework, including Federal and State laws, that apply to harm and damage to the environment or public health at closed sites where carbon dioxide injection has been used for enhanced hydrocarbon recovery;</text> </subparagraph><subparagraph id="H54FB0E21920941C4AC88CAB02B63732C"><enum>(C)</enum><text>the statutory framework, environmental health and safety considerations, implementation issues, and financial implications of potential models for Federal, State, or private sector assumption of liabilities and financial responsibilities with respect to closed geologic sequestration sites;</text> </subparagraph><subparagraph id="H0ADAFAF118FF49D689A78EEABAE369C6"><enum>(D)</enum><text>private sector mechanisms, including insurance and bonding, that may be available to manage environmental, health and safety risk from closed geologic sequestration sites; and</text> </subparagraph><subparagraph id="H97912182BA514CAD9CBE858E0BC5DEEA"><enum>(E)</enum><text>the subsurface mineral rights, water rights, or property rights issues associated with geologic sequestration of carbon dioxide, including issues specific to Federal lands.</text> </subparagraph></paragraph><paragraph id="H4EA40105382947ECA3578C2276ACD1BF"><enum>(2)</enum><header>Report</header><text>Not later than 18 months after the date of enactment of this Act, the task force established under paragraph (1) shall submit to Congress a report describing the results of the study conducted under that paragraph including any consensus recommendations of the task force.</text> </paragraph></subsection><subsection id="H4E18524591E14137A23294F6D1CEBE19"><enum>(b)</enum><header>Environmental statutes</header> <paragraph id="HF4C90F251EF84FF6A34B9D194571144C"><enum>(1)</enum><header>Study</header><text>The Administrator shall conduct a study examining how, and under what circumstances, the environmental statutes for which the Environmental Protection Agency has responsibility would apply to carbon dioxide injection and geologic sequestration activities.</text> </paragraph><paragraph id="H6EEC47BBBEE04B88A956160F6B69F2DF"><enum>(2)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to Congress a report describing the results of the study conducted under paragraph (1).</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H6EF853A67D51412FB348804F24F11E2E"><enum>114.</enum><header>Carbon capture and sequestration demonstration and early deployment program</header> <subsection id="HC70191E565924C84821FAB469BA53608"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section:</text> <paragraph id="H48177F0DA14F43468D28D50F5D14C408"><enum>(1)</enum><header>Secretary</header><text display-inline="yes-display-inline">The term <quote>Secretary </quote> means the Secretary of Energy.</text> </paragraph><paragraph id="H40BAEF79480D4CA0B30A1FFDC6690E9D"><enum>(2)</enum><header>Distribution utility</header><text display-inline="yes-display-inline">The term <quote>distribution utility</quote> means an entity that distributes electricity directly to retail consumers under a legal, regulatory, or contractual obligation to do so.</text> </paragraph><paragraph id="H24B867FD4AC840DE92C723740A97E34C"><enum>(3)</enum><header>Electric utility</header><text>The term <quote>electric utility</quote> has the meaning provided by section 3(22) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(22)</external-xref>).</text> </paragraph><paragraph id="HF5E03C3B62BD434AB73EF15723D990AE"><enum>(4)</enum><header>Fossil fuel-based electricity</header><text display-inline="yes-display-inline">The term <quote>fossil fuel-based electricity</quote> means electricity that is produced from the combustion of fossil fuels.</text> </paragraph><paragraph id="H2FAC0228F4E74375B430464601D17556"><enum>(5)</enum><header>Fossil fuel</header><text>The term <quote>fossil fuel</quote> means coal, petroleum, natural gas or any derivative of coal, petroleum, or natural gas.</text> </paragraph><paragraph id="HF12CA9F603BD46878750EB7D5FFFF5FD"><enum>(6)</enum><header>Corporation</header><text>The term <quote>Corporation</quote> means the Carbon Storage Research Corporation established in accordance with this section.</text> </paragraph><paragraph id="HFDDAFEB8F44E49779549233C17493856"><enum>(7)</enum><header>Qualified industry organization</header><text display-inline="yes-display-inline">The term <quote>qualified industry organization</quote> means the Edison Electric Institute, the American Public Power Association, the National Rural Electric Cooperative Association, a successor organization of such organizations, or a group of owners or operators of distribution utilities delivering fossil fuel-based electricity who collectively represent at least 20 percent of the volume of fossil fuel-based electricity delivered by distribution utilities to consumers in the United States.</text> </paragraph><paragraph id="HAE3ED095D33E4FD8B7F1D2C2BEEB05C9"><enum>(8)</enum><header>Retail consumer</header><text>The term “retail consumer” means an end-user of electricity.</text> </paragraph></subsection><subsection id="H75260C61B76148EC83D211F2D7F567CD"><enum>(b)</enum><header>Carbon Storage Research Corporation</header> <paragraph id="H3DC487521B7C491CBF1A206B457A52A5"><enum>(1)</enum><header>Establishment</header> <subparagraph id="HAB9F5CDEE6A9448EB5DCC1955FF44C1E"><enum>(A)</enum><header>Referendum</header><text>Qualified industry organizations may conduct, at their own expense, a referendum among the owners or operators of distribution utilities delivering fossil fuel-based electricity for the creation of a Carbon Storage Research Corporation. Such referendum shall be conducted by an independent auditing firm agreed to by the qualified industry organizations. Voting rights in such referendum shall be based on the quantity of fossil fuel-based electricity delivered to consumers in the previous calendar year or other representative period as determined by the Secretary pursuant to subsection (f). Upon approval of those persons representing two-thirds of the total quantity of fossil fuel-based electricity delivered to retail consumers, the Corporation shall be established unless opposed by the State regulatory authorities pursuant to subparagraph (B). All distribution utilities voting in the referendum shall certify to the independent auditing firm the quantity of fossil fuel-based electricity represented by their vote.</text> </subparagraph><subparagraph id="H436DC0D3E5504429A55B2EB423352532"><enum>(B)</enum><header>State regulatory authorities</header><text>Upon its own motion or the petition of a qualified industry organization, each State regulatory authority shall consider its support or opposition to the creation of the Corporation under subparagraph (A). State regulatory authorities may notify the independent auditing firm referred to in subparagraph (A) of their views on the creation of the Corporation within 180 days after the date of enactment of this Act. If 40 percent or more of the State regulatory authorities submit to the independent auditing firm written notices of opposition, the Corporation shall not be established notwithstanding the approval of the qualified industry organizations as provided in subparagraph (A).</text> </subparagraph></paragraph><paragraph id="H98772C287A0E437EB2C1F6271FC78074"><enum>(2)</enum><header>Termination</header><text display-inline="yes-display-inline">The Corporation shall be authorized to collect assessments and conduct operations pursuant to this section for a 10-year period from the date 6 months after the date of enactment of this Act. After such 10-year period, the Corporation is no longer authorized to collect assessments and shall be dissolved on the date 15 years after such date of enactment, unless the period is extended by an Act of Congress.</text> </paragraph><paragraph id="H0800B59D57574E068C3AF9A36C0C2A1B"><enum>(3)</enum><header>Governance</header><text>The Corporation shall operate as a division or affiliate of the Electric Power Research Institute (referred to in this section as <quote>EPRI</quote>) and be managed by a Board of not more than 15 voting members responsible for its operations, including compliance with this section. EPRI, in consultation with the Edison Electric Institute, the American Public Power Association and the National Rural Electric Cooperative Association shall appoint the Board members under clauses (i), (ii), and (iii) of subparagraph (A) from among candidates recommended by those organizations. At least a majority of the Board members appointed by EPRI shall be representatives of distribution utilities subject to assessments under subsection (d).</text> <subparagraph id="HB1D2A8DD2AE64A8FA785DC9FE783D24A"><enum>(A)</enum><header>Members</header><text>The Board shall include at least one representative of each of the following:</text> <clause id="HF0F84AF83B8746208912921CEC9DF844"><enum>(i)</enum><text>Investor-owned utilities.</text> </clause><clause id="H9B9C3855D4F9482B9961466DED5081DA"><enum>(ii)</enum><text>Utilities owned by a State agency, a municipality, and an Indian tribe.</text> </clause><clause id="H608F563D61394D76966A19A50F3A40A9"><enum>(iii)</enum><text>Rural electric cooperatives.</text> </clause><clause id="H1A71B401C8C04D5B891953CF2FA3FB86"><enum>(iv)</enum><text>Fossil fuel producers.</text> </clause><clause id="H96127B16C4744D9FB9B82A1247409633"><enum>(v)</enum><text>Nonprofit environmental organizations.</text> </clause><clause id="HAF7C70495AD34726A527D8DE4CF02F29"><enum>(vi)</enum><text>Independent generators or wholesale power providers.</text> </clause><clause id="H49416DCC97C34C1780D21A2CD4F81608"><enum>(vii)</enum><text>Consumer groups.</text> </clause></subparagraph><subparagraph id="H257B5836B6D54DC3BEB65565326DD0D5"><enum>(B)</enum><header>Nonvoting Members</header><text>The Board shall also include as additional nonvoting Members the Secretary of Energy or his designee and 2 representatives of State regulatory authorities as defined in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2602">16 U.S.C. 2602(17)</external-xref>), each designated by the National Association of State Regulatory Utility Commissioners from States that are not within the same transmission interconnection.</text> </subparagraph></paragraph><paragraph id="H6E6C3E12DBD74D8D905574BFFA69E7CE"><enum>(4)</enum><header>Compensation</header><text display-inline="yes-display-inline">Corporation Board members shall receive no compensation for their services, nor shall Corporation Board members be reimbursed for expenses relating to their service.</text> </paragraph><paragraph id="H0DECE4E80A8440CA8A98D4347FCFE846"><enum>(5)</enum><header>Terms</header><text display-inline="yes-display-inline">Corporation Board members shall serve terms of 4 years and may serve not more than 2 full consecutive terms. Members filling unexpired terms may serve not more than a total of 8 consecutive years. Former members of the Corporation Board may be reappointed to the Corporation Board if they have not been members for a period of 2 years. Initial appointments to the Corporation Board shall be for terms of 1, 2, 3, and 4 years, staggered to provide for the selection of 3 members each year.</text> </paragraph><paragraph id="H1A24E368EEDA455ABA290AB2CB9FCF13"><enum>(6)</enum><header>Status of Corporation</header><text>The Corporation shall not be considered to be an agency, department, or instrumentality of the United States, and no officer or director or employee of the Corporation shall be considered to be an officer or employee of the United States Government, for purposes of title 5 or title 31 of the United States Code, or for any other purpose, and no funds of the Corporation shall be treated as public money for purposes of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/33">chapter 33</external-xref> of title 31, United States Code, or for any other purpose.</text> </paragraph></subsection><subsection id="HBBC0DC7328BB4659B39D0520FBCCBF53"><enum>(c)</enum><header>Functions and administration of the Corporation</header> <paragraph id="H72B7583190D64B95BFED7FC75CCA0718"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Corporation shall establish and administer a program to accelerate the commercial availability of carbon dioxide capture and storage technologies and methods, including technologies which capture and store, or capture and convert, carbon dioxide. Under such program competitively awarded grants, contracts, and financial assistance shall be provided and entered into with eligible entities. Except as provided in paragraph (8), the Corporation shall use all funds derived from assessments under subsection (d) to issue grants and contracts to eligible entities.</text> </paragraph><paragraph id="H6BA0A7C680094C55BBE5C35A9961AE6D"><enum>(2)</enum><header>Purpose</header><text display-inline="yes-display-inline">The purposes of the grants, contracts, and assistance under this subsection shall be to support commercial-scale demonstrations of carbon capture or storage technology projects capable of advancing the technologies to commercial readiness. Such projects should encompass a range of different coal and other fossil fuel varieties, be geographically diverse, involve diverse storage media, and employ capture or storage, or capture and conversion, technologies potentially suitable either for new or for retrofit applications. The Corporation shall seek, to the extent feasible, to support at least 5 commercial-scale demonstration projects integrating carbon capture and sequestration or conversion technologies.</text> </paragraph><paragraph id="H2CBC9055416240389FDAD7DA6E2E6661"><enum>(3)</enum><header>Eligible entities</header><text display-inline="yes-display-inline">Entities eligible for grants, contracts or assistance under this subsection may include distribution utilities, electric utilities and other private entities, academic institutions, national laboratories, Federal research agencies, State and tribal research agencies, nonprofit organizations, or consortiums of 2 or more entities. Pilot-scale and similar small-scale projects are not eligible for support by the Corporation. Owners or developers of projects supported by the Corporation shall, where appropriate, share in the costs of such projects.</text> </paragraph><paragraph id="H3DB55949037240F9A3464A7504DD3E6E"><enum>(4)</enum><header>Grants for early movers</header><text>Fifty percent of the funds raised under this section shall be provided in the form of grants to electric utilities that had, prior to the award of any grant under this section, committed resources to deploy a large scale electricity generation unit with integrated carbon capture and sequestration or conversion applied to a substantial portion of the unit’s carbon dioxide emissions. Grant funds shall be provided to defray costs incurred by such electricity utilities for at least 5 such electricity generation units.</text> </paragraph><paragraph id="H7392655163464171A40A649E3ABF93A3"><enum>(5)</enum><header>Administration</header><text display-inline="yes-display-inline">The members of the Board of Directors of the Corporation shall elect a Chairman and other officers as necessary, may establish committees and subcommittees of the Corporation, and shall adopt rules and bylaws for the conduct of business and the implementation of this section. The Board shall appoint an Executive Director and professional support staff who may be employees of the Electric Power Research Institute (EPRI). After consultation with the Technical Advisory Committee established under subsection (j), the Secretary, and the Director of the National Energy Technology Laboratory to obtain advice and recommendations on plans, programs, and project selection criteria, the Board shall establish priorities for grants, contracts, and assistance; publish requests for proposals for grants, contracts, and assistance; and award grants, contracts, and assistance competitively, on the basis of merit, after the establishment of procedures that provide for scientific peer review by the Technical Advisory Committee. The Board shall give preference to applications that reflect the best overall value and prospect for achieving the purposes of the section, such as those which demonstrate an integrated approach for capture and storage or capture and conversion technologies. The Board members shall not participate in making grants or awards to entities with whom they are affiliated.</text> </paragraph><paragraph id="HCFB2D43CC12248A8ADE52ED21E3F9B75"><enum>(6)</enum><header>Uses of grants, contracts, and assistance</header><text>A grant, contract, or other assistance provided under this subsection may be used to purchase carbon dioxide when needed to conduct tests of carbon dioxide storage sites, in the case of established projects that are storing carbon dioxide emissions, or for other purposes consistent with the purposes of this section. The Corporation shall make publicly available at no cost information learned as a result of projects which it supports financially.</text> </paragraph><paragraph id="HAFA3A2D1318C49A6B06DCD7BF581E655"><enum>(7)</enum><header>Intellectual property</header><text>The Board shall establish policies regarding the ownership of intellectual property developed as a result of Corporation grants and other forms of technology support. Such policies shall encourage individual ingenuity and invention.</text> </paragraph><paragraph id="H5BB11CEA43AA4207AA4DCFA5F71E4F78"><enum>(8)</enum><header>Administrative expenses</header><text display-inline="yes-display-inline">Up to 5 percent of the funds collected in any fiscal year under subsection (d) may be used for the administrative expenses of operating the Corporation (not including costs incurred in the determination and collection of the assessments pursuant to subsection (d)).</text> </paragraph><paragraph id="HDC4F981965E3477F89AFDE09EDEA04C1"><enum>(9)</enum><header>Programs and budget</header><text display-inline="yes-display-inline">Before August 1 each year, the Corporation, after consulting with the Technical Advisory Committee and the Secretary and the Director of the Department’s National Energy Technology Laboratory and other interested parties to obtain advice and recommendations, shall publish for public review and comment its proposed plans, programs, project selection criteria, and projects to be funded by the Corporation for the next calendar year. The Corporation shall also publish for public review and comment a budget plan for the next calendar year, including the probable costs of all programs, projects, and contracts and a recommended rate of assessment sufficient to cover such costs. The Secretary may recommend programs and activities the Secretary considers appropriate. The Corporation shall include in the first publication it issues under this paragraph a strategic plan or roadmap for the achievement of the purposes of the Corporation, as set forth in paragraph (2).</text> </paragraph><paragraph id="H381EB7AB58ED4241AE03F7414A39AF17"><enum>(10)</enum><header>Records; audits</header><text display-inline="yes-display-inline">The Corporation shall keep minutes, books, and records that clearly reflect all of the acts and transactions of the Corporation and make public such information. The books of the Corporation shall be audited by a certified public accountant at least once each fiscal year and at such other times as the Corporation may designate. Copies of each audit shall be provided to the Congress, all Corporation board members, all qualified industry organizations, each State regulatory authority and, upon request, to other members of the industry. If the audit determines that the Corporation’s practices fail to meet generally accepted accounting principles the assessment collection authority of the Corporation under subsection (d) shall be suspended until a certified public accountant renders a subsequent opinion that the failure has been corrected. The Corporation shall make its books and records available for review by the Secretary or the Comptroller General of the United States.</text> </paragraph><paragraph id="H660DD1DB6B1A4979A2ABE726F9684A28"><enum>(11)</enum><header>Public Access</header><text display-inline="yes-display-inline">The Corporation Board’s meetings shall be open to the public and shall occur after at least 30 days advance public notice. Meetings of the Board of Directors may be closed to the public where the agenda of such meetings includes only confidential matters pertaining to project selection, the award of grants or contracts, personnel matters, or the receipt of legal advice. The minutes of all meetings of the Corporation shall be made available to and readily accessible by the public.</text> </paragraph><paragraph id="H04C3CADC56FD466E9EAF82DF187F28A2"><enum>(12)</enum><header>Annual report</header><text display-inline="yes-display-inline">Each year the Corporation shall prepare and make publicly available a report which includes an identification and description of all programs and projects undertaken by the Corporation during the previous year. The report shall also detail the allocation or planned allocation of Corporation resources for each such program and project. The Corporation shall provide its annual report to the Congress, the Secretary, each State regulatory authority, and upon request to the public. The Secretary shall, not less than 60 days after receiving such report, provide to the President and Congress a report assessing the progress of the Corporation in meeting the objectives of this section.</text> </paragraph></subsection><subsection id="H0C05F72EC3434974A2059F4FA8EAFDDA"><enum>(d)</enum><header>Assessments</header> <paragraph id="H458E49AA608545BCB8AC06AE08E5C94F"><enum>(1)</enum><header>Amount</header><subparagraph commented="no" display-inline="yes-display-inline" id="H9C689B1C80C647B68B7AD0FE00E92A71"><enum>(A)</enum><text>In all calendar years following its establishment, the Corporation shall collect an assessment on distribution utilities for all fossil fuel-based electricity delivered directly to retail consumers (as determined under subsection (f)). The assessments shall reflect the relative carbon dioxide emission rates of different fossil fuel-based electricity, and initially shall be not less than the following amounts for coal, natural gas, and oil:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Entry: 2 text, bold hds" table-type=""> <tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt" colname="column1" colsep="0" colwidth="214pts" min-data-value="190" rowsep="0"></colspec><colspec align="center" char="" charoff="0" coldef="txt-no-ldr" colname="column2" colsep="0" colwidth="111pts" min-data-value="98" rowsep="0"></colspec> <tbody> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"><bold>Fuel type</bold></entry><entry colname="column2" leader-modify="clr-ldr"><bold>Rate of assessment per kilowatt hour</bold></entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">Coal</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">$0.00043</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">Natural Gas</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">$0.00022</entry> </row> <row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">Oil</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">$0.00032.</entry> </row> </tbody> </tgroup> </table> </subparagraph><subparagraph id="H98EA17DD9F9B4657B84300259B816A34" indent="up1"><enum>(B)</enum><text>The Corporation is authorized to adjust the assessments on fossil fuel-based electricity to reflect changes in the expected quantities of such electricity from different fuel types, such that the assessments generate not less than $1.0 billion and not more than $1.1 billion annually. The Corporation is authorized to supplement assessments through additional financial commitments.</text> </subparagraph></paragraph><paragraph id="HC47AE14BD46B4C56BE961BAEF7701F86"><enum>(2)</enum><header>Investment of funds</header><text display-inline="yes-display-inline">Pending disbursement pursuant to a program, plan, or project, the Corporation may invest funds collected through assessments under this subsection, and any other funds received by the Corporation, only in obligations of the United States or any agency thereof, in general obligations of any State or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the United States.</text> </paragraph><paragraph id="HCF632DFDD074435F845352B1F216E0F5"><enum>(3)</enum><header>Reversion of unused funds</header><text display-inline="yes-display-inline">If the Corporation does not disburse, dedicate or assign 75 percent or more of the available proceeds of the assessed fees in any calendar year 7 or more years following its establishment, due to an absence of qualified projects or similar circumstances, it shall reimburse the remaining undedicated or unassigned balance of such fees, less administrative and other expenses authorized by this section, to the distribution utilities upon which such fees were assessed, in proportion to their collected assessments.</text> </paragraph></subsection><subsection id="HD539BFECBD8E443C98A3A835AD41F90C"><enum>(e)</enum><header> ERCOT</header> <paragraph id="HF2F2C73891D24D2D9A65BB3FDF3C491E"><enum>(1)</enum><header>Assessment, collection, and remittance</header><subparagraph commented="no" display-inline="yes-display-inline" id="H68A6B2EED3114858862D6FA3602E39E4"><enum>(A)</enum><text>Notwithstanding any other provision of this section, within ERCOT, the assessment provided for in subsection (d) shall be—</text> <clause id="H516E364F397B44118D7FEF551A9D397C" indent="up1"><enum>(i)</enum><text>levied directly on qualified scheduling entities, or their successor entities;</text> </clause><clause id="H79BB934B252A4F97818F9AD5D049F230" indent="up1"><enum>(ii)</enum><text>charged consistent with other charges imposed on qualified scheduling entities as a fee on energy used by the load-serving entities; and</text> </clause><clause id="HDF1788E74BC5449AAF956F84F3C0A7BF" indent="up1"><enum>(iii)</enum><text>collected and remitted by ERCOT to the Corporation in the amounts and in the same manner as set forth in subsection (d).</text> </clause></subparagraph><subparagraph id="HB0EA31052DF445D6BF698EB53D3FE8B9" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The assessment amounts referred to in subparagraph (A) shall be—</text> <clause id="H507D5D5303CF4E0DB41D8102C76B46CC"><enum>(i)</enum><text>determined by the amount and types of fossil fuel-based electricity delivered directly to all retail customers in the prior calendar year beginning with the year ending immediately prior to the period described in subsection (b)(2); and</text> </clause><clause id="H01F02F21AB6840408386AED478CADF97"><enum>(ii)</enum><text>take into account the number of renewable energy credits retired by the load-serving entities represented by a qualified scheduling entity within the prior calendar year.</text> </clause></subparagraph></paragraph><paragraph id="H87A805B97550497C82B34F42EC7E4DB7"><enum>(2)</enum><header>Administration expenses</header><text display-inline="yes-display-inline">Up to 1 percent of the funds collected in any fiscal year by ERCOT under the provisions of this subsection may be used for the administrative expenses incurred in the determination, collection and remittance of the assessments to the Corporation.</text> </paragraph><paragraph id="H86B535CCD62C4459B1E6C429DAF2836A"><enum>(3)</enum><header>Audit</header><text>ERCOT shall provide a copy of its annual audit pertaining to the administration of the provisions of this subsection to the Corporation.</text> </paragraph><paragraph id="HCFE43916000140E68523E65FBB4D2398"><enum>(4)</enum><header>Definitions</header><text>For the purposes of this subsection:</text> <subparagraph id="H14708C0D1DA0416CA275FB9729DC26E7"><enum>(A)</enum><text>The term “ERCOT” means the Electric Reliability Council of Texas.</text> </subparagraph><subparagraph id="H29C87DC9DA2E42A2AC75E479B1F46949"><enum>(B)</enum><text>The term “load-serving entities” has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.</text> </subparagraph><subparagraph id="H18B5A2D344F04164B12036651CD6C9BB"><enum>(C)</enum><text>The term “qualified scheduling entities” has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.</text> </subparagraph><subparagraph id="H94EA552A3B8F473F8E62E4AE0681F861"><enum>(D)</enum><text>The term “renewable energy credit” has the meaning as promulgated and adopted by the Public Utility Commission of Texas pursuant to section 39.904(b) of the Public Utility Regulatory Act of 1999, and in effect on the date of enactment of this Act.</text> </subparagraph></paragraph></subsection><subsection id="HA8C4E7A43D5241128E57467A9B6DBB65"><enum>(f)</enum><header>Determination of fossil fuel-based electricity deliveries</header> <paragraph id="HCC57A67F36E3410DB8D82608386D3283"><enum>(1)</enum><header>Findings</header><text display-inline="yes-display-inline">The Congress finds that:</text> <subparagraph id="HF9C21CE47E6A4CC59C9475A31E6358B8"><enum>(A)</enum><text>The assessments under subsection (d) are to be collected based on the amount of fossil fuel-based electricity delivered by each distribution utility.</text> </subparagraph><subparagraph id="HD0C93A5A06E7446CA7E7671C78FDDE54"><enum>(B)</enum><text>Since many distribution utilities purchase all or part of their retail consumer’s electricity needs from other entities, it may not be practical to determine the precise fuel mix for the power sold by each individual distribution utility.</text> </subparagraph><subparagraph id="HFC177C0B4A894452B432B28DA0A602D0"><enum>(C)</enum><text>It may be necessary to use average data, often on a regional basis with reference to Regional Transmission Organization (<quote>RTO</quote>) or NERC regions, to make the determinations necessary for making assessments.</text> </subparagraph></paragraph><paragraph id="H47916BF3EDF44825826200EE3377181F"><enum>(2)</enum><header>DOE proposed rule</header><text>The Secretary, acting in close consultation with the Energy Information Administration, shall issue for notice and comment a proposed rule to determine the level of fossil fuel electricity delivered to retail customers by each distribution utility in the United States during the most recent calendar year or other period determined to be most appropriate. Such proposed rule shall balance the need to be efficient, reasonably precise, and timely, taking into account the nature and cost of data currently available and the nature of markets and regulation in effect in various regions of the country. Different methodologies may be applied in different regions if appropriate to obtain the best balance of such factors.</text> </paragraph><paragraph id="HB07B82D42433451CA07A613EDB6199CC"><enum>(3)</enum><header>Final rule</header><text display-inline="yes-display-inline">Within 6 months after the date of enactment of this Act, and after opportunity for comment, the Secretary shall issue a final rule under this subsection for determining the level and type of fossil fuel-based electricity delivered to retail customers by each distribution utility in the United States during the appropriate period. In issuing such rule, the Secretary may consider opportunities and costs to develop new data sources in the future and issue recommendations for the Energy Information Administration or other entities to collect such data. After notice and opportunity for comment the Secretary may, by rule, subsequently update and modify the methodology for making such determinations.</text> </paragraph><paragraph id="H1FF5561777624F7F85557940435C9FB3"><enum>(4)</enum><header>Annual determinations</header><text>Pursuant to the final rule issued under paragraph (3), the Secretary shall make annual determinations of the amounts and types for each such utility and publish such determinations in the Federal Register. Such determinations shall be used to conduct the referendum under subsection (b) and by the Corporation in applying any assessment under this subsection.</text> </paragraph><paragraph id="H1CF91B178EC94E0FB20DFC3F2923F8A9"><enum>(5)</enum><header>Rehearing and judicial review</header><text display-inline="yes-display-inline">The owner or operator of any distribution utility that believes that the Secretary has misapplied the methodology in the final rule in determining the amount and types of fossil fuel electricity delivered by such distribution utility may seek rehearing of such determination within 30 days of publication of the determination in the Federal Register. The Secretary shall decide such rehearing petitions within 30 days. The Secretary’s determinations following rehearing shall be final and subject to judicial review in the United States Court of Appeals for the District of Columbia.</text> </paragraph></subsection><subsection id="H54F5F357A8414A20BCADAD1DA9C89D0C"><enum>(g)</enum><header>Compliance with Corporation assessments</header><text>The Corporation may bring an action in the appropriate court of the United States to compel compliance with an assessment levied by the Corporation under this section. A successful action for compliance under this subsection may also require payment by the defendant of the costs incurred by the Corporation in bringing such action.</text> </subsection><subsection id="H6FA6C20FD2F545EFAA39640A0A9EFB38"><enum>(h)</enum><header>Midcourse review</header><text>Not later than 5 years following establishment of the Corporation, the Comptroller General of the United States shall prepare an analysis, and report to Congress, assessing the Corporation’s activities, including project selection and methods of disbursement of assessed fees, impacts on the prospects for commercialization of carbon capture and storage technologies, adequacy of funding, and administration of funds. The report shall also make such recommendations as may be appropriate in each of these areas. The Corporation shall reimburse the Government Accountability Office for the costs associated with performing this midcourse review.</text> </subsection><subsection id="HC9F8AEF28CB94585B1AE638445CEA388"><enum>(i)</enum><header>Recovery of costs</header> <paragraph id="H1E2C49F1F326414780725CF4ABDC88CA"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A distribution utility whose transmission, delivery, or sales of electric energy are subject to any form of rate regulation shall not be denied the opportunity to recover the full amount of the prudently incurred costs associated with complying with this section, consistent with applicable State or Federal law.</text> </paragraph><paragraph id="H46F5E849B62A445B96770F61D02D4D1C"><enum>(2)</enum><header>Ratepayer Rebates</header><text display-inline="yes-display-inline">Regulatory authorities that approve cost recovery pursuant to paragraph (1) may order rebates to ratepayers to the extent that distribution utilities are reimbursed undedicated or unassigned balances pursuant to subsection (d)(3).</text> </paragraph></subsection><subsection id="H7D8940EB4CC94854BED61D8BD8F6B436"><enum>(j)</enum><header>Technical Advisory Committee</header> <paragraph id="H7F25BD68A2E149B08329D346193464C9"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established an advisory committee, to be known as the <quote>Technical Advisory Committee</quote>.</text> </paragraph><paragraph id="HF82009F0FEB948DF8897785F5793C694"><enum>(2)</enum><header>Membership</header><text>The Technical Advisory Committee shall be comprised of not less than 7 members appointed by the Board from among academic institutions, national laboratories, independent research institutions, and other qualified institutions. No member of the Committee shall be affiliated with EPRI or with any organization having members serving on the Board. At least one member of the Committee shall be appointed from among officers or employees of the Department of Energy recommended to the Board by the Secretary of Energy.</text> </paragraph><paragraph id="H20B161F44F1243A6A180FD376570B381"><enum>(3)</enum><header>Chairperson and Vice Chairperson</header><text>The Board shall designate one member of the Technical Advisory Committee to serve as Chairperson of the Committee and one to serve as Vice Chairperson of the Committee.</text> </paragraph><paragraph id="H61E78D738A934963BE391ED947E318CA"><enum>(4)</enum><header>Compensation</header><text>The Board shall provide compensation to members of the Technical Advisory Committee for travel and other incidental expenses and such other compensation as the Board determines to be necessary.</text> </paragraph><paragraph id="H3461EE3FDD4F4823AF2EBC47772C9CC8"><enum>(5)</enum><header>Purpose</header><text>The Technical Advisory Committee shall provide independent assessments and technical evaluations, as well as make non-binding recommendations to the Board, concerning Corporation activities, including but not limited to the following:</text> <subparagraph id="H8AAE06CB0BA045898A86BBA0D9ED1BC3"><enum>(A)</enum><text display-inline="yes-display-inline">Reviewing and evaluating the Corporation’s plans and budgets described in subsection (c)(9), as well as any other appropriate areas, which could include approaches to prioritizing technologies, appropriateness of engineering techniques, monitoring and verification technologies for storage, geological site selection, and cost control measures.</text> </subparagraph><subparagraph id="H3CD650CBBBBC4221A47F769C3FCD0DF7"><enum>(B)</enum><text>Making annual non-binding recommendations to the Board concerning any of the matters referred to in subparagraph (A), as well as what types of investments, scientific research, or engineering practices would best further the goals of the Corporation.</text> </subparagraph></paragraph><paragraph id="H3991C125EE894882B8028C8CB621DAAA"><enum>(6)</enum><header>Public availability</header><text>All reports, evaluations, and other materials of the Technical Advisory Committee shall be made available to the public by the Board, without charge, at time of receipt by the Board.</text> </paragraph></subsection><subsection id="H6C9AD568ED46491097CDF13295B55927"><enum>(k)</enum><header>Lobbying restrictions</header><text>No funds collected by the Corporation shall be used in any manner for influencing legislation or elections, except that the Corporation may recommend to the Secretary and the Congress changes in this section or other statutes that would further the purposes of this section.</text> </subsection><subsection id="H71C79910566F47FF92954979A169EE39"><enum>(l)</enum><header>Davis-Bacon Compliance</header><text>The Corporation shall ensure that entities receiving grants, contracts, or other financial support from the Corporation for the project activities authorized by this section are in compliance with the Davis-Bacon Act (40 U.S.C. 276a–276a–5).</text> </subsection></section><section display-inline="no-display-inline" id="HC7782483F7424BEDAACBD53E99628CD6" section-type="subsequent-section"><enum>115.</enum><header>Commercial deployment of carbon capture and sequestration technologies</header><text display-inline="no-display-inline">Part H of title VII of the Clean Air Act (as added by section 321 of this Act) is amended by adding the following new section after section 785:</text> <quoted-block display-inline="no-display-inline" id="H1B277506233243DAA6F18F2C221F2A69" style="OLC"> <section id="HF9DF251CDA464C17A73C1DF4316AA23E"><enum>786.</enum><header>Commercial deployment of carbon capture and sequestration technologies</header> <subsection id="H5292DFD96B2D4AF8B180CA425CD8A171"><enum>(a)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations providing for the distribution of emission allowances allocated pursuant to section 782(f), pursuant to the requirements of this section, to support the commercial deployment of carbon capture and sequestration technologies in both electric power generation and industrial operations.</text> </subsection><subsection id="HDEEA5121B82E4006A6B1FFC0E7206CF1"><enum>(b)</enum><header>Eligibility criteria</header><text>For an owner or operator of a project to be eligible to receive emission allowances under this section, the project must—</text> <paragraph id="H99BE3B89D74F44339A94ECECF3ACFBCB"><enum>(1)</enum><text>implement carbon capture and sequestration technology—</text> <subparagraph id="HB522AB6AD78B44DA8A987A3A0AEDD55B"><enum>(A)</enum><text>at an electric generating unit that—</text> <clause id="HA79E344C3E16473D99E1164ABF135D4D"><enum>(i)</enum><text>has a nameplate capacity of 200 megawatts or more;</text> </clause><clause id="HBD6227169E704624A29B9BE94099499E"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a retrofit application, applies the carbon capture and sequestration technology to the flue gas from at least 200 megawatts of the total nameplate generating capacity of the unit, provided that clause (i) shall apply without exception;</text> </clause><clause id="H4388F9114A844850AECE6D3A19EC05E0"><enum>(iii)</enum><text>derives at least 50 percent of its annual fuel input from coal, petroleum coke, or any combination of these 2 fuels; and</text> </clause><clause id="HD6D6BBFAB210460B8ABFE34811FB2208"><enum>(iv)</enum><text>upon implementation of capture and sequestration technology, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by—</text> <subclause id="HAAF19EAAAA44455C9499B768EE8B2653"><enum>(I)</enum><text display-inline="yes-display-inline">the unit, measured on an annual basis, determined in accordance with section 812(b)(2); or</text> </subclause><subclause id="H57F8B8A9C4DA49F194EC06AA5D8FA5EE"><enum>(II)</enum><text>in the case of retrofit applications under clause (ii), the treated portion of flue gas from the unit, measured on an annual basis, determined in accordance with section 812(b)(2); or</text> </subclause></clause></subparagraph><subparagraph id="HEBB715CC481B40F281F7B5A3FAF6F68A"><enum>(B)</enum><text>at an industrial source that—</text> <clause id="H8E278ACEA5D640929CF006291158D671"><enum>(i)</enum><text>absent carbon capture and sequestration, would emit greater than 50,000 tons per year of carbon dioxide;</text> </clause><clause id="H905B1614BF1F42DFBA8F39A7F984D684"><enum>(ii)</enum><text display-inline="yes-display-inline">upon implementation, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the emission point, measured on an annual basis, determined in accordance with section 812(b)(2); and</text> </clause><clause id="HD6CBD1893999460BB5478EFA0B7BB3ED"><enum>(iii)</enum><text>does not produce a liquid transportation fuel from a solid fossil-based feedstock;</text> </clause></subparagraph></paragraph><paragraph id="HDE584B8B7C1C4D9285AEC2166B88E6A1"><enum>(2)</enum><text>geologically sequester carbon dioxide at a site that meets all applicable permitting and certification requirements for geologic sequestration, or, pursuant to such requirements as the Administrator may prescribe by regulation, convert captured carbon dioxide to a stable form that will safely and permanently sequester such carbon dioxide;</text> </paragraph><paragraph id="H514B481B4DB245868F782EB21040851C"><enum>(3)</enum><text>meet all other applicable State, tribal, and Federal permitting requirements; and</text> </paragraph><paragraph id="H7931AC528A1D4A0888ABDB0C3DD72E83"><enum>(4)</enum><text>be located in the United States.</text> </paragraph></subsection><subsection id="H2FD154C9D4EC43D7A0D68C76AC972CBA"><enum>(c)</enum><header>Phase I distribution to electric generating units</header> <paragraph id="H623EC6C8EA9D43EBA252FF8C0B7D95FA"><enum>(1)</enum><header>Application</header><text>This subsection shall apply only to projects at the first 6 gigawatts of electric generating units, measured in cumulative generating capacity of such units, that receive allowances under this section.</text> </paragraph><paragraph id="HE90444068C7D43B48C6AEC549DA33CD7"><enum>(2)</enum><header>Distribution</header><text>The Administrator shall distribute emission allowances allocated under section 782(f) to the owner or operator of each eligible project at an electric generating unit in a quantity equal to the quotient obtained by dividing—</text> <subparagraph id="HD0A57C3527004470AB1DCAC3B47EDD0B"><enum>(A)</enum><text>the product obtained by multiplying—</text> <clause id="HED08969F531341BC8D4F04EE4ED67670"><enum>(i)</enum><text>the number of metric tons of carbon dioxide emissions avoided through capture and sequestration of emissions by the project, as determined pursuant to such methodology as the Administrator shall prescribe by regulation; and</text> </clause><clause id="HE207A58243E844DD9D24739FC8D2BB40"><enum>(ii)</enum><text>a bonus allowance value, pursuant to paragraph (3); by</text> </clause></subparagraph><subparagraph id="HB170E9C2208A4EA381BEE880903855F2"><enum>(B)</enum><text>the average fair market value of an emission allowance during the preceding year.</text> </subparagraph></paragraph><paragraph id="H23033E46056B456BA8B0C27BD81488B4"><enum>(3)</enum><header>Bonus allowance values</header> <subparagraph id="H60D2FA252A754108B10AD2734E0595E2"><enum>(A)</enum><text>For a generating unit achieving the capture and sequestration of 85 percent or more of the carbon dioxide that otherwise would be emitted by such unit, the bonus allowance value shall be $90 per ton.</text> </subparagraph><subparagraph id="H002FDD2418EB4C56A195EAE0F8E0B4B2"><enum>(B)</enum><text>The Administrator shall by regulation establish a bonus allowance value for each rate of lower capture and sequestration achieved by a generating unit, from a minimum of $50 per ton for a 50 percent rate and varying directly with increasing rates of capture and sequestration up to $90 per ton for an 85 percent rate.</text> </subparagraph><subparagraph id="HDAEB6F657B8C467D83AEA990A8E2BED9"><enum>(C)</enum><text display-inline="yes-display-inline">For a generating unit that achieves the capture and sequestration of at least 50 percent of the carbon dioxide that otherwise would be emitted by such unit by not later than January 1, 2017, the otherwise applicable bonus allowance value under this paragraph shall be increased by $10, provided that the owner of such unit notifies the Administrator by not later than January 1, 2012, of its intent to achieve such rate of capture and sequestration.</text> </subparagraph><subparagraph id="HAC96696B69284BD0A6F6A39F691E1B3B"><enum>(D)</enum><text>For a carbon capture and sequestration project sequestering in a geological formation for purposes of enhanced hydrocarbon recovery, the Administrator shall, by regulation, reduce the applicable bonus allowance value under this paragraph to reflect the lower net cost of the project when compared to sequestration into geological formations solely for purposes of sequestration.</text> </subparagraph><subparagraph id="H3842ABCD1C754E81BE3ACE38CA88A14C"><enum>(E)</enum><text>The Administrator shall annually adjust for inflation the bonus allowance values established under this paragraph.</text> </subparagraph></paragraph></subsection><subsection id="H330ED4F6B2E1418D936BE197B928FF15"><enum>(d)</enum><header>Phase II distribution to electric generating units</header> <paragraph id="HAEA54CB98BA44BFC8F76AF0870DC04BE"><enum>(1)</enum><header>Application</header><text>This subsection shall apply only to the distribution of emission allowances for carbon capture and sequestration projects at electric generating units after the capacity threshold identified in subsection (c)(1) is reached.</text> </paragraph><paragraph id="HD58B8E271332469BA4DFA6E123D2D9D0"><enum>(2)</enum><header>Regulations</header><text>Not later than 2 years prior to the date on which the capacity threshold identified in subsection (c)(1) is projected to be reached, the Administrator shall promulgate regulations to govern the distribution of emission allowances to the owners or operators of eligible projects under this subsection.</text> </paragraph><paragraph id="H603988A9E8DE4D2F84286A1E892BBEDE"><enum>(3)</enum><header>Reverse auctions</header> <subparagraph id="H89DEB8A7651E47A3B74E25E9161287A0"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (4), the regulations promulgated under paragraph (2) shall provide for the distribution of emission allowances to the owners or operators of eligible projects under this subsection through reverse auctions, which shall be held no less frequently than once each calendar year. The Administrator may establish a separate auction for each of no more than 5 different project categories, defined on the basis of coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof. The Administrator may establish appropriate minimum rates of capture and sequestration in implementing this paragraph.</text> </subparagraph><subparagraph id="H3448210F29F6442CA3926BCA960DDBDA"><enum>(B)</enum><header>Auction process</header><text>At each reverse auction—</text> <clause id="H0D28E46A4C6D4EE9A64D5998D89F7DB8"><enum>(i)</enum><text>the Administrator shall solicit bids from eligible projects;</text> </clause><clause id="H6BABA665515D486597670B5FA6640CD3"><enum>(ii)</enum><text>eligible projects participating in the auction shall submit a bid including the desired level of carbon dioxide sequestration incentive per ton and the estimated quantity of carbon dioxide that the project will permanently sequester over 10 years; and</text> </clause><clause id="HF732ED511C1440788015D58611560FEA"><enum>(iii)</enum><text>the Administrator shall select bids, within each auction, for the sequestration amount submitted, beginning with the eligible project submitting the bid for the lowest level of sequestration incentive on a per ton basis and meeting such other requirements as the Administrator may specify, until the amount of funds available for the reverse auction is committed.</text> </clause></subparagraph><subparagraph id="HCFA2567867E14BC88770814DD6F9156B"><enum>(C)</enum><header>Form of distribution</header><text>The Administrator shall distribute emission allowances to the owners or operators of eligible projects selected through a reverse auction under this paragraph pursuant to a formula equivalent to that described in subsection (c)(2), except that the bonus allowance value that is bid by the entity shall be substituted for the bonus allowance values set forth in subsection (c)(3).</text> </subparagraph></paragraph><paragraph id="H084ED87456BA47E38990E365FC9F5E9E"><enum>(4)</enum><header>Alternative distribution method</header> <subparagraph id="H3E984D94D2E54607919DF64DBD3A001C"><enum>(A)</enum><header>In general</header><text>If the Administrator determines that reverse auctions would not provide for efficient and cost-effective commercial deployment of carbon capture and sequestration technologies, the Administrator may instead, through regulations promulgated under paragraph (2) or (5), prescribe a schedule for the award of bonus allowances to the owners or operators of eligible projects under this subsection, in accordance with the requirements of this paragraph.</text> </subparagraph><subparagraph id="HD03B07D0ACAB4234990869EA62EF15DB"><enum>(B)</enum><header>Multiple tranches</header><text>The Administrator shall divide emission allowances available for distribution to the owners or operators of eligible projects into a series of tranches, each supporting the deployment of a specified quantity of cumulative electric generating capacity utilizing carbon capture and sequestration technology, each of which shall not be greater than 6 gigawatts.</text> </subparagraph><subparagraph id="HA3CD5CF7C49E4B2880605A02EA1F8E39"><enum>(C)</enum><header>Method of distribution</header><text>The Administrator shall distribute emission allowances within each tranche, on a first-come, first-served basis—</text> <clause id="H8510C9A970F14D1F9E3165D14B674523"><enum>(i)</enum><text>based on the date of full-scale operation of capture and sequestration technology; and</text> </clause><clause id="H4770D3089E2346FAB3802B5997663FAA"><enum>(ii)</enum><text>pursuant to a formula, similar to that set forth in subsection (c)(2) (except that the Administrator shall prescribe bonus allowance values different than those set forth in subsection (c)(3)), establishing the number of allowances to be distributed per ton of carbon dioxide sequestered by the project.</text> </clause></subparagraph><subparagraph id="H55D0FE0E56E84123A5DB3E7E680D10D0"><enum>(D)</enum><header>Requirements</header><text>For each tranche established pursuant to subparagraph (B), the Administrator shall establish a schedule for distributing emission allowances that—</text> <clause id="HDD15E414FB304D25973208CC88B2C1AC"><enum>(i)</enum><text>is based on a sliding scale that provides higher bonus allowance values for projects achieving higher rates of capture and sequestration;</text> </clause><clause id="H8428C0C0D44A48BFB8A52775CB0D7B85"><enum>(ii)</enum><text>for each capture and sequestration rate, establishes a bonus allowance value that is lower than that established for such rate in the previous tranche (or, in the case of the first tranche, than that established for such rate under subsection (c)(3)); and</text> </clause><clause id="H43402B1C45A94548A4F64489428AB0C5"><enum>(iii)</enum><text>may establish different bonus allowance levels for no more than 5 different project categories, defined by coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof.</text> </clause></subparagraph><subparagraph id="H4553F98718244D3B8C8D0655E62ADF17"><enum>(E)</enum><header>Criteria for establishing bonus allowance values</header><text>In setting bonus allowance values under this paragraph, the Administrator shall seek to cover no more than the reasonable incremental capital and operating costs of a project that are attributable to implementation of carbon capture, transportation, and sequestration technologies, taking into account—</text> <clause id="H2958E58544674809B2AAB428C098EE1D"><enum>(i)</enum><text>the reduced cost of compliance with section 722 of this Act;</text> </clause><clause id="H840E183B488F492DAE539DE2B2BA53AF"><enum>(ii)</enum><text>the reduced cost associated with sequestering in a geological formation for purposes of enhanced hydrocarbon recovery when compared to sequestration into geological formations solely for purposes of sequestration;</text> </clause><clause id="H52B374824DCA439797E1C2B8F24AA538"><enum>(iii)</enum><text>the relevant factors defining the project category; and</text> </clause><clause id="HD626DF3705BB41D499D48B5528BAD7C8"><enum>(iv)</enum><text>such other factors as the Administrator determines are appropriate.</text> </clause></subparagraph></paragraph><paragraph id="H2045D75025054985A0EEC309C2B6DB3E"><enum>(5)</enum><header>Revision of regulations</header><text>The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years.</text> </paragraph></subsection><subsection id="H8CAB52466ABD4798BCE419A162460E47"><enum>(e)</enum><header>Limits for certain electric generating units</header> <paragraph id="H0C20E18DCD664925A919190965DA0840"><enum>(1)</enum><header>Definitions</header><text>For purposes of this subsection, the terms <quote>covered EGU</quote> and <quote>initially permitted</quote> shall have the meaning given those terms in section 812 of this Act.</text> </paragraph><paragraph id="H70471F77AC1645B2B357F4D683F83888"><enum>(2)</enum><header>Covered egus initially permitted from 2009 through 2014</header><text display-inline="yes-display-inline">For a covered EGU that is initially permitted on or after January 1, 2009, and before January 1, 2015, the Administrator shall reduce the quantity of emission allowances that the owner or operator of such covered EGU would otherwise be eligible to receive under this section as follows:</text> <subparagraph id="HB2774B2039EC402084ABD79C7B853E5E"><enum>(A)</enum><text display-inline="yes-display-inline">In the case of a unit commencing operation on or before January 1, 2019, if the date in clause (ii)(I) is earlier than the date in clause (ii)(II), by the product of—</text> <clause id="H84AC26EC327846E7A70F6762926B438C"><enum>(i)</enum><text>20 percent; and</text> </clause><clause id="HED4E2323D16E4D8FB1C9672905E2F5BB"><enum>(ii)</enum><text>the number of years, if any, that have elapsed between—</text> <subclause id="HA0226D1C39784438A6D805E0DE669946"><enum>(I)</enum><text>the earlier of January 1, 2020, or the date that is 5 years after the commencement of operation of such covered EGU; and</text> </subclause><subclause id="HBA6B46DEB85C466089E3C0E48971EB4E"><enum>(II)</enum><text>the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).</text> </subclause></clause></subparagraph><subparagraph id="H494656F4A7F04C548C1CB7D573873CDB"><enum>(B)</enum><text>In the case of a unit commencing operation after January 1, 2019, by the product of—</text> <clause id="H7800F89E95314781B2C93F395004B1CE"><enum>(i)</enum><text>20 percent; and</text> </clause><clause id="H966D7BAEEB404C60996B183CDB90638D"><enum>(ii)</enum><text>the number of years between—</text> <subclause id="HAD887C79DE2D44868EF9E0A680440A56"><enum>(I)</enum><text>the commencement of operation of such covered EGU; and</text> </subclause><subclause id="H5211A2EE3EDB48B6AFB95AADCD9B2E9D"><enum>(II)</enum><text>the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).</text> </subclause></clause></subparagraph></paragraph><paragraph id="HD07E5298FAD9487DAD3C4DF569A8ABBF"><enum>(3)</enum><header>Covered egus initially permitted from 2015 through 2019</header><text display-inline="yes-display-inline">The owner or operator of a covered EGU that is initially permitted on or after January 1, 2015, and before January 1, 2020, shall be ineligible to receive emission allowances pursuant to this section if such unit, upon commencement of operations (and thereafter), does not achieve and maintain an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).</text> </paragraph></subsection><subsection id="H729BDCD006274DB088947AD9DB9110C1"><enum>(f)</enum><header>Industrial sources</header> <paragraph id="HEFDD819469C14DCCA890836F2F77D108"><enum>(1)</enum><header>Allowances</header><text>The Administrator may distribute not more than 15 percent of the allowances allocated under section 782(f) for any vintage year to the owners or operators of eligible industrial sources to support the commercial-scale deployment of carbon capture and sequestration technologies at such sources.</text> </paragraph><paragraph id="H9BA5B9915C494E9C9F1015A6938AF7CE"><enum>(2)</enum><header>Distribution</header><text>The Administrator shall, by regulation, prescribe requirements for the distribution of emission allowances to the owners or operators of industrial sources under this subsection, based on a bonus allowance formula that awards allowances to qualifying projects on the basis of tons of carbon dioxide captured and permanently sequestered. The Administrator may provide for the distribution of emission allowances pursuant to—</text> <subparagraph id="HA81F9096BC084568BAA5147FECABF705"><enum>(A)</enum><text>a reverse auction method, similar to that described under subsection (d)(3), including the use of separate auctions for different project categories; or</text> </subparagraph><subparagraph id="H49707A90A4D24316B1325A465EFA3328"><enum>(B)</enum><text>an incentive schedule, similar to that described under subsection (d)(4), which shall ensure that incentives are set so as to satisfy the requirement described in subsection (d)(4)(E).</text> </subparagraph></paragraph><paragraph id="HE37D27AAB6D54D299FE6CB87F993D0ED"><enum>(3)</enum><header>Revision of regulations</header><text>The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years.</text> </paragraph></subsection><subsection id="HC9CAA9C1C8674221BBC63A2AD0122B2B"><enum>(g)</enum><header>Limitations</header><text display-inline="yes-display-inline">Allowances may be distributed under this section only for tons of carbon dioxide emissions that have already been captured and sequestered. A qualifying project may receive annual emission allowances under this section only for the first 10 years of operation. No greater than 72 gigawatts of total cumulative generating capacity (including industrial applications, measured by such equivalent metric as the Administrator may designate) may receive emission allowances under this section. Upon reaching the limit described in the preceding sentence, any emission allowances that are allocated for carbon capture and sequestration deployment under section 782(f) and are not yet obligated under this section shall be treated as allowances not designated for distribution for purposes of section 782(r).</text> </subsection><subsection id="HA2CA07275C7F4EE985EA9276BE044C46"><enum>(h)</enum><header>Exhaustion of account and annual roll-over of surplus allowances</header> <paragraph id="H44586F1FCC674AFBB4392DA19A1C521B"><enum>(1)</enum><text>In distributing emission allowances under this section, the Administrator shall ensure that qualifying projects receiving allowances receive distributions for 10 years.</text> </paragraph><paragraph id="H55BF68DFF5414E0D92153970039123C5"><enum>(2)</enum><text>If the Administrator determines that the emission allowances allocated under section 782(f) with a vintage year that matches the year of distribution will be exhausted once the estimated full 10-year distributions will be provided to current eligible participants, the Administrator shall provide to new eligible projects allowances from vintage years after the year of the distribution.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H90C874E7B3314DF695E32C8E2EA9D2A4"><enum>(i)</enum><header>Retrofit applications</header><paragraph commented="no" display-inline="yes-display-inline" id="H87C67547D09A4292AECEAE0A407215F4"><enum>(1)</enum><text>In calculating bonus allowance values for retrofit applications eligible under subsection (b)(1)(A)(ii) and (iv)(II), the Administrator shall apply the required capture rates with respect to the treated portion of flue gas from the unit.</text> </paragraph><paragraph id="H00C96BFC11D048F9A12D6610159B2B28" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">No additional projects shall be eligible for allowances under subsection (b)(1)(A)(ii) and (iv)(II) as of such time as the Administrator reports, pursuant to section 812(d), that carbon capture and sequestration retrofit projects at electric generating units that are eligible for allowances under this section have been applied, in the aggregate, to the flue gas generated by 1 gigawatt of total cumulative generating capacity. The limitation in the preceding sentence shall not apply to projects that meet the eligibility criteria in subsection (b)(1)(A)(iv)(I).</text> </paragraph></subsection><subsection id="H1762289BED3948B29D617C3A0D9A4C48"><enum>(j)</enum><header>Davis-Bacon Compliance</header><text display-inline="yes-display-inline">All laborers and mechanics employed on projects funded directly by or assisted in whole or in part by this section through the use of emission allowances shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV, chapter 31, part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and <external-xref legal-doc="usc" parsable-cite="usc/40/3145">section 3145</external-xref> of title 40, United States Code.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H0C20D866F5D44AE0AAFB828FD3337640"><enum>116.</enum><header>Performance standards for coal-fueled power plants</header> <subsection id="HF2EB102C06BF4102B0A7BEA196DEE8A3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title VIII of the Clean Air Act (as added by section 331 of this Act) is amended by adding the following new section after section 811:</text> <quoted-block display-inline="no-display-inline" id="HF6F278F5001747438638A5FF31CDE7E5" style="OLC"> <section id="H0D9B1F07DF0A45058555B7A7AE1015EF"><enum>812.</enum><header>Performance standards for new coal-fired power plants</header> <subsection id="HA246DE2183F74411BA1585E690B34D57"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H20C3613691554557B1093882D8EEA68A"><enum>(1)</enum><header>Covered EGU</header><text display-inline="yes-display-inline">The term ‘covered EGU’ means a utility unit that is required to have a permit under section 503(a) and is authorized under state or federal law to derive at least 30 percent of its annual heat input from coal, petroleum coke, or any combination of these fuels.</text> </paragraph><paragraph id="H92CF95D2D6554860938A64233172046C"><enum>(2)</enum><header>Initially permitted</header><text display-inline="yes-display-inline">The term ‘initially permitted’ means that the owner or operator has received a Clean Air Act preconstruction approval or permit, for the covered EGU as a new (not a modified) source, but administrative review or appeal of such approval or permit has not been exhausted. A subsequent modification of any such approval or permits, ongoing administrative or court review, appeals, or challenges, or the existence or tolling of any time to pursue further review, appeals, or challenges shall not affect the date on which a covered EGU is considered to be initially permitted under this paragraph.</text> </paragraph></subsection><subsection id="HC9659E11591A4527B16FEF715A8EDE93"><enum>(b)</enum><header>Standards</header><paragraph commented="no" display-inline="yes-display-inline" id="H1F40067A2C99410F9EC5DF45EC23D34B"><enum>(1)</enum><text display-inline="yes-display-inline">A covered EGU that is initially permitted on or after January 1, 2020, shall achieve an emission limit that is a 65 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis, or meet such more stringent standard as the Administrator may establish pursuant to subsection (c).</text> </paragraph><paragraph id="H50A12C942A3349708D0077FB0B9E3539" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">A covered EGU that is initially permitted after January 1, 2009, and before January 1, 2020, shall, by the applicable compliance date established under this paragraph, achieve an emission limit that is a 50 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis. Compliance with the requirement set forth in this paragraph shall be required by the earliest of the following:</text> <subparagraph id="H736959C62CAB4AA8A8DDEB0DAE754371"><enum>(A)</enum><text>Four years after the date the Administrator has published pursuant to subsection (d) a report that there are in commercial operation in the United States electric generating units or other stationary sources equipped with carbon capture and sequestration technology that, in the aggregate—</text> <clause id="HDCF0B7BB5BBD4E73958B740023E13BD3"><enum>(i)</enum><text>have a total of at least 4 gigawatts of nameplate generating capacity of which—</text> <subclause id="HE33C856A997249C5BC4D3962DF49D80C"><enum>(I)</enum><text display-inline="yes-display-inline">at least 3 gigawatts must be electric generating units; and</text> </subclause><subclause id="H99DB6EC115EE485D9ECB31ABB5D3D1E9"><enum>(II)</enum><text display-inline="yes-display-inline">up to 1 gigawatt may be industrial applications, for which capture and sequestration of 3 million tons of carbon dioxide per year on an aggregate annualized basis shall be considered equivalent to 1 gigawatt;</text> </subclause></clause><clause id="H40CBE376846843EABE36A0D4AAD33328"><enum>(ii)</enum><text display-inline="yes-display-inline">include at least 2 electric generating units, each with a nameplate generating capacity of 250 megawatts or greater, that capture, inject, and sequester carbon dioxide into geologic formations other than oil and gas fields; and</text> </clause><clause id="H1058F207DE7348CC80FD551A28BCD877"><enum>(iii)</enum><text>are capturing and sequestering in the aggregate at least 12 million tons of carbon dioxide per year, calculated on an aggregate annualized basis.</text> </clause></subparagraph><subparagraph id="HDC6037A693894EE0AE49AD85CC1504E1"><enum>(B)</enum><text display-inline="yes-display-inline">January 1, 2025.</text> </subparagraph></paragraph><paragraph id="HB4F72234973F4E309A954E1D300A465C" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">If the deadline for compliance with paragraph (2) is January 1, 2025, the Administrator may extend the deadline for compliance by a covered EGU by up to 18 months if the Administrator makes a determination, based on a showing by the owner or operator of the unit, that it will be technically infeasible for the unit to meet the standard by the deadline. The owner or operator must submit a request for such an extension by no later than January 1, 2022, and the Administrator shall provide for public notice and comment on the extension request.</text> </paragraph></subsection><subsection id="H442F17C6EBC949EEAFEDC8BC508EF11D"><enum>(c)</enum><header>Review and revision of standards</header><text display-inline="yes-display-inline">Not later than 2025 and at 5-year intervals thereafter, the Administrator shall review the standards for new covered EGUs under this section and shall, by rule, reduce the maximum carbon dioxide emission rate for new covered EGUs to a rate which reflects the degree of emission limitation achievable through the application of the best system of emission reduction which (taking into account the cost of achieving such reduction and any nonair quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated.</text> </subsection><subsection id="H88CC192FC3E7412CAB2250C1AF0A82A4"><enum>(d)</enum><header> Reports</header><text display-inline="yes-display-inline">Not later than the date 18 months after the date of enactment of this title and semiannually thereafter, the Administrator shall publish a report on the nameplate capacity of units (determined pursuant to subsection (b)(2)(A)) in commercial operation in the United States equipped with carbon capture and sequestration technology, including the information described in subsection (b)(2)(A) (including the cumulative generating capacity to which carbon capture and sequestration retrofit projects meeting the criteria described in section 786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied and the quantities of carbon dioxide captured and sequestered by such projects).</text> </subsection><subsection id="HCFD48EA63E56478BBE9E4E93C92DC0C7"><enum>(e)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to carry out the requirements of this section.</text> </subsection></section><after-quoted-block>. </after-quoted-block></quoted-block> </subsection></section></subtitle><subtitle id="H0C34F701FFA54AFB8A202ADFDA658693"><enum>C</enum><header>Clean Transportation</header> <section id="H5A05091D0EB44922874877143DA5C6FD"><enum>121.</enum><header>Electric vehicle infrastructure</header> <subsection id="H06DA6CA47B7546A8BCC2FF867856DF30"><enum>(a)</enum><header>Amendment of PURPA</header><text display-inline="yes-display-inline">Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2621">16 U.S.C. 2621(d)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HAC842D58225E466DB814A024AED3968D" style="OLC"> <paragraph id="H5B0BE99D38D343859B3FD8B04B7451E9"><enum>(20)</enum><header>Plug-in electric drive vehicle infrastructure</header> <subparagraph id="H32951B500F3D4BCAA6F085EF39CB39BE"><enum>(A)</enum><header>Utility plan for infrastructure</header><text display-inline="yes-display-inline">Each electric utility shall develop a plan to support the use of plug-in electric drive vehicles, including heavy-duty hybrid electric vehicles. The plan may provide for deployment of electrical charging stations in public or private locations, including street parking, parking garages, parking lots, homes, gas stations, and highway rest stops. Any such plan may also include—</text> <clause id="H1F3DFF3887954A90B82A500847E2A0D3"><enum>(i)</enum><text display-inline="yes-display-inline">battery exchange, fast charging infrastructure and other services;</text> </clause><clause id="HD4DFDDD36BF74B97AFDC2C694043012B"><enum>(ii)</enum><text display-inline="yes-display-inline">triggers for infrastructure deployment based upon market penetration of plug-in electric drive vehicles; and</text> </clause><clause id="HDBECFA21D1C345A7BE08B819511814A2"><enum>(iii)</enum><text>such other elements as the State determines necessary to support plug-in electric drive vehicles.</text> </clause><continuation-text continuation-text-level="subparagraph">Each plan under this paragraph shall provide for the deployment of the charging infrastructure or other infrastructure necessary to adequately support the use of plug-in electric drive vehicles.</continuation-text></subparagraph><subparagraph id="HB57626AF4C2643BD986A0A653B6FBB27"><enum>(B)</enum><header>Support requirements</header><text display-inline="yes-display-inline">Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall—</text> <clause id="H8DB0795CF42A47E1A14B5FF2559D8BFE"><enum>(i)</enum><text>require that charging infrastructure deployed is interoperable with products of all auto manufacturers to the extent possible; and</text> </clause><clause id="HCE7F43678F1247CABF7A5CE3B9A21A2C"><enum>(ii)</enum><text>consider adopting minimum requirements for deployment of electrical charging infrastructure and other appropriate requirements necessary to support the use of plug-in electric drive vehicles.</text> </clause></subparagraph><subparagraph id="H8F2FA3D4EB164081A39AC2FFEE2D66E0"><enum>(C)</enum><header>Cost recovery</header><text>Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall consider whether, and to what extent, to allow cost recovery for plans and implementation of plans.</text> </subparagraph><subparagraph id="HE7363A96F01E4676B41A102156D4B1A8"><enum>(D)</enum><header>Smart Grid integration</header><text display-inline="yes-display-inline">The State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall, in accordance with regulations issued by the Federal Energy Regulatory Commission pursuant to section 1305(d) of the Energy Independence and Security Act of 2007—</text> <clause id="H406384465690464F8BD1ADBD81DC432E"><enum>(i)</enum><text display-inline="yes-display-inline">establish any appropriate protocols and standards for integrating plug-in electric drive vehicles into an electrical distribution system, including Smart Grid systems and devices as described in title XIII of the Energy Independence and Security Act of 2007;</text> </clause><clause id="HE296994024FE4E41884A97DB9835BEB6"><enum>(ii)</enum><text display-inline="yes-display-inline">include, to the extent feasible, the ability for each plug-in electric drive vehicle to be identified individually and to be associated with its owner’s electric utility account, regardless of the location that the vehicle is plugged in, for purposes of appropriate billing for any electricity required to charge the vehicle’s batteries as well as any crediting for electricity provided to the electric utility from the vehicle’s batteries; and</text> </clause><clause id="HF9E791DFB6664643A8D15EAB76842F27"><enum>(iii)</enum><text display-inline="yes-display-inline">review the determination made in response to section 1252 of the Energy Policy Act of 2005 in light of this section, including whether time-of-use pricing should be employed to enable the use of plug-in electric drive vehicles to contribute to meeting peak-load and ancillary service power needs.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="HA2117EFE38AC436E89F6B30588963FA7"><enum>(b)</enum><header>Compliance</header> <paragraph id="H116D99353F354902BAA3CDD115C413D9"><enum>(1)</enum><header>Time limitations</header><text>Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(b)</external-xref>) is amended by adding the following at the end thereof:</text> <quoted-block display-inline="no-display-inline" id="H4550D998216741378310B40B12219572" style="OLC"> <paragraph id="HDF1C4CB4A13F4313BB47F3F731860D66" indent="up1"><enum>(7)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H24E39E95529E49EDA36129D13AE6C793"><enum>(A)</enum><text>Not later than 3 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (20) of section 111(d).</text> </subparagraph><subparagraph id="HCDC65746C3CC4DE59443D230C92B5360" indent="up1"><enum>(B)</enum><text>Not later than 4 years after the date of enactment of the this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to the standard established by paragraph (20) of section 111(d).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H6AFBA521C417415096980417C451A87E"><enum>(2)</enum><header>Failure to comply</header><text>Section 112(c) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(c)</external-xref>) is amended by adding the following at the end: <quote>In the case of the standards established by paragraph (20) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraph.</quote>.</text> </paragraph><paragraph id="H49AF359E1746406990E91404669895E2"><enum>(3)</enum><header>Prior State actions</header><text>Section 112(d) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(d)</external-xref>) is amended by striking <quote>(19)</quote> and inserting <quote>(20)</quote> before <quote>of section 111(d)</quote>.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H1E569241084C47B18CC0779ED489127C" section-type="subsequent-section"><enum>122.</enum><header>Large-scale vehicle electrification program</header> <subsection id="H442951A605FF4A2C8CA72DAF71C98048"><enum>(a)</enum><header>Deployment Program</header><text>The Secretary of Energy shall establish a program to deploy and integrate plug-in electric drive vehicles into the electricity grid in multiple regions. In carrying out the program, the Secretary may provide financial assistance described under subsection (d), consistent with the goals under subsection (b). The Secretary shall select regions based upon applications for assistance received pursuant to subsection (c).</text> </subsection><subsection id="H581D6DB8A0CA44A796FF8CECA4A52BF6"><enum>(b)</enum><header>Goals</header><text display-inline="yes-display-inline">The goals of the program established pursuant to subsection (a) shall be—</text> <paragraph id="H656DAB14C3FB4D449A2809280DB08CB6"><enum>(1)</enum><text>to demonstrate the viability of a vehicle-based transportation system that is not overly dependent on petroleum as a fuel and contributes to lower carbon emissions than a system based on conventional vehicles;</text> </paragraph><paragraph id="H0960EBEEBF8C4DAF896C00E4A4118F63"><enum>(2)</enum><text>to facilitate the integration of advanced vehicle technologies into electricity distribution areas to improve system performance and reliability;</text> </paragraph><paragraph id="HCC4224D244C3411AB041EA1AF9AA1724"><enum>(3)</enum><text>to demonstrate the potential benefits of coordinated investments in vehicle electrification on personal mobility and a regional grid;</text> </paragraph><paragraph id="H217F3BFC24C64F8E975A8BEFEAC931B1"><enum>(4)</enum><text>to demonstrate protocols and standards that facilitate vehicle integration into the grid; and</text> </paragraph><paragraph id="H85ACB5D7FE664227955E9D563A33AD61"><enum>(5)</enum><text>to investigate differences in each region and regulatory environment regarding best practices in implementing vehicle electrification.</text> </paragraph></subsection><subsection id="H35AF5481E47A41C2AD818EFEA4512318"><enum>(c)</enum><header>Applications</header><text display-inline="yes-display-inline">Any State, Indian tribe, or local government (or group of State, Indian tribe, or local governments) may apply to the Secretary of Energy for financial assistance in furthering the regional deployment and integration into the electricity grid of plug-in electric drive vehicles. Such applications may be jointly sponsored by electric utilities, automobile manufacturers, technology providers, car sharing companies or organizations, or other persons or entities.</text> </subsection><subsection id="HCBAE57F7A7E642DFB07CD5A9AB0E2965"><enum>(d)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Pursuant to applications received under subsection (c), the Secretary may make financial assistance available to any applicant or joint sponsor of the application to be used for any of the following:</text> <paragraph id="H25B579B1A498480AADE4FBAD6107476C"><enum>(1)</enum><text>Assisting persons located in the regional deployment area, including fleet owners, in the purchase of new plug-in electric drive vehicles by offsetting in whole or in part the incremental cost of such vehicles above the cost of comparable conventionally fueled vehicles.</text> </paragraph><paragraph id="H23AF103FCFAE43A1A62CD34396BFF34C"><enum>(2)</enum><text>Supporting the use of plug-in electric drive vehicles by funding projects for the deployment of any of the following:</text> <subparagraph id="HE50107F48AEC46F1A7FEA6659216BED6"><enum>(A)</enum><text display-inline="yes-display-inline">Electrical charging infrastructure for plug-in electric drive vehicles, including battery exchange, fast charging infrastructure, and other services, in public or private locations, including street parking, parking garages, parking lots, homes, gas stations, and highway rest stops.</text> </subparagraph><subparagraph id="H000FE810CA254922BFC5033AC7B92A28"><enum>(B)</enum><text display-inline="yes-display-inline">Smart Grid equipment and infrastructure, as described in title XIII of the Energy Independence and Security Act of 2007, to facilitate the charging and integration of plug-in electric drive vehicles.</text> </subparagraph></paragraph><paragraph id="H18016CBF4B934FA5AE0A127F05DD4822"><enum>(3)</enum><text>Such other projects as the Secretary determines appropriate to support the large-scale deployment of plug-in electric drive vehicles in regional deployment areas.</text> </paragraph></subsection><subsection id="HDFC8073A11334045BB92585F53554249"><enum>(e)</enum><header>Program Requirements</header><text display-inline="yes-display-inline">The Secretary, in consultation with the Administrator and the Secretary of Transportation, shall determine design elements and requirements of the program established pursuant to subsection (a), including—</text> <paragraph id="HE045B0A326B44576B237AA56212EA5A6"><enum>(1)</enum><text>the type of financial mechanism with which to provide financial assistance;</text> </paragraph><paragraph id="H11B9D08F36C94E5BA2FB2BF2B2FCF1D8"><enum>(2)</enum><text display-inline="yes-display-inline">criteria for evaluating applications submitted under subsection (c), including the anticipated ability to promote deployment and market penetration of vehicles that are less dependent on petroleum as a fuel source; and</text> </paragraph><paragraph id="H1D213ECDF16147D091CD128CFD945E46"><enum>(3)</enum><text>reporting requirements for entities that receive financial assistance under this section, including a comprehensive set of performance data characterizing the results of the deployment program.</text> </paragraph></subsection><subsection id="HE54655EC5ADC429989D275038EE57050"><enum>(f)</enum><header>Information Clearinghouse</header><text display-inline="yes-display-inline">The Secretary shall, as part of the program established pursuant to subsection (a), collect and make available to the public information regarding the cost, performance, and other technical data regarding the deployment and integration of plug-in electric drive vehicles.</text> </subsection><subsection id="H3BD3F3A1068D431C8D55E2E2E3FB9C4F"><enum>(g)</enum><header>Authorization</header><text>There are authorized to be appropriated to carry out this section such sums as may be necessary.</text> </subsection></section><section display-inline="no-display-inline" id="H0D59ED21E59F443BBCE327C9CF0B1EBB" section-type="subsequent-section"><enum>123.</enum><header>Plug-in electric drive vehicle manufacturing</header> <subsection id="H5012E02D9F934CDA8788876FBDEDFCE4"><enum>(a)</enum><header>Vehicle manufacturing assistance program</header><text display-inline="yes-display-inline">The Secretary of Energy shall establish a program to provide financial assistance to automobile manufacturers to facilitate the manufacture of plug-in electric drive vehicles, as defined in section 131(a)(5) of the Energy Independence and Security Act of 2007, that are developed and produced in the United States.</text> </subsection><subsection id="H650F085C412D4036A27E943E7B1A50A7"><enum>(b)</enum><header>Financial assistance</header><text display-inline="yes-display-inline">The Secretary of Energy may provide financial assistance to an automobile manufacturer under the program established pursuant to subsection (a) for the reconstruction or retooling of facilities for the manufacture of plug-in electric drive vehicles or batteries for such vehicles that are developed and produced in the United States.</text> </subsection><subsection id="H944C242873CC4115B1BD77C3FCE65EDF"><enum>(c)</enum><header>Coordination with regional deployment</header><text>The Secretary may provide financial assistance under subsection (b) in conjunction with the award of financial assistance under the large scale vehicle electrification program established pursuant to section 122 of this Act.</text> </subsection><subsection display-inline="no-display-inline" id="HDFE5E4CA08EB4694A969A11F3BA08B0B"><enum>(d)</enum><header>Program Requirements</header><text display-inline="yes-display-inline">The Secretary shall determine design elements and requirements of the program established pursuant to subsection (a), including—</text> <paragraph id="HE890500619AF4B38AE395327C26198C2"><enum>(1)</enum><text>the type of financial mechanism with which to provide financial assistance;</text> </paragraph><paragraph id="HF32F3BA2116E4AD0A1C2F5C93BA232DD"><enum>(2)</enum><text>criteria, in addition to the criteria described under subsection (e), for evaluating applications for financial assistance; and</text> </paragraph><paragraph id="H1C0DB4D9ABE845F0B1B89BD218D693DB"><enum>(3)</enum><text>reporting requirements for automobile manufacturers that receive financial assistance under this section.</text> </paragraph></subsection><subsection id="H9CEBA8ADBE1640EDAC62D37FB19638D7"><enum>(e)</enum><header>Criteria</header><text>In selecting recipients of financial assistance from among applicant automobile manufacturers, the Secretary shall give preference to proposals that—</text> <paragraph id="HB65158FEFE95460DB51D16F37F55E23D"><enum>(1)</enum><text>are most likely to be successful; and</text> </paragraph><paragraph id="HD578DC67E2824F7A9D67901C3DA0221C"><enum>(2)</enum><text>are located in local markets that have the greatest need for the facility.</text> </paragraph></subsection><subsection id="H22B7972E5E3A4F4EBD74BD8E593BC372"><enum>(f)</enum><header>Reports</header><text>The Secretary shall annually submit to Congress a report on the program established pursuant to this section.</text> </subsection><subsection id="H34572E0B5E5D4C2084C02859D5F91901"><enum>(g)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this section.</text> </subsection></section><section id="HBEA0A0C71C0C4352926C2F1AC2363927"><enum>124.</enum><header>Investment in clean vehicles</header> <subsection id="H957FA323D88C4D6CA91C31DAC0A5CB8D"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H881E924DA3774762B89E1D298D0CD253"><enum>(1)</enum><header>Advanced technology vehicles and qualifying components</header><text>The terms <quote>advanced technology vehicles</quote> and <quote>qualifying components</quote> shall have the definition of such terms in section 136 of the Energy Independence and Security Act of 2007, except that for purposes of this section, the average base year as described in such section 136(a)(1)(C) shall be the following:</text> <subparagraph id="HE01A4AD04E1B49419CE2F85B755CF7B3"><enum>(A)</enum><text>In each of the years 2012 through 2016, model year 2009.</text> </subparagraph><subparagraph id="H07BD1CFDC263489B92D1B34386A8A2B8"><enum>(B)</enum><text>In 2017, the Administrator shall, notwithstanding such section 136(a)(1)(C), determine an appropriate baseline based on technological and economic feasibility.</text> </subparagraph></paragraph><paragraph id="H2DAC453C79C64E069C0A85C6EB1A9DAB"><enum>(2)</enum><header>Plug-in electric drive vehicle</header><text>The term <quote>plug-in electric drive vehicle</quote> shall have the definition of such term in section 131 of the Energy Independence and Security Act of 2007.</text> </paragraph></subsection><subsection id="H7402310D2EB442618EE38E053F0AAE6A"><enum>(b)</enum><header>Distribution of allowances</header><text>The Administrator shall, in accordance with this section, distribute emission allowances allocated pursuant to section 782(i) of the Clean Air Act not later than September 30 of 2012 and each calendar year thereafter through 2025.</text> </subsection><subsection id="H7E8E12B06FB1432B9414A90526FF9D69"><enum>(c)</enum><header>Plug-in electric drive vehicle manufacturing and deployment</header> <paragraph id="HE4C815E4BF0D4EF0A452DA24ED1A1A85"><enum>(1)</enum><header>In general</header><text>The Administrator shall, at the direction of the Secretary of Energy, provide emission allowances allocated pursuant to section 782(i) to applicants, joint sponsors and automobile manufacturers pursuant to sections 122 and 123 of this Act.</text> </paragraph><paragraph id="HAD3232A0F7EE46C8A9C0804C8B98D2B7"><enum>(2)</enum><header>Annual amount</header><text>In each of the years 2012 through 2017, one-quarter of the portion of the emission allowances allocated pursuant to section 782(i) of the Clean Air Act shall be available to carry out paragraph (1) such that—</text> <subparagraph id="H6087A4502FAC4094AC1366980A5C661F"><enum>(A)</enum><text>one-eighth of the portion shall be available to carry out section 122; and</text> </subparagraph><subparagraph id="H29A7B2A0B8D1485986109C9E7FF430D9"><enum>(B)</enum><text>one-eighth of the portion shall be available to carry out section 123.</text> </subparagraph></paragraph><paragraph id="H4586FE5468D04A69B778A528C190D5FF"><enum>(3)</enum><header>Preference</header><text>In directing the provision of emission allowances under this subsection to carry out section 122, the Secretary shall give preference to applications under section 122(c) that are jointly sponsored by one or more automobile manufacturers.</text> </paragraph><paragraph id="H3CD7D8A70F404CD9AE1EF2A7A24D525C"><enum>(4)</enum><header>Multi-year commitments</header><text>The Administrator shall commit to providing emission allowances to an applicant, joint sponsor, or automobile manufacturer for up to five consecutive years if—</text> <subparagraph id="HF05639E6C6D1497D80A088CDBF99CFB3"><enum>(A)</enum><text>an application under section 122 or 123 of this Act requests a multi-year commitment;</text> </subparagraph><subparagraph id="H67D89FC2ADF74C3BBE09A227A461D5AA"><enum>(B)</enum><text>such application meets the criteria for support established by the Secretary of Energy under section 122 or 123 of this Act;</text> </subparagraph><subparagraph id="HCA6808962CDB44DEB0458C3A8A6A8F82"><enum>(C)</enum><text>the Administrator confirms to the Secretary that emission allowances will be available for a multi-year commitment;</text> </subparagraph><subparagraph id="H4892D6F1D03E4BA694CB8F11810D64C1"><enum>(D)</enum><text>the Secretary of Energy determines that a multi-year commitment for such application will advance the goals of section 122 or 123; and</text> </subparagraph><subparagraph id="HF8CC8A89E0E642FA926D53FFB94A18EF"><enum>(E)</enum><text>the Secretary of Energy directs the Administrator to make a multi-year commitment.</text> </subparagraph></paragraph><paragraph id="HD3EF0F48CA5348EFB5EFF7B94FDF856C"><enum>(5)</enum><header>Insufficient applications</header><text>If, in any year, emission allowances available under paragraph (2) cannot be provided because of insufficient numbers of submitted applications that meet the criteria for support established by the Secretary of Energy under section 122 or 123 of this Act, the remaining emission allowances shall be distributed according to subsection (d).</text> </paragraph></subsection><subsection id="H0CED49E7E9BF4589B1F626B0BC9524C6"><enum>(d)</enum><header>Advanced technology vehicles</header> <paragraph id="HEEB8839F751B43B38DA91262C7824844"><enum>(1)</enum><header>In general</header><text>The Administrator shall, at the direction of the Secretary of Energy, provide any emission allowances allocated pursuant to section 782(i) of the Clean Air Act that are not provided under subsection (c) to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of—</text> <subparagraph id="H164FF06BB5784704888292F69D8B7FD4"><enum>(A)</enum><text>reequipping, expanding, or establishing a manufacturing facility in the United States to produce—</text> <clause id="H024D5DBD7178428BA463A38C60F57011"><enum>(i)</enum><text>qualifying advanced technology vehicles; or</text> </clause><clause id="HD11EC9C0E653468895B8F71A0E625808"><enum>(ii)</enum><text>qualifying components; and</text> </clause></subparagraph><subparagraph id="H6FB088EDC3F741DBBBA968D14A314838"><enum>(B)</enum><text>engineering integration performed in the United States of qualifying vehicles and qualifying components.</text> </subparagraph></paragraph><paragraph id="H9A46A56F227C47118CFB9A19F1AC8371"><enum>(2)</enum><header>Preference</header><text>In directing the provision of emission allowances under this subsection during the years 2012 through 2017, the Secretary shall give preference to applications for projects that save the maximum number of gallons of fuel.</text> </paragraph></subsection></section><section id="H7EB4065394434DB0AA8FF8014F58F1A8"><enum>125.</enum><header>Advanced technology vehicle manufacturing incentive loans</header><text display-inline="no-display-inline">Section 136(d)(1) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17013">42 U.S.C. 17013(d)(1)</external-xref>) is amended by striking <quote>$25,000,000,000</quote> and inserting <quote>$50,000,000,000</quote>.</text> </section><section display-inline="no-display-inline" id="HA5BA8717E7754EDB8E1D5516BA52EB3E"><enum>126.</enum><header>Definition of renewable biomass</header> <subsection id="HB9EA741162E14881877D82701A1D101A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 211(o)(1)(I) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(I)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H371C83F6809849AF81DF32769438563B" style="OLC"> <subparagraph id="HB7F841DCC15F400C81DDBE6F888452F2"><enum>(I)</enum><header>Renewable biomass</header><text display-inline="yes-display-inline">The term <quote>renewable biomass</quote> means any of the following:</text> <clause id="HD89E95D77400454897AA7B5B9056448F"><enum>(i)</enum><text>Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are—</text> <subclause id="H9D0244065A78454BB9E531E419B00E8C"><enum>(I)</enum><text display-inline="yes-display-inline">not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth stands, late-successional stands (except for dead, severely damaged, or badly infested trees), components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;</text> </subclause><subclause id="H95281DC0C5A64B9294BDA07514DE8055"><enum>(II)</enum><text>harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and</text> </subclause><subclause id="H48C0E65E134A4EC8A87EE61D32DE5283"><enum>(III)</enum><text>harvested in accordance with Federal and State law, and applicable land management plans.</text> </subclause></clause><clause id="H9BA2B0DFAFC54A0D9692CEFE9E6643B6"><enum>(ii)</enum><text>Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including—</text> <subclause id="HCDCE98F192634E46A40E0A50E8F1418C"><enum>(I)</enum><text>renewable plant material, including—</text> <item id="H65F16CA8E73B4A22BB3E870D558EE808"><enum>(aa)</enum><text>feed grains;</text> </item><item id="H18C3C3800AFD443BABC70BAA8EF7069B"><enum>(bb)</enum><text>other agricultural commodities;</text> </item><item id="H5408423427F74328A23F0F8D0FF79583"><enum>(cc)</enum><text>other plants and trees; and</text> </item><item id="HA55EC3F49D0F4554B09BB560C3854D0C"><enum>(dd)</enum><text>algae; and</text> </item></subclause><subclause id="H55FEB415A9FD4AFD84A48BB3CFA5AF43"><enum>(II)</enum><text>waste material, including—</text> <item id="H286209B78CD2482AA02A7FE478DA2FC5"><enum>(aa)</enum><text>crop residue;</text> </item><item id="H47BA361C88BE4AAE84B50BA53A376AEF"><enum>(bb)</enum><text>other vegetative waste material (including wood waste and wood residues);</text> </item><item id="HD2778A88E6A048A396D935B3D8C460C3"><enum>(cc)</enum><text>animal waste and byproducts (including fats, oils, greases, and manure);</text> </item><item id="H3E7CF459AF1A4119B131C9616E0F7804"><enum>(dd)</enum><text>construction waste;</text> </item><item id="HF07F6E2AEB734530B471FC1D702957CC"><enum>(ee)</enum><text>food waste and yard waste; and</text> </item><item id="H6F872ACE08514B2598EF3F59CBB2EEE1"><enum>(ff)</enum><text>the non-fossil biogenic portion of municipal solid waste and construction, demolition, and disaster debris.</text> </item></subclause></clause><clause id="H7D3A3B596E0B447FB5125DBD589315E3"><enum>(iii)</enum><text>Residues and byproducts from wood, pulp, or paper products facilities.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H3A074428A7A04307AE1D6D9F7A3F89C0"><enum>(b)</enum><header>Reduction</header><text display-inline="yes-display-inline">The last sentence of section 211(o)(7)(D) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(7)(D)</external-xref>) is amended to read as follows: <quote>For any calendar year in which the Administrator makes such a reduction, the Administrator shall also reduce the applicable volume of renewable fuel and advanced biofuels requirement established under paragraph (2)(B) by the same volume.</quote>.</text> </subsection></section><section id="H6389863763414AD7B7B6D600193DA064"><enum>127.</enum><header>Open fuel standard</header> <subsection id="HBA8645E3024B403D9F4FFEE8E185BDEF"><enum>(a)</enum><header>Findings</header><text>The Congress finds that—</text> <paragraph id="H870281AD3E214BA19AD4E00C5373F05A"><enum>(1)</enum><text>the status of oil as a strategic commodity, which derives from its domination of the transportation sector, presents a clear and present danger to the United States;</text> </paragraph><paragraph id="HBBB803AA34074AD2B11EE01AC3AFA6A2"><enum>(2)</enum><text>in a prior era, when salt was a strategic commodity, salt mines conferred national power and wars were fought over the control of such mines;</text> </paragraph><paragraph id="H966B82D417C146A7A11C1F166CCE0476"><enum>(3)</enum><text>technology, in the form of electricity and refrigeration, decisively ended salt’s monopoly of meat preservation and greatly reduced its strategic importance;</text> </paragraph><paragraph id="HEA51F2B6DDC84AD4BB08E4A20716E827"><enum>(4)</enum><text>fuel competition and consumer choice would similarly serve to end oil’s monopoly in the transportation sector and strip oil of its strategic status;</text> </paragraph><paragraph id="HB8A1753B2F8D4A9BB8F7F41A54D49027"><enum>(5)</enum><text>the current closed fuel market has allowed a cartel of petroleum exporting countries to inflate fuel prices, effectively imposing a harmful tax on the economy of the United States;</text> </paragraph><paragraph id="HE2A303C5B3D6404DB40F60B325C0A7FD"><enum>(6)</enum><text>much of the inflated petroleum revenues the oil cartel earns at the expense of the people of the United States are used for purposes antithetical to the interests of the United States and its allies;</text> </paragraph><paragraph id="HEE5C3B25B2674F7BB64A8F6987102998"><enum>(7)</enum><text>alcohol fuels, including ethanol and methanol, could potentially provide significant supplies of additional fuels that could be produced in the United States and in many other countries in the Western Hemisphere that are friendly to the United States;</text> </paragraph><paragraph id="HC45078E55B814B0CA6FC2F35F7C6AD38"><enum>(8)</enum><text>alcohol fuels can only play a major role in securing the energy independence of the United States if a substantial portion of vehicles in the United States are capable of operating on such fuels;</text> </paragraph><paragraph id="H7969339727F14BA1B175526EAB044F40"><enum>(9)</enum><text>it is not in the best interest of United States consumers or the United States Government to be constrained to depend solely upon petroleum resources for vehicle fuels if alcohol fuels are potentially available;</text> </paragraph><paragraph id="HA5D76A27E56B4A1D995F2D92F207BA2F"><enum>(10)</enum><text>existing technology, in the form of flexible fuel vehicles, allows internal combustion engine cars and trucks to be produced at little or no additional cost, which are capable of operating on conventional gasoline, alcohol fuels, or any combination of such fuels, as availability or cost advantage dictates, providing a platform on which fuels can compete;</text> </paragraph><paragraph id="HBF997A1694B7487BAF65B6F6EC8A4F75"><enum>(11)</enum><text>the necessary distribution system for such alcohol fuels will not be developed in the United States until a substantial fraction of the vehicles in the United States are capable of operating on such fuels;</text> </paragraph><paragraph id="H868FB1E84D9441C3A68171609D71C731"><enum>(12)</enum><text>the establishment of such a vehicle fleet and distribution system would provide a large market that would mobilize private resources to substantially advance the technology and expand the production of alcohol fuels in the United States and abroad;</text> </paragraph><paragraph id="H97EB8104444E487E98AF25DDA021DA6F"><enum>(13)</enum><text>the United States has an urgent national security interest to develop alcohol fuels technology, production, and distribution systems as rapidly as possible;</text> </paragraph><paragraph id="H8A99B0C26CB44E87AF487A5725DA0B03"><enum>(14)</enum><text>new cars sold in the United States that are equipped with an internal combustion engine should allow for fuel competition by being flexible fuel vehicles, and new diesel cars should be capable of operating on biodiesel; and</text> </paragraph><paragraph id="H373C669567B340F3A58E18214C937FB0"><enum>(15)</enum><text>such an open fuel standard would help to protect the United States economy from high and volatile oil prices and from the threats caused by global instability, terrorism, and natural disaster.</text> </paragraph></subsection><subsection id="H711B744F0C414E41BEB186D70CA14731"><enum>(b)</enum><header>Open fuel standard for transportation</header><paragraph commented="no" display-inline="yes-display-inline" id="H498B623E700343E7907767477B3CE05F"><enum>(1)</enum><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/329">Chapter 329</external-xref> of title 49, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H904B5655C1914AFC81C7C7E9BFD80B98" style="USC"> <section id="H14C601783B7A419C994BE7D962944DAB"><enum>32920.</enum><header>Open fuel standard for transportation</header> <subsection id="H704B6F9B02B644C39FFE68C0EB70E23A"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H20E6A1EA841845688E181910DEEA41E0"><enum>(1)</enum><header>E<enum-in-header>85</enum-in-header></header><text>The term <quote>E85</quote> means a fuel mixture containing 85 percent ethanol and 15 percent gasoline by volume.</text> </paragraph><paragraph id="H80ACD7EFF6FB46CFBAE4EE40E6DD5BE8"><enum>(2)</enum><header>Flexible fuel automobile</header><text>The term <quote>flexible fuel automobile</quote> means an automobile that has been warranted by its manufacturer to operate on gasoline, E85, and M85.</text> </paragraph><paragraph id="H44CBB389F8484416B2E800EB5435230A"><enum>(3)</enum><header>Fuel choice-enabling automobile</header><text>The term <quote>fuel choice-enabling automobile</quote> means—</text> <subparagraph id="HDE8DD1688B054574B0DD2DEA42A7DC94"><enum>(A)</enum><text>a flexible fuel automobile; or</text> </subparagraph><subparagraph id="H35C51C777CC5435DBA453CF849959767"><enum>(B)</enum><text>an automobile that has been warranted by its manufacturer to operate on biodiesel.</text> </subparagraph></paragraph><paragraph id="HED1B6CC3F9BD4B03A022F266CC0C09ED"><enum>(4)</enum><header>Light-duty automobile</header><text>The term <quote>light-duty automobile</quote> means—</text> <subparagraph id="H3DA3A5AA319645A28E58E1F9B4AA605B"><enum>(A)</enum><text>a passenger automobile; or</text> </subparagraph><subparagraph id="HB4B49F60316D45989173FEA7E1D34B2F"><enum>(B)</enum><text>a non-passenger automobile.</text> </subparagraph></paragraph><paragraph id="H11F6081C46544FFFBD817EFA40E7D475"><enum>(5)</enum><header>Light-duty automobile manufacturer’s annual covered inventory</header><text>The term <quote>light-duty automobile manufacturer’s annual covered inventory</quote> means the number of light-duty automobiles powered by an internal combustion engine that a manufacturer, during a given calendar year, manufactures in the United States or imports from outside of the United States for sale in the United States.</text> </paragraph><paragraph id="HDD1DAB1A7DB74B9FBFB2970B7D6CB9EB"><enum>(6)</enum><header>M<enum-in-header>85</enum-in-header></header><text>The term <quote>M85</quote> means a fuel mixture containing 85 percent methanol and 15 percent gasoline by volume.</text> </paragraph></subsection><subsection id="HBBE8D58C8B2A404BA020599A15A17A7C"><enum>(b)</enum><header>Open fuel standard for transportation</header><text></text> <paragraph id="HA6B582126E30487CB36A44D76C693BA0"><enum>(1)</enum><header>In general</header><text>The Secretary may promulgate regulations to require each light-duty automobile manufacturer’s annual covered inventory to be comprised of a minimum percentage of fuel-choice enabling automobiles, with sufficient lead time, if the Secretary, in coordination with the Secretary of Energy and the Administrator of the Environmental Protection Agency, determines such requirement is a cost-effective way to achieve the Nation’s energy independence and environmental objectives. The cost-effective determination shall consider the future availability of both alternative fuel supply and infrastructure to deliver the alternative fuel to the fuel-choice enabling vehicles.</text> </paragraph><paragraph id="HF39639EBCB314A7BB7C1C3EACA01FF3B"><enum>(2)</enum><header>Temporary exemption from requirements</header> <subparagraph id="H3CE759076C354DC28095F7997440BE71"><enum>(A)</enum><header>Application</header><text>A manufacturer may request an exemption from the requirement described in paragraph (1) by submitting an application to the Secretary, at such time, in such manner, and containing such information as the Secretary may require by regulation. Each such application shall specify the models, lines, and types of automobiles affected.</text> </subparagraph><subparagraph id="H92691444257D4071AEBEA223F3CFDBFD"><enum>(B)</enum><header>Evaluation</header><text>After evaluating an application received from a manufacturer, the Secretary may at any time, under such terms and conditions, and to such extent as the Secretary considers appropriate, temporarily exempt, or renew the exemption of, a light-duty automobile from the requirement described in paragraph (1) if the Secretary determines that unavoidable events not under the control of the manufacturer prevent the manufacturer of such automobile from meeting its required production volume of fuel choice-enabling automobiles, including—</text> <clause id="H7486F24043824226A597029BD6822DAE"><enum>(i)</enum><text>a disruption in the supply of any component required for compliance with the regulations;</text> </clause><clause id="HA7E1625C848F49E0B5F53686D89C4D80"><enum>(ii)</enum><text>a disruption in the use and installation by the manufacturer of such component; or</text> </clause><clause id="HDE7804E3E2F8463C9C40988740AD193C"><enum>(iii)</enum><text>application to plug-in electric drive vehicles causing such vehicles to fail to meet State air quality requirements.</text> </clause></subparagraph><subparagraph id="HC2D88BC47AE44B859CB6B2BD072D35AF"><enum>(C)</enum><header>Consolidation</header><text>The Secretary may consolidate applications received from multiple manufacturers under subparagraph (A) if they are of a similar nature.</text> </subparagraph><subparagraph id="HF661F41F756545F981EDF3834E82F7AD"><enum>(D)</enum><header>Conditions</header><text>Any exemption granted under subparagraph (B) shall be conditioned upon the manufacturer’s commitment to recall the exempted automobiles for installation of the omitted components within a reasonable time proposed by the manufacturer and approved by the Secretary after such components become available in sufficient quantities to satisfy both anticipated production and recall volume requirements.</text> </subparagraph><subparagraph id="HD5E460936C824DE580BC776AD1B98E6B"><enum>(E)</enum><header>Notice</header><text>The Secretary shall publish in the Federal Register—</text> <clause id="H6EB097BB6A6B406B8103583564C0155B"><enum>(i)</enum><text>notice of each application received from a manufacturer;</text> </clause><clause id="HD3AC504E2E9C45F7A3AEB72305245474"><enum>(ii)</enum><text>notice of each decision to grant or deny a temporary exemption; and</text> </clause><clause id="H18F82CBCA2AC48D9BD1DD8825939F2E0"><enum>(iii)</enum><text>the reasons for granting or denying such exemptions.</text> </clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H3896FAC07C474EC18E5E93940EE83D29" indent="up1"><enum>(2)</enum><text>The table of contents in chapter 329 of such title is amended adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H1E7C95FEF4A040C498384CFE281E7724" style="USC"> <toc regeneration="no-regeneration"> <toc-entry level="section">32920. Open fuel standard for transportation.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="HC503814872FB4A9192138BD96720F825" section-type="subsequent-section"><enum>128.</enum><header>Diesel emissions reduction</header><text display-inline="no-display-inline">Subtitle G of title VII of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16131">42 U.S.C. 16131 et seq.</external-xref>) is amended—</text> <paragraph id="HFC21488E7DA2418EAE25A96E454C9FEC"><enum>(1)</enum><text>in the matter preceding clause (i) in section 791(3)(B), by inserting <quote>in any State</quote> after <quote>nonprofit organization or institution</quote>;</text> </paragraph><paragraph id="HF60ABAF2BC7E4AF996719FD2C94A9981"><enum>(2)</enum><text>in section 791(9), by striking <quote>The term <term>State</term> includes the District of Columbia.</quote> and inserting <quote>The term <term>State</term> includes the District of Columbia, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the Virgin Islands.</quote>;</text> </paragraph><paragraph id="H3E934E3EFE814B028F86E10E4CD5C42F"><enum>(3)</enum><text>in section 793(c)—</text> <subparagraph id="HA6C50AB4B43C4B75B156F6B880E9D1B6"><enum>(A)</enum><text>in paragraph (2)(A), by striking <quote>51 States</quote> and inserting <quote>56 States</quote>;</text> </subparagraph><subparagraph id="HEF8141980A1647D2B036BAF31DE0E7BB"><enum>(B)</enum><text>in paragraph (2)(A), by striking <quote>1.96 percent</quote> and inserting <quote>1.785 percent</quote>;</text> </subparagraph><subparagraph id="H0956F02994F444AF8D7E40337F6E059D"><enum>(C)</enum><text>in paragraph (2)(B), by striking <quote>51 States</quote> and inserting <quote>56 States</quote>; and</text> </subparagraph><subparagraph id="H5F5C5A54D0E247F68F82807C879D1BF8"><enum>(D)</enum><text>in paragraph (2)(B), by amending clause (ii) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H1C06228754694CB89449CF0008387F39" style="OLC"> <clause id="HB65BB6811C67498FB196ECC2B0A1B6DE"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of funds remaining after each State described in paragraph (1) receives the 1.785-percent allocation under this paragraph.</text> </clause><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H903638F72F4646EBBF37876C6F8D4F79"><enum>(4)</enum><text display-inline="yes-display-inline">in section 797, by striking <quote>2011</quote> and inserting <quote>2016</quote>.</text> </paragraph></section><section id="H12BDCBA5651D45F9897680609B39D9C0"><enum>129.</enum><header>Loan guarantees for projects to construct renewable fuel pipelines</header> <subsection id="H739271F29F5D4D5EB900F1B2550A64C4"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">Section 1701 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16511">42 U.S.C. 16511</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H7D25C034FBA0487D82456C601129C608" style="OLC"> <paragraph id="HD720EDEB01E0445899B06CC150CB54B5"><enum>(6) </enum><header>Renewable fuel</header><text display-inline="yes-display-inline">The term ‘renewable fuel’ has the meaning given the term in section 211(o)(1) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)</external-xref>), except that the term shall include all ethanol and biodiesel.</text> </paragraph><paragraph id="HFF5FD6EA2DE04CE292C4137BCD26F467"><enum>(7)</enum><header>Renewable fuel pipeline</header><text>The term ‘renewable fuel pipeline’ means a common carrier pipeline for transporting renewable fuel.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H582A453AF55345F2BDDAABF098FEAA42"><enum>(b)</enum><header>Renewable fuel pipeline eligibility</header><text>Section 1703(b) the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16513">42 U.S.C. 16513</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H46B11A20B90C4D36933D32B04E3D5467" style="OLC"> <paragraph id="HFC03F1D9D5934549847CCE6B1595DDF5"><enum>(11)</enum><text display-inline="yes-display-inline">Renewable fuel pipelines.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HD6DEC27F57B343C5AE3B9F3D2A2AEBFB"><enum>130.</enum><header>Fleet vehicles</header><text display-inline="no-display-inline">Section 508 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13258">42 U.S.C. 13258</external-xref>) is amended as follows:</text> <paragraph id="H6F7E23337EAB49F09839D776E5AAD2C3"><enum>(1)</enum><text>By adding the following new paragraph at the end of subsection (a):</text> <quoted-block display-inline="no-display-inline" id="HA339D14ED2FA410BA8745669C4C0CEC3" style="OLC"> <paragraph id="HE161F80443DD49978D4DFB0AD0B30706"><enum>(6)</enum><header>Repowered or converted alternative fueled vehicles</header><text display-inline="yes-display-inline">As used in this paragraph, the term <quote>repowered or converted alternative fueled vehicle</quote> includes light-, medium- or heavy-duty motor vehicles that have been modified with an EPA or CARB compliant engine or vehicle or aftermarket system so that the vehicle or engine is capable of operating on an alternative fuel.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HF3235A2F3C5548D38C928FA1DFFD8DB1"><enum>(2)</enum><text>By adding the following new paragraph at the end of subsection (b):</text> <quoted-block display-inline="no-display-inline" id="H0C9BAC5028EC412DA65C9F59596C5768" style="OLC"> <paragraph id="H6A30C65E5CE845429085C932A5A5E934"><enum>(3)</enum><text display-inline="yes-display-inline">Repowered or converted vehicles. Not later than January 1, 2010, the Secretary shall allocate credits to fleets that repower or convert an existing vehicle so that it is capable of operating on an alternative fuel. In the case of any medium- or heavy-duty vehicle that is repowered or converted so that it is capable of operating on an alternative fuel, the Secretary shall allocate additional credits for such vehicles if he determines that such vehicles displace more petroleum than light duty alternative fueled vehicles. Such rules shall also include a requirement that such vehicles remain in the fleet for a period of no less than 2 years in order to continue to qualify for credit. The Secretary also shall extend the flexibility afforded in this paragraph to Federal fleets subject to the purchase provisions contained in section 303 of this Act.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HF736276085DA4530A6D29083FA555120"><enum>130A.</enum><header>Report on natural gas vehicle emissions reductions</header><text display-inline="no-display-inline">Within 360 days after the date of enactment of this Act, the Administrator, in consultation with the Secretaries of Energy and Transportation, and the Administrator of the General Services Administration, and after an examination of available scientific studies or analysis, shall submit to the Congress a report on—</text> <paragraph id="H21B7E0A5C9284D7AB1D0021B3BB5C5C3"><enum>(1)</enum><text>the contribution that light and heavy duty natural gas vehicles, by category and State, have made during the last decade to the reduction of greenhouse gases and criteria pollutants under the Clean Air Act, and the reduced consumption of petroleum-based fuels;</text> </paragraph><paragraph id="H14D5CF6FE3BE463BA3534A1290CB2CCB"><enum>(2)</enum><text>the contribution that light and heavy duty natural gas vehicles are expected to make from 2010 to 2020 in reducing greenhouse gas and criteria pollutants under the Clean Air Act based, among other things, on additional Federal incentives for the manufacture and deployment of natural gas vehicles provided in this Act, and other Federal legislation; and</text> </paragraph><paragraph id="H79FBA1F7132F46A79393CA5E683FCFC9"><enum>(3)</enum><text>additional Federal measures, including legislation, that could, if implemented, maximize the potential for natural gas used in both stationary and mobile sources to contribute to the reduction of greenhouse gases and criteria pollutants under the Clean Air Act.</text> </paragraph></section></subtitle><subtitle id="HB7B4F41FD87D4F379FDB71818EB9A7E7"><enum>D</enum><header>State Energy and Environment Development Accounts</header> <section id="H5186C862A4654B3CA5550B204B665EF4"><enum>131.</enum><header>Establishment of SEED Accounts</header> <subsection id="H51DF6CD88ECC4FCEA8F86FE7DDD9DB30"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HA0CB2B2244A44079B17F488C9787512A"><enum>(1)</enum><header>SEED Account</header><text display-inline="yes-display-inline">The term <quote>SEED Account</quote> means a State Energy and Environment Development Account established pursuant to this section.</text> </paragraph><paragraph id="H02040A49B0714F58B497F86AC140B260"><enum>(2)</enum><header>State energy office</header><text>The term <quote>State Energy Office</quote> means a State entity eligible for grants under part D of title III of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6321">42 U.S.C. 6321 et seq.</external-xref>).</text> </paragraph></subsection><subsection id="HD98AB03027ED4A38A6A059EA39AF1BA2"><enum>(b)</enum><header>Establishment of program</header><text display-inline="yes-display-inline">The Administrator shall establish a program under which a State, through its State Energy Office or other State agency designated by the State, may operate a State Energy and Environment Development Account.</text> </subsection><subsection id="H99C8066CF60140658CFB56A24BE5DB89"><enum>(c)</enum><header>Purpose</header><text>The purpose of each SEED Account is to serve as a common State-level repository for managing and accounting for emission allowances provided to States designated for renewable energy and energy efficiency purposes.</text> </subsection><subsection id="H79B6A8385A3D4CF5B13BA14B456A0671"><enum>(d)</enum><header>Regulations</header><text>Not later than 1 year after the date of enactment of this Act, the Administrator shall promulgate regulations to carry out this section, including regulations—</text> <paragraph id="HEDC496B5894C4933A84C588A1F49778B"><enum>(1)</enum><text>to ensure that each State operates its SEED Account and any subaccounts thereof efficiently and in accordance with this Act and applicable State and Federal laws;</text> </paragraph><paragraph id="HA36FA3E35A234E04ABA532F55319AE67"><enum>(2)</enum><text>to prevent waste, fraud, and abuse;</text> </paragraph><paragraph id="H95CFA9B778694591A8EE097495CCCB9C"><enum>(3)</enum><text>to indicate the emission allowances that may be deposited in a State’s SEED Account pending distribution or use;</text> </paragraph><paragraph id="H50EA8A059F824F939941BCDCD9797F0F"><enum>(4)</enum><text>to indicate the programs and objectives authorized by Federal law for which emission allowances in a SEED Account may be distributed or used;</text> </paragraph><paragraph id="HE470D3B3F36843B29A7F43CDFF061162"><enum>(5)</enum><text>to identify the forms of financial assistance and incentives that States may provide through distribution or use of SEED Accounts; and</text> </paragraph><paragraph id="HDB2B68C4838D42FEA9590696A120461A"><enum>(6)</enum><text>to prescribe the form and content of reports that the States are required to submit under this section on the use of SEED Accounts.</text> </paragraph></subsection><subsection id="HDA61CE38822A4944A307C1BC08519070"><enum>(e)</enum><header>Operation</header> <paragraph id="H3AA8565BBF0D48909BE5470BEA3F229B"><enum>(1)</enum><header>Deposits</header> <subparagraph id="H1480F05FBD61483E87A8F67F2EBC1821"><enum>(A)</enum><header>In general</header><text>In the allowance tracking system established pursuant to section 724(d) of the Clean Air Act, the Administrator shall establish a SEED Account for each State and place in it the allowances allocated pursuant to section 782(g) of the Clean Air Act to be distributed to States pursuant to sections 132 and 201 of this Act.</text> </subparagraph><subparagraph id="H39EEFB94572B4BFEB8E077140344B580"><enum>(B)</enum><header>Financial account</header><text>A State may create a financial account associated with its SEED Account to deposit, retain, and manage any proceeds of any sale of any allowance provided pursuant to this Act pending expenditure or disbursement of those proceeds for purposes permitted under this section. The funds in such an account shall not be commingled with other funds not derived from the sale of allowances provided to the State; however, loans made by the State from such funds pursuant to paragraph (2)(C)(i) may be repaid into such a financial account, including any interest charged.</text> </subparagraph></paragraph><paragraph id="H7A92BEA75DE746FE98895DD53E84AE7C"><enum>(2)</enum><header>Withdrawals</header> <subparagraph id="H313E2F7F880546A79C46C5766A3DAB63"><enum>(A)</enum><header>In general</header><text>All allowances distributed pursuant to sections 132 and 201, including the proceeds of any sale of such allowances, shall support renewable energy and energy efficiency programs authorized or approved by the Federal Government.</text> </subparagraph><subparagraph id="HBB119BC5B24D44D79C45F8AFBD114AA9"><enum>(B)</enum><header>Dedicated allowances</header><text>Allowances distributed pursuant to sections 132 and 201 that are required by law to be used for specific purposes for a specified period shall be used according to those requirements during that period.</text> </subparagraph><subparagraph id="HEF21F2DD20D44310BA54BEA4890BBE6C"><enum>(C)</enum><header>Undedicated allowances</header><text>To the extent that allowances distributed pursuant to sections 132 and 201 are not required by law to be used for specific purposes for a specified period as described in subparagraph (B), such allowances or the proceeds of their sale may be used for any of the following purposes:</text> <clause id="H06E4B34F84234C019E32934A4502C3BD"><enum>(i)</enum><header>Loans</header><text>Loans of allowances, or the proceeds from the sale of allowances, may be provided, interest on commercial loans may be subsidized at an interest rate as low as zero, and other credit support may be provided to support programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.</text> </clause><clause id="H043460E49F324BB480D70190077700AF"><enum>(ii)</enum><header>Grants</header><text display-inline="yes-display-inline">Grants of allowances or the proceeds of their sale may be provided to support programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.</text> </clause><clause id="H7A688E066E8A4DE78797C2EB34E538A7"><enum>(iii)</enum><header>Other forms of support</header><text display-inline="yes-display-inline">Allowances or the proceeds of the sale of allowances may be provided for other forms of support for programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.</text> </clause><clause id="HB1E750EAFF714389A7B7132F08EBBCDC"><enum>(iv)</enum><header>Administrative costs</header><text>Except to the extent provided in Federal law authorizing or allocating allowances deposited in a SEED Account, not more than 5 percent of the allowance value in a SEED Account in any year may be used to cover administrative expenses of the SEED Account.</text> </clause></subparagraph><subparagraph id="H640131F1F45049368EAEBF17EABD1658"><enum>(D)</enum><header>Subaccounts</header><text>A State may request that the Administrator establish accounts for local governments that request such subaccounts to hold allowances distributed to local governments for renewable energy or energy efficiency programs authorized or approved by the Federal Government.</text> </subparagraph><subparagraph id="HB1EDDC03A7A748B2B9B81593BD55DE14"><enum>(E)</enum><header>Intended use plans</header> <clause id="HC042EF863EF04D6390E472571C9E53FA"><enum>(i)</enum><header>In general</header><text>After providing for public review and comment, each State administering a SEED Account shall annually prepare a plan that identifies the intended uses of the allowances or proceeds from the sale of allowances in its SEED Account.</text> </clause><clause id="H84C7C1AF99EE4CCFBB7735CB3B50DB73"><enum>(ii)</enum><header>Contents</header><text>An intended use plan shall include—</text> <subclause id="HE86734A639CA4D088BC31ABF4EF69F6B"><enum>(I)</enum><text>a list of the projects or programs for which withdrawals from the SEED Account are intended in the next fiscal year that begins after the date of the plan, including a description of each project;</text> </subclause><subclause id="H6C121ABCE00D4B98AB69B9231A8001E9"><enum>(II)</enum><text>the relationship of each of the projects or programs to an identified Federal purpose authorized by this Act, or any other Federal statute;</text> </subclause><subclause id="H7593B0FAE0F341D491DB06B77779EF2C"><enum>(III)</enum><text>the expected terms of use of allowance value to provide assistance;</text> </subclause><subclause id="HF54719C1DA6746C7932CBB6C8A2D41A9"><enum>(IV)</enum><text>the criteria and methods established for the distribution of allowances or allowance value;</text> </subclause><subclause id="HE755C8D4C0684CD691F2895D846B236A"><enum>(V)</enum><text>a description of the equivalent financial value and status of the SEED Account; and</text> </subclause><subclause id="H70327F932E2448F6AA158D36495168E6"><enum>(VI)</enum><text>a statement of the mid-term and long-term goals of the State for use of its SEED Account.</text> </subclause></clause></subparagraph></paragraph><paragraph id="H2D359F55F97B44A5BBDBDBA55404D1F0"><enum>(3)</enum><header>Accountability and transparency</header> <subparagraph id="H45BF2FF26CE54384AC664F341EFA988F"><enum>(A)</enum><header>Controls and procedures</header><text>Any State that has a SEED Account shall establish fiscal controls and recordkeeping and accounting procedures for the SEED Account sufficient to ensure proper accounting during appropriate accounting periods for distributions into the SEED Account, transfers from the SEED Account, and SEED Account balances, including any related financial accounts. Such controls and procedures shall conform to generally accepted government accounting principles. Any State that has a SEED Account shall retain records for a period of at least 5 years.</text> </subparagraph><subparagraph id="HA7A3797B89EE4DB89F01EC937B38E410"><enum>(B)</enum><header>Audits</header><text>Any State that has a SEED Account shall have an annual audit conducted of the SEED Account by an independent public accountant in accordance with generally accepted auditing standards, and shall transmit the results of that audit to the Administrator.</text> </subparagraph><subparagraph id="H4D1A243DC287466784C197395A309F86"><enum>(C)</enum><header>State report</header><text>Each State administering a SEED Account shall make publicly available and submit to the Administrator a report every 2 years on its activities related to its SEED Account.</text> </subparagraph><subparagraph id="HB6014D2F0D61441CA410532E974937CC"><enum>(D)</enum><header>Public information</header><text display-inline="yes-display-inline">Any—</text> <clause id="H28CCC5D4C51A41DDA7CD6A3A8B7FF5FC"><enum>(i)</enum><text>controls and procedures established under subparagraph (A); and</text> </clause><clause id="H451B1F8B0CF34D4A846000EC24DD9122"><enum>(ii)</enum><text>information obtained through audits conducted under subparagraph (B), except to the extent that it would be protected from disclosure, if it were information held by the Federal Government, under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)</external-xref> of title 5, United States Code,</text> </clause><continuation-text continuation-text-level="subparagraph">shall be made publicly available.</continuation-text></subparagraph><subparagraph id="H21DF16CD38B143FEB5194079E6DF58A0"><enum>(E)</enum><header>Other protections</header><text>The Administrator shall require such additional procedures and protections as are necessary to ensure that any State that has a SEED Account will operate the SEED Account in an accountable and transparent manner.</text> </subparagraph></paragraph></subsection><subsection id="HBB58EBAD64A046D4A08ABCC0EA40474D"><enum>(f)</enum><header>Requirements for eligibility</header><text display-inline="yes-display-inline">A State’s eligibility to receive allowances in its SEED Account shall depend on that State’s compliance with the requirements of this Act (and the amendments made by this Act).</text> </subsection><subsection id="HE5B82349BD874430AF7911B94E80D1E3"><enum>(g)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to the Administrator such sums as may be necessary for SEED Account operations.</text> </subsection></section><section id="HEEB6B6F25CC64E008E65BC27075EF1F9"><enum>132.</enum><header>Support of State renewable energy and energy efficiency programs</header> <subsection id="HA0AAD5D07C5740C3B8B41A557BBBBB5F"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H35A696CF8C0643169948C03664FE94CB"><enum>(1)</enum><header>Allowance</header><text>The term <quote>allowance</quote> means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).</text> </paragraph><paragraph id="H686FB619DB104C8694C52E65FDC54C38"><enum>(2)</enum><header>Cost-effective</header><text>The term <quote>cost-effective</quote>, with respect to an energy efficiency program, means that the program meets the Total Resource Cost Test, which requires that the net present value of economic benefits over the life of the program or measure, including avoided supply and delivery costs and deferred or avoided investments, is greater than the net present value of the economic costs over the life of the program, including program costs and incremental costs borne by the energy consumer.</text> </paragraph><paragraph id="H767ACABE8B84436BA886E938846142FC"><enum>(3)</enum><header>Renewable energy resource</header><text>The term <quote>renewable energy resource</quote> shall have the meaning given that term in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of this Act).</text> </paragraph><paragraph id="H3EAE60456B9D4C9289D53F83D14A29F7"><enum>(4)</enum><header>Vintage year</header><text>The term <quote>vintage year</quote> shall the meaning given that term in section 700 of the Clean Air Act (as added by section 311 of this Act).</text> </paragraph></subsection><subsection id="H3595DF6DE9CA446E90F518BDF046433F"><enum>(b)</enum><header>Distribution among states</header><text>Not later than September 30 of each calendar year from 2011 through 2049, the Administrator shall, in accordance with this section, distribute allowances allocated pursuant to section 782(g)(1) of the Clean Air Act (as added by section 311 of this Act) for the following vintage year. The Administrator shall distribute 0.5 percent of such allowances pursuant to section 133 of this Act. The Administrator shall distribute the remaining allowances to States for renewable energy and energy efficiency programs to be deposited in and administered through the State Energy and Environment Development (SEED) Accounts established pursuant to section 131. The Administrator shall distribute allowances among the States under this section each year in accordance with the following formula:</text> <paragraph id="H19A6AB094B2949D6904E577096F4C757"><enum>(1)</enum><text>One third of the allowances shall be divided equally among the States.</text> </paragraph><paragraph id="HD8BBFE02EB0948DFAA721E437E15AA90"><enum>(2)</enum><text>One third of the allowances shall be distributed ratably among the States based on the population of each State, as contained in the most recent reliable census data available from the Bureau of the Census, Department of Commerce, for all States at the time the Administrator calculates the formula for distribution.</text> </paragraph><paragraph id="HE9303050C49C41209FC1CA5CFA64AB60"><enum>(3)</enum><text>One third of the allowances for shall be distributed ratably among the States on the basis of the energy consumption of each State as contained in the most recent State Energy Data Report available from the Energy Information Administration (or such alternative reliable source as the Administrator may designate).</text> </paragraph></subsection><subsection id="H699107F6568E442DA3D8AD84AC3D599E"><enum>(c)</enum><header>Uses</header><text>The allowances distributed to each State pursuant to this section shall be used exclusively in accordance with the following requirements:</text> <paragraph id="H57949362CEE14144B13176BE46865001"><enum>(1)</enum><text>Not less than 12.5 percent shall be distributed by the State to units of local government within such State to be used exclusively to support the energy efficiency and renewable energy purposes listed in paragraphs (2) and (3).</text> </paragraph><paragraph id="H0D9EA42596AD4BECAE851A5B8EDB2EAE"><enum>(2)</enum><text>Not less than 20 percent shall be used exclusively for the following energy efficiency purposes, provided that not less than 1 percent shall be used for the purpose described in subparagraph (D) and not less than 5.5 percent shall be used for the purpose described in subparagraph (E):</text> <subparagraph id="H482640740DE44021AF95DBEF055D7750"><enum>(A)</enum><text>Implementation and enforcement of building codes adopted in compliance with section 201.</text> </subparagraph><subparagraph id="H99B5AC7D2E4647D2A849ABE2D588259D"><enum>(B)</enum><text>Implementation of the energy efficient manufactured homes program established pursuant to section 203.</text> </subparagraph><subparagraph id="HD3FBAEB39DF9484CB6F259507E3472F7"><enum>(C)</enum><text>Implementation of the building energy performance labeling program established pursuant to section 204.</text> </subparagraph><subparagraph id="H616AA1CF82B547F0987256445EFBCE22"><enum>(D)</enum><text>Low-income community energy efficiency programs that are consistent with the grant program established under section 264 of this Act.</text> </subparagraph><subparagraph id="H614EF82510E446898940A3F45FF26EC4"><enum>(E)</enum><text>Implementation of the Retrofit for Energy and Environmental Performance (REEP) program established pursuant to section 202.</text> </subparagraph></paragraph><paragraph id="HB9A54726B59044C89888F03BF02EEAD6"><enum>(3)</enum><text display-inline="yes-display-inline">Not less than 20 percent shall be used exclusively for capital grants, tax credits, production incentives, loans, loan guarantees, forgivable loans, direct provision of allowances, and interest rate buy-downs for—</text> <subparagraph id="HB76F027748294C679CC7064A33736F16"><enum>(A)</enum><text>re-equipping, expanding, or establishing a manufacturing facility that receives certification from the Secretary of Energy pursuant to section 1302 of the American Recovery and Reinvestment Act of 2009 for the production of—</text> <clause id="H5C80C93272E94FFDA5FD4FA1EFB40612"><enum>(i)</enum><text>property designed to be used to produce energy from renewable energy sources; and</text> </clause><clause id="H2ADD5286B3F743F6BB5AE2528814BEBE"><enum>(ii)</enum><text>electricity storage systems;</text> </clause></subparagraph><subparagraph id="HA3F3B830529741A5848B0EA3B53641C2"><enum>(B)</enum><text>deployment of technologies to generate electricity from renewable energy sources; and</text> </subparagraph><subparagraph id="HCECD07B2FBBB4E0D8700FABCB0F260E1"><enum>(C)</enum><text>deployment of facilities or equipment, such as solar panels, to generate electricity or thermal energy from renewable energy resources in and on buildings in an urban environment.</text> </subparagraph></paragraph><paragraph id="H4A175E6BAB7946FBA875F35A69023800"><enum>(4)</enum><text>The remaining 47.5 percent shall be used exclusively for any of the following purposes:</text> <subparagraph id="H734DF22909F4407A8E7BB4A65A8011F5"><enum>(A)</enum><text>Energy efficiency purposes described in paragraph (2).</text> </subparagraph><subparagraph id="HC0E8914F6E1E4B418C0FA3BC7AEC244A"><enum>(B)</enum><text>Renewable energy purposes described in paragraph (3)(B) and (C).</text> </subparagraph><subparagraph id="H36D8C8F56E7E4006962CD5C1EB8D6FA6"><enum>(C)</enum><text>Cost-effective energy efficiency programs for end-use consumers of electricity, natural gas, home heating oil, or propane, including, where appropriate, programs or mechanisms administered by local governments and entities other than the State.</text> </subparagraph><subparagraph id="HE0D11549EE564629AE3DD0CE8EB65066"><enum>(D)</enum><text>Enabling the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17381">42 U.S.C. 17381</external-xref>)) for State, local government, and other public buildings and facilities, including integration of renewable energy resources and distributed generation, demand response, demand side management, and systems analysis.</text> </subparagraph><subparagraph id="H71318D66DF634A888EAC2100A4ED2F20"><enum>(E)</enum><text>Providing the non-Federal share of support for surface transportation capital projects under—</text> <clause id="HA97464BD1A3141DB8A0D4E980853D65C"><enum>(i)</enum><text>sections 5307, 5308, 5309, 5310, 5311 and 5319 of title 49, United States Code; and</text> </clause><clause id="HA83DEFCCB9C446379D89F4AF43C5CF1A"><enum>(ii)</enum><text>sections 142, 146, and 149 of title 23, United States Code,</text> </clause><continuation-text continuation-text-level="subparagraph">provided that not more than 10 percent of allowances distributed to each State pursuant to this section shall be used for such purpose.</continuation-text></subparagraph></paragraph><paragraph id="HF913F9FC32344454820551980312DAF8"><enum>(5)</enum><text>For any allowances used for the purpose described in paragraph (4)(C), the State shall—</text> <subparagraph id="HA0099CE1438341D2AD1B29F2C12C397D"><enum>(A)</enum><text>prioritize expansion of existing energy efficiency programs approved and overseen by the State or the appropriate State regulatory authority; and</text> </subparagraph><subparagraph id="H6D019E9272F24A4188B3982FBA278879"><enum>(B)</enum><text>demonstrate that such allowances have been used to supplement, and not to supplant, existing and otherwise available State, local, and ratepayer funding for such purpose.</text> </subparagraph></paragraph></subsection><subsection id="HC736781B4B3C4CB1957612B3CA7C6FED"><enum>(d)</enum><header>Reporting</header><text>Each State receiving allowances under this section shall include in its biennial reports required under section 131, in accordance with such requirements as the Administrator may prescribe—</text> <paragraph id="H7FF0316437834A389710B9DC5079CCEF"><enum>(1)</enum><text>a list of entities receiving allowances or allowance value under this section, including entities receiving such allowances or allowance value from units of local government pursuant to subsection (c)(1);</text> </paragraph><paragraph id="H96A0324CE9DF49F0908C6D376D4BF4FE"><enum>(2)</enum><text>the amount and nature of allowances or allowance value received by each such recipient;</text> </paragraph><paragraph id="H8F6B6681298C4A5B9E6658D74704E4B3"><enum>(3)</enum><text>the specific purposes for which such allowances or allowance value was conveyed to each such recipient;</text> </paragraph><paragraph id="H30018C60AF104EDF9D4D49E0BF397A60"><enum>(4)</enum><text>documentation of the amount of energy savings, emission reductions, renewable energy deployment, and new or retooled manufacturing capacity resulting from the use of such allowances or allowance value; and</text> </paragraph><paragraph id="H2CD4C686C2724A24AF086FAA4CA53741"><enum>(5)</enum><text>for any energy efficiency program supported under subsection (c)(4)(C)—</text> <subparagraph id="HA9AC83770BB14E48926B4F128EBE66A1"><enum>(A)</enum><text>an assessment demonstrating the cost-effectiveness of such program; and</text> </subparagraph><subparagraph id="HD2D77C64D5034BE5AC956BC81691191B"><enum>(B)</enum><text>a demonstration that the requirements set forth in subsection (c)(5) have been satisfied.</text> </subparagraph></paragraph></subsection><subsection id="H6BEC0C0EBC7843598269B86197C03677"><enum>(e)</enum><header>Enforcement</header><text>If the Administrator determines that a State is not in compliance with this section, the Administrator may withhold up to twice the number of allowances that the State failed to use in accordance with the requirements of this section, that such State would otherwise be eligible to receive under this section in later years. Allowances withheld pursuant to this subsection shall be distributed among the remaining States in accordance with the requirements of subsection (b).</text> </subsection></section><section id="H503D653A277345929F5025D1C430449B"><enum>133.</enum><header>Support of Indian renewable energy and energy efficiency programs</header> <subsection id="HB04B5806EAF7494F9D2A6913A8901851"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H2C3387324D9742249728D62493E0F259"><enum>(1)</enum><header>Allowance; cost-effective; renewable energy resource</header><text>The terms <quote>allowance</quote>, <quote>cost-effective</quote>, and <quote>renewable energy resource</quote> have the meaning given those terms in section 132 of this Act.</text> </paragraph><paragraph id="HC0B25A3E9B134251BD7CD8BCF627E0F9"><enum>(2)</enum><header>Indian tribe</header><text>The term <quote>Indian tribe</quote> has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25. U.S.C. 450b).</text> </paragraph><paragraph id="H967ADB84708648CEA788778D2ACBF6EA"><enum>(3)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of Energy.</text> </paragraph></subsection><subsection id="H75E8F284D0864C05817DBAB42207BB0D"><enum>(b)</enum><header>Establishment</header><text>Not later than 18 months after the date of enactment of this Act, the Secretary shall, in consultation with the Administrator and the Secretary of the Interior, promulgate regulations establishing a program to distribute allowances to Indian tribes on a competitive basis for the following purposes:</text> <paragraph id="H7D243B3B5D014170B2367B751CA3F6FC"><enum>(1)</enum><header>Energy efficiency</header><text>Cost-effective energy efficiency programs for end-use consumers of electricity, natural gas, home heating oil, or propane.</text> </paragraph><paragraph id="HADF277BE09BC4C9E8EC2FD81D1C41E73"><enum>(2)</enum><header>Renewable energy</header><text>Deployment of technologies to generate electricity from renewable energy resources.</text> </paragraph></subsection><subsection id="H4342B9FFE35647509B8AE8DBAA42C0F6"><enum>(c)</enum><header>Requirements</header><text>The regulations promulgated pursuant to subsection (b) shall prescribe design elements and requirements of the program established under this section, including—</text> <paragraph id="H17455333864140B4AF685F36E55FFD56"><enum>(1)</enum><text>objective criteria for evaluating proposals submitted by Indian tribes, and for selecting projects and programs to receive support, under this section;</text> </paragraph><paragraph id="HD7F4DBE36B5B438B90AE692718BED548"><enum>(2)</enum><text>reporting requirements for Indian tribes that receive allowances under this section; and</text> </paragraph><paragraph id="H520D0B59DA6C4BF3AE35333C8BE37FF6"><enum>(3)</enum><text>other appropriate elements and requirements.</text> </paragraph></subsection><subsection id="HB7100B6C66FB4078AA7482EE273360F3"><enum>(d)</enum><header>Distribution</header><text>The Administrator shall, at the direction of the Secretary, distribute to Indian tribes allowances that are set aside, pursuant to section 132, for use under this section.</text> </subsection></section></subtitle><subtitle id="H4B06B2130FDE4930B098A33295786ABB"><enum>E</enum><header>Smart Grid Advancement</header> <section id="H859B8B6EA76B42C79020E47B63144431"><enum>141.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle:</text> <paragraph id="H2BFD9A6A3D984B56B966DFDB58053175"><enum>(1)</enum><text display-inline="yes-display-inline">The term <quote>applicable baseline</quote> means the average of the highest three annual peak demands a load-serving entity has experienced during the 5 years immediately prior to the date of enactment of this Act.</text> </paragraph><paragraph id="HEC79DC63474F4651B14AD9970060B30D"><enum>(2)</enum><text display-inline="yes-display-inline">The term <quote>Commission</quote> means Federal Energy Regulatory Commission.</text> </paragraph><paragraph id="H7C72890EF86C4A49AACD8CDF642276ED"><enum>(3)</enum><text display-inline="yes-display-inline">The term <quote>load-serving entity</quote> means an entity that provides electricity directly to retail consumers with the responsibility to assure power quality and reliability, including such entities that are investor-owned, publicly owned, owned by rural electric cooperatives, or other entities.</text> </paragraph><paragraph id="H9D2CB61C2FBB4A70B016A5BB37EFD584"><enum>(4)</enum><text display-inline="yes-display-inline">The term <quote>peak demand</quote> means the highest point of electricity demand, net of any distributed electricity generation or storage from sources on the load-serving entity’s customers’ premises, during any hour on the system of a load serving entity during a calendar year, expressed in Megawatts (MW), or more than one such high point as a function of seasonal demand changes.</text> </paragraph><paragraph id="H95135944A1E94682A57C6BFBD761148F"><enum>(5)</enum><text display-inline="yes-display-inline">The term <quote>peak demand reduction</quote> means the reduction in annual peak demand as compared to a previous baseline year or period, expressed in Megawatts (MW), whether accomplished by—</text> <subparagraph id="H051280F1B8574818AFA8190278FD1920"><enum>(A)</enum><text>diminishing the end-use requirements for electricity;</text> </subparagraph><subparagraph id="H92DC7096BE82462B8C4E1977946EA623"><enum>(B)</enum><text>use of locally stored energy or generated electricity to meet those requirements from distributed resources on the load-serving entity’s customers’ premises and without use of high-voltage transmission; or</text> </subparagraph><subparagraph id="H95C84CEB1540419ABF3503E3BE0C3EB9"><enum>(C)</enum><text>energy savings from efficient operation of the distribution grid resulting from the use of a Smart Grid.</text> </subparagraph></paragraph><paragraph id="HD299467C918B409883EA5F3E569BC171"><enum>(6)</enum><text display-inline="yes-display-inline">The term <quote>peak demand reduction plan</quote> means a plan developed by or for a load-serving entity that it will implement to meet its peak demand reduction goals.</text> </paragraph><paragraph id="H3FD4EAF13F504544AB1C2E126A11D2F2"><enum>(7)</enum><text display-inline="yes-display-inline">The term <quote>peak period</quote> means the time period on the system of a load-serving entity relative to peak demand that may warrant special measures or electricity resources to maintain system reliability while meeting peak demand.</text> </paragraph><paragraph id="H560BD9B5D2F64B8290FAE35FB4045254"><enum>(8)</enum><text display-inline="yes-display-inline">The term <quote>Secretary</quote> means the Secretary of Energy.</text> </paragraph><paragraph id="HC39C6C81546B41619B773EF85ABBBBFA"><enum>(9)</enum><text display-inline="yes-display-inline">The term <quote>Smart Grid</quote> has the meaning provided by section 1301 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/15/17381">15 U.S.C. 17381</external-xref>).</text> </paragraph></section><section id="HD34427752D344F17A8F041C8F40F1D63"><enum>142.</enum><header> Assessment of Smart Grid cost effectiveness in products</header> <subsection id="H23DA3D291899402887C1E0FEE75F0B4A"><enum>(a)</enum><header>Assessment</header><text display-inline="yes-display-inline">Within 1 year after the date of enactment of this Act, the Secretary and the Administrator shall each assess the potential for cost-effective integration of Smart Grid technologies and capabilities in all products that are reviewed by the Department of Energy and the Environmental Protection Agency, respectively, for potential designation as Energy Star products.</text> </subsection><subsection id="H577F3350116F4B7CBDB178C1008C067B"><enum>(b)</enum><header>Analysis</header><paragraph commented="no" display-inline="yes-display-inline" id="HDC4F2D5DE61B4EE3B3EE06B65770DDA0"><enum>(1)</enum><text>Within 2 years after the date of enactment of this Act, the Secretary and the Administrator shall each prepare an analysis of the potential energy savings, greenhouse gas emission reductions, and electricity cost savings that could accrue for each of the products identified by the assessment in subsection (a) in the following optimal circumstances:</text> <subparagraph id="HDA1A5AF770C94767A588C4907425F108" indent="up1"><enum>(A)</enum><text>The products possessed Smart Grid capability and interoperability that is tested and proven reliable.</text> </subparagraph><subparagraph id="HDF8767D0BB994713800809F2697E1D07" indent="up1"><enum>(B)</enum><text>The products were utilized in an electricity utility service area which had Smart Grid capability and offered customers rate or program incentives to use the products.</text> </subparagraph><subparagraph id="H2EFE1FC8BB6141849123E807014A940D" indent="up1"><enum>(C)</enum><text>The utility’s rates reflected national average costs, including average peak and valley seasonal and daily electricity costs.</text> </subparagraph><subparagraph id="HCD8242A238D149BCA0BBCF42B3766024" indent="up1"><enum>(D)</enum><text>Consumers using such products took full advantage of such capability.</text> </subparagraph><subparagraph id="HF7D8D4B5C3FB4A5699146EE3A684F6B3" indent="up1"><enum>(E)</enum><text>The utility avoided incremental investments and rate increases related to such savings.</text> </subparagraph></paragraph><paragraph id="HB5DA738DD5F840B48709DE110DC769A4" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The analysis under paragraph (1) shall be considered the <quote>best case</quote> Smart Grid analysis. On the basis of such an analysis for each product, the Secretary and the Administrator shall determine whether the installation of Smart Grid capability for such a product would be cost effective. For purposes of this paragraph, the term <quote>cost effective</quote> means that the cumulative savings from using the product under the best case Smart Grid circumstances for a period of one-half of the product’s expected useful life will be greater than the incremental cost of the Smart Grid features included in the product.</text> </paragraph><paragraph id="H64A361D2CBA64CAFA3F01977A1780F5E" indent="up1"><enum>(3)</enum><text>To the extent that including Smart Grid capability in any products analyzed under paragraph (2) is found to be cost effective in the best case, the Secretary and the Administrator shall, not later than 3 years after the date of enactment of this Act take each of the following actions:</text> <subparagraph id="HD04057692C014816865FF2D8BBD5E417"><enum>(A)</enum><text>Inform the manufacturer of such product of such finding of cost effectiveness.</text> </subparagraph><subparagraph id="H73E588D996104820B497E1D8D858E390"><enum>(B)</enum><text display-inline="yes-display-inline">Assess the potential contributions the development and use of products with Smart Grid technologies bring to reducing peak demand and promoting grid stability.</text> </subparagraph><subparagraph id="HD1599E698A3A427C84464E4FC7B568FE"><enum>(C)</enum><text>Assess the potential national energy savings and electricity cost savings that could be realized if Smart Grid potential were installed in the relevant products reviewed by the Energy Star program.</text> </subparagraph><subparagraph id="HDF0EF796A74F44BA9977177B28409FC3"><enum>(D)</enum><text>Assess and identify options for providing consumers information on products with Smart Grid capabilities, including the necessary conditions for cost-effective savings.</text> </subparagraph><subparagraph id="H0062CA7D741049589FEB6A5F19019792"><enum>(E)</enum><text display-inline="yes-display-inline">Submit a report to Congress summarizing the results of the assessment for each class of products, and presenting the potential energy and greenhouse gas savings that could result if Smart Grid capability were installed and utilized on such products.</text> </subparagraph></paragraph></subsection></section><section id="H97E274F4599D420A833DA615C287BBDF"><enum>143.</enum><header>Inclusions of Smart Grid capability on appliance ENERGY GUIDE labels</header><text display-inline="no-display-inline">Section 324(a)(2) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6294">42 U.S.C. 6294(a)(2)</external-xref>) is amended by adding the following at the end:</text> <quoted-block display-inline="no-display-inline" id="H5FBF87DB768A48539B4AF7B63331C040" style="OLC"> <subparagraph id="HB78EE552A58A419EA6426E2EC7B38500"><enum>(J)</enum><clause commented="no" display-inline="yes-display-inline" id="HD087480164E6480DAE6216D66F746DCA"><enum>(i)</enum><text>Not later than 1 year after the date of enactment of this subparagraph, the Federal Trade Commission shall initiate a rulemaking to consider making a special note in a prominent manner on any ENERGY GUIDE label for any product actually including Smart Grid capability that—</text> <subclause id="HC68323B1CF9F442AA1D54ACAA9C9C4F6" indent="up1"><enum>(I)</enum><text>Smart Grid capability is a feature of that product;</text> </subclause><subclause id="H75DADE43424D43A8A52E0DD7BC5575AA" indent="up1"><enum>(II)</enum><text>the use and value of that feature depended on the Smart Grid capability of the utility system in which the product was installed and the active utilization of that feature by the customer; and</text> </subclause><subclause id="H33F489F80A454BC8A48305B3AF4717CF" indent="up1"><enum>(III)</enum><text>on a utility system with Smart Grid capability, the use of the product’s Smart Grid capability could reduce the customer’s cost of the product’s annual operation by an estimated dollar amount range representing the result of incremental energy and electricity cost savings that would result from the customer taking full advantage of such Smart Grid capability.</text> </subclause></clause><clause id="H1BD9C420888D4F9ABC59FE22D48AC6C4" indent="up1"><enum>(ii)</enum><text>Not later than 3 years after the date of enactment of this subparagraph, the Commission shall complete the rulemaking initiated under clause (i).</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H3455709E225F4DC1BE653E4AE547572E"><enum>144.</enum><header>Smart Grid peak demand reduction goals</header> <subsection id="H5E1737344FF049B7A327C96B66466F9B"><enum>(a)</enum><header>Goals</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this section, each load-serving entity, or, at the option of the State, each State with respect to load-serving entities that the State regulates, shall determine and publish peak demand reduction goals for any load-serving entities that have an applicable baseline in excess of 250 megawatts.</text> </subsection><subsection id="H0278D62409DF49CAA3D339DD7DFFC494"><enum>(b)</enum><header>Baselines</header><paragraph commented="no" display-inline="yes-display-inline" id="H8055D5AF04644551806A24D7BAE37E92"><enum>(1)</enum><text>The Commission, in consultation with the Secretary and the Administrator, shall develop and publish, after an opportunity for public comment, but not later than 180 days after enactment of this section, a methodology to provide for adjustments or normalization to a load-serving entity’s applicable baseline over time to reflect changes in the number of customers served, weather conditions, general economic conditions, and any other appropriate factors external to peak demand management, as determined by the Commission.</text> </paragraph><paragraph id="HCFFD913A6D5147C386C864AAFA4C6A36" indent="up1"><enum>(2)</enum><text>The Commission shall support load-serving entities (including any load-serving entities with an applicable baseline of less than 250 megawatts that volunteer to participate in achieving the purposes of this section) in determining their applicable baselines, and in developing their peak demand reduction goals.</text> </paragraph><paragraph id="H9F670F715F35421BAD0ED19604436048" indent="up1"><enum>(3)</enum><text>The Secretary, in consultation with the Commission, the Administrator, and the North American Electric Reliability Corporation, shall develop a system and rules for measurement and verification of demand reductions.</text> </paragraph></subsection><subsection id="HE4CB8BDFC33D4663B59AE8DB2FD98778"><enum>(c)</enum><header>Peak demand reduction goals</header><paragraph commented="no" display-inline="yes-display-inline" id="H46F1FF440788446BBE991ECF60412BB3"><enum>(1)</enum><text display-inline="yes-display-inline">Peak demand reduction goals may be established for an individual load-serving entity, or, at the determination of a State, tribal, or regional entity, by that State, tribal, or regional entity for a larger region that shares a common system peak demand and for which peak demand reduction measures would offer regional benefit.</text> </paragraph><paragraph id="H8CC7A73AA1934A6FA0E452002CB1BB13" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">A State or regional entity establishing peak demand reduction goals shall cooperate, as necessary and appropriate, with the Commission, the Secretary, State regulatory commissions, State energy offices, the North American Electric Reliability Corporation, and other relevant authorities.</text> </paragraph><paragraph id="HB272CDECB8F14EE283FA6FCDC5FE9D21" indent="up1"><enum>(3)</enum><text>In determining the applicable peak demand reduction goals—</text> <subparagraph id="HAC9B7D150A67436DB6734B91D7B952F1"><enum>(A)</enum><text>States and other jurisdictional entities may utilize the results of the 2009 National Demand Response Potential Assessment, as authorized by section 571 of the National Energy Conservation Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8279">42 U.S.C. 8279</external-xref>); and</text> </subparagraph><subparagraph id="HA8A566A760F04445859D2FC2AD2CFC6A"><enum>(B)</enum><text>the relative economics of peak demand reduction and generation required to meet peak demand shall be evaluated in a neutral and objective manner.</text> </subparagraph></paragraph><paragraph id="HDDBDBB21E06E48D2A18D3FCC34E413BE" indent="up1"><enum>(4)</enum><text>The applicable peak demand reduction goals shall provide that—</text> <subparagraph id="HA58663DA881843D3828D4FA6818933C1"><enum>(A)</enum><text>load-serving entities will reduce or mitigate peak demand by a minimum percentage amount from the applicable baseline to a lower peak demand during calendar year 2012;</text> </subparagraph><subparagraph id="H736B3E8522594363918DEEF84D42427B"><enum>(B)</enum><text>load-serving entities will reduce or mitigate peak demand by a minimum percentage greater amount from the applicable baseline to a lower peak demand during calendar year 2015; and</text> </subparagraph><subparagraph id="H81E9AF31ECAC47ADB412830F05C8DC9D"><enum>(C)</enum><text display-inline="yes-display-inline">the minimum percentage reductions established as peak demand reduction goals shall be the maximum reductions that are realistically achievable with an aggressive effort to deploy Smart Grid and peak demand reduction technologies and methods, including but not limited to those listed in subsection (d).</text> </subparagraph></paragraph></subsection><subsection id="H692A9BEB21AF4A87B789E6F43C605A1F"><enum>(d)</enum><header>Plan</header><text>Each load-serving entity shall prepare a peak demand reduction plan that demonstrates its ability to meet each applicable goal by any or a combination of the following options:</text> <paragraph id="H4D1F794C5A2C40EEB91278E1C96D2856"><enum>(1)</enum><text display-inline="yes-display-inline">Direct reduction in megawatts of peak demand through—</text> <subparagraph id="H3F3DEF5DFFFB48659C32AA23FB711957"><enum>(A)</enum><text>energy efficiency measures (including efficient transmission wire technologies which significantly reduce line loss compared to traditional wire technology) with reliable and continued application during peak demand periods; or</text> </subparagraph><subparagraph id="H5EB2E1B7182D4680A51E3C3437A64AE2"><enum>(B)</enum><text>use of a Smart Grid.</text> </subparagraph></paragraph><paragraph id="HC2770E2861D947E2B934AC11CDA00C84"><enum>(2)</enum><text>Demonstration that an amount of megawatts equal to a stated portion of the applicable goal is contractually committed to be available for peak reduction through one or more of the following:</text> <subparagraph id="HCC5E61E0C4D848379C247EB2C14D7766"><enum>(A)</enum><text>Megawatts enrolled in demand response programs.</text> </subparagraph><subparagraph id="H3FEE822E133848158F61C1A6E52EDD9C"><enum>(B)</enum><text>Megawatts subject to the ability of a load-serving entity to call on demand response programs, smart appliances, smart electricity or energy storage devices, distributed generation resources on the entity’s customers’ premises, or other measures directly capable of actively, controllably, reliably, and dynamically reducing peak demand (<quote>dynamic peak management control</quote>).</text> </subparagraph><subparagraph id="H5DAC167B349D4512BF436FE8986247DE"><enum>(C)</enum><text>Megawatts available from distributed dynamic electricity or energy storage under agreement with the owner of that storage.</text> </subparagraph><subparagraph id="HA0F1EFC5395D498BA7465D26BDAD7E5F"><enum>(D)</enum><text>Megawatts committed from dispatchable distributed generation demonstrated to be reliable under peak period conditions and in compliance with air quality regulations.</text> </subparagraph><subparagraph id="HAD935C5267534B21A9220EA64ADA934D"><enum>(E)</enum><text>Megawatts available from smart appliances and equipment with Smart Grid capability available for direct control by the utility through agreement with the customer owning the appliances or equipment or with a third party pursuant to such agreements.</text> </subparagraph><subparagraph id="H99FFFE380E4045E78ABCE1B19464B111"><enum>(F)</enum><text>Megawatts from a demonstrated and assured minimum of distributed solar electric generation capacity in instances where peak period and peak demand conditions are directly related to solar radiation and accompanying heat.</text> </subparagraph></paragraph><paragraph id="H66F524D458D64D6F806C21061CB222F3"><enum>(3)</enum><text>If any of the methods listed in subparagraph (C), (D), or (E) of paragraph (2) are relied upon to meet its peak demand reduction goals, the load-serving entity must demonstrate this capability by operating a test during the applicable calendar year.</text> </paragraph><paragraph id="H4FE243140F9444049F6BAB38C1ACF5F0"><enum>(4)</enum><text>Nothing in this section shall require the publication in peak demand reduction goals or in any peak demand reduction plan of any information that is confidential for competitive or other reasons or that identifies individual customers.</text> </paragraph></subsection><subsection id="H45FF0EE154FF46618FBCF1B26CB06F28"><enum>(e)</enum><header>Existing authority and requirements</header><text>Nothing in this section diminishes or supersedes any authority of a State or political subdivision of a State to adopt or enforce any law or regulation respecting peak demand management, demand response, distributed energy storage, use of distributed generation, or the regulation of load-serving entities. The Commission, in consultation with States and Indian tribes having such peak management, demand response and distributed energy storage programs, shall to the maximum extent practicable, facilitate coordination between the Federal program and such State and tribal programs.</text> </subsection><subsection id="H9652E19873BF4600B6132B7254977173"><enum>(f)</enum><header>Relief</header><text>The Commission may, for good cause, grant relief to load-serving entities from the requirements of this section.</text> </subsection><subsection id="H939E09DFFA1642388A43850B3F6F795F"><enum>(g)</enum><header>Other laws</header><text>Except as provided in subsections (e) and (f), no law or regulation shall relieve any person of any requirement otherwise applicable under this section.</text> </subsection><subsection id="H7C392C58AA24416AAE30DBB09175176D"><enum>(h)</enum><header>Compliance</header><paragraph commented="no" display-inline="yes-display-inline" id="HF44855E65E254EAF9F30DBD451F55F48"><enum>(1)</enum><text>The Commission shall within 1 year after the date of enactment of this Act establish a public website where the Commission will provide information and data demonstrating compliance by States, Indian tribes regional entities, and load-serving entities with this section, including the success of load-serving entities in meeting applicable peak demand reduction goals.</text> </paragraph><paragraph id="HC130CF2F311842699F66B3E7874CDCD4" indent="up1"><enum>(2)</enum><text>The Commission shall, by April 1 of each year beginning in 2012, provide a report to Congress on compliance with this section and success in meeting applicable peak demand reduction goals and, as appropriate, shall make recommendations as to how to increase peak demand reduction efforts.</text> </paragraph><paragraph id="H2599679F1ADF49A89319FEC3EC1A5CAC" indent="up1"><enum>(3)</enum><text>The Commission shall note in each such report any State, political subdivision of a State, or load-serving entity that has failed to comply with this section, or is not a part of any region or group of load-serving entities serving a region that has complied with this section.</text> </paragraph><paragraph id="H7F39C9EDA60641D7B2D7B729192725BF" indent="up1"><enum>(4)</enum><text>The Commission shall have and exercise the authority to take reasonable steps to modify the process of establishing peak demand reduction goals and to accept adjustments to them as appropriate when sought by load-serving entities.</text> </paragraph></subsection><subsection id="HF495B577B89E492B8BB371DC662719C1"><enum>(i)</enum><header>Assistance and funding</header> <paragraph id="H63B096D17D0D4BFCBD5AEC5104ACDD07"><enum>(1)</enum><header>Assistance to States and tribes</header><text display-inline="yes-display-inline">Any costs incurred by States for activities undertaken pursuant to this section shall be supported by the use of emission allowances allocated to the States’ SEED Accounts or to the tribes pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.</text> </paragraph><paragraph id="H9F6D2D5BAD214523912CE96EDCD938BA"><enum>(2)</enum><header>Funding</header><text display-inline="yes-display-inline">There are authorized to be appropriated such sums as may be necessary to the Commission, the Secretary, and the Administrator to carry out the provisions of this section.</text> </paragraph></subsection></section><section id="HC60CFD0E7FB84C49B5618E4A52741C34"><enum>145.</enum><header> Reauthorization of energy efficiency public information program to include Smart Grid information</header> <subsection id="H9378A6293E0B451B916553667A10903C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 134 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15832">42 U.S.C. 15832</external-xref>) is amended as follows:</text> <paragraph id="H93288E2726434951B9E8A91B53B3A0BF"><enum>(1)</enum><text>By amending the section heading to read as follows: <quote><header-in-text level="section" style="OLC">Energy efficiency and Smart Grid public information initiative</header-in-text></quote>.</text> </paragraph><paragraph id="H1C132B9C7BD1472492683C29360411ED"><enum>(2)</enum><text>In paragraph (1) of subsection (a) by striking <quote>reduce energy consumption during the 4-year period beginning on the date of enactment of this Act</quote> and inserting <quote>increase energy efficiency and to adopt Smart Grid technology and practices</quote>.</text> </paragraph><paragraph id="HDFCA84B757024A178FB229BA71BCC29A"><enum>(3)</enum><text>In paragraph (2) of subsection (a) by striking <quote>benefits to consumers of reducing</quote> and inserting <quote>economic and environmental benefits to consumers and the United States of optimizing</quote>.</text> </paragraph><paragraph id="H5711126B954A4AE0A6E31A58136576B2"><enum>(4)</enum><text>In subsection (a) by inserting at the beginning of paragraph (3) <quote>the effect of energy efficiency and Smart Grid capability in reducing energy and electricity prices throughout the economy, together with</quote>.</text> </paragraph><paragraph id="H2A474865F995459CA3C34873B49A20A1"><enum>(5)</enum><text>In subsection (a)(4) by redesignating subparagraph (D) as (E), by striking <quote>and</quote> at the end of subparagraph (C), and by inserting after subparagraph (C) the following:</text> <quoted-block display-inline="no-display-inline" id="H68F76FBDF38A4F2BAB2FB267053DB2A7" style="OLC"> <subparagraph id="HD667DA061793421CBB6AAB954F60501D"><enum>(D)</enum><text display-inline="yes-display-inline">purchasing and utilizing equipment that includes Smart Grid features and capability; and</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HFF3A3F0AA06F42658FFB3C4CD2446D0A"><enum>(6)</enum><text>In subsection (c), by striking <quote>Not later than July 1, 2009,” and inserting, “For each year when appropriations pursuant to the authorization in this section exceed $10,000,000,</quote>.</text> </paragraph><paragraph id="H4409EB95DC1A4498A3E8044AF37C434C"><enum>(7)</enum><text>In subsection (d) by striking <quote>2010</quote> and inserting <quote>2020</quote>.</text> </paragraph><paragraph id="H1F5EF859097C46968BE762860E9808F6"><enum>(8)</enum><text>In subsection (e) by striking <quote>2010</quote> and inserting <quote>2020</quote>.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HEF8F5920781B4BC59E2A13C8102A2E57"><enum>(b)</enum><header>Table of contents</header><text display-inline="yes-display-inline">The item relating to section 134 in the table of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 and following) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H26DC637F8C8345BF9A5990276655E33B" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 134. Energy efficiency and Smart Grid public information initiative.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HC5495A6462F542D0ADCBF1E59946B397"><enum>146.</enum><header>Inclusion of Smart Grid features in appliance rebate program</header> <subsection id="H1196FE6866624A82A54803DAAE0AE914"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 124 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15821">42 U.S.C. 15821</external-xref>) is amended as follows:</text> <paragraph id="HAF28E506921F4FE2ABB9B132C7B0ABDB"><enum>(1)</enum><text>By amending the section heading to read as follows: <quote><header-in-text level="section" style="OLC">Energy efficient and smart appliance rebate program</header-in-text>.</quote>.</text> </paragraph><paragraph id="H984FA43669D04AABA49F23FE587317D9"><enum>(2)</enum><text>By redesignating paragraphs (4) and (5) of subsection (a) as paragraphs (5) and (6), respectively, and inserting after paragraph (3) the following:</text> <quoted-block display-inline="no-display-inline" id="HB1547640D43144C2AC93D7A6FD1F343B" style="OLC"> <paragraph id="H46E4666DD51B4DDEB405B4873EA47360"><enum>(4)</enum><header>Smart appliance</header><text display-inline="yes-display-inline">The term <quote>smart appliance</quote> means a product that the Administrator of the Environmental Protection Agency or the Secretary of Energy has determined qualifies for such a designation in the Energy Star program pursuant to section 142 of the <short-title>American Clean Energy and Security Act of 2009</short-title>, or that the Secretary or the Administrator has separately determined includes the relevant Smart Grid capabilities listed in section 1301 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/15/17381">15 U.S.C. 17381</external-xref>).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HBC8DC935FD074156B25CD92B29BC3BFF"><enum>(3)</enum><text>In subsection (b)(1) by inserting <quote>and smart</quote> after <quote>efficient</quote> and by inserting after <quote>products</quote> the first place it appears <quote>, including products designated as being smart appliances</quote>.</text> </paragraph><paragraph id="H82CCEF28E62A457494A49ABD67010716"><enum>(4)</enum><text>In subsection (b)(3), by inserting <quote>the administration of</quote> after <quote>carry out</quote>.</text> </paragraph><paragraph id="HBDFE8263C04343F39C17FA18092138F3"><enum>(5)</enum><text>In subsection (d), by inserting <quote>the administration of</quote> after <quote>carrying out</quote> and by inserting <quote>, and up to 100 percent of the value of the rebates provided pursuant to this section</quote> before the period at the end.</text> </paragraph><paragraph id="HE2B16993D2F5404EACC1FF29BA75ED9B"><enum>(6)</enum><text>In subsection (e)(3), by inserting <quote>, with separate consideration as applicable if the product is also a smart appliance,</quote> after <quote>Energy Star product</quote> the first place it appears and by inserting <quote>or smart appliance</quote> before the period at the end.</text> </paragraph><paragraph id="HD19B39C7393D44B1B18D567E6B9F0736"><enum>(7)</enum><text>In subsection (f), by striking <quote>$50,000,000</quote> through the period at the end and inserting <quote>$100,000,000 for each fiscal year from 2010 through 2015.</quote>.</text> </paragraph></subsection><subsection id="H1493B093D4B940DA926F84E992A43103"><enum>(b)</enum><header>Table of contents</header><text display-inline="yes-display-inline">The item relating to section 124 in the table of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 and following) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HC5B5B3D403D44F13A279431A90219B07" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 124. Energy efficient and smart appliance rebate program.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle><subtitle id="HFDC5CD08A129472DBBE4C375190AEFBB"><enum>F</enum><header>Transmission Planning</header> <section id="H650CA37B74E74FD79E2B6192A65E6927"><enum>151.</enum><header>Transmission planning and siting</header> <subsection id="H48E24DEDC6994A7C9AE8099D1BDA4E3D"><enum>(a)</enum><header>In general</header><text>Section 216 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824p">16 U.S.C. 824p</external-xref>) is amended as follows:</text> <paragraph id="H5C4562F025DF4250AF1B1A21BBC28C74"><enum>(1)</enum><text>In subsection (b), in paragraph (5), by striking <quote>; and</quote> and inserting a semicolon, in paragraph (6) by striking the period and inserting <quote>; and</quote> and by adding the following at the end thereof:</text> <quoted-block id="HD39D7F7351EA47F8ACCA196BC4188B5D" style="OLC"> <paragraph id="HB1F191EC6D2A4751BDC084DF23D21C3C"><enum>(7)</enum><text>the facility is interstate in nature or is an intrastate segment integral to a proposed interstate facility;</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HD5434B5DA1CA439381112360A4078CA1"><enum>(2)</enum><text>In subsection (k), by inserting at the end the following: <quote>Subsections (a), (b), (c), and (h) of this section shall not apply in the Western interconnection.</quote>.</text> </paragraph><paragraph id="H18C10B7F4F474E958A8971021D636769"><enum>(3)</enum><text>In subsections (d) and (e), by striking <quote>subsection (b)</quote> in each place and inserting <quote>subsection (b) or section 216B</quote>, and by striking <quote>permit</quote> and inserting <quote>permit or certificate</quote> in each place it appears.</text> </paragraph></subsection><subsection id="H5A1FFD7760CA48B493AAD110862DEC88"><enum>(b)</enum><header>New sections</header><text>The Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824p">16 U.S.C. 824p</external-xref>) is amended by inserting the following new sections after section 216:</text> <quoted-block display-inline="no-display-inline" id="HE4DE6B72CCD4487281AA443BE5BAD73E" style="OLC"> <section id="HB2ADE5232EB849669DF4FDD8CA9E728A"><enum>216A.</enum><header>Transmission planning</header> <subsection id="H26B1207CA57C4E14992FF5BC4C6EA711"><enum>(a)</enum><header>Federal policy for transmission planning</header> <paragraph id="H522525091EDF4FB095F1A37DA22039AD"><enum>(1)</enum><header>Objectives</header><text>It is the policy of the United States that regional electric grid planning should facilitate the deployment of renewable and other zero-carbon and low-carbon energy sources for generating electricity to reduce greenhouse gas emissions while ensuring reliability, reducing congestion, ensuring cyber-security, minimizing environmental harm, and providing for cost-effective electricity services throughout the United States, in addition to serving the objectives stated in section 217(b)(4).</text> </paragraph><paragraph id="H4EF995158FFF4588B12824FA7B82ACE9"><enum>(2)</enum><header>Options</header><text>In addition to the policy under paragraph (1), it is the policy of the United States that regional electric grid planning to meet these objectives should result from an open, inclusive and transparent process, taking into account all significant demand-side and supply-side options, including energy efficiency, distributed generation, renewable energy and zero-carbon electricity generation technologies, smart-grid technologies and practices, demand response, electricity storage, voltage regulation technologies, high capacity conductors with at least 25 percent greater efficiency than traditional ACSR (aluminum stranded conductors steel reinforced) conductors, superconductor technologies, underground transmission technologies, and new conventional electric transmission capacity and corridors.</text> </paragraph></subsection><subsection id="H83C0EBB6D4E949BA9206043DF82738D4"><enum>(b)</enum><header>Planning</header><text></text> <paragraph id="HC573D9EBC9EB404E849FB4B283A1F520"><enum>(1)</enum><header>Planning principles</header><text>Not later than 1 year after the date of enactment of this section, the Commission shall adopt, after notice and opportunity for comment, national electricity grid planning principles derived from the Federal policy established under subsection (a) to be applied in ongoing and future transmission planning that may implicate interstate transmission of electricity.</text> </paragraph><paragraph id="HDE516FD998194E418800BF27379FA8EA"><enum>(2)</enum><header>Regional planning entities</header><text>Not later than 3 months after the date of adoption by the Commission of national electricity grid planning principles pursuant to paragraph (1), entities that conduct or may conduct transmission planning pursuant to State, tribal, or Federal law or regulation, including States, Indian tribes, entities designated by States and Indian tribes, Federal Power Marketing Administrations, transmission providers, operators and owners, regional organizations, and electric utilities, and that are willing to incorporate the national electricity grid planning principles adopted by the Commission in their electric grid planning, shall identify themselves and the regions for which they propose to develop plans to the Commission.</text> </paragraph><paragraph id="H45388BBBB87E4516A8ACAEF3F2D2F365"><enum>(3)</enum><header>Coordination of regional planning entities</header><text>The Commission shall encourage regional planning entities described under paragraph (2) to cooperate and coordinate across regions and to harmonize regional electric grid planning with planning in adjacent or overlapping jurisdictions to the maximum extent feasible. The Commission shall work with States, Indian tribes, Federal land management agencies, State energy, environment, natural resources, and land management agencies and commissions, Federal power marketing administrations, electric utilities, transmission providers, load-serving entities, transmission operators, regional transmission organizations, independent system operators, and other organizations to resolve any conflict or competition among proposed planning entities in order to build consensus and promote the Federal policy established under subsection (a). The Commission shall seek to ensure that planning that is consistent with the national electricity grid planning principles adopted pursuant to paragraph (1) is conducted in all regions of the United States and the territories, but in a manner that, to the extent feasible, avoids uncoordinated planning by more than one planning entity for the same area.</text> </paragraph><paragraph id="H4472C5B1CA6746DF9A3EE39F80C90107"><enum>(4)</enum><header>Relation to existing planning policy</header><text>In implementing the Federal policy established under subsection (a), the Commission shall—</text> <subparagraph id="H95F528BF34DF4E019441EA0880212918"><enum>(A)</enum><text>incorporate and coordinate with any ongoing planning efforts undertaken pursuant to section 217 and Commission Order No. 890;</text> </subparagraph><subparagraph id="H52F2272AE037476EB4D542497190EC1D"><enum>(B)</enum><text>coordinate with the Secretary of Energy in providing to the regional planning entities an annual summary of national energy policy priorities and goals;</text> </subparagraph><subparagraph id="H8A3D05A6848F4DB6BA221F4956D78D63"><enum>(C)</enum><text>coordinate with corridor designation and planning functions carried out pursuant to section 216 by the Secretary of Energy, who shall provide financial support from available funds to support the purposes of this section; and</text> </subparagraph><subparagraph id="H953E69400852408F9EAB3963EE9BA572"><enum>(D)</enum><text>coordinate with the Secretaries of the Interior and Agriculture and Indian tribes in carrying out the Secretaries’ or tribal governments’ existing responsibilities for the planning or siting of transmission facilities on Federal or tribal lands, consistent with law, policy, and regulations relating to the management of federal public lands.</text> </subparagraph></paragraph><paragraph id="H5B2AF399DBBA45438929B210DF113554"><enum>(5)</enum><header>Assistance</header><text></text> <subparagraph id="HFFBD0B9043594A2292FA3B67C4027174"><enum>(A)</enum><header>In general</header><text>The Commission shall provide support to and may participate if invited to do so in the regional grid planning processes conducted by regional planning entities. The Secretary of Energy and the Commission may provide planning resources and assistance as required or as requested by regional planning entities, including system data, cost information, system analysis, technical expertise, modeling support, dispute resolution services, and other assistance to regional planning entities, as appropriate.</text> </subparagraph><subparagraph id="H77EB70910F2B4C698AC90736FA45C8CA"><enum>(B)</enum><header>Authorization</header><text>There are authorized to be appropriated such sums as may be necessary to carry out this paragraph.</text> </subparagraph></paragraph><paragraph id="H29BB4A34BE3F4C93A056912DD696ECFC"><enum>(6)</enum><header>Conflict resolution</header><text>In the event that regional grid plans conflict, the Commission shall assist the regional planning entities in resolving such conflicts in order to achieve the objectives of the Federal policy established under subsection (a).</text> </paragraph><paragraph id="H1CF8838A033B4BB299C57F3C3339099C"><enum>(7)</enum><header>Submission of plans</header><text>The Commission shall require regional planning entities to submit initial regional electric grid plans to the Commission not later than 18 months after the date the Commission promulgates national electricity grid planning principles pursuant to paragraph (1), with updates to such plans not less than every 3 years thereafter. The Commission shall review such plans for consistency with the national grid planning principles and may return a plan to one or more planning entities for further consideration, along with the Commission’s own recommendations for resolution of any conflict or for improvement.</text> </paragraph><paragraph id="H4D3D61429ABD406394BBFC1CA09E578C"><enum>(8)</enum><header>Integration of plans</header><text>Regional electric grid plans should, in general, be developed from sub-regional requirements and plans, including planning input reflecting individual utility service areas. Regional plans may then in turn be combined into larger regional plans, up to interconnection-wide and national plans, as appropriate and necessary as determined by the Commission. In no case shall a multi-regional plan impose inclusion of a facility on a region that has submitted a valid plan that, after efforts to resolve the conflict, does not include such facility. To the extent practicable, all plans submitted to the Commission shall be public documents and available on the Commission’s Web site.</text> </paragraph><paragraph id="H399AC92F01D84F0A8A90C167355B0BE4"><enum>(9)</enum><header>Multi-regional meetings</header><text>As regional grid plans are submitted to the Commission, the Commission may convene multi-regional meetings to discuss regional grid plan consistency and integration, including requirements for multi-regional projects, and to resolve any conflicts that emerge from such multi-regional projects. The Commission shall provide its recommendations for eliminating any inter-regional conflicts.</text> </paragraph><paragraph id="H7E39630A4EB64935A795FD4444D5F65F"><enum>(10)</enum><header>Report to congress</header><text>Not later than 3 years after the date of enactment of this section and each 3 years thereafter, the Commission shall provide a report to Congress containing the results of the regional grid planning process, including summaries of the adopted regional plans and the extent to which the Federal policy objectives in subsection (a) have been successfully achieved. The Commission shall provide an electronic version of its report on its website with links to all regional and sub-regional plans taken into account. The Commission shall note and provide its recommended resolution for any conflicts not resolved during the planning process. The Commission shall make any recommendations to Congress on the appropriate Federal role or support required to address the needs of the electric grid, including recommendations for addressing any needs that are beyond the reach of existing State, tribal, and Federal authority.</text> </paragraph></subsection></section><section id="H4C1A4071CE39418987C63374A02E5C79"><enum>216B.</enum><header>Siting and construction in the Western Interconnection</header> <subsection id="H9BAD9DA997454A658FEB9F8538C73BE2"><enum>(a)</enum><header>Applicability</header><text>This section applies only to States located in the Western Interconnection and does not apply to States located in the Eastern Interconnection, to the States of Alaska or Hawaii, or to ERCOT.</text> </subsection><subsection id="H366129B9891F45869619E509F7AA91D4"><enum>(b)</enum><header>Certificate of public convenience and necessity</header><text>The Commission may, after notice and opportunity for hearing, issue a certificate of public convenience and necessity for the construction or modification of a transmission facility if the Commission finds that—</text> <paragraph id="H5F5BDF0AAF184B3F90BCA6BC8E097A76"><enum>(1)</enum><text>the facility was identified and included in one or more relevant and final regional or interconnection-wide electric grid plans submitted to the Commission pursuant to subsection (b) of 216A;</text> </paragraph><paragraph id="H802B58EE160F46FDA78D6735BC298831"><enum>(2)</enum><text>any conflict among regional electric grid plans concerning the need for the facility was resolved;</text> </paragraph><paragraph id="H8C032437114A4CAB9BA639137E3D11A2"><enum>(3)</enum><text>such relevant regional electric grid plans are consistent with the national grid planning principles adopted by the Commission pursuant to subsection (b);</text> </paragraph><paragraph id="H65F879AC6CA34CCC8214D00F55E486FD"><enum>(4)</enum><text>the facility was identified as needed in significant measure to meet demand for renewable energy in such plans;</text> </paragraph><paragraph id="H57F93454E276471FA72D2C5E6C79C505"><enum>(5)</enum><text>the facility is a multistate facility;</text> </paragraph><paragraph id="H433285C279C0498C935DD380023590D4"><enum>(6)</enum><text>the developer of such facility filed a complete application seeking approval for the siting of the facility with a state commission or other entity that has authority to approve the siting of the facility;</text> </paragraph><paragraph id="H4FCF4D4E116E43C98235CAA847B82955"><enum>(7)</enum><text>a State commission or other entity that has authority to approve the siting of the facility—</text> <subparagraph id="HE951C6F401264E9B8E428DF1399F8D10"><enum>(A)</enum><text>did not issue a decision on an application seeking approval for the siting of the facility within 1 year after the date the applicant submitted a completed application to the State;</text> </subparagraph><subparagraph id="H7D0F0316A2E74DC996A69BF36A7EECB8"><enum>(B)</enum><text>denied a complete application seeking approval for the siting of the facility; or</text> </subparagraph><subparagraph id="HF9CA3E4774774EAE940D6C1CC4677B93"><enum>(C)</enum><text>authorized the siting of the facility subject to conditions that unreasonably interfere with the development of the facility; and</text> </subparagraph></paragraph><paragraph id="H80D23BBC1F6A4A5BBAB622606623FD85"><enum>(8)</enum><text>the siting of the facility can be accomplished in a manner consistent with the Federal policy established in subsection (a) of section 216A and the national grid planning principles adopted by the Commission pursuant to subsection (b) of section 216A.</text> </paragraph></subsection><subsection id="H7220911F35134F66B8B5324F9ADF2D4D"><enum>(c)</enum><header>State recommendations on resource protection</header><text>In issuing a final certificate of public convenience and necessity pursuant to subsection (b), the Commission shall—</text> <paragraph id="H3307BD47FE1E439BB34CA0EA62731DD3"><enum>(1)</enum><text>consider any siting constraints and mitigation measures based on habitat protection, health and safety considerations, environmental considerations, or cultural site protection identified by relevant State or local authorities; and</text> </paragraph><paragraph id="HD9E155F6A8DB48D3AC72903EC1711050"><enum>(2)</enum><text>incorporate those identified siting constraints or mitigation measures, including recommendations related to project routing, as conditions in the final certificate of public convenience and necessity, or if the Commission determines that a recommended siting constraint or mitigation measure is infeasible, excessively costly, or inconsistent with the Federal policy established in subsection (a) of section 216A or the national grid planning principles adopted by the Commission pursuant to subsection (b) of section 216A—</text> <subparagraph id="H17122601FA4F43A4B79B54426A049EBC"><enum>(A)</enum><text>consult with State regulatory agencies to seek to resolve the issue;</text> </subparagraph><subparagraph id="HDCE43B3FA11A450180ED3CFC6C22C932"><enum>(B)</enum><text display-inline="yes-display-inline">incorporate as conditions on the certificate such recommended siting constraints or mitigation measures as are determined to be appropriate by the Commission, based on consultation by the Commission with State regulatory agencies, the Federal policy established in subsection (a) of section 216A and the national grid planning principles adopted by the Commission pursuant to subsection (b)of section 216A, and the record before the Commission; and</text> </subparagraph><subparagraph id="H665B4ACF700642CA9F6BADC9858D749E"><enum>(C)</enum><text>if, after consultation, the Commission does not adopt in whole or in part a recommendation of an agency, publish a finding that the adoption of the recommendation is infeasible, not cost effective, or inconsistent with this section or other applicable provisions of law.</text> </subparagraph></paragraph></subsection><subsection id="H3DC0F0C3C6FC4F83A699D5FE2E509264"><enum>(d)</enum><header>Certificate applications</header><paragraph commented="no" display-inline="yes-display-inline" id="H9A7DEE4A4BCC4DE1A98F8030E1A99B77"><enum>(1)</enum><text>An application for a preliminary or final certificate of public convenience and necessity under this subsection shall be made in writing to the Commission.</text> </paragraph><paragraph id="H90754AA3219F4E7F88462F3958E2A8F1" indent="up1"><enum>(2)</enum><text>The Commission shall issue rules specifying—</text> <subparagraph id="HB65099F18B9D4CDD985DDC58BCEC2FE1"><enum>(A)</enum><text>the form of the application;</text> </subparagraph><subparagraph id="H50B2DA79ECFB448CA6936BB190FD0F07"><enum>(B)</enum><text>the information to be contained in the application; and</text> </subparagraph><subparagraph id="H2ED35079036D4ED9B65CED1FA0A85310"><enum>(C)</enum><text>the manner of service of notice of the application on interested persons.</text> </subparagraph></paragraph></subsection><subsection id="HCA6004D81E0046AF992277A97D7ABF2F"><enum>(e)</enum><header>Coordination of Federal authorizations for transmission facilities</header> <paragraph id="HC3E9898611CC42EF86D8C5656B26119C"><enum>(1)</enum><text>In this subsection, the term <quote>Federal authorization</quote> shall have the same meaning and include the same actions as in section 216(h).</text> </paragraph><paragraph id="H3CAB9134FA754763A625D53919CD4701"><enum>(2)</enum><text>The Federal Energy Regulatory Commission shall act as the lead agency for purposes of coordinating all applicable Federal authorizations and related environmental reviews of the facility, provided, however, that to the extent the facility is proposed to be sited on Federal lands, the Department of the Interior will assume such lead-agency duties as agreed between the Commission and the Department of Interior.</text> </paragraph><paragraph id="H069DFB8F1DD244B2A7EC8E4F2194CF9E"><enum>(3)</enum><text>To the maximum extent practicable under applicable Federal law, the Commission, and to the extent agreed, the Secretary of Interior, shall coordinate the Federal authorization and review process under this subsection with any Indian tribes, multistate entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the facility, to ensure timely and efficient review and permit decisions.</text> </paragraph><paragraph id="H02083A2C414A4300949CC49602D90299"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H326641A588A54CB4A73652710A8F5FD7"><enum>(A)</enum><text>As head of the lead agency, the Chairman of the Commission, in consultation with the Secretary of Interior and with those entities referred to in paragraph (3) that are willing to coordinate their own separate permitting and environmental reviews with the Federal authorization and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of, and Federal authorization decisions relating to, the proposed facility.</text> </subparagraph><subparagraph id="H9553675CEF5B46B6B72B2EB12C74E768" indent="up1"><enum>(B)</enum><text>The Chairman of the Commission, or the Secretary of Interior, as agreed under paragraph (2), shall ensure that, once an application has been submitted with such data as the lead agency considers necessary, all permit decisions and related environmental reviews under all applicable Federal laws shall be completed—</text> <clause id="HB28A42B6056540DEA06042B23CDD00B6"><enum>(i)</enum><text>within 1 year; or</text> </clause><clause id="H4D92610B98B2409DB703528DC79FC09C"><enum>(ii)</enum><text>if a requirement of another provision of Federal law does not permit compliance with clause (i), as soon thereafter as is practicable.</text> </clause></subparagraph><subparagraph id="H83F354FD3A774916B716FFF12BEF1726" indent="up1"><enum>(C)</enum><text>The Commission shall provide an expeditious pre-application mechanism for prospective applicants to confer with the agencies involved to have each such agency determine and communicate to the prospective applicant not later than 60 days after the prospective applicant submits a request for such information concerning—</text> <clause id="HFDAE95D57E334033BC9830A12A3361BC"><enum>(i)</enum><text>the likelihood of approval for a potential facility; and</text> </clause><clause id="H3E6A9FE40FA0433F884D815FE1108646"><enum>(ii)</enum><text>key issues of concern to the agencies and public.</text> </clause></subparagraph></paragraph><paragraph id="H7DFC1CAA020E4B4996CF12C309680B7F"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HE5E9196138244FC6A54D83386B0AFA46"><enum>(A)</enum><text>As lead agency head, the Chairman of the Commission, in consultation with the affected agencies, shall prepare a single environmental review document, which shall be used as the basis for all decisions on the proposed project under Federal law.</text> </subparagraph><subparagraph id="H4DFD1B5E3C21497391417C1D4B8374B6" indent="up1"><enum>(B)</enum><text>The Chairman of the Commission and the heads of other agencies shall streamline the review and permitting of transmission within corridors designated under section 503 of the Federal Land Policy and Management Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1763">43 U.S.C. 1763</external-xref>) by fully taking into account prior analyses and decisions relating to the corridors.</text> </subparagraph><subparagraph id="H4EF809ABC60B454593246EBE03D1C51D" indent="up1"><enum>(C)</enum><text>The document shall include consideration by the relevant agencies of any applicable criteria or other matters as required under applicable law.</text> </subparagraph></paragraph><paragraph id="H61E3E399342C4C4ABF871B120E3E8A15"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H0D0579A42FF944F5A0F6F4E1EC937DCD"><enum>(A)</enum><text>If any agency has denied a Federal authorization required for a transmission facility, or has failed to act by the deadline established by the Commission pursuant to this section for deciding whether to issue the authorization, the applicant or any State in which the facility would be located may file an appeal with the President, who shall, in consultation with the affected agency, review the denial or failure to take action on the pending application.</text> </subparagraph><subparagraph id="HD0A3A03997674410A6C9524FAD34A758" indent="up1"><enum>(B)</enum><text>Based on the overall record and in consultation with the affected agency, the President may—</text> <clause id="H01729DE342274ABF9D9C7D74E9FB1AB9"><enum>(i)</enum><text>issue the necessary authorization with any appropriate conditions; or</text> </clause><clause id="HEEC8343C7C954A73A533D3E29DF359ED"><enum>(ii)</enum><text>deny the application.</text> </clause></subparagraph><subparagraph id="HAE48DFB9E81A453690CA030AAB7762FE" indent="up1"><enum>(C)</enum><text>The President shall issue a decision not later than 90 days after the date of the filing of the appeal.</text> </subparagraph><subparagraph id="HFA8DEE4FD13C4A69B8EA01586A695F34" indent="up1"><enum>(D)</enum><text>In making a decision under this paragraph, the President shall comply with applicable requirements of Federal law, including any requirements of—</text> <clause id="H2D2F49D24C2842A18732B8182CC087B1"><enum>(i)</enum><text>the National Forest Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/16/472a">16 U.S.C. 472a et seq.</external-xref>);</text> </clause><clause id="H7D81F7B83B3A47E397DCECB7FA6AC85A"><enum>(ii)</enum><text>the Endangered Species Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/16/1531">16 U.S.C. 1531 et seq.</external-xref>);</text> </clause><clause id="HEF549B2B2BDB407B9FE0DA503A8C9AEF"><enum>(iii)</enum><text>the Federal Water Pollution Control Act (<external-xref legal-doc="usc" parsable-cite="usc/33/1251">33 U.S.C. 1251 et seq.</external-xref>);</text> </clause><clause id="H1C9178581679446382E4E7EB8271CF84"><enum>(iv)</enum><text>the National Environmental Policy Act of 1969 (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>); and</text> </clause><clause id="HAB1A06601C72457BAEE5B476F4A56B3B"><enum>(v)</enum><text>the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1701">43 U.S.C. 1701 et seq.</external-xref>).</text> </clause></subparagraph></paragraph><paragraph id="HCE0D88876E7F4CBAADF25A487865DC13"><enum>(7)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H9BF54CAE3FF84E97B8E9E3E8AE141622"><enum>(A)</enum><text>Not later than 18 months after August 8, 2005, the Commission or, as requested, the Secretary or Interior, shall issue any regulations necessary to implement this subsection.</text> </subparagraph><subparagraph id="H16445699EA9C417A855324D357373EF8" indent="up1"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H1DE8C92008484453998CEF39061C6230"><enum>(i)</enum><text>Not later than 1 year after August 8, 2005, the Commission, the Secretary of Interior, and the heads of all Federal agencies with authority to issue Federal authorizations shall enter into a memorandum of understanding to ensure the timely and coordinated review and permitting of electricity transmission facilities.</text> </clause><clause id="HB6A8629D7A784230B15357AEFB89C4A1" indent="up1"><enum>(ii)</enum><text>Interested Indian tribes, multistate entities, and State agencies may enter the memorandum of understanding.</text> </clause></subparagraph><subparagraph id="H2C330A74976E477890A74991238D2A85" indent="up1"><enum>(C)</enum><text>The head of each Federal agency with authority to issue a Federal authorization shall designate a senior official responsible for, and dedicate sufficient other staff and resources to ensure, full implementation of the regulations and memorandum required under this paragraph.</text> </subparagraph></paragraph><paragraph id="H934CE7D1FC4A4BD2AE9A71F827BEA620"><enum>(8)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HE624B1087621479E8751DA7D1790A417"><enum>(A)</enum><text>Each Federal land use authorization for an electricity transmission facility shall be issued—</text> <clause id="H7859E2F4E58D4D1CADCA9B6F7C865A36" indent="up1"><enum>(i)</enum><text>for a duration, as determined by the Secretary of Interior, commensurate with the anticipated use of the facility; and</text> </clause><clause id="H228C86D739574707A85FDD20490E3495" indent="up1"><enum>(ii)</enum><text>with appropriate authority to manage the right-of-way for reliability and environmental protection.</text> </clause></subparagraph><subparagraph id="HE8CC25E2D88541FDA6B36FE7D13255C1" indent="up1"><enum>(B)</enum><text>On the expiration of the authorization (including an authorization issued before August 8, 2005), the authorization shall be reviewed for renewal taking fully into account reliance on such electricity infrastructure, recognizing the importance of the authorization for public health, safety, and economic welfare and as a legitimate use of Federal land.</text> </subparagraph></paragraph><paragraph id="H9EE35277DB8546A3ABF34FEB94AEDCB0"><enum>(9)</enum><text>In exercising the responsibilities under this section, the Commission shall consult regularly with—</text> <subparagraph id="HFDFE4F3FCDBC416F92645F7B63F97374"><enum>(A)</enum><text>electric reliability organizations (including related regional entities) approved by the Commission; and</text> </subparagraph><subparagraph id="HF67E2766B42949C2BC6B7A06FE0CE7B0"><enum>(B)</enum><text>Transmission Organizations approved by the Commission.</text> </subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H790F5D6F6D9D4C7DA31A10955CCB3551"><enum>152.</enum><header>Net metering for Federal agencies</header> <subsection id="H42DE02FF4BBD44DD82A2D38BFE465FEA"><enum>(a)</enum><header>Standard</header><text>Subsection (b) of section 113 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2623">16 U.S.C. 2623</external-xref>) is amended by adding the following new paragraph at the end thereof:</text> <quoted-block display-inline="no-display-inline" id="HFFECD464848B44138709D4C3A93B4D88" style="OLC"> <paragraph id="HA0F2D6390BA14099AADF977EE2C8ECDB"><enum>(6)</enum><header>Net metering for Federal agencies</header><text display-inline="yes-display-inline">Each electric utility shall offer to arrange (either directly or through a third party) to make interconnection and net metering available to Federal Government agencies, offices, or facilities in accordance with the requirements of section 115(j). The standard under this paragraph shall apply only to electric utilities that sold over 4,000,000 megawatt hours of electricity in the preceding year to the ultimate consumers thereof. In the case of a standard under this paragraph, a period of 1 year after the date of the enactment of this section shall be substituted for the 2-year period referred to in other provisions of this section.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H4B0BB64E457542418532326B2F3504B5"><enum>(b)</enum><header>Special rules</header><text display-inline="yes-display-inline">Section 115 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2625">16 U.S.C. 2625</external-xref>) is amended by adding the following new subsection at the end thereof:</text> <quoted-block display-inline="no-display-inline" id="HFA81DF072AC2471B92F7BF71ADE2352A" style="OLC"> <subsection id="H8826674AD4684DE38811FD2EE1AD2E8D"><enum>(j)</enum><header>Net metering for Federal agencies</header><paragraph commented="no" display-inline="yes-display-inline" id="HA772026B85D640FE95D8F7692B3863B5"><enum>(1)</enum><text>The standard under paragraph (6) of section 113(b) shall require that rates and charges and contract terms and conditions for the sale of electric energy to the Federal Government or agency shall be the same as the rates and charges and contract terms and conditions that would be applicable if the agency did not own or operate a qualified generation unit and use a net metering system.</text> </paragraph><paragraph id="H76199DA17EFA4CEF9907B4385B8A0670" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HB8F3988187D3430A810E63E8D51B35C8"><enum>(A)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that each electric utility shall arrange to provide to the Government office or agency that qualifies for net metering an electrical energy meter capable of net metering and measuring, to the maximum extent practicable, the flow of electricity to or from the customer, using a single meter and single register, the cost of which shall be recovered from the customer.</text> </subparagraph><subparagraph id="H194DC370BABE41B39C41378933364EBF" indent="up1"><enum>(B)</enum><text>In a case in which it is not practicable to provide a meter under subparagraph (A), the utility (either directly or through a third party) shall, at the expense of the utility install 1 or more of those electric energy meters.</text> </subparagraph></paragraph><paragraph id="H9D63D192F4A1414EB5B0E7AA75286E13" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H4E60DDF74D744048B6A0AD1055124516"><enum>(A)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that each electric utility shall calculate the electric energy consumption for the Government office or agency using a net metering system that meets the requirements of this subsection and paragraph (6) of section 113(b) and shall measure the net electricity produced or consumed during the billing period using the metering installed in accordance with this paragraph.</text> </subparagraph><subparagraph id="HB72FEFECC2B641EEB1FAF9F3DB386867" indent="up1"><enum>(B)</enum><text>If the electricity supplied by the retail electric supplier exceeds the electricity generated by the Government office or agency during the billing period, the Government office or agency shall be billed for the net electric energy supplied by the retail electric supplier in accordance with normal billing practices.</text> </subparagraph><subparagraph id="HB9AB3F864C344076BFB1B3CB221C7B66" indent="up1"><enum>(C)</enum><text>If electric energy generated by the Government office or agency exceeds the electric energy supplied by the retail electric supplier during the billing period, the Government office or agency shall be billed for the appropriate customer charges for that billing period and credited for the excess electric energy generated during the billing period, with the credit appearing as a kilowatt-hour credit on the bill for the following billing period.</text> </subparagraph><subparagraph id="H6E818EE740AB494E89D6858D39644434" indent="up1"><enum>(D)</enum><text>Any kilowatt-hour credits provided to the Government office or agency as provided in this subsection shall be applied to the Government office or agency electric energy consumption on the following billing period bill (except for a billing period that ends in the next calendar year). At the beginning of each calendar year, any unused kilowatt-hour credits remaining from the preceding year will carry over to the new year.</text> </subparagraph></paragraph><paragraph id="HB08F00E200FB42099FC0E74D471180DE" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that each electric utility shall offer a meter and retail billing arrangement that has time-differentiated rates. The kilowatt-hour credit shall be based on the ratio representing the difference in retail rates for each time-of-use rate, or the credits shall be reflected on the bill of the Government office or agency as a monetary credit reflecting retail rates at the time of generation of the electric energy by the customer-generator.</text> </paragraph><paragraph id="H20C18651D9C849E9B87257AFDC768783" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that the qualified generation unit, interconnection standards, and net metering system used by the Government office or agency shall meet all applicable safety and performance and reliability standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, and the American National Standards Institute.</text> </paragraph><paragraph id="H7EE70FBA9ED74793899846E777CA2E05" indent="up1"><enum>(6)</enum><text display-inline="yes-display-inline">The standard under paragraph (6) of section 113(b) shall require that electric utilities shall not make additional charges, including standby charges, for equipment or services for safety or performance that are in addition to those necessary to meet the other standards and requirements of this subsection and paragraph (6) of section 113(b).</text> </paragraph><paragraph id="H97B413466CDC4FDA959283566AC1C7D2" indent="up1"><enum>(7)</enum><text display-inline="yes-display-inline">For purposes of this subsection and paragraph (6) of section 113(b):</text> <subparagraph id="HBA8895BF451D48EE9B9757E393025BB8"><enum>(A)</enum><text>The term ‘Government’ means any office, facility, or agency of the Federal Government.</text> </subparagraph><subparagraph id="H97040EDB6C144656A1C62B3AC7F0468D"><enum>(B)</enum><text>The term ‘customer-generator’ means the owner or operator of a electricity generation unit.</text> </subparagraph><subparagraph id="HE81DF08EC4F843F7B964C726CA539374"><enum>(C)</enum><text>The term ‘electric generation unit’ means any renewable electric generation unit that is owned, operated, or sited on a Federal Government facility.</text> </subparagraph><subparagraph id="H6AB64172E609426E90A28A6AF10D66BB"><enum>(D)</enum><text>The term ‘net metering’ means the process of—</text> <clause id="H955FA6EE798149A4A5408C07D7247B3E"><enum>(i)</enum><text>measuring the difference between the electricity supplied to a customer-generator and the electricity generated by the customer-generator that is delivered to a utility at the same point of interconnection during an applicable billing period; and</text> </clause><clause id="HA7B73ACD2D29448790FED4FBC361A7F4"><enum>(ii)</enum><text>providing an energy credit to the customer-generator in the form of a kilowatt-hour credit for each kilowatt-hour of electricity produced by the customer-generator from an electric generation unit.</text> </clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC03C40F318764FC9B45FF2561BA571A2"><enum>(c)</enum><header>Savings provision</header><text>If this section or a portion of this section is determined to be invalid or unenforceable, that shall not affect the validity or enforceability of any other provision of this Act.</text> </subsection></section><section id="HBD8AEDCACC7B4C6D9BE06A2B69480FB9"><enum>153.</enum><header>Support for qualified advanced electric transmission manufacturing plants, qualified high efficiency transmission property, and qualified advanced electric transmission property</header> <subsection id="H6F894067CAF3462FA756DC484C63554B"><enum>(a)</enum><header>Loan Guarantees Prior to September 30, 2011</header><text>Section 1705(a) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16515">42 U.S.C. 16515(a)</external-xref>), as added by section 406 of the American Recovery and Reinvestment Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/109/58">Public Law 109–58</external-xref>; 119 Stat. 594) is amended by adding the following new paragraph at the end thereof:</text> <quoted-block id="H2B99C1F04FA6461994DC7073C27A0C5E" style="OLC"> <paragraph id="H04104027C503453884FBC06CD455C21E"><enum>(5)</enum><text>The development, construction, acquisition, retrofitting, or engineering integration of a qualified advanced electric transmission manufacturing plant or the construction of a qualified high efficiency transmission property or a qualified advanced electric transmission property (whether by construction of new facilities or the modification of existing facilities). For purposes of this paragraph:</text> <subparagraph id="HB335CC6F3E144124BEEA5DDA0D9316FE"><enum>(A)</enum><text>The term <quote>qualified advanced electric transmission property</quote> means any high voltage electric transmission cable, related substation, converter station, or other integrated facility that—</text> <clause id="HC376F8552A264E1FB7BB3CD866C26A3A"><enum>(i)</enum><text>utilizes advanced ultra low resistance superconductive material or other advanced technology that has been determined by the Secretary of Energy as—</text> <subclause id="HDCD93A434D774D07A1EFF6E900099F3F"><enum>(I)</enum><text>reasonably likely to become commercially viable within 10 years after the date of enactment of this paragraph;</text> </subclause><subclause id="HFDDFBB0AA44F4955973ECF3D1AEC0EB4"><enum>(II)</enum><text>capable of reliably transmitting at least 5 gigawatts of high-voltage electric energy for distances greater than 300 miles with energy losses not exceeding 3 percent of the total power transported; and</text> </subclause><subclause id="HAF7323D1AB494E41955112AAB98E916C"><enum>(III)</enum><text>not creating an electromagnetic field;</text> </subclause></clause><clause id="H97EB3411C1A2410EAB9A57684AA19ED2"><enum>(ii)</enum><text>has been determined by an appropriate energy regulatory body, upon application, to be in the public interest and thereby eligible for inclusion in regulated rates; and</text> </clause><clause id="HDE165AB115704FA79135ECF387EB4D4F"><enum>(iii)</enum><text>can be located safely and economically in a permanent underground right of way not to exceed 25 feet in width.</text> </clause><continuation-text continuation-text-level="subparagraph">The term <quote>qualified advanced electric transmission property</quote> shall not include any property placed in service after December 31, 2016.</continuation-text></subparagraph><subparagraph id="H914BB83ED4CE4429B0B9AB987FA3D977"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H9896624539CC48BE949C9147794A8CA0"><enum>(i)</enum><text>The term <quote>qualified high efficiency transmission property</quote> means any high voltage overhead electric transmission line, related substation, or other integrated facility that—</text> <subclause id="HAFC2146B158645629C6704047388C894" indent="up1"><enum>(I)</enum><text>utilizes advanced conductor core technology that—</text> <item id="HD2EFF97BB2FC49CAB8C1FB560A346EE8"><enum>(aa)</enum><text>has been determined by the Secretary of Energy as reasonably likely to become commercially viable within 10 years after the date of enactment of this paragraph;</text> </item><item id="HAD3C71F79C6A4B29974408D5489F53F6"><enum>(bb)</enum><text>is suitable for use on transmission lines up to 765kV; and</text> </item><item id="H54F68480D6094EE2A956D6D44E5C5619"><enum>(cc)</enum><text>exhibits power losses at least 30 percent lower than that of transmission lines using conventional <quote>ACSR</quote> conductors;</text> </item></subclause><subclause id="H8766D6BD5B0E4AB4B206F36517126562" indent="up1"><enum>(II)</enum><text>has been determined by an appropriate energy regulatory body, upon application, to be in the public interest and thereby eligible for inclusion in regulated rates; and</text> </subclause><subclause id="H9EB864E3A8644E21B39C5A0A2AD2212C" indent="up1"><enum>(III)</enum><text>can be located safely and economically in a right of way not to exceed that used by conventional <quote>ACSR</quote> conductors; and</text> </subclause></clause><clause id="H90D6D7B1A49F40129596F8866025AEF2" indent="up1"><enum>(ii)</enum><text>The term <quote>qualified high efficiency transmission property</quote> shall not include any property placed in service after December 31, 2016.</text> </clause></subparagraph><subparagraph id="H7B950BBE61D345B79E2296728B466A60"><enum>(C)</enum><text>The term <quote>qualified advanced electric transmission manufacturing plant</quote> means any industrial facility located in the United States which can be equipped, re-equipped, expanded, or established to produce in whole or in part qualified advanced electric transmission property.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H7C235A4AAFC84BBF8A44208FB8F320C9"><enum>(b)</enum><header>Additional Loan Guarantee Authority</header><text>Section 1703 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16513">42 U.S.C. 16513</external-xref>) is amended by adding the following new paragraph at the end of subsection (b):</text> <quoted-block id="HCCF3840E2B394DD3BA47131C9B8BEEC1" style="OLC"> <paragraph id="HB6C9E543D9C3474FBE9F1208D8F8181E"><enum>(12)</enum><text>The development, construction, acquisition, retrofitting, or engineering integration of a qualified advanced electric transmission manufacturing plant or the construction of a qualified advanced electric transmission property (whether by construction of new facilities or the modification of existing facilities). For purposes of this paragraph, the terms <quote>qualified advanced electric transmission property</quote> and <quote>qualified advanced electric transmission manufacturing plant</quote> have the meanings provided by section 1705(a)(5).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H3A072564723444359AB79FBCED5FB1D3"><enum>(c)</enum><header>Grants</header><text>The Secretary of Energy is authorized to provide grants for up to 50 percent of costs incurred in connection with the development, construction, acquisition of components for, or engineering of a qualified advanced electric transmission property defined in paragraph (5) of section 1705(a) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16515">42 U.S.C. 16515(a)</external-xref>). Such grants may only be made to the first project which qualifies under that paragraph. There are authorized to be appropriated for purposes of this subsection not more than $100,000,000 for fiscal year 2010. The United States shall take no equity or other ownership interest in the qualified advanced electric transmission manufacturing plant or qualified advanced electric transmission property for which funding is provided under this subsection.</text> </subsection></section></subtitle><subtitle id="HC1529D6FD5614F6183E6849D6FDCCFB5"><enum>G</enum><header>Technical Corrections to Energy Laws</header> <section id="H23E23C7BC06D466FADD82A611F5A1DD8" section-type="subsequent-section"><enum>161.</enum><header>Technical corrections to Energy Independence and Security Act of 2007</header> <subsection id="H521F798E5C014E7C9438C3261EDA5F51"><enum>(a)</enum><header>Title III—Energy savings through improved standards for appliance and lighting</header><paragraph commented="no" display-inline="yes-display-inline" id="H13E1A2028CCD441B9B3C58A1ABDB6AA7"><enum>(1)</enum><text display-inline="yes-display-inline">Section 325(u) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(u)</external-xref>) (as amended by section 301(c) of the Energy Independence and Security Act of 2007 (121 Stat. 1550)) is amended—</text> <subparagraph id="H87A0F5589A4440ACB7758A8B70077209"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraph (7) as paragraph (4); and</text> </subparagraph><subparagraph id="HCB26E23667284D0F913F38B14BBAA7B7"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (4) (as so redesignated), by striking <quote>supplies is</quote> and inserting <quote>supply is</quote>.</text> </subparagraph></paragraph><paragraph id="H5B1B625878414218854C6AB4DCBF8144" indent="up1"><enum>(2)</enum><text>Section 302 of the Energy Independence and Security Act of 2007 (121 Stat. 1551)) is amended—</text> <subparagraph id="HAC7CE3E770394566B4978D941F53B7FD"><enum>(A)</enum><text>in subsection (a), by striking <quote>end of the paragraph</quote> and inserting <quote>end of subparagraph (A)</quote>; and</text> </subparagraph><subparagraph id="HD932F10F7A8843A3B9F76E76D89FEFD8"><enum>(B)</enum><text>in subsection (b), by striking <quote>6313(a)</quote> and inserting <quote>6314(a)</quote>.</text> </subparagraph></paragraph><paragraph id="H48D890E285294FD6A6BC5F254D88214A" indent="up1"><enum>(3)</enum><text>Section 343(a)(1) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6313">42 U.S.C. 6313(a)(1)</external-xref>) (as amended by section 302(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1551)) is amended—</text> <subparagraph id="H006F23AA9BD74DEF8D3D272A51C94205"><enum>(A)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">Test procedures</header-in-text></quote> and all that follows through <quote>At least once</quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Test procedures</header-in-text>.—At least once</quote>; and</text> </subparagraph><subparagraph id="H4541E0C905654AB9BC05AD386AE08F87"><enum>(B)</enum><text>by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively (and by moving the margins of such subparagraphs 2 ems to the left).</text> </subparagraph></paragraph><paragraph id="HCA4D28D8A9D5472ABC669043B5105D2B" indent="up1"><enum>(4)</enum><text>Section 342(a)(6) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6313">42 U.S.C. 6313(a)(6)</external-xref>) (as amended by section 305(b)(2) of the Energy Independence and Security Act of 2007 (121 Stat. 1554)) is amended—</text> <subparagraph id="H77F36EC57CDF4967BCDE284452173AEC"><enum>(A)</enum><text>in subparagraph (B)—</text> <clause id="HEF9D607420934A61A0B1A68C3DA713A8"><enum>(i)</enum><text>by striking <quote>If the Secretary</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H4D8EFAB2BF21463781044BE97F2D121F" style="OLC"> <clause id="H0D9509D08C7E438DA89039BC3E78503D"><enum>(i)</enum><header>In general</header><text>If the Secretary</text> </clause><after-quoted-block>; </after-quoted-block></quoted-block> </clause><clause id="H831A6F94E9AB400DBEE930BA7576C66A"><enum>(ii)</enum><text>by striking <quote>clause (ii)(II)</quote> and inserting <quote>subparagraph (A)(ii)(II)</quote>;</text> </clause><clause id="HAC6E0F64C73B47588EE841DF1AF4164A"><enum>(iii)</enum><text>by striking <quote>clause (i)</quote> and inserting <quote>subparagraph (A)(i)</quote>; and</text> </clause><clause id="H75AE0550E734477396C9E55BF85D9FDA"><enum>(iv)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HEAC00D3F38B542F3BEB0BBEC315CFDD9" style="OLC"> <clause id="HE2D727D7319E40459A68FF77D6A792B0"><enum>(ii)</enum><header>Factors</header><text>In determining whether a standard is economically justified for the purposes of subparagraph (A)(ii)(II), the Secretary shall, after receiving views and comments furnished with respect to the proposed standard, determine whether the benefits of the standard exceed the burden of the proposed standard by, to the maximum extent practicable, considering—</text> <subclause id="HD88707FE33E1418A88C2A33236246BB2"><enum>(I)</enum><text>the economic impact of the standard on the manufacturers and on the consumers of the products subject to the standard;</text> </subclause><subclause id="H2D648B759BD1472AB7C16A506DCA95D5"><enum>(II)</enum><text>the savings in operating costs throughout the estimated average life of the product in the type (or class) compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the products that are likely to result from the imposition of the standard;</text> </subclause><subclause id="HF3ADD260F34440F691BAC99DAC7AEA51"><enum>(III)</enum><text>the total projected quantity of energy savings likely to result directly from the imposition of the standard;</text> </subclause><subclause id="HCDF43E9D4AF64647B1722D104B040A09"><enum>(IV)</enum><text>any lessening of the utility or the performance of the products likely to result from the imposition of the standard;</text> </subclause><subclause id="H44D22893E34D4FFD9ACF0E3579B0448E"><enum>(V)</enum><text>the impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the imposition of the standard;</text> </subclause><subclause id="H6764897F1D9242F395F598FADD1EDD99"><enum>(VI)</enum><text>the need for national energy conservation; and</text> </subclause><subclause id="H1A260D892D544DA8BF171F6CC9B9CA2C"><enum>(VII)</enum><text>other factors the Secretary considers relevant.</text> </subclause></clause><clause id="H7F4AF6073F5448C0A92937D0F8C6ED13"><enum>(iii)</enum><header>Administration</header> <subclause id="H44344B54E1814C19912646A340F06EB2"><enum>(I)</enum><header>Energy use and efficiency</header><text>The Secretary may not prescribe any amended standard under this paragraph that increases the maximum allowable energy use, or decreases the minimum required energy efficiency, of a covered product.</text> </subclause><subclause id="H424F3BB630E748E1B7DE47E6FCF99A35"><enum>(II)</enum><header>Unavailability</header> <item id="HC7CE232B68DB448AA4BC3D4B93F7156A"><enum>(aa)</enum><header>In general</header><text>The Secretary may not prescribe an amended standard under this subparagraph if the Secretary finds (and publishes the finding) that interested persons have established by a preponderance of the evidence that a standard is likely to result in the unavailability in the United States in any product type (or class) of performance characteristics (including reliability, features, sizes, capacities, and volumes) that are substantially the same as those generally available in the United States at the time of the finding of the Secretary.</text> </item><item id="HC81132F335D44B168C2B4A176C5C5A15"><enum>(bb)</enum><header>Other types or classes</header><text>The failure of some types (or classes) to meet the criterion established under this subclause shall not affect the determination of the Secretary on whether to prescribe a standard for the other types or classes.</text> </item></subclause></clause><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="H9564706B1D3640C39B7D2771CD8477B6"><enum>(B)</enum><text>in subparagraph (C)(iv), by striking <quote>An amendment prescribed under this subsection</quote> and inserting <quote>Notwithstanding subparagraph (D), an amendment prescribed under this subparagraph</quote>.</text> </subparagraph></paragraph><paragraph id="H1DABB5ED273D45D7AB1A60EBDDD02989" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">Section 342(a)(6)(B)(iii) of the Energy Policy and Conservation Act (as added by section 306(c) of the Energy Independence and Security Act of 2007) is transferred and redesignated as clause (vi) of section 342(a)(6)(C) of the Energy Policy and Conservation Act (as amended by section 305(b)(2) of the Energy Independence and Security Act of 2007).</text> </paragraph><paragraph id="HF2262720C03049EA85F9E26BC8C0DFB8" indent="up1"><enum>(6)</enum><text>Section 340 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6311">42 U.S.C. 6311</external-xref>) (as amended by sections 312(a)(2) and 314(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1564, 1569)) is amended by redesignating paragraphs (22) and (23) (as added by section 314(a) of that Act) as paragraphs (23) and (24), respectively.</text> </paragraph><paragraph id="H4C214107BF4E4BB0A43A1C39DB363E1A" indent="up1"><enum>(7)</enum><text display-inline="yes-display-inline">Section 345 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6316">42 U.S.C. 6316</external-xref>) (as amended by section 312(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1567)) is amended—</text> <subparagraph id="H47AD63E801F447C3A587E274FDA0348B"><enum>(A)</enum><text>by striking <quote>subparagraphs (B) through (G)</quote> each place it appears and inserting <quote>subparagraphs (B), (C), (D), (I), (J), and (K)</quote>;</text> </subparagraph><subparagraph id="H6FC0438A62624107AA86C5C893318392"><enum>(B)</enum><text>by striking <quote>part A</quote> each place it appears and inserting <quote>part B</quote>; and</text> </subparagraph><subparagraph id="HE1B1438BC4284F01976E500E5C91E70C"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (h)(3), by striking <quote>section 342(f)(3)</quote> and inserting <quote>section 342(f)(4)</quote>.</text> </subparagraph></paragraph><paragraph id="HD9CA049CE1C345F2A1C7C3FE4A9C9207" indent="up1"><enum>(8)</enum><text>Section 340(13) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6311">42 U.S.C. 6311(13)</external-xref>) (as amended by section 313(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1568)) is amended—</text> <subparagraph id="H2D96D89748854154B4CB9B48BC541947"><enum>(A)</enum><text>by striking subparagraphs (A) and (B) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H38E2FBFEC26B454894977A95548B0F0B" style="OLC"> <subparagraph id="HF5A1ED2EA2534C0B90A86924CF13AD70"><enum>(A)</enum><header>In general</header><text>The term <term>electric motor</term> means any motor that is—</text> <clause id="H425FD5D60CAE469799A7CEFD819E7394"><enum>(i)</enum><text>a general purpose T-frame, single-speed, foot-mounting, polyphase squirrel-cage induction motor of the National Electrical Manufacturers Association, Design A and B, continuous rated, operating on 230/460 volts and constant 60 Hertz line power as defined in NEMA Standards Publication MG1–1987; or</text> </clause><clause id="HA88B5B567EB347648A9B469C4BEEC357"><enum>(ii)</enum><text>a motor incorporating the design elements described in clause (i), but is configured to incorporate one or more of the following variations—</text> <subclause id="HC43FDE3616344B4091E8DB534C2C4B49"><enum>(I)</enum><text>U-frame motor;</text> </subclause><subclause id="H1800D72B9C44452894C05FD3A0F0282E"><enum>(II)</enum><text>NEMA Design C motor;</text> </subclause><subclause id="H4EA04663A22B4FC9805B20036C1D56A5"><enum>(III)</enum><text>close-coupled pump motor;</text> </subclause><subclause id="H65C92952C1134D2C84C84A237C81C83E"><enum>(IV)</enum><text>footless motor;</text> </subclause><subclause id="HB4B1A5AEDB8F4500842E74BF7264F719"><enum>(V)</enum><text>vertical solid shaft normal thrust motor (as tested in a horizontal configuration);</text> </subclause><subclause id="H4D31488320CE44559B344CD3C62B763A"><enum>(VI)</enum><text>8-pole motor; or</text> </subclause><subclause id="H6926A7EE4C3A4ABD88823DFC484CF9CB"><enum>(VII)</enum><text>poly-phase motor with a voltage rating of not more than 600 volts (other than 230 volts or 460 volts, or both, or can be operated on 230 volts or 460 volts, or both).</text> </subclause></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HA18BB6102E7C4F44852BBDA083FEEAB1"><enum>(B)</enum><text>by redesignating subparagraphs (C) through (I) as subparagraphs (B) through (H), respectively.</text> </subparagraph></paragraph><paragraph id="H67B4EA8D948646BDA3563FCE346BAE7E" indent="up1"><enum>(9)(A)</enum><text display-inline="yes-display-inline">Section 342(b) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6313">42 U.S.C. 6313(b)</external-xref>) is amended—</text> </paragraph><paragraph id="H42DF25B0EAD8469896CA640004E63AC5" indent="up1"><enum>(i)</enum><text>in paragraph (1), by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph (3)</quote>;</text> </paragraph><paragraph id="HF038E7183A17407B92CDE04FD352FCF1" indent="up1"><enum>(ii)</enum><text>by redesignating paragraphs (2) and (3) as paragraphs (3) and (4);</text> </paragraph><paragraph id="HE75E0879E3ED4838B12A8056952D607C" indent="up1"><enum>(iii)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="H99ED5B0276E24BC9BEE9E17218AFE076" style="OLC"> <paragraph id="H1D10E606774241F581099A90A44B8CC3"><enum>(2)</enum><header>Standards effective beginning December 19, 2010</header> <subparagraph id="H356A7DE71E6044CCB0758A16D72C4A4D"><enum>(A)</enum><header>In general</header><text>Except for definite purpose motors, special purpose motors, and those motors exempted by the Secretary under paragraph (3) and except as provided for in subparagraphs (B), (C), and (D), each electric motor manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG–1 (2006) Table 12–12.</text> </subparagraph><subparagraph id="HCAB11D5582EF459780C56D49C7CB9B27"><enum>(B)</enum><header>Fire pump electric motors</header><text display-inline="yes-display-inline">Except for those motors exempted by the Secretary under paragraph (3), each fire pump electric motor manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency that is not less than the nominal full load efficiency described in NEMA MG–1 (2006) Table 12–11.</text> </subparagraph><subparagraph id="H9A4D9A3E444B4A1D978A20427E45A436"><enum>(C)</enum><header>NEMA Design B electric motors</header><text display-inline="yes-display-inline">Except for those motors exempted by the Secretary under paragraph (3), each NEMA Design B electric motor with power ratings of more than 200 horsepower, but not greater than 500 horsepower, manufactured (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG–1 (2006) Table 12–11.</text> </subparagraph><subparagraph id="HE2603DA9830046E5A0EC2E872B63E8BF"><enum>(D)</enum><header>Motors incorporating certain design elements</header><text display-inline="yes-display-inline">Except for those motors exempted by the Secretary under paragraph (3), each electric motor described in section 340(13)(A)(ii) manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG–1 (2006) Table 12–11.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HC9134904A67441ED9C393685A36F6E70" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">in paragraph (3) (as redesignated by clause (ii)), by striking <quote>paragraph (1)</quote> each place it appears in subparagraphs (A) and (D) and inserting <quote>paragraphs (1) and (2)</quote>.</text> <subparagraph id="H6B765DFFEF3943D181D5E790E9BCC79A" indent="up1"><enum>(B)</enum><text>Section 313 of the Energy Independence and Security Act of 2007 (121 Stat. 1568) is repealed.</text> </subparagraph><subparagraph id="HB8E0749154FB4840BD695651A53CD0E6" indent="up1"><enum>(C)</enum><text>The amendments made by—</text> <clause id="H9D4BE3943B3C4C848BF300DC42EBC172"><enum>(i)</enum><text>subparagraph (A) shall take effect on December 19, 2010; and</text> </clause><clause id="H77F05486CFE347E286562CFD8E741E3B"><enum>(ii)</enum><text>subparagraph (B) shall take effect on December 19, 2007.</text> </clause></subparagraph></paragraph><paragraph id="H87522E2495C24C2D8197A86C28A74067" indent="up1"><enum>(10)</enum><text display-inline="yes-display-inline">Section 321(30)(D)(i)(III) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291(30)(D)(i)(III)</external-xref>) (as amended by section 321(a)(1)(A) of the Energy Independence and Security Act of 2007 (121 Stat. 1574)) is amended by inserting before the semicolon the following: <quote>or, in the case of a modified spectrum lamp, not less than 232 lumens and not more than 1,950 lumens</quote>.</text> </paragraph><paragraph id="H72BA73DEF0804C3981AFA2570F1D071A" indent="up1"><enum>(11)</enum><text display-inline="yes-display-inline">Section 321(30)(T) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291(30)(T)</external-xref> (as amended by section 321(a)(1)(B) of the Energy Independence and Security Act of 2007 (121 Stat. 1574)) is amended—</text> <subparagraph id="H33B10FBA53154E3A900F7229C8DBB3D3"><enum>(A)</enum><text>in clause (i)—</text> <clause id="H5603A2B315E1424C8E6307EBE6B1451F"><enum>(i)</enum><text>by striking the comma after <quote>household appliance</quote> and inserting <quote>and</quote>; and</text> </clause><clause id="HA6E13DA51AC64A0ABB335994CAAE861B"><enum>(ii)</enum><text>by striking <quote>and is sold at retail,</quote>; and</text> </clause></subparagraph><subparagraph id="HB211D30821374466A79547AE33E72896"><enum>(B)</enum><text>in clause (ii), by inserting <quote>when sold at retail,</quote> before <quote>is designated</quote>.</text> </subparagraph></paragraph><paragraph id="HB45A3ACAC76A4899B181B4D6715C1856" indent="up1"><enum>(12)</enum><text display-inline="yes-display-inline">Section 325 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295</external-xref>) (as amended by sections 321(a)(3)(A) and 322(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1577, 1588)) is amended by striking subsection (i) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H0964A31F22434ABDA4540F1E0875FA35" style="OLC"> <subsection id="HAC2ADE2B0484464E9703AAA7E7D79327"><enum>(i)</enum><header>General service fluorescent lamps, general service incandescent lamps, intermediate base incandescent lamps, candelabra base incandescent lamps, and incandescent reflector lamps</header> <paragraph id="HF3F47784ECCC4F72AC5EC081865CFFF5"><enum>(1)</enum><header>Energy efficiency standards</header> <subparagraph id="HD996B759901F4FAB81C030C5C726658A"><enum>(A)</enum><header>In general</header><text>Each of the following general service fluorescent lamps, general service incandescent lamps, intermediate base incandescent lamps, candelabra base incandescent lamps, and incandescent reflector lamps manufactured after the effective date specified in the tables listed in this subparagraph shall meet or exceed the following lamp efficacy, new maximum wattage, and CRI standards:</text> <table blank-lines-before="2" line-rules="hor"> <ttitle>FLUORESCENT LAMPS</ttitle> <tgroup cols="5" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.9" ttitle-size="8"><colspec coldef="txt" colname="col1" min-data-value="30"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col2" min-data-value="40"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col3" min-data-value="40"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col4" min-data-value="72"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col5" min-data-value="40"></colspec> <thead> <row><entry align="center" colname="col1">Lamp Type</entry><entry align="center" colname="col2">Nominal Lamp Wattage</entry><entry align="center" colname="col3">Minimum CRI</entry><entry align="center" colname="col4">Minimum Average Lamp Efficacy (LPW)</entry><entry align="center" colname="col5">Effective Date (Period of Months)</entry> </row> </thead> <tbody> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">4-foot medium bi-pin</entry><entry colname="col2" entry-modify="ctr-variable">>35 W</entry><entry colname="col3" entry-modify="ctr-variable">69</entry><entry colname="col4" entry-modify="ctr-variable">75.0</entry><entry colname="col5" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-clr-start-end"></entry><entry colname="col2" entry-modify="ctr-variable">≤35 W</entry><entry colname="col3" entry-modify="ctr-variable">45</entry><entry colname="col4" entry-modify="ctr-variable">75.0 </entry><entry colname="col5" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">2-foot U-shaped</entry><entry colname="col2" entry-modify="ctr-variable">>35 W</entry><entry colname="col3" entry-modify="ctr-variable">69</entry><entry colname="col4" entry-modify="ctr-variable">68.0 </entry><entry colname="col5" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-clr-start-end"></entry><entry colname="col2" entry-modify="ctr-variable"> ≤35 W</entry><entry colname="col3" entry-modify="ctr-variable">45</entry><entry colname="col4" entry-modify="ctr-variable">64.0 </entry><entry colname="col5" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">8-foot slimline</entry><entry colname="col2" entry-modify="ctr-variable"> 65 W</entry><entry colname="col3" entry-modify="ctr-variable">69</entry><entry colname="col4" entry-modify="ctr-variable">80.0 </entry><entry colname="col5" entry-modify="ctr-variable">18</entry> </row> <row><entry colname="col1" stub-definition="txt-clr-start-end"></entry><entry colname="col2" entry-modify="ctr-variable">≤65 W</entry><entry colname="col3" entry-modify="ctr-variable">45</entry><entry colname="col4" entry-modify="ctr-variable">80.0 </entry><entry colname="col5" entry-modify="ctr-variable">18</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">8-foot high output</entry><entry colname="col2" entry-modify="ctr-variable">>100 W</entry><entry colname="col3" entry-modify="ctr-variable">69</entry><entry colname="col4" entry-modify="ctr-variable">80.0 </entry><entry colname="col5" entry-modify="ctr-variable">18</entry> </row> <row><entry colname="col1" stub-definition="txt-clr-start-end"></entry><entry colname="col2" entry-modify="ctr-variable">≤100 W</entry><entry colname="col3" entry-modify="ctr-variable">45</entry><entry colname="col4" entry-modify="ctr-variable">80.0 </entry><entry colname="col5" entry-modify="ctr-variable">18</entry> </row> </tbody> </tgroup> </table> <table line-rules="hor"> <ttitle>INCANDESCENT REFLECTOR LAMPS</ttitle> <tgroup cols="3" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.9" ttitle-size="8"><colspec coldef="txt" colname="col1" min-data-value="30"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col2" min-data-value="72"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="col3" min-data-value="40"></colspec> <thead> <row><entry align="center" colname="col1">Nominal Lamp Wattage</entry><entry align="center" colname="col2">Minimum Average Lamp Efficacy (LPW)</entry><entry align="center" colname="col3">Effective Date (Period of Months)</entry> </row> </thead> <tbody> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1"> 40–50</entry><entry colname="col2" entry-modify="ctr-variable">10.5</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1"> 51–66</entry><entry colname="col2" entry-modify="ctr-variable">11.0</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1"> 67–85</entry><entry colname="col2" entry-modify="ctr-variable">12.5</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1"> 86–115</entry><entry colname="col2" entry-modify="ctr-variable">14.0</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">116–155</entry><entry colname="col2" entry-modify="ctr-variable">14.5</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">156–205</entry><entry colname="col2" entry-modify="ctr-variable">15.0</entry><entry colname="col3" entry-modify="ctr-variable">36</entry> </row> </tbody> </tgroup> </table> <table align-to-level="section" blank-lines-before="1" frame="topbot" line-rules="hor-ver" rule-weights="4.4.4.4.0.0" subformat="S6211" table-type="4-Generic:-1-text,-3-num"> <ttitle>GENERAL SERVICE INCANDESCENT LAMPS</ttitle> <tgroup cols="4" grid-typeface="1.1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="center" coldef="txt-no-ldr" colname="col1" colsep="1" colwidth="186" min-data-value="120" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col2" colsep="1" colwidth="140" min-data-value="15" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col3" colsep="1" colwidth="93" min-data-value="10" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col4" colsep="1" colwidth="93" min-data-value="10" rowsep="0"></colspec> <thead> <row><entry align="center" colname="col1" rowsep="1">Rated Lumen Ranges</entry><entry align="center" colname="col2" rowsep="1">Maximum Rated Wattage</entry><entry align="center" colname="col3" rowsep="1">Minimum Rated Lifetime</entry><entry align="center" colname="col4" rowsep="1">Effective Date</entry> </row> </thead> <tbody> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">1490–2600</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">72</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2012</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">1050–1489</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">53</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2013</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">750–1049</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">43</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2014</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">310–749</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">29</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2014</entry> </row> </tbody> </tgroup> </table> <table align-to-level="section" blank-lines-before="1" frame="topbot" line-rules="hor-ver" rule-weights="4.4.4.4.0.0" subformat="S6211" table-type="4-Generic:-1-text,-3-num"> <ttitle>MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS</ttitle> <tgroup cols="4" grid-typeface="1.1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="center" coldef="txt-no-ldr" colname="col1" colsep="1" colwidth="186" min-data-value="120" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col2" colsep="1" colwidth="140" min-data-value="15" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col3" colsep="1" colwidth="93" min-data-value="10" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="col4" colsep="1" colwidth="93" min-data-value="10" rowsep="0"></colspec> <thead> <row><entry align="center" colname="col1" rowsep="1">Rated Lumen Ranges</entry><entry align="center" colname="col2" rowsep="1">Maximum Rated Wattage</entry><entry align="center" colname="col3" rowsep="1">Minimum Rated Lifetime</entry><entry align="center" colname="col4" rowsep="1">Effective Date</entry> </row> </thead> <tbody> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">1118–1950</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">72</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2012</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">788–1117</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">53</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2013</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">563–787</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">43</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2014</entry> </row> <row><entry align="center" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1">232–562</entry><entry align="center" colname="col2" leader-modify="clr-ldr" rowsep="0">29</entry><entry align="center" colname="col3" leader-modify="clr-ldr" rowsep="0">1,000 hrs</entry><entry align="center" colname="col4" leader-modify="clr-ldr" rowsep="0">1/1/2014</entry> </row> </tbody> </tgroup> </table> </subparagraph><subparagraph id="HE1F65ED3405C477BBA6FF9AEA44E729D"><enum>(B)</enum><header>Application</header> <clause id="H0A6194C9DA704C188506258190A3A6E4"><enum>(i)</enum><header>Application criteria</header><text>This subparagraph applies to each lamp that—</text> <subclause id="H24891F2EFBA341FB87CFEA74D2550EE1"><enum>(I)</enum><text>is intended for a general service or general illumination application (whether incandescent or not);</text> </subclause><subclause id="HE4EA9670871B4D8B89431B505B920793"><enum>(II)</enum><text>has a medium screw base or any other screw base not defined in ANSI C81.61–2006;</text> </subclause><subclause id="H9BDA90E21D7747CA8563EA1D36A2B77A"><enum>(III)</enum><text>is capable of being operated at a voltage at least partially within the range of 110 to 130 volts; and</text> </subclause><subclause id="H525A7494E547487E936B18421A08AD1E"><enum>(IV)</enum><text>is manufactured or imported after December 31, 2011.</text> </subclause></clause><clause id="H3E35DDB9AB0B48708C81F5E526E75273"><enum>(ii)</enum><header>Requirement</header><text>For purposes of this paragraph, each lamp described in clause (i) shall have a color rendering index that is greater than or equal to—</text> <subclause id="H7137C69AE1BA410B90450C1E27855445"><enum>(I)</enum><text>80 for nonmodified spectrum lamps; or</text> </subclause><subclause id="H56F2E178940849579D84A575A3FE17C1"><enum>(II)</enum><text>75 for modified spectrum lamps.</text> </subclause></clause></subparagraph><subparagraph commented="no" id="H2B7468B4CCE747F7852481183E4C2193"><enum>(C)</enum><header>Candelabra incandescent lamps and intermediate base incandescent lamps</header> <clause commented="no" id="H89ABE06CA2EA4EC5BB0E4EAA0DE4054C"><enum>(i)</enum><header>Candelabra base incandescent lamps</header><text>Effective beginning January 1, 2012, a candelabra base incandescent lamp shall not exceed 60 rated watts.</text> </clause><clause commented="no" id="HA50DFF9AAED84A44BACB98BA9AE2C8E2"><enum>(ii)</enum><header>Intermediate base incandescent lamps</header><text>Effective beginning January 1, 2012, an intermediate base incandescent lamp shall not exceed 40 rated watts.</text> </clause></subparagraph><subparagraph id="HFCA231B888D9486788612055E7C2DABB"><enum>(D)</enum><header>Exemptions</header> <clause id="H265C3A5AA1494792B65D3A419742159A"><enum>(i)</enum><header>Statutory exemptions</header><text>The standards specified in subparagraph (A) shall not apply to the following types of incandescent reflector lamps:</text> <subclause id="H358B4316DDD24AE894198D421B6BB53D"><enum>(I)</enum><text>Lamps rated at 50 watts or less that are ER30, BR30, BR40, or ER40 lamps.</text> </subclause><subclause id="H019C598844C34540BD5B7DC22D1B5FCF"><enum>(II)</enum><text>Lamps rated at 65 watts that are BR30, BR40, or ER40 lamps.</text> </subclause><subclause id="HA7D7690556E3448D8FD43C421437893D"><enum>(III)</enum><text>R20 incandescent reflector lamps rated 45 watts or less.</text> </subclause></clause><clause id="HF57758268A95463C802789D72EF8D288"><enum>(ii)</enum><header>Administrative exemptions</header> <subclause id="H53C3BCCDACEF495487CC6A725796CB2B"><enum>(I)</enum><header>Petition</header><text>Any person may petition the Secretary for an exemption for a type of general service lamp from the requirements of this subsection.</text> </subclause><subclause id="H6D740FCEC7B14E6EA31F397D81021A11"><enum>(II)</enum><header>Criteria</header><text>The Secretary may grant an exemption under subclause (I) only to the extent that the Secretary finds, after a hearing and opportunity for public comment, that it is not technically feasible to serve a specialized lighting application (such as a military, medical, public safety, or certified historic lighting application) using a lamp that meets the requirements of this subsection.</text> </subclause><subclause id="HFC5B7052BB084CB5914A6212BBE1E862"><enum>(III)</enum><header>Additional criterion</header><text>To grant an exemption for a product under this clause, the Secretary shall include, as an additional criterion, that the exempted product is unlikely to be used in a general service lighting application.</text> </subclause></clause></subparagraph><subparagraph id="HE4195AD8EA9D45DB9AEFB2EB001D8128"><enum>(E)</enum><header>Extension of coverage</header> <clause id="H52183C0D7014415B9C79DD3345705792"><enum>(i)</enum><header>Petition</header><text>Any person may petition the Secretary to establish standards for lamp shapes or bases that are excluded from the definition of general service lamps.</text> </clause><clause id="HBDF8147EAE094FD5BD34F43A3A6D0EC5"><enum>(ii)</enum><header>Increased sales of exempted lamps</header><text>The petition shall include evidence that the availability or sales of exempted incandescent lamps have increased significantly since the date on which the standards on general service incandescent lamps were established.</text> </clause><clause id="H141B9CC5C1FC46EE9EE86800DAA01B2B"><enum>(iii)</enum><header>Criteria</header><text>The Secretary shall grant a petition under clause (i) if the Secretary finds that—</text> <subclause id="HAB5383789A894EE786A435E3328A8620"><enum>(I)</enum><text>the petition presents evidence that demonstrates that commercial availability or sales of exempted incandescent lamp types have increased significantly since the standards on general service lamps were established and likely are being widely used in general lighting applications; and</text> </subclause><subclause id="H46E45A7019364065A1D378E49128A37D"><enum>(II)</enum><text>significant energy savings could be achieved by covering exempted products, as determined by the Secretary based in part on sales data provided to the Secretary from manufacturers and importers.</text> </subclause></clause><clause id="HF712E2359EB34488BE237B71A0B2E1CF"><enum>(iv)</enum><header>No presumption</header><text>The grant of a petition under this subparagraph shall create no presumption with respect to the determination of the Secretary with respect to any criteria under a rulemaking conducted under this section.</text> </clause><clause id="H0114340F33D7416A8B11D7B691551332"><enum>(v)</enum><header>Expedited proceeding</header><text>If the Secretary grants a petition for a lamp shape or base under this subparagraph, the Secretary shall—</text> <subclause id="H003E10A178964380AA98F5F937F979B8"><enum>(I)</enum><text>conduct a rulemaking to determine standards for the exempted lamp shape or base; and</text> </subclause><subclause id="HFE32BC2BA5734E1D8666928EE1F68F85"><enum>(II)</enum><text>complete the rulemaking not later than 18 months after the date on which notice is provided granting the petition.</text> </subclause></clause></subparagraph><subparagraph id="HA22ED5707A97492FB982D91DBC4328F2"><enum>(F)</enum><header>Effective dates</header> <clause id="H1FE050EAA14E4D04904D4ED463D041CB"><enum>(i)</enum><header>In general</header><text>In this paragraph, except as otherwise provided in a table contained in subparagraph (A) or in clause (ii), the term <term>effective date</term> means the last day of the month specified in the table that follows October 24, 1992.</text> </clause><clause id="HB472E3BB310947A7B31E0413930742CF"><enum>(ii)</enum><header>Special effective dates</header> <subclause id="HE789A5F9D5684DD7B82F769DF1E3AA3B"><enum>(I)</enum><header>ER, br, and bpar lamps</header><text>The standards specified in subparagraph (A) shall apply with respect to ER incandescent reflector lamps, BR incandescent reflector lamps, BPAR incandescent reflector lamps, and similar bulb shapes on and after January 1, 2008, or the date that is 180 days after the date of enactment of the Energy Independence and Security Act of 2007.</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="H190B44EDD2D44A2894CAC4FDE74FBAAE"><enum>(II)</enum><header>Lamps between 2.25–2.75 inches in diameter</header><text>The standards specified in subparagraph (A) shall apply with respect to incandescent reflector lamps with a diameter of more than 2.25 inches, but not more than 2.75 inches, on and after the later of January 1, 2008, or the date that is 180 days after the date of enactment of the Energy Independence and Security Act of 2007.</text> </subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF18692FCDDBE4F4DA9BB2D6F142DD7B8"><enum>(2)</enum><header>Compliance with existing law</header><text>Notwithstanding section 332(a)(5) and section 332(b), it shall not be unlawful for a manufacturer to sell a lamp that is in compliance with the law at the time the lamp was manufactured.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H121BEE3E78554AC4B6338964DE85D49F"><enum>(3)</enum><header>Rulemaking before October 24, 1995</header> <subparagraph commented="no" display-inline="no-display-inline" id="HFE1F0D7A4937404AB67290D7E2BD53BD"><enum>(A)</enum><header>In general</header><text>Not later than 36 months after October 24, 1992, the Secretary shall initiate a rulemaking procedure and shall publish a final rule not later than the end of the 54-month period beginning on October 24, 1992, to determine whether the standards established under paragraph (1) should be amended.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2B7D7DD9083B4BFBAE2B8AD893A353BE"><enum>(B)</enum><header>Administration</header><text>The rule shall contain the amendment, if any, and provide that the amendment shall apply to products manufactured on or after the 36-month period beginning on the date on which the final rule is published.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB3EA9C4E77B8468DB28C5D3E61B3435D"><enum>(4)</enum><header>Rulemaking before October 24, 2000</header> <subparagraph commented="no" display-inline="no-display-inline" id="H3C599F5F4BD74140A7E80713F6DCA976"><enum>(A)</enum><header>In general</header><text>Not later than 8 years after October 24, 1992, the Secretary shall initiate a rulemaking procedure and shall publish a final rule not later than 9 years and 6 months after October 24, 1992, to determine whether the standards in effect for fluorescent lamps and incandescent lamps should be amended.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H71B700B0AEC142BC984AFB5A7761941C"><enum>(B)</enum><header>Administration</header><text>The rule shall contain the amendment, if any, and provide that the amendment shall apply to products manufactured on or after the 36-month period beginning on the date on which the final rule is published.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6C994786855D4EFBB53DAE43E1F94A15"><enum>(5)</enum><header>Rulemaking for additional general service fluorescent lamps</header> <subparagraph commented="no" display-inline="no-display-inline" id="HE8086B54D0A34E1BA2EE312AEA3DA3C9"><enum>(A)</enum><header>In general</header><text>Not later than the end of the 24-month period beginning on the date labeling requirements under section 324(a)(2)(C) become effective, the Secretary shall—</text> <clause commented="no" display-inline="no-display-inline" id="H4E40F4494C534F0AAC0B66916D7B5CE4"><enum>(i)</enum><text>initiate a rulemaking procedure to determine whether the standards in effect for fluorescent lamps and incandescent lamps should be amended so that the standards would be applicable to additional general service fluorescent lamps; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="H2B8319E8108D480FA7BA139DC961839E"><enum>(ii)</enum><text>publish, not later than 18 months after initiating the rulemaking, a final rule including the amended standards, if any.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H74DBB3CAC7984823BBA0D2DDE3803DE7"><enum>(B)</enum><header>Administration</header><text>The rule shall provide that the amendment shall apply to products manufactured after a date which is 36 months after the date on which the rule is published.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD8F9148D31B8479398ACA353F43B6795"><enum>(6)</enum><header>Standards for general service lamps</header> <subparagraph id="H3753804A7FCB41F3A513E32F7060DAAA"><enum>(A)</enum><header>Rulemaking before January 1, 2014</header> <clause id="H985A9214713045E18093A4E0C90A7EFF"><enum>(i)</enum><header>In general</header><text>Not later than January 1, 2014, the Secretary shall initiate a rulemaking procedure to determine whether—</text> <subclause id="H414254DE9E364BC8A11598F5958874A1"><enum>(I)</enum><text>standards in effect for general service lamps should be amended; and</text> </subclause><subclause id="H0100D4BED8944898B1E26D6FB1B7339B"><enum>(II)</enum><text>the exclusions for certain incandescent lamps should be maintained or discontinued based, in part, on excluded lamp sales collected by the Secretary from manufacturers.</text> </subclause></clause><clause id="HACA43B73E7EE4EEEAF5A212C442193B5"><enum>(ii)</enum><header>Scope</header><text>The rulemaking—</text> <subclause id="HEEAB7C2C2C3843A78DDB83CFD2289CF5"><enum>(I)</enum><text>shall not be limited to incandescent lamp technologies; and</text> </subclause><subclause id="HD7A298D399F14E118E08F81E5AB4368D"><enum>(II)</enum><text>shall include consideration of a minimum standard of 45 lumens per watt for general service lamps.</text> </subclause></clause><clause id="H70F1E82CB3774DBCBF7FF2B0692AB492"><enum>(iii)</enum><header>Amended standards</header><text>If the Secretary determines that the standards in effect for general service lamps should be amended, the Secretary shall publish a final rule not later than January 1, 2017, with an effective date that is not earlier than 3 years after the date on which the final rule is published.</text> </clause><clause id="H26586D71F22F4FB0BBBAD2D65EF1D7C5"><enum>(iv)</enum><header>Phased-in effective dates</header><text>The Secretary shall consider phased-in effective dates under this subparagraph after considering—</text> <subclause id="H9F32A9094E8E44318A81DE5E75D395B5"><enum>(I)</enum><text>the impact of any amendment on manufacturers, retiring and repurposing existing equipment, stranded investments, labor contracts, workers, and raw materials; and</text> </subclause><subclause id="H980D84DFC72542C5A2C3EA9D8F191FEA"><enum>(II)</enum><text>the time needed to work with retailers and lighting designers to revise sales and marketing strategies.</text> </subclause></clause><clause id="H088B4CE5A3754E54A52C321CB57BA2D0"><enum>(v)</enum><header>Backstop requirement</header><text>If the Secretary fails to complete a rulemaking in accordance with clauses (i) through (iv) or if the final rule does not produce savings that are greater than or equal to the savings from a minimum efficacy standard of 45 lumens per watt, effective beginning January 1, 2020, the Secretary shall prohibit the manufacture of any general service lamp that does not meet a minimum efficacy standard of 45 lumens per watt.</text> </clause><clause id="H9789327B76E8402185B4885047B80491"><enum>(vi)</enum><header>State preemption</header><text>Neither section 327(c) nor any other provision of law shall preclude California or Nevada from adopting, effective beginning on or after January 1, 2018—</text> <subclause id="HC635DE06C5984750AD6938B05DE7ADB6"><enum>(I)</enum><text>a final rule adopted by the Secretary in accordance with clauses (i) through (iv);</text> </subclause><subclause id="H5CF7C908726846E1A559A9CA3E1AE960"><enum>(II)</enum><text>if a final rule described in subclause (I) has not been adopted, the backstop requirement under clause (v); or</text> </subclause><subclause id="H9DCB2BF19DBF4FD49B4209497DB8655C"><enum>(III)</enum><text>in the case of California, if a final rule described in subclause (I) has not been adopted, any California regulations relating to these covered products adopted pursuant to State statute in effect as of the date of enactment of the Energy Independence and Security Act of 2007.</text> </subclause></clause></subparagraph><subparagraph id="H3E20492BB8AB4D64927D5B67A5B3C907"><enum>(B)</enum><header>Rulemaking before January 1, 2020</header> <clause id="H4A0B9CDECE544A35BC7AD38A64A63E80"><enum>(i)</enum><header>In general</header><text>Not later than January 1, 2020, the Secretary shall initiate a rulemaking procedure to determine whether—</text> <subclause id="H5DBF4FFF4A0E40EC94A6D85618E0E9CC"><enum>(I)</enum><text>standards in effect for general service lamps should be amended; and</text> </subclause><subclause id="H8A526EF67A5F4058BD3EC59A96797979"><enum>(II)</enum><text>the exclusions for certain incandescent lamps should be maintained or discontinued based, in part, on excluded lamp sales data collected by the Secretary from manufacturers.</text> </subclause></clause><clause id="H0533AD98E3834E5FB2AC0E06E8F36408"><enum>(ii)</enum><header>Scope</header><text>The rulemaking shall not be limited to incandescent lamp technologies.</text> </clause><clause id="H9C83C4C8527B4951977A5E4F8647176B"><enum>(iii)</enum><header>Amended standards</header><text>If the Secretary determines that the standards in effect for general service lamps should be amended, the Secretary shall publish a final rule not later than January 1, 2022, with an effective date that is not earlier than 3 years after the date on which the final rule is published.</text> </clause><clause id="H137B3F55420248ADA6BA2EF177592CAD"><enum>(iv)</enum><header>Phased-in effective dates</header><text>The Secretary shall consider phased-in effective dates under this subparagraph after considering—</text> <subclause id="H16B2623E959D4523B4791EC557E88D02"><enum>(I)</enum><text>the impact of any amendment on manufacturers, retiring and repurposing existing equipment, stranded investments, labor contracts, workers, and raw materials; and</text> </subclause><subclause id="H03C3E40029C04B13AEA647BAC41705E1"><enum>(II)</enum><text>the time needed to work with retailers and lighting designers to revise sales and marketing strategies.</text> </subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H25DA001A2C8041CD954B08294CEB543C"><enum>(7)</enum><header>Federal actions</header> <subparagraph commented="no" display-inline="no-display-inline" id="HBEC638E791524D96B4C30C94571B449C"><enum>(A)</enum><header>Comments of Secretary</header> <clause commented="no" display-inline="no-display-inline" id="HAD018A7903AE40DC816AAFB18E06F182"><enum>(i)</enum><header>In general</header><text>With respect to any lamp to which standards are applicable under this subsection or any lamp specified in section 346, the Secretary shall inform any Federal entity proposing actions that would adversely impact the energy consumption or energy efficiency of the lamp of the energy conservation consequences of the action.</text> </clause><clause commented="no" display-inline="no-display-inline" id="HFAA221D50D8B43649AE9A68C858A13F2"><enum>(ii)</enum><header>Consideration</header><text>The Federal entity shall carefully consider the comments of the Secretary.</text> </clause></subparagraph><subparagraph id="HDE959849E2A14E17AF43DCD8FCD0F295"><enum>(B)</enum><header>Amendment of standards</header><text>Notwithstanding section 325(n)(1), the Secretary shall not be prohibited from amending any standard, by rule, to permit increased energy use or to decrease the minimum required energy efficiency of any lamp to which standards are applicable under this subsection if the action is warranted as a result of other Federal action (including restrictions on materials or processes) that would have the effect of either increasing the energy use or decreasing the energy efficiency of the product.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2943058B24864AFFB6CF7FB09B219A92"><enum>(8)</enum><header>Compliance</header> <subparagraph commented="no" display-inline="no-display-inline" id="HAE76BF88E1944804AD177727A6C56D44"><enum>(A)</enum><header>In general</header><text>Not later than the date on which standards established pursuant to this subsection become effective, or, with respect to high-intensity discharge lamps covered under section 346, the effective date of standards established pursuant to that section, each manufacturer of a product to which the standards are applicable shall file with the Secretary a laboratory report certifying compliance with the applicable standard for each lamp type.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7BDDA7360CE3422186D8CA5A18EFC850"><enum>(B)</enum><header>Contents</header><text>The report shall include the lumen output and wattage consumption for each lamp type as an average of measurements taken over the preceding 12-month period.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3FE76AEA53A745F2A943E8F75DAF3C1C"><enum>(C)</enum><header>Other lamp types</header><text>With respect to lamp types that are not manufactured during the 12-month period preceding the date on which the standards become effective, the report shall—</text> <clause commented="no" display-inline="no-display-inline" id="H3EF2757C5E2044BC9F4DAA513129AC7A"><enum>(i)</enum><text>be filed with the Secretary not later than the date that is 12 months after the date on which manufacturing is commenced; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="HB332F50118C343CEBC2128148C4CFBA8"><enum>(ii)</enum><text>include the lumen output and wattage consumption for each such lamp type as an average of measurements taken during the 12-month period.</text> </clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HC2FF9B0A1FE8489EBAAA00265511ACFC" indent="up1"><enum>(13)</enum><text display-inline="yes-display-inline">Section 325(l)(4)(A) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(l)(4)(A)</external-xref>) (as amended by section 321(a)(3)(B) of the Energy Independence and Security Act of 2007 (121 Stat. 1581)) is amended by striking <quote>only</quote>.</text> </paragraph><paragraph id="H2593F7954C354E1E9A882F9FE3295F1F" indent="up1"><enum>(14)</enum><text>Section 327(b)(1)(B) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297(b)(1)(B)</external-xref>) (as amended by section 321(d)(3) of the Energy Independence and Security Act of 2007 (121 Stat. 1585)) is amended—</text> <subparagraph id="H45DDDE7728944B298053600D4CE8FF25"><enum>(A)</enum><text>in clause (i), by inserting <quote>and</quote> after the semicolon at the end;</text> </subparagraph><subparagraph id="HB5AF4A6A49534DF4A9AC2C8CEFB6C999"><enum>(B)</enum><text>in clause (ii), by striking <quote>; and</quote> and inserting a period; and</text> </subparagraph><subparagraph id="H6693D00784504350ACEDAD3BD2927B6C"><enum>(C)</enum><text>by striking clause (iii).</text> </subparagraph></paragraph><paragraph id="HDD8F05D34DB94DB885075715456B3D31" indent="up1"><enum>(15)</enum><text>Section 321(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1586) is amended—</text> <subparagraph id="H5356DDEC86BB4A7F86A6B9A24BCBDD67"><enum>(A)</enum><text>in the matter preceding paragraph (1), by striking <quote>is amended</quote> and inserting <quote>(as amended by section 306(b)) is amended</quote>; and</text> </subparagraph><subparagraph id="HC27F9EAFD86F4553A0FF4C7C6F142926"><enum>(B)</enum><text>by striking paragraphs (1) and (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H4792C89FB6FA41C89E9BC48413CB9930" style="OLC"> <paragraph id="H9FA78D4561DC44C382B58A0E49AB1914"><enum>(1)</enum><text>in paragraph (5), by striking <quote>or</quote> after the semicolon at the end;</text> </paragraph><paragraph id="H25E6B1DEE18F4B77AA0468C3888FDE09"><enum>(2)</enum><text>in paragraph (6), by striking the period at the end and inserting <quote>; or</quote>; and</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B18864282B04A888F0426E80A2B8582" indent="up1"><enum>(16)</enum><text>Section 332(a) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6302">42 U.S.C. 6302(a)</external-xref>) (as amended by section 321(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1586)) is amended by redesignating the second paragraph (6) as paragraph (7).</text> </paragraph><paragraph id="H1F667BE0ADBC4CE99835188958D6822B" indent="up1"><enum>(17)</enum><text>Section 321(30)(C)(ii) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291(30)(C)(ii)</external-xref>) (as amended by section 322(a)(1)(B) of the Energy Independence and Security Act of 2007 (121 Stat. 1587)) is amended by inserting a period after <quote>40 watts or higher</quote>.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H32A4032D7C8D4876B7C84FAC14699260" indent="up1"><enum>(18)</enum><text>Section 322(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1588)) is amended by striking <quote>6995(i)</quote> and inserting <quote>6295(i)</quote>.</text> </paragraph><paragraph id="HED302A623DFD491783E237C4299A7157" indent="up1"><enum>(19)</enum><text display-inline="yes-display-inline">Section 327(c) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297(c)</external-xref>) (as amended by sections 324(f) of the Energy Independence and Security Act of 2007 (121 Stat. 1594)) is amended—</text> <subparagraph id="H909C382CBD3F46B284CC603ADC8E55FD"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (6), by striking <quote>or</quote> after the semicolon at the end;</text> </subparagraph><subparagraph id="H35E7D14B0DD242348AA05ADC4140F11B"><enum>(B)</enum><text>in paragraph (8)(B), by striking <quote>and</quote> after the semicolon at the end;</text> </subparagraph><subparagraph id="H4914F5FF62DA4361BEC4590B1A5FE941"><enum>(C)</enum><text>in paragraph (9)—</text> <clause id="H7B88417706824E0E92D9FB23FABB8FD2"><enum>(i)</enum><text>by striking <quote>except that—</quote> and all that follows through <quote>if the Secretary fails to issue</quote> and inserting <quote>except that if the Secretary fails to issue</quote>;</text> </clause><clause id="H1F59A85984A549B4A35E69671A8C5840"><enum>(ii)</enum><text>by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively (and by moving the margins of such subparagraphs 2 ems to the left); and</text> </clause><clause id="H31C31BBE1171499E8EA21FEAB454B115"><enum>(iii)</enum><text>by striking the period at the end and inserting a semicolon; and</text> </clause></subparagraph><subparagraph id="HDACFB2A99CA9464DBD083D7E14BE2B3E"><enum>(D)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H52D7EA5257EE457B8908D588D116FAAD" style="OLC"> <paragraph id="HBE3D7EDD8E104C669DBF3D98A71E36A6"><enum>(10)</enum><text>is a regulation for general service lamps that conforms with Federal standards and effective dates;</text> </paragraph><paragraph id="HE425FA7D22F04F9FAB74BC7821ECDA75"><enum>(11)</enum><text>is an energy efficiency standard for general service lamps enacted into law by the State of Nevada prior to December 19, 2007, if the State has not adopted the Federal standards and effective dates pursuant to subsection (b)(1)(B)(ii); or</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H69C3D0D783F9451F9BD7A86E6A52FCEC" indent="up1"><enum>(20)</enum><text>Section 325(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1596)) is amended by striking <quote>6924(c)</quote> and inserting <quote>6294(c)</quote>.</text> </paragraph></subsection><subsection id="H11A8A16F9FE544B892899109E01F725D"><enum>(b)</enum><header>Title IV—Energy savings in buildings and industry</header><paragraph commented="no" display-inline="yes-display-inline" id="HC7B3CFC03837482FA091916D2E5584CE"><enum>(1)</enum><text display-inline="yes-display-inline">Section 401 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17061">42 U.S.C. 17061</external-xref>) is amended—</text> <subparagraph id="H2E7E260822D043DCA01377B39C3A518D" indent="up1"><enum>(A)</enum><text>in paragraph (2), by striking <quote>484</quote> and inserting <quote>494</quote>; and</text> </subparagraph><subparagraph id="H41109E2599BB47B7B0EFF0A8352EE59B" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (13), by striking <quote>Agency</quote> and inserting <quote>Administration</quote>.</text> </subparagraph></paragraph><paragraph id="HDCE0DED1E2D24F6EBE175B2D4F9F83E6" indent="up1"><enum>(2)</enum><text>Section 422 of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6872">42 U.S.C. 6872</external-xref>) (as amended by section 411(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1600)) is amended by striking 1 of the 2 periods at the end of paragraph (5).</text> </paragraph><paragraph id="H09E592F9BB0E465C869689619DC10CA6" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">Section 305(a)(3)(D)(i) of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6834">42 U.S.C. 6834(a)(3)(D)(i)</external-xref>) (as amended by section 433(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1612)) is amended—</text> <subparagraph id="H6AE08385792F432694DFF8687E56C9BF"><enum>(A)</enum><text>in subclause (I)—</text> <clause id="H11FEDE4CA65D4CC7A15F53C9D34CFF52"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>in fiscal year 2003 (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data from the Energy Information Agency</quote> and inserting <quote>as measured by the calendar year 2003 Commercial Buildings Energy Consumption Survey or the calendar year 2005 Residential Energy Consumption Survey data from the Energy Information Administration</quote>; and</text> </clause><clause id="H1420C9C4BF334C19BCB407A7A4B40CF8"><enum>(ii)</enum><text display-inline="yes-display-inline">in the table at the end, by striking <header-in-text level="section" style="USC"><quote>Fiscal Year</quote></header-in-text> and inserting <header-in-text level="section" style="USC"><quote>Calendar Year</quote></header-in-text>; and</text> </clause></subparagraph><subparagraph id="HA55D4E587527401E9538C1B633E44FBF"><enum>(B)</enum><text>in subclause (II)—</text> <clause id="H168FAA177A854750A3050883E12857DB"><enum>(i)</enum><text>by striking <quote>(II) Upon petition</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H8BC6ADBC2CEB40C6A1A3625A2D278DCE" style="OLC"> <subclause id="H2433EBCA46794016914CB90C7BD297BC"><enum>(II)</enum><header>Downward adjustment of numeric requirement</header> <item id="H478800D79A0D43CF8675D65FDBC51810"><enum>(aa)</enum><header>In general</header><text>On petition</text> </item></subclause><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause id="HBC50A4FB0C05435DB5D67B4C2E51A075"><enum>(ii)</enum><text>by striking the last sentence and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H18B7DF8526CC465B8787BD625D660E16" style="OLC"> <item id="HD9506D02CC894B53AF59103BCFD3C63F"><enum>(bb)</enum><header>Exceptions to requirement for concurrence of Secretary</header> <subitem id="H8344B8EA682640488273D31464F34C6C"><enum>(AA)</enum><header>In general</header><text>The requirement to petition and obtain the concurrence of the Secretary under this subclause shall not apply to any Federal building with respect to which the Administrator of General Services is required to transmit a prospectus to Congress under <external-xref legal-doc="usc" parsable-cite="usc/40/3307">section 3307</external-xref> of title 40, United States Code, or to any other Federal building designed, constructed, or renovated by the Administrator if the Administrator certifies, in writing, that meeting the applicable numeric requirement under subclause (I) with respect to the Federal building would be technically impracticable in light of the specific functional needs for the building.</text> </subitem><subitem id="H0E53619D79DC4BAC8F6D99879C987610"><enum>(BB)</enum><header>Adjustment</header><text>In the case of a building described in subitem (AA), the Administrator may adjust the applicable numeric requirement of subclause (I) downward with respect to the building.</text> </subitem></item><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph id="H45703CAB722845C89AA8D1DC686FCD1A" indent="up1"><enum>(4)</enum><text>Section 436(c)(3) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17092">42 U.S.C. 17092(c)(3)</external-xref>) is amended by striking <quote>474</quote> and inserting <quote>494</quote>.</text> </paragraph><paragraph id="HE9B894ABA03341DE90B999ED3B95EA06" indent="up1"><enum>(5)</enum><text>Section 440 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17096">42 U.S.C. 17096</external-xref>) is amended by striking <quote>and 482</quote>.</text> </paragraph><paragraph id="HCD600A1FD5F3433E9A386D020B65E9BD" indent="up1"><enum>(6)</enum><text>Section 373(c) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6343">42 U.S.C. 6343(c)</external-xref>) (as amended by section 451(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1628)) is amended by striking <quote>Administrator</quote> and inserting <quote>Secretary</quote>.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HB59350D26DD44A37A30544D5AD31C434"><enum>(c)</enum><header>Date of enactment</header><text>Section 1302 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17382">42 U.S.C. 17382</external-xref>) is amended in the first sentence by striking <quote>enactment</quote> and inserting <quote>the date of enactment of this Act</quote>.</text> </subsection><subsection id="HEBA9182E8CA4430D9AE8B1497F467D8C"><enum>(d)</enum><header>Reference</header><text>Section 1306(c)(3) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17386">42 U.S.C. 17386(c)(3)</external-xref>) is amended by striking <quote>section 1307 (paragraph (17) of section 111(d) of the Public Utility Regulatory Policies Act of 1978)</quote> and inserting <quote>paragraph (19) of section 111(d) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2621">16 U.S.C. 2621(d)</external-xref>)</quote>.</text> </subsection><subsection id="H53EF2A06314B405486065C55EBE6369C"><enum>(e)</enum><header>Effective date</header><text display-inline="yes-display-inline">This section and the amendments made by this section take effect as if included in the Energy Independence and Security Act of 2007 (<external-xref legal-doc="public-law" parsable-cite="pl/110/140">Public Law 110–140</external-xref>; 121 Stat. 1492).</text> </subsection></section><section display-inline="no-display-inline" id="HEDAF528AE9F94D6182234340C94A8ABD" section-type="subsequent-section"><enum>162.</enum><header>Technical corrections to Energy Policy Act of 2005</header> <subsection id="H4D4DCAE8DC8B4F49BC7CC116E9D3C199"><enum>(a)</enum><header>Title I—Energy efficiency</header><text>Section 325(g)(8)(C)(ii) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(g)(8)(C)(ii)</external-xref>) (as added by section 135(c)(2)(B) of the Energy Policy Act of 2005) is amended by striking <quote>20°F</quote> and inserting <quote>−20°F</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HF08AC2238DE14432B9019E9E599C9EF0"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">This section and the amendments made by this section take effect as if included in the Energy Policy Act of 2005 (<external-xref legal-doc="public-law" parsable-cite="pl/109/58">Public Law 109–58</external-xref>; 119 Stat. 594).</text> </subsection></section></subtitle><subtitle id="H5016D606A271476EB4384A7DEF65EBD2"><enum>H</enum><header>Energy and Efficiency Centers and Research</header> <section id="HB85CED7AD93E4E35B9A2B16C5E355138"><enum>171.</enum><header>Energy Innovation Hubs</header> <subsection id="HAC99E064034D421A93189585A8B64370"><enum>(a)</enum><header>Purpose</header><text>The Secretary shall carry out a program to establish Energy Innovation Hubs to enhance the Nation’s economic, environmental, and energy security by promoting commercial application of clean, indigenous energy alternatives to oil and other fossil fuels, reducing greenhouse gas emissions, and ensuring that the United States maintains a technological lead in the development and commercial application of state-of-the-art energy technologies. To achieve these purposes the program shall—</text> <paragraph id="H42CF8BAE3B084511BE20A74C01BB0CE4"><enum>(1)</enum><text>leverage the expertise and resources of the university and private research communities, industry, venture capital, national laboratories, and other participants in energy innovation to support cross-disciplinary research and development in areas not being served by the private sector in order to develop and transfer innovative clean energy technologies into the marketplace;</text> </paragraph><paragraph id="HEF77109438EA4DBA95777C0C142791D5"><enum>(2)</enum><text>expand the knowledge base and human capital necessary to transition to a low-carbon economy; and</text> </paragraph><paragraph id="H7687DCA7D4AD4FAC980DFF890EFD655C"><enum>(3)</enum><text>promote regional economic development by cultivating clusters of clean energy technology firms, private research organizations, suppliers, and other complementary groups and businesses.</text> </paragraph></subsection><subsection id="H3CB9B5CDF51C41269C653F74BBB38074"><enum>(b)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H78E1908D1D744A4099D4D15A559621F5"><enum>(1)</enum><header>Allowance</header><text>The term <quote>allowance</quote> means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).</text> </paragraph><paragraph id="HE82C134596CF45768872249F203F8E14"><enum>(2)</enum><header>Clean energy technology</header><text>The term <quote>clean energy technology</quote> means a technology that—</text> <subparagraph id="HA965403DFEDB491EA557D9602F5A5ADB"><enum>(A)</enum><text>produces energy from solar, wind, geothermal, biomass, tidal, wave, ocean, and other renewable energy resources (as such term is defined in section 610 of the Public Utility Regulatory Policies Act of 1978);</text> </subparagraph><subparagraph id="H9F1D3E3069194D99AE14E1FA6B5B1BA7"><enum>(B)</enum><text>more efficiently transmits, distributes, or stores energy;</text> </subparagraph><subparagraph id="HFD058E61914543AFBF0C5F2ACEFABE60"><enum>(C)</enum><text>enhances energy efficiency for buildings and industry, including combined heat and power;</text> </subparagraph><subparagraph id="H0EC2F15800164D4CAA76D6E03224E4F8"><enum>(D)</enum><text>enables the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17381">42 U.S.C. 17381</external-xref>)), including integration of renewable energy resources and distributed generation, demand response, demand side management, and systems analysis;</text> </subparagraph><subparagraph id="H97CEC2AA257C474A9164A865A6CEF889"><enum>(E)</enum><text>produces an advanced or sustainable material with energy or energy efficiency applications;</text> </subparagraph><subparagraph id="HB796207DE2E44BF6BCD04EE455833CB8"><enum>(F)</enum><text>enhances water security through improved water management, conservation, distribution, and end use applications; or</text> </subparagraph><subparagraph id="HEF2EEEB1167E443BB76F69E88DA779DB"><enum>(G)</enum><text>improves energy efficiency for transportation, including electric vehicles.</text> </subparagraph></paragraph><paragraph id="H63A44A46F16547129686800BF48987AB"><enum>(3)</enum><header>Cluster</header><text display-inline="yes-display-inline">The term <quote>cluster</quote> means a network of entities directly involved in the research, development, finance, and commercialization of clean energy technologies whose geographic proximity facilitates utilization and sharing of skilled human resources, infrastructure, research facilities, educational and training institutions, venture capital, and input suppliers.</text> </paragraph><paragraph id="HCE303552062848198FD712925BD97C5E"><enum>(4)</enum><header>Hub</header><text>The term <quote>Hub</quote> means an Energy Innovation Hub established in accordance with this section.</text> </paragraph><paragraph id="HFFD79080A50142969F4F6D96447CE558"><enum>(5)</enum><header>Project</header><text>The term <quote>project</quote> means an activity with respect to which a Hub provides support under subsection (e).</text> </paragraph><paragraph id="H48147FEE73AD45E18AE7859FD183ED0D"><enum>(6)</enum><header>Qualifying entity</header><text>The term <quote>qualifying entity</quote> means each of the following:</text> <subparagraph id="H9EEB7C206FB5471EBC922A4418FAC799"><enum>(A)</enum><text>A research university.</text> </subparagraph><subparagraph id="HB4D52B583A034591BBA1029AEAE7DE0B"><enum>(B)</enum><text>A State or Federal institution with a focus on the advancement of clean energy technologies.</text> </subparagraph><subparagraph id="HA0DC070E15964483B247CC8EC3F1DBAD"><enum>(C)</enum><text>A nongovernmental organization with research or commercialization expertise in clean energy technology development.</text> </subparagraph></paragraph><paragraph id="HF4B3FEA4DB1F4A7CBE7A504F2C12D4B7"><enum>(7)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of Energy.</text> </paragraph><paragraph id="HB7ABFA4A266B4433BAF83D490659E5FB"><enum>(8)</enum><header>Technology development focus</header><text>The term <quote>technology development focus</quote> means the unique technology development areas in which a Hub will specialize, and may include solar electricity, fuels from solar energy, batteries and energy storage, electricity grid systems and devices, energy efficient building systems and design, advanced materials, modeling and simulation, and other clean energy technology development areas designated by the Secretary.</text> </paragraph><paragraph id="HC35AFD7C13FE4B7B9998874388CA0DCE"><enum>(9)</enum><header>Translational research</header><text>The term <quote>translational research</quote> means coordination of basic or applied research with technical and commercial applications to enable promising discoveries or inventions to attract investment sufficient for market penetration and diffusion.</text> </paragraph><paragraph id="H62D2C164EBA54C989D06D6B6ACE7A707"><enum>(10)</enum><header>Vintage year</header><text>The term <quote>vintage year</quote> has the meaning given that term in section 700 of the Clean Air Act (as added by section 312 of this Act).</text> </paragraph></subsection><subsection id="H183CFBF3DBCC4E05A2776D59CEA2ACA8"><enum>(c)</enum><header>Role of the secretary</header><text>The Secretary shall—</text> <paragraph id="H02EC14C2B0824D3F9C5ED5D9307B0BAA"><enum>(1)</enum><text>have ultimate responsibility for, and oversight of, all aspects of the program under this section;</text> </paragraph><paragraph id="H54A4FEB0A2064E5AAB264ACDB6D0743A"><enum>(2)</enum><text display-inline="yes-display-inline">provide for the distribution of allowances allocated under section 782(h)(1) of the Clean Air Act (as added by section 321 of this Act) to support the establishment of 8 Hubs, each with a unique designated technology development focus, pursuant to this section;</text> </paragraph><paragraph id="H76879D14F06142B2BBF90FC75E1D713E"><enum>(3)</enum><text display-inline="yes-display-inline">coordinate the innovation activities of Hubs with those occurring through other Department of Energy entities, including the National Laboratories, the Advanced Research Projects Agency—Energy, and Energy Frontier Research Collaborations, and within industry, including by annually—</text> <subparagraph id="H60B3748057FE48E9A16CB46443F127BA"><enum>(A)</enum><text>issuing guidance regarding national energy research and development priorities and strategic objectives; and</text> </subparagraph><subparagraph id="H6EBAF78BA14D46DF9DA183C22762CC40"><enum>(B)</enum><text>convening a conference of staff of the Department of Energy and representatives from such other entities to share research results, program plans, and opportunities for collaboration.</text> </subparagraph></paragraph></subsection><subsection id="H6EF143D47A114582932800B5FD4F7931"><enum>(d)</enum><header>Entities eligible for support</header><text>A consortium shall be eligible to receive allowances to support the establishment of a Hub under this section if—</text> <paragraph id="H88E7C19E019E4D78A5F2016A7427095F"><enum>(1)</enum><text>it is composed of—</text> <subparagraph id="H0E2FA11BC1AF41FC9FBB59C0AD4FA33A"><enum>(A)</enum><text>2 research universities with a combined annual research budget of $500,000,000; and</text> </subparagraph><subparagraph id="HF17A97A829214E12B3191095A470D3E6"><enum>(B)</enum><text>1 or more additional qualifying entities;</text> </subparagraph></paragraph><paragraph id="H6BA54955C5C747C3A06C2D62A0984D14"><enum>(2)</enum><text>its members have established a binding agreement that documents—</text> <subparagraph id="H3C79D83B390A41C7B6D6B4C1DDE5F993"><enum>(A)</enum><text>the structure of the partnership agreement;</text> </subparagraph><subparagraph id="H08613B79DE9A4AC4B1A9AF51861E05F3"><enum>(B)</enum><text>a governance and management structure to enable cost-effective implementation of the program;</text> </subparagraph><subparagraph id="H24A07789A0F14C3FA8F26394668286E4"><enum>(C)</enum><text>an intellectual property management policy;</text> </subparagraph><subparagraph id="H6AEAA710894148F69ABD9F0F29A77BEC"><enum>(D)</enum><text>a conflicts of interest policy consistent with subsection (e)(4);</text> </subparagraph><subparagraph id="H368E5CDDFEEB48D49EE8295219FA6424"><enum>(E)</enum><text>an accounting structure that meets the requirements of the Department of Energy and can be audited under subsection (f)(5); and</text> </subparagraph><subparagraph id="H27C11739A51B4580AE0D7034014C2541"><enum>(F)</enum><text>that it has an Advisory Board consistent with subsection (e)(3);</text> </subparagraph></paragraph><paragraph id="H8E21EBF66CC546CEA99A51AA60918A5E"><enum>(3)</enum><text>it receives financial contributions from States, consortium participants, or other non-Federal sources, to be used to support project awards pursuant to subsection (e);</text> </paragraph><paragraph id="HE26C98A6B8ED43F9B924C3A50AA2280E"><enum>(4)</enum><text>it is part of an existing cluster or demonstrates high potential to develop a new cluster; and</text> </paragraph><paragraph id="HB22EA6EA20FD4E28B6C16C64C22F395E"><enum>(5)</enum><text>it operates as a nonprofit organization.</text> </paragraph></subsection><subsection id="H4F218E8F6868445EB93EE5FEE98DA52B"><enum>(e)</enum><header>Energy innovation hubs</header> <paragraph id="H33A27C8CBEB84F0498DAC19C45C8112A"><enum>(1)</enum><header>Role</header><text>Hubs receiving allowances under this section shall support translational research activities leading to commercial application of clean energy technologies, in accordance with the purposes of this section, through issuance of awards to projects managed by qualifying entities and other entities meeting the Hub’s project criteria, including national laboratories. Each such Hub shall—</text> <subparagraph id="HE0A69AC85A594AA6A319CC80F3DCD847"><enum>(A)</enum><text>develop and publish for public review and comment proposed plans, programs, project selection criteria, and terms for individual project awards under this subsection;</text> </subparagraph><subparagraph id="H2CBE12F52830486B814BE4D43116B503"><enum>(B)</enum><text>submit an annual report to the Secretary summarizing the Hub’s activities, organizational expenditures, and Board members, which shall include a certification of compliance with conflict of interest policies and a description of each project in the research portfolio;</text> </subparagraph><subparagraph id="HC62CDA5C27BF48FA90702888FCDD12AE"><enum>(C)</enum><text>establish policies—</text> <clause id="HE28B1989AFCE48E6AA28B458CA9B736E"><enum>(i)</enum><text>regarding intellectual property developed as a result of Hub awards and other forms of technology support that encourage individual ingenuity and invention while speeding technology transfer and facilitating the establishment of rapid commercialization pathways;</text> </clause><clause id="H25107FE547484734912276D4E251F0EF"><enum>(ii)</enum><text>to prevent resources provided to the Hub from being used to displace private sector investment otherwise likely to occur, including investment from private sector entities that are members of the consortium;</text> </clause><clause id="HA12FC9398AEE47DBB8E43650A4A79BE4"><enum>(iii)</enum><text>to facilitate the participation of private investment firms or other private entities that invest in clean energy technologies to perform due diligence on award proposals, to participate in the award review process, and to provide guidance to projects supported by the Hub; and</text> </clause><clause id="H6E6D3DC7728F4940B4F240F1368944A8"><enum>(iv)</enum><text>to facilitate the participation of entrepreneurs with a demonstrated history of developing and commercializing clean energy technologies;</text> </clause></subparagraph><subparagraph id="HF1ABA8E57E034015AE55D1FDD35866DB"><enum>(D)</enum><text>oversee project solicitations, review proposed projects, and select projects for awards; and</text> </subparagraph><subparagraph id="H54F41E4170AE462981EAD923955441AB"><enum>(E)</enum><text>monitor project implementation.</text> </subparagraph></paragraph><paragraph id="HD623C13256474B4AB13BD6DA97C7EFD1"><enum>(2)</enum><header>Distribution of awards by hubs</header><text>A Hub shall distribute awards under this subsection to support clean energy technology projects conducting translational research and related activities, provided that at least 50 percent of such support shall be provided to projects related to the Hub’s technology development focus.</text> </paragraph><paragraph id="H3AB8DE16611F4076A00B0722FB21E7BA"><enum>(3)</enum><header>Advisory boards</header> <subparagraph id="H9D7C066110024DB49B47EDF2C4A19B90"><enum>(A)</enum><header>In general</header><text>Each Hub shall establish an Advisory Board, the members of which shall have extensive and relevant scientific, technical, industry, financial, or research management expertise. The Advisory Board shall review the Hub’s proposed plans, programs, project selection criteria, and projects and shall ensure that projects selected for awards meet the conflict of interest policies of the Hub. Advisory Board members other than those representing consortium members shall serve for no more than 3 years. All Advisory Board members shall comply with the Hub’s conflict of interest policies and procedures.</text> </subparagraph><subparagraph id="H1D6D5940E1BC4A01B6BFEE0F9F936175"><enum>(B)</enum><header>Members</header><text>Each Advisory Board shall consist of—</text> <clause id="HB4685E9C00544B9892434CC9A59B73C5"><enum>(i)</enum><text>5 members selected by the consortium’s research universities;</text> </clause><clause id="H44B8411B25094951B29BDFF3D62DC4C8"><enum>(ii)</enum><text>2 members selected by the consortium’s other qualifying entities;</text> </clause><clause id="H8186C6A53BB1410F8B51C97894C38068"><enum>(iii)</enum><text>2 members selected at large by other Advisory Board members to represent the entrepreneur and venture capital communities; and</text> </clause><clause id="H1248704CD76A4419ABE50923FBEFBCF7"><enum>(iv)</enum><text>1 member appointed by the Secretary.</text> </clause></subparagraph><subparagraph id="H5F3FC9F514BB4FAE86823A2DB1F4D0C6"><enum>(D)</enum><header>Compensation</header><text>Members of an Advisory Board may receive reimbursement for travel expenses and a reasonable stipend.</text> </subparagraph></paragraph><paragraph id="H5EC71B9C10764E089245E8F277D6E255"><enum>(4)</enum><header>Conflict of interest</header> <subparagraph id="H3A46DB8723FC47B5962DC4F4655CECD6"><enum>(A)</enum><header>Procedures</header><text>Hubs shall establish procedures to ensure that any employee or consortia designee for Hub activities who serves in a decisionmaking capacity shall—</text> <clause id="H37877EE2361647E7814FD2039A71997D"><enum>(i)</enum><text>disclose any financial interests in, or financial relationships with, applicants for or recipients of awards under this subsection, including those of his or her spouse or minor child, unless such relationships or interests would be considered to be remote or inconsequential; and</text> </clause><clause id="H1933FB1614D4403FAF9DA943E8B75C20"><enum>(ii)</enum><text>recuse himself or herself from any funding decision for projects in which he or she has a personal financial interest.</text> </clause></subparagraph><subparagraph id="HDABB13FA8DE04320856398D76C238DA1"><enum>(B)</enum><header>Disqualification and revocation</header><text>The Secretary may disqualify an application or revoke allowances distributed to the Hub or awards provided under this subsection, if cognizant officials of the Hub fail to comply with procedures required under subparagraph (A).</text> </subparagraph></paragraph></subsection><subsection id="HBE606968CB0248D8ABDA49CCDC988ECD"><enum>(f)</enum><header>Distribution of allowances to energy innovation hubs</header> <paragraph id="H6891C5E76C754A60977709CA426A56C6"><enum>(1)</enum><header>Distribution of allowances</header><text>Not later than September 30 of 2011 and each calendar year thereafter through 2049, the Secretary shall, in accordance with the requirements of this section, distribute to eligible consortia allowances allocated for the following vintage year under section 782(h)(1) of the Clean Air Act (as added by section 321 of this Act). Not less than 10 percent and not more than 30 percent of the allowances available for distribution in any given year shall be distributed to support any individual Hub under this section.</text> </paragraph><paragraph id="H1EF7C53EB727455D929328AFCE6BB22F"><enum>(2)</enum><header>Selection and schedule</header><text display-inline="yes-display-inline">Allowances to support the establishment of a Hub shall be distributed to eligible consortia (as defined in subsection (d)) selected through a competitive process. Not later than 120 days after the date of enactment of this Act, the Secretary shall solicit proposals from eligible consortia to establish Hubs, which shall be submitted not later than 180 days after the date of enactment of this Act. The Secretary shall select the program consortia not later than 270 days after the date of enactment of this Act. For at least 3 awards to consortia under this section, the Secretary shall give special consideration to applications in which 1 or more of the institutions under subsection (d)(1)(A) are 1890 Land Grant Institutions (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/7/7061">7 U.S.C. 7061</external-xref>)), Predominantly Black Institutions (as defined in section 318 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1059e">20 U.S.C. 1059e</external-xref>)), Tribal Colleges or Universities (as defined in section 316(b) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1059c">20 U.S.C. 1059c(b)</external-xref>), or Hispanic Serving Institutions (as defined in section 318 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1059e">20 U.S.C. 1059e</external-xref>)).</text> </paragraph><paragraph id="HBEE71539720A443A90D1E4E72DA23470"><enum>(3)</enum><header>Amount and term of awards</header><text>For each Hub selected to receive an award under this subsection, the Secretary shall define a quantity of allowances that shall be distributed to such Hub each year for an initial period not to exceed 5 years. The Secretary may extend the term of such award by up to 5 additional years, and a Hub may compete to receive an increase in the quantity of allowances per year that it shall receive during any such extension. A Hub shall be eligible to compete for a new award after the expiration of the term of any award, including any extension of such term, under this subsection.</text> </paragraph><paragraph id="H76CD67AA3C914C068121FE57EFE23828"><enum>(4)</enum><header>Use of allowances</header><text display-inline="yes-display-inline">Allowances distributed under this section shall be used exclusively to support project awards pursuant to subsection (e)(1) and (2), provided that a Hub may use not more than 10 percent of the value of such allowances for its administrative expenses related to making such awards. Allowances distributed under this section shall not be used for construction of new buildings or facilities for Hubs, and construction of new buildings or facilities shall not be considered as part of the non-Federal share of a cost sharing agreement under this section.</text> </paragraph><paragraph id="HE65C3FAAF55F4416955B3B6CAE66A4FA"><enum>(5)</enum><header>Audit</header><text>Each Hub shall conduct, in accordance with such requirements as the Secretary may prescribe, an annual audit to determine the extent to which allowances distributed to the Hub under this subsection, and awards under subsection (e), have been utilized in a manner consistent with this section. The auditor shall transmit a report of the results of the audit to the Secretary and to the Government Accountability Office. The Secretary shall include such report in an annual report to Congress, along with a plan to remedy any deficiencies cited in the report. The Government Accountability Office may review such audits as appropriate and shall have full access to the books, records, and personnel of the Hub to ensure that allowances distributed to the Hub under this subsection, and awards made under subsection (e), have been utilized in a manner consistent with this section.</text> </paragraph><paragraph id="HFFB2E9CF3731467BBB9A313E04B99304"><enum>(6)</enum><header>Revocation of allowances</header><text>The Secretary shall have authority to review awards made under this subsection and to revoke such awards if the Secretary determines that a Hub has used the award in a manner not consistent with the requirements of this section.</text> </paragraph></subsection></section><section id="HCF8D9388ED9F4BB49A0C4E93E5D0EE7D"><enum>172.</enum><header>Advanced energy research</header> <subsection id="HAF0C082FA3EE4F44A9B52C0F6DE17501"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H2A998E1E36E14A009AF057262022F3EF"><enum>(1)</enum><header>Allowance</header><text display-inline="yes-display-inline">The term <quote>allowance</quote> means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).</text> </paragraph><paragraph id="HFA55E12F1FA346A1B28E8900C7698FB4"><enum>(2)</enum><header>Director</header><text>The term <quote>Director</quote> means Director of the Advanced Research Projects Agency-Energy.</text> </paragraph></subsection><subsection id="H6951A50E99FF4620BC5F97CF35602CD1"><enum>(b)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than September 30 of 2011 and each calendar year thereafter through 2049, the Director shall distribute allowances allocated for the following vintage year under section 782(h)(2) of the Clean Air Act (as added by section 321 of this Act). Such allowances shall be distributed on a competitive basis to institutions of higher education, companies, research foundations, trade and industry research collaborations, or consortia of such entities, or other appropriate research and development entities to achieve the goals of the Advanced Research Projects Agency-Energy (as described in section 5012(c) of the America COMPETES Act) through targeted acceleration of—</text> <paragraph id="HBD0C1B86899B42A182F5727B52BB1F1C"><enum>(1)</enum><text>novel early-stage energy research with possible technology applications;</text> </paragraph><paragraph id="H92A644CC9C94480F98553C721082BBFC"><enum>(2)</enum><text>development of techniques, processes, and technologies, and related testing and evaluation;</text> </paragraph><paragraph id="H719BF28CA0B4434CAC2A1D34BA9870AE"><enum>(3)</enum><text>development of manufacturing processes for technologies; and</text> </paragraph><paragraph id="H9721C13CDB6B462F99761E51E9A4D9A8"><enum>(4)</enum><text>demonstration and coordination with nongovernmental entities for commercial applications of technologies and research applications.</text> </paragraph></subsection><subsection id="H02E8EFC6455545D0AC9301D205B09C51"><enum>(c)</enum><header>Responsibilities</header><text display-inline="yes-display-inline">The Director shall be responsible for assessing the success of programs and terminating programs carried out under this section that are not achieving the goals of the programs, consistent with 5012(e)(2) and (4) of the America COMPETES Act. The Director shall designate program managers whose responsibilities are consistent with 5012(f)(1)(B) of the America COMPETES Act. The Director’s reporting and coordination requirements established through 5012(g) and (h) of the America COMPETES Act shall apply to activities funded through this section.</text> </subsection><subsection id="HFD2196F8B73E4AFF9F2EB77C19171A63"><enum>(d)</enum><header>Supplement not supplant</header><text>Assistance provided under this section shall be used to supplement, and not to supplant, any other Federal resources available to carry out activities described in this section.</text> </subsection></section><section id="HCBE8128C68CC4487AD45D47219C75DBE"><enum>173.</enum><header>Building Assessment Centers</header> <subsection id="HC0F6B7E93B9544F1A317974B1FE31A80"><enum>(a)</enum><header>In general</header><text>The Secretary of Energy (in this section referred to as the <quote>Secretary</quote>) shall provide funding to institutions of higher education for Building Assessment Centers to—</text> <paragraph id="H011B1C6FA650477E988D358D37E3CC11"><enum>(1)</enum><text display-inline="yes-display-inline">identify opportunities for optimizing energy efficiency and environmental performance in existing buildings;</text> </paragraph><paragraph id="HC139AB493E094628A3FFE718F08065C8"><enum>(2)</enum><text>promote high-efficiency building construction techniques and materials options;</text> </paragraph><paragraph id="HED95D0FC5BB441CBAF9CBDC7EB210602"><enum>(3)</enum><text>promote applications of emerging concepts and technologies in commercial and institutional buildings;</text> </paragraph><paragraph id="H063F8DDA7FE6482E8AEC92F84006530C"><enum>(4)</enum><text>train engineers, architects, building scientists, and building technicians in energy-efficient design and operation;</text> </paragraph><paragraph id="H6B33D00BE22141B481142F8785FAA6A5"><enum>(5)</enum><text>assist local community colleges, trade schools, registered apprenticeship programs and other accredited training programs in training building technicians;</text> </paragraph><paragraph id="H12E76A9FF1AE495088B76A4D0AB72D8B"><enum>(6)</enum><text>promote research and development for the use of alternative energy sources to supply heat and power, for buildings, particularly energy-intensive buildings; and</text> </paragraph><paragraph id="H3BD8E0EB1AD743C0B980E94FD38C995A"><enum>(7)</enum><text>coordinate with and assist State-accredited technical training centers and community colleges, while ensuring appropriate services to all regions of the United States.</text> </paragraph></subsection><subsection id="HB410D32B0CCC4971AD089CCC69261FFC"><enum>(b)</enum><header>Coordination with regional Centers for Energy and Environmental Knowledge and Outreach</header><text display-inline="yes-display-inline">A Building Assessment Center may serve as a Center for Energy and Environmental Knowledge and Outreach established pursuant to section 174.</text> </subsection><subsection id="HD64343C7309C49B39950BD4DB346BC5F"><enum>(c)</enum><header>Coordination and duplication</header><text>The Secretary shall coordinate efforts under this section with other programs of the Department of Energy and other Federal agencies to avoid duplication of effort.</text> </subsection><subsection id="H6C1E5782F4B04835B879398024E1CB41"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary to carry out this section $50,000,000 for fiscal year 2010 and each fiscal year thereafter.</text> </subsection></section><section id="H705846449EC14A069924E8BE00A1925A"><enum>174.</enum><header>Centers for Energy and Environmental Knowledge and Outreach</header> <subsection id="H2D1EC244B1844C23A297C7582F7EB907"><enum>(a)</enum><header>Regional Centers for Energy and Environmental Knowledge and Outreach</header> <paragraph id="H76D4C6754D2C45D5A0F8BAA7E7A825F6"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary shall establish not more than 10 regional Centers for Energy and Environmental Knowledge and Outreach at institutions of higher education to coordinate with and advise industrial research and assessment centers, Building Assessment Centers, and Clean Energy Application Centers located in the region of such Center for Energy and Environmental Knowledge and Outreach.</text> </paragraph><paragraph id="HA911906FB1E245D7BC9579F4D89DBD01"><enum>(2)</enum><header>Technical assistance programs</header><text>Each Center for Energy and Environmental Knowledge and Outreach shall consist of at least one, new or existing, high performing, of the following:</text> <subparagraph id="HFC4F6138E1AD42A6BD9FB29CD1C9F9E8"><enum>(A)</enum><text>An industrial research and assessment center.</text> </subparagraph><subparagraph id="H97A6E31DB64A47098F952055278B1774"><enum>(B)</enum><text>A Clean Energy Application Center.</text> </subparagraph><subparagraph id="HE4E7E555998244B4814D582651CF8105"><enum>(C)</enum><text>A Building Assessment Center.</text> </subparagraph></paragraph><paragraph id="H6990DA0AE3684E2EA81443B6C9AEA371"><enum>(3)</enum><header>Selection criteria</header><text display-inline="yes-display-inline">The Secretary shall select Centers for Energy and Environmental Knowledge and Outreach through a competitive process, based on the following:</text> <subparagraph id="H24F21C293D834A3EA385BB6A878F7BB0"><enum>(A)</enum><text display-inline="yes-display-inline">Identification of the highest performing industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.</text> </subparagraph><subparagraph id="HEC422F6A5F604D1FB7B6C6409C4A9BDA"><enum>(B)</enum><text display-inline="yes-display-inline">The degree to which an institution of higher education maintains credibility among regional private sector organizations such as trade associations, engineering associations, and environmental organizations.</text> </subparagraph><subparagraph id="HFB621827C578448AB484B419958A8252"><enum>(C)</enum><text display-inline="yes-display-inline">The degree to which an institution of higher education is providing or has provided technical assistance, academic leadership, and market leadership in the energy arena in a manner that is consistent with the areas of focus of industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.</text> </subparagraph><subparagraph id="H60D777E9376C4A7CB6FF93CDD84EC64C"><enum>(D)</enum><text display-inline="yes-display-inline">The presence of an additional industrial research and assessment center, Clean Energy Application Center, or Building Assessment Center at the institution of higher education.</text> </subparagraph></paragraph><paragraph id="HF5267BF92D7E40AFBEE9B0E131F4B43D"><enum>(4)</enum><header>Geographic diversity</header><text display-inline="yes-display-inline">In selecting Centers for Energy and Environmental Knowledge and Outreach under this subsection, the Secretary shall ensure such Centers are distributed geographically in a relatively uniform manner to ensure all regions of the Nation are represented.</text> </paragraph><paragraph id="H30B5BA4DB48742F78322CA0644F5541B"><enum>(5)</enum><header>Regional leadership</header><text display-inline="yes-display-inline">Each Center for Energy and Environmental Knowledge and Outreach shall, to the extent possible, provide leadership to all other industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers located in the Center's geographic region, as determined by the Secretary. Such leadership shall include—</text> <subparagraph id="H31D7082A29A64556A83C7108977D11AE"><enum>(A)</enum><text display-inline="yes-display-inline">developing regional goals specific to the purview of the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers programs;</text> </subparagraph><subparagraph id="H15C660C2632E43F194B6B3086F3B6C8D"><enum>(B)</enum><text>developing regionally specific technical resources; and</text> </subparagraph><subparagraph id="H7ABD13B2608341ABA50D1807136C358A"><enum>(C)</enum><text display-inline="yes-display-inline">outreach to interested parties in the region to inform them of the information, resources, and services available through the associated industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.</text> </subparagraph></paragraph><paragraph id="H970E9A535EF84B159FE61E1E935C1C00"><enum>(6)</enum><header>Further coordination</header><text display-inline="yes-display-inline">To increase the value and capabilities of the regionally associated industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers programs, Centers for Energy and Environmental Knowledge and Outreach shall—</text> <subparagraph id="HEF4EB2AFF73E495EB770F5BF78EE0133"><enum>(A)</enum><text display-inline="yes-display-inline">coordinate with Manufacturing Extension Partnership Centers of the National Institute of Science and Technology;</text> </subparagraph><subparagraph id="H52A3443DB73B49A3BE553FE043BD154E"><enum>(B)</enum><text>coordinate with the relevant programs in the Department of Energy, including the Building Technology Program and Industrial Technologies Program;</text> </subparagraph><subparagraph id="H50A458D2299841F8BC283E43E8198E0A"><enum>(C)</enum><text display-inline="yes-display-inline">increase partnerships with the National Laboratories of the Department of Energy to leverage the expertise and technologies of the National Laboratories to achieve the goals of the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers;</text> </subparagraph><subparagraph id="H581FE9F82E224556A5E63AD7D393A8FA"><enum>(D)</enum><text>work with relevant municipal, county, and State economic development entities to leverage relevant financial incentives for capital investment and other policy tools for the protection and growth of local business and industry;</text> </subparagraph><subparagraph id="HD61453EF7B374C6D8116619EA5F0B50F"><enum>(E)</enum><text display-inline="yes-display-inline">partner with local professional and private trade associations and business development interests to leverage existing knowledge of local business challenges and opportunities;</text> </subparagraph><subparagraph id="H7AFD7BDC33DB438089554E7FD9626B89"><enum>(F)</enum><text>work with energy utilities and other administrators of publicly funded energy programs to leverage existing energy efficiency and clean energy programs;</text> </subparagraph><subparagraph id="H9B534F8F33AE482ABB0C340DF46085CB"><enum>(G)</enum><text>identify opportunities for reducing greenhouse gas emissions; and</text> </subparagraph><subparagraph id="HC2A7575326B741888087959E28EF6ED6"><enum>(H)</enum><text display-inline="yes-display-inline">promote sustainable business practices for those served by the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.</text> </subparagraph></paragraph><paragraph id="HCA9FF2B0EF73403CAAAD2BC038438119"><enum>(7)</enum><header>Workforce Training</header> <subparagraph id="H7C0DF933231F45F3856848F67E2B137C"><enum>(A)</enum><header>In general</header><text>The Secretary shall require each Center for Energy and Environmental Knowledge and Outreach to establish or maintain an internship program for the region of such Center, designed to encourage students who perform energy assessments to continue working with a particular company, building, or facility to help implement the recommendations contained in any such assessment provided to such company, building, or facility. Each Center for Energy and Environmental Knowledge and Outreach shall act as internship coordinator to help match students to available opportunities.</text> </subparagraph><subparagraph id="H729E0547CD6A4A37A309490612B6D1EF"><enum>(B)</enum><header>Federal Share</header><text>The Federal share of the cost of carrying out internship programs described under subparagraph (A) shall be 50 percent.</text> </subparagraph><subparagraph id="H77BE6D00E7E54FC48E41B64F456AA329"><enum>(C)</enum><header>Funding</header><text>Subject to the availability of appropriations, of the funds made available to carry out this subsection, the Secretary shall use to carry out this paragraph not less than $5,000,000 for fiscal year 2010 and each fiscal year thereafter.</text> </subparagraph></paragraph><paragraph id="H3E146410BE194528A5FBEF275BFA1E5D"><enum>(8)</enum><header>Small Business Loans</header><text display-inline="yes-display-inline">The Administrator of the Small Business Administration shall, to the maximum practicable, expedite consideration of applications from eligible small business concerns for loans under the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/631">15 U.S.C. 631 et seq.</external-xref>) for loans to implement recommendations of any industrial research and assessment center, Clean Energy Application Center, or Building Assessment Center.</text> </paragraph><paragraph commented="no" id="H0BC3D29F5E2140D0B83B7B761A918791"><enum>(9)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph commented="no" id="H672738EE85A14C6EA6443F996939925E"><enum>(A)</enum><header>Industrial research and assessment center</header><text display-inline="yes-display-inline">The term <term>industrial research and assessment center</term> means a center established or maintained pursuant to section 452(e) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17111">42 U.S.C. 17111(e)</external-xref>).</text> </subparagraph><subparagraph commented="no" id="H3FA2EDD39FC14B74BE1FB0CA85E18586"><enum>(B)</enum><header>Clean Energy Application Center</header><text display-inline="yes-display-inline">The term <term>Clean Energy Application Center</term> means a center redesignated and described section under section 375 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6345">42 U.S.C. 6345</external-xref>).</text> </subparagraph><subparagraph commented="no" id="H436CE33FE54E4A0C83F77FC57C7FC63D"><enum>(C)</enum><header>Building Assessment Center</header><text display-inline="yes-display-inline">The term <term>Building Assessment Center</term> means an institution of higher education-based center established pursuant to section 173.</text> </subparagraph><subparagraph id="H26E9BFA8878D46CAAC9B00548EA8571F"><enum>(D)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text> </subparagraph></paragraph><paragraph id="H11F1E6F42EAE443E9E10BB2195E62F98"><enum>(10)</enum><header>Funding</header><text display-inline="yes-display-inline">There are authorized to be appropriated to the Secretary to carry out this subsection $10,000,000 for fiscal year 2010 and each fiscal year thereafter. Subject to the availability of appropriations, of the funds made available to carry out this subsection, the Secretary shall provide to each Center for Energy and Environmental Knowledge and Outreach not less than $500,000 for fiscal year 2010 and each fiscal year thereafter.</text> </paragraph></subsection><subsection id="H871B7A24E10F49F9AA248D01A0A24304"><enum>(b)</enum><header>Integration of other technical assistance programs</header> <paragraph id="H081A7991FF3A48FE9A8307F0CEB7FA82"><enum>(1)</enum><header>Clean Energy Application Centers</header><text display-inline="yes-display-inline">Section 375 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6345">42 U.S.C. 6345</external-xref>) is amended—</text> <subparagraph id="HD051B32A94234C25AA0ED5AEC55FE164"><enum>(A)</enum><text>by redesignating subsection (f) as subsection (g); and</text> </subparagraph><subparagraph id="H8B9CBC45B9384E0994DB47CCD6D842F5"><enum>(B)</enum><text>by adding after subsection (e) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HEF3A124D1AEE4CCF813307F69370741E" style="OLC"> <subsection id="H2FD2B7C56BBC4D05BE77793A251841E7"><enum>(f)</enum><header>Coordination with Centers for Energy and Environmental Knowledge and Outreach</header><text display-inline="yes-display-inline">A Clean Energy Application Center may serve as a Center for Energy and Environmental Knowledge and Outreach established pursuant to section 174 of the <short-title>American Clean Energy and Security Act of 2009</short-title>.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="HAE8202CCF2C64AFD940EBAA030689DB5"><enum>(2)</enum><header>Industrial research and assessment centers</header><text display-inline="yes-display-inline">Section 452(e) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17111">42 U.S.C. 17111(e)</external-xref>) is amended—</text> <subparagraph id="HC1165EA4554646C38A7B178BE10E8D96"><enum>(A)</enum><text>by striking <quote>The Secretary</quote> and all that follows through <quote>shall be—</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H024CA93E74A54B3BB31C89AEB1BB3D84" style="OLC"> <paragraph id="HA42E79B41C854AA0A6BFA33BD2753B6C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall provide funding to institution of higher education-based industrial research and assessment centers, whose purposes shall be—</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph id="H475F3494BD114911AB06BE5BA5F1915F"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively (and by moving the margins of such subparagraphs 2 ems to the right); and</text> </subparagraph><subparagraph id="HF941B0070B7F4FC5B57D7AE19461B914"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HD6293289195F4DA7AD980DA34260A883" style="OLC"> <paragraph id="HE126CAFF576E4B9E991A34F50C899131"><enum>(2)</enum><header>Coordination with Centers for Energy and Environmental Knowledge and Outreach</header><text display-inline="yes-display-inline">An industrial research and assessment center may serve as a Center for Energy and Environmental Knowledge and Outreach established pursuant to section 174 of the <short-title>American Clean Energy and Security Act of 2009</short-title>.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="H3C69086460004B518DB752099A29EAA9"><enum>(c)</enum><header>Additional funding for Clean Energy Application Centers</header><text display-inline="yes-display-inline">Subsection (g) of section 375 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6345">42 U.S.C. 6345(f)</external-xref>), as redesignated by subsection (b)(1) of this section, is amended by striking <quote>$10,000,000 for each of fiscal years 2008 through 2012</quote> and inserting <quote>$30,000,000 for fiscal year 2010 and each fiscal year thereafter</quote>.</text> </subsection></section><section id="H9AD18A2BE37246E5A42EC022268C581B"><enum>175.</enum><header>High efficiency gas turbine research, development, and demonstration</header> <subsection id="H41493DE7EB90462B858ED472633156C5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Energy shall carry out a multiyear, multiphase program of research, development, and technology demonstration to improve the efficiency of gas turbines used in combined cycle power generation systems and to identify the technologies that ultimately will lead to gas turbine combined cycle efficiency of 65 percent.</text> </subsection><subsection id="HA3297C5E9A8C4752A863B6382038A514"><enum>(b)</enum><header>Program elements</header><text>The program under this section shall—</text> <paragraph id="H58FC61AE58B24A84B887F08785F1858A"><enum>(1)</enum><text>support first-of-a-kind engineering and detailed gas turbine design for utility-scale electric power generation, including—</text> <subparagraph id="H89AE0DC2C1FD4B64BDDE55CE1716E4F1"><enum>(A)</enum><text>high temperature materials, including superalloys, coatings, and ceramics;</text> </subparagraph><subparagraph id="H0ADBFAD81A0F4F999042820BFB5BD080"><enum>(B)</enum><text>improved heat transfer capability;</text> </subparagraph><subparagraph id="H858E955113B7418FB0021FEDB283BD1A"><enum>(C)</enum><text>manufacturing technology required to construct complex three-dimensional geometry parts with improved aerodynamic capability;</text> </subparagraph><subparagraph id="HCB9D5C62CCC84095A2DF18291CB4CCB6"><enum>(D)</enum><text>combustion technology to produce higher firing temperature while lowering nitrogen oxide and carbon monoxide emissions per unit of output;</text> </subparagraph><subparagraph id="HA07D77D22B414E3080204805F6C3212E"><enum>(E)</enum><text>advanced controls and systems integration;</text> </subparagraph><subparagraph id="H10382A4E6105443CAD715347A1B24C50"><enum>(F)</enum><text>advanced high performance compressor technology; and</text> </subparagraph><subparagraph id="H0B247317C99942239BCD1CC30BFA1F28"><enum>(G)</enum><text>validation facilities for the testing of components and subsystems;</text> </subparagraph></paragraph><paragraph id="HDC44E6F8A98F4CA2913D923358AB4432"><enum>(2)</enum><text>include technology demonstration through component testing, subscale testing, and full scale testing in existing fleets;</text> </paragraph><paragraph id="HE88F564A9DCB41C680E08A0900D1F70A"><enum>(3)</enum><text>include field demonstrations of the developed technology elements so as to demonstrate technical and economic feasibility; and</text> </paragraph><paragraph id="HD9B7EB2134F64A1382176DCE5F8D17DB"><enum>(4)</enum><text>assess overall combined cycle system performance.</text> </paragraph></subsection><subsection id="H39DF1A34BC6F4DCF80D1960A5E967EB7"><enum>(c)</enum><header>Program goals</header><text>The goals of the multiphase program established under subsection (a) shall be—</text> <paragraph id="H70F23DD7BCC842DAAABD9ACEB283149C"><enum>(1)</enum><text>in phase I—</text> <subparagraph id="H9979F4F476BD4374B8B364E701C2ABF1"><enum>(A)</enum><text>to develop the conceptual design of advanced high efficiency gas turbines that can achieve at least 62 percent combined cycle efficiency on a lower heating value basis; and</text> </subparagraph><subparagraph id="HAAA2CEF48E814E11966AC24C24A73E98"><enum>(B)</enum><text>to develop and demonstrate the technology required for advanced high efficiency gas turbines that can achieve at least 62 percent combined cycle efficiency on a lower heating value basis; and</text> </subparagraph></paragraph><paragraph id="HECAC698821D540EF8CC356DCD3F5F7F0"><enum>(2)</enum><text>in phase II, to develop the conceptual design for advanced high efficiency gas turbines that can achieve at least 65 percent combined cycle efficiency on a lower heating value basis.</text> </paragraph></subsection><subsection id="H382137E578A24E01B027D72D41279B1A"><enum>(d)</enum><header>Proposals</header><text>Within 180 days after the date of enactment of this section, the Secretary shall solicit proposals for conducting activities under this section. In selecting proposals, the Secretary shall emphasize—</text> <paragraph id="H0E755DFE0BE044319CE1A2AB9FE10C35"><enum>(1)</enum><text>the extent to which the proposal will stimulate the creation or increased retention of jobs in the United States; and</text> </paragraph><paragraph id="H3511A8A3DD134DA9BBA495C4294E2F4A"><enum>(2)</enum><text>the extent to which the proposal will promote and enhance United States technology leadership.</text> </paragraph></subsection><subsection id="H6EF27861DE1E43E6BB96DA06AC450A4B"><enum>(e)</enum><header>Cost sharing</header><text>Section 988 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16352">42 U.S.C. 16352</external-xref>) shall apply to an award of financial assistance made under this section.</text> </subsection><subsection id="HAD3C4569554A4C7485B3764ACD719E36"><enum>(f)</enum><header>Limits on participation</header><text>The limits on participation applicable under section 999E of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16375">42 U.S.C. 16375</external-xref>) shall apply to financial assistance awarded under this section.</text> </subsection><subsection id="H560CCDB35B174504A6D92498DC97A39B"><enum>(g)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary for carrying out this section $65,000,000 for each of fiscal years 2011 through 2014.</text> </subsection></section></subtitle><subtitle id="H8CF9A4D50C7C4D3A926F0613D66D93BE"><enum>I</enum><header>Nuclear and Advanced Technologies</header> <section id="H5F43F2F381BB4E3980BFEBDD72594A52"><enum>181.</enum><header>Revisions to loan guarantee program authority</header> <subsection id="H4D3C3328964147FC8ED011481FCA0AFD"><enum>(a)</enum><header>Definition of conditional commitment</header><text display-inline="yes-display-inline">Section 1701 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16511">42 U.S.C. 16511</external-xref>), as amended by section 130(a) of this Act, is amended by adding after paragraph (7) the following:</text> <quoted-block display-inline="no-display-inline" id="H20ED14F2B7314659BC756715C46743ED" style="OLC"> <paragraph id="H549B9A3BF04A4947AD8547A04C07116B"><enum>(8)</enum><header>Conditional commitment</header><text display-inline="yes-display-inline">The term <quote>conditional commitment</quote> means a final term sheet negotiated between the Secretary and a project sponsor or sponsors, which term sheet shall be binding on both parties and become a final loan guarantee agreement if all conditions precedent established in the term sheet, which shall include the acquisition of all necessary permits and licenses, are satisfied.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HEF505375BEA8443580F62C8861C0FDB1"><enum>(b)</enum><header>Specific appropriation or contribution</header><text display-inline="yes-display-inline">Section 1702 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512</external-xref>) is amended by striking subsection (b) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HD2750DC7B4B84E50A9ADFCAD3D65024F" style="OLC"> <subsection id="HB85958EE96EC485A83AE3E84D63C1918"><enum>(b)</enum><header>Specific appropriation or contribution</header> <paragraph id="HAD9BC31589E74942AFE5B098E80AC295"><enum>(1)</enum><header>In general</header><text>No guarantee shall be made unless—</text> <subparagraph id="H84E376A0EC88400A826CDAABB7F7B8AD"><enum>(A)</enum><text>an appropriation for the cost has been made;</text> </subparagraph><subparagraph id="H10EE4314DA344A2287B5DD882B19380C"><enum>(B)</enum><text>the Secretary has received from the borrower a payment in full for the cost of the obligation and deposited the payment into the Treasury; or</text> </subparagraph><subparagraph id="H0790C177912142869D25BBCC9DBA2B5B"><enum>(C)</enum><text>a combination of appropriations or payments from the borrower has been made sufficient to cover the cost of the obligation.</text> </subparagraph></paragraph><paragraph id="H4762594C82C14FDDB5E61EE7086DA4AD"><enum>(2)</enum><header>Limitation</header><text>The source of payments received from a borrower under paragraph (1)(B) shall not be a loan or other debt obligation that is made or guaranteed by the Federal Government.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H79A3DC6D0E8F47128D943D405EA7CB5C"><enum>(c)</enum><header>Fees</header><text display-inline="yes-display-inline">Section 1702(h) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512(h)</external-xref>) is amended by striking paragraph (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HDD8C94D1071B42C88C9AB32AE590422A" style="OLC"> <paragraph id="H1AA6373335AC4E938BC538261207F450"><enum>(2)</enum><header>Availability</header><text display-inline="yes-display-inline">Fees collected under this subsection shall—</text> <subparagraph id="H4B323B1601EB406588AA9A4C9451F34F"><enum>(A)</enum><text>be deposited by the Secretary into a special fund in the Treasury to be known as the ‘Incentives For Innovative Technologies Fund’; and</text> </subparagraph><subparagraph id="HF08C4711304F48D0BBBF2BCD943B3FEF"><enum>(B)</enum><text>remain available to the Secretary for expenditure, without further appropriation or fiscal year limitation, for administrative expenses incurred in carrying out this title.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HB190B21F39214632BA16064B3CDB822B"><enum>(d)</enum><header>Wage rate requirements</header><text display-inline="yes-display-inline">Section 1702 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H9BA48EAE1FE54BF79F8EF663E1561041" style="OLC"> <subsection id="H37BA220B57644FC580757E93702317E7"><enum>(k)</enum><header>Wage Rate Requirements</header><text display-inline="yes-display-inline">No loan guarantee shall be made under this title unless the borrower has provided to the Secretary reasonable assurances that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the guaranteed loan will be paid wages at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and <external-xref legal-doc="usc" parsable-cite="usc/40/3145">section 3145</external-xref> of title 40, United States Code.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H7833A4FF85E44CB3AB4552B1796EA987"><enum>(e)</enum><header>Subrogation</header><text>Section 1702(g)(2) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512(g)(2)</external-xref>) is amended by striking subparagraphs (B) and (C) and inserting the following:</text> <quoted-block id="H9043CE17B0804567A7BB333515090052" style="OLC"> <subparagraph id="H3893600A96984D6996CA68FD93F3A05A"><enum>(B)</enum><header>Superiority of rights</header><text>Except as provided in subparagraph (C), the rights of the Secretary, with respect to any property acquired pursuant to a guarantee or related agreements, shall be superior to the rights of any other person with respect to the property.</text> </subparagraph><subparagraph id="HED4D9AFCF15847DFA4238C380A5B96D3"><enum>(C)</enum><header>Terms and conditions</header><text>A guarantee agreement shall include such detailed terms and conditions as the Secretary determines appropriate to—</text> <clause id="H2E81C1A9242A415183B633270FF6796D"><enum>(i)</enum><text>protect the financial interests of the United States in the case of default;</text> </clause><clause id="HBFE1C84C1CC74BA18BA543E1AA0BC01B"><enum>(ii)</enum><text>have available all the patents and technology necessary for any person selected, including the Secretary, to complete and operate the project;</text> </clause><clause id="HDCDD224DE180404E93E4816FFD9193C4"><enum>(iii)</enum><text>provide for sharing the proceeds received from the sale of project assets with other creditors or control the disposition of project assets if necessary to protect the financial interests of the United States in the case of default; and</text> </clause><clause id="HE28BC5D488F340948C22E2241A8FA1C1"><enum>(iv)</enum><text>provide such lien priority in project assets as necessary to protect the financial interests of the United States in the case of a default.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H581466546F994910B705A7A8223CED8E"><enum>182.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of sections 183 through 189 of this subtitle is to promote the domestic development and deployment of clean energy technologies required for the 21st century through the establishment of a self-sustaining Clean Energy Deployment Administration that will provide for an attractive investment environment through partnership with and support of the private capital market in order to promote access to affordable financing for accelerated and widespread deployment of—</text> <paragraph id="HAB018B9799564816AE5F39A5B3F39304"><enum>(1)</enum><text>clean energy technologies;</text> </paragraph><paragraph id="H24CA574D6B6A436FA0BFA3A8EF1DD37E"><enum>(2)</enum><text>advanced or enabling energy infrastructure technologies;</text> </paragraph><paragraph id="H542E5183005B4A5FBF66A05BA8FEBEF6"><enum>(3)</enum><text>energy efficiency technologies in residential, commercial, and industrial applications, including end-use efficiency in buildings; and</text> </paragraph><paragraph id="HDEE399451FD94180B9569A43ABE71A77"><enum>(4)</enum><text>manufacturing technologies for any of the technologies or applications described in this section.</text> </paragraph></section><section id="H9147E7DBE22642F985CDCF49CEB81290"><enum>183.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text> <paragraph id="HF3A64E11638B4046A8B6AD0544056F9D"><enum>(1)</enum><header>Administration</header><text>The term <term>Administration</term> means the Clean Energy Deployment Administration established by section 186.</text> </paragraph><paragraph id="H00FD6AF3E70A48A384B01A465D48C691"><enum>(2)</enum><header>Advisory council</header><text>The term <term>Advisory Council</term> means the Energy Technology Advisory Council of the Administration.</text> </paragraph><paragraph id="HA497BFD635E64A79B7003D62E4DF755D"><enum>(3)</enum><header>Breakthrough technology</header><text>The term <term>breakthrough technology</term> means a clean energy technology that—</text> <subparagraph id="H767CF14F7F6242BBA2C4197E1DDE7BEE"><enum>(A)</enum><text>presents a significant opportunity to advance the goals developed under section 185, as assessed under the methodology established by the Advisory Council; but</text> </subparagraph><subparagraph id="HEBA683DA7190441BB22D5CBE14B2DDC4"><enum>(B)</enum><text>has generally not been considered a commercially ready technology as a result of high perceived technology risk or other similar factors.</text> </subparagraph></paragraph><paragraph id="HE3029E09CFF047828BC97D1C6F978630"><enum>(4)</enum><header>Clean energy technology</header><text>The term <term>clean energy technology</term> means a technology related to the production, use, transmission, storage, control, or conservation of energy—</text> <subparagraph id="H08D080CBB37E4D678360B1FCFF8D7F72"><enum>(A)</enum><text>that will contribute to a stabilization of atmospheric greenhouse gas concentrations thorough reduction, avoidance, or sequestration of energy-related emissions and—</text> <clause id="H6569EC77C0DA4BEA93FDCE1AE2B9B250"><enum>(i)</enum><text>reduce the need for additional energy supplies by using existing energy supplies with greater efficiency or by transmitting, distributing, or transporting energy with greater effectiveness through the infrastructure of the United States; or</text> </clause><clause id="HE9EB4D858AAA4452A2F77099D78C7CD8"><enum>(ii)</enum><text>diversify the sources of energy supply of the United States to strengthen energy security and to increase supplies with a favorable balance of environmental effects if the entire technology system is considered; and</text> </clause></subparagraph><subparagraph id="HADD431D2F1F64DB59E48BB2FC0794804"><enum>(B)</enum><text>for which, as determined by the Administrator, insufficient commercial lending is available at affordable rates to allow for widespread deployment.</text> </subparagraph></paragraph><paragraph id="H95612CDB090B4FC9BA469A51BCEAADD8"><enum>(5)</enum><header>Cost</header><text>The term <term>cost</term> has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text> </paragraph><paragraph id="H4F2B374AB8654BE19A517A7FA4178B47"><enum>(6)</enum><header>Direct loan</header><text>The term <term>direct loan</term> has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text> </paragraph><paragraph id="H61205E8A739A42AA9DFADAE9275F271F"><enum>(7)</enum><header>Fund</header><text>The term <term>Fund</term> means the Clean Energy Investment Fund established by section 184(a).</text> </paragraph><paragraph id="H62A4C81FB6BB4FE3A9F579A7705A1797"><enum>(8)</enum><header>Green bonds</header><text>The term <term>Green Bonds</term> means bonds issued pursuant to section 184.</text> </paragraph><paragraph id="HC876A0C9D77C4B4B83CB175539388ACB"><enum>(8)</enum><header>Loan guarantee</header><text>The term <term>loan guarantee</term> has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text> </paragraph><paragraph id="H25CF72C91E8540428AD45904CFB7043B"><enum>(9)</enum><header>National laboratory</header><text>The term <term>National Laboratory</term> has the meaning given the term in section 2 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15801">42 U.S.C. 15801</external-xref>).</text> </paragraph><paragraph id="HF4F21A1881FC4C8A8C19D4448C6F6F85"><enum>(10)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text> </paragraph><paragraph id="H46A27BF0260A42549DF462E25A803CE2"><enum>(11)</enum><header>State</header><text>The term <term>State</term> means—</text> <subparagraph id="HB24C8B2AF62F46C29643C68C8D22365B"><enum>(A)</enum><text>a State;</text> </subparagraph><subparagraph id="H2955DDED86CC4810A5FB9EA913947445"><enum>(B)</enum><text>the District of Columbia;</text> </subparagraph><subparagraph id="H197FF18AEAC04484845ACEB37AC8A477"><enum>(C)</enum><text>the Commonwealth of Puerto Rico; and</text> </subparagraph><subparagraph id="H419DC885F2B441CC8BDCAC1261CCE9AC"><enum>(D)</enum><text>any other territory or possession of the United States.</text> </subparagraph></paragraph><paragraph id="H48733A4D415941B0A977C911F231DCED"><enum>(12)</enum><header>Technology risk</header><text>The term <term>technology risk</term> means the risks during construction or operation associated with the design, development, and deployment of clean energy technologies (including the cost, schedule, performance, reliability and maintenance, and accounting for the perceived risk), from the perspective of commercial lenders, that may be increased as a result of the absence of adequate historical construction, operating, or performance data from commercial applications of the technology.</text> </paragraph></section><section id="HF9BDC34290974B1BBA39AB0A5903366D"><enum>184.</enum><header>Clean energy investment fund</header> <subsection id="H8F04E75B02AC40BF81B5BBE2EE0DA8BB"><enum>(a)</enum><header>Establishment</header><text>There is established in the Treasury of the United States a revolving fund, to be known as the <quote>Clean Energy Investment Fund</quote>, consisting of—</text> <paragraph id="HD05819134F6543C59174439A9331243F"><enum>(1)</enum><text>such amounts as are deposited in the Fund under this subtitle; and</text> </paragraph><paragraph id="H5944DD56832949388769D286BF1D177B"><enum>(2)</enum><text>such sums as may be appropriated to supplement the Fund.</text> </paragraph></subsection><subsection id="HB1A59354727043A1B03D66DC33D60F14"><enum>(b)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Fund such sums as are necessary to carry out this subtitle.</text> </subsection><subsection id="HC0C5A0A284E54A7FAEEA63608023C8E2"><enum>(c)</enum><header>Expenditures from fund</header> <paragraph id="H9B39245305E64AC2A828CBE0A27D5180"><enum>(1)</enum><header>In general</header><text>Amounts in the Fund shall be available to the Administrator of the Administration for obligation without fiscal year limitation, to remain available until expended.</text> </paragraph><paragraph id="H6CC4020EC0D94DD299F2E99908DF8FBB"><enum>(2)</enum><header>Administrative expenses</header> <subparagraph id="H77EE1FA0777F4A6FA41CF3B8D4FB2C25"><enum>(A)</enum><header>Fees</header><text>Fees collected for administrative expenses shall be available without limitation to cover applicable expenses.</text> </subparagraph><subparagraph id="H668724F71C8C4EFB9CD15B7952187D1A"><enum>(B)</enum><header>Fund</header><text>To the extent that administrative expenses are not reimbursed through fees, an amount not to exceed 1.5 percent of the amounts in the Fund as of the beginning of each fiscal year shall be available to pay the administrative expenses for the fiscal year necessary to carry out this subtitle.</text> </subparagraph></paragraph></subsection><subsection id="H5102F0CE34AF4A61966739F1E92FBD01"><enum>(d)</enum><header>Transfers of amounts</header> <paragraph id="H299C605F3F4D41FE8EA9ED85EC10102B"><enum>(1)</enum><header>In general</header><text>The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.</text> </paragraph><paragraph id="HDE67A3F45C2A4DA0AFADFE93FDC52290"><enum>(2)</enum><header>Adjustments</header><text>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.</text> </paragraph><paragraph id="HDDE21F2B53624998A71AD379B35803C9"><enum>(3)</enum><header>Cash flows</header><text>Cash flows associated with costs of the Fund described in section 502(5)(B) of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a(5)(B)</external-xref>) shall be transferred to appropriate credit accounts.</text> </paragraph></subsection><subsection id="HA4C185304B0844EA8F9F2E16921BD34F"><enum>(e)</enum><header>Green bonds</header> <paragraph id="HD09916A198C247A28B5C284168F2662D"><enum>(1)</enum><header>Initial capitalization</header><text>The Secretary of the Treasury shall issue Green Bonds in the amount of $7,500,000,000 on the credit of the United States to acquire capital stock of the Administration. Stock certificates evidencing ownership in the Administration shall be issued by the Administration to the Secretary of the Treasury, to the extent of payments made for the capital stock of the Administration.</text> </paragraph><paragraph id="HAE661B8D4AA04BFF97BE40AD7652C83D"><enum>(2)</enum><header>Denominations and maturity</header><text>Green Bonds shall be in such forms and denominations, and shall mature within such periods, as determined by the Secretary of the Treasury.</text> </paragraph><paragraph id="HC01CC5AF49E34F738956B17FECE1D89C"><enum>(3)</enum><header>Interest</header><text>Green Bonds shall bear interest at a rate not less than the current average yield on outstanding market obligations of the United States of comparable maturity during the month preceding the issuance of the obligation as determined by the Secretary of the Treasury.</text> </paragraph><paragraph id="HF860A1D163D645749E7C8F4075EBAAF7"><enum>(4)</enum><header>Lawful investments</header><text>Green Bonds shall be lawful investments, and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof.</text> </paragraph></subsection></section><section id="H792B18514DEA4E7C8853FFC429254E03"><enum>185.</enum><header>Energy technology deployment goals</header> <subsection id="H55794C0923114BA582A8E366AC7E9362"><enum>(a)</enum><header>Goals</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary, after consultation with the Advisory Council, shall develop and publish for review and comment in the Federal Register recommended near-, medium-, and long-term goals (including numerical performance targets at appropriate intervals to measure progress toward those goals) for the deployment of clean energy technologies through the credit support programs established by section 187 to promote—</text> <paragraph id="H9C3730F8B0904B4790E03DA362D30461"><enum>(1)</enum><text>sufficient electric generating capacity using clean energy technologies to meet the energy needs of the United States;</text> </paragraph><paragraph id="HAFD5C7F32F264AE39FBBDA034BFD391B"><enum>(2)</enum><text>clean energy technologies in vehicles and fuels that will substantially reduce the reliance of the United States on foreign sources of energy and insulate consumers from the volatility of world energy markets;</text> </paragraph><paragraph id="HBCF1561DFAC043699B514C17F73350E4"><enum>(3)</enum><text>a domestic commercialization and manufacturing capacity that will establish the United States as a world leader in clean energy technologies across multiple sectors;</text> </paragraph><paragraph id="H0C7E0F807C0B423D84C5730908573267"><enum>(4)</enum><text>installation of sufficient infrastructure to allow for the cost-effective deployment of clean energy technologies appropriate to each region of the United States;</text> </paragraph><paragraph id="H25C4EB2F9D28468DADE2532A393A1ACE"><enum>(5)</enum><text>the transformation of the building stock of the United States to zero net energy consumption;</text> </paragraph><paragraph id="HAEA471A0968F4CB7BF69330FB1D8248F"><enum>(6)</enum><text>the recovery, use, and prevention of waste energy;</text> </paragraph><paragraph id="H238844C9D2F049CCAF71DF6A5380EAD8"><enum>(7)</enum><text>domestic manufacturing of clean energy technologies on a scale that is sufficient to achieve price parity with conventional energy sources;</text> </paragraph><paragraph id="H6355F23379934688B2D959AFD468F29E"><enum>(8)</enum><text>domestic production of commodities and materials (such as steel, chemicals, polymers, and cement) using clean energy technologies so that the United States will become a world leader in environmentally sustainable production of the commodities and materials;</text> </paragraph><paragraph id="HCAC7D710BF7D498BBF40C9615E0E5AF6"><enum>(9)</enum><text>a robust, efficient, and interactive electricity transmission grid that will allow for the incorporation of clean energy technologies, distributed generation, and demand-response in each regional electric grid;</text> </paragraph><paragraph id="HC73DC2A5FF5C43D684204ABE9B829DCD"><enum>(10)</enum><text>sufficient availability of financial products to allow owners and users of residential, retail, commercial, and industrial buildings to make energy efficiency and distributed generation technology investments with reasonable payback periods;</text> </paragraph><paragraph display-inline="no-display-inline" id="H792458B2058D4547837E6B62A189ECF7"><enum>(11)</enum><text display-inline="yes-display-inline">sufficient availability of financial services and support to small businesses developing and deploying clean energy technologies through partnerships with private entities that have relevant credit expertise; and</text> </paragraph><paragraph id="HE886E8F2B62A44E79BA662F83BBF1CD2"><enum>(12)</enum><text>such other goals as the Secretary, in consultation with the Advisory Council, determines to be consistent with the purpose stated in section 182.</text> </paragraph></subsection><subsection id="H9F1705E5563D48889A82BD853ACD55FD"><enum>(b)</enum><header>Revisions</header><text>The Secretary shall revise the goals established under subsection (a), from time to time as appropriate, to account for advances in technology and changes in energy policy.</text> </subsection></section><section id="H44FC70C72BFB44EEBE74F5CD2ADC425F"><enum>186.</enum><header>Clean energy deployment administration</header> <subsection id="H0B9F72D31A194ADC8609CB21DF3050C1"><enum>(a)</enum><header>Establishment</header> <paragraph id="H8B71E2B38D2F45458687C6C4DEAD0FEC"><enum>(1)</enum><header>Establishment of corporation</header><text>There is established a corporation to be known as the Clean Energy Deployment Administration that shall be wholly owned by the United States.</text> </paragraph><paragraph id="HA1E8094ED5524645BC1EE5F21E50A56B"><enum>(2)</enum><header>Independent corporation</header><text>The Administration shall be an independent corporation. Neither the Administration nor any of its functions, powers, or duties shall be transferred to or consolidated with any other department, agency, or corporation of the Government unless the Congress provides otherwise.</text> </paragraph><paragraph id="HEE1330BA248D4A9FA1F94267BED25648"><enum>(3)</enum><header>Charter</header><text>The Administration shall be chartered for 20 years from the date of enactment of this section.</text> </paragraph><paragraph id="H322A04813E03424DAD42F4A75F8AE4C2"><enum>(4)</enum><header>Status</header> <subparagraph id="HF20408949AC7496596E503DE0A5D8A20"><enum>(A)</enum><header>Inspector general</header><text>Section 12 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—</text> <clause id="H3642DC7D7728419A83962434A4E21E83"><enum>(i)</enum><text>in paragraph (1), by inserting <quote>the Administrator of the Clean Energy Deployment Administration;</quote> after <quote>Export-Import Bank;</quote>; and</text> </clause><clause id="HF06E5D08FA3B46FB8E09C4A3FD4DE48A"><enum>(ii)</enum><text>in paragraph (2), by inserting <quote>the Clean Energy Deployment Administration,</quote> after <quote>Export-Import Bank,</quote>.</text> </clause></subparagraph></paragraph><paragraph id="H2B3DCB62175F41A5A18CE2F44F517271"><enum>(3)</enum><header>Offices</header> <subparagraph id="HE79E6D96F84746799AAC573878D2E6D0"><enum>(A)</enum><header>Principal office</header><text>The Administration shall—</text> <clause id="HCB6743389FF64789911D0325ECD770DA"><enum>(i)</enum><text>maintain the principal office of the Administration in the national capital region; and</text> </clause><clause id="H235FCF7D68D3463C966662D84557111A"><enum>(ii)</enum><text>for purposes of venue in civil actions, be considered to be a resident of the District of Columbia.</text> </clause></subparagraph><subparagraph id="H21FFF299C6BB44A2A6CB44433F06243A"><enum>(B)</enum><header>Other offices</header><text>The Administration may establish other offices in such other places as the Administration considers necessary or appropriate for the conduct of the business of the Administration.</text> </subparagraph></paragraph></subsection><subsection id="HA0BC7BD5A7AE4F19B1669E0BEAF283BE"><enum>(b)</enum><header>Administrator</header> <paragraph id="H56157B8D9B564F918D8B8EEEDA2C54F1"><enum>(1)</enum><header>In general</header><text>The Administrator of the Administration shall be—</text> <subparagraph id="HF909161557D949D794243DE0284FD879"><enum>(A)</enum><text>appointed by the President, with the advice and consent of the Senate, for a 5-year term; and</text> </subparagraph><subparagraph id="HB8B857FB0D04472794D1B4B4E85B615A"><enum>(B)</enum><text>compensated at the prevailing rate for compensation for similar positions in industry.</text> </subparagraph></paragraph><paragraph id="HC5ADEED0D6454F8EA74BE9B719AE6C58"><enum>(2)</enum><header>Duties</header><text>The Administrator of the Administration shall—</text> <subparagraph id="H80CAC4FBF0AD4B4991ADE0A6E2AF05E6"><enum>(A)</enum><text>serve as the Chief Executive Officer of the Administration and Chairman of the Board;</text> </subparagraph><subparagraph id="HBBBAAE0A01734C4AA52B0EF55D50E08A"><enum>(B)</enum><text>ensure that—</text> <clause id="HC0D76C4AAC634E04BC105ECDEE0E2CB5"><enum>(i)</enum><text>the Administration operates in a safe and sound manner, including maintenance of adequate capital and internal controls (consistent with section 404 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7262">15 U.S.C. 7262</external-xref>));</text> </clause><clause id="HF4EA70D294364E3DABD31215F23877C5"><enum>(ii)</enum><text>the operations and activities of the Administration foster liquid, efficient, competitive, and resilient energy and energy efficiency finance markets;</text> </clause><clause id="H87F6637331AC4E5386DA2E766AF0BFE5"><enum>(iii)</enum><text>the Administration carries out the purpose stated in section 182 only through activities that are authorized under and consistent with sections 182 through 189; and</text> </clause><clause id="H417083DE3EB14583A1CBA87C4CD58C0D"><enum>(iv)</enum><text>the activities of the Administration and the manner in which the Administration is operated are consistent with the public interest;</text> </clause></subparagraph><subparagraph id="H5E76476500BA4E4797EF68BC0E2D5747"><enum>(C)</enum><text>develop policies and procedures for the Administration that will—</text> <clause id="H7A6D7A310B334893967E712ADACEF6EF"><enum>(i)</enum><text>promote a self-sustaining portfolio of investments that will maximize the value of investments to effectively promote clean energy technologies;</text> </clause><clause id="H87E448C1847240BE9BAA8B1AA5E176D8"><enum>(ii)</enum><text>promote transparency and openness in Administration operations;</text> </clause><clause id="H0F2BD5AC8C044FE8949C5FA72CC8B231"><enum>(iii)</enum><text>afford the Administration with sufficient flexibility to meet the purpose stated in section 182; and</text> </clause><clause id="HAD1CCDCBD8FD4821A420E1193382F25C"><enum>(iv)</enum><text>provide for the efficient processing of applications; and</text> </clause></subparagraph><subparagraph id="H6418507D62B04226B9E3C5BC6C78685B"><enum>(D)</enum><text>with the concurrence of the Board, set expected loss reserves for the support provided by the Administration consistent with section 187(c).</text> </subparagraph></paragraph></subsection><subsection id="H0D1BA3E1ECD348F89C7518B86518C7EC"><enum>(c)</enum><header>Board of directors</header> <paragraph id="H58C1638E38024DFA9CF082F375F7BEC0"><enum>(1)</enum><header>In general</header><text>The Board of Directors of the Administration shall consist of—</text> <subparagraph id="H415B504AC9144ED9A1316283794EC152"><enum>(A)</enum><text>the Secretary or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;</text> </subparagraph><subparagraph id="H998E01A55CD24EF9A6EAAFC1E1B099D0"><enum>(B)</enum><text>the Secretary of the Treasury or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;</text> </subparagraph><subparagraph id="HBE679903B8954D318A872FFA5F350365"><enum>(C)</enum><text>the Secretary of the Interior or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;</text> </subparagraph><subparagraph id="HBBCD680DA00C427BA23D9BD2777DB712"><enum>(D)</enum><text>the Secretary of Agriculture or the designee of the Secretary, who shall serve as an ex officio member of the Board of Directors;</text> </subparagraph><subparagraph id="H878FA3FACBEA42C2836D74D0152ED60B"><enum>(E)</enum><text>the Administrator of the Administration, who shall serve as the Chairman of the Board of Directors; and</text> </subparagraph><subparagraph id="H53EC4E15DE5A495E9D4E57CCA844C3D5"><enum>(F)</enum><text>4 additional members who shall—</text> <clause id="HAC99B4445D3C477DB35216C8312D8807"><enum>(i)</enum><text>be appointed by the President, with the advice and consent of the Senate, for staggered 5-year terms; and</text> </clause><clause id="H94F14909FBBA425FB1CF802A7A247800"><enum>(ii)</enum><text>have experience in banking, financial services, technology assessment, energy regulation, or risk management, including individuals with substantial experience in the development of energy projects, the electricity generation sector, the transportation sector, the manufacturing sector, and the energy efficiency sector.</text> </clause></subparagraph></paragraph><paragraph id="H7816C0D09CD34FB98998195C56B8C739"><enum>(2)</enum><header>Duties</header><text>The Board of Directors shall—</text> <subparagraph id="H0D773F34268E48D2A2C87300DC63A9F6"><enum>(A)</enum><text>oversee the operations of the Administration and ensure industry best practices are followed in all financial transactions involving the Administration;</text> </subparagraph><subparagraph id="H123259FB310D4C88BFE27CFB3AF04667"><enum>(B)</enum><text>consult with the Administrator of the Administration on the general policies and procedures of the Administration to ensure the interests of the taxpayers are protected;</text> </subparagraph><subparagraph id="H8B43C80CAA9D40A39E8CC6D6A96764A7"><enum>(C)</enum><text>ensure the portfolio of investments are consistent with purpose stated in section 182 and with the long-term financial stability of the Administration;</text> </subparagraph><subparagraph id="H2823F6A60E204010B5B273F54A5A5501"><enum>(D)</enum><text>ensure that the operations and activities of the Administration are consistent with the development of a robust private sector that can provide commercial loans or financing products; and</text> </subparagraph><subparagraph id="H3B9620A8B86442949AC605F28BF90828"><enum>(E)</enum><text>not serve on a full-time basis, except that the Board of Directors shall meet at least quarterly to review, as appropriate, applications for credit support and set policies and procedures as necessary.</text> </subparagraph></paragraph><paragraph id="H3C585B30670348D287121F089295A10F"><enum>(3)</enum><header>Removal</header><text>An appointed member of the Board of Directors may be removed from office by the President for good cause.</text> </paragraph><paragraph id="H8C2A406DC0484E49AABA988CAB9440CC"><enum>(4)</enum><header>Vacancies</header><text>An appointed seat on the Board of Directors that becomes vacant shall be filled by appointment by the President, but only for the unexpired portion of the term of the vacating member.</text> </paragraph><paragraph id="HA19F8CE34B5C4A84B3736D742EAA7CD6"><enum>(5)</enum><header>Compensation of members</header><text>An appointed member of the Board of Directors shall be compensated at the prevailing rate for compensation for similar positions in industry.</text> </paragraph></subsection><subsection id="H47292B96BFD749EC842DC5FAFC839190"><enum>(d)</enum><header>Energy technology advisory council</header> <paragraph id="HD8E92F5F1CCB44DD827E502052200352"><enum>(1)</enum><header>In general</header><text>The Administration shall have an Energy Technology Advisory Council consisting of 8 members selected by the Board of Directors of the Administration.</text> </paragraph><paragraph id="HA846905BC6F04F9683B2B31EDC0DF08D"><enum>(2)</enum><header>Qualifications</header><text>The members of the Advisory Council shall—</text> <subparagraph id="H7FA5D9D17BDB4FCB9DAAF5238671E7F7"><enum>(A)</enum><text>have clean energy project development, clean energy finance, commercial, and/or relevant scientific expertise; and</text> </subparagraph><subparagraph id="H6B7544640BB3490DA0E2D5D70F6E48C4"><enum>(B)</enum><text>include representatives of—</text> <clause id="H244BC681A38D4A119F6BAB779B22D422"><enum>(i)</enum><text>the academic community;</text> </clause><clause id="HCF49A1385C1F42A89628F379756EB25D"><enum>(ii)</enum><text>the private research community;</text> </clause><clause id="H34D7B57B25244BBD834BB2B45B21FB8B"><enum>(iii)</enum><text>National Laboratories;</text> </clause><clause id="H6D3ACBEF255547488794A37BD5354398"><enum>(iv)</enum><text>the technology or project development community; and</text> </clause><clause id="H65F993920A424553B68EAD0E4ED7C30A"><enum>(v)</enum><text>the commercial energy financing and operations sector.</text> </clause></subparagraph></paragraph><paragraph id="H323CAE5D482A4958B6DC290255009954"><enum>(3)</enum><header>Duties</header><text>The Advisory Council shall—</text> <subparagraph id="H567A98E61D614B33BBA394F3718386C9"><enum>(A)</enum><text>develop and publish for comment in the Federal Register a methodology for assessment of clean energy technologies that will allow the Administration to evaluate projects based on the progress likely to be achieved per-dollar invested in maximizing the attributes of the definition of clean energy technology, taking into account the extent to which support for a clean energy technology is likely to accrue subsequent benefits that are attributable to a commercial scale deployment taking place earlier than that which otherwise would have occurred without the support; and</text> </subparagraph><subparagraph id="HE96892ED3C2E436A9ABE42B1FE9F8D99"><enum>(B)</enum><text>advise on the technological approaches that should be supported by the Administration to meet the technology deployment goals established by the Secretary pursuant to section 185.</text> </subparagraph></paragraph><paragraph id="HF06F71F7A94749FD941C9296D8280A35"><enum>(4)</enum><header>Term</header> <subparagraph id="HEFE894CB17D441CE888455BA136D3F09"><enum>(A)</enum><header>In general</header><text>Members of the Advisory Council shall have 5-year staggered terms, as determined by the Administrator of the Administration.</text> </subparagraph><subparagraph id="H683D779726A142E49066FB8EFF6897F9"><enum>(B)</enum><header>Reappointment</header><text>A member of the Advisory Council may be reappointed.</text> </subparagraph></paragraph><paragraph id="HADA3DA82BA6F48EBA7C78C0F9ECD7AC9"><enum>(5)</enum><header>Compensation</header><text>A member of the Advisory Council, who is not otherwise compensated as a Federal employee, 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 <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> 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 Advisory Council.</text> </paragraph></subsection><subsection id="H7E9A295E94C54AADB0F3DB08AEC92993"><enum>(e)</enum><header>Staff</header> <paragraph id="HB7E20FDDD67B4999BDCE01B2126255C6"><enum>(1)</enum><header>In general</header><text>The Administrator of the Administration, in consultation with the Board of Directors, may—</text> <subparagraph id="H8AF17963E36C442CB77472CCD7D6199A"><enum>(A)</enum><text>appoint and terminate such officers, attorneys, employees, and agents as are necessary to carry out this subtitle; and</text> </subparagraph><subparagraph id="HEB375ADF6F89468A8D8682519D7F213F"><enum>(B)</enum><text>vest those personnel with such powers and duties as the Administrator of the Administration may determine.</text> </subparagraph></paragraph></subsection><subsection id="H218F0690FE0A45BC8E250C5D73EFAD8D"><enum>(f)</enum><header>Conflicts of interest</header><text>No director, officer, attorney, agent, or employee of the Administration shall in any manner, directly or indirectly, participate in the deliberation upon, or the determination of, any question affecting such individual’s personal interests, or the interests of any corporation, partnership, or association in which such individual is directly or indirectly personally interested.</text> </subsection><subsection id="H8BCCB0E616F144818CA9FE35984B08A0"><enum>(g)</enum><header>Sunset</header> <paragraph id="H91DFF19A346448BEA3F4F5B500C442DA"><enum>(1)</enum><header>Expiration of charter</header><text>The Administration shall continue to exercise its functions until all obligations and commitments of the Administration are discharged, even after its charter has expired.</text> </paragraph><paragraph id="HAC797F59C3404D6C966D1540F9E589DE"><enum>(2)</enum><header>Prior obligations</header><text>No provisions of this subsection shall be construed as preventing the Administration from—</text> <subparagraph id="H99FCB75A5920425E878DD3E47B343651"><enum>(A)</enum><text>undertaking obligations prior to the date of the expiration of its charter which mature subsequent to such date;</text> </subparagraph><subparagraph id="HCC7D3E0A9FD1449BB9FBAA2B0AF36558"><enum>(B)</enum><text>assuming, prior to the date of the expiration of its charter, liability as guarantor, endorser, or acceptor of obligations which mature subsequent to such date; or</text> </subparagraph><subparagraph id="H4B210C74F26D47BC870D2BB65372B1E2"><enum>(C)</enum><text>continuing as a corporation and exercising any of its functions subsequent to the date of the expiration of its charter for purposes of orderly liquidation, including the administration of its assets and the collection of any obligations held by the Administration.</text> </subparagraph></paragraph></subsection></section><section id="H781D849ADF814711B4AE64CDF4B2C1E3"><enum>187.</enum><header>Direct support</header> <subsection id="H48220E26413240C595B3EDCE97122070"><enum>(a)</enum><header>In general</header><text>The Administration may issue direct loans, letters of credit, and loan guarantees to deploy clean energy technologies if the Administrator of the Administration has determined that deployment of the technologies would benefit or be accelerated by the support.</text> </subsection><subsection id="HA8FE65E406054DA1AC6ED9498ECF42E0"><enum>(b)</enum><header>Eligibility criteria</header><text>In carrying out this section and awarding credit support to projects, the Administrator of the Administration shall account for—</text> <paragraph id="HFC5F877E9BAA47A4BA8C81BA25310BA6"><enum>(1)</enum><text>how the technology rates based on an evaluation methodology established by the Advisory Council;</text> </paragraph><paragraph id="H1EE380453828445E9465376A24208AFB"><enum>(2)</enum><text>how the project fits with the goals established under section 185; and</text> </paragraph><paragraph id="H80E4DD37B69C4980BC85316E6C8E8841"><enum>(3)</enum><text>the potential for the applicant to successfully complete the project.</text> </paragraph></subsection><subsection id="HD24D873F78434685AFD2014F313FCE04"><enum>(c)</enum><header>Risk</header> <paragraph id="H521693C41E704D34880D5E618D3C4C4E"><enum>(1)</enum><header>Expected loan loss reserve</header><text>The Administrator of the Administration shall establish an expected loan loss reserve to account for estimated losses attributable to activities under this section that is consistent with the purposes of—</text> <subparagraph id="H01D67C66386246F7A12736BDB5351810"><enum>(A)</enum><text>developing breakthrough technologies to the point at which technology risk is largely mitigated;</text> </subparagraph><subparagraph id="HB69F41B85A7342A78AE393210AF313BD"><enum>(B)</enum><text>achieving widespread deployment and advancing the commercial viability of clean energy technologies; and</text> </subparagraph><subparagraph id="HD54D347084B04D7D8CA7490A1F3CD1F6"><enum>(C)</enum><text>advancing the goals established under section 185.</text> </subparagraph></paragraph><paragraph id="H94121E47B51D4E9E809F4F79CE131345"><enum>(2)</enum><header>Initial expected loan loss reserve</header><text>Until such time as the Administrator of the Administration determines sufficient data exist to establish an expected loan loss reserve that is appropriate, the Administrator of the Administration shall consider establishing an initial rate of 10 percent for the portfolio of investments under this subtitle.</text> </paragraph><paragraph id="H05E915EB8F6D44A885EC6F4ABF8C67E7"><enum>(3)</enum><header>Portfolio investment approach</header><text>The Administration shall—</text> <subparagraph id="HF80CD7BE1B8F4168994938A5C276EDA4"><enum>(A)</enum><text>use a portfolio investment approach to mitigate risk and diversify investments across technologies and ensure that no particular technology is provided more than 30 percent of the financial support available;</text> </subparagraph><subparagraph id="H96DF1FA80F85471884667E7581E8A836"><enum>(B)</enum><text>to the maximum extent practicable and consistent with long-term self-sufficiency, weigh the portfolio of investments in projects to advance the goals established under section 185;</text> </subparagraph><subparagraph id="H9CA21FEABDD244759443F8726E1627EF"><enum>(C)</enum><text>consistent with the expected loan loss reserve established under this subsection, the purpose stated in section 182, and section 186(b)(2)(B), provide the maximum practicable percentage of support to promote breakthrough technologies; and</text> </subparagraph><subparagraph id="H9E1C2A22102E4C1AB17F2D699C92EB36"><enum>(D)</enum><text>give the highest priority to investments that promote technologies that will achieve the maximum greenhouse gas emission reductions within a reasonable period of time per dollar invested and the earliest reductions in greenhouse gas emissions.</text> </subparagraph></paragraph><paragraph id="HBFBE9315118449C1897B4165DE87834F"><enum>(4)</enum><header>Loss rate review</header> <subparagraph id="H05B2BA4AD82C40378FAD9CC05C51441A"><enum>(A)</enum><header>In general</header><text>The Board of Directors shall review on an annual basis the loss rates of the portfolio to determine the adequacy of the reserves.</text> </subparagraph><subparagraph id="H1C58F5A58C764EFCA0434C3B84D2893C"><enum>(B)</enum><header>Report</header><text>Not later than 90 days after the date of the initiation of the review, the Administrator of the Administration shall submit to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate, and the Committee on Energy and Commerce and the Committee on Ways and Means of the House of Representatives a report describing the results of the review and any recommended policy changes.</text> </subparagraph></paragraph><paragraph id="H87FCAC83543C4E79B374F0B6036AE4AA"><enum>(5)</enum><header>Federal cost share</header><text>Direct loans, letters of credit and loan guarantees by the Administration shall not exceed an amount equal to 80 percent of the project cost of the facility that is the subject of the loan, letter of credit or loan guarantee, as estimated at the time at which the loan, letter of credit or loan guarantee is issued.</text> </paragraph></subsection><subsection id="HBEA9A9BEE4934A8CA54A8F1FAE80433C"><enum>(d)</enum><header>Application review</header> <paragraph id="H9ECFB5B985DC4A3BB72811273D6A0732"><enum>(1)</enum><header>In general</header><text>To the maximum extent practicable and consistent with sound business practices, the Administration shall seek to consolidate reviews of applications for credit support under this subtitle such that final decisions on applications can generally be issued not later than 180 days after the date of submission of a completed application.</text> </paragraph><paragraph id="HC52251A95D884EBFA2C0EDB5E9D047CD"><enum>(2)</enum><header>Environmental review</header><text>In carrying out this subtitle, the Administration shall, to the maximum extent practicable—</text> <subparagraph id="HDD6F8A3DC5C64A988E4FE27684893427"><enum>(A)</enum><text>avoid duplicating efforts that have already been undertaken by other agencies (including State agencies acting under Federal programs); and</text> </subparagraph><subparagraph id="H6470DACC345E41D0BB22AD175B724811"><enum>(B)</enum><text>with the advice of the Council on Environmental Quality and any other applicable agencies, use the administrative records of similar reviews conducted throughout the executive branch to develop the most expeditious review process practicable.</text> </subparagraph></paragraph></subsection><subsection id="HA7691D37D4F046BDA64DD2E91AD7259E"><enum>(e)</enum><header>Wage rate requirements</header> <paragraph id="HF40002AAE9434749807DF213351F2DA9"><enum>(1)</enum><header>In general</header><text>No credit support shall be issued under this section unless the borrower has provided to the Administrator of the Administration reasonable assurances that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the Administration will be paid wages at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code.</text> </paragraph><paragraph id="HF0A0992C46EA4265B92D29765731C192"><enum>(2)</enum><header>Labor standards</header><text>With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and <external-xref legal-doc="usc" parsable-cite="usc/40/3145">section 3145</external-xref> of title 40, United States Code.</text> </paragraph></subsection><subsection id="H9EA88E58C9544246AB5CEDED339202B3"><enum>(f)</enum><header>Limitations</header><paragraph commented="no" display-inline="yes-display-inline" id="HD9F3C42290E24382BDF580EE2DE2E789"><enum>(1)</enum><text>The Administration shall not provide direct support as defined under this section or indirect support as defined under section 188 to an individual clean energy technology project that obtained a loan guarantee under title XVII of the Energy Policy Act of 2005.</text> </paragraph><paragraph id="HD7A2F3717ED14DFFA28E284FD0E7D24F" indent="up1"><enum>(2)</enum><text>No direct or indirect support provided by the Administration may be used to pay any part of the cost of an obligation or a loan guarantee under title XVII of the Energy Policy Act of 2005.</text> </paragraph></subsection></section><section id="HFF73F952E5CB446181EF239900007300"><enum>188.</enum><header>Indirect support</header> <subsection id="HC0031F5DB0E24288A2E9971A7C5D04E0"><enum>(a)</enum><header>In general</header><text>For the purpose of enhancing the availability of private financing for clean energy technology deployment, the Administration may—</text> <paragraph id="HAC13E17CDCCA495BBC916950090F4E1B"><enum>(1)</enum><text>provide credit support to portfolios of taxable debt obligations originated by state, local, and private sector entities that enable owners and users of buildings and industrial facilities to—</text> <subparagraph id="H26877175ACC94FDB8B793DDA2D736970"><enum>(A)</enum><text>significantly increase the energy efficiency of such buildings or facilities; or</text> </subparagraph><subparagraph id="H2240353FA31C40AE969027420E754947"><enum>(B)</enum><text>install systems that individually generate electricity from renewable energy resources and have a capacity of no more than 2 megawatts;</text> </subparagraph></paragraph><paragraph id="HCEDA373FF8F84F30AB8BD2A3246A367D"><enum>(2)</enum><text>facilitate financing transactions in tax equity markets and long-term purchasing of clean energy by state, local, and non-governmental not-for-profit entities, to the degree and extent that the Administration determines such financing activity is appropriate and consistent with carrying out the purposes described in Section 182 of this Act; and</text> </paragraph><paragraph id="HB625B84FC24C4D209BDC87A6C1B1AE83"><enum>(3)</enum><text>provide credit support to portfolios of taxable debt obligations originated by state, local, and private sector entities that enable the deployment of energy storage applications for electric drive vehicles, stationary applications, and electricity transmission and distribution.</text> </paragraph></subsection><subsection id="HE324BCDBF6044FA09CC26846319B62F7"><enum>(b)</enum><header>Definitions</header><text>For purposes of the section:</text> <paragraph id="H2BE5C2BB1E66417C99DB8346F5543C1F"><enum>(1)</enum><header>Credit support</header><text>The term <term>credit support</term> means—</text> <subparagraph id="H60AD6996DF0E454CAD8CB9ADE2B2670E"><enum>(A)</enum><text>direct loans, letters of credit, loan guarantees, and insurance products; and</text> </subparagraph><subparagraph id="H4AE5071CE8F743298F412BD3BC029930"><enum>(B)</enum><text>the purchase or commitment to purchase, or the sale or commitment to sell, debt instruments (including subordinated securities).</text> </subparagraph></paragraph><paragraph id="H88858125C3D5438BBAED03911B07F4AD"><enum>(2)</enum><header>Renewable energy resource</header><text>The term <term>renewable energy resource</term> shall have the meaning given that term in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of this Act).</text> </paragraph></subsection><subsection id="HC3E434C9B5274E3FB0E62518279D441E"><enum>(c)</enum><header>Transparency</header><text>The Administration shall seek to foster through its credit support activities—</text> <paragraph id="H38299071C86348FFAA4C2242162CFCD4"><enum>(1)</enum><text>the development and consistent application of standard contractual terms, transparent underwriting standards and consistent measurement and verification protocols, as applicable; and</text> </paragraph><paragraph id="HA07E0F9D642A4847AF8698CD5B06A424"><enum>(2)</enum><text>the creation of performance data that promotes effective underwriting and risk management to support lending markets and stimulate the development of private investment markets.</text> </paragraph></subsection><subsection id="H3F8C96E6534544F0AD3BA716C6EE23C8"><enum>(d)</enum><header>Exempt securities</header><text>All securities insured or guaranteed by the Administration shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to the principal or interest by the United States, be considered to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.</text> </subsection></section><section id="HBD74FEF8B8D142C3B023DD0C5A4A852D"><enum>189.</enum><header>Federal credit authority</header> <subsection id="HA2C1C2B9D49743B5B7D9504CEE8A3582"><enum>(a)</enum><header>Payments of liabilities</header> <paragraph id="HD7531265BB8D4E07A5D7E338F385AD61"><enum>(1)</enum><header>In general</header><text>Any payment made to discharge liabilities arising from agreements under this subtitle shall be paid exclusively out of the Fund or the associated credit account, as appropriate.</text> </paragraph><paragraph id="HC79788F3C6DB40EF835B26300B9428E3"><enum>(2)</enum><header>Security</header><text>Subject to paragraph (1), the full faith and credit of the United States is pledged to the payment of all obligations entered into by the Administration pursuant to this subtitle.</text> </paragraph></subsection><subsection id="H373C209A66694BEC8E0F0DBFB425674E"><enum>(b)</enum><header>Fees</header> <paragraph id="H2EF3EB1D3CF240B09960E5D261B5471D"><enum>(1)</enum><header>In general</header><text>Consistent with achieving the purpose stated in section 182, the Administrator of the Administration shall charge fees or collect compensation generally in accordance with commercial rates.</text> </paragraph><paragraph id="H36D1440047EB461CB92E8CE83F618845"><enum>(2)</enum><header>Availability of fees</header><text>All fees collected by the Administration may be retained by the Administration and placed in the Fund and may remain available to the Administration, without further appropriation or fiscal year limitation, for use in carrying out the purpose stated in section 182.</text> </paragraph><paragraph id="H4D7EC9EF4D0A464C9482910695E6628A"><enum>(3)</enum><header>Breakthrough technologies</header><text>The Administration shall charge the minimum amount in fees or compensation practicable for breakthrough technologies, consistent with the long-term viability of the Administration, unless the Administration first determines that a higher charge will not impede the development of the technology.</text> </paragraph><paragraph id="H4DB1D7FD4AD94B2391697E032CDC966F"><enum>(4)</enum><header>Alternative fee arrangements</header><text>The Administration may use such alternative arrangements (such as profit participation, contingent fees, and other valuable contingent interests) as the Administration considers appropriate to compensate the Administration for the expenses of the Administration and the risk inherent in the support of the Administration.</text> </paragraph></subsection><subsection id="H0684C3C6952E4A759E616ECC21751A63"><enum>(c)</enum><header>Cost transfer authority</header><text>Amounts collected by the Administration for the cost of a loan or loan guarantee shall be transferred by the Administration to the respective credit accounts.</text> </subsection></section><section id="HA8007CD7582749F2A972BAB963BADFEE"><enum>190.</enum><header>General provisions</header> <subsection id="HFF2B2AC0BDC8475987930898EF41FFD0"><enum>(a)</enum><header>Immunity from impairment, limitation, or restriction</header> <paragraph id="H377B7A8108524BB497DA11D89F2EBB1B"><enum>(1)</enum><header>In general</header><text>All rights and remedies of the Administration (including any rights and remedies of the Administration on, under, or with respect to any mortgage or any obligation secured by a mortgage) shall be immune from impairment, limitation, or restriction by or under—</text> <subparagraph id="H58FA00057335444EAC81BE142B232718"><enum>(A)</enum><text>any law (other than a law enacted by Congress expressly in limitation of this paragraph) that becomes effective after the acquisition by the Administration of the subject or property on, under, or with respect to which the right or remedy arises or exists or would so arise or exist in the absence of the law; or</text> </subparagraph><subparagraph id="H5020A1C826F649569A7C880CD42A9E69"><enum>(B)</enum><text>any administrative or other action that becomes effective after the acquisition.</text> </subparagraph></paragraph><paragraph id="HAFBA12B0A0DA4EA789721936F26D0A1F"><enum>(2)</enum><header>State law</header><text>The Administrator of the Administration may conduct the business of the Administration without regard to any qualification or law of any State relating to incorporation.</text> </paragraph></subsection><subsection id="HA0417C31627E4F558118D222F7151C97"><enum>(b)</enum><header>Use of other agencies</header><text>With the consent of a department, establishment, or instrumentality (including any field office), the Administration may—</text> <paragraph id="HD39EB2D89DEA4E40A7EBFCFE4E5147D7"><enum>(1)</enum><text>use and act through any department, establishment, or instrumentality; and</text> </paragraph><paragraph id="H41896CE12BB443E69540AE9BEEB46DA0"><enum>(2)</enum><text>use, and pay compensation for, information, services, facilities, and personnel of the department, establishment, or instrumentality.</text> </paragraph></subsection><subsection id="HCCD5B01847C0413E802CF62735947044"><enum>(c)</enum><header>Financial matters</header> <paragraph id="HCD01838A8112451B9D182ECA4C8765DA"><enum>(1)</enum><header>Investments</header><text>Funds of the Administration may be invested in such investments as the Board of Directors may prescribe. Earnings from such funds, other than fees collected under section 189, may be spent by the Administration only to such extent or in such amounts as are provided in advance by appropriation Acts.</text> </paragraph><paragraph id="H008667CE9AAA40D3B847F13E52656851"><enum>(2)</enum><header>Fiscal agents</header><text>Any Federal Reserve bank or any bank as to which at the time of the designation of the bank by the Administrator of the Administration there is outstanding a designation by the Secretary of the Treasury as a general or other depository of public money, may be designated by the Administrator of the Administration as a depositary or custodian or as a fiscal or other agent of the Administration.</text> </paragraph></subsection><subsection id="H152FA5AA31454C56BF41E63F524A8DA1"><enum>(d)</enum><header>Periodic reports</header><text>Not later than 1 year after commencement of operation of the Administration and at least biannually thereafter, the Administrator of the Administration shall submit to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House of Representatives a report that includes a description of—</text> <paragraph id="H9D4423ED274C4732B9BE4376571EAB21"><enum>(1)</enum><text>the technologies supported by activities of the Administration and how the activities advance the purpose stated in section 182; and</text> </paragraph><paragraph id="H982C399E24BE45B2B7B948AFDBFDA898"><enum>(2)</enum><text>the performance of the Administration on meeting the goals established under section 185.</text> </paragraph></subsection><subsection id="HC6459EB249AB492E9B373DFD8D8DF5A3"><enum>(g)</enum><header>Audits by the comptroller general</header> <paragraph id="HE7B88883BDA44EB08CB975F144490FDB"><enum>(1)</enum><header>In general</header><text>The programs, activities, receipts, expenditures, and financial transactions of the Administration shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General.</text> </paragraph><paragraph id="H663DEF22084B41ADA656902C62435BEA"><enum>(2)</enum><header>Access</header><text>The representatives of the Government Accountability Office shall—</text> <subparagraph id="HB88BF679A8A14A72896938E43CFEC2E9"><enum>(A)</enum><text>have access to the personnel and to all books, accounts, documents, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to, under the control of, or in use by the Administration, or any agent, representative, attorney, advisor, or consultant retained by the Administration, and necessary to facilitate the audit;</text> </subparagraph><subparagraph id="HF42C781AF4684F24A0924C3EAB83A97D"><enum>(B)</enum><text>be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians;</text> </subparagraph><subparagraph id="HC6DF852EDF264A6C9E7294599A47BD77"><enum>(C)</enum><text>be authorized to obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to the audit without cost to the Comptroller General; and</text> </subparagraph><subparagraph id="HB17E7B3A7C4C4DD9A9754090D8894047"><enum>(D)</enum><text>have the right of access of the Comptroller General to such information pursuant to <external-xref legal-doc="usc" parsable-cite="usc/31/716">section 716(c)</external-xref> of title 31, United States Code.</text> </subparagraph></paragraph><paragraph id="H71215255992D4AAC8823AA4F5AC9731C"><enum>(3)</enum><header>Assistance and cost</header> <subparagraph id="HA62E94CAB4CB46CEBB11EE3526A0D35F"><enum>(A)</enum><header>In general</header><text>For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to section 3709 of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/41/5">41 U.S.C. 5</external-xref>), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes.</text> </subparagraph><subparagraph id="H99A15547F00A4F4CBCB4ADF35D580E1A"><enum>(B)</enum><header>Reimbursement</header> <clause id="HF976A1B833F6456486DF575F61950013"><enum>(i)</enum><header>In general</header><text>On the request of the Comptroller General, the Administration shall reimburse the Government Accountability Office for the full cost of any audit conducted by the Comptroller General under this subsection.</text> </clause><clause id="H44370B7A18084EF79D76AF8438F208A8"><enum>(ii)</enum><header>Crediting</header><text>Such reimbursements shall—</text> <subclause id="HF90DB84B3ECD4A98B612D6DE33EF5697"><enum>(I)</enum><text>be credited to the appropriation account entitled <quote>Salaries and Expenses, Government Accountability Office</quote> at the time at which the payment is received; and</text> </subclause><subclause id="H3B3A9C27A50E43618C18039164828C95"><enum>(II)</enum><text>remain available until expended.</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="HC83F0A9C6888409FA6CA767958F0725C"><enum>(h)</enum><header>Annual independent audits</header> <paragraph id="H9CBAD9CC163A40848651FAE1D168558A"><enum>(1)</enum><header>In general</header><text>The Administrator of the Administration shall—</text> <subparagraph id="H57DA7BA6748841F6A246FE263B93A4CD"><enum>(A)</enum><text>have an annual independent audit made of the financial statements of the Administration by an independent public accountant in accordance with generally accepted auditing standards; and</text> </subparagraph><subparagraph id="H564266F4D56F456E91CECA671EE7CAA5"><enum>(B)</enum><text>submit to the Secretary and to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House the results of the audit.</text> </subparagraph></paragraph><paragraph id="H79497751936E4474A0B1F55E3966DBE2"><enum>(2)</enum><header>Content</header><text>In conducting an audit under this subsection, the independent public accountant shall determine and report on whether the financial statements of the Administration—</text> <subparagraph id="H074199F6B6D7487F9651DB3242771BC2"><enum>(A)</enum><text>are presented fairly in accordance with generally accepted accounting principles; and</text> </subparagraph><subparagraph id="H17DFDC185B2B4587B48D86352BBC9CFB"><enum>(B)</enum><text>comply with any disclosure requirements imposed under this subtitle.</text> </subparagraph></paragraph></subsection><subsection id="HF9697F37365D4F5689358B96182B0B81"><enum>(i)</enum><header>Financial reports</header> <paragraph id="H45BA940FFFCB442DAF4C7F548B282DAD"><enum>(1)</enum><header>In general</header><text>The Administrator of the Administration shall submit to the Secretary and to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House annual and quarterly reports of the financial condition and operations of the Administration, which shall be in such form, contain such information, and be submitted on such dates as the Secretary shall require.</text> </paragraph><paragraph id="H25AEBBF41B844B1E97F0DE3C1CF3EE4F"><enum>(2)</enum><header>Contents of annual reports</header><text>Each annual report shall include—</text> <subparagraph id="H4CDE3408DF57445088C428503AC3B278"><enum>(A)</enum><text>financial statements prepared in accordance with generally accepted accounting principles;</text> </subparagraph><subparagraph id="HB619AD9DA0B142ABBEFF7EC85E91BAED"><enum>(B)</enum><text>any supplemental information or alternative presentation that the Secretary may require; and</text> </subparagraph><subparagraph id="HC3043575156F4DB6A39F2F2689744CA5"><enum>(C)</enum><text>an assessment (as of the end of the most recent fiscal year of the Administration), signed by the chief executive officer and chief accounting or financial officer of the Administration, of—</text> <clause id="HE1070E5093B5431D82335F51F118FD37"><enum>(i)</enum><text>the effectiveness of the internal control structure and procedures of the Administration; and</text> </clause><clause id="H627C414E402E4473B9BE8B8E06C6B480"><enum>(ii)</enum><text>the compliance of the Administration with applicable safety and soundness laws.</text> </clause></subparagraph></paragraph><paragraph id="H4B75F3BE99274BB6ACEFBCC6E5498638"><enum>(3)</enum><header>Special reports</header><text>The Secretary may require the Administrator of the Administration to submit other reports on the condition (including financial condition), management, activities, or operations of the Administration, as the Secretary considers appropriate.</text> </paragraph><paragraph id="HEE5384FF6A3F42CA855AF404897553A4"><enum>(4)</enum><header>Accuracy</header><text>Each report of financial condition shall contain a declaration by the Administrator of the Administration or any other officer designated by the Board of Directors of the Administration to make the declaration, that the report is true and correct to the best of the knowledge and belief of the officer.</text> </paragraph><paragraph id="H0083A2A6A3C448E7B44AE4C6AD02E49A"><enum>(5)</enum><header>Availability of reports</header><text>Reports required under this section shall be published and made publicly available as soon as is practicable after receipt by the Secretary.</text> </paragraph></subsection><subsection id="H3520B31A0ED54F99BAB273D6AB51FB27"><enum>(j)</enum><header>Spending safeguards and reporting</header> <paragraph id="HAF275521265C41DAAD3009F6C65F9830"><enum>(1)</enum><header>In general</header><text>The Administrator—</text> <subparagraph id="H1F1F5823FE9142EEA5BE5B9100188BF8"><enum>(A)</enum><text>shall require any entity receiving financing support from the Administration to report quarterly, in a format specified by the Administrator, on such entity’s use of such support and its progress fulfilling the objectives for which such support was granted, and the Administrator shall make these reports available to the public;</text> </subparagraph><subparagraph id="H26A324FC1F644EDCB35E7290E6B1A53F"><enum>(B)</enum><text>may establish additional reporting and information requirements for any recipient of financing support from the Administration;</text> </subparagraph><subparagraph id="H9BDB1ED408E741649092B4985E36E0C0"><enum>(C)</enum><text>shall establish appropriate mechanisms to ensure appropriate use and compliance with all terms of any financing support from the Administration;</text> </subparagraph><subparagraph id="H40DD98B2C52E44D18C975BA41FF659D8"><enum>(D)</enum><text>shall create and maintain a fully searchable database, accessible on the Internet (or successor protocol) at no cost to the public, that contains at least—</text> <clause id="HBC138AA3F89540AAA757D4475768DEAB"><enum>(i)</enum><text>a list of each entity that has applied for financing support;</text> </clause><clause id="H46153B97E3E044B5AFCF4648E5A5E069"><enum>(ii)</enum><text>a description of each application;</text> </clause><clause id="H56BED57827A14326A649FC31A29BDBCC"><enum>(iii)</enum><text>the status of each such application;</text> </clause><clause id="HFBD7D0E8D3EF4AC1B1CA6A7EBDD441E6"><enum>(iv)</enum><text>the name of each entity receiving financing support;</text> </clause><clause id="H5FC61FF703F04358A52BEB846CE7E965"><enum>(v)</enum><text>the purpose for which such entity is receiving such financing support;</text> </clause><clause id="H53B1285485D543C9AEF30C22CAA0C6DB"><enum>(vi)</enum><text>each quarterly report submitted by the entity pursuant to this section; and</text> </clause><clause id="H9F21C17BEC2A415D9D82DA9FB75D04B4"><enum>(vii)</enum><text>such other information sufficient to allow the public to understand and monitor the financial support provided by the Administration;</text> </clause></subparagraph><subparagraph id="H471785A9FFC74F4EA92FC0FE38D8D2BB"><enum>(E)</enum><text>shall make all financing transactions available for public inspection, including formal annual reviews by both a private auditor and the Comptroller General; and</text> </subparagraph><subparagraph id="H484664E9C16F46DBB74A5B4A48CDBE3B"><enum>(F)</enum><text>shall at all times be available to receive public comment in writing on the activities of the Administration.</text> </subparagraph></paragraph><paragraph id="H3D65A0B4FAB44C3A8CFD6CAF102AB6B1"><enum>(2)</enum><header>Protection of confidential business information</header><text>To the extent necessary and appropriate, the Administrator may redact any information regarding applicants and borrowers to protect confidential business information.</text> </paragraph></subsection></section><section id="H679B1AB9447F447DB2AEBF5ABC5E4A6A"><enum>191.</enum><header>Conforming amendments</header> <subsection id="H2FC6763CBDA64EE29CE044D1B3E7D7AE"><enum>(a)</enum><header>Tax exempt status</header><text>Subsection (l) of <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following:</text> <quoted-block id="HB80C4753D7114E528AD13AA583FE6301" style="OLC"> <paragraph id="H3F895DA108AE43578986119EF909B2B8"><enum>(4)</enum><text>The Clean Energy Deployment Administration established under section 186 of the American Clean Energy and Security Act of 2009.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC30EED558B20473689AF1330FA209B2C"><enum>(b)</enum><header>Wholly owned government corporation</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/31/9101">section 9101</external-xref> of title 31, United States Code, is amended by adding at the end the following:</text> <quoted-block id="H3BB6972142124A748D870DC99614C290" style="OLC"> <subparagraph id="HDE73EAFEFEBC4058AC0B91D3312EC02D"><enum>(S)</enum><text>the Clean Energy Deployment Administration.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle><subtitle id="H4C56E1F5BC2849E3BBFDC58DC98C3038"><enum>J</enum><header>Miscellaneous</header> <section id="H612F2922030F493498C0D72624480A22"><enum>195.</enum><header>Increased hydroelectric generation at existing Federal facilities</header> <subsection id="H606939B1E21D4E68A0A85A3CDF5053E4"><enum>(a)</enum><header>In general</header><text>The Secretary of the Interior, the Secretary of Energy, and the Secretary of the Army shall jointly update the study of the potential for increasing electric power production capability at federally owned or operated water regulation, storage, and conveyance facilities required in section 1834 of the Energy Policy Act of 2005.</text> </subsection><subsection id="H29808DF497084B1C9111FA9B80D4E037"><enum>(b)</enum><header>Content</header><text>The update under this section shall include identification and description in detail of each facility that is capable, with or without modification, of producing additional hydroelectric power, including estimation of the existing potential for the facility to generate hydroelectric power.</text> </subsection><subsection id="HBAEF4BC44F7242789027ED50629AA9B9"><enum>(c)</enum><header>Report</header><text>The Secretaries shall submit to the Committees on Energy and Commerce, Natural Resources, and Transportation and Infrastructure of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on the findings, conclusions, and recommendations of the update of the study under this section by not later than 12 months after the date of enactment of this Act. The report shall include each of the following:</text> <paragraph id="H0C8E4B0ADCE1407798516BD170FD2758"><enum>(1)</enum><text>The identifications, descriptions, and estimations referred to in subsection (b).</text> </paragraph><paragraph id="H33D1C4D5D1154E19944BF226389F4425"><enum>(2)</enum><text>A description of activities currently conducted or considered, or that could be considered, to produce additional hydroelectric power from each identified facility.</text> </paragraph><paragraph id="H753A6A20C11E4C95BB660A61924FADC8"><enum>(3)</enum><text>A summary of prior actions taken by the Secretaries to produce additional hydroelectric power from each identified facility.</text> </paragraph><paragraph id="H0F2ECB6A629848C7BAB5653884B099DD"><enum>(4)</enum><text>The costs to install, upgrade, or modify equipment or take other actions to produce additional hydroelectric power from each identified facility, and the level of Federal power customer involvement in the determination of such costs.</text> </paragraph><paragraph id="HB2C5A1D3BAE04C45BA6819D155EE1251"><enum>(5)</enum><text>The benefits that would be achieved by such installation, upgrade, modification, or other action, including quantified estimates of any additional energy or capacity from each facility identified under subsection (b).</text> </paragraph><paragraph id="H49EE0F70507F4B4EB6E7C26CFAF65B43"><enum>(6)</enum><text>A description of actions that are planned, underway, or might reasonably be considered to increase hydroelectric power production by replacing turbine runners, by performing generator upgrades or rewinds, or by construction of pumped storage facilities.</text> </paragraph><paragraph id="H0F66C913BA2B4C75A53C92D214D0E667"><enum>(7)</enum><text>The impact of increased hydroelectric power production on irrigation, water supply, fish, wildlife, Indian tribes, river health, water quality, navigation, recreation, fishing, and flood control.</text> </paragraph><paragraph id="H23D33CCDBF07473D94543529167BC383"><enum>(8)</enum><text>Any additional recommendations to increase hydroelectric power production from, and reduce costs and improve efficiency at, federally owned or operated water regulation, storage, and conveyance facilities.</text> </paragraph></subsection></section><section id="H33536BDB53484880BC4A1FC3C1B76888"><enum>196.</enum><header>Clean technology business competition grant program</header> <subsection id="H9860D6414836457B86FD56300E18B352"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Energy is authorized to provide grants to organizations to conduct business competitions that provide incentives, training, and mentorship to entrepreneurs, including minority-owned and woman-owned, and early stage start-up companies throughout the United States to meet high priority economic, environmental, and energy security goals in areas to include energy efficiency, renewable energy, air quality, water quality and conservation, transportation, smart grid, green building, and waste management. Such competitions shall have the purpose of accelerating the development and deployment of clean technology businesses and green jobs; stimulating green economic development; providing business training and mentoring to early stage clean technology companies; and strengthening the competitiveness of United States clean technology industry in world trade markets. Priority shall be given to business competitions that are private sector led, encourage regional and interregional cooperation, and can demonstrate market-driven practices and show the creation of cost-effective green jobs through an annual publication of competition activities and directory of companies.</text> </subsection><subsection id="H8270258B5C4E4ED8A2B1303D28532EC8"><enum>(b)</enum><header>Eligibility</header><text display-inline="yes-display-inline">An organization eligible for a grant under subsection (a) is—</text> <paragraph id="H2E8842B5577C41B0BCEBF67772E39AF1"><enum>(1)</enum><text>any organization described in <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)(3)</external-xref> of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; and</text> </paragraph><paragraph id="H3C49BC5476CE4716912568B2D6A222DF"><enum>(2)</enum><text display-inline="yes-display-inline">any sponsored entity of an organization described in paragraph (1) that is operated as a nonprofit entity.</text> </paragraph></subsection><subsection id="HF734A0CF0EB74706B0957F084C9B34D6"><enum>(c)</enum><header>Priority</header><text>In making grants under this section, the Secretary shall give priority to those organizations that can demonstrate broad funding support from private and other non-Federal funding sources to leverage Federal investment.</text> </subsection><subsection id="HEB9DBAFCDE854306AEDDB821DFD57559"><enum>(d)</enum><header>Authorization of appropriations</header><text>For the purpose of carrying out this section, there are authorized to be appropriated $20,000,000.</text> </subsection></section><section id="H4F771DB4323E4FC6BDEE568BDA9ADAC3"><enum>197.</enum><header>National Bioenergy Partnership</header> <subsection id="H893526F59F594786B34C25C84027957B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Energy shall establish a National Bioenergy Partnership to provide coordination among programs of State governments, the Federal Government, and the private sector that support the institutional and physical infrastructure necessary to promote the deployment of sustainable biomass fuels and bioenergy technologies for the United States.</text> </subsection><subsection id="H78AB63FA3F8A4F59BAD11858FD5236F1"><enum>(b)</enum><header>Program</header><text>The National Bioenergy Partnership shall consist of five regions, to be administered by the CONEG Policy Research Center, the Council of Great Lakes Governors, the Southern States Energy Board, the Western Governors Association, and the Pacific Regional Biomass Energy Partnership led by the Washington State University Energy Program.</text> </subsection><subsection id="HDA874591F58143F9837487064046E2E4"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated for each of fiscal years 2010 through 2014 to carry out this section—</text> <paragraph id="HC46C2883D55F410E8E083B04DB9E291C"><enum>(1)</enum><text>$5,000,000, to be allocated among the 5 regions described in subsection (b) on the basis of the number of States in each region, for distribution among the member States of that region based on procedures developed by the member States of the region; and</text> </paragraph><paragraph id="H8444C3E778934755B850F0566B59DCCF"><enum>(2)</enum><text>$2,500,000, to be allocated equally among the 5 regions described in subsection (b) for region-wide activities, including technical assistance and regional studies and coordination.</text> </paragraph></subsection></section><section id="H2B0FF7E78FF74C7A9D533AB2AF2BD2BB"><enum>198.</enum><header>Office of Consumer Advocacy</header><text display-inline="no-display-inline">Section 319 of the Federal Power Act is amended to read as follows:</text> <quoted-block id="HFB5F3249666540EE9974C24541B71320" style="OLC"> <section id="HC841782D54EB4F4C8E96CB52049EC7CE"><enum>319.</enum><header>Office of Consumer Advocacy</header> <subsection id="H74EFEA2AB04A40D38856AB1370AEB34E"><enum>(a)</enum><header>Office</header> <paragraph id="H0B2F08C2BE444134BB63DA75AE48F907"><enum>(1)</enum><header>Establishment</header><text>There is established within the Commission an Office of Consumer Advocacy to serve as an advocate for the public interest. The Office of Administrative Litigation within the Commission shall be incorporated into the Office of Consumer Advocacy.</text> </paragraph><paragraph id="HA8A0C70F52734084B40DC251CFA6A040"><enum>(2)</enum><header>Director</header><text>The Office shall be headed by a Director to be appointed by the President by and with the advice and consent of the Senate from among individuals who are licensed attorneys admitted to the Bar of any State or of the District of Columbia and who have experience in public utility proceedings.</text> </paragraph><paragraph id="H60C47CC59F0D4544822DA89F1E917281"><enum>(3)</enum><header>Duties</header><text>The Office may—</text> <subparagraph id="H0C63F426FA2F4358BE3089597D49EE06"><enum>(A)</enum><text>represent the interests of energy customers—</text> <clause id="H6BBEBDC6B23C48C6B80237DA4995619F"><enum>(i)</enum><text>on matters before the Commission concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission;</text> </clause><clause id="HEA5A85F30CD746E99572F194DEC8E965"><enum>(ii)</enum><text>as amicus curiae, in the review in the courts of the United States of rulings by the Commission in such matters; and</text> </clause><clause id="H0FF3CCDC11924AEEB6108CC4B7576AAE"><enum>(iii)</enum><text>as amicus, in hearings and proceedings in other Federal regulatory agencies and commissions related to such matters;</text> </clause></subparagraph><subparagraph id="HE1DF8CBE4FC147439E71DEDE0AF4305C"><enum>(B)</enum><text>monitor and review energy customer complaints and grievances on matters concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission;</text> </subparagraph><subparagraph id="HEAE4EF3E3AE848CCB84AFF73153164D2"><enum>(C)</enum><text>investigate independently, or within the context of formal proceedings, the services provided by, the rates charged by, and the valuation of the properties of, public utilities and natural gas companies under the jurisdiction of the Commission;</text> </subparagraph><subparagraph id="H6386C3276F254922A0F3A0555B7E86E9"><enum>(D)</enum><text>develop means, such as public dissemination of information, consultative services, and technical assistance, to ensure, to the maximum extent practicable, that the interests of energy consumers are adequately represented in the course of any hearing or proceeding described in subparagraph (A);</text> </subparagraph><subparagraph id="H9939647DB92E4FD2AC4ED4FB9FF4B221"><enum>(E)</enum><text>collect data concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission; and</text> </subparagraph><subparagraph id="H4F6ACFE30AA04D85A172F7E6116B6E9B"><enum>(F)</enum><text>prepare and issue reports and recommendations.</text> </subparagraph></paragraph><paragraph id="H7EE7D2E03C0643F18ECD8B49593C7D0B"><enum>(4)</enum><header>Compensation and powers</header><text>The Director shall be compensated at Level IV of the Executive Schedule. The Director may—</text> <subparagraph id="HEFAF8F86EB444837BBD63875D9B21EF8"><enum>(A)</enum><text>employ not more than 25 full-time professional employees at appropriate levels in the GS Scale and such additional support personnel as required; and</text> </subparagraph><subparagraph id="H0881F2C8ADF54FFABD67F552587C1B18"><enum>(B)</enum><text>procure temporary and intermittent services as needed.</text> </subparagraph></paragraph><paragraph id="H558B87C5A5294258BA71D0E984DDFBA2"><enum>(5)</enum><header>Information from other Federal agencies</header><text>The Director may request, from any department, agency, or instrumentality of the United States such information as he deems necessary to carry out his functions under this section. Upon such request, the head of the department, agency, or instrumentality concerned shall, to the extent practicable and authorized by law, provide such information to the Office.</text> </paragraph></subsection><subsection id="H7667A67F31CB46DAA9A6E4CF2C60470C"><enum>(b)</enum><header>Consumer Advocacy Advisory Committee</header> <paragraph id="HA8DC5EC972E64D3C98D54B168268C3A0"><enum>(1)</enum><header>Establishment</header><text>The Director shall establish an advisory committee to be known as Consumer Advocacy Advisory Committee (in this section referred to as the <quote>Advisory Committee</quote>) to review rates, services, and disputes and to make recommendations to the Director.</text> </paragraph><paragraph id="H55998D12C10D4067A19E376B7C7DF8F8"><enum>(2)</enum><header>Composition</header><text>The Director shall appoint 5 members to the Advisory Committee including—</text> <subparagraph id="H40CD22173052432FA06E1B2E0A0109F1"><enum>(A)</enum><text>2 individuals representing State utility consumer advocates; and</text> </subparagraph><subparagraph id="H6ED3D2CA43AC44039A1B33F59035200F"><enum>(B)</enum><text>1 individual, from a nongovernmental organization representing consumers.</text> </subparagraph></paragraph><paragraph id="HB960977D9F4D47E4BC7A81F3DF625B0E"><enum>(3)</enum><header>Meetings</header><text>The Advisory Committee shall meet at such frequency as may be required to carry out its duties.</text> </paragraph><paragraph id="H56F10F46A7964EC2BBF422F6B4FB9556"><enum>(4)</enum><header>Reports</header><text>The Director shall provide for the publication of recommendations of the Advisory Committee on the public website established for the Office.</text> </paragraph><paragraph id="H5F778EA347124C9386DE6BFA054E0F2A"><enum>(5)</enum><header>Duration</header><text>Notwithstanding any other provision of law, the Advisory Committee shall continue in operation during the period for which the Office exists.</text> </paragraph></subsection><subsection id="HC45F751973F4437E95AF6B2DDCD77545"><enum>(c)</enum><header>Definitions</header> <paragraph id="H65BE4599BF064913A9A01EDC46510A06"><enum>(1)</enum><header>Energy customer</header><text>The term <quote>energy customer</quote> means a residential customer or a small commercial customer that receives products or services directly or indirectly from a public utility or natural gas company under the jurisdiction of the Commission.</text> </paragraph><paragraph id="H19E22A4D2E31417BA1B9BCC41137EF61"><enum>(2)</enum><header>Natural gas company</header><text>The term <quote>natural gas company</quote> has the meaning given the term in section 2 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717a">15 U.S.C. 717a</external-xref>), as modified by section 601(a) of the Natural Gas Policy Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/15/3431">15 U.S.C. 3431(a)</external-xref>).</text> </paragraph><paragraph id="H767E4A9C472B4421A75CA2D5C0567E6E"><enum>(3)</enum><header>Office</header><text>The term <quote>Office</quote> means the Office of Consumer Advocacy established under this section.</text> </paragraph><paragraph id="H9016E2CB47144C9BB131FF0FD019C305"><enum>(4)</enum><header>Public utility</header><text>The term <quote>public utility</quote> has the meaning given the term in section 201(e) of this Act.</text> </paragraph><paragraph id="HFD1D16E0E20844DAA4B744F6CA0FA22E"><enum>(5)</enum><header>Small commercial customer</header><text>The term <quote>small commercial customer</quote> means a commercial customer that has a peak demand of not more than 1,000 kilowatts per hour.</text> </paragraph></subsection><subsection id="H1CDDED6FA872414D8A4362D21123F6B7"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as necessary to carry out this section.</text> </subsection><subsection id="HDEFDE64910DD4634970F4D7B21B56D40"><enum>(e)</enum><header>Savings clause</header><text>Nothing in this section affects the rights or obligations of any State utility consumer advocate.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H34CCF3B93B574739969AF272BDE60F44"><enum>199.</enum><header>Development corporation for renewable power borrowing authority</header> <subsection id="HDF14FD9B0E33460E89E3BA69BBCF8F41"><enum>(a)</enum><header>Determination</header><text>No later than 6 months after the date of enactment of this Act, the Secretary of Energy, in coordination with the Secretary of Commerce, shall—</text> <paragraph id="HA08CEDFB82E448199E533EA0AC6102F6"><enum>(1)</enum><text>determine any geographic area within the contiguous United States that lacks a Federal power marketing agency;</text> </paragraph><paragraph id="H5DDD0D487D134552AE81F5BC4BCB8A83"><enum>(2)</enum><text display-inline="yes-display-inline">develop a plan or criteria for the geographic areas identified in paragraph (1) regarding investment in renewable energy and associated infrastructure within an area identified in paragraph (1); and</text> </paragraph><paragraph id="H109C598C6E0C46048BFA58399470610E"><enum>(3)</enum><text>identify any Federal agency within an area in paragraph (1) that has, or could develop, the ability to facilitate the investment in paragraph (2).</text> </paragraph></subsection><subsection id="H2A144FA61BBB48E4A605CEEC6B8A26C5"><enum>(b)</enum><header>Report</header><text>The Secretary of Energy, in coordination with the Secretary of Commerce, shall provide the determinations made under subsection (a) to the Committee on Energy and Commerce of the House of Representatives.</text> </subsection><subsection id="H1A187CE16E5147EBAF4CE374AF0E9EB7"><enum>(c)</enum><header>Establishment</header><text>Based upon the determinations made pursuant to subsection (a), the Secretary of Energy, in coordination with the Secretary of Commerce, shall recommend to the Committee on Energy and Commerce of the House of Representatives the establishment of any new Federal lending authority, including authorization of additional lending authority for existing Federal agencies, not to exceed $3,500,000,000 per geographic area identified in subsection (a)(1).</text> </subsection><subsection id="H05D254D5BF124E05A6DD4C76A21F8989"><enum>(d)</enum><header>Authorization</header><text>$25,000,000 is authorized to be appropriated for fiscal year 2010 to carry out the provisions of this section.</text> </subsection></section><section id="H303E91237A1941BB9434563EFE28C521" section-type="subsequent-section"><enum>199A.</enum><header>Study</header><text display-inline="no-display-inline">Not later than February 1, 2011, the Secretary of Energy shall transmit to the Congress a report showing the results of a study on the use of thorium-fueled nuclear reactors for national energy needs. Such report shall include a response to the International Atomic Energy Agency study entitled <quote>Thorium fuel cycle - Potential benefits and challenges</quote> (IAEA–TECDOC–1450).</text> </section></subtitle><enum>II</enum><header>Energy Efficiency</header> <subtitle id="HCCA1C9BC1EAC483DBB2BB4A3EBF25D6E"><enum>A</enum><header>Building Energy Efficiency Programs</header> <section id="H2A4120FDE42D4CF089D4DEF7924DA57A"><enum>201.</enum><header>Greater energy efficiency in building codes</header><text display-inline="no-display-inline">Section 304 of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6833">42 U.S.C. 6833</external-xref>) is amended to read as follows:</text> <quoted-block id="H1209CEE0ADDC45728A9A3F1F7EF0429A" style="OLC"> <section id="HFCDCB5FBA684495A9FEB6516982BD2B1"><enum>304.</enum><header>Greater energy efficiency in building codes</header> <subsection id="HBE46032CE17140E880AF3B971C7FF06E"><enum>(a)</enum><header>Energy efficiency targets</header> <paragraph id="H723021D09E8B44478D9A38B86A206D83"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2) or (3), the national building code energy efficiency target for the national average percentage improvement of a building’s energy performance when built to a code meeting the target shall be—</text> <subparagraph id="H73E71F98A8E649FDA5ECB29116839902"><enum>(A)</enum><text>effective on the date of enactment of the American Clean Energy and Security Act of 2009, 30 percent reduction in energy use relative to a comparable building constructed in compliance with the baseline code;</text> </subparagraph><subparagraph id="H8B7993B858354F0782D9578441C6BF06"><enum>(B)</enum><text>effective January 1, 2014, for residential buildings, and January 1, 2015, for commercial buildings, 50 percent reduction in energy use relative to the baseline code; and</text> </subparagraph><subparagraph id="HDE54EA4397AB480BB1BF2886AC415E5B"><enum>(C)</enum><text>effective January 1, 2017, for residential buildings, and January 1, 2018, for commercial buildings, and every 3 years thereafter, respectively, through January 1, 2029, and January 1, 2030, 5 percent additional reduction in energy use relative to the baseline code.</text> </subparagraph></paragraph><paragraph id="HBB4EAB30023A4971B2C5993CB8461DD9"><enum>(2)</enum><header>Consensus-based codes</header><text>If on any effective date specified in paragraph (1)(A), (B), or (C) a successor code to the baseline codes provides for greater reduction in energy use than is required under paragraph (1), the overall percentage reduction in energy use provided by that successor code shall be the national building code energy efficiency target.</text> </paragraph><paragraph id="H53192BC04B494EC39ED31F6B26C77206"><enum>(3)</enum><header>Targets established by secretary</header><text>The Secretary may by rule establish a national building code energy efficiency target for residential or commercial buildings achieving greater reductions in energy use than the targets prescribed in paragraph (1) or (2) if the Secretary determines that such greater reductions in energy use can be achieved with a code that is life cycle cost-justified and technically feasible. The Secretary may by rule establish a national building code energy efficiency target for residential or commercial buildings achieving a reduction in energy use that is greater than zero but less than the targets prescribed in paragraph (1) or (2) if the Secretary determines that such lesser target is the maximum reduction in energy use that can be achieved through a code that is life cycle cost-justified and technically feasible.</text> </paragraph><paragraph id="H7A710D5E7A9E478FA43F8C035B249235"><enum>(4)</enum><header>Additional reductions in energy use</header><text>Effective on January 1, 2033, and once every 3 years thereafter, the Secretary shall determine, after notice and opportunity for comment, whether further energy efficiency building code improvements for residential or commercial buildings, respectively, are life cycle cost-justified and technically feasible, and shall establish updated national building code energy efficiency targets that meet such criteria.</text> </paragraph><paragraph id="H53651F3160B5451985E55EB0C7FCA22F"><enum>(5)</enum><header>Zero-net-energy buildings</header><text>In setting targets under this subsection, the Secretary shall consider ways to support the deployment of distributed renewable energy technology, and shall seek to achieve the goal of zero-net-energy commercial buildings established in section 422 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17082">42 U.S.C. 17082</external-xref>).</text> </paragraph><paragraph id="H7EA87AD1D54046329E38CE4D3C3E0E02"><enum>(6)</enum><header>Baseline code</header><text>For purposes of this section, the term <quote>baseline code</quote> means—</text> <subparagraph id="H5833B6CD4A264417933AF555C4C8D554"><enum>(A)</enum><text>for residential buildings, the 2006 International Energy Conservation Code (IECC) published by the International Code Council (ICC); and</text> </subparagraph><subparagraph id="HC9DFCBBC1BB94E51AC3183AF95BB09CB"><enum>(B)</enum><text>for commercial buildings, the code published in ASHRAE Standard 90.1–2004.</text> </subparagraph></paragraph><paragraph id="H56AA1E66000C4B6080358C0FCFF44CAD"><enum>(7)</enum><header>Consultation</header><text>In establishing the targets required by this section, the Secretary shall consult with the Director of the National Institute of Standards and Technology.</text> </paragraph></subsection><subsection id="HDE50FB8590274B189372902A190BA3F5"><enum>(b)</enum><header>National energy efficiency building codes</header> <paragraph id="H41F2508D8074429AAEECC1BAD034E524"><enum>(1)</enum><header>Requirement</header> <subparagraph id="H017057A5C0F745A991671D4D6F52938E"><enum>(A)</enum><header>In general</header><text>There shall be established national energy efficiency building codes under this subsection, for residential and commercial buildings, sufficient to meet each of the national building code energy efficiency targets established under subsection (a), not later than the date that is 1 year after the deadline for establishment of each such target, except that the national energy efficiency building code established to meet the target described in subsection (a)(1)(A) shall be established by not later than 15 months after the effective date of that target.</text> </subparagraph><subparagraph id="H948F0EE4585C48F195D2B460578380CD"><enum>(B)</enum><header>Existing code</header><text>If the Secretary finds prior to the date provided in subparagraph (A) for establishing a national code for any target that one or more energy efficiency building codes published by a recognized developer of national energy codes and standards meet or exceed the established target, the Secretary shall select the code that meets the target with the highest efficiency in the most cost-effective manner, and such code shall be the national energy efficiency building code.</text> </subparagraph><subparagraph id="H362E793A25B5438CB1568B05D4EF9C3A"><enum>(C)</enum><header>Requirement to establish code</header><text>If the Secretary does not make a finding under subparagraph (B), the national energy efficiency building code shall be established by rule by the Secretary under paragraph (2).</text> </subparagraph></paragraph><paragraph id="HA84425DC1A594E63AFE727B6845D006A"><enum>(2)</enum><header>Establishment by secretary</header> <subparagraph id="HE53E5D9B829346F8B632A8A38577E82E"><enum>(A)</enum><header>Procedure</header><text>In order to establish a national energy efficiency building code as required under paragraph (1)(C), the Secretary shall—</text> <clause id="HC5625E3B47F141F492B612AF63F4758E"><enum>(i)</enum><text>not later than 6 months prior to the effective date for each target, review existing and proposed codes published or under review by recognized developers of national energy codes and standards;</text> </clause><clause id="HDBA6252CFA7C4498B7E812737DFC6E8F"><enum>(ii)</enum><text>determine the percentage of energy efficiency improvements that are or would be achieved in such published or proposed code versions relative to the target;</text> </clause><clause id="H9E0297F6DB514CA8B357EEA1B09FAC5E"><enum>(iii)</enum><text>propose improvements to such published or proposed code versions sufficient to meet or exceed the target; and</text> </clause><clause id="H67529C728117489CB99AADE26964B2B9"><enum>(iv)</enum><text>unless a finding is made under paragraph (1)(B) with respect to a code published by a recognized developer of national energy codes and standards, adopt a code that meets or exceeds the relevant national building code energy efficiency target by not later than 1 year after the effective date of each such target, and by not later than 15 months after the target is established under subsection (a)(1)(A).</text> </clause></subparagraph><subparagraph id="HEB0D9C1AA3B544E0AAD64A773F929BFA"><enum>(B)</enum><header>Calculations</header><text>Each national energy efficiency building code established by the Secretary under this paragraph shall be set at the maximum level the Secretary determines is life cycle cost-justified and technically feasible, in accordance with the following:</text> <clause id="H310F944523A441D18F465E689CF610BB"><enum>(i)</enum><header>Savings calculations</header><text>Calculations of energy savings shall take into account the typical lifetimes of different products, measures, and system configurations.</text> </clause><clause id="H23DCCE46619349E483A69CD9B0622401"><enum>(ii)</enum><header>Cost-effectiveness calculations</header><text>Calculations of life cycle cost-effectiveness shall be based on life cycle cost methods and procedures under section 544 of the National Energy Conservation Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8254">42 U.S.C. 8254</external-xref>), but shall incorporate to the extent feasible externalities such as impacts on climate change and on peak energy demand that are not already incorporated in assumed energy costs.</text> </clause></subparagraph><subparagraph id="HBB43149029B74195B2BDB716E42685A4"><enum>(C)</enum><header>Considerations</header><text>In developing a national energy efficiency building code under this paragraph, the Secretary shall consider—</text> <clause id="H4B1E81AF3983439780B6C1B1CEEA4957"><enum>(i)</enum><text>for residential national energy efficiency building codes—</text> <subclause id="H1206C13C3AA846AABF53BD0D25E16552"><enum>(I)</enum><text>residential building standards published or proposed by ASHRAE;</text> </subclause><subclause id="H19EFA94118894337804238AF526C3277"><enum>(II)</enum><text>building codes published or proposed by the International Code Council (ICC);</text> </subclause><subclause id="HCAE7E7FFA4B843509537626601C71F05"><enum>(III)</enum><text>data from the Residential Energy Services Network (RESNET) on compliance measures utilized by consumers to qualify for the residential energy efficiency tax credits established under the Energy Policy Act of 2005;</text> </subclause><subclause id="H87FB0A06F88948D08F07221A373C2755"><enum>(IV)</enum><text>data and information from the Department of Energy’s Building America Program;</text> </subclause><subclause id="HBE68747B82E34A73B355EE3DEEB13901"><enum>(V)</enum><text>data and information from the Energy Star New Homes program;</text> </subclause><subclause id="HD1C81F49BCA44516B0EFAAD884F3F985"><enum>(VI)</enum><text>data and information from the New Building Institute and similar organizations; and</text> </subclause><subclause id="HC72B6A0AEB5B43ED8108B8E42E20D486"><enum>(VII)</enum><text>standards for practices and materials to achieve cool roofs in residential buildings, taking into consideration reduced air conditioning energy use as a function of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and local voluntary programs, without reduction of otherwise applicable ceiling insulation standards; and</text> </subclause></clause><clause id="H042854F885954E5D8AA59B010234F7AA"><enum>(ii)</enum><text>for commercial national energy efficiency building codes—</text> <subclause id="HF233049880564D90A83E8F7FFD313A56"><enum>(I)</enum><text>commercial building standards proposed by ASHRAE;</text> </subclause><subclause id="HB5BBF352AEFF49B0A1E392785E7ECC6C"><enum>(II)</enum><text>building codes proposed by the International Code Council (ICC);</text> </subclause><subclause id="H6CE1D5FCEF02498A99B9E1F46484905B"><enum>(III)</enum><text>the Core Performance Criteria published by the New Buildings Institute;</text> </subclause><subclause id="HE2093DD16A144F9E84618483EAF8832A"><enum>(IV)</enum><text>data and information developed by the Director of the Commercial High-Performance Green Building Office of the Department of Energy and any public-private partnerships established under that Office;</text> </subclause><subclause id="H27B116CFE9B340088EAEA515A246086C"><enum>(V)</enum><text>data and information from the Energy Star for Buildings program;</text> </subclause><subclause id="H4AE1C30D9EDD4525B00025A23E4A09AD"><enum>(VI)</enum><text>data and information from the New Building Institute, RESNET, and similar organizations; and</text> </subclause><subclause id="H567C417B07974064AF6F7E9F72651E61"><enum>(VII)</enum><text>standards for practices and materials to achieve cool roofs in commercial buildings, taking into consideration reduced air conditioning energy use as a function of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and local voluntary programs, without reduction of otherwise applicable ceiling insulation standards.</text> </subclause></clause></subparagraph><subparagraph id="H6DD9FFCC6A0643A39B9C2B0CF22F2EB1"><enum>(D)</enum><header>Consultation</header><text>In establishing any national energy efficiency building code required by this section, the Secretary shall consult with the Director of the National Institute of Standards and Technology.</text> </subparagraph></paragraph><paragraph id="H78EC0D1BF29E4354ADC543B2A7970095"><enum>(3)</enum><header>Consensus standard assistance</header><subparagraph commented="no" display-inline="yes-display-inline" id="H6BA50AB417494C9CAFD09557F766471C"><enum>(A)</enum><text>To support the development of consensus standards that may provide the basis for national energy efficiency building codes, minimize duplication of effort, encourage progress through consensus, and facilitate the development of greater building efficiency, the Secretary shall provide assistance to recognized developers of national energy codes and standards to develop, and where the relevant code has been adopted as the national code, disseminate consensus based energy efficiency building codes as provided in this paragraph.</text> </subparagraph><subparagraph id="H2AFE6EA69AB74F5B9EBC566549EB402B" indent="up1"><enum>(B)</enum><text>Upon a finding by the Secretary that a code developed by such a developer meets a target established under subsection (a), the Secretary shall—</text> <clause id="HC31899C32C4A4314BE43F67FD31AC29A"><enum>(i)</enum><text>send notice of the Secretary’s finding to all duly authorized or appointed State, tribal, and local code agencies; and</text> </clause><clause id="H5B896C13EA9D4CBE9B92613A24E77446"><enum>(ii)</enum><text>provide sufficient support to such a developer to make the code available on the Internet, or to accomplish distribution of such code to all such State, tribal, and local code agencies at no cost to the State, tribal, and local code agencies.</text> </clause></subparagraph><subparagraph id="H400D9F3773A0401A8ECFB7557A70EAE6" indent="up1"><enum>(C)</enum><text>The Secretary may contract with such a developer and with other organizations with expertise on codes to provide training for State, tribal, and local code officials and building inspectors in the implementation and enforcement of such code.</text> </subparagraph><subparagraph id="H613BBCC8775340D9B0BBF820EF3E2C96" indent="up1"><enum>(D)</enum><text>The Secretary may provide grants and other support to such a developer to—</text> <clause id="HCE3A0480B4D544E4A00FF8D62AF4A9AC"><enum>(i)</enum><text>develop appropriate refinements to such code; and</text> </clause><clause id="H753EE046E150481CBC8F7EC1A51ABFB5"><enum>(ii)</enum><text>support analysis of options for improvements in the code to meet the next scheduled target.</text> </clause></subparagraph></paragraph><paragraph id="H28B8B4E5BCAD4867ABFD4BD50ADBBE02"><enum>(4)</enum><header>Code developed by secretary</header><text>If the Secretary establishes a national energy efficiency building code under paragraph (2), the Secretary shall—</text> <subparagraph id="H5E8C10AF7EB24141B03CAAEF441FE59D"><enum>(A)</enum><text>to the extent that such code is based on a prior code developed by a recognized developer of national energy codes and standards, negotiate and provide appropriate compensation to such developer for the use of the code materials that remain in the code established by the Secretary; and</text> </subparagraph><subparagraph id="H74859A3BB20B4E20B0A0BE80326B553F"><enum>(B)</enum><text>disseminate the national energy efficiency building codes to State, tribal, and local code officials, and support training and provide guidance and technical assistance to such officials as appropriate.</text> </subparagraph></paragraph></subsection><subsection id="H6A024856AE7D45DC914B6493BB1A5CBA"><enum>(c)</enum><header>State adoption of energy efficiency building codes</header> <paragraph id="H2C1E5DF8B8AA465C8AA39F6E6C3E6548"><enum>(1)</enum><header>Requirement</header><text>Not later than 1 year after a national energy efficiency building code for residential or commercial buildings is established or revised under subsection (b), each State—</text> <subparagraph id="H3C3594A8128346858FB491AAB8E29E73"><enum>(A)</enum><text>shall—</text> <clause id="H57730F649CAC4D97B5CA69A1BA65F9BC"><enum>(i)</enum><text>review and update the provisions of its building code regarding energy efficiency to meet or exceed the target met in the new national energy efficiency building code, to achieve equivalent or greater energy savings;</text> </clause><clause id="HA053556CA3334AF7A659C485F509FA88"><enum>(ii)</enum><text>document, where local governments establish building codes, that local governments representing not less than 80 percent of the State’s urban population have adopted the new national code, or have adopted local codes that meet or exceed the target met in the new national code to achieve equivalent or greater energy savings; or</text> </clause><clause id="HB95FA98DC2A34857A5AC2B0A5E7BE3D9"><enum>(iii)</enum><text>adopt the new national code; and</text> </clause></subparagraph><subparagraph id="HA712E0DCB525496AB4F94B46620E1F91"><enum>(B)</enum><text>shall provide a certification to the Secretary demonstrating that energy efficiency building code provisions that apply pursuant to subparagraph (A) in that State meet or exceed the target met by the new national code, to achieve equivalent or greater energy savings.</text> </subparagraph></paragraph><paragraph id="H275261E815AB472CA020FB0A31126708"><enum>(2)</enum><header>Confirmation</header> <subparagraph id="HA4FC04779E03443F91B6582979140194"><enum>(A)</enum><header>Requirement</header><text>Not later than 90 days after a State certification is provided under paragraph (1)(B), the Secretary shall determine whether the State’s energy efficiency building code provisions meet the requirements of this subsection.</text> </subparagraph><subparagraph id="H818197BAFCA240DB92C0848B875C438C"><enum>(B)</enum><header>Acceptance by secretary</header><text>If the Secretary determines under subparagraph (A) that the State’s energy efficiency building code or codes meet the requirements of this subsection, the Secretary shall accept the certification.</text> </subparagraph><subparagraph id="H1D2D5E801FD64EF989CB9D188288F3E8"><enum>(C)</enum><header>Deficiency notice</header><text>If the Secretary determines under subparagraph (A) that the State’s building code or codes do not meet the requirements of this subsection, the Secretary shall identify the deficiency in meeting the national building code energy efficiency target, and, to the extent possible, indicate areas where further improvement in the State’s code provisions would allow the deficiency to be eliminated.</text> </subparagraph><subparagraph id="HA6766CB7F47046F38EA9B1D458D10CFA"><enum>(D)</enum><header>Revision of code and recertification</header><text>A State may revise its code or codes and submit a recertification under paragraph (1)(B) to the Secretary at any time.</text> </subparagraph></paragraph><paragraph id="H9363E6FE4F704AFD81CA60F293F81ACC"><enum>(3)</enum><header>Compliant code</header><text>For the purposes of meeting the target described in subsection (a)(1)(A) for residential buildings, a State that adopts the code represented in California’s Title 24-2009 by the date 27 months after the date of enactment of the American Clean Energy and Security Act of 2009 shall be considered to have met the requirements of this subsection for the applicable period.</text> </paragraph></subsection><subsection id="H38D59835F064491A8A1EBF30BB01B8CC"><enum>(d)</enum><header>Application of national code to state and local jurisdictions</header> <paragraph id="H4AD8350B29CC461B80246B03A37F0A4B"><enum>(1)</enum><header>In general</header><text>Upon the expiration of 18 months after a national energy efficiency building code is established under subsection (b), in any jurisdiction where the State has not had a certification relating to that code accepted by the Secretary under subsection (c)(2)(B), and the local government has not had a certification relating to that code accepted by the Secretary under subsection (e)(5), the national energy efficiency building code shall become the applicable energy efficiency building code for such jurisdiction.</text> </paragraph><paragraph id="H326EE0E84A234E93A568DD2D87DD4715"><enum>(2)</enum><header>Conflicts</header><text>In the event of a conflict between a provision of the national energy efficiency building code and a provision of other applicable energy codes, the national energy efficiency building code shall apply. If there is a conflict between a provision of the national energy efficiency building code and a provision of any applicable fire code, life safety code, egress code, or accessibility code, the Secretary shall take appropriate actions to resolve such conflict in a manner that does not compromise the objectives of such codes.</text> </paragraph><paragraph id="HB9741236CF4242A8ADE3DDB1BD0B936F"><enum>(3)</enum><header>State legislative adoption</header><text>In a State in which the relevant building energy code is adopted legislatively, the deadline in paragraph (1) shall not be earlier than 1 year after the first day that the legislature meets following establishment of a national energy efficiency building code.</text> </paragraph><paragraph id="H139CBCCAA8244218A563934F179363FD"><enum>(4)</enum><header>Notice of intent to enforce</header><text>A State or locality that enforces building codes may assume responsibility for enforcing the national energy efficiency building code by notifying the Secretary to that effect not later than three months after the date established under paragraph (1).</text> </paragraph><paragraph id="H05D8C5D522AA46A5A81285A23472C16F"><enum>(5)</enum><header>Violations</header><text>Violations of this section shall be defined as follows:</text> <subparagraph id="HB3135DF4B10748769E6589602B7E4DCE"><enum>(A)</enum><text>If the building is subject to the requirements of a State energy efficiency building code with respect to which a certification has been accepted by the Secretary under subsection (c)(2)(B) or a local energy efficiency building code with respect to which a certification has been accepted by the Secretary pursuant to subsection (e)(5), or the requirements of the national energy efficiency building code in a State where the State or locality has notified the Secretary of its intent to enforce the provisions of the national energy efficiency building code, a violation shall be determined pursuant to the relevant provisions of State or local law.</text> </subparagraph><subparagraph id="HD5D82D04BCB54472AD2F81ABD4340F89"><enum>(B)</enum><text>If the building is subject to the requirements of a national energy efficiency building code made applicable under paragraph (1) of this subsection, except as provided in subparagraph (A), a violation shall be defined by the Secretary pursuant to subsection (g).</text> </subparagraph></paragraph></subsection><subsection id="HC164ACDFCC384E54AAAA598CD2B1ADC9"><enum>(e)</enum><header>State enforcement of energy efficiency building codes</header> <paragraph id="HA30C7D6A63AA4D1C8C28F317A3471CFA"><enum>(1)</enum><header>In general</header><text>Each State, or where applicable under State law each local government, shall implement and enforce applicable State or local codes with respect to which a certification was accepted by the Secretary under subsection (c)(2)(B) or paragraph (5) of this subsection, or the national energy efficiency building codes, as provided in this subsection.</text> </paragraph><paragraph id="HF192765B0A9B47C19B1436C2816B9771"><enum>(2)</enum><header>State certification</header><text>Not later than 2 years after the date of a certification under subsection (c)(1) or the application of a national energy efficiency building code under subsection (d)(1), each State shall certify that it has—</text> <subparagraph id="H3EE921116DC549C3A47C8F77AC4BA490"><enum>(A)</enum><text>achieved compliance with—</text> <clause id="H6443BF794DD44C808439EB19DAB116CC"><enum>(i)</enum><text>State codes, or, as provided under State law, local codes, with respect to which a certification was accepted by the Secretary under subsection (c)(2)(B); or</text> </clause><clause id="HF3820E72D61E4F7999D808ED8C1BCEFF"><enum>(ii)</enum><text>the national energy efficiency building code, as applicable; or</text> </clause></subparagraph><subparagraph id="HCF263DBA82D84728AD7A43B6BD456DCB"><enum>(B)</enum><text>for any certification submitted within 7 years after the date of enactment of the American Clean Energy and Security Act of 2009, made significant progress toward achieving such compliance.</text> </subparagraph></paragraph><paragraph id="H69B47BB6F5B0481EB10DDC85C5DB7F82"><enum>(3)</enum><header>Achieving compliance</header><text>A State shall be considered to achieve compliance with a code described in paragraph (2)(A) if at least 90 percent of new and substantially renovated building space in that State in the preceding year upon inspection meets the requirements of the code. A certification under paragraph (2) shall include documentation of the rate of compliance based on—</text> <subparagraph id="HFB34532AE3184D52973E22F20364557B"><enum>(A)</enum><text>independent inspections of a random sample of the new and substantially renovated buildings covered by the code in the preceding year; or</text> </subparagraph><subparagraph id="H1D818A9E6FA74045B2F159062F99C66C"><enum>(B)</enum><text>an alternative method that yields an accurate measure of compliance as determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="HD649FE712CA44EB9BB74AD6234725F16"><enum>(4)</enum><header>Significant progress</header><text>A State shall be considered to have made significant progress toward achieving compliance with a code described in paragraph (2)(A) if—</text> <subparagraph id="H6FE0BD36034C47278F8CBA176A211E15"><enum>(A)</enum><text>the State has developed a plan, including for hiring enforcement staff, providing training, providing manuals and checklists, and instituting enforcement programs, designed to achieve full compliance within 5 years after the date of the adoption of the code;</text> </subparagraph><subparagraph id="H83641C81AFBB42279A4DD6FA03B906A8"><enum>(B)</enum><text>the State is taking significant, timely, and measurable action to implement that plan;</text> </subparagraph><subparagraph id="H302C44AAEE0D4671A31039A3E77ADCA1"><enum>(C)</enum><text>the State has not reduced its expenditures for code enforcement; and</text> </subparagraph><subparagraph id="HDCCDB12ABDB34DE0B3171520074BFD3D"><enum>(D)</enum><text>at least 50 percent of new and substantially renovated building space in the State in the preceding year upon inspection meets the requirements of the code.</text> </subparagraph></paragraph><paragraph id="HA233676C8FEE4BFDA9F865429C3D61E3"><enum>(5)</enum><header>Secretary’s determination</header><text>Not later than 90 days after a State certification under paragraph (2), the Secretary shall determine whether the State has demonstrated that it has complied with the requirements of this subsection, including accurate measurement of compliance, or that it has made significant progress toward compliance. If such determination is positive, the Secretary shall accept the certification. If the determination is negative, the Secretary shall identify the areas of deficiency.</text> </paragraph><paragraph id="HA139EFA9F00D4EA882FBD04D84CB42CD"><enum>(6)</enum><header>Out of compliance</header> <subparagraph id="H4F321A1A5A654B6CB01DA4983B786638"><enum>(A)</enum><header>In general</header><text>Any State for which the Secretary has not accepted a certification under paragraph (5) by the dates specified in paragraph (2) is out of compliance with this section.</text> </subparagraph><subparagraph id="HEE7AD6D3D9B24BEDA653670E7086C014"><enum>(B)</enum><header>Local compliance</header><text>In any State that is out of compliance with this section as provided in subparagraph (A), a local government may be in compliance with this section by meeting all certification requirements of this subsection.</text> </subparagraph><subparagraph id="HB49E46952AFB4F2E9E0D58DEE6AC3464"><enum>(C)</enum><header>Noncompliance</header><text>Any State that is not in compliance with this section, as provided in subparagraph (A), shall, until the State regains such compliance, be ineligible to receive—</text> <clause id="HAAC4FC0E65154ED9994CA61A44DA5EBE"><enum>(i)</enum><text>emission allowances pursuant to subsection (h)(1);</text> </clause><clause id="HBC1FFE6F6F9D4014A4B46C1071F6E166"><enum>(ii)</enum><text>Federal funding in excess of that State’s share (calculated according to the allocation formula in section 363 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6323">42 U.S.C. 6323</external-xref>)) of $125,000,000 each year; and</text> </clause><clause id="HC8C00FDFD5E6431BB2F06FFF51E6DE24"><enum>(iii)</enum><text>for—</text> <subclause id="H14809118EF9A48BC912AEF992359E706"><enum>(I)</enum><text>the first year for which the State is out of compliance, 25 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009;</text> </subclause><subclause id="H864E569C5F5F46FA80CD7EBF0078AE13"><enum>(II)</enum><text>the second year for which the State is out of compliance, 50 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009;</text> </subclause><subclause id="HFC9605364FBD47BDB8250B93BA46F297"><enum>(III)</enum><text>the third year for which the State is out of compliance, 75 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009; and</text> </subclause><subclause id="H8E45BC670EBD4CBFAD57DBA35EF0717F"><enum>(IV)</enum><text>the fourth and subsequent years for which the State is out of compliance, 100 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009.</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="H3EF7355442CE453F95B4844F024FC20E"><enum>(f)</enum><header>Federal enforcement and training</header><text>Where a State fails and local governments in that State also fail to enforce the applicable State or national energy efficiency building codes, the Secretary shall enforce such codes, as follows:</text> <paragraph id="HC83C6074400B4443AEC37BBF25ABE36C"><enum>(1)</enum><text>The Secretary shall establish, by rule, within 2 years after the date of enactment of the American Clean Energy and Security Act of 2009, an energy efficiency building code enforcement capability.</text> </paragraph><paragraph id="H70E7B3882468445886B4168E0E076C23"><enum>(2)</enum><text>Such enforcement capability shall be designed to achieve 90 percent compliance with such code in any State within 1 year after the date of the Secretary’s determination that such State is out of compliance with this section.</text> </paragraph><paragraph id="HACFBCAAC138440609D6D51C762E89458"><enum>(3)</enum><text>The Secretary may set and collect reasonable inspection fees to cover the costs of inspections required for such enforcement. Revenue from fees collected shall be available to the Secretary to carry out the requirements of this section upon appropriation.</text> </paragraph><paragraph id="HEA79415C388241E98F8746931A4643F7"><enum>(4)</enum><text>In any jurisdiction to which this subsection applies, the Secretary shall coordinate enforcement of the national energy efficiency building code with State and local code enforcement of other building codes.</text> </paragraph><paragraph id="H89EFA6632AAF41CAAD2BC247CB1EA3AF"><enum>(5)</enum><text>In any jurisdiction to which this subsection applies, the Secretary shall enhance compliance by conducting training and education of builders and other professionals in the jurisdiction concerning the national energy efficiency building code.</text> </paragraph><paragraph id="H21FFB978078247899B4D83BF0CD26315"><enum>(6)</enum><text>The Secretary shall coordinate with professional organizations representing code officials, architects, engineers, builders, and other experts to develop training curricula concerning the national energy efficiency building code.</text> </paragraph><paragraph id="H7C0BB1427C2F4F26AB421AD5CA021C70"><enum>(7)</enum><text>If the Secretary enforces such codes under this subsection, the Secretary may, as appropriate, redefine violations of such codes.</text> </paragraph></subsection><subsection id="H08790E56BAFC4F9D906445BD7F532F0D"><enum>(g)</enum><header>Enforcement procedures</header><text>The Secretary shall propose and, not later than 3 years after the date of enactment of the American Clean Energy and Security Act of 2009, shall define by rule violations of the energy efficiency building codes to be enforced by the Secretary pursuant to this section, and the penalties that shall apply to violators, in any jurisdiction in which the national energy efficiency building code has been made applicable under subsection (d)(1). To the extent that the Secretary determines that the authority to adopt and impose such violations and penalties by rule requires further statutory authority, the Secretary shall report such determination to Congress as soon as such determination is made, but not later than 1 year after the enactment of the American Clean Energy and Security Act of 2009.</text> </subsection><subsection id="HCE87267646224F43BADED00E27B9694D"><enum>(h)</enum><header>Federal support</header> <paragraph id="HF04E0A3ED1144BFBBD02A07B1EDF9C1A"><enum>(1)</enum><header>Allowance allocation for state compliance</header><text>For each vintage year from 2012 through 2050, the Administrator shall distribute allowances allocated pursuant to section 782(g)(2) of the Clean Air Act to the SEED Account for each State. Such allowances shall be distributed according to a formula established by the Secretary as follows:</text> <subparagraph id="H8075DF84D91C4DB5B6AE3A6488B66AFD"><enum>(A)</enum><text>One-fifth in an equal amount to each of the 50 States and United States territories.</text> </subparagraph><subparagraph id="H406E0AB1FE92431385E748410700338A"><enum>(B)</enum><text>Two-fifths as a function of the relative energy use in all buildings in each State in the most recent year for which data is available.</text> </subparagraph><subparagraph id="H03EC8098B12A4C0689A49BE0A4D4BD1B"><enum>(C)</enum><text>Two-fifths based on the number of building construction starts recorded in each State, the number of new building permits applied for in each State, or other relevant available data indicating building activity in each State, in the judgment of the Secretary, for the year prior to the year of the distribution.</text> </subparagraph></paragraph><paragraph id="HD59016A8102541B3BC61195ECD15DDC6"><enum>(2)</enum><header>Allowance allocation to local governments</header><text>In the instance that the Secretary certifies that one or more local governments are in compliance with this section pursuant to subsection (e)(6)(B), the Administrator shall provide to each such local government the portion of the emission allowances that would have been provided to that State as a function of the population of that locality as a proportion of the population of that State as a whole.</text> </paragraph><paragraph id="HF7998EF02B994E0AA48C5EA5D8B72DC3"><enum>(3)</enum><header>Unallocated allowances</header><text>To the extent that allowances are not provided to State or local governments for lack of certification in any year, those allowances shall be added to the amount provided to those States and local governments that are certified as eligible in that year.</text> </paragraph><paragraph id="H4FCE5112576D4291BFA93EB5DD21580C"><enum>(4)</enum><header>Use of allowances</header><text display-inline="yes-display-inline">Each State or each local government shall use such emission allowances as it receives pursuant to this section exclusively for the purposes of this section, including covering a reasonable portion of the costs of the development, adoption, implementation, and enforcement of a State or local energy efficiency building code that meets the national building code energy efficiency targets, or the national energy efficiency building code. In a State where local governments provide substantially all building code enforcement, a minimum of 50 percent of the allowance value received pursuant to this section shall be distributed to local governments as a function of the relative populations of such localities. In a State where local and State governments share building code enforcement duties, the State and local shares of allowance value required for enforcement shall be allocated in proportion to the number of building inspections performed by each level of government, and the share for local governments shall be distributed as a function of the relative populations of such localities. States shall further ensure that the allowance value made available pursuant to section 782 of the Clean Air Act and section 132 of the American Clean Energy and Security Act of 2009 is provided to the applicable State or local governmental entities as necessary to adopt and implement energy efficiency building codes, provide training for inspectors, ensure compliance, and provide such other functions as necessary. Actions taken by local authorities pursuant to this section shall constitute an acceptable use of funds authorized pursuant to the Energy Efficiency and Conservation Block Grant program under section 544 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17154">42 U.S.C. 17154</external-xref>).</text> </paragraph></subsection><subsection id="HAAE3C6DAF11145DB870CD6C27C6DB7C8"><enum>(i)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Energy $25,000,000, and such additional sums as may be necessary to provide enforcement of a national energy efficiency building code, for each of fiscal years 2010 through 2020, and such sums thereafter as may be necessary to support the purposes of this section.</text> </subsection><subsection id="H9D87B659E5BB43678CA3583F8A0AC1DF"><enum>(j)</enum><header>Annual reports by secretary</header><text>The Secretary shall annually submit to Congress, and publish in the Federal Register, a report on—</text> <paragraph id="HA78B60BA302F47338041D7EC50EC3774"><enum>(1)</enum><text>the status of national energy efficiency building codes;</text> </paragraph><paragraph id="H6EC00E77F2004FB18D106E3951530158"><enum>(2)</enum><text>the status of energy efficiency building code adoption and compliance in the States;</text> </paragraph><paragraph id="H70106C8329304B8B9D5E3993916B6234"><enum>(3)</enum><text>the implementation of this section;</text> </paragraph><paragraph id="H41422960D90C4357BFEBC708E2A37572"><enum>(4)</enum><text>the status of Federal enforcement of building codes, including coordination with State and local enforcement, and the extent and resolution of any conflicts between the national energy efficiency building code and other residential and commercial building codes in force in the same jurisdictions; and</text> </paragraph><paragraph id="H8130951428934ACA88D9CC5599AC0C8F"><enum>(5)</enum><text>impacts of past action under this section, and potential impacts of further action, on lifetime energy use by buildings, including resulting energy and cost savings.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H9CCB9ADA7CFE4296BD35F063639475E1"><enum>202.</enum><header>Building retrofit program</header> <subsection id="H8DFCD9AA1FDF4B1AA28A8CDB81B4E907"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H281C86C7DCF04F19B75A53DAEFF21D0B"><enum>(1)</enum><header>Assisted housing</header><text>The term <quote>assisted housing</quote> means those properties receiving project-based assistance pursuant to section 202 of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q</external-xref>), section 811 of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8013">42 U.S.C. 8013</external-xref>), section 8 of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref>), or similar programs.</text> </paragraph><paragraph id="HF32487C412EB419E8D320060483EFE07"><enum>(2)</enum><header>Nonresidential building</header><text>The term <quote>nonresidential building</quote> means a building with a primary use or purpose other than residential housing, including any building used for commercial offices, schools, academic and other public and private institutions, nonprofit organizations including faith-based organizations, hospitals, hotels, and other nonresidential purposes. Such buildings shall include mixed-use properties used for both residential and nonresidential purposes in which more than half of building floor space is nonresidential.</text> </paragraph><paragraph id="H3B07983721B04809968B94E56FEE152D"><enum>(3)</enum><header>Performance-based building retrofit program</header><text>The term <quote>performance-based building retrofit program</quote> means a program that determines building energy efficiency success based on actual measured savings after a retrofit is complete, as evidenced by energy invoices or evaluation protocols.</text> </paragraph><paragraph id="H28A5A7D23C444029B9BE207A7DD57F4B"><enum>(4)</enum><header>Prescriptive building retrofit program</header><text>The term <quote>prescriptive building retrofit program</quote> means a program that projects building retrofit energy efficiency success based on the known effectiveness of measures prescribed to be included in a retrofit.</text> </paragraph><paragraph id="H26051CF1F9174E7BB4F48AC2C114D617"><enum>(5)</enum><header>Public housing</header><text>The term <quote>public housing</quote> means properties receiving assistance under section 9 of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437g">42 U.S.C. 1437g</external-xref>).</text> </paragraph><paragraph id="H410FA0E4552D433DB675B8EA60E03A20"><enum>(6)</enum><header>Recommissioning; retrocommissioning</header><text>The terms <quote>recommissioning</quote> and <quote>retrocommissioning</quote> have the meaning given those terms in section 543(f)(1) of the National Energy Conservation Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253(f)(1)</external-xref>).</text> </paragraph><paragraph id="HE86B487AC7604B799924B55501CA348B"><enum>(7)</enum><header>Residential building</header><text>The term <quote>residential building</quote> means a building whose primary use is residential. Such buildings shall include single-family homes (both attached and detached), owner-occupied units in larger buildings with their own dedicated space-conditioning systems, apartment buildings, multi-unit condominium buildings, public housing, assisted housing, and buildings used for both residential and nonresidential purposes in which more than half of building floor space is residential.</text> </paragraph><paragraph id="HEDA0C0D174324BB8B730088F82B4D1BA"><enum>(8)</enum><header>State energy program</header><text>The term <quote>State Energy Program</quote> means the program under part D of title III of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6321">42 U.S.C. 6321 et seq.</external-xref>).</text> </paragraph></subsection><subsection id="H72137589AC6D480DAE29E64456D31999"><enum>(b)</enum><header>Establishment</header><text>The Administrator shall develop and implement, in consultation with the Secretary of Energy, standards for a national energy and environmental building retrofit policy for single-family and multifamily residences. The Administrator shall develop and implement, in consultation with the Secretary of Energy and the Director of Commercial High-Performance Green Buildings, standards for a national energy and environmental building retrofit policy for nonresidential buildings. The programs to implement the residential and nonresidential policies based on the standards developed under this section shall together be known as the Retrofit for Energy and Environmental Performance (REEP) program.</text> </subsection><subsection id="H46ECC0EADB9D430FB643B8AE3742867C"><enum>(c)</enum><header>Purpose</header><text>The purpose of the REEP program is to facilitate the retrofitting of existing buildings across the United States to achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes.</text> </subsection><subsection id="H07056E2D631B4721A17BE4BB1AD9348C"><enum>(d)</enum><header>Federal administration</header> <paragraph id="H9CF84DD031704FC78820C99FA6FDAE7F"><enum>(1)</enum><header>Existing programs</header><text>In creating and operating the REEP program—</text> <subparagraph id="H5D9C7ABFCAE34DED975AEFFE55D37D7F"><enum>(A)</enum><text>the Administrator shall make appropriate use of existing programs, including the Energy Star program and in particular the Environmental Protection Agency Energy Star for Buildings program; and</text> </subparagraph><subparagraph id="H2ACD1852EDA5400687F39344D246FEC5"><enum>(B)</enum><text>the Secretary of Energy shall make appropriate use of existing programs, including delegating authority to the Director of Commercial High-Performance Green Buildings appointed under section 421 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17081">42 U.S.C. 17081</external-xref>), who shall designate and provide funding to support a high-performance green building partnership consortium pursuant to subsection (f) of such section to support efforts under this section.</text> </subparagraph></paragraph><paragraph id="H033EF5C5674A4094AB5855EB4532D43B"><enum>(2)</enum><header>Consultation and coordination</header><text display-inline="yes-display-inline">The Administrator and the Secretary of Energy shall consult with and coordinate with the Secretary of Housing and Urban Development in carrying out the REEP program with regard to retrofitting of public housing and assisted housing. As a result of such consultation, the Administrator shall establish standards to ensure that retrofits of public housing and assisted housing funded pursuant to this section are cost-effective, including opportunities to address the potential co-performance of repair and replacement needs that may be supported with other forms of Federal assistance. Owners of public housing or assisted housing receiving funding through the REEP program shall agree to continue to provide affordable housing consistent with the provisions of the authorizing legislation governing each program for an additional period commensurate with the funding received, as determined in accordance with guidelines established by the Secretary of Housing and Urban Development.</text> </paragraph><paragraph id="HDA21DBD7F0884AC7ABF456309A8FF742"><enum>(3)</enum><header>Assistance</header><text>The Administrator and the Secretary of Energy shall provide consultation and assistance to State and local agencies for the establishment of revolving loan funds, loan guarantees, or other forms of financial assistance under this section.</text> </paragraph></subsection><subsection id="HA4681A4D0A1F477DADF878B689083BA7"><enum>(e)</enum><header>State and local administration</header> <paragraph id="H51DB21DE081E42BD83B1A4A65DD51BC3"><enum>(1)</enum><header>Designation and delegation</header><text>A State may designate one or more agencies or entities, including those regulated by the State, to carry out the purposes of this section, but shall designate one entity or individual as the principal point of contact for the Administrator regarding the REEP Program. The designated State agency, agencies, or entities may delegate performance of appropriate elements of the REEP program, upon their request and subject to State law, to counties, municipalities, appropriate public agencies, and other divisions of local government, as well as to entities regulated by the State. In making any such designation or delegation, a State shall give priority to entities that administer existing comprehensive retrofit programs, including those under the supervision of State utility regulators. States shall maintain responsibility for meeting the standards and requirements of the REEP program. In any State that elects not to administer the REEP program, a unit of local government may propose to do so within its jurisdiction, and if the Administrator finds that such local government is capable of administering the program, the Administrator may provide allowances to that local government, prorated according to the population of the local jurisdiction relative to the population of the State, for purposes of the REEP program.</text> </paragraph><paragraph id="HB3CDD053330D46E385630D7C9C2CEC81"><enum>(2)</enum><header>Employment</header><text>States and local government entities may administer a REEP program in a manner that authorizes public or regulated investor-owned utilities, building auditors and inspectors, contractors, nonprofit organizations, for-profit companies, and other entities to perform audits and retrofit services under this section. A State may provide incentives for retrofits without direct participation by the State or its agents, so long as the resulting savings are measured and verified. A State or local administrator of a REEP program shall seek to ensure that sufficient qualified entities are available to support retrofit activities so that building owners have a competitive choice among qualified auditors, raters, contractors, and providers of services related to retrofits. Nothing in this section is intended to deny the right of a building owner to choose the specific providers of retrofit services to engage for a retrofit project in that owner’s building.</text> </paragraph><paragraph id="H84709B1AF3BC442F98A4D53CC80AA982"><enum>(3)</enum><header>Equal incentives for equal improvement</header><text>In general, the States should strive to offer the same levels of incentives for retrofits that meet the same efficiency improvement goals, regardless of whether the State, its agency or entity, or the building owner has conducted the retrofit achieving the improvement, provided the improvement is measured and verified.</text> </paragraph></subsection><subsection id="HBB389C89E4FE40E9B6320C191326906B"><enum>(f)</enum><header>Elements of reep program</header><text>The Administrator, in consultation with the Secretary of Energy, shall establish goals, guidelines, practices, and standards for accomplishing the purpose stated in subsection (c), and shall annually review and, as appropriate, revise such goals, guidelines, practices, and standards. The program under this section shall include the following:</text> <paragraph id="H69DA3C01F51641FCB5357467545DC747"><enum>(1)</enum><text>Residential Energy Services Network (RESNET) or Building Performance Institute (BPI) analyst certification of residential building energy and environment auditors, inspectors, and raters, or an equivalent certification system as determined by the Administrator.</text> </paragraph><paragraph id="H0DE68523323A4007A6910687D43BB35D"><enum>(2)</enum><text>BPI certification or licensing by States of residential building energy and environmental retrofit contractors, or an equivalent certification or licensing system as determined by the Administrator.</text> </paragraph><paragraph id="HBAC874062A6A4D969549EFD8507E4DDA"><enum>(3)</enum><text>Provision of BPI, RESNET, or other appropriate information on equipment and procedures, as determined by the Administrator, that contractors can use to test the energy and environmental efficiency of buildings effectively (such as infrared photography and pressurized testing, and tests for water use and indoor air quality).</text> </paragraph><paragraph id="H9CF212B3B57845BD993E061DFE283075"><enum>(4)</enum><text>Provision of clear and effective materials to describe the testing and retrofit processes for typical buildings.</text> </paragraph><paragraph id="H5A6EF6C0A1A9411688D2F3E425132BC9"><enum>(5)</enum><text>Guidelines for offering and managing prescriptive building retrofit programs and performance-based building retrofit programs for residential and nonresidential buildings.</text> </paragraph><paragraph id="H15C8F51E26EB497A8F52D4BD63F80803"><enum>(6)</enum><text>Guidelines for applying recommissioning and retrocommissioning principles to improve a building’s operations and maintenance procedures.</text> </paragraph><paragraph id="H2B3B48A34A9A47A3B1F01617C062C82E"><enum>(7)</enum><text>A requirement that building retrofits conducted pursuant to a REEP program utilize, especially in all air-conditioned buildings, roofing materials with high solar energy reflectance, unless inappropriate due to green roof management, solar energy production, or for other reasons identified by the Administrator, in order to reduce energy consumption within the building, increase the albedo of the building’s roof, and decrease the heat island effect in the area of the building, without reduction of otherwise applicable ceiling insulation standards.</text> </paragraph><paragraph id="HDFFD80F8FF9A48EBBDE8279F5A68F327"><enum>(8)</enum><text>Determination of energy savings in a performance-based building retrofit program through—</text> <subparagraph id="H60A13ABA38A24068AF573403FF8747F7"><enum>(A)</enum><text>for residential buildings, comparison of before and after retrofit scores on the Home Energy Rating System (HERS) Index, where the final score is produced by an objective third party;</text> </subparagraph><subparagraph id="HB03C09AD871842AC883CAA8C60D285B1"><enum>(B)</enum><text>for nonresidential buildings, Environmental Protection Agency Portfolio Manager benchmarks; or</text> </subparagraph><subparagraph id="HB1CE04CBCC674903A32E3F5954E37F6F"><enum>(C)</enum><text>for either residential or nonresidential buildings, use of an Administrator-approved simulation program by a contractor with the appropriate certification, subject to appropriate software standards and verification of at least 15 percent of all work done, or such other percentage as the Administrator may determine.</text> </subparagraph></paragraph><paragraph id="H554E3A680A4F43A28571146EB7015FF6"><enum>(9)</enum><text>Guidelines for utilizing the Energy Star Portfolio Manager, the Home Energy Rating System (HERS) rating system, Home Performance with Energy Star program approvals, and any other tools associated with the retrofit program.</text> </paragraph><paragraph id="HDCD2BBBDB37742CEBC80B1F471B18EE3"><enum>(10)</enum><text>Requirements and guidelines for post-retrofit inspection and confirmation of work and energy savings.</text> </paragraph><paragraph id="H5C04571A3A8B461A9CADD9AB89A67916"><enum>(11)</enum><text>Detailed descriptions of funding options for the benefit of State and local governments, along with model forms, accounting aids, agreements, and guides to best practices.</text> </paragraph><paragraph id="HEA9829BFE7294897A5DAC7BCE0EDFEBF"><enum>(12)</enum><text>Guidance on opportunities for—</text> <subparagraph id="H9EA7FEA11AE6487E88A06A661672EC21"><enum>(A)</enum><text>rating or certifying retrofitted buildings as Energy Star buildings, or as green buildings under a recognized green building rating system;</text> </subparagraph><subparagraph id="HD1F3985A7BA74135971182E851FD8864"><enum>(B)</enum><text>assigning Home Energy Rating System (HERS) or similar ratings; and</text> </subparagraph><subparagraph id="H7A46DCCE05444387A3ECAAEA7898EA29"><enum>(C)</enum><text>completing any applicable building performance labels.</text> </subparagraph></paragraph><paragraph id="HEC15F35E90CF483DBAB44547BA669857"><enum>(13)</enum><text>Sample materials for publicizing the program to building owners, including public service announcements and advertisements.</text> </paragraph><paragraph id="H511BA21E4B764F53AFE8A23207602431"><enum>(14)</enum><text>Processes for tracking the numbers and locations of buildings retrofitted under the REEP program, with information on projected and actual savings of energy and its value over time.</text> </paragraph></subsection><subsection id="H49A77ECB759C482497ABB3C79FF2CC62"><enum>(g)</enum><header>Requirements</header><text>As a condition of receiving allowances for the REEP program pursuant to this Act, a State or qualifying local government shall—</text> <paragraph id="HDA8024E4939A4D1CB4032A1CB814445D"><enum>(1)</enum><text>adopt the standards for training, certification of contractors, certification of buildings, and post-retrofit inspection as developed by the Administrator for residential and nonresidential buildings, respectively, except as necessary to match local conditions, needs, efficiency opportunities, or other local factors, or to accord with State laws or regulations, and then only after the Administrator approves such a variance;</text> </paragraph><paragraph id="H6F549E538DE24EBDA612881638B63A82"><enum>(2)</enum><text>establish fiscal controls and accounting procedures (which conform to generally accepted government accounting principles) sufficient to ensure proper accounting during appropriate accounting periods for payments received and disbursements, and for fund balances; and</text> </paragraph><paragraph id="H41F1CD8225384E3981A9D69FFFFD2659"><enum>(3) </enum><text display-inline="yes-display-inline">agree to make not less than 10 percent of allowance value received pursuant to section 132(c)(2) for dedicated funding of its REEP program available on a preferential basis for retrofit projects proposed for public housing and assisted housing, provided that—</text> <subparagraph id="H7D8C5BA6A5964EC79E3EAE63530C4DC6"><enum>(A)</enum><text>none of such funds shall be used for demolition of such housing;</text> </subparagraph><subparagraph id="HA68BDC593E3F4B558CAB5AD02D1EE1F3"><enum>(B)</enum><text>such retrofits not shall not be used to justify any increase in rents charged to residents of such housing; and</text> </subparagraph><subparagraph id="HE16EAB1C59D449D1AA7F45044EAA7EC9"><enum>(C)</enum><text>owners of such housing shall agree to continue to provide affordable housing consistent with the provisions of the authorizing legislation governing each program for an additional period commensurate with the funding received.</text> </subparagraph></paragraph><continuation-text continuation-text-level="subsection">The Administrator shall conduct or require each State to have such independent financial audits of REEP-related funding as the Administrator considers necessary or appropriate to carry out the purposes of this section.</continuation-text></subsection><subsection id="H43B04EB5066D4801B6C246D2F56BABD5"><enum>(h)</enum><header>Options to support reep program</header><text>The emission allowances provided pursuant to this Act to the States SEED Accounts shall support the implementation through State REEP programs of alternate means of creating incentives for, or reducing financial barriers to, improved energy and environmental performance in buildings, consistent with this section, including—</text> <paragraph id="H4E9D8217CE0B4ADF9C8791CEAD792768"><enum>(1)</enum><text>implementing prescriptive building retrofit programs and performance-based building retrofit programs;</text> </paragraph><paragraph id="HAF8F27D199F548808636B6A7AB8B4F34"><enum>(2)</enum><text>providing credit enhancement, interest rate subsidies, loan guarantees, or other credit support;</text> </paragraph><paragraph id="H0CE436E94F8B499E8F0052EED0EB273B"><enum>(3)</enum><text>providing initial capital for public revolving fund financing of retrofits, with repayments by beneficiary building owners over time through their tax payments, calibrated to create net positive cash flow to the building owner;</text> </paragraph><paragraph id="HF86837FA6DC241758AC77421E92811AF"><enum>(4)</enum><text>providing funds to support utility-operated retrofit programs with repayments over time through utility rates, calibrated to create net positive cash flow to the building owner, and transferable from one building owner to the next with the building’s utility services;</text> </paragraph><paragraph id="HBD0BC0F740AB4469A8A4F744F5890C3E"><enum>(5)</enum><text>providing funds to local government programs to provide REEP services and financial assistance; and</text> </paragraph><paragraph id="H014BF95B9AD94395A937C3E83F967770"><enum>(6)</enum><text>other means proposed by State and local agencies, subject to the approval of the Administrator.</text> </paragraph></subsection><subsection id="HB15E681F73C64039BC007AB0F31F799C"><enum>(i)</enum><header>Support for program</header> <paragraph id="H07632F2112C54365BDF0B49024A1EA1A"><enum>(1)</enum><header>Use of allowances</header><text>Direct Federal support for the REEP program is provided through the emission allowances allocated to the States’ SEED Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement elements of the REEP Program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.</text> </paragraph><paragraph id="HD9D20C86B81E414BBF3181C7688ED380"><enum>(2)</enum><header>Initial award limits</header><text>Except as provided in paragraph (3), State and local REEP programs may make per-building direct expenditures for retrofit improvements, or their equivalent in indirect or other forms of financial support, from funds derived from the sale of allowances received directly from the Administrator in amounts not to exceed the following amounts per unit:</text> <subparagraph id="H488A970E00BE4EBE8190EF68967437D1"><enum>(A)</enum><header>Residential building program</header> <clause id="H6645130069604F46809993842208F29B"><enum>(i)</enum><header>Awards</header><text>For residential buildings—</text> <subclause id="H7BD72CAFC92F41968876DC4EDB1932B6"><enum>(I)</enum><text>support for a free or low-cost detailed building energy audit that prescribes measures sufficient to achieve at least a 20 percent reduction in energy use, by providing an incentive equal to the documented cost of such audit, but not more than $200, in addition to any earned by achieving a 20 percent or greater efficiency improvement;</text> </subclause><subclause id="HD9B15BA57A674BB3B970691A609B0511"><enum>(II)</enum><text>a total of $1,000 for a combination of measures, prescribed in an audit conducted under subclause (I), designed to reduce energy consumption by more than 10 percent, and $2,000 for a combination of measures prescribed in such an audit, designed to reduce energy consumption by more than 20 percent;</text> </subclause><subclause id="HFB8011D09E2E489C8FF89EFAF248DFEF"><enum>(III)</enum><text>$3,000 for demonstrated savings of 20 percent, pursuant to a performance-based building retrofit program; and</text> </subclause><subclause id="H1FF8A0D439854BD6ADA8E16946BDCAAA"><enum>(IV)</enum><text>$1,000 for each additional 5 percentage points of energy savings achieved beyond savings for which funding is provided under subclause (II) or (III).</text> </subclause><continuation-text continuation-text-level="clause">Funding shall not be provided under clauses (II) and (III) for the same energy savings.</continuation-text></clause><clause id="HD733DA8BDD634A16BAC9288D1D572898"><enum>(ii)</enum><header>Maximum percentage</header><text>Awards under clause (i) shall not exceed 50 percent of retrofit costs for each building. For buildings with multiple residential units, awards under clause (i) shall not be greater than 50 percent of the total cost of retrofitting the building, prorated among individual residential units on the basis of relative costs of the retrofit. In the case of public housing and assisted housing, the 50 percent contribution matching the contribution from REEP program funds may come from any other source, including other Federal funds.</text> </clause><clause id="HCE320D29221F496FBAFE62FA40A89E93"><enum>(iii)</enum><header>Additional awards</header><text>Additional awards may be provided for purposes of increasing energy efficiency, for buildings achieving at least 20 percent energy savings using funding provided under clause (i), in the form of grants of not more than $600 for measures projected or measured (using an appropriate method approved by the Administrator) to achieve at least 35 percent potable water savings through equipment or systems with an estimated service life of not less than 7 years, and not more than an additional $20 may be provided for each additional one percent of such savings, up to a maximum total grant of $1,200.</text> </clause></subparagraph><subparagraph id="H314B3C80C9AD40AFB1E7B6AE3A0D2523"><enum>(B)</enum><header>Nonresidential building program</header> <clause id="HBC606611C2A541769CCCC760BFC8D6BB"><enum>(i)</enum><header>Awards</header><text>For nonresidential buildings—</text> <subclause id="H515E98A33F314793ACD503927B0400CD"><enum>(I)</enum><text>support for a free or low-cost detailed building energy audit that prescribes, as part of a energy-reducing measures sufficient to achieve at least a 20 percent reduction in energy use, by providing an incentive equal to the documented cost of such audit, but not more than $500, in addition to any award earned by achieving a 20 percent or greater efficiency improvement;</text> </subclause><subclause id="HA11448082246412B93977F0430506E16"><enum>(II)</enum><text>$0.15 per square foot of retrofit area for demonstrated energy use reductions from 20 percent to 30 percent;</text> </subclause><subclause id="H2C8ADEA1335D49B6B244847F14CD9C15"><enum>(III)</enum><text>$0.75 per square foot for demonstrated energy use reductions from 30 percent to 40 percent;</text> </subclause><subclause id="HE01A1E0D9B8E430C91C18F4B76B05ACA"><enum>(IV)</enum><text>$1.60 per square foot for demonstrated energy use reductions from 40 percent to 50 percent; and</text> </subclause><subclause id="H1A099B854C894268B4E5904DB7DA1E58"><enum>(V)</enum><text>$2.50 per square foot for demonstrated energy use reductions exceeding 50 percent.</text> </subclause></clause><clause id="HA1E9275983C8450386A32B02EAED2473"><enum>(ii)</enum><header>Maximum percentage</header><text>Amounts provided under subclauses (II) through (V) of clause (i) combined shall not exceed 50 percent of the total retrofit cost of a building. In nonresidential buildings with multiple units, such awards shall be prorated among individual units on the basis of relative costs of the retrofit.</text> </clause><clause id="H968BBBE53F0044D38000A241FB3E72BD"><enum>(iii)</enum><header>Additional awards</header><text>Additional awards may be provided, for buildings achieving at least 20 percent energy savings using funding provided under clause (i), as follows:</text> <subclause id="H3E933F4C6F5D4B31A3ED38DE8536F578"><enum>(I)</enum><header>Water</header><text>For purposes of increasing energy efficiency, grants may be made for whole building potable water use reduction (using an appropriate method approved by the Administrator) for up to 50 percent of the total retrofit cost, including amounts up to—</text> <item id="HC0A9AA59BBF941EC891222B60456E640"><enum>(aa)</enum><text>$24.00 per thousand gallons per year of potable water savings of 40 percent or more;</text> </item><item id="HD0472FE3CE9644B49EEE73EA51B84658"><enum>(bb)</enum><text>$27.00 per thousand gallons per year of potable water savings of 50 percent or more; and</text> </item><item id="H721A88ADDCAF427F9E477AA0890C22C5"><enum>(cc)</enum><text>$30.00 per thousand gallons per year of potable water savings of 60 percent or more.</text> </item></subclause><subclause id="H76973C1BF3344F62BAA57CCBBB7600D3"><enum>(II)</enum><header>Environmental improvements</header><text>Additional awards of up to $1,000 may be granted for the inclusion of other environmental attributes that the Administrator, in consultation with the Secretary, identifies as contributing to energy efficiency. Such attributes may include, but are not limited to waste diversion and the use of environmentally preferable materials (including salvaged, renewable, or recycled materials, and materials with no or low-VOC content). The Administrator may recommend that States develop such standards as are necessary to account for local or regional conditions that may affect the feasibility or availability of identified resources and attributes.</text> </subclause></clause><clause id="H381FA337804E4472B49EA4E46E63E103"><enum>(iv)</enum><header>Indoor air quality minimum</header><text>Nonresidential buildings receiving incentives under this section must satisfy at a minimum the most recent version of ASHRAE Standard 62.1 for ventilation, or the equivalent as determined by the Administrator. A State may issue a waiver from this requirement to a building project on a showing that such compliance is infeasible due to the physical constraints of the building’s existing ventilation system, or such other limitations as may be specified by the Administrator.</text> </clause></subparagraph><subparagraph display-inline="no-display-inline" id="HC517654DB6544E10B08FBF71CBCB1CC5"><enum>(C)</enum><header>Disaster Damaged Buildings</header><text display-inline="yes-display-inline">Any source of funds, including Federal funds provided through the Robert T. Stafford Disaster Relief and Emergency Assistance Act, shall qualify as the building owner’s 50 percent contribution, in order to match the contribution of REEP funds, so long as the REEP funds are only used to improve the energy efficiency of the buildings being reconstructed. In addition, the appropriate Federal agencies providing assistance to building owners through the Robert T. Stafford Disaster Relief and Emergency Assistance Act shall make information available, following a disaster, to building owners rebuilding disaster damaged buildings with assistance from the Act, that REEP funds may be used for energy efficiency improvements.</text> </subparagraph><subparagraph id="H4446F418985047D19B771EE44849251E"><enum>(D)</enum><header>Historic buildings</header><text>Notwithstanding subparagraphs (A) and (B), a building in or eligible for the National Register of Historic Places shall be eligible for awards under this paragraph in amounts up to 120 percent of the amounts set forth in subparagraphs (A) and (B).</text> </subparagraph><subparagraph id="H90D7507989964C3FAA0FEC02802E712F"><enum>(E)</enum><header>Supplemental support</header><text>State and local governments may supplement the per-building expenditures under this paragraph with funding from other sources.</text> </subparagraph></paragraph><paragraph id="H77A1621DB4B84B849F7734FF3BB99754"><enum>(3)</enum><header>Adjustment</header><text>The Administrator may adjust the specific dollar limits funded by the sale of allowances pursuant to paragraph (2) in years subsequent to the second year after the date of enactment of this Act, and every 2 years thereafter, as the Administrator determines necessary to achieve optimum cost-effectiveness and to maximize incentives to achieve energy efficiency within the total building award amounts provided in that paragraph, and shall publish and hold constant such revised limits for at least 2 years.</text> </paragraph></subsection><subsection id="HEFAA3A94D0204B6B8CD79A9A6B47964B"><enum>(j)</enum><header>Report to congress</header><text>The Administrator shall conduct an annual assessment of the achievements of the REEP program in each State, shall prepare an annual report of such achievements and any recommendations for program modifications, and shall provide such report to Congress at the end of each fiscal year during which funding or other resources were made available to the States for the REEP Program.</text> </subsection><subsection id="HD53275C665E14433B4C8D76039EA8B2F"><enum>(k)</enum><header>Other sources of federal support</header> <paragraph id="H8B678715009F46EEB55D7623694E9AC7"><enum>(1)</enum><header>Additional state energy program funds</header><text>Any Federal funding provided to a State Energy Program that is not required to be expended for a different federally designated purpose may be used to support a REEP program.</text> </paragraph><paragraph id="H05BCB61E952D479683B079E0D17C42B8"><enum>(2)</enum><header>Program administration</header><text>State Energy Offices or designated State agencies may expend up to 10 percent of available allowance value provided under this section for program administration.</text> </paragraph><paragraph id="HE3841B4D97F246E6934BF60D378692E6"><enum>(3)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated for the purposes of this section, for each of fiscal years 2010, 2011, 2012, and 2013—</text> <subparagraph id="H1E21D871FF7E44DE880A293A938383BD"><enum>(A)</enum><text>$50,000,000 to the Administrator for program administration costs; and</text> </subparagraph><subparagraph id="HD17B51B185234A47B5554EA31F31F9AF"><enum>(B)</enum><text>$20,000,000 to the Secretary of Energy for program administration costs.</text> </subparagraph></paragraph></subsection></section><section display-inline="no-display-inline" id="H772A3C898C324C648F6FF13146F76076" section-type="subsequent-section"><enum>203.</enum><header>Energy efficient manufactured homes</header> <subsection id="HB41F34AC696B462D84D67A1765E7642C"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H76747994D8C2412EBEB59D18760D6C93"><enum>(1)</enum><header>Manufactured Home</header><text display-inline="yes-display-inline">The term <term>manufactured home</term> has the meaning given such term in section 603 of the National Manufactured Housing Construction and Safety Standards Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5402">42 U.S.C. 5402</external-xref>).</text> </paragraph><paragraph id="H33F64FBFB8AF42399CADF3D01E434D99"><enum>(2)</enum><header>Energy Star qualified manufactured home</header><text display-inline="yes-display-inline">The term <term>Energy Star qualified manufactured home</term> means a manufactured home that has been designed, produced, and installed in accordance with Energy Star's guidelines by an Energy Star certified plant.</text> </paragraph></subsection><subsection id="H98CF8AD5642B483380617A87F12FDDB2"><enum>(b)</enum><header>Purpose</header><text display-inline="yes-display-inline">The purpose of this section is to assist low-income households residing in manufactured homes constructed prior to 1976 to save energy and energy expenditures by providing support toward the purchase of new Energy Star qualified manufactured homes.</text> </subsection><subsection id="HDC1704EA6F6549B081D5C3C4D63D1E4D"><enum>(c)</enum><header>State implementation of program</header> <paragraph id="H2A63ACA430C14AE893DE8B047A8D3D53"><enum>(1)</enum><header>Manufactured home replacement program</header><text>Any State may provide to the owner of a manufactured home constructed prior to 1976 a rebate to use toward the purchase of a new Energy Star qualified manufactured home pursuant to this section.</text> </paragraph><paragraph id="HFEA67641AAAB4F87B6DC90B6E93378D6"><enum>(2)</enum><header>Use of allowances</header><text>Direct Federal support for the program established in this section is provided through the emission allowances allocated to the States’ SEED Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.</text> </paragraph><paragraph id="H503D3E1673084D3DB15C9E1AEF426EA7"><enum>(3)</enum><header>Rebates</header> <subparagraph id="HDB4F8127ED2F4FF594323896E74EB740"><enum>(A)</enum><header>Primary Residence Requirement</header><text display-inline="yes-display-inline">A rebate described under paragraph (1) may only be made to an owner of a manufactured home constructed prior to 1976 that is used on a year-round basis as a primary residence.</text> </subparagraph><subparagraph id="H0ECD7B91DEAD4CC3A3BD18021E2A7D63"><enum>(B)</enum><header>Dismantling and replacement</header><text display-inline="yes-display-inline">A rebate described under paragraph (1) may be made only if the manufactured home constructed prior to 1976 will be—</text> <clause id="H6446A27CE1024F2C8CF8936E3495F4B0"><enum>(i)</enum><text>rendered unusable for human habitation (including appropriate recycling); and</text> </clause><clause id="H416B16992E6E44BF9DE95065430CA3CD"><enum>(ii)</enum><text>replaced, in the same general location, as determined by the applicable State agency, with an Energy Star qualified manufactured home.</text> </clause></subparagraph><subparagraph id="H2AD3FE7ABDF14E6AA02CA07070F9149B"><enum>(C)</enum><header>Single rebate</header><text display-inline="yes-display-inline">A rebate described under paragraph (1) may not be provided to any owner of a manufactured home constructed prior to 1976 that was or is a member of a household for which any other member of the household was provided a rebate pursuant to this section.</text> </subparagraph><subparagraph id="H138A370A2365470D8F7893E0887D2F74"><enum>(D)</enum><header>Eligible households</header><text display-inline="yes-display-inline">To be eligible to receive a rebate described under paragraph (1), an owner of a manufactured home constructed prior to 1976 shall demonstrate to the applicable State agency that the total income of all members the owner’s household does not exceed 200 percent of the Federal poverty level for income in the applicable area.</text> </subparagraph><subparagraph id="H8D4236537597428FA0FD129F5D2117E6"><enum>(E)</enum><header>Advance availability</header><text>A rebate may be provided under this section in a manner to facilitate the purchase of a new Energy Star qualified manufactured home.</text> </subparagraph></paragraph><paragraph id="HD91DE8C5F15648C2A4CD8480C68C0159"><enum>(4)</enum><header>Rebate limitation</header><text>Rebates provided by States under this section shall not exceed $7,500 per manufactured home from any value derived from the use of emission allowances provided to the State pursuant to section 132.</text> </paragraph><paragraph id="H1E4697FAD312422CB4D17844BE0C41AA"><enum>(5)</enum><header>Use of State funds</header><text>A State providing rebates under this section may supplement the amount of such rebates under paragraph (4) by any additional amount is from State funds and other sources, including private donations or grants from charitable organizations.</text> </paragraph><paragraph commented="no" id="H762643AB1986435A83ABA995FBE07673"><enum>(6)</enum><header>Coordination with similar programs</header> <subparagraph id="H8C9AAE28F83F4671B6ACEB16A475228E"><enum>(A)</enum><header>State programs</header><text>A State conducting an existing program that has the purpose of replacing manufactured homes constructed prior to 1976 with Energy Star qualified manufactured homes, may use allowance value provided under section 782 of the Clean Air Act to support such a program, provided such funding does not exceed the rebate limitation amount under paragraph (4).</text> </subparagraph><subparagraph id="H1F25ED3919464F3A8560D63758BF8A5F"><enum>(B)</enum><header>Federal programs</header><text>The Secretary of Energy shall coordinate with and seek to achieve the purpose of this section through similar Federal programs including—</text> <clause commented="no" id="HC54EBEB3726D44EB910924EB9160ADC0"><enum>(i)</enum><text>the Weatherization Assistance Program under part A of title IV of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6861">42 U.S.C. 6861 et seq.</external-xref>); and</text> </clause><clause commented="no" id="HB7470AD38D82484CA3E2CB0A2DCDD3E3"><enum>(ii)</enum><text>the program under part D of title III of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6321">42 U.S.C. 6321 et seq.</external-xref>).</text> </clause></subparagraph><subparagraph id="HBBBEDF65CE78479684D10B215C9B565E"><enum>(C)</enum><header>Coordination with other State agencies</header><text>A State agency using allowance value to administer the program under this section may coordinate its efforts, and share funds for administration, with other State agencies involved in low-income housing programs.</text> </subparagraph></paragraph><paragraph id="HE1A2B5BC306D47C1B2532F8B3457AC0A"><enum>(7)</enum><header>Administrative expenses</header><text>A State using allowance value under this section may expend not more than 10 percent of such value for administrative expenses related to this program.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H864E1CCCDC2E4922A80443A6C452A4A8" section-type="subsequent-section"><enum>204.</enum><header>Building energy performance labeling program</header> <subsection id="HB05333248F1F4F539E3786ED42D4964C"><enum>(a)</enum><header>Establishment</header> <paragraph id="HF26C07EE49DF47ED85B6FCD962346626"><enum>(1)</enum><header>Purpose</header><text>The Administrator shall establish a building energy performance labeling program with broad applicability to the residential and commercial markets to enable and encourage knowledge about building energy performance by owners and occupants and to inform efforts to reduce energy consumption nationwide.</text> </paragraph><paragraph id="HAF7D6FF5145E40DDB11F06D646A37B52"><enum>(2)</enum><header>Components</header><text>In developing such program, the Administrator shall—</text> <subparagraph id="H8814062EE8784C6C998A824164CC974B"><enum>(A)</enum><text display-inline="yes-display-inline">consider existing programs, such as Environmental Protection Agency’s Energy Star program, the Home Energy Rating System (HERS) Index, and programs at the Department of Energy;</text> </subparagraph><subparagraph id="H4F75F2404EFD4E67BB20180ADF73F425"><enum>(B)</enum><text>support the development of model performance labels for residential and commercial buildings; and</text> </subparagraph><subparagraph id="H973C73063CEE413782C319E63E16E57B"><enum>(C)</enum><text>utilize incentives and other means to spur use of energy performance labeling of public and private sector buildings nationwide.</text> </subparagraph></paragraph></subsection><subsection id="HB4D97E915876448A8B15EB707CF0096A"><enum>(b)</enum><header>Data assessment for building energy performance</header> <paragraph id="H8E3C147163744F8CB3E6EF6FEC8F5008"><enum>(1)</enum><header>Initial report</header><text>Not later than 90 days after the date of enactment of this Act, the Administrator shall provide to Congress, as well as to the Secretary of Energy and the Office of Management and Budget, a report identifying—</text> <subparagraph id="H8498B09051B949C6B8EF2C4EF1443A0E"><enum>(A)</enum><text>all principal building types for which statistically significant energy performance data exists to serve as the basis of measurement protocols and labeling requirements for achieved building energy performance; and</text> </subparagraph><subparagraph id="H460E1C20B55B417F820B8A11AE854C99"><enum>(B)</enum><text>those building types for which additional data are required to enable the development of such protocols and requirements.</text> </subparagraph></paragraph><paragraph id="H8083E787154340CCA127B62B43B64767"><enum>(2)</enum><header>Additional reports</header><text>Additional updated reports shall be provided under this subsection as often as The Administrator considers practicable, but not less than every 2 years.</text> </paragraph></subsection><subsection id="HC59B6185A0134DAF8D4CE0B12CC6ED63"><enum>(c)</enum><header>Building data acquisition</header> <paragraph id="H6988701FE28843CCA3CC3419DF433B44"><enum>(1)</enum><header>Resource requirements</header><text display-inline="yes-display-inline">For all principal building types identified under subsection (b), the Secretary of Energy, not later than 90 days after a report by the Administrator under subsection (b), shall provide to Congress, the Administrator, and the Office of Management and Budget a statement of additional resources needed, if any, to fully develop the relevant data, as well as the anticipated timeline for data development.</text> </paragraph><paragraph id="H6A0CE44C8F7F4E948290BCA9B9B7A897"><enum>(2)</enum><header>Consultation</header><text>The Secretary of Energy shall consult with the Administrator concerning the Administrator’s ability to use data series for these additional building types to support the achieved performance component in the labeling program.</text> </paragraph><paragraph id="H128F08ACD54A4F6D80ECF7A6110ADE92"><enum>(3)</enum><header>Improvements to building energy consumption databases</header> <subparagraph id="H2EA943BA8FF74CDA9A27F3F2402EC4A0"><enum>(A)</enum><header>Commercial database</header><text>The Secretary of Energy shall support improvements to the Commercial Buildings Energy Consumption Survey (CBECS) as authorized by section 205(k) of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7135">42 U.S.C. 7135(k)</external-xref>)—</text> <clause id="H048CCCC02FB1445290D887A79E99FDB3"><enum>(i)</enum><text>to enable complete and robust data for the actual energy performance of principal building types currently covered by survey;</text> </clause><clause id="HF7BAECF65E1E4AB6A957A31E6A690845"><enum>(ii)</enum><text>to cover additional building types as identified by the Administrator under subsection (b)(1)(B), to enable the development of achieved performance measurement protocols are developed for at least 90 percent of all major commercial building types within 5 years after the date of enactment of this Act; and</text> </clause><clause id="H85B75C2F3BB84EF4BC00A1DE371BE25B"><enum>(iii)</enum><text>to include third-party audits of random data samplings to ensure the quality and accuracy of survey information.</text> </clause></subparagraph><subparagraph id="H7D6BB8AD909B41E7ADAF94E7C2F6016E"><enum>(B)</enum><header>Residential databases</header><text>The Administrator, in consultation with the Energy Information Administration and the Secretary of Energy, shall support improvements to the Residential Energy Consumption Survey (RECS) as authorized by section 205(k) of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7135">42 U.S.C. 7135(k)</external-xref>), or such other residential energy performance databases as the Administrator considers appropriate, to aid the development of achieved performance measurement protocols for residential building energy use for at least 90 percent of the residential market within 5 years after the date of enactment of this Act.</text> </subparagraph><subparagraph id="H689A0976B03040E1BEDE61B9475266D7"><enum>(C)</enum><header>Consultation</header><text>The Secretary of Energy and the Administrator shall consult with public, private, and nonprofit sector representatives from the building industry and real estate industry to assist in the evaluation and improvement of building energy performance databases and labeling programs.</text> </subparagraph></paragraph></subsection><subsection id="H2ABA78D9F1FA4C518FA91E6570DE13E1"><enum>(d)</enum><header>Identification of measurement protocols for achieved performance</header> <paragraph id="H0EE9CCD9AD344B8686ED58F51C30BA9B"><enum>(1)</enum><header>Proposed protocols and requirements</header><text>At the earliest practicable date, but not later than 1 year after identifying a building type under subsection (b)(1)(A), the Administrator shall propose a measurement protocol for that building type and a requirement detailing how to use that protocol in completing applicable commercial or residential performance labels created pursuant to this section.</text> </paragraph><paragraph id="H2EE388960F484005923729DF9B85B39D"><enum>(2)</enum><header>Final rule</header><text>After providing for notice and comment, the Administrator shall publish a final rule containing a measurement protocol and the corresponding requirements for applying that protocol. Such a rule—</text> <subparagraph id="HE5AE5BC0E1B3458896B7CC2AEAE1AB63"><enum>(A)</enum><text>shall define the minimum period for measurement of energy use by buildings of that type and other details for determining achieved performance, to include leased buildings or parts thereof;</text> </subparagraph><subparagraph id="HC0A8C169F0AD44C6A56A35A81748DAB2"><enum>(B)</enum><text>shall identify necessary data collection and record retention requirements; and</text> </subparagraph><subparagraph id="H53C4B1333A514B4292D444A591A7D063"><enum>(C)</enum><text>may specify transition rules and exemptions for classes of buildings within the building type.</text> </subparagraph></paragraph></subsection><subsection id="H10FC7501EA1A4099AE5CF60A5373A911"><enum>(e)</enum><header>Procedures for evaluating designed performance</header><text>The Administrator shall develop protocols for evaluating the designed performance of individual building types. The Administrator may conduct such feasibility studies and demonstration projects as are necessary to evaluate the sufficiency of proposed protocols for designed performance.</text> </subsection><subsection id="HC3400F382F4A4570AB86DC5D8AE6AB32"><enum>(f)</enum><header>Creation of building energy performance labeling program</header> <paragraph id="H635717CC74D14C4F90E27BB2BA872968"><enum>(1)</enum><header>Model label</header><text>Not later than 1 year after the date of enactment of this Act, the Administrator shall propose a model building energy label that provides a format—</text> <subparagraph id="H88725FDC73C74A0D94C7553AF2481D34"><enum>(A)</enum><text>to display achieved performance and designed performance data;</text> </subparagraph><subparagraph id="H266DCE86AB6948C8AD74F7B68DBB3D20"><enum>(B)</enum><text>that may be tailored for residential and commercial buildings, and for single-occupancy and multitenanted buildings; and</text> </subparagraph><subparagraph id="H986B2EB72D33435AB8E18DF769055B00"><enum>(C)</enum><text>to display other appropriate elements identified during the development of measurement protocols under subsections (d) and (e).</text> </subparagraph></paragraph><paragraph id="H6C6578FDB994464EB620EFBE6FF5DFF3"><enum>(2)</enum><header>Inclusions</header><text>Nothing in this section shall require the inclusion on such a label of designed performance data where impracticable or not cost effective, or to preclude the display of both achieved performance and designed performance data for a particular building where both such measures are available, practicable, and cost effective.</text> </paragraph><paragraph id="H921FB075F4014DA4BE51CBFD40127C20"><enum>(3)</enum><header>Existing programs</header><text>In developing the model label, the Administrator shall consider existing programs, including—</text> <subparagraph id="H319013B9FB4745EC900DE39640173107"><enum>(A)</enum><text>the Environmental Protection Agency’s Energy Star Portfolio Manager program and the California HERS II Program Custom Approach for the achieved performance component of the label;</text> </subparagraph><subparagraph id="H7BC8874986B0431EA66160D879F64110"><enum>(B)</enum><text>the Home Energy Rating System (HERS) Index system for the designed performance component of the label; and</text> </subparagraph><subparagraph id="HE730137EBEC74A34818F4203124C24CC"><enum>(C)</enum><text>other Federal and State programs, including the Department of Energy’s related programs on building technologies and those of the Federal Energy Management Program.</text> </subparagraph></paragraph><paragraph id="HC19D4EA6D36D4E4D9928A1A36A482CC8"><enum>(4)</enum><header>Final rule</header><text>After providing for notice and comment, the Administrator shall publish a final rule containing the label applicable to covered building types.</text> </paragraph></subsection><subsection id="HA956D2355B9A47B6BC9ADF07AE23AEBC"><enum>(g)</enum><header>Demonstration projects for labeling program</header> <paragraph id="HA4D49B437F1A45E0AFE5B0220BD0BD9D"><enum>(1)</enum><header>In general</header><text>The Administrator shall conduct building energy performance labeling demonstration projects for different building types—</text> <subparagraph id="H295CE1F8EC4243CB9BFA7A52D517C92C"><enum>(A)</enum><text>to ensure the sufficiency of the current Commercial Buildings Energy Consumption Survey and other data to serve as the basis for new measurement protocols for the achieved performance component of the building energy performance labeling program;</text> </subparagraph><subparagraph id="H978DA737AA2B43BF98F10BBC3DB36DCE"><enum>(B)</enum><text>to inform the development of measurement protocols for building types not currently covered by the Commercial Buildings Energy Consumption Survey; and</text> </subparagraph><subparagraph id="HB6D6F85B1E2E4399964B81AC3D7C9F84"><enum>(C)</enum><text>to identify any additional information that needs to be developed to ensure effective use of the model label.</text> </subparagraph></paragraph><paragraph id="H875F4E84D7B340E383AC547A30DFE0A5"><enum>(2)</enum><header>Participation</header><text>Such demonstration projects shall include participation of—</text> <subparagraph id="HAD297506FADC49AB94162E2AFA575AA9"><enum>(A)</enum><text>buildings from diverse geographical and climate regions;</text> </subparagraph><subparagraph id="HD7ECEB599FF94CB994CD8CB6E8F3A12D"><enum>(B)</enum><text>buildings in both urban and rural areas;</text> </subparagraph><subparagraph id="H131E1AFE19D94C65BD189F21E78C01F4"><enum>(C)</enum><text>single-family residential buildings;</text> </subparagraph><subparagraph id="H39A2AE94DD0343EAA54B395B4008A73E"><enum>(D)</enum><text>multihousing residential buildings with more than 50 units, including at least one project that provides affordable housing to individuals of diverse incomes;</text> </subparagraph><subparagraph id="H30321D6B54FA4153BCBE92F060B1633D"><enum>(E)</enum><text>single-occupant commercial buildings larger than 30,000 square feet;</text> </subparagraph><subparagraph id="H7C4F3E97C69C4F4BA3DC71A0D667B465"><enum>(F)</enum><text>multitenanted commercial buildings larger than 50,000 square feet; and</text> </subparagraph><subparagraph id="H92B5B1595A8D4844A67996F39943F9FB"><enum>(G)</enum><text>buildings from both the public and private sectors.</text> </subparagraph></paragraph><paragraph id="H5E91237A89B44B5785C89248649A082F"><enum>(3)</enum><header>Priority</header><text>Priority in the selection of demonstration projects shall be given to projects that facilitate large-scale implementation of the labeling program for samples of buildings across neighborhoods, geographic regions, cities, or States.</text> </paragraph><paragraph id="HB804849461D24D459DC9FC1C16C01063"><enum>(4)</enum><header>Findings</header><text>The Administrator shall report any findings from demonstration projects under this subsection, including an identification of any areas of needed data improvement, to the Department of Energy’s Energy Information Administration and Building Technologies Program.</text> </paragraph><paragraph id="HFF920D0D59DC47EA98B748212D5E18DB"><enum>(5)</enum><header>Coordination</header><text>The Administrator and the Secretary of Energy shall coordinate demonstration projects undertaken pursuant to this subsection with those undertaken as part of the Zero-Net-Energy Commercial Buildings Initiative adopted under section 422 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17082">42 U.S.C. 17082</external-xref>).</text> </paragraph></subsection><subsection id="HA3A67082D8C148DE9EBEF2B1FE1BADC2"><enum>(h)</enum><header>Implementation of labeling program</header> <paragraph id="H1B5052D552454E86882C0690625C1C8D"><enum>(1)</enum><header>In general</header><text>The Administrator, in consultation with the Secretary of Energy, shall work with all State Energy Offices established pursuant to part D of title III of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6321">42 U.S.C. 6321 et seq.</external-xref>) or other State authorities as necessary for the purpose of implementing the labeling program established under this section for commercial and residential buildings.</text> </paragraph><paragraph id="H7F8228BA0D9740788B8637DDB44FC3AF"><enum>(2)</enum><header>Outreach to local authorities</header><text>The Administrator shall, acting in consultation and coordination with the respective States, encourage use of the labeling program by counties and other localities to broaden access to information about building energy use, for example, through disclosure of building label contents in tax, title, and other records those localities maintain. For this purpose, the Administrator shall develop an electronic version of the label and information that can be readily transmitted and read in widely-available computer programs but is protected from unauthorized manipulation.</text> </paragraph><paragraph id="HFF7E54172EC54905B85C48F3B1388A50"><enum>(3)</enum><header>Means of implementation</header><text display-inline="yes-display-inline">In adopting the model labeling program established under this section, a State shall seek to ensure that labeled information be made accessible to the public in a manner so that owners, lenders, tenants, occupants, or other relevant parties can utilize it. Such accessibility may be accomplished through—</text> <subparagraph id="H9359740B07DA44268CC3BFFF8A833A9F"><enum>(A)</enum><text>preparation, and public disclosure of the label through filing with tax and title records at the time of—</text> <clause id="H2A35761B0C14492886C7D3E0BD85E0CC"><enum>(i)</enum><text>a building audit conducted with support from Federal or State funds;</text> </clause><clause id="H1BBD69E8A7654F588CFD7F4F33B2FAC0"><enum>(ii)</enum><text>a building energy-efficiency retrofit conducted in response to such an audit;</text> </clause><clause id="H5F02BB03128F4CAB915A742E534B1BED"><enum>(iii)</enum><text>a final inspection of major renovations or additions made to a building in accordance with a building permit issued by a local government entity;</text> </clause><clause id="H55946599C8584F6AAAEAE9FAA7B27295"><enum>(iv)</enum><text>a sale that is recorded for title and tax purposes consistent with paragraph (8);</text> </clause><clause id="H4105E896C2BD4994A28D780939DE01E1"><enum>(v)</enum><text>a new lien recorded on the property for more than a set percentage of the assessed value of the property, if that lien reflects public financial assistance for energy-related improvements to that building; or</text> </clause><clause id="H81DF16E3530E4200B1E2A92DCB5F7CD4"><enum>(vi)</enum><text>a change in ownership or operation of the building for purposes of utility billing; or</text> </clause></subparagraph><subparagraph id="H170A39169F594151BC300FFA8D7141FD"><enum>(B)</enum><text>other appropriate means.</text> </subparagraph></paragraph><paragraph id="H8C087F13BA904F329EF4E32AD66179EA"><enum>(4)</enum><header>State implementation of program</header> <subparagraph id="H506A9E0492C34B7FB9BC4AC7FE551478"><enum>(A)</enum><header>Eligibility</header><text display-inline="yes-display-inline">A State may become eligible to utilize allowance value to implement this program by—</text> <clause id="HF731B63C52F04B658795855D5F2ED1B7"><enum>(i)</enum><text>adopting by statute or regulation a requirement that buildings be assessed and labeled, consistent with the labeling requirements of the program established under this section; or</text> </clause><clause display-inline="no-display-inline" id="H8AC0B9A2172E4FC987AFFDD54088E248"><enum>(ii)</enum><text>adopting a plan to implement a model labeling program consistent with this section within 1 year of enactment of this Act, including the establishment of that program within 3 years after the date of enactment of this Act, and demonstrating continuous progress under that plan.</text> </clause></subparagraph><subparagraph id="HC949029B9BA347C1A9F60D0C5AC9D0EE"><enum>(B)</enum><header>Use of allowances</header><text>Direct Federal support for the program established in this section is provided through the emission allowances allocated to the States’ SEED Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.</text> </subparagraph></paragraph><paragraph id="H064DB7E7574946A89F2F6565ECDB58F1"><enum>(5)</enum><header>Guidance</header><text>The Administrator may create or identify model programs and resources to provide guidance to offer to States and localities for creating labeling programs consistent with the model program established under this section.</text> </paragraph><paragraph id="HF321D58BC716426A8176518F0CA7A094"><enum>(6)</enum><header>Progress report</header><text>The Administrator, in consultation with the Secretary of Energy, shall provide a progress report to Congress not later than 3 years after the date of enactment of this Act that—</text> <subparagraph id="HEAA8330E47A14E68BBEF968CB083A801"><enum>(A)</enum><text>evaluates the effectiveness of efforts to advance use of the model labeling program by States and localities;</text> </subparagraph><subparagraph id="H7F64422E02704787A4E1DD70A743B9EF"><enum>(B)</enum><text>recommends any legislative changes necessary to broaden the use of the model labeling program; and</text> </subparagraph><subparagraph id="H9C2FFD3E2ED246B2B6B1F97651D5C646"><enum>(C)</enum><text display-inline="yes-display-inline">identifies any changes to broaden the use of the model labeling program that the Administrator has made or intends to make that do not require additional legislative authority.</text> </subparagraph></paragraph><paragraph id="H6144D5F9B51B4B80A1CB84DF59A17112"><enum>(7)</enum><header>State information</header><text>The Administrator may require States to report to the Administrator information that the Administrator requires to provide the report required under paragraph (6).</text> </paragraph><paragraph id="H581E4453C8524B6FBD4187F91ED67BC3"><enum>(8)</enum><header>Prevention of disruption of sales transactions</header><text>No State shall implement a new labeling program pursuant to this section in a manner that requires the labeling of a building to occur after a contract has been executed for the sale of that building and before the sales transaction is completed.</text> </paragraph></subsection><subsection id="HAEDCA6AFF86444E3A74F24FACDA85FD5"><enum>(i)</enum><header>Implementation of labeling program in Federal buildings</header> <paragraph id="H9F7D81D9640A48108A1E705A86EDC901"><enum>(1)</enum><header>Use of labeling program</header><text>The Secretary of Energy and the Administrator shall use the labeling program established under this section to evaluate energy performance in the facilities of the Department of Energy and the Environmental Protection Agency, respectively, to the extent practicable, and shall encourage and support implementation efforts in other Federal agencies.</text> </paragraph><paragraph id="H67CC30D789A34F54B6F6738D337F8D41"><enum>(2)</enum><header>Annual progress report</header><text>The Secretary of Energy and Administrator shall provide an annual progress report to Congress and the Office of Management and Budget detailing efforts to implement this subsection, as well as any best practices or needed resources identified as a result of such efforts.</text> </paragraph></subsection><subsection id="H8DC6E8B700434C27905FB18F885BB5FF"><enum>(j)</enum><header>Public outreach</header><text>The Secretary of Energy and the Administrator, in consultation with nonprofit and industry stakeholders with specialized expertise, and in conjunction with other energy efficiency public awareness efforts, shall establish a business and consumer education program to increase awareness about the importance of building energy efficiency and to facilitate widespread use of the labeling program established under this section.</text> </subsection><subsection id="H337123792F8D4F7694B832DE8A5CC891"><enum>(k)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H2DFEC29BE80C417A8FC6156035724E58"><enum>(1)</enum><header>Building type</header><text>The term <quote>building type</quote> means a grouping of buildings as identified by their principal building activities, or as grouped by their use, including office buildings, laboratories, libraries, data centers, retail establishments, hotels, warehouses, and educational buildings.</text> </paragraph><paragraph id="H26C4DC4EE1D6421B91E454D1E59E3321"><enum>(2)</enum><header>Measurement protocol</header><text>The term <quote>measurement protocol</quote> means the methodology, prescribed by the Administrator, for defining a benchmark for building energy performance for a specific building type and for measuring that performance against the benchmark.</text> </paragraph><paragraph id="H0996436C13FE4E60ACC0926F5CD6FF45"><enum>(3)</enum><header>Achieved Performance</header><text>The term <quote>achieved performance</quote> means the actual energy consumption of a building as compared to a baseline building of the same type and size, determined by actual consumption data normalized for appropriate variables.</text> </paragraph><paragraph id="H58593742324C4E42935B698A74442054"><enum>(4)</enum><header>Designed performance</header><text>The term <quote>designed performance</quote> means the energy consumption performance a building would achieve if operated consistent with its design intent for building energy use, utilizing a standardized set of operational conditions informed by data collected or confirmed during an energy audit.</text> </paragraph></subsection><subsection id="H774695062762425F8E4C0A568FFAA655"><enum>(l)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated—</text> <paragraph id="HF81C513ADF2B48FC9DD4B1B7CF52E483"><enum>(1)</enum><text>to the Administrator $50,000,000 for implementation of this section for each fiscal year from 2010 through 2020; and</text> </paragraph><paragraph id="H55A8E77D8B6B468DA90350DF8C2D81C6"><enum>(2)</enum><text display-inline="yes-display-inline">to the Secretary of Energy $20,000,000 for implementation of this section for fiscal year 2010 and $10,000,000 for fiscal years 2011 through 2020.</text> </paragraph></subsection><subsection id="H3A40D0FDB40441F8B293B9E795751F5B"><enum>(m)</enum><header>New construction</header><text display-inline="yes-display-inline">This section shall apply only to construction beginning after the date of enactment of this Act.</text> </subsection></section><section id="H5EEF6CBD7653454496597F1548670DAA" section-type="subsequent-section"><enum>205.</enum><header>Tree planting programs</header> <subsection id="H183BB3050A32400BB3AEFC2D3A037E3C"><enum>(a)</enum><header>Findings</header><text>The Congress finds that—</text> <paragraph id="H353443FDCAF848C1AD17C95836F6B689"><enum>(1)</enum><text>the utility sector is the largest single source of greenhouse gas emissions in the United States today, producing approximately one-third of the country’s emissions;</text> </paragraph><paragraph id="H1429B265878741D893683CAA74766F09"><enum>(2)</enum><text>heating and cooling homes accounts for nearly 60 percent of residential electricity usage in the United States;</text> </paragraph><paragraph id="H4F014B7716654093AED4A8F721563A92"><enum>(3)</enum><text>shade trees planted in strategic locations can reduce residential cooling costs by as much as 30 percent;</text> </paragraph><paragraph id="H2F0CA62E2D234B2B894D963ED31E8875"><enum>(4)</enum><text>shade trees have significant clean-air benefits associated with them;</text> </paragraph><paragraph id="H4314B02A191347E68EF494D35E677370"><enum>(5)</enum><text>every 100 healthy large trees removes about 300 pounds of air pollution (including particulate matter and ozone) and about 15 tons of carbon dioxide from the air each year;</text> </paragraph><paragraph id="HF40471DDBCC14D38BA3E585BDAC70319"><enum>(6)</enum><text>tree cover on private property and on newly-developed land has declined since the 1970s, even while emissions from transportation and industry have been rising; and</text> </paragraph><paragraph id="H912595229E7949149979A5BAA6DF7611"><enum>(7)</enum><text>in over a dozen test cities across the United States, increasing urban tree cover has generated between two and five dollars in savings for every dollar invested in such tree planting.</text> </paragraph></subsection><subsection id="H6BE74022283B44FB957269D57EB93679"><enum>(b)</enum><header>Definitions</header><text>As used in this section:</text> <paragraph id="H10D1E8489D324EC797C020DDA0289B2C"><enum>(1)</enum><text>The term <quote>Secretary</quote> refers to the Secretary of Energy.</text> </paragraph><paragraph id="HE19B5A79DE4C42F2B924BD80E6C34C1E"><enum>(2)</enum><text>The term <quote>retail power provider</quote> means any entity authorized under applicable State or Federal law to generate, distribute, or provide retail electricity, natural gas, or fuel oil service.</text> </paragraph><paragraph id="H3B2A5CE2628D4B4E9FE08AF70DC35221"><enum>(3)</enum><text>The term <quote>tree-planting organization</quote> means any nonprofit or not-for-profit group which exists, in whole or in part, to—</text> <subparagraph id="H0220DA1EC71E481BABF1AF55A2B2CF86"><enum>(A)</enum><text>expand urban and residential tree cover;</text> </subparagraph><subparagraph id="HEA64B654FA4946458286677B7FDE977E"><enum>(B)</enum><text>distribute trees for planting;</text> </subparagraph><subparagraph id="H74B5C2B40B734BFD8CDD759CB71A3B40"><enum>(C)</enum><text>increase awareness of the environmental and energy-related benefits of trees;</text> </subparagraph><subparagraph id="HF8BF4D4D23E0473EA8167DE51E40CEBE"><enum>(D)</enum><text>educate the public about proper tree planting, care, and maintenance strategies; or</text> </subparagraph><subparagraph id="H6586469504A34F4E83908FAED34B70E6"><enum>(E)</enum><text>carry out any combination of the foregoing activities.</text> </subparagraph></paragraph><paragraph id="H32D8C433435B4250A51D4BF941C6701C"><enum>(4)</enum><text>The term <quote>tree-siting guidelines</quote> means a comprehensive list of science-based measurements outlining the species and minimum distance required between trees planted pursuant to this section, in addition to the minimum required distance to be maintained between such trees and—</text> <subparagraph id="H842C7F88E9E34567B0BC2CFD98B5B0F0"><enum>(A)</enum><text>building foundations;</text> </subparagraph><subparagraph id="H00A8D4675CD040469CD47E6F53E1EE0F"><enum>(B)</enum><text>air conditioning units;</text> </subparagraph><subparagraph id="H1B120DB7F68B4844B7230BFDA2BC4B22"><enum>(C)</enum><text>driveways and walkways;</text> </subparagraph><subparagraph id="HE1B1B0C29CC24CFF9248A8D77EE040F3"><enum>(D)</enum><text>property fences;</text> </subparagraph><subparagraph id="HC066F1C67FA64B1985E8EA6445956338"><enum>(E)</enum><text>preexisting utility infrastructure;</text> </subparagraph><subparagraph id="H0B77A0CFE9E1476A87F135C7143B8BD6"><enum>(F)</enum><text>septic systems;</text> </subparagraph><subparagraph id="H76C7D1F6516B4325815914577B22C65C"><enum>(G)</enum><text>swimming pools; and</text> </subparagraph><subparagraph id="H72BF33A7D8AA4F068363A077B2973C46"><enum>(H)</enum><text>other infrastructure as deemed appropriate.</text> </subparagraph></paragraph><paragraph id="HDBD69DEE86E8429189375688A1ACFF9C"><enum>(5)</enum><text>The terms <quote>small office</quote>, <quote>small office buildings</quote>, and <quote>small office settings</quote> means nonresidential buildings or structures zoned for business purposes that are 20,000 square feet or less in total area.</text> </paragraph></subsection><subsection id="H8A0ED41009FF4799B9FEC111BA12354C"><enum>(c)</enum><header>Purposes</header><text>The purpose of this section is to establish a grant program to assist retail power providers with the establishment and operation of targeted tree-planting programs in residential and small office settings, for the following purposes:</text> <paragraph id="H033D9F9807F64700931B90F120078476"><enum>(1)</enum><text>Reducing the peak-load demand for electricity from residences and small office buildings during the summer months through direct shading of buildings provided by strategically planted trees.</text> </paragraph><paragraph id="H74A736F20DED48E0999860296CA5B943"><enum>(2)</enum><text>Reducing wintertime demand for energy from residences and small office buildings by blocking cold winds from reaching such structures, which lowers interior temperatures and drives heating demand.</text> </paragraph><paragraph id="H6E700A8F50B64803ADA74C65AAA86271"><enum>(3)</enum><text>Protecting public health by removing harmful pollution from the air.</text> </paragraph><paragraph id="HF1EF194F339244209B1B4C09D4DAFC9F"><enum>(4)</enum><text>Utilizing the natural photosynthetic and transpiration process of trees to lower ambient temperatures and absorb carbon dioxide, thus mitigating the effects of climate change.</text> </paragraph><paragraph id="HD37D04DFC2E547AD89FD5180A4E3EC9D"><enum>(5)</enum><text>Lowering electric bills for residential and small office ratepayers by limiting electricity consumption without reducing benefits.</text> </paragraph><paragraph id="HA050E0E1950B4474948387E24FBED005"><enum>(6)</enum><text>Relieving financial and demand pressure on retail power providers that stems from large peak-load energy demand.</text> </paragraph><paragraph id="HED69EA3910D0453C83E9F3F73E2628B4"><enum>(7)</enum><text>Protecting water quality and public health by reducing stormwater runoff and keeping harmful pollutants from entering waterways.</text> </paragraph><paragraph id="H1D7F9C04B81749C3A6F1420136149BCC"><enum>(8)</enum><text>Ensuring that trees are planted in locations that limit the amount of public money needed to maintain public and electric infrastructure.</text> </paragraph></subsection><subsection id="H8021B1185A844BB28BB763F75B7BEF92"><enum>(d)</enum><header>General authority</header> <paragraph id="H9C3923C325964E84BC6FF8167B4491C6"><enum>(1)</enum><header>Assistance</header><text display-inline="yes-display-inline">The Secretary is authorized to provide financial, technical, and related assistance to retail power providers to assist with the establishment of new, or continued operation of existing, targeted tree-planting programs for residences and small office buildings.</text> </paragraph><paragraph id="H034735176544434CA7BD26D0CDD2D05F"><enum>(2)</enum><header>Public recognition initiative</header><text display-inline="yes-display-inline">In carrying out the authority provided under this section, the Secretary shall also create a national public recognition initiative to encourage participation in tree-planting programs by retail power providers.</text> </paragraph><paragraph id="HA2C774DF600C494A91483F0ECA1C0DF9"><enum>(3)</enum><header>Eligibility</header><text>Only those programs which utilize targeted, strategic tree-siting guidelines to plant trees in relation to building location, sunlight, and prevailing wind direction shall be eligible for assistance under this section.</text> </paragraph><paragraph id="HDE6822549ADF4CF4A2894C177C60455D"><enum>(4)</enum><header>Requirements</header><text>In order to qualify for assistance under this section, a tree-planting program shall meet each of the following requirements:</text> <subparagraph id="H3D02B2AD2D2B4209A947904D52FCDF2E"><enum>(A)</enum><text>The program shall provide free or discounted shade-providing or wind-reducing trees to residential and small office consumers interested in lowering their home energy costs.</text> </subparagraph><subparagraph id="H6E466643C05344BD8C6FE2AE8302F1EC"><enum>(B)</enum><text display-inline="yes-display-inline">The program shall optimize the electricity-consumption reduction benefit of each tree by planting in strategic locations around a given residence or small office.</text> </subparagraph><subparagraph id="H61A3D94BC34740E1933826AA0AD50BD0"><enum>(C)</enum><text display-inline="yes-display-inline">The program shall either—</text> <clause id="H29877E5E712B464FB8E6C0CD60FDCFD1"><enum>(i)</enum><text>provide maximum amounts of shade during summer intervals when residences and small offices are exposed to the most sun intensity; or</text> </clause><clause id="H867D9E67A3254FBBBF4DEBB16B003AE2"><enum>(ii)</enum><text>provide maximum amounts of wind protection during fall and winter intervals when residences and small offices are exposed to the most wind intensity.</text> </clause></subparagraph><subparagraph id="HEB29148D6A1E49809235F8CF69D62B96"><enum>(D)</enum><text display-inline="yes-display-inline">The program shall use the best available science to create tree siting guidelines which dictate where the optimum tree species are best planted in locations that achieve maximum reductions in consumer energy demand while causing the least disruption to public infrastructure, considering overhead and underground facilities.</text> </subparagraph><subparagraph id="H1D737E8931474F5D902969DB0FD3F100"><enum>(E)</enum><text display-inline="yes-display-inline">The program shall receive certification from the Secretary that it is designed to achieve the goals set forth in subparagraphs (A) through (D). In designating criteria for such certification, the Secretary shall collaborate with the United States Forest Service’s Urban and Community Forestry Program to ensure that certification requirements are consistent with such above goals.</text> </subparagraph></paragraph><paragraph id="H1CB10D7EE26544DAA525850734AE7420"><enum>(5)</enum><header>New program funding share</header><text>The Secretary shall ensure that no less than 30 percent of the funds made available under this section are distributed to retail power providers which—</text> <subparagraph id="HAAB253F054834F3B82329C3CB364051F"><enum>(A)</enum><text>have not previously established or operated qualified tree-planting programs; or</text> </subparagraph><subparagraph id="H95F1BF16D70E42B2A597D56B184EEDB6"><enum>(B)</enum><text>are operating qualified tree-planting programs which were established no more than 3 years prior to the date of enactment of this section.</text> </subparagraph></paragraph></subsection><subsection id="H0A09BA5C80C7428CB1AD6589B568DECF"><enum>(e)</enum><header>Agreements between electricity providers and tree-planting organizations</header> <paragraph id="H005569C796664260B1E8D55FF82F0348"><enum>(1)</enum><header>Grant authorization</header><text display-inline="yes-display-inline">In providing assistance under this section, the Secretary is authorized to award grants only to retail power providers that have entered into binding legal agreements with nonprofit tree-planting organizations.</text> </paragraph><paragraph id="H4B590B8BE9B3476C98ADFA799504DD16"><enum>(2)</enum><header>Conditions of agreement</header><text display-inline="yes-display-inline">Those agreements between retail power providers and tree-planting organizations shall set forth conditions under which nonprofit tree-planting organizations shall provide targeted tree-planting programs which may require these organizations to—</text> <subparagraph id="H63E699E9CEA643A192A90668B6776552"><enum>(A)</enum><text>participate in local technical advisory committees responsible for drafting general tree-siting guidelines and choosing the most effective species of trees to plant in given locations;</text> </subparagraph><subparagraph id="H4F96C2872F544E699545B27E8609CE3E"><enum>(B)</enum><text>coordinate volunteer recruitment to assist with the physical act of planting trees in residential locations;</text> </subparagraph><subparagraph id="HBC9140AC4EDF488DBEF40923F44C6986"><enum>(C)</enum><text>undertake public awareness campaigns to educate local residents about the benefits, cost savings, and availability of free shade trees;</text> </subparagraph><subparagraph id="H6784A03AD3934FED91B4E36AF605823E"><enum>(D)</enum><text>establish education and information campaigns to encourage recipients to maintain their shade trees over the long term;</text> </subparagraph><subparagraph id="H874FE89C2263498DA2E2009AB65132F0"><enum>(E)</enum><text>serve as the point of contact for existing and potential residential participants who have questions or concerns regarding the tree-planting program;</text> </subparagraph><subparagraph id="HCF06B2E9B5984B1592FBC641D31F52C6"><enum>(F)</enum><text>require tree recipients to sign agreements committing to voluntary stewardship and care of provided trees;</text> </subparagraph><subparagraph id="H10C310847ED44D4D89532F1E822EA944"><enum>(G)</enum><text>monitor and report on the survival, growth, overall health, and estimated energy savings of provided trees up until the end of their establishment period which shall be no less than 5 years; and</text> </subparagraph><subparagraph id="HA8F1B433A0B84265A043B4BBF639DD50"><enum>(H)</enum><text>ensure that trees planted near existing power lines will not interfere with energized electricity distribution lines when mature, and that no new trees will be planted under or adjacent to high-voltage electric transmission lines without prior consultation with the applicable retail power provider receiving assistance under this section.</text> </subparagraph></paragraph><paragraph id="H5E1FD180C6F84734AF09AD1C391EB5BA"><enum>(3)</enum><header>Lack of nonprofit organization</header><text>If qualified nonprofit or not-for-profit tree planting organizations do not exist or operate within areas served by retail power providers applying for assistance under this section, the requirements of this section shall apply to binding legal agreements entered into by such retail power providers and one of the following entities:</text> <subparagraph id="HE5C2496FB32C4C028B7A2626B2AEBA59"><enum>(A)</enum><text>Local municipal governments with jurisdiction over the urban or suburban forest.</text> </subparagraph><subparagraph id="H661D5836EE114E34A5D6A0931DFE7F23"><enum>(B)</enum><text>The State Forester for the State in which the tree planting program will operate.</text> </subparagraph><subparagraph id="H009E4AD28FE241058170B401C2BD44E0"><enum>(C)</enum><text>The United States Forest Service’s Urban and Community Forestry representative for the State in which the tree-planting program will operate.</text> </subparagraph><subparagraph id="HA25460487CB64A7EBEC4190234BF6E1B"><enum>(D)</enum><text>A landscaping services company that is—</text> <clause id="H95B3C9DD7192465BBFE1A018BDB06F0E"><enum>(i)</enum><text>identified in consultation with a national or State nonprofit or not-for-profit tree-planting organization;</text> </clause><clause id="HDD3CF3E16DC948EF9A011B519C11E589"><enum>(ii)</enum><text>licensed to operate in the State in which the tree-planting program will operate; and</text> </clause><clause id="H39CD8F5574A64172BEBCD91C5CD54940"><enum>(iii)</enum><text>a business as defined by the United States Census Bureau’s 2007 North American Industry Classification System Code 561730.</text> </clause></subparagraph></paragraph></subsection><subsection id="HC75792CBEBBF4DC381D2B3D55078E22F"><enum>(f)</enum><header>Technical advisory committees</header> <paragraph id="H396933918F8B4ED28BB2761F46DC1D25"><enum>(1)</enum><header>Description</header><text>In order to qualify for assistance under this section, the retail power provider shall establish and consult with a local technical advisory committee which shall provide advice and consultation to the program, and may—</text> <subparagraph id="H752B007AF69E478FB8722E4E8E376CEB"><enum>(A)</enum><text>design and adopt an approved plant list that emphasizes the use of hardy, noninvasive tree species and, where geographically appropriate, the use of native, or site-adapted, or low water-use shade trees;</text> </subparagraph><subparagraph id="H4136256836A74068B7892F47F69C5ABD"><enum>(B)</enum><text>design and adopt planting, installation, and maintenance specifications and create a process for inspection and quality control;</text> </subparagraph><subparagraph id="HD005B4772CD641E7B3BE76339D686521"><enum>(C)</enum><text>ensure that tree recipients are educated to care for and maintain their trees over the long term;</text> </subparagraph><subparagraph id="H5E27F77758484A7FBFA42C4ABC0D10CE"><enum>(D)</enum><text>help the public become more engaged and educated in the planting and care of shade trees;</text> </subparagraph><subparagraph id="H6FB54DD3873F42C18AD4D9BD35F3B5BC"><enum>(E)</enum><text>prioritize which sites receive trees, giving preference to locations with the most potential for energy conservation and secondary preference to areas where the average annual income is below the regional median; and</text> </subparagraph><subparagraph id="HDB4960D8501440C182B5E88AABF3B068"><enum>(F)</enum><text>assist with monitoring and collection of data on tree health, tree survival, and energy conservation benefits generated under this section.</text> </subparagraph></paragraph><paragraph id="H36A99F46B2F14A2EB2C3987E01AF20F4"><enum>(2)</enum><header>Compensation</header><text>Individuals serving on local technical advisory committees shall not receive compensation for their service.</text> </paragraph><paragraph id="H69594464A37545A5823BB588B0600B46"><enum>(3)</enum><header>Composition</header><text>Local technical advisory committees shall be composed of representatives from public, private, and nongovernmental agencies with expertise in demand-side energy efficiency management, urban forestry, or arboriculture, and shall be composed of the following:</text> <subparagraph id="H219CE26CA53344979A952215DDE667D9"><enum>(A)</enum><text>Up to 4 persons, but no less than one person, representing the retail power provider receiving assistance under this section.</text> </subparagraph><subparagraph id="HF73085AC1D894DE29005A7F0485BBC3E"><enum>(B)</enum><text>Up to 4 persons, but no less than one person, representing the local tree-planting organization which will partner with the retail power provider to carry out this section.</text> </subparagraph><subparagraph id="H4A940362DE7E43E09DD67D7E60FA2B16"><enum>(C)</enum><text>Up to 3 persons representing local nonprofit conservation or environmental organizations. Preference shall be given to those entities which are organized under <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)(3)</external-xref> of the Internal Revenue Code of 1986, and which have demonstrated expertise engaging the public in energy conservation, energy efficiency, or green building practices or a combination thereof, such that no single organization is represented by more than one individual under this paragraph.</text> </subparagraph><subparagraph id="H5715CE8801BB41EB9CACD7DA8129FA20"><enum>(D)</enum><text>Up to 2 persons representing a local affordable housing agency, affordable housing builder, or community development corporation.</text> </subparagraph><subparagraph id="H395B725935B446CE89FE42BBDB97C409"><enum>(E)</enum><text>Up to 3, but no less than one, persons representing local city or county government for each municipality where a shade tree-planting program will take place; at least one of these representatives shall be the city or county forester, city or county arborist, or functional equivalent.</text> </subparagraph><subparagraph id="H6F3F5FC4C5274EF5B644DAC6DB608275"><enum>(F)</enum><text>Up to one person representing the local government agency responsible for management of roads, sewers, and infrastructure, including but not limited to public works departments, transportation agencies, or equivalents.</text> </subparagraph><subparagraph id="HA3AACA495B86495BAECC2969FDC8053E"><enum>(G)</enum><text>Up to 3 persons representing the nursery and landscaping industry.</text> </subparagraph><subparagraph id="HDE4C3E6495A2404F8B0B1C51B9C3D02B"><enum>(H)</enum><text>Up to 3 persons representing the research community or academia with expertise in natural resources or energy management issues.</text> </subparagraph></paragraph><paragraph id="HFA35A3E5962049368ED4FCA278787F0C"><enum>(4)</enum><header>Chairperson</header><text>Each local technical advisory committee shall elect a chairperson to preside over Committee meetings, act as a liaison to governmental and other outside entities, and direct the general operation of the committee; only committee representatives from paragraph (3)(A) or paragraph (3)(B) of this subsection shall be eligible to act as local technical advisory committee chairpersons.</text> </paragraph><paragraph id="H5D1A3157162646929011100F0C896DD8"><enum>(5)</enum><header>Credentials</header><text>At least one of the members of each local technical advisory committee shall be certified with one or more of the following credentials: International Society of Arboriculture; Certified Arborist, ISA; Certified Arborist Municipal Specialist, ISA; Certified Arborist Utility Specialist, ISA; Board Certified Master Arborist; or Registered Landscape Architect recommended by the American Society of Landscape Architects.</text> </paragraph></subsection><subsection id="H8A9BB4A497334B40ABA15402C39DAFDF"><enum>(g)</enum><header>Cost-share program</header> <paragraph id="HDFA1C5EE171542A79DEFED0A5DA00CC5"><enum>(1)</enum><header>Federal share</header><text display-inline="yes-display-inline">The Federal share of support for projects funded under this section shall not exceed 50 percent of the cost of such project and shall be provided on a matching basis.</text> </paragraph><paragraph id="HD92956F82F104B0DBC8A8767F3C2276A"><enum>(2)</enum><header>Non-Federal share</header><text display-inline="yes-display-inline">The non-Federal share of such costs may be paid or contributed by any governmental or nongovernmental entity other than from funds derived directly or indirectly from an agency or instrumentality of the United States.</text> </paragraph></subsection><subsection id="H723ECD612C3640E1AE28C4DE3B76653B"><enum>(h)</enum><header>Rulemaking</header> <paragraph id="HB01175D930B14C3883A1647EAFBE60BD"><enum>(1)</enum><header>Rulemaking period</header><text display-inline="yes-display-inline">The Secretary shall be authorized to solicit comments and initiate a rulemaking period that shall last no more than 6 months after the date of enactment of this section.</text> </paragraph><paragraph id="H9B02532F964E472E8850FF7218256AA6"><enum>(2)</enum><header>Competitive grant rule</header><text display-inline="yes-display-inline">At the conclusion of the rulemaking period under paragraph (1), the Secretary shall promulgate a rule governing a public, competitive grants process through which retail power providers may apply for Federal support under this section.</text> </paragraph></subsection><subsection id="HA5ED0484FBF54453B40007C2A2C5CF9D"><enum>(i)</enum><header>Nonduplicity</header><text>Nothing in this section shall be construed to supersede, duplicate, cancel, or negate the programs or authorities provided under section 9 of the Cooperative Forestry Assistance Act of 1978 (92 Stat. 369; <external-xref legal-doc="public-law" parsable-cite="pl/95/313">Public Law 95–313</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/16/2105">16 U.S.C. 2105</external-xref>).</text> </subsection><subsection id="HB853D80BB1F147C5994689D3BBE641B4"><enum>(j)</enum><header>Authorization of appropriations</header><text>There are hereby authorized to be appropriated such sums as may be necessary for the implementation of this section.</text> </subsection></section><section id="H78FA805B35874644AE4DAE152B82D439"><enum>206.</enum><header>Energy efficiency for data center buildings</header><text display-inline="no-display-inline">Section 453(c)(1) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17112">42 U.S.C. 17112(c)(1)</external-xref>) is amended by inserting <quote>but not later than 2 years after the date of enactment of this Act</quote> after <quote>described in subsection (b)</quote>.</text> </section><section id="HC376FA21FC9C4CA1B8BEF2F164FB3E65"><enum>207.</enum><header>Community building code administration grants</header> <subsection id="H6029BA85C5114812B0268475B6821897"><enum>(a)</enum><header>Grant program authorized</header> <paragraph id="HA80865D01D7C46E2ADC8E51F7B17D024"><enum>(1)</enum><header>Grant authorization</header><text>The Secretary of Housing and Urban Development shall to the extent amounts are made available for grants under this section provide grants to local building code enforcement departments.</text> </paragraph><paragraph id="H48CA7B69F1294248AB2466094A92F14B"><enum>(2)</enum><header>Competitive awards</header><text>The Secretary shall award grants under paragraph (1) on a competitive basis taking into consideration the following:</text> <subparagraph id="HF2E309EE944F42B48820F91F3FC793CD"><enum>(A)</enum><text>The financial need of each building code enforcement department.</text> </subparagraph><subparagraph id="HFFBD6A693F6F4FCF8BF66521E7E9BB62"><enum>(B)</enum><text>The benefit to the jurisdiction of having an adequately funded building code enforcement department.</text> </subparagraph><subparagraph id="H33EB25375AC748E59DE8D3E93CBF9028"><enum>(C)</enum><text>The demonstrated ability of each building code enforcement department to work cooperatively with other local code enforcement offices, health departments, and local prosecutorial agencies.</text> </subparagraph></paragraph><paragraph id="H198DA44F928D4D7192EF2F49CE5C150B"><enum>(3)</enum><header>Maximum amount</header><text>The maximum amount of any grant awarded under this subsection shall not exceed $1,000,000.</text> </paragraph><paragraph id="HD91A4FCFD84349EF8FB3D95916146DE1"><enum>(4)</enum><header>Coordination</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development shall coordinate with the Secretary of Energy to ensure that any unnecessarily duplicative funding through grants under this section of activities otherwise funded through the Department of Energy is minimized or eliminated.</text> </paragraph></subsection><subsection id="HB7256201DBD347F68248DBDD42C1C064"><enum>(b)</enum><header>Required elements in grant proposals</header><text>In order to be eligible for a grant under subsection (a), a building code enforcement department of a jurisdiction shall submit to the Secretary the following:</text> <paragraph id="HF658DD24FF91417CA16D401AA6D66557"><enum>(1)</enum><text>A demonstration of the jurisdiction’s needs in executing building code enforcement administration.</text> </paragraph><paragraph id="HD182668F37EC41249984841B9C357382"><enum>(2)</enum><text>A plan for the use of any funds received from a grant under this section that addresses the needs discussed in paragraph (1) and that is consistent with the authorized uses established in subsection (c).</text> </paragraph><paragraph id="H01D6D24BC1E34F9F85F49115F71DB337"><enum>(3)</enum><text>A plan for local governmental actions to be taken to establish and sustain local building code enforcement administration functions, without continuing Federal support, at a level at least equivalent to that proposed in the grant application.</text> </paragraph><paragraph id="HB0159434EC9545DE8BB48CC1ABB4F9E0"><enum>(4)</enum><text>A plan to create and maintain a program of public outreach that includes a regularly updated and readily accessible means of public communication, interaction, and reporting regarding the services and work of the building code enforcement department to be supported by the grant.</text> </paragraph><paragraph id="HAA8DACA3FB5D4AA48E93257925A7D3BA"><enum>(5)</enum><text>A plan for ensuring the timely and effective administrative enforcement of building safety and fire prevention violations.</text> </paragraph></subsection><subsection id="HD19CCAE126E549E4B6FCF60D80C672C2"><enum>(c)</enum><header>Use of funds; matching funds</header> <paragraph id="H80E7EF94FF8A4BFA8E94CA75136BA853"><enum>(1)</enum><header>Authorized uses</header><text display-inline="yes-display-inline">Amounts from grants awarded under subsection (a) may be used by the grant recipient to supplement existing State or local funding for administration of building code enforcement, or to supplement allowance value received pursuant to this Act for implementation and enforcement of energy efficiency building codes. Such amounts may be used to increase staffing, provide staff training, increase staff competence and professional qualifications, or support individual certification or departmental accreditation, or for capital expenditures specifically dedicated to the administration of the building code enforcement department.</text> </paragraph><paragraph id="H62BAD6C5D6D34A76BFC8DA2B3477D8B9"><enum>(2)</enum><header>Additional requirement</header><text>Each building code enforcement department receiving a grant under subsection (a) shall empanel a code administration and enforcement team consisting of at least 1 full-time building code enforcement officer, a city planner, and a health planner or similar officer.</text> </paragraph><paragraph id="HA1043D985BA14FA38DB63734DB2A4CB2"><enum>(3)</enum><header>Matching funds required</header> <subparagraph id="HEE5EF042297C4D168B96BF1F447980E6"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">To be eligible to receive a grant under this section, a building code enforcement department shall provide matching, non-Federal funds in the following amount:</text> <clause id="HAD15CC52715D4172AF9738E43656160D"><enum>(i)</enum><text display-inline="yes-display-inline">In the case of a building code enforcement department serving an area with a population of more than 50,000, an amount equal to not less than 50 percent of the total amount of any grant to be awarded under this section.</text> </clause><clause id="H19C495F9069B4A5080A96F2BDC60C35E"><enum>(ii)</enum><text display-inline="yes-display-inline">In the case of a building code enforcement department serving an area with a population of between 20,001 and 50,000, an amount equal to not less than 25 percent of the total amount of any grant to be awarded under this section.</text> </clause><clause id="HEA200FB251354D3CB1C7DA41A3A060EF"><enum>(iii)</enum><text display-inline="yes-display-inline">In the case of a building code enforcement department serving an area with a population of less than 20,000, an amount equal to not less than 12.5 percent of the total amount of any grant to be awarded under this section.</text> </clause></subparagraph><subparagraph id="H7E85E7C6A3CC4E06AF58423B85A0CE36"><enum>(B)</enum><header>Economic distress</header> <clause id="HE6363E331C5046359A1C42DC3C41E9EA"><enum>(i)</enum><header>In general</header><text>The Secretary may waive the matching fund requirements under subparagraph (A), and institute, by regulation, new matching fund requirements based upon the level of economic distress of the jurisdiction in which the local building code enforcement department seeking such grant is located.</text> </clause><clause id="H3D1E7B491CEB4E4D862DCD82F21C1CBB"><enum>(ii)</enum><header>Content of regulations</header><text>Any regulations instituted under clause (i) shall include—</text> <subclause id="HEAECCDA1324D445B8D9309E75311554D"><enum>(I)</enum><text>a method that allows for a comparison of the degree of economic distress among the local jurisdictions of grant applicants, as measured by the differences in the extent of growth lag, the extent of poverty, and the adjusted age of housing in such jurisdiction; and</text> </subclause><subclause id="HE0B9A344C7F642A59C2E4208C0F2A491"><enum>(II)</enum><text>any other factor determined to be relevant by the Secretary in assessing the comparative degree of economic distress among such jurisdictions.</text> </subclause></clause></subparagraph></paragraph><paragraph id="H79E302D279724E7188CB95AF8B875C45"><enum>(4)</enum><header>In-kind contributions</header><text>In determining the non-Federal share required to be provided under paragraph (3), the Secretary shall consider in-kind contributions, not to exceed 50 percent of the amount that the department contributes in non-Federal funds.</text> </paragraph><paragraph id="HEA17BF06761F4D56925754052BE04470"><enum>(5)</enum><header>Waiver of matching requirement</header><text>The Secretary shall waive the matching fund requirements under paragraph (3) for any recipient jurisdiction that has dedicated all building code permitting fees to the conduct of local building code enforcement.</text> </paragraph></subsection><subsection id="HDE883FEAB37E48F9B1950DDB3FCA92B4"><enum>(d)</enum><header>Evaluation and report</header> <paragraph id="HA646A409418241A4B1102160243FE38B"><enum>(1)</enum><header>In general</header><text>Grant recipients under this section shall—</text> <subparagraph id="H0F9FEB7A3AC74901ABC9D01A16FA2697"><enum>(A)</enum><text>be obligated to fully account and report for the use of all grants funds; and</text> </subparagraph><subparagraph id="HC6975794F39A4BA192F8BFF490EDE74E"><enum>(B)</enum><text>provide a report to the Secretary on the effectiveness of the program undertaken by the grantee and any other criteria requested by the Secretary for the purpose of indicating the effectiveness of, and ideas for, refinement of the grant program.</text> </subparagraph></paragraph><paragraph id="H221692BC8DEB4EC3A35BCFCF8E85E018"><enum>(2)</enum><header>Report</header><text>The report required under paragraph (1)(B) shall include a discussion of—</text> <subparagraph id="HCF639BF4ED3A487B8F18A913624AB8C1"><enum>(A)</enum><text>the specific capabilities and functions in local building code enforcement administration that were addressed using funds received under this section;</text> </subparagraph><subparagraph id="H9BF1EDDDBEBF44C88BEA2F592D05FF70"><enum>(B)</enum><text>the lessons learned in carrying out the plans supported by the grant; and</text> </subparagraph><subparagraph id="H330D3CDD6A864EA994CE475C87FF5748"><enum>(C)</enum><text>the manner in which the programs supported by the grant are to be maintained by the grantee.</text> </subparagraph></paragraph><paragraph id="H3E7A8625F59D4170AB5A7118C39C1919"><enum>(3)</enum><header>Content of reports</header><text>The Secretary shall—</text> <subparagraph id="H0B9E4504C5A14A598F8BD3ECA70BB2ED"><enum>(A)</enum><text>require each recipient of a grant under this section to file interim and final reports under paragraph (2) to ensure that grant funds are being used as intended and to measure the effectiveness and benefits of the grant program; and</text> </subparagraph><subparagraph id="HDD50D46F0D4B446A9CE634B155CDC4CF"><enum>(B)</enum><text>develop and maintain a means whereby the public can access such reports, at no cost, via the Internet.</text> </subparagraph></paragraph></subsection><subsection id="H7A38770E9C1A4341A5A908950BCC7F41"><enum>(e)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text> <paragraph id="HE49ABEBEB8C4494C943C7E11CFD425D2"><enum>(1)</enum><header>Building code enforcement</header><text display-inline="yes-display-inline">The term <term>building code enforcement</term> means the enforcement of any code, adopted by a State or local government, that regulates the construction of buildings and facilities to mitigate hazards to life or property. Such term includes building codes, electrical codes, energy codes, fire codes, fuel gas codes, mechanical codes, and plumbing codes.</text> </paragraph><paragraph id="H3B886606D1F44C96A87DB90C26193458"><enum>(2)</enum><header>Building code enforcement department</header><text display-inline="yes-display-inline">The term <term>building code enforcement department</term> means an inspection or enforcement agency of a jurisdiction that is responsible for conducting building code enforcement.</text> </paragraph><paragraph id="HA8AD5758810E41C48AB5BCC62E9912C9"><enum>(3)</enum><header>Jurisdiction</header><text>The term <term>jurisdiction</term> means a city, county, parish, city and county authority, or city and parish authority having local authority to enforce building codes and regulations and to collect fees for building permits.</text> </paragraph><paragraph id="H805158D9542A4097BDF10F22BCA57161"><enum>(4)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Housing and Urban Development.</text> </paragraph></subsection><subsection id="HAEB99452BE9348A3975B29CBF018EF52"><enum>(f)</enum><header>Authorization of appropriations</header> <paragraph id="H639B0F0107C14DC38AB7F51AEEB00DCA"><enum>(1)</enum><header>In general</header><text>There are authorized to be appropriated $20,000,000 for each of fiscal years 2010 through 2014 to the Secretary of Housing and Urban Development to carry out the provisions of this section.</text> </paragraph><paragraph id="HCB5D103ADE434EEABA425308F0A7F609"><enum>(2)</enum><header>Reservation</header><text>From the amount made available under paragraph (1), the Secretary may reserve not more than 5 percent for administrative costs.</text> </paragraph><paragraph id="H2A55C3FB41434BDF878188FF05B70F2F"><enum>(3)</enum><header>Availability</header><text>Any funds appropriated pursuant to paragraph (1) shall remain available until expended.</text> </paragraph></subsection></section><section id="HDC572BF6B87A4A84B12A56C77707F736"><enum>208.</enum><header>Solar energy systems building permit requirements for receipt of community development block grant funds</header><text display-inline="no-display-inline">Section 104 of the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5304">42 U.S.C. 5304</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H47AEA0F30041417398F92E27C73FF44A" style="OLC"> <subsection id="H0369079726C6469EBF671EC9726E3A56"><enum>(n)</enum><header>Requirements for Building Permits Regarding Solar Energy Systems</header> <paragraph id="H13D1AE09FDC544F894C713F217512CA1"><enum>(1)</enum><header>In general</header><text>A grant under section 106 for a fiscal year may be made only if the grantee certifies to the Secretary that—</text> <subparagraph id="HB20D673ACB2347C3876E9F1B32FA52C3"><enum>(A)</enum><text>in the case of a grant under section 106(a) for any Indian tribe or insular area, during such fiscal year the cost of any permit or license, for construction or installation of any solar energy system for any structure, that is required by the tribe or insular area or by any other unit of general local government or other political subdivision of such tribe or insular area, complies with paragraph (2);</text> </subparagraph><subparagraph id="H634A21ABF9E442C681A2BFA0207E04F2"><enum>(B)</enum><text>in the case of a grant under section 106(b) for any metropolitan city or urban county, during such fiscal year the cost of any permit or license, for construction or installation of any solar energy system for any structure, that is required by the metropolitan city or urban county, or by any other political subdivision of such city or county, complies with paragraph (2); and</text> </subparagraph><subparagraph id="H3B75A34720DE4A9884BB9B556FCA2773"><enum>(C)</enum><text>in the case of a grant under section 106(d) for any State, during such fiscal year the cost of any permit or license, for construction or installation of any solar energy system for any structure, that is required by the State, or by any other unit of general local government within any nonentitlement area of such State, or other political subdivision within any nonentitlement area of such State or such a unit of general local government, complies with paragraph (2).</text> </subparagraph></paragraph><paragraph id="HB9C585A4631D4AC7B376D795C71F3A54"><enum>(2)</enum><header>Limitation on cost</header><text>The cost of permit or license for construction or installation of any solar energy system complies with this paragraph only if such cost does not exceed the following amount:</text> <subparagraph id="HE571A85AE9F44A279A4B82F2D65038C1"><enum>(A)</enum><header>Residential structures</header><text>In the case of a structure primarily for residential use, $500.</text> </subparagraph><subparagraph id="H0153DA8C51DA4E35B232CA3E68AB96CF"><enum>(B)</enum><header>Nonresidential structures</header><text>In the case of a structure primarily for nonresidential use, 1.0 percent of the total cost of the installation or construction of the solar energy system, but not in excess of $10,000.</text> </subparagraph></paragraph><paragraph id="HBB10B51BEE8244E1ACDC26C00F4C05CF"><enum>(3)</enum><header>Noncompliance</header><text>If the Secretary determines that a grantee of a grant made under section 106 is not in compliance with a certification under paragraph (1)—</text> <subparagraph id="HA6BF469BAC9546AF90C115A4DEC334EF"><enum>(A)</enum><text>the Secretary shall notify the grantee of such determination; and</text> </subparagraph><subparagraph id="HD365AC2DA6854A1F8D5E927E80406773"><enum>(B)</enum><text>if the grantee has not corrected such noncompliance before the expiration of the 6-month period beginning upon notification under subparagraph (A), such grantee shall not be eligible for 5 percent of any amounts awarded under a grant under section 106 for the first fiscal year that commences after the expiration of such 6-month period.</text> </subparagraph></paragraph><paragraph id="HE1E96DF2CA484EDBAFB408D100BE769C"><enum>(4)</enum><header>Solar energy system</header><text>For purposes of this subsection, the term <quote>solar energy system</quote> means, with respect to a structure, equipment that uses solar energy to generate electricity for, or to heat or cool (or provide hot water for use in), such structure.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H9983F3FB70F244C0A52F355DD351433D"><enum>209.</enum><header>Prohibition of restrictions on residential installation of solar energy system</header> <subsection id="H291202AFE3AD4138A099CA93F8D37411"><enum>(a)</enum><header>Regulations</header><text>Within 180 days after the enactment of this Act, the Secretary of Housing and Urban Development, in consultation with the Secretary of Energy, shall issue regulations—</text> <paragraph id="H2B2966BA560A4B7D817FEAFBF9A18F90"><enum>(1)</enum><text>to prohibit any private covenant, contract provision, lease provision, homeowners’ association rule or bylaw, or similar restriction, that impairs the ability of the owner or lessee of any residential structure designed for occupancy by 1 family to install, construct, maintain, or use a solar energy system on such residential property; and</text> </paragraph><paragraph id="HABBCF02ECAA949F681E3345FE05FBC41"><enum>(2)</enum><text>to require that whenever any such covenant, provision, rule or bylaw, or restriction requires approval for the installation or use of a solar energy system, the application for approval shall be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed.</text> </paragraph></subsection><subsection id="HCD3D933671DF49BEA9619D85382AF7BA"><enum>(b)</enum><header>Contents</header><text>The regulations required under subsection (a) shall provide that—</text> <paragraph id="HCE7918D6F93B470F9616E50E563061EE"><enum>(1)</enum><text>such a covenant, provision, rule or bylaw, or restriction impairs the installation, construction, maintenance, or use of a solar energy system if it—</text> <subparagraph id="HAAAAA5EE858E4E688C3256F514D15ADD"><enum>(A)</enum><text>unreasonably delays or prevents installation, maintenance, or use;</text> </subparagraph><subparagraph id="HDCD08B93714C4427A19F211370D3ACE9"><enum>(B)</enum><text>unreasonably increases the cost of installation, maintenance, or use; or</text> </subparagraph><subparagraph id="H09EE8360B41D4DB2AD9231884DFCDDD9"><enum>(C)</enum><text>precludes use of such a system; and</text> </subparagraph></paragraph><paragraph id="H4DAC183F1A2945A9AF557D9A6A388C22"><enum>(2)</enum><text>any fee or cost imposed on the owner or lessee of such a residential structure by such a covenant, provision, rule or bylaw, or restriction shall be considered unreasonable if—</text> <subparagraph id="HDBB71FE534D944EEAC8261929FABAB9C"><enum>(A)</enum><text>such fee or cost is not reasonable in comparison to the cost of the solar energy system or the value of its use; or</text> </subparagraph><subparagraph id="HF3320F9AB6F041DC8D7A6F65941D5CAF"><enum>(B)</enum><text>treatment of solar energy systems by the covenant, provision, rule or bylaw, or restriction is not reasonable in comparison with treatment of comparable systems by the same covenant, provision, rule or bylaw, or restriction.</text> </subparagraph></paragraph></subsection><subsection id="H458F70B639EB4C72A08A6FFE2DC075BA"><enum>(c)</enum><header>Solar Energy System</header><text>For purposes of this section, the term <quote>solar energy system</quote> means, with respect to a structure, equipment that uses solar energy to generate electricity for, or to heat or cool (or provide hot water for use in), such structure.</text> </subsection></section></subtitle><subtitle id="HCAF267E51A15497DB9DE87E1A9D128D5"><enum>B</enum><header>Lighting and Appliance Energy Efficiency Programs</header> <section id="H2B9FC16BA2D34540B5CC5AD0C5535929"><enum>211.</enum><header>Lighting efficiency standards</header> <subsection id="HC4F71B22713C4DDCBFC520F66072538D"><enum>(a)</enum><header>Outdoor lighting</header> <paragraph id="H00E8F421C2814BE68D73C11A8F70D6DB"><enum>(1)</enum><header>Definitions</header> <subparagraph id="H8E84C4C3A0D64BC38726006DF629802E"><enum>(A)</enum><text>Section 340(1) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6311">42 U.S.C. 6311(1)</external-xref>) is amended by striking subparagraph (L) and inserting the following:</text> <quoted-block id="HEC3B782B24F34E07BF81F936358C5744" style="OLC"> <subparagraph id="H87F389FFCD6F4961B7423D54672D1341"><enum>(L)</enum><text>Outdoor luminaires.</text> </subparagraph><subparagraph id="H9DFC4B6F862C4BBD92C7941CDB238816"><enum>(M)</enum><text>Outdoor high light output lamps.</text> </subparagraph><subparagraph id="HE61C8DEF67CD486788A55FDC6FCF813A"><enum>(N)</enum><text>Any other type of industrial equipment which the Secretary classifies as covered equipment under section 341(b).</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="H2E3B7C18A7F947809C18D5318F83D553"><enum>(B)</enum><text>Section 340 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6311">42 U.S.C. 6311</external-xref>) is amended as adding at the end the following:</text> <quoted-block id="H7CC8D49B8EA344B387C3C96031826063" style="OLC"> <paragraph id="HAB33B174F5654DB4B97E666F20761237"><enum>(25)</enum><text>The term <quote>luminaire</quote> means a complete lighting unit consisting of one or more light sources and ballast(s), together with parts designed to distribute the light, to position and protect such lamps, and to connect such light sources to the power supply.</text> </paragraph><paragraph id="H35DC8DED308647D486A1B7390D4385CF"><enum>(26)</enum><text>The term <quote>outdoor luminaire</quote> means a luminaire that is listed as suitable for wet locations pursuant to Underwriters Laboratories Inc. standard UL 1598 and is labeled as <quote>Suitable for Wet Locations</quote> consistent with section 410.4(A) of the National Electrical Code 2005, or is designed for roadway illumination and meets the requirements of Addendum A for IESNA TM–15–07: Backlight, Uplight, and Glare (BUG) Ratings, except for—</text> <subparagraph id="H801376B1023F42248F2518AFCE857231"><enum>(A)</enum><text>luminaires designed for outdoor video display images that cannot be used in general lighting applications;</text> </subparagraph><subparagraph id="H125835C7D7B04B8FA1F777A554C3C4B9"><enum>(B)</enum><text>portable luminaires designed for use at construction sites;</text> </subparagraph><subparagraph id="H77C0634DA87C4D51BA7DFE93B418FB60"><enum>(C)</enum><text>luminaires designed for continuous immersion in swimming pools and other water features;</text> </subparagraph><subparagraph id="HAC4D5F66377C498E8B8D3B7E8E19E4ED"><enum>(D)</enum><text>seasonal luminaires incorporating solely individual lamps rated at 10 watts or less;</text> </subparagraph><subparagraph id="HA03CC131B00C4E958D3280C24BFF3CF5"><enum>(E)</enum><text>luminaires designed to be used in emergency conditions that incorporate a means of charging a battery and a device to switch the power supply to emergency lighting loads automatically upon failure of the normal power supply;</text> </subparagraph><subparagraph id="H8317BB59F42E4168B4DDBA44C20EA6AA"><enum>(F)</enum><text>components used for repair of installed luminaries and that meet the requirements of section 342(h);</text> </subparagraph><subparagraph id="H83374DAAC39749D0B50327DB29535543"><enum>(G)</enum><text>a luminaire utilizing an electrode-less fluorescent lamp as the light source;</text> </subparagraph><subparagraph id="H8A706D656EBA489EB13B1293966552B0"><enum>(H)</enum><text>decorative gas lighting systems;</text> </subparagraph><subparagraph id="H95F34D78624243F4884F5D4D2B950569"><enum>(I)</enum><text>luminaires designed explicitly for lighting for theatrical purposes, including performance, stage, film production, and video production;</text> </subparagraph><subparagraph id="HEEB4DE6208A541FA9A59D06F93A025D8"><enum>(J)</enum><text>luminaires designed as theme elements in theme/amusement parks and that cannot be used in most general lighting applications;</text> </subparagraph><subparagraph id="H585A6EB537A640328AA1DAB2D6EDD2D1"><enum>(K)</enum><text>luminaires designed explicitly for vehicular roadway tunnels designed to comply with ANSI/IESNA RP–22–05;</text> </subparagraph><subparagraph id="HBB93CA93C8E24DB58548AF18B9E32022"><enum>(L)</enum><text>luminaires designed explicitly for hazardous locations meeting UL Standard 844;</text> </subparagraph><subparagraph id="HEA625CEAC819462499303237842768F4"><enum>(M)</enum><text>searchlights;</text> </subparagraph><subparagraph id="HF577AF98C939474DA0529BC26509728C"><enum>(N)</enum><text>luminaires that are designed to be recessed into a building, and that cannot be used in most general lighting applications;</text> </subparagraph><subparagraph id="H94D6B93397474D3885B96CD68C7645AC"><enum>(O)</enum><text>a luminaire rated only for residential applications utilizing a light source or sources regulated under the amendments made by section 321 of the Energy Independence and Security Act of 2007 and with a light output no greater than 2,600 lumens;</text> </subparagraph><subparagraph id="H80F22038B30D48118CA06312D495B111"><enum>(P)</enum><text>a residential pole-mounted luminaire that is not rated for commercial use utilizing a light source or sources meeting the efficiency requirements of section 231 of the Energy Independence and Security Act of 2007 and mounted on a post or pole not taller than 10.5 feet above ground and with a light output not greater than 2,600 lumens;</text> </subparagraph><subparagraph id="H2F59AFCE26464677A17AD9838C52A9BE"><enum>(Q)</enum><text>a residential fixture with E12 (Candelabra) bases that is rated for not more than 300 watts total; or</text> </subparagraph><subparagraph id="H7EE737708EEE4728893D3F9382DAB924"><enum>(R)</enum><text>a residential fixture with medium screw bases that is rated for not more than 145 watts.</text> </subparagraph></paragraph><paragraph id="HF36ED9A029B147429DB46F2C51318E6C"><enum>(27)</enum><text>The term <quote>outdoor high light outputlamp</quote> means a lamp that—</text> <subparagraph id="H5CD4C83F4A204CBDA5047449BA4D104F"><enum>(A)</enum><text>has a rated lumen output not less than 2601 lumens;</text> </subparagraph><subparagraph id="H175F12ACC6004C7D95E5EF1871C18826"><enum>(B)</enum><text>is capable of being operated at a voltage not less than 110 volts and not greater than 300 volts, or driven at a constant current of 6.6 amperes;</text> </subparagraph><subparagraph id="H5305572BFE8444EE868C954D38907C17"><enum>(C)</enum><text>is not a Parabolic Aluminized Reflector lamp; and</text> </subparagraph><subparagraph id="HBAB04E6DF5C1470691A734629ECBA16A"><enum>(D)</enum><text>is not a J-type double-ended (T–3) halogen quartz lamp, utilizing R–7S bases, that is manufactured before January 1, 2015.</text> </subparagraph></paragraph><paragraph id="HDE545FC9AB514522BCCA651B60D92BFD"><enum>(28)</enum><text>The term <quote>outdoor lighting control</quote> means a device incorporated in a luminaire that receives a signal, from either a sensor (such as an occupancy sensor, motion sensor, or daylight sensor) or an input signal (including analog or digital signals communicated through wired or wireless technology), and can adjust the light level according to the signal.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H1F0E6356BD69408EA832094FA6EFD4D6"><enum>(2)</enum><header>Standards</header><text>Section 342 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6313">42 U.S.C. 6313</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H74D8B320B9B54A9988A9604DB0050DD4" style="OLC"> <subsection id="H9345DC8190E345DABC64B065FEDBB4D3"><enum>(g)</enum><header>Outdoor luminaires</header> <paragraph id="H188DD48F0DD54552A1152AD320F80D2A"><enum>(1)</enum><text>Each outdoor luminaire manufactured on or after January 1, 2016, shall—</text> <subparagraph id="H11254F7771D4490C8EF08D7372C89596"><enum>(A)</enum><text>have an initial luminaire efficacy of at least 50 lumens per watt; and</text> </subparagraph><subparagraph id="H71CA6CAF1D4144ECBDC3A9A0EE657625"><enum>(B)</enum><text>be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.6.</text> </subparagraph></paragraph><paragraph id="HA39A87CF5EFD444BBF8DFC61A8AD25E8"><enum>(2)</enum><text>Each outdoor luminaire manufactured on or after January 1, 2018, shall—</text> <subparagraph id="H305ED5A0EA7F4C02B5D80DFF35F4095D"><enum>(A)</enum><text>have an initial luminaire efficacy of at least 70 lumens per watt; and</text> </subparagraph><subparagraph id="HC005561E10694DD395012DE7A45FEFE6"><enum>(B)</enum><text>be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.6.</text> </subparagraph></paragraph><paragraph id="H87F1F14D0620478A8605E44AFA0842D9"><enum>(3)</enum><text>In addition to the requirements of paragraphs (1) through (3), each outdoor luminaire manufactured on or after January 1, 2016, shall have the capability of producing at least two different light levels, including 100 percent and 60 percent of full lamp output as tested with the maximum rated lamp per UL1598 or the manufacturer’s maximum specified for the luminaire under test. Outdoor luminaries used for roadway lighting applications shall be exempt the 2 light level requirement.</text> </paragraph><paragraph id="H09506E95F74A48E4944413633D2A927E"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H87D9E7FC53AC44B985C12C0AE204DF7C"><enum>(A)</enum><text>Not later than January 1, 2022, the Secretary shall issue a final rule amending the applicable standards established in paragraph (3) if technologically feasible and economically justified.</text> </subparagraph><subparagraph id="HF7B9D56324C742C4A5FF62DD7717590C" indent="up1"><enum>(B)</enum><text>A final rule issued under subparagraph (A) shall establish efficiency standards at the maximum level that is technically feasible and economically justified, as provided in subsections (o) and (p) of section 325. The Secretary may also, in such rulemaking, amend or discontinue the product exclusions listed in section 340(26)(A) through (P), or amend the lumen maintenance requirements in paragraph (2) if the Secretary determines that such amendments are consistent with the purposes of this Act.</text> </subparagraph><subparagraph id="H7AEA1062A0DD4500892B9AF4769A295D" indent="up1"><enum>(C)</enum><text>If the Secretary issues a final rule under subparagraph (A) establishing amended standards, the final rule shall provide that the amended standards apply to products manufactured on or after January 1, 2025, or 1 year after the date on which the final amended standard is published, whichever is later.</text> </subparagraph></paragraph></subsection><subsection id="H2CA4F14205494C97873E3EB13411D61E"><enum>(h)</enum><header>Outdoor high light output lamps</header><text>Each outdoor high light output lamp manufactured on or after January 1, 2017, shall have a lighting efficiency of at least 45 lumens per watt.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HF4DAE38EAB34406094439BE93BDC6DA0"><enum>(3)</enum><header>Test procedures</header><text>Section 343(a) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6314">42 U.S.C. 6314(a)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HE6822E22C3C34B92A4D8B733D390180A" style="OLC"> <paragraph id="H62D8FA9F05DE45AC9D4CA57B54AA23A5"><enum>(10)</enum><header>Outdoor lighting</header> <subparagraph id="HB5FB312ED83148A89DC72970E7764096"><enum>(A)</enum><text>With respect to outdoor luminaires and outdoor high light output lamps, the test procedures shall be based upon the test procedures specified in illuminating engineering society procedures LM–79 as of March 1, 2009, and LM–31, and/or other appropriate consensus test procedures developed by the Illuminating Engineering Society or other appropriate consensus standards bodies.</text> </subparagraph><subparagraph id="H2ACB5F5B3C514A098EC1E4D5F56358B3"><enum>(B)</enum><text display-inline="yes-display-inline">If illuminating engineering society procedure LM–79 is amended, the Secretary shall amend the test procedures established in subparagraph (A) as necessary to be consistent with the amended LM–79 test procedure, unless the Secretary determines, by rule, published in the Federal Register and supported by clear and convincing evidence, that to do so would not meet the requirements for test procedures under paragraph (2).</text> </subparagraph><subparagraph id="H1648E7598A7449DDAD046D2BD21D6F2B"><enum>(C)</enum><text>The Secretary may revise the test procedures for outdoor luminaires or outdoor high light output lamps by rule consistent with paragraph (2), and may incorporate as appropriate consensus test procedures developed by the Illuminating Engineering Society or other appropriate consensus standards bodies.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H5A79C276055146F18B9F79384BE5B7C2"><enum>(4)</enum><header>Preemption</header><text>Section 345 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6316">42 U.S.C. 6316</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H1D3F91867E274FB58E9E77348125E689" style="OLC"> <subsection id="H53E4FA04B3D94C38A900D231B82BD95C"><enum>(i)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HD37D20AADA6443FF88400D15CA1AC199"><enum>(1)</enum><text>Except as provided in paragraph (2), section 327 shall apply to outdoor luminaires to the same extent and in the same manner as the section applies under part B.</text> </paragraph><paragraph id="H5C55C662CE884F18BF1C8354CCEA4EDD" indent="up1"><enum>(2)</enum><text>Any State standard that is adopted on or before January 1, 2015, pursuant to a statutory requirement to adopt efficiency standards for reducing outdoor lighting energy use enacted prior to January 31, 2008, shall not be preempted.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H273F343A72AD485292E3E96A290D6221"><enum>(5)</enum><header>Energy efficiency standards for certain luminaires</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall, in consultation with the National Electrical Manufacturers Association, collect data for United States sales of luminaires described in section 340(26)(H) and (M) of the Energy Policy and Conservation Act, to determine the historical growth rate. If the Secretary finds that the growth in market share of such luminaires exceeds twice the year-to-year rate of the average of the previous 3 years, then the Secretary shall within 12 months initiate a rulemaking to determine if such exclusion should be eliminated, if substitute products exist that perform more efficiently and fulfill the performance functions of these luminaires.</text> </paragraph></subsection><subsection id="HAB97FCF63B324D91AADBBD4FA5015092"><enum>(b)</enum><header>Portable lighting</header> <paragraph id="H08363B51074043C08BB7758BEF235400"><enum>(1)</enum><header>Portable light fixtures</header> <subparagraph id="H76B3234C8ED248E7BFD9C81978A2A3D9"><enum>(A)</enum><header>Definitions</header><text>Section 321 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H23BE2BAB43AE444E9E539C51FE46E20D" style="OLC"> <paragraph id="H85D2694919F04C44947C5C5AB4177FA8"><enum>(67)</enum><header>Art work light fixture</header><text>The term <term>art work light fixture</term> means a light fixture designed only to be mounted directly to an art work and for the purpose of illuminating that art work.</text> </paragraph><paragraph id="HB0393827D2EA4BF09EFF3395072FB9A2"><enum>(68)</enum><header>LED light engine</header><text>The term <term>LED light engine</term> or <term>LED light engine with integral heat sink</term> means a subsystem of an LED light fixture that—</text> <subparagraph id="HAF320AEFD12D48A984796916997E9F13"><enum>(A)</enum><text>includes 1 or more LED components, including—</text> <clause id="H16D12446CD1042BAA54717B7EF2CA251"><enum>(i)</enum><text>an LED driver power source with electrical and mechanical interfaces; and</text> </clause><clause id="HC851E68B7E7743D08F7C3A8AD4C18EAF"><enum>(ii)</enum><text>an integral heat sink to provide thermal dissipation; and</text> </clause></subparagraph><subparagraph id="H4052A20C446A434D9170E8B57E6CAF56"><enum>(B)</enum><text>may be designed to accept additional components that provide aesthetic, optical, and environmental control.</text> </subparagraph></paragraph><paragraph id="H59FD45ED813B46E9B6F77AAB26B8798C"><enum>(69)</enum><header>LED light fixture</header><text>The term <term>LED light fixture</term> means a complete lighting unit consisting of—</text> <subparagraph id="HC36769E84F604C7490BC11A3F4E67EF8"><enum>(A)</enum><text>an LED light source with 1 or more LED lamps or LED light engines; and</text> </subparagraph><subparagraph id="H52853E87A58246848738BF1D608B6DCE"><enum>(B)</enum><text>parts—</text> <clause id="H91B056AC9A8047009055EF5A353D6E28"><enum>(i)</enum><text>to distribute the light;</text> </clause><clause id="H03B8A6B167164E28A5070390E8B365C2"><enum>(ii)</enum><text>to position and protect the light source; and</text> </clause><clause id="H5C89B03EE98E4BBFB94FB69FC85304E8"><enum>(iii)</enum><text>to connect the light source to electrical power.</text> </clause></subparagraph></paragraph><paragraph id="HE065D03B7B1F4156B00E2A176A36DF92"><enum>(70)</enum><header>Light fixture</header><text>The term <term>light fixture</term> means a product designed to provide light that includes—</text> <subparagraph id="H371F47F3441E4530A5F1E27306123E52"><enum>(A)</enum><text>at least 1 lamp socket; and</text> </subparagraph><subparagraph id="H3DF40815C72F46449B8679210F722659"><enum>(B)</enum><text>parts—</text> <clause id="HDF41576A437B4EB596E35461EE264A7C"><enum>(i)</enum><text>to distribute the light;</text> </clause><clause id="H3C8EEAE2CD04452D9AC182C2D0881ECC"><enum>(ii)</enum><text>position and protect 1 or more lamps; and</text> </clause><clause id="HE5C8ECCABD9F469985AD0B0D99010F0A"><enum>(iii)</enum><text>to connect 1 or more lamps to a power supply.</text> </clause></subparagraph></paragraph><paragraph id="H180AA894EC80454781C4EB004C81EFA1"><enum>(71)</enum><header>Portable light fixture</header> <subparagraph id="HE77D17EEB4A04206AB7CE56CDD64D8B3"><enum>(A)</enum><header>In general</header><text>The term <term>portable light fixture</term> means a light fixture that has a flexible cord and an attachment plug for connection to a nominal 120-volt circuit that—</text> <clause id="H6F4F53FF8754480A88C94CA83F879F57"><enum>(i)</enum><text>allows the user to relocate the product without any rewiring; and</text> </clause><clause id="HB2ED59C135DD44F9BBA4006A47EC4F88"><enum>(ii)</enum><text>typically can be controlled with a switch located on the product or the power cord of the product.</text> </clause></subparagraph><subparagraph id="HF04EA1AE0A4D4FA3AB010F7A8EE7B045"><enum>(B)</enum><header>Exclusions</header><text>The term <term>portable light fixture</term> does not include—</text> <clause id="H06D039573DE444BCB6F744C08BC40BB4"><enum>(i)</enum><text>direct plug-in night lights, sun or heat lamps, medical or dental lights, portable electric hand lamps, signs or commercial advertising displays, photographic lamps, germicidal lamps, or light fixtures for marine use or for use in hazardous locations (as those terms are defined in ANSI/NFPA 70 of the National Electrical Code); or</text> </clause><clause id="H98A6659E30E84A3DB3F0EF5F0EBE48A7"><enum>(ii)</enum><text>decorative lighting strings, decorative lighting outfits, or electric candles or candelabra without lamp shades that are covered by Underwriter Laboratories (UL) standard 588, <quote>Seasonal and Holiday Decorative Products</quote>.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HD031D9C627EF4D0C9EE18EE0FC0FB12F"><enum>(B)</enum><header>Coverage</header> <clause id="H94E56FA2A6BA4FF89066E01A3216C21D"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Section 322(a) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6292">42 U.S.C. 6292(a)</external-xref>) is amended—</text> <subclause id="HDF2C364B95A84B70A7047198E134FFBD"><enum>(I)</enum><text>by redesignating paragraph (20) as paragraph (24); and</text> </subclause><subclause id="HF5C4114D0E7B43A987427E9203B13703"><enum>(II)</enum><text>by inserting after paragraph (19) the following:</text> <quoted-block display-inline="no-display-inline" id="HA67925E4B97B48149B686693B7193836" style="OLC"> <paragraph id="H7B1A9467663E46A784586ACB1370E80F"><enum>(20)</enum><text>Portable light fixtures.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subclause></clause><clause id="HBFF6011834754DA699D52F7AB2FEDE93"><enum>(ii)</enum><header>Conforming amendments</header><text>Section 325(l) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(l)</external-xref>) is amended by striking <quote>paragraph (19)</quote> each place it appears in paragraphs (1) and (2) and inserting <quote>paragraph (24)</quote>.</text> </clause></subparagraph><subparagraph id="HC5C3C0FF420E4C24B7BCCF445D128EEA"><enum>(C)</enum><header>Test procedures</header><text>Section 323(b) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6293">42 U.S.C. 6293(b)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HC8C70A8EE98C4646807597F605036ED2" style="OLC"> <paragraph id="H67E9C3BFDEF44D068EAE225F386E98C4"><enum>(19)</enum><header>LED fixtures and LED light engines</header><text>Test procedures for LED fixtures and LED light engines shall be based on Illuminating Engineering Society of North America (IESNA) test procedure LM–79, Approved Method for Electrical and Photometric Testing of Solid-State Lighting Devices, and IESNA-approved test procedure for testing LED light engines.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HC2489AED9E4247F6808D4C9ABE01B728"><enum>(D)</enum><header>Standards</header><text>Section 325 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295</external-xref>) is amended—</text> <clause id="H9F2D1EDB559E46F2B7B931B44CB84D9D"><enum>(i)</enum><text>by redesignating subsection (ii) as subsection (oo);</text> </clause><clause id="H604E07B9DE2240DFA86FD83200E6AF9C"><enum>(ii)</enum><text display-inline="yes-display-inline">in subsection (oo)(2), as redesignated in clause (i) of this subparagraph, by striking <quote>(hh)</quote> each place it appears and inserting <quote>(mm)</quote>; and</text> </clause><clause id="HF7EFE1D713E44EE0AA9C5C845CD73977"><enum>(iii)</enum><text>by inserting after subsection (hh) the following:</text> <quoted-block display-inline="no-display-inline" id="HF6BB199C82D64224A814B7F5B73D2432" style="OLC"> <subsection id="H3D0A6187E34B458990B63A9F9AE85786"><enum>(ii)</enum><header>Portable light fixtures</header> <paragraph id="H88F0E968C2BD463CB817C79BAC1E238D"><enum>(1)</enum><header>In general</header><text>Subject to paragraphs (2) and (3), portable light fixtures manufactured on or after January 1, 2012, shall meet 1 or more of the following requirements:</text> <subparagraph id="H9F0D4E98D68D4F7086C0F345A386353A"><enum>(A)</enum><text>Be a fluorescent light fixture that meets the requirements of the Energy Star Program for Residential Light Fixtures, Version 4.2.</text> </subparagraph><subparagraph id="HF8258949ADB742C78E22FB3ACA20EC36"><enum>(B)</enum><text display-inline="yes-display-inline">Be equipped with only 1 or more GU–24 line-voltage sockets, not be rated for use with incandescent lamps of any type (as defined in ANSI standards), and meet the requirements of version 4.2 of the Energy Star program for residential light fixtures.</text> </subparagraph><subparagraph id="H93DE7E3B31D14B3291B63421800682E6"><enum>(C)</enum><text>Be an LED light fixture or a light fixture with an LED light engine and comply with the following minimum requirements:</text> <clause id="H5D50E792D547435297C40BB98F0C4C86"><enum>(i)</enum><text>Minimum light output: 200 lumens (initial).</text> </clause><clause id="H73B40D1742824D45A80F33C9A951647D"><enum>(ii)</enum><text>Minimum LED light engine efficacy: 40 lumens/watt installed in fixtures that meet the minimum light fixture efficacy of 29 lumens/watt or, alternatively, a minimum LED light engine efficacy of 60 lumens/watt for fixtures that do not meet the minimum light fixture efficacy of 29 lumens/watt.</text> </clause><clause id="H1A9B0E5992BC4117875A0E4D560DB84F"><enum>(iii)</enum><text>All portable fixtures shall have a minimum LED light fixture efficacy of 29 lumens/watt and a minimum LED light engine efficacy of 60 lumens/watt by January 1, 2016.</text> </clause><clause id="HA00C883801894D5BBDA889C58B74EB90"><enum>(iv)</enum><text>Color Correlated Temperature (CCT): 2700K through 4000K.</text> </clause><clause id="H93FBEBB1101B49B5B92D0E62AF1745BD"><enum>(v)</enum><text>Minimum Color Rendering Index (CRI): 75.</text> </clause><clause id="H64225CEB65364540849A61FC7D7938C1"><enum>(vi)</enum><text>Power factor equal to or greater than 0.70.</text> </clause><clause id="HE6DACF89322C4621AC9714E15D2908D5"><enum>(vii)</enum><text>Portable luminaries that have internal power supplies shall have zero standby power when the luminaire is turned off.</text> </clause><clause id="HC04F141F047E414082C47726741198F6"><enum>(viii)</enum><text>LED light sources shall deliver at least 70 percent of initial lumens for at least 25,000 hours.</text> </clause></subparagraph><subparagraph id="H3A860C542BE94BDDA6887BBE2C15E5EF"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="HC46D3A5652604DFE8077A00B2BAE9B65"><enum>(i)</enum><text>Be equipped with an ANSI-designated E12, E17, or E26 screw-based socket and be prepackaged and sold together with 1 screw-based compact fluorescent lamp or screw-based LED lamp for each screw-based socket on the portable light fixture.</text> </clause><clause id="HB8B22DA14B42411B9B0355F447DAB074" indent="up1"><enum>(ii)</enum><text>The compact fluorescent or LED lamps prepackaged with the light fixture shall be fully compatible with any light fixture controls incorporated into the light fixture (for example, light fixtures with dimmers shall be packed with dimmable lamps).</text> </clause><clause id="H0E67339E13E641CBA3A74FB5128024F9" indent="up1"><enum>(iii)</enum><text>Compact fluorescent lamps prepackaged with light fixtures shall meet the requirements of the Energy Star Program for CFLs Version 4.0.</text> </clause><clause id="HEA154DF1477B4FB89F16D344C6164E2C" indent="up1"><enum>(iv)</enum><text>Screw-based LED lamps shall comply with the minimum requirements described in subparagraph (C).</text> </clause></subparagraph><subparagraph id="H9334FF1AE9FA46BC8782E53BED752253"><enum>(E)</enum><text>Be equipped with 1 or more single-ended, non-screw based halogen lamp sockets (line or low voltage), a dimmer control or high-low control, and be rated for a maximum of 100 watts.</text> </subparagraph></paragraph><paragraph id="H9F308902BC40410F82298970633DB3E0"><enum>(2)</enum><header>Review</header> <subparagraph id="H8DA6AF5E1C374F63A6523C8798D1EC93"><enum>(A)</enum><header>Review</header><text>The Secretary shall review the criteria and standards established under paragraph (1) to determine if revised standards are technologically feasible and economically justified.</text> </subparagraph><subparagraph id="H0A93C6F423944036B45836184A047F7D"><enum>(B)</enum><header>Components</header><text>The review shall include consideration of—</text> <clause id="H0AB1A337E1BF448A813F75C450FD508E"><enum>(i)</enum><text>whether a separate compliance procedure is still needed for halogen fixtures described in subparagraph (E) and, if necessary, what an appropriate standard for halogen fixtures shall be;</text> </clause><clause id="H2C44888F746A42E7B7CE91B1521943B3"><enum>(ii)</enum><text>whether the specific technical criteria described in subparagraphs (A), (C), and (D)(iii) should be modified; and</text> </clause><clause id="H83867F335D1A4C58B137586ECC158E7E"><enum>(iii)</enum><text>which fixtures should be exempted from the light fixture efficacy standard as of January 1, 2016, because the fixtures are primarily decorative in nature (as defined by the Secretary) and, even if exempted, are likely to be sold in limited quantities.</text> </clause></subparagraph><subparagraph id="HECA09B7C8B0848028A5AD946B5FFC64D"><enum>(C)</enum><header>Timing</header> <clause id="HA6A0D864EFFE4428ACB257FBDAA8B9D2"><enum>(i)</enum><header>Determination</header><text>Not later than January 1, 2014, the Secretary shall publish amended standards, or a determination that no amended standards are justified, under this subsection.</text> </clause><clause id="HBAC2893C24614E6FA6D2F43AEA59BB2F"><enum>(ii)</enum><header>Standards</header><text>Any standards under this paragraph shall take effect on January 1, 2016.</text> </clause></subparagraph></paragraph><paragraph id="H90710F02BED440438B2201D1D0CD38A2"><enum>(3)</enum><header>Art work light fixtures</header><text>Art work light fixtures manufactured on or after January 1, 2012, shall—</text> <subparagraph id="HB82AA2C025504768877297BFEEAA5CCA"><enum>(A)</enum><text>comply with paragraph (1); or</text> </subparagraph><subparagraph id="H78AC634E421E43D3939BBEF9B77FAD4F"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H3BF14DC7EE9640E3BEAB8EACD1C7E41C"><enum>(i)</enum><text>contain only ANSI-designated E12 screw-based line-voltage sockets;</text> </clause><clause id="HA790E997AEA7414F8BF94EE1E8FAD9BE" indent="up1"><enum>(ii)</enum><text>have not more than 3 sockets;</text> </clause><clause id="H449FB0EA6C104E2DB83CF8C44D90D674" indent="up1"><enum>(iii)</enum><text>be controlled with an integral high/low switch;</text> </clause><clause id="HAE679BCCF633406FADD2316864B4A240" indent="up1"><enum>(iv)</enum><text>be rated for not more than 25 watts if fitted with 1 socket; and</text> </clause><clause id="HAAA07E456B114155BC2D4BBF04554052" indent="up1"><enum>(v)</enum><text>be rated for not more than 15 watts per socket if fitted with 2 or 3 sockets.</text> </clause></subparagraph></paragraph><paragraph id="H1186BD06EA4E4B16866232C6B75BBF14"><enum>(4)</enum><header>Exception from preemption</header><text>Notwithstanding section 327, Federal preemption shall not apply to a regulation concerning portable light fixtures adopted by the California Energy Commission on or before January 1, 2014.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph id="H78B9F94190C743B1827D8291F38610D2"><enum>(2)</enum><header>GU–24 base lamps</header> <subparagraph id="H65E05B3EE0A4427DAD65E4AF92699867"><enum>(A)</enum><header>Definitions</header><text>Section 321 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291</external-xref>) (as amended by paragraph (1)(A)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H1C59183BC64E45FA9E243BB48CEF7120" style="OLC"> <paragraph id="H6A93B4A558FD43E68986E1829447889D"><enum>(72)</enum><header>GU–<enum-in-header>24</enum-in-header></header><text>The term <term>GU–24</term> means the designation of a lamp socket, based on a coding system by the International Electrotechnical Commission, under which—</text> <subparagraph id="H8E0A599C5E1A4BD9B7D7899A5172709F"><enum>(A)</enum><text><quote>G</quote> indicates a holder and socket type with 2 or more projecting contacts, such as pins or posts;</text> </subparagraph><subparagraph id="H83A98D6890434CAD813FBB6D0D7AB684"><enum>(B)</enum><text><quote>U</quote> distinguishes between lamp and holder designs of similar type that are not interchangeable due to electrical or mechanical requirements; and</text> </subparagraph><subparagraph id="HEB87B546D80448B99D3B750296E003C4"><enum>(C)</enum><text>24 indicates the distance in millimeters between the electrical contact posts.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0007B5D00AB743CCAB52748C5015C9E0"><enum>(73)</enum><header display-inline="yes-display-inline">GU–<enum-in-header>24</enum-in-header> adaptor</header> <subparagraph commented="no" display-inline="no-display-inline" id="HD51551BD81874354BF392FF919899F08"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>GU–24 Adaptor</term> means a 1-piece device, pig-tail, wiring harness, or other such socket or base attachment that—</text> <clause commented="no" display-inline="no-display-inline" id="H2E99792614FA4131832F9C81A71FBF14"><enum>(i)</enum><text display-inline="yes-display-inline">connects to a GU–24 socket on 1 end and provides a different type of socket or connection on the other end; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="HEFB71F7A34A24432980039A3A5FA105E"><enum>(ii)</enum><text display-inline="yes-display-inline">does not alter the voltage.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HED20F73327CB4FB1B5C4B06E979DF923"><enum>(B)</enum><header>Exclusion</header><text display-inline="yes-display-inline">The term <term>GU–24 Adaptor</term> does not include a fluorescent ballast with a GU–24 base.</text> </subparagraph></paragraph><paragraph id="H17B02A5A1352442AAB58B5FED181CAAD"><enum>(74)</enum><header>GU–24 base lamp</header><text><term>GU–24 base lamp</term> means a light bulb designed to fit in a GU–24 socket.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HC7EEFF3DE4DB43A391F6DE3D3C35E6B0"><enum>(B)</enum><header>Standards</header><text>Section 325 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295</external-xref>) (as amended by paragraph (1)(D)) is amended by inserting after subsection (ii) the following:</text> <quoted-block display-inline="no-display-inline" id="H274D7E826D534648AD27986BF98A3C2B" style="OLC"> <subsection id="H14F7D59C98684FF1A6807C4E839DF721"><enum>(jj)</enum><header><enum-in-header>GU–24</enum-in-header> base lamps</header> <paragraph id="H3C8902B9EF11486BBA563E9DDCAA1D67"><enum>(1)</enum><header>In general</header><text>A GU–24 base lamp shall not be an incandescent lamp as defined by ANSI.</text> </paragraph><paragraph id="H9F9B051F66064FBEA1139C36EAB79FCC"><enum>(2)</enum><header>GU–<enum-in-header>24</enum-in-header> adaptors</header><text>GU–24 adaptors shall not adapt a GU–24 socket to any other line voltage socket.</text> </paragraph></subsection><after-quoted-block>. </after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HDE2AF7C8A2164B8FBCDFAAE7C1A06E6A"><enum>(3)</enum><header>Standards for certain incandescent reflector lamps</header><text>Section 325(i) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(i)</external-xref>), as amended by section 161(a)(12) of this Act, is amended by adding at the end the following:</text> <quoted-block id="HDDAADC8059A54A0FBBD5BE79AB0A953E" style="OLC"> <paragraph id="HA1D8DF3457764E6080458598DD5DBE9B"><enum>(9)</enum><header>Certain incandescent reflector lamps</header><subparagraph commented="no" display-inline="yes-display-inline" id="H20DE081C6D9B49F7BC41A7BBF55E9398"><enum>(A)</enum><text>No later than 12 months after enactment of this paragraph, the Secretary shall publish a final rule establishing standards for incandescent reflector lamp types described in paragraph (1)(D). Such standards shall be effective on July 1, 2013.</text> </subparagraph><subparagraph id="HC51F730BF89A425CB3BFA315F44D59E8" indent="up1"><enum>(B)</enum><text>Any rulemaking for incandescent reflector lamps completed after enactment of this section shall consider standards for all incandescent reflector lamps, inclusive of those specified in paragraph (1)(C).</text> </subparagraph></paragraph><paragraph id="HA3AE179492CD4BE9913988419DA36F8A"><enum>(10)</enum><header>Reflector lamps</header><text>No later than January 1, 2015, the Secretary shall publish a final rule establishing and amending standards for reflector lamps, including incandescent reflector lamps. Such standards shall be effective no sooner than 3 years after publication of the final rule. Such rulemaking shall consider incandescent and nonincandescent technologies. Such rulemaking shall consider a new metric other than lumens-per-watt based on the photometric distribution of light from such lamps.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section display-inline="no-display-inline" id="H71A9F48FDD494293AEB72379D175E258"><enum>212.</enum><header>Other appliance efficiency standards</header> <subsection id="H45272BB0D6FC4C9B813D17638AB99598"><enum>(a)</enum><header>Standards for Water Dispensers, Hot Food Holding Cabinets, and Portable Electric Spas</header> <paragraph id="HFDBBB7CD3B334973BC174BD2C5563168"><enum>(1)</enum><header>Definitions</header><text>Section 321 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291</external-xref>), as amended by section 211 of this Act, is further amended by adding at the end the following:</text> <quoted-block id="H612C432C364B4D85A4657363D9C453A9" style="OLC"> <paragraph id="H413B9E95C3E9435F96ACE37B5C010D4F"><enum>(75)</enum><text>The term <quote>water dispenser</quote> means a factory-made assembly that mechanically cools and heats potable water and that dispenses the cooled or heated water by integral or remote means.</text> </paragraph><paragraph id="HA4BE39AEC46C400780C1734E7E1C44B3"><enum>(76)</enum><text>The term <quote>bottle-type water dispenser</quote> means a drinking water dispenser designed for dispensing both hot and cold water that uses a removable bottle or container as the source of potable water.</text> </paragraph><paragraph id="H8843DD470F434AB38E8264459BAC6049"><enum>(77)</enum><text>The term <quote>commercial hot food holding cabinet</quote> means a heated, fully-enclosed compartment with one or more solid or glass doors that is designed to maintain the temperature of hot food that has been cooked in a separate appliance. Such term does not include heated glass merchandising cabinets, drawer warmers, commercial hot food holding cabinets with interior volumes of less than 8 cubic feet, or cook-and-hold appliances.</text> </paragraph><paragraph id="H46BA4C9691E84793943CAFCC89807E9F"><enum>(78)</enum><text>The term <quote>portable electric spa</quote> means a factory-built electric spa or hot tub, supplied with equipment for heating and circulating water.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HDD15464D5B744160A7D4CB317DFF0E1F"><enum>(2)</enum><header>Coverage</header><text display-inline="yes-display-inline">Section 322(a) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6292">42 U.S.C. 6292(a)</external-xref>), as amended by section 211(b)(1)(B) of this Act, is further amended by inserting after paragraph (20) the following new paragraphs:</text> <quoted-block display-inline="no-display-inline" id="H1C3001F132A54C24A4BA6553CAAA9406" style="OLC"> <paragraph id="HC319D895D47A4865A7922921DEC17196"><enum>(21)</enum><text display-inline="yes-display-inline">Bottle type water dispensers.</text> </paragraph><paragraph id="H2D980C08B6D84FA5AFC1A9B0361C8712"><enum>(22)</enum><text>Commercial hot food holding cabinets.</text> </paragraph><paragraph id="HA8F6B8A10DFE40D1BE6A7254577A72AB"><enum>(23)</enum><text>Portable electric spas.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H088C483FDF7F4FEEA5DF93C4FA6031EE"><enum>(3)</enum><header>Test procedures</header><text display-inline="yes-display-inline">Section 323(b) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6293">42 U.S.C. 6293(b)</external-xref>), as amended by section 211(b)(1)(C) of this Act, is further amended by adding at the end the following:</text> <quoted-block id="H4DFFA7831F9B440D9703FB8582F9F72F" style="OLC"> <paragraph id="HE0FB9807DA1A4A19B157CBE9452532E9"><enum>(20)</enum><header>Bottle type water dispensers</header><text>Test procedures for bottle type water dispensers shall be based on <quote>Energy Star Program Requirements for Bottled Water Coolers version 1.1</quote> published by the Environmental Protection Agency. Units with an integral, automatic timer shall not be tested using section 4D, <quote>Timer Usage,</quote> of the test criteria.</text> </paragraph><paragraph id="H8CD08AB013494A6980E05163FE64EBA6"><enum>(21)</enum><header>Commercial hot food holding cabinets</header><text>Test procedures for commercial hot food holding cabinets shall be based on the test procedures described in ANSI/ASTM F2140–01 (Test for idle energy rate-dry test). Interior volume shall be based on the method shown in the Environmental Protection Agency’s <quote>Energy Star Program Requirements for Commercial Hot Food Holding Cabinets</quote> as in effect on August 15, 2003.</text> </paragraph><paragraph id="HBF529D7993894DBA9BE341F7A2306309"><enum>(22)</enum><header>Portable electric spas</header><text>Test procedures for portable electric spas shall be based on the test method for portable electric spas contained in section 1604, title 20, California Code of Regulations as amended on December 3, 2008. When the American National Standards Institute publishes a test procedure for portable electric spas, the Secretary shall revise the Department of Energy’s procedure.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HD06C7CDEB54E40CDB5A6DE2E2CF4EE2C"><enum>(4)</enum><header>Standards</header><text display-inline="yes-display-inline">Section 325 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295</external-xref>), as amended by section 211 of this Act, is further amended by adding after subsection (jj) the following:</text> <quoted-block id="HDAAA68EEB5684BE694D6DDFEFA48F79E" style="OLC"> <subsection id="HBBB03A8B37404A009F7245881A801143"><enum>(kk)</enum><header>Bottle type water dispensers</header><text>Effective January 1, 2012, bottle-type water dispensers designed for dispensing both hot and cold water shall not have standby energy consumption greater than 1.2 kilowatt-hours per day.</text> </subsection><subsection id="H613CEB7B461E4C8EA06A2CEC843CD1EE"><enum>(ll)</enum><header>Commercial hot food holding cabinets</header><text>Effective January 1, 2012, commercial hot food holding cabinets with interior volumes of 8 cubic feet or greater shall have a maximum idle energy rate of 40 watts per cubic foot of interior volume.</text> </subsection><subsection id="HAC9E48C8EBDA4B91A29182141825E1B2"><enum>(mm)</enum><header>Portable electric spas</header><text>Effective January 1, 2012, portable electric spas shall not have a normalized standby power greater than 5(V<superscript>2/3</superscript>) Watts where V=the fill volume in gallons.</text> </subsection><subsection id="H35DF357660104DC7AFAEB1F0DEB4A2D3"><enum>(nn)</enum><header>Revisions</header><text>The Secretary of Energy shall consider revisions to the standards in subsections (kk), (ll), and (mm) in accordance with subsection (o) and publish a final rule no later than January 1, 2013 establishing such revised standards, or make a finding that no revisions are technically feasible and economically justified. Any such revised standards shall take effect January 1, 2016.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HD8FEBDBD50B3432DB9DDB10504F81046"><enum>(b)</enum><header>Commercial furnace efficiency standards</header><text display-inline="yes-display-inline">Section 342(a) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6312">42 U.S.C. 6312(a)</external-xref>) is amended by inserting after paragraph (10) the following new paragraph:</text> <quoted-block id="H134BA5904FF049979255C9D57F5C26B6" style="OLC"> <paragraph id="HCF9CAFBC1025420F822DE93CF23748D4"><enum>(11)</enum><header>Warm air furnaces</header><text>Each warm air furnace with an input rating of 225,000 Btu per hour or more and manufactured after January 1, 2011, shall meet the following standard levels:</text> <subparagraph id="H2A1B6DCB81DC4D4898C6E9D133D0EE51"><enum>(A)</enum><header>Gas-fired units</header> <clause id="H401AAFB538FA4AEBA75BBB16F27B241B"><enum>(i)</enum><text>Minimum thermal efficiency of 80 percent.</text> </clause><clause id="HF37875B6568A43F8AD4C74EAA322D67B"><enum>(ii)</enum><text>Include an interrupted or intermittent ignition device.</text> </clause><clause id="H611EB3EDF7784505A43A82D8A869B093"><enum>(iii)</enum><text>Have jacket losses not exceeding 0.75 percent of the input rating.</text> </clause><clause id="HAE8EB28CA4A64794928EC2AEC8F84295"><enum>(iv)</enum><text>Have either power venting or a flue damper.</text> </clause></subparagraph><subparagraph id="HCE94CC1BF8574061AEF7C8F04E42D2B1"><enum>(B)</enum><header>Oil-fired units</header> <clause id="H50719CC6D294427F8402C1C9D4EA4A5B"><enum>(i)</enum><text>Minimum thermal efficiency of 81 percent.</text> </clause><clause id="HC0142266A1B9467CA6F94E793C941DB3"><enum>(ii)</enum><text>Have jacket losses not exceeding 0.75 percent of the input rating.</text> </clause><clause id="HE6BAEBB3E03044899EB7494F3382EE14"><enum>(iii)</enum><text>Have either power venting or a flue damper.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section display-inline="no-display-inline" id="H69FE900F51164052A989553D21648ABA" section-type="subsequent-section"><enum>213.</enum><header>Appliance efficiency determinations and procedures</header> <subsection id="HD224D9EBF3E046D2A5F5C027922A05DA"><enum>(a)</enum><header>Definition of energy conservation standard</header><text>Section 321(6) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291(6)</external-xref>) is amended to read as follows:</text> <quoted-block id="H22CA67B16C0A4EF9B936CF14C69BCF40" style="OLC"> <paragraph id="H3AF200E2FDAB464AB11D68599456A9FC"><enum>(6)</enum><header>Energy conservation standard</header> <subparagraph id="H38D1D10605B34DCDB1A7E9ADBDEB2DB3"><enum>(A)</enum><header>In general</header><text>The term <quote>energy conservation standard</quote> means 1 or more performance standards that—</text> <clause id="HA421A5CF30424D0DA82CF41635432202"><enum>(i)</enum><text>for covered products (excluding clothes washers, dishwashers, showerheads, faucets, water closets, and urinals), prescribe a minimum level of energy efficiency or a maximum quantity of energy use, determined in accordance with test procedures prescribed under section 323;</text> </clause><clause id="HB9E93120407C4996B35F67233572DD64"><enum>(ii)</enum><text>for showerheads, faucets, water closets, and urinals, prescribe a minimum level of water efficiency or a maximum quantity of water use, determined in accordance with test procedures prescribed under section 323; and</text> </clause><clause id="H003E8F30BB714946BE9CB5CFB6133D1D"><enum>(iii)</enum><text>for clothes washers and dishwashers—</text> <subclause id="H11212DD8B4CE4AAAA2F82C885BC09260"><enum>(I)</enum><text>prescribe a minimum level of energy efficiency or a maximum quantity of energy use, determined in accordance with test procedures prescribed under section 323; and</text> </subclause><subclause id="HAC832858482C4EC8B3CB1211EC1FEBF3"><enum>(II)</enum><text>may include a minimum level of water efficiency or a maximum quantity of water use, determined in accordance with those test procedures.</text> </subclause></clause></subparagraph><subparagraph id="H177E0C2CB9734A91944DE4C65E5F0144"><enum>(B)</enum><header>Inclusions</header><text>The term <quote>energy conservation standard</quote> includes—</text> <clause id="HE9E127F0494143C88EAE17D39B5EC080"><enum>(i)</enum><text>1 or more design requirements, if the requirements were established—</text> <subclause id="H8D732966BC03459EBE28DFD3CCC35938"><enum>(I)</enum><text>on or before the date of enactment of this subclause;</text> </subclause><subclause id="HBB7F43DA33994F8BA5F33C0C1E3B5868"><enum>(II)</enum><text>as part of a direct final rule under section 325(p)(4); or</text> </subclause><subclause id="H2DE714FD296E4D40AC7090AFCBDFF68E"><enum>(III)</enum><text>as part of a final rule published on or after January 1, 2012, and</text> </subclause></clause><clause id="H2CF23C35961F4E32A06E561192330D9C"><enum>(ii)</enum><text>any other requirements that the Secretary may prescribe under section 325(r).</text> </clause></subparagraph><subparagraph id="H061E4BA6FA064B039FD5A3256C5524F3"><enum>(C)</enum><header>Exclusion</header><text>The term <quote>energy conservation standard</quote> does not include a performance standard for a component of a finished covered product, unless regulation of the component is specifically authorized or established pursuant to this title.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE7E3D0041CBA414996A04A9907A62739"><enum>(b)</enum><header>Adopting consensus test procedures and test procedures in use elsewhere</header><text display-inline="yes-display-inline">Section 323(b) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6293">42 U.S.C. 6293(b)</external-xref>), as amended by sections 211 and 212 of this Act, is further amended by adding the following new paragraph after paragraph (22):</text> <quoted-block id="HBF65216CA31B4452B6D8287F9E441716" style="OLC"> <paragraph id="HB946253D7B82480984571BF4E439C55F"><enum>(23)</enum><header>Consensus and alternate test procedures</header> <subparagraph id="H7B14DF9838DB4F7B9DC8032114B0336A"><enum>(A)</enum><header>Receipt of joint recommendation or alternate testing procedure</header><text>On receipt of—</text> <clause id="H417D6673ADF542049CC8C2F7ED20CFB1"><enum>(i)</enum><text>a statement that is submitted jointly by interested persons that are fairly representative of relevant points of view (including representatives of manufacturers of covered products, States, and efficiency advocates), as determined by the Secretary, and contains recommendations with respect to the testing procedure for a covered product; or</text> </clause><clause id="H4A654FE1E0114B17A7DED2F4E41B8CBA"><enum>(ii)</enum><text>a submission of a testing procedure currently in use for a covered product by a State, nation, or group of nations—</text> <subclause id="H238C5CD90BDC4D4CBB676C9BE6F636F3"><enum>(I)</enum><text>if the Secretary determines that the recommended testing procedure contained in the statement or submission is in accordance with subsection (b)(3), the Secretary may issue a final rule that establishes an energy or water conservation testing procedure that is published simultaneously with a notice of proposed rulemaking that proposes a new or amended energy or water conservation testing procedure that is identical to the testing procedure established in the final rule to establish the recommended testing procedure (referred to in this paragraph as a <quote>direct final rule</quote>); or</text> </subclause><subclause id="H8EA59D301DA641FC8A4CEB2B0E7FC9A6"><enum>(II)</enum><text>if the Secretary determines that a direct final rule cannot be issued based on the statement or submission, the Secretary shall publish a notice of the determination, together with an explanation of the reasons for the determination.</text> </subclause></clause></subparagraph><subparagraph id="HCE6674BDBFF243699EBFAF25DADA91D6"><enum>(B)</enum><header>Public comment</header><text>The Secretary shall solicit public comment for a period of at least 110 days with respect to each direct final rule issued by the Secretary under subparagraph (A)(ii)(I).</text> </subparagraph><subparagraph id="H1597CB49347D4EEB9601C0054854126A"><enum>(C)</enum><header>Withdrawal of direct final rules</header> <clause id="HD02A5A3F72B643759C63B97DA63A9D8B"><enum>(i)</enum><header>In general</header><text>Not later than 120 days after the date on which a direct final rule issued under subparagraph (A)(ii)(I) is published in the Federal Register, the Secretary shall withdraw the direct final rule if—</text> <subclause id="H8E87F45439D44D3DBE8F1BF8FDA18655"><enum>(I)</enum><text>the Secretary receives 1 or more adverse public comments relating to the direct final rule under subparagraph (B)or any alternative joint recommendation; and</text> </subclause><subclause id="HED5D771ECAF945699D267EB30FD74075"><enum>(II)</enum><text>based on the rulemaking record relating to the direct final rule, the Secretary determines that such adverse public comments or alternative joint recommendation may provide a reasonable basis for withdrawing the direct final rule under paragraph (3) or any other applicable law.</text> </subclause></clause><clause id="H68B0F810D43A47B69037BD737CD51D52"><enum>(ii)</enum><header>Action on withdrawal</header><text>On withdrawal of a direct final rule under clause (i), the Secretary shall—</text> <subclause id="H8C66B0DF343349CFB4721BCE953AB2CD"><enum>(I)</enum><text>proceed with the notice of proposed rulemaking published simultaneously with the direct final rule as described in subparagraph (A)(ii)(I); and</text> </subclause><subclause id="HEFC5EA85952C42958B109A9BB0144583"><enum>(II)</enum><text>publish in the Federal Register the reasons why the direct final rule was withdrawn.</text> </subclause></clause><clause id="H218B8C7F088840F1833F016FC09FDF8F"><enum>(iii)</enum><header>Treatment of withdrawn direct final rules</header><text>A direct final rule that is withdrawn under clause (i) shall not be considered to be a final rule for purposes of subsection (b).</text> </clause></subparagraph><subparagraph id="HD0C9021F0F4C44A7859B6D7E8A07983B"><enum>(D)</enum><header>Effect of paragraph</header><text>Nothing in this paragraph authorizes the Secretary to issue a direct final rule based solely on receipt of more than 1 statement containing recommended test procedures relating to the direct final rule.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H7A8428F6418342E89A0085AA973BFFD4"><enum>(c)</enum><header>Updating television test methods</header><text display-inline="yes-display-inline">Section 323(b) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6293">42 U.S.C. 6293(b)</external-xref>), as amended by sections 211 and 212 of this Act, and subsection (b) of this section, is further amended by adding at the end the following new paragraph:</text> <quoted-block id="H01208AC623464F2F9D11D3C63E1B7245" style="OLC"> <paragraph id="H07E2781BFAD64443A9AEBFAA9916F651"><enum>(24)</enum><header>Televisions</header><subparagraph commented="no" display-inline="yes-display-inline" id="H1C810D1A53D84666AC0F4839C860D93F"><enum>(A)</enum><text>On the date of enactment of this paragraph, Appendix H to Subpart B of Part 430 of the United States Code of Federal Regulations, <quote>Uniform Test Method for Measuring the Energy Consumption of Television Sets</quote>, is repealed.</text> </subparagraph><subparagraph id="H42C1FE7947E64377B5EBF25817B981AC" indent="up1"><enum>(B)</enum><text>No later than 12 months after the date of enactment of this paragraph the Secretary shall publish in the Federal Register a final rule prescribing a new test method for televisions.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HBA418A0C0A954E28B24D8248ADDA6688"><enum>(d)</enum><header>Criteria for Prescribing New or Amended Standards</header><paragraph commented="no" display-inline="yes-display-inline" id="H5F07072BFE274D70B8EC445BA677C2F2"><enum>(1)</enum><text display-inline="yes-display-inline">Section 325(o)(2)(B)(i) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(o)(2)(B)(i)</external-xref>) is amended as follows:</text> <subparagraph id="H448370C4B4EC411E963D622AFB829B03" indent="up1"><enum>(A)</enum><text>By striking <quote>and</quote> at the end of subclause (VI).</text> </subparagraph><subparagraph id="H146BF55B2F784A56BD3FB29725C20206" indent="up1"><enum>(B)</enum><text>By redesignating subclause (VII) as subclause (XI).</text> </subparagraph><subparagraph id="H2A7347A5FDC54DEA825E5A00487D342F" indent="up1"><enum>(C)</enum><text>By inserting the following new subclauses after subclause (VI):</text> <quoted-block id="HB850D9D713F0434F934E8706A0D533B0" style="OLC"> <subclause id="HDE0AA4F033634A40B50073EC3CB8727F" indent="up3"><enum>(VII)</enum><text>the estimated value of the carbon dioxide and other emission reductions that will be achieved by virtue of the higher energy efficiency of the covered products resulting from the imposition of the standard;</text> </subclause><subclause id="HFE92AA11BDDD4FA09E179D7E4A2B0266" indent="up3"><enum>(VIII)</enum><text display-inline="yes-display-inline">the estimated impact of standards for a particular product on average consumer energy prices;</text> </subclause><subclause id="H2B3B1CA24C974619B92CB02FFD3FEA4D" indent="up3"><enum>(IX)</enum><text>the increased energy efficiency that may be attributable to the installation of Smart Grid technologies or capabilities in the covered products, if applicable in the determination of the Secretary;</text> </subclause><subclause id="HCD11AD6AA9FE4B4C82F90A6348E99E60" indent="up3"><enum>(X)</enum><text>the availability in the United States or in other nations of examples or prototypes of covered products that achieve significantly higher efficiency standards for energy or for water; and</text> </subclause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H813870CB579E41869B01E4ABFE4BD4D4" indent="up1"><enum>(2)</enum><text>Section 325(o)(2)(B)(iii) of such Act is amended as follows:</text> <subparagraph id="H5BB22BEF43CF4718B409839188BD4D76"><enum>(A)</enum><text>By striking <quote>three</quote> and inserting <quote>5</quote>.</text> </subparagraph><subparagraph id="HC20F154229BD4AAB84F4CE6C8D604EDE"><enum>(B)</enum><text>By inserting after the first sentence the following <quote>For products with an average expected useful life of less than 5 years, such rebuttable presumption shall be determined utilizing 75 percent of the product’s average expected useful life as a multiplier instead of 5.</quote>.</text> </subparagraph><subparagraph id="H48AD36F3C29641CD903F71C777B0D07F"><enum>(C)</enum><text display-inline="yes-display-inline">By striking the last sentence and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H2A96A542F2F940B5AE605CA136907CEA" style="OLC"> <text>Such a presumption may be rebutted only if the Secretary finds, based on clear, convincing, and reliable evidence, that—</text><subclause id="H5457F7D0F98E434FAA408AA77F3B5195" indent="up3"><enum>(I)</enum><text>such standard level would cause serious and unavoidable hardship to the average consumer of the product, or to manufacturers supplying a significant portion of the market for the product, that substantially outweighs the standard level’s benefits;</text> </subclause><subclause id="H2EA0A1E1486343E1AAAEE9A39B8FE21C" indent="up3"><enum>(II)</enum><text>the standard and implementing regulations cannot be designed to avoid or mitigate the hardship identified under subclause (I), through the adoption of regional standards consistent with paragraph (6) of this subsection, or other reasonable means consistent with this part;</text> </subclause><subclause id="HAFF8066BC0154FBE9EC655F66EAD4E34" indent="up3"><enum>(III)</enum><text>the same or substantially similar hardship would not occur under a standard adopted in the absence of the presumption, but that otherwise meets the requirements of this section; and</text> </subclause><subclause id="H8BD91B64BEBC49EB87D0552BA55B16E6" indent="up3"><enum>(IV)</enum><text>the hardship cannot be avoided or mitigated pursuant the procedures specified in section 504 of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7194">42 U.S.C. 7194</external-xref>).</text> </subclause><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">A determination by the Secretary that the criteria triggering such presumption are not met, or that the criterion for rebutting the presumption are met shall not be taken into consideration in the Secretary’s determination of whether a standard is economically justified.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="HFEB145A59B40441894FFF241B98B8E93"><enum>(e)</enum><header>Obtaining appliance information from manufacturers</header><text display-inline="yes-display-inline">Section 326(d) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(d)</external-xref>) is amended to read as follows:</text> <quoted-block id="H0CEABCDA19404C2DBB6A68E91E8AA3FA" style="OLC"> <subsection id="H70F872F8AB56494B80E50D141A562A34"><enum>(d)</enum><header>Information requirements</header><paragraph commented="no" display-inline="yes-display-inline" id="H4DAFB8A4EA3D4D9288DC8C50AB63494D"><enum>(1)</enum><text>For purposes of carrying out this part, the Secretary shall publish proposed regulations not later than 1 year after the date of enactment of the <short-title>American Clean Energy and Security Act of 2009</short-title>, and after receiving public comment, final regulations not later than 18 months from such date of enactment under this part or other provision of law administered by the Secretary, which shall require each manufacturer of a covered product to submit information or reports to the Secretary on an annual basis in a form adopted by the Secretary. Such reports shall include information or data with respect to—</text> <subparagraph id="H373B46E9373C43D9A49617007FB464D3" indent="up1"><enum>(A)</enum><text>the manufacturers’ compliance with all requirements applicable pursuant to this part;</text> </subparagraph><subparagraph id="H7107F1F437734A5DADC6F28D99A24FC7" indent="up1"><enum>(B)</enum><text>the economic impact of any proposed energy conservation standard;</text> </subparagraph><subparagraph id="H189B9AFB74104018815B400FAD3E22CE" indent="up1"><enum>(C)</enum><text>the manufacturers’ annual shipments of each class or category of covered products, organized, to the maximum extent practicable, by—</text> <clause id="H08085AE021724A0CB444DFD8F18085DA"><enum>(i)</enum><text>energy efficiency, energy use, and, if applicable, water use;</text> </clause><clause id="H867E8F97EE4346A995E0A52FE4C24C37"><enum>(ii)</enum><text>the presence or absence of such efficiency related or energy consuming operational characteristics or components as the Secretary determines are relevant for the purposes of carrying out this part; and</text> </clause><clause id="H93846A49860C4AC08D9BDA3B1D3B8FD4"><enum>(iii)</enum><text>the State or regional location of sale, for covered products for which the Secretary may adopt regional standards; and</text> </clause></subparagraph><subparagraph id="H7D4D8C9B6671449E84E30A116121E273" indent="up1"><enum>(D)</enum><text>such other categories of information as the Secretary deems relevant to carry out this part, including such other information as may be necessary to establish and revise test procedures, labeling rules, and energy conservation standards and to insure compliance with the requirements of this part.</text> </subparagraph></paragraph><paragraph id="H19C771CA08D24A06A0F64D0987557894" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">In adopting regulations under this subsection, the Secretary shall consider existing public sources of information, including nationally recognized certification programs of trade associations.</text> </paragraph><paragraph id="HBB5FAA9AC84445BCB413C3036018313E" indent="up1"><enum>(3)</enum><text>The Secretary shall exercise authority under this section in a manner designed to minimize unnecessary burdens on manufacturers of covered products.</text> </paragraph><paragraph id="HDF17B45026C14577B93CB62B8B66B177" indent="up1"><enum>(4)</enum><text>To the extent that they do not conflict with the duties of the Secretary in carrying out this part, the provisions of section 11(d) of the Energy Supply and Environmental Coordination Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/15/796">15 U.S.C. 796(d)</external-xref>) shall apply with respect to information obtained under this subsection to the same extent and in the same manner as they apply with respect to other energy information obtained under such section.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H9150CB8BE0564E6EAE68D81C1701ECDD"><enum>(f)</enum><header>State Waiver</header><text display-inline="yes-display-inline">Section 327(c) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297(c)</external-xref>), as amended by section 161(a)(19) of this Act, is further amended by adding at the end the following:</text> <quoted-block id="HB3DE109A574D4D8A9C3E6DBB6EB71F6D" style="OLC"> <paragraph id="H1E1B6C11FC264395B18BA57B9EE085CE"><enum>(12)</enum><text>is a regulation concerning standards for hot food holding cabinets, drinking water dispensers and portable electric spas adopted by the California Energy Commission on or before January 1, 2013.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H1ADD4293B8174BB19D4E8AB8224CD6D2"><enum>(g)</enum><header>Waiver of federal preemption</header><text display-inline="yes-display-inline">Paragraph (1) of section 327(d) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297(d)</external-xref>) is amended as follows:</text> <paragraph id="HA59817292E4B479FA46352786D97FF4D"><enum>(1)</enum><text>In subparagraph (A) by striking <quote>State regulation</quote> each place it appears and inserting <quote>State statute or regulation</quote>.</text> </paragraph><paragraph id="HF323D03AF1234CAAA5D7C05809A7B36E"><enum>(2)</enum><text>In subparagraph (B) by adding at the end the following new sentence: <quote>In making such a finding, the Secretary may not reject a petition for failure of the petitioning State or river basin commission to produce confidential information maintained by any manufacturer or distributor, or group or association of manufacturers or distributors, and which the petitioning party does not have the legal right to obtain.</quote>.</text> </paragraph><paragraph id="H7CBE4146DBDB464BA9BA1C791651C505"><enum>(3)</enum><text>In clause (ii) of subparagraph (C) by striking <quote>costs</quote> each place it appears and inserting <quote>estimated costs</quote>.</text> </paragraph><paragraph id="H05CF1F4DE26348FD9D056C545574C52F"><enum>(4)</enum><text>In subparagraph (C) by striking <quote>within the context of the State’s energy plan and forecast, and,</quote>.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HCD6015FBAC094CAF89C154F42D5EB785"><enum>(h)</enum><header>Inclusion of carbon output on appliance <quote>Energyguide</quote> labels</header><paragraph commented="no" display-inline="yes-display-inline" id="H85241A61B98340018E409E9D39747C1A"><enum>(1)</enum><text display-inline="yes-display-inline">Section 324(a)(2) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6294">42 U.S.C. 6294(a)(2)</external-xref>) is amended by adding the following at the end:</text> <quoted-block id="H9F38725BEA904767B1F18B81CA0C1D5C" style="OLC"> <subparagraph id="H94958BC94CC1485987F7E17C83728B9D" indent="up2"><enum>(I)</enum><clause commented="no" display-inline="yes-display-inline" id="H56CEA4CED83D4EEFAD9C22BC7ACEE566"><enum>(i)</enum><text>Not later than 90 days after the date of enactment of this subparagraph, the Commission shall initiate a rulemaking to implement the additional labeling requirements specified in subsection (c)(1)(C) of this section with an effective date for the revised labeling requirement not later than 12 months from issuance of the final rule.</text> </clause><clause id="H4E6FFAA15375449991A2312FDF87EF77" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">Not later than 24 months after the date of enactment of this subparagraph, the Commission shall complete the rulemaking initiated under clause (i).</text> </clause><clause id="H927D7E49CAA94C879E6A76E5FDF10494" indent="up1"><enum>(iii)</enum><text>Not later than 90 days after issuance of the final rule as provided in this subparagraph, the Secretary shall issue calculation methods required to effectuate the labeling requirements specified in subsection (c)(1)(C) of this section.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HAC5D886741AE41679BD287C2F51781B6" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Section 324(c)(1) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6294">42 U.S.C. 6294(c)(1)</external-xref>) is amended—</text> <subparagraph commented="no" id="HDC4350F08198496AAA9BAC4DA97B6810"><enum>(A)</enum><text>by striking <quote>and</quote> at the end of subparagraph (A);</text> </subparagraph><subparagraph commented="no" id="H42D0AE56EB9243228FD32A55B9249779"><enum>(B)</enum><text>by striking the period at the end of subparagraph (B) and inserting a semicolon; and</text> </subparagraph><subparagraph commented="no" id="H39EFF94940CB43BFACA52E69D6CF76BE"><enum>(C)</enum><text>by adding at the end the following new subparagraphs:</text> <quoted-block id="HC9039EFFCC8E4379B78C5211428C108E" style="OLC"> <subparagraph commented="no" id="HF2BBF91DA56A4D74820EE2AF1DF1E448" indent="up1"><enum>(C)</enum><text>for products or groups of products providing a comparable function (including the group of products comprising the heating function of heat pumps and furnaces) among covered products listed in paragraphs (3), (4), (5), (8), (9), (10), and (11) of section 322(a) of this part, and others designated by the Secretary, the estimated total annual atmospheric carbon dioxide emissions (or their equivalent in other greenhouse gases) associated with, or caused by, the product, calculated utilizing—</text> <clause commented="no" id="H929D6DA2D16047D3B06E09D84626719B"><enum>(i)</enum><text>national average energy use for the product including energy consumed at the point of end use based on test procedures developed under section 323 of this part;</text> </clause><clause commented="no" id="HB39D9F758FE34EA3A6B6FAAA93189EE6"><enum>(ii)</enum><text>national average energy consumed or lost in the production, generation, transportation, storage, and distribution of energy to the point of end use; and</text> </clause><clause commented="no" id="H35544C177B494CEF840D72E97C76B575"><enum>(iii)</enum><text>any direct emissions of greenhouse gases from the product during normal use;</text> </clause></subparagraph><subparagraph commented="no" id="H6CDD0EE4D51D4A0CBEF61E41298245E6"><enum>(D)</enum><text>in determining the national average energy consumption and total annual atmospheric carbon dioxide emissions, the Secretary shall utilize Federal Government sources, including the Energy Information Administration Annual Energy Review, the Environmental Protection Agency eGRID database, Environmental Protection Agency AP–42 Emission Factors as amended, and other sources determined to be appropriate by the Secretary; and</text> </subparagraph><subparagraph commented="no" id="HFA523FAB36924A38ADF0FDF721CEE626"><enum>(E)</enum><text>information presenting, for each product (or group of products providing the comparable function) identified in section (c)(1)(C) of this section, the estimated annual carbon dioxide emissions calculated within the range of emissions calculated for all models of the product or group according to its function, including those models consuming fuels and those models not consuming fuels.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="H4459F616711E49FDA586028C83C4C720"><enum>(i)</enum><header>Permitting States to seek injunctive enforcement</header><paragraph commented="no" display-inline="yes-display-inline" id="H95AC7479901948AA9A71AB8264087D5E"><enum>(1)</enum><text>Section 334 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6304">42 U.S.C. 6304</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H742F98CB5C8F496CA71D7D822B8ED3F8" style="OLC"> <section id="H594A231A13174231A082416B4B62FBBB"><enum>334.</enum><header>Jurisdiction and venue</header> <subsection id="H0ED429EAB6764284940A965465CB9B75"><enum>(a)</enum><header>Jurisdiction</header><text>The United States district courts shall have jurisdiction to restrain—</text> <paragraph id="HB2C31279DC08478581F26C141C20AAD8"><enum>(1)</enum><text>any violation of section 332; and</text> </paragraph><paragraph id="H6EB2E1FEB432488A9B915C76EE5F5AEE"><enum>(2)</enum><text>any person from distributing in commerce any covered product which does not comply with an applicable rule under section 324 or 325.</text> </paragraph></subsection><subsection id="H9FD26BEA624042F2B9D92E853AF28D30"><enum>(b)</enum><header>Authority</header><text>Any action referred to in subsection (a) shall be brought by the Commission or by the attorney general of a State in the name of the State, except that—</text> <paragraph id="HE6AB946544EC4B6589B4EDA8D7D9CF49"><enum>(1)</enum><text>any such action to restrain any violation of section 332(a)(3) which relates to requirements prescribed by the Secretary or any violation of section 332(a)(4) which relates to request of the Secretary under section 326(b)(2) shall be brought by the Secretary; and</text> </paragraph><paragraph id="H96292583D33446B6B36E02354C195833"><enum>(2)</enum><text>any violation of section 332(a)(5) or 332(a)(7) shall be brought by the Secretary or by the attorney general of a State in the name of the State.</text> </paragraph></subsection><subsection id="HB650844CD8E34DB887194A6725D04ECB"><enum>(c)</enum><header>Venue and service of process</header><text>Any such action may be brought in the United States district court for a district wherein any act, omission, or transaction constituting the violation occurred, or in such court of the district wherein the defendant is found or transacts business. In any action under this section, process may be served on a defendant in any other district in which the defendant resides or may be found.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HE12146EF452947EAB46011E59C9BAD8D" indent="up1"><enum>(2)</enum><text>The item relating to section 334 in the table of contents for such Act is amended to read as follows:</text> <toc regeneration="no-regeneration"> <toc-entry level="section"><quote>Sec. 334. Jurisdiction and venue.</quote>. </toc-entry> </toc> </paragraph></subsection><subsection id="H31E46407B9B842F295CFF334ED2ECE91"><enum>(j)</enum><header>Treatment of appliances within building codes</header><paragraph commented="no" display-inline="yes-display-inline" id="H3990BFF171484BF09FEB2AF49E6A5931"><enum>(1)</enum><text display-inline="yes-display-inline">Section 327(f)(3) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297(f)(3)</external-xref>) is amended by striking subparagraphs (B) through (G) and inserting the following:</text> <quoted-block id="H86866B7D993E4277AE14CBFF35FF8F81" style="OLC"> <subparagraph id="H1C06FF41E38C487FA835FE1A3FD00F22" indent="up1"><enum>(B)</enum><text>The code meets at least one of the following requirements:</text> <clause id="H4B07EB00403D433FA82F3811477643F4"><enum>(i)</enum><text>The code does not require that the covered product have an energy efficiency exceeding—</text> <subclause id="H4031D1F7FA494B12B38DFDD83B3B9A68"><enum>(I)</enum><text>the applicable energy conservation standard established in or prescribed under section 325;</text> </subclause><subclause id="H792A6BE03F8F4979ADC84EF1CF74943E"><enum>(II)</enum><text>the level required by a regulation of that State for which the Secretary has issued a rule granting a waiver under subsection (d) of this section; or</text> </subclause><subclause id="H66DE057A7A9D45C1A34A2C9C02CC1695"><enum>(III)</enum><text>the required level established in the International Energy Conservation Code or in a standard of the American Society of Heating, Refrigerating and Air-Conditioning Engineers, or by the Secretary pursuant to section 304 of the Energy Conservation and Production Act.</text> </subclause></clause><clause id="H778576106DA248BBA2BF90777F369D50"><enum>(ii)</enum><text>If the code uses one or more baseline building designs against which all submitted building designs are to be evaluated and such baseline building designs contain a covered product subject to an energy conservation standard established in or prescribed under section 325, the baseline building designs are based on an efficiency level for such covered product which meets but does not exceed one of the levels specified in clause (i).</text> </clause><clause id="H73F20B5FBEF74C089BD3E31B081E2C2F"><enum>(iii)</enum><text>If the code sets forth one or more optional combinations of items which meet the energy consumption or conservation objective, in at least one combination that the State has found to be reasonably achievable using commercially available technologies the efficiency of the covered product meets but does not exceed one of the levels specified in clause (i).</text> </clause></subparagraph><subparagraph id="H3AE422CEA90A4575A07BFE11D88EFC52" indent="up1"><enum>(C)</enum><text>The credit to the energy consumption or conservation objective allowed by the code for installing covered products having energy efficiencies exceeding one of the levels specified in subparagraph (B)(i) is on a one-for-one equivalent energy use or equivalent energy cost basis, taking into account the typical lifetime of the product.</text> </subparagraph><subparagraph id="H685A3BC9F67146EEA3D059AA8A2C1C31" indent="up1"><enum>(D)</enum><text>The energy consumption or conservation objective is specified in terms of an estimated total consumption of energy (which may be calculated from energy loss- or gain-based codes) utilizing an equivalent amount of energy (which may be specified in units of energy or its equivalent cost) and equivalent lifetimes.</text> </subparagraph><subparagraph id="H4236FADD6FB14625B3DFED2858684D68" indent="up1"><enum>(E)</enum><text>The estimated energy use of any covered product permitted or required in the code, or used in calculating the objective, is determined using the applicable test procedures prescribed under section 323, except that the State may permit the estimated energy use calculation to be adjusted to reflect the conditions of the areas where the code is being applied if such adjustment is based on the use of the applicable test procedures prescribed under section 323 or other technically accurate documented procedure.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H89D9E59C33B444EBB04241B766AF92D1"><enum>(2)</enum><text display-inline="yes-display-inline">Section 327(f)(4)(B) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6297">42 U.S.C. 6297(f)(4)(B)</external-xref>) is amended to read as follows:</text> <quoted-block id="HB2CF452A7814433B9673D2EC63D8931A" style="OLC"> <subparagraph id="H51B8941F68784CE5A316722C1631E29E" indent="up2"><enum>(B)</enum><text display-inline="yes-display-inline">If a building code requires the installation of covered products with efficiencies exceeding the levels and requirements specified in paragraph (3)(B), such requirement of the building code shall not be applicable unless the Secretary has granted a waiver for such requirement under subsection (d) of this section.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="HE55096AB22CB46C3B96D294B4B48CF81"><enum>214.</enum><header>Best-in-Class Appliances Deployment Program</header> <subsection id="H7CA56ED3ECDA46E189F7E0EAAAEBC995"><enum>(a)</enum><header>In General</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in consultation with the Administrator, shall establish a program to be known as the <quote>Best-in-Class Appliances Deployment Program</quote> to—</text> <paragraph id="HEA4400DD228E427499D658F8C3E8B215"><enum>(1)</enum><text>provide bonus payments to retailers or distributors under subsection (c) for sales of best-in-class high-efficiency household appliance models, high-efficiency installed building equipment, and high-efficiency consumer electronics, with the goal of reducing life-cycle costs for consumers, encouraging innovation, and maximizing energy savings and public benefit;</text> </paragraph><paragraph id="H58C9FAC251104E7A9E7DB5FBD7017ED0"><enum>(2)</enum><text>provide bounties under subsection (d) to retailers and manufacturers for the replacement, retirement, and recycling of old, inefficient, and environmentally harmful products; and</text> </paragraph><paragraph id="H2B52CE45F3254168805DF00AE8A73863"><enum>(3)</enum><text>provide premium awards under subsection (e) to manufacturers for developing and producing new Superefficient Best-in-Class Products.</text> </paragraph></subsection><subsection id="H58360D9E6E694912B0001270B7F3A215"><enum>(b)</enum><header>Designation of Best-in-Class Product Models</header> <paragraph id="H71888088614F42C785AB82E4536D27D2"><enum>(1)</enum><header>In general</header><text>The Secretary of Energy shall designate product models of appliances, equipment, or electronics as Best-in-Class Product models. The Secretary shall publicly announce the Best-in-Class Product models designated under this subsection. The Secretary shall define product classes broadly and, except as provided in paragraph (2), shall designate as Best-in-Class Product models no more than the most efficient 10 percent of the commercially available product models in a class that demonstrate, as a group, a distinctly greater energy efficiency than the average energy efficiency of that class of appliances, equipment, or electronics. In designating models, the Secretary shall—</text> <subparagraph id="HE05A6CAA04A84EBA93DF046DA832307E"><enum>(A)</enum><text>identify commercially available models in the relevant class of products;</text> </subparagraph><subparagraph id="H50B4C042716B4019A96AD67969460498"><enum>(B)</enum><text>identify the subgroup of those models that share the distinctly higher energy-efficiency characteristics that warrant designation as best-in-class; and</text> </subparagraph><subparagraph id="H1C6EF3E6A166442FB0B3A759666D12C5"><enum>(C)</enum><text>add other models in that class to the list of Best-in-Class Product models as they demonstrate their ability to meet the higher-efficiency characteristics on which the designation was made.</text> </subparagraph></paragraph><paragraph id="H0CEF4524036944EC93D7C7A1E515CEF5"><enum>(2)</enum><header>Percentage exception</header><text>If there are fewer than 10 product models in a class of products, the Secretary may designate one or more of such models as Best-in-Class Products.</text> </paragraph><paragraph id="H44C8BC7EBCC945C8A969A795CD314C34"><enum>(3)</enum><header>Review of best-in-class standards</header><text>The Secretary shall review annually the product-specific criteria for designating, and the product models that qualify as, Best-in-Class Products and, after notice and a 30-day comment period, make upwards adjustments in the efficiency criteria as necessary to maintain an appropriate ratio of such product models to the total number of product models in the product class.</text> </paragraph><paragraph id="H257E7214937146618173BA7EEDA304A4"><enum>(4)</enum><header>Smart grid energy efficiency savings</header><text>The Secretary shall include energy efficiency savings achieved by a commercially available product having smart grid capability in determining the efficiency level of a product for purposes of a Best-In-Class Product designation pursuant to this subsection. In measuring energy efficiency savings achieved by smart grid capability, the Secretary shall use a metric that—</text> <subparagraph id="H76994FE8027E44E9B4518D7A58B5159D"><enum>(A)</enum><text>is based on the time-differentiated value and amount of energy consumption;</text> </subparagraph><subparagraph id="HFD09087DCDE04C0A8089BBEDA81ECA11"><enum>(B)</enum><text>accounts for the capability of the product to respond to a smart grid in which the physical capability of the product to save or delay energy because of a smart grid feature is weighted by the likelihood that the feature will be used;</text> </subparagraph><subparagraph id="H80CA096B4B3944AF91B93DABB03A0379"><enum>(C)</enum><text>is based on the value of a unit of electric or gas consumption as a function of time of day and season; and</text> </subparagraph><subparagraph id="H6DB2F37B03124AD484FB23AA9300C24A"><enum>(D)</enum><text>includes a test method by which the manufacturer shall determine the energy efficiency of smart grid capable products.</text> </subparagraph></paragraph></subsection><subsection id="H19EE583E20B040998FEE7C7F15CEB767"><enum>(c)</enum><header>Bonuses for Sales of Best-in-Class Products</header> <paragraph id="HF791EC979E1D44F4A76712794B733E1D"><enum>(1)</enum><header>In general</header><text>The Secretary of Energy shall make bonus payments to retailers or, as provided in paragraph (5)(B), distributors for the sale of Best-in-Class Products.</text> </paragraph><paragraph id="H994FA81CED634F978BD9C49EF8C20113"><enum>(2)</enum><header>Bonus program</header><text>The Secretary shall—</text> <subparagraph id="H55BE5B2584344DB18833EE274F12F813"><enum>(A)</enum><text>publicly announce the availability and amount of the bonus to be paid for each sale of a Best-in-Class Product of a model designated under subsection (b); and</text> </subparagraph><subparagraph id="HD126EEBE22354D30ADA7967C2E21C1F2"><enum>(B)</enum><text>make bonus payments in at least that amount for each Best-in-Class Product of that model sold during the 3-year period beginning on the date the model is designated under subsection (b).</text> </subparagraph></paragraph><paragraph id="HB2A08F7BE44E4ED8B7089CEE75F9F0FC"><enum>(3)</enum><header>Upgrade of best-in-class product eligibility</header><text>In conducting a review under subsection (b)(3), the Secretary shall—</text> <subparagraph id="HEB92CE944D854BA9901FF56C534EF615"><enum>(A)</enum><text>consider designating as a Best-in-Class Product model a Superefficient Best-in-Class Product model that has been designated pursuant to subsection (e);</text> </subparagraph><subparagraph id="HDB231846B146402389B1F0B678C02831"><enum>(B)</enum><text>announce any change in the bonus payment as necessary to increase the market share of Best-in-Class Product models;</text> </subparagraph><subparagraph id="HC0AD74CE6B204E178F23CABBB0E1D837"><enum>(C)</enum><text>list models that will be eligible for bonuses in the new amount; and</text> </subparagraph><subparagraph id="H584D1E3321204A05AA34B263B00B2902"><enum>(D)</enum><text>continue paying bonus payments at the original level, for the sale of any models that previously qualified as Best-in-Class Products but do not qualify at the new level, for the remainder of the 3-year period announced with the original designation.</text> </subparagraph></paragraph><paragraph id="H08E94AF2B6AD48DC81FBA72A8D8554D7"><enum>(4)</enum><header>Size of individual bonus payments</header><subparagraph commented="no" display-inline="yes-display-inline" id="H460BA0EF15994D63B06F80CB19AC6D4B"><enum>(A)</enum><text>The size of each bonus payment under this subsection shall be the product of—</text> <clause id="HB104C6CD95394EC79150C5402763D0B3" indent="up1"><enum>(i)</enum><text>an amount determined by the Secretary; and</text> </clause><clause id="H0B1965D8C87B4279BF275EC7419B3923" indent="up1"><enum>(ii)</enum><text>the difference in energy consumption between the Best-in-Class Product and the average product in the product class.</text> </clause></subparagraph><subparagraph id="HF89C0273D9F64DE4A9622AD16E35A56A" indent="up1"><enum>(B)</enum><text>The Secretary shall determine the amount under subparagraph (A)(i) for each product type, in consultation with State and utility efficiency program administrators as well as the Administrator, based on estimates of the amount of bonus payment that would provide significant incentive to increase the market share of Best-in-Class Products.</text> </subparagraph></paragraph><paragraph id="H416B6DBE30A44D0288E0041CB0A0B343"><enum>(5)</enum><header>Eligible bonus recipient</header><subparagraph commented="no" display-inline="yes-display-inline" id="H70B3D33C8DB84961938F76C5451D9866"><enum>(A)</enum><text>The Secretary shall ensure that not more than 1 bonus payment is provided under this subsection for each Best-in-Class Product.</text> </subparagraph><subparagraph id="HEAD89B42F7524141B56D9A8E883836A2" indent="up1"><enum>(B)</enum><text>The Secretary may make distributors eligible to receive bonus payments under this subsection for sales that are not to the final end-user, to the extent that the Secretary determines that for a particular product category distributors are well situated to increase sales of Best-in-Class Products.</text> </subparagraph></paragraph></subsection><subsection id="HDA875B78F0ED40659F100A2F9C334573"><enum>(d)</enum><header>Bounties for Replacement, Retirement, and Recycling of Existing Low-Efficiency Products</header> <paragraph id="H27E6363E121A4C23A33E3B0E551FBAAF"><enum>(1)</enum><header>In general</header><text>The Secretary of Energy shall make bounty payments to—</text> <subparagraph id="H13C01A1E28654131A0F792819CA85E7D"><enum>(A)</enum><text>retailers for the replacement, retirement, and recycling of older operating low-efficiency products that might otherwise continue in operation; and</text> </subparagraph><subparagraph id="HC352B8627C424EF28AEDE27ABDFE30FD"><enum>(B)</enum><text>manufacturers of Superefficient Best-in-Class Products for the retirement and recycling of older operating low-efficiency products that perform the same function and which might otherwise continue in operation.</text> </subparagraph></paragraph><paragraph id="H00CC566D118B4841B1CE5BDE811A02F7"><enum>(2)</enum><header>Bounties</header><text>Bounties shall be payable—</text> <subparagraph id="HD622B8DEC6764C00A0F25C49EBF55C0F"><enum>(A)</enum><text>to a retailer upon documentation that the sale of a Best-in-Class Product was accompanied by the replacement, retirement, and recycling of—</text> <clause id="H837BA3315B4F4CE7B47A1668776B1FDB"><enum>(i)</enum><text>an inefficient but still-functioning product; or</text> </clause><clause id="H051682F3CD36419EA38757B441D98BC0"><enum>(ii)</enum><text>a nonfunctioning product containing a refrigerant, by the consumer to whom the Best-in-Class Product was sold; and</text> </clause></subparagraph><subparagraph id="HD0B7AC0E0F15468F876E61D1237CBBA7"><enum>(B)</enum><text>to a manufacturer upon documentation of the retirement and recycling of—</text> <clause id="HA66DB0B5558F4AF4A6D8D525B4DF1B49"><enum>(i)</enum><text>an inefficient but still-functioning product from a consumer to whom a Superefficient Best-in-Class Product was delivered; or</text> </clause><clause id="HCA5ECE9EFF3B49E497D3C585D494FAFB"><enum>(ii)</enum><text>a nonfunctioning product containing a refrigerant from a consumer to whom a Superefficient Best-in-Class Product was delivered.</text> </clause></subparagraph></paragraph><paragraph id="HB632AAAB3BE143F486E747D81D2EBD8C"><enum>(3)</enum><header>Amount</header> <subparagraph id="H356B578D56C24BF18264FC5A71B4E152"><enum>(A)</enum><header>Functioning products</header><text>The bounty payment payable under this subsection for a product described in paragraphs (2)(A)(i) and (2)(B)(i) shall be based on the difference between the estimated energy use of the product replaced and the energy use of an average new product in the product class, over the estimated remaining lifetime of the product that was replaced.</text> </subparagraph><subparagraph id="H611DA21244A746EB90A875B1E4885C05"><enum>(B)</enum><header>Nonfunctioning products containing refrigerants</header><text>The bounty payment payable under this subsection for a product described in paragraphs (2)(A)(ii) and (2)(B)(ii) shall be in the amount that the Secretary of Energy, in consultation with the Administrator, determines is sufficient to promote the recycling of such products, up to the amount of bounty for a comparable product described in paragraphs (2)(A) and (2)(B).</text> </subparagraph></paragraph><paragraph id="H863C98D6F7684ABE8838F4F1962936CE"><enum>(4)</enum><header>Retirement</header><text>The Secretary shall ensure that no product for which a bounty is paid under this subsection is returned to active service, but that it is instead destroyed, and recycled to the extent feasible.</text> </paragraph><paragraph id="H180AC7706F5747C0A970E554902FCE5E"><enum>(5)</enum><header>Recycling appliances containing refrigerants</header><text>Exclusively for the purpose of implementing the bounty payment program for products containing a refrigerant under this section, the Administrator shall establish standards for environmentally responsible methods of recycling and disposal of refrigerant-containing appliances that, at a minimum, meet the requirements set by the Responsible Appliance Disposal (RAD) Program for refrigerant disposal. The Secretary shall ensure that such standards are met before a bounty payment is made under this subsection for a product containing a refrigerant. Nothing in this section shall be interpreted to alter the requirements of section 608 of the Clean Air Act or to relieve any person from complying with those requirements.</text> </paragraph></subsection><subsection id="HEA9A79C9E013406D9619A9D39B380CD5"><enum>(e)</enum><header>Premium Awards for Development and Production of Superefficient Best-in-Class Products</header> <paragraph id="HD250FBBD456145609AE01320E407F73B"><enum>(1)</enum><header>In general</header><subparagraph commented="no" display-inline="yes-display-inline" id="HC4A5CD3ACC3D4C429F1C3B0668CAF274"><enum>(A)</enum><text>The Secretary of Energy shall provide premium awards to manufacturers for the development and production of Superefficient Best-in-Class Products. The Secretary shall set and periodically revise standards for eligibility of products for designation as a Superefficient Best-in-Class Product.</text> </subparagraph><subparagraph id="HDC3DE3581F834BBCA4C48759B8579E80" indent="up1"><enum>(B)</enum><text>The Secretary may establish a standard for a Superefficient Best-in-Class Product even if no product meeting that standard exists, if the Secretary has reasonable grounds to conclude that a mass-producible product could be made to meet that standard.</text> </subparagraph><subparagraph id="HD7946316282A4D9497D2076F6A330E3D" indent="up1"><enum>(C)</enum><text>The Secretary may also establish a Superefficient Best-in-Class Product standard that is met by one or more existing Best-in-Class Product models, if those product models have distinct energy efficiency attributes and performance characteristics that make them significantly better than other product models qualifying as best-in-class. The Secretary may not designate as Superefficient Best-in-Class Products under this subparagraph models that represent more than 10 percent of the currently qualifying Best-in-Class Product models. This subparagraph shall not apply to products designated pursuant to paragraph (4)(A).</text> </subparagraph><subparagraph id="HFD8BF2A83BD2460B89296492F9D352DF" indent="up1"><enum>(D)</enum><text>In making its finding on the efficiency level a product can achieve for purposes of a Superefficient Best-In-Class Product designation pursuant to this paragraph, the Secretary shall include energy efficiency savings that would be achieved by a product as a result of smart grid capability when a product having such capability can be produced and sold commercially to mass market consumers. In measuring energy efficiency savings achieved by smart grid capability, the Secretary shall use a metric that—</text> <clause id="H955E165F35684CBB9242F1141B9AA165"><enum>(i)</enum><text>is based on the time-differentiated value and amount of energy consumption;</text> </clause><clause id="HD3A7474F6E9848BDA56C3A9F9DA947B2"><enum>(ii)</enum><text>accounts for the capability of the product to respond to a smart grid in which the physical capability of the product to save or delay energy because of a smart grid feature is weighted by the likelihood that the feature will be used;</text> </clause><clause id="H4DA6EF96B31549499F394565EB120F39"><enum>(iii)</enum><text>is based on the value of a unit of electric or gas consumption as a function of time of day and season; and</text> </clause><clause id="H1FB9C099AD0547DAA12C75CBEF352C95"><enum>(iv)</enum><text>includes a test method by which the manufacturer shall determine the energy efficiency of smart grid capable products.</text> </clause></subparagraph></paragraph><paragraph id="H5D8D87A71FBC4C44A5E7F217BCF229FD"><enum>(2)</enum><header>Premium awards</header><subparagraph commented="no" display-inline="yes-display-inline" id="HF5A725929D064266BFB45E426D7B8C4C"><enum>(A)</enum><text>The premium award payment provided to a manufacturer under this subsection shall be in addition to any bonus payments made under subsection (c).</text> </subparagraph><subparagraph id="H51B68964A44F457B9D4B2A2D6B478E9B" indent="up1"><enum>(B)</enum><text>The amount of the premium award paid per unit of Superefficient Best-in-Class Products sold to retailers or distributors shall, except as provided by subparagraph (F), be the product of—</text> <clause id="H1B90E7A78BA54B388F4B86E71D28B077"><enum>(i)</enum><text>an amount determined by the Secretary; and</text> </clause><clause id="HD92C461B8AEC455F9584E51765FEA5BF"><enum>(ii)</enum><text>the difference in energy consumption between the Superefficient Best-in-Class Product and the average product in the product class.</text> </clause></subparagraph><subparagraph id="H4F2EC063E1CA4F1781DB0E93FE98D337" indent="up1"><enum>(C)</enum><text>The Secretary shall determine the amount under subparagraph (B)(i) for each product type, in consultation with State and utility efficiency program administrators as well as the Administrator, based on consideration of the present value to the Nation of the energy (and water or other resources or inputs) saved over the useful life of the product. The Secretary may also take into consideration the methods used to increase sales of qualifying products in determining such amount.</text> </subparagraph><subparagraph id="HBB869AD110004A4C91BB834A0A103B7C" indent="up1"><enum>(D)</enum><text>The Secretary may adjust the value described in subparagraph (C) upward or downward as appropriate, including based on the effect of the premium awards on the sales of products in different classes that may be affected by the program under this subsection.</text> </subparagraph><subparagraph id="H0ECD14234FDC4A26BAD50560A632D6AB" indent="up1"><enum>(E)</enum><text>Premium award payments shall be applied to sales of any Superefficient Best-in-Class Product for the first 3 years after designation as a Superefficient Best-in-Class Product.</text> </subparagraph><subparagraph id="H2D2C4C031DBE49B9893A337B6EED7F85" indent="up1"><enum>(F)</enum><text>For years 2011 through 2013, the Secretary shall make bonus payments to manufacturers of the products designated in paragraph (4)(A) for each product produced in the following amounts:</text> <clause id="H1B6DD7EC46E440A5B56345F07CEB37CC"><enum>(i)</enum><text>$75 for each dishwasher.</text> </clause><clause id="H374B2B2860174C80A173EBEE52FE7377"><enum>(ii)</enum><text>$250 for each clothes washer.</text> </clause><clause id="HC78AAD118D504541B9382617E01394A1"><enum>(iii)</enum><text>$200 for each refrigerator or refrigerator-freezer.</text> </clause><clause id="HE363663B7DF14D6E9CAC51E8FE0A5AB0"><enum>(iv)</enum><text>$250 for each clothes dryer.</text> </clause><clause id="HBD8B21CD6D8C433E9593C31D6AC9ACCE"><enum>(v)</enum><text>$200 for each cooking product.</text> </clause><clause id="H0866BFB5DB6B46558952E7DBAA37BA3F"><enum>(vi)</enum><text>$300 for each water heater.</text> </clause></subparagraph></paragraph><paragraph id="H50D84E9C8BAA45EE81BBFB16EA0A44B2"><enum>(3)</enum><header>Coordination of incentives</header><text>No product for which Federal tax credit is received under <external-xref legal-doc="usc" parsable-cite="usc/26/45M">section 45M</external-xref> of the Internal Revenue Code of 1986 shall be eligible to receive premium award payments pursuant to this subsection.</text> </paragraph><paragraph id="H93620655352F44EBA18D285B68F7D41F"><enum>(4)</enum><header>Designations</header> <subparagraph id="H819CB18B02FA4E5C87F620603500C40E"><enum>(A)</enum><header>Initial designations</header><text>Notwithstanding any other provisions of this section, the products the Secretary shall designate as a Superefficient Best-In-Class Product include, but are not limited to, the following products manufactured in 2011 through 2013:</text> <clause id="HB1FD853D3F504C7B914F4CAC9D080D5F"><enum>(i)</enum><text>A dishwasher, clothes washer, refrigerator, or refrigerator-freezer that meets the highest efficiency performance standards in its product category as provided in Section 305(b) of the Emergency Economic Stabilization Act of 2008 and has the smart grid capability specified in paragraph (5).</text> </clause><clause id="HC790CDD8CEE44F60855C680A67F1D711"><enum>(ii)</enum><text>A water heater that meets an efficiency standard that is the same or equivalent to the standard provided in Section 1333 of the Energy Policy Act of 2005 and has the smart grid capability specified in paragraph (5).</text> </clause><clause id="H722D3FCDAA694CB28DCEDDABDCE647BB"><enum>(iii)</enum><text>A clothes dryer or cooking product that the Secretary determines meets the standards specified in subsection (j)(3), which the Secretary shall promulgate no later than 1 year after the date of enactment, and has the smart grid capability specified in paragraph (5).</text> </clause></subparagraph><subparagraph id="H40226AB198B24C589937FD6D254DD6D8"><enum>(B)</enum><header>Extension of initial designations</header> <clause id="HBF51C76678144962BF1405BEA50A743E"><enum>(i)</enum><header>General</header><text>The Secretary shall in 2013 extend the Superefficient Best-In-Class Product designation of each product specified in subparagraph (A)(i) through (iii) through 2017, provided that for each product designation extended—</text> <subclause id="HAB8BB0A57B38489B8D6EE4133FFB390A"><enum>(I)</enum><text>the extension will result in significant energy efficiency savings;</text> </subclause><subclause id="H86704E18B0994E9EA59DB22012005E9A"><enum>(II)</enum><text>the product meets the Superefficient Best-In-Class Product criteria specified in paragraph (1);</text> </subclause><subclause id="HEDA6640BDD284C18B8F9526E428EF436"><enum>(III)</enum><text>the eligibility standards of the product include the smart grid capability specified in paragraph (5); and</text> </subclause><subclause id="H42914D31924448A99718E5EF83C18BAC"><enum>(IV)</enum><text>the Secretary makes appropriate revisions to the eligibility standards of the product as provided by paragraph (1).</text> </subclause></clause><clause id="HA0060B20C4E240328AB422E490668C6A"><enum>(ii)</enum><header>Awards</header><text>If a Superefficient Best-In-Class Product designation for a product is extended pursuant to this subparagraph, the premium award for the product shall be determined in accordance with paragraph (2).</text> </clause></subparagraph></paragraph><paragraph id="HAAA1D543E2654F5DBCB1646A69C69107"><enum>(5)</enum><header>Smart grid capability</header> <subparagraph id="H28E0F0F1860F437DA69CB6F932D3C016"><enum>(A)</enum><text>Until the Secretary promulgates criteria under subparagraph (B), the term <term>smart grid capability</term> means capability of receiving and interpreting time-of-use pricing and peak-load-shed signals from a utility and—</text> <clause id="HB02C12CE4CF6439F910218F304999C80"><enum>(i)</enum><text>in the case of a cooking product, reducing a minimum of 20 percent during peak demand as measured by the tested average wattage over the course of a typical operating cycle of the product; or</text> </clause><clause id="H254AC8A129404D95BC0026F74677FF31"><enum>(ii)</enum><text>in the case of a clothes washer, a refrigerator, a dishwasher, a dryer and a water heater, reducing a minimum of 50 percent during peak demand as measured by the tested average wattage over the course of a typical operating cycle of the product, provided that the typical operating cycle of a refrigerator and a water heater shall be a 24-hour period.</text> </clause></subparagraph><subparagraph id="H4F3EDAF21BF4407DAD5EF6736F19CC32"><enum>(B)</enum><text>After completion of the analysis required under section 142(b) of this Act, the Secretary shall expeditiously promulgate, after notice and a 30-day public comment period, criteria for what constitutes <quote>smart grid capability.</quote></text> </subparagraph></paragraph></subsection><subsection id="H14BF28AA72314EBE8DB04D95A83D9DFE"><enum>(f)</enum><header>Reporting</header><text>The Secretary of Energy shall require, as a condition of receiving a bonus, bounty, or premium award under this section, that a report containing the following documentation be provided:</text> <paragraph id="HF16BEA1CFE7144359B56191795750F27"><enum>(1)</enum><text>For retailers and distributors, the number of units sold within each product type, and model-specific wholesale purchase prices and retail sale prices, on a monthly basis.</text> </paragraph><paragraph id="HB00C64F391C24CFAAF8A4F2259B6DA48"><enum>(2)</enum><text>For manufacturers, model-specific energy efficiency and consumption data.</text> </paragraph><paragraph id="HFF76B13DBE22456D9104C217615D5058"><enum>(3)</enum><text>For manufacturers, on an immediate basis, information concerning any product design or function changes that affect the energy consumption of the unit.</text> </paragraph><paragraph id="H97F09C9D5DC94F158F46F5BE6A86D649"><enum>(4)</enum><text>The methods used to increase the sales of qualifying products.</text> </paragraph></subsection><subsection id="H4C5A57D797EB4A5FBED4F5BF03BE7307"><enum>(g)</enum><header>Monitoring and Verification Protocols</header><text>The Secretary of Energy shall establish monitoring and verification protocols for energy consumption tests for each product model and for sales of energy-efficient models. The Secretary shall estimate actual savings of energy from the use of Smart Grid capability in appliances for which premium award payments are made pursuant to subsection (e) as a function of utility and consumer readiness to utilize such capability.</text> </subsection><subsection id="HF77E23A7B42749498C0D268F728E8D9B"><enum>(h)</enum><header>Disclosure</header><text>The Secretary of Energy may require that manufacturers, retailers and distributors disclose publicly and to consumers their participation in the program under this section.</text> </subsection><subsection id="H580EDB97AD604F50B3BFB9ADB3112452"><enum>(i)</enum><header>Cost-Effectiveness Requirement</header> <paragraph id="HCFBFDEE6CC9B4488BB9427BB0F20ACFD"><enum>(1)</enum><header>Requirement</header><text>The Secretary of Energy shall make cost-effectiveness a top priority in designing the program under, and administering, this section, except that the cost-effectiveness of providing premium awards to manufacturers under subsection (e), in aggregate, may be lower by this measure than that of the bonuses and bounties to retailers and distributors under subsections (c) and (d).</text> </paragraph><paragraph id="HE05783037D68476D9582510CF59A8172"><enum>(2)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="H70EC2B67621B4A1EB651123CFB92FDBC"><enum>(A)</enum><header>Cost-effectiveness</header><text>The term <term>cost-effectiveness</term> means a measure of aggregate savings in the cost of energy over the lifetime of a product in relation to the cost to the Secretary of the bonuses, bounties, and premium awards provided under this section for a product.</text> </subparagraph><subparagraph id="H1D54478F2C174F6E8E6B3CC0E7590811"><enum>(B)</enum><header>Savings</header><text>The term <term>savings</term> means the cumulative megawatt-hours of electricity or million British thermal units of other fuels saved by a product during the projected useful life of the product, in comparison to projected energy consumption of the average product in the same class, taking into consideration the impact of any documented measures to replace, retire, and recycle low-efficiency products at the time of purchase of highly-efficient substitutes.</text> </subparagraph></paragraph></subsection><subsection id="HA1AC1A14914F406484DFA32C1581AABA"><enum>(j)</enum><header>Definitions</header><text>In this section—</text> <paragraph id="H9A24F62836304FF988535FBB61C8161A"><enum>(1)</enum><text>the term <term>distributor</term> mean an individual, organization, or company that sells products in multiple lots and not directly to end-users;</text> </paragraph><paragraph id="H2C4A9F44C979411C846C203A73B7279C"><enum>(2)</enum><text>the term <term>retailer</term> means an individual, organization, or company that sells products directly to end-users;</text> </paragraph><paragraph id="H8EBE0D100A7642A4B50A6CD8F76D6514"><enum>(3)</enum><text>the term <term>manufacturer</term> means an individual, organization, or company that transforms raw materials into mass-producible finished goods; and</text> </paragraph><paragraph id="H744B0F51C9D2400FAF2A13481B1A9C81"><enum>(4)</enum><text>the term <term>Superefficient Best-in-Class Product</term> means a product that—</text> <subparagraph id="H438420F0238A4E098239F0533D378F13"><enum>(A)</enum><text>can be mass produced; and</text> </subparagraph><subparagraph id="H96F8B0BCDF9940FD98D106747D6D7EAD"><enum>(B)</enum><text>achieves the highest level of efficiency that the Secretary of Energy finds can, given the current state of technology, be produced and sold commercially to mass-market consumers.</text> </subparagraph></paragraph></subsection><subsection id="H8BDF09A044EB4F70A21A1BA85F271306"><enum>(k)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated $600,000,000 for each of the fiscal years 2011 through 2013 to the Secretary of Energy for purposes of this section, and such sums as may be necessary for subsequent fiscal years. Of funds appropriated, not more than 10 percent for any fiscal year may be expended on program administration, and not less than 40 percent of any funds appropriated during fiscal years 2011 through 2013 shall be for purposes of subsection (e).</text> </subsection></section><section id="H627B27A1B56E4F60BDCF54D4743D9F33"><enum>215.</enum><header>WaterSense</header> <subsection id="HB4D283E9E89B479D9F768E3114BF3A89"><enum>(a)</enum><header>In general</header><text>There is established within the Environmental Protection Agency a WaterSense program to identify and promote water efficient products, buildings and landscapes, and services in order—</text> <paragraph id="H947199CFDC12400AA299A9D13125DA35"><enum>(1)</enum><text>to reduce water use;</text> </paragraph><paragraph id="H574A98C6111A485D9868A38F6979DA77"><enum>(2)</enum><text>to reduce the strain on water, wastewater, and stormwater infrastructure;</text> </paragraph><paragraph id="HABB090ABD40B46E6AEC60215E91786B8"><enum>(3)</enum><text>to conserve energy used to pump, heat, transport, and treat water; and</text> </paragraph><paragraph id="H5F8B127E655742BCAAF87A08C5AA1157"><enum>(4)</enum><text>to preserve water resources for future generations,</text> </paragraph><continuation-text continuation-text-level="subsection">through voluntary labeling of, or other forms of communications about, products, buildings and landscapes, and services that meet the highest water efficiency and performance standards.</continuation-text></subsection><subsection id="HCBAB5C6260EE464A8BF880318533F0EE"><enum>(b)</enum><header>Duties</header><text>The Administrator shall—</text> <paragraph id="HA2853F909E87404BA42D9EF782E70119"><enum>(1)</enum><text>promote WaterSense labeled products, buildings and landscapes, and services in the market place as the preferred technologies and services for—</text> <subparagraph id="H2512741669154A87804204FC274D82EF"><enum>(A)</enum><text>reducing water use; and</text> </subparagraph><subparagraph id="HC775C62AD7A24838B0868210299F8FF6"><enum>(B)</enum><text>ensuring product and service performance;</text> </subparagraph></paragraph><paragraph id="H7F23CFA552A2409194BCC02200FED1E5"><enum>(2)</enum><text display-inline="yes-display-inline">work to enhance public awareness of the WaterSense label through public outreach, education, and other means;</text> </paragraph><paragraph id="HE01A0285D00E47DF8632A8882545D7C6"><enum>(3)</enum><text>establish and maintain performance standards so that products, buildings and landscapes, and services labeled with the WaterSense label perform as well or better than their less efficient counterparts;</text> </paragraph><paragraph id="H196C4DD3E19F4478BC5C8A30CB55843A"><enum>(4)</enum><text>publicize the need for proper installation and maintenance of WaterSense products by a licensed, and where certification guidelines exist, WaterSense-certified professional to ensure optimal performance;</text> </paragraph><paragraph id="HE8A4CEC49B2C4AA6856A273D220E4B70"><enum>(5)</enum><text>preserve the integrity of the WaterSense label;</text> </paragraph><paragraph id="H524295B86F3544E0A183500473100873"><enum>(6)</enum><text display-inline="yes-display-inline">regularly review and, when appropriate, update WaterSense criteria for categories of products, buildings and landscapes, and services, at least once every 4 years;</text> </paragraph><paragraph id="H87D5507D2CF144C6B19259B6C974521C"><enum>(7)</enum><text>to the extent practical, regularly estimate and make available to the public the production and relative market shares of WaterSense labeled products, buildings and landscapes, and services, at least annually;</text> </paragraph><paragraph id="HD6317B32E9614C4BB00CE285FA8249ED"><enum>(8)</enum><text display-inline="yes-display-inline">to the extent practical, regularly estimate and make available to the public the water and energy savings attributable to the use of WaterSense labeled products, buildings and landscapes, and services, at least annually;</text> </paragraph><paragraph id="H6454F9660817435B9583715570DC4D6E"><enum>(9)</enum><text display-inline="yes-display-inline">solicit comments from interested parties and the public prior to establishing or revising a WaterSense category, specification, installation criterion, or other criterion (or prior to effective dates for any such category, specification, installation criterion, or other criterion);</text> </paragraph><paragraph id="HC0165F4A2EF84586A47ED656E8952C91"><enum>(10)</enum><text display-inline="yes-display-inline">provide reasonable notice to interested parties and the public of any changes (including effective dates), on the adoption of a new or revised category, specification, installation criterion, or other criterion, along with—</text> <subparagraph id="H3C246706C6914822918AF12F19B6CA03"><enum>(A)</enum><text>an explanation of changes; and</text> </subparagraph><subparagraph id="H6E02100518194BD6A2E70A9520202840"><enum>(B)</enum><text>as appropriate, responses to comments submitted by interested parties;</text> </subparagraph></paragraph><paragraph id="H6A1BE351613C47FF9411818D2CC445C6"><enum>(11)</enum><text display-inline="yes-display-inline">provide appropriate lead time (as determined by the Administrator) prior to the applicable effective date for a new or significant revision to a category, specification, installation criterion, or other criterion, taking into account the timing requirements of the manufacturing, marketing, training, and distribution process for the specific product, building and landscape, or service category addressed; and</text> </paragraph><paragraph id="HD92936DD8328469BA687793629E9EDDF"><enum>(12)</enum><text display-inline="yes-display-inline">identify and, where appropriate, implement other voluntary approaches in commercial, institutional, residential, municipal, and industrial sectors to encourage reuse and recycling technologies, improve water efficiency, or lower water use while meeting, where applicable, the performance standards established under paragraph (3).</text> </paragraph></subsection><subsection id="H7756ACF192E64E4E94F9082C5560A316"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated $7,500,000 for fiscal year 2010, $10,000,000 for fiscal year 2011, $20,000,000 for fiscal year 2012, and $50,000,000 for fiscal year 2013 and each year thereafter, adjusted for inflation, to carry out this section.</text> </subsection></section><section id="HCF82B433D07F47739DF4B2DB0585C7E5"><enum>216.</enum><header>Federal procurement of water efficient products</header> <subsection id="H5C814AF4546C4CD6AF5B0A35E5A76B9E"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HF0F7B84D3DA44BFE88DCBAB74D5B76EE"><enum>(1)</enum><header>Agency</header><text>The term <quote>agency</quote> has the meaning given that term in <external-xref legal-doc="usc" parsable-cite="usc/5/7902">section 7902(a)</external-xref> of title 5, United States Code.</text> </paragraph><paragraph id="H5C5778E433EF4F2B8D47264DBEDBBD01"><enum>(2)</enum><header>Watersense product or service</header><text>The term <quote>WaterSense product or service</quote> means a product or service that is rated for water efficiency under the WaterSense program.</text> </paragraph><paragraph id="HE4142A7152A0492FB2CCCDBEC2F7F631"><enum>(3)</enum><header>Watersense program</header><text>The term <quote>WaterSense program</quote> means the program established by section 215 of this Act.</text> </paragraph><paragraph id="HC79E9424393542AE96F7F0A82879CCEF"><enum>(4)</enum><header>FEMP designated product</header><text>The term <quote>FEMP designated product</quote> means a product that is designated under the Federal Energy Management Program of the Department of Energy as being among the highest 25 percent of equivalent products for efficiency.</text> </paragraph><paragraph id="HCD1746B8797A46D9AA78FC985DE4922E"><enum>(5)</enum><header>Product and service</header><text>The terms <quote>product</quote> and <quote>service</quote> do not include any water consuming product or service designed or procured for combat or combat-related missions. The terms also exclude products or services already covered by the Federal procurement regulations established under section 553 of the National Energy Conservation Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8259b">42 U.S.C. 8259b</external-xref>).</text> </paragraph></subsection><subsection id="H234A0B6484B7414F83777F30F2B863C6"><enum>(b)</enum><header>Procurement of water efficient products</header> <paragraph id="H130242FAE2D9427AB1E7F4ED82FCB838"><enum>(1)</enum><header>Requirement</header><text>To meet the requirements of an agency for a water consuming product or service, the head of the agency shall, except as provided in paragraph (2), procure—</text> <subparagraph id="H12F65849E62F4FD182CCC0ABA1104C23"><enum>(A)</enum><text>a WaterSense product or service; or</text> </subparagraph><subparagraph id="H49172C1F574647A4BCB8A6EFA3984836"><enum>(B)</enum><text>a FEMP designated product.</text> </subparagraph><continuation-text continuation-text-level="paragraph">A WaterSense plumbing product should preferably, when possible, be installed by a licensed and, when WaterSense certification guidelines exist, WaterSense-certified plumber or mechanical contractor, and a WaterSense irrigation system should preferably, when possible, be installed, maintained, and audited by a WaterSense-certified irrigation professional to ensure optimal performance.</continuation-text></paragraph><paragraph id="HAE91660029254341BFA33043615BCE65"><enum>(2)</enum><header>Exceptions</header><text>The head of an agency is not required to procure a WaterSense product or service or FEMP designated product under paragraph (1) if the head of the agency finds in writing that—</text> <subparagraph id="HB59699932AE14C3BA8E0F3CE1FFC10BD"><enum>(A)</enum><text>a WaterSense product or service or FEMP designated product is not cost-effective over the life of the product, taking energy and water cost savings into account; or</text> </subparagraph><subparagraph id="HA8BF7C75EAA2480BBAD14FF32BEC55E7"><enum>(B)</enum><text>no WaterSense product or service or FEMP designated product is reasonably available that meets the functional requirements of the agency.</text> </subparagraph></paragraph><paragraph id="H279431444D8C4FD2A6C4FF1DB4E5B55B"><enum>(3)</enum><header>Procurement planning</header><text>The head of an agency shall incorporate into the specifications for all procurements involving water consuming products and systems, including guide specifications, project specifications, and construction, renovation, and services contracts that include provision of water consuming products and systems, and into the factors for the evaluation of offers received for the procurement, criteria used for rating WaterSense products and services and FEMP designated products. The head of an agency shall consider, to the maximum extent practicable, additional measures for reducing agency water consumption, including water reuse technologies, leak detection and repair, and use of waterless products that perform similar functions to existing water-consuming products.</text> </paragraph></subsection><subsection id="HB38067A483BA49AFA7CB00B0FE7566B3"><enum>(c)</enum><header>Regulations</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary of Energy, working in coordination with the Administrator, shall issue guidelines to carry out this section.</text> </subsection></section><section display-inline="no-display-inline" id="H401038D19ED74F2FBFE55FF671ACB01E"><enum>217.</enum><header>Early adopter water efficient product incentive programs</header> <subsection id="HB840C99009F0491BB2CAFD15483333D6"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H15A517D2A58E429299D3D5D241CAC9FD"><enum>(1)</enum><header>Eligible entity</header><text>The term <quote>eligible entity</quote> means a State government, local or county government, tribal government, wastewater or sewerage utility, municipal water authority, energy utility, water utility, or nonprofit organization that meets the requirements of subsection (b).</text> </paragraph><paragraph id="H29AB3EBE7B634CD8B1F06A946ACA11AD"><enum>(2)</enum><header>Incentive program</header><text>The term <quote>incentive program</quote> means a program for administering financial incentives for consumer purchase and installation of residential water efficient products and services as described in subsection (b)(1).</text> </paragraph><paragraph id="H901E5E4DF89044DFA0960508D4B58836"><enum>(3)</enum><header>Residential water efficient product or service</header><text display-inline="yes-display-inline">The term <quote>residential water efficient product or service</quote> means a product or service for a single-family or multifamily residence or its landscape that is rated for water efficiency and performance—</text> <subparagraph id="H77DDD7347F8D41B2A496330789C5E7A8"><enum>(A)</enum><text>by the WaterSense program; or</text> </subparagraph><subparagraph id="H9D610C16F1B045B49BC89E933E5B945E"><enum>(B)</enum><text display-inline="yes-display-inline">where a WaterSense specification does not exist, by an incentive program.</text> </subparagraph><continuation-text continuation-text-level="paragraph">Categories of water efficient products and services may include faucets, irrigation technologies and services, point-of-use water treatment devices, reuse and recycling technologies, toilets, and showerheads.</continuation-text></paragraph><paragraph id="HDAD0F9A8E069484F821391CE419B6C6F"><enum>(4)</enum><header>Watersense program</header><text>The term <quote>WaterSense program</quote> means the program established by section 215 of this Act.</text> </paragraph></subsection><subsection id="H71B9AC74693747DB909A9024E0B2336E"><enum>(b)</enum><header>Eligible entities</header><text>An entity shall be eligible to receive an allocation under subsection (c) if the entity—</text> <paragraph id="H1BE6F205011D415F8E9ABDFA4380C494"><enum>(1)</enum><text display-inline="yes-display-inline">establishes (or has established) an incentive program to provide rebates, vouchers, other financial incentives, or direct installs to consumers for the purchase of residential water efficient products or services;</text> </paragraph><paragraph id="HF8D8520ECC16485CAF0F67CF2D058210"><enum>(2)</enum><text>submits an application for the allocation at such time, in such form, and containing such information as the Administrator may require; and</text> </paragraph><paragraph id="HF0BA7CAD1B9D40329F374A0210E22114"><enum>(3)</enum><text>provides assurances satisfactory to the Administrator that the entity will use the allocation to supplement, but not supplant, funds made available to carry out the incentive program.</text> </paragraph></subsection><subsection id="H27E8555F21F14B7FA77E0B98A1232FA5"><enum>(c)</enum><header>Amount of allocations</header><text>For each fiscal year, the Administrator shall determine the amount to allocate to each eligible entity to carry out subsection (d) taking into consideration—</text> <paragraph id="HCA8571A4A1EE486ABB7675856FBBFAB2"><enum>(1)</enum><text>the population served by the eligible entity in the most recent calendar year for which data are available;</text> </paragraph><paragraph id="H55FCD55F8F664D9BB7498A421F72B333"><enum>(2)</enum><text>the targeted population of the eligible entity’s incentive program, such as general households, low-income households, or first-time homeowners, and the probable effectiveness of the incentive program for that population;</text> </paragraph><paragraph id="H72EE12F4961F40D089EEA401256E8C09"><enum>(3)</enum><text>for existing programs, the effectiveness of the incentive program in encouraging the adoption of water efficient products and services; and</text> </paragraph><paragraph id="HF3223D3FBE16462E972A004ABC72A9B5"><enum>(4)</enum><text>any prior year’s allocation to the eligible entity that remains unused.</text> </paragraph></subsection><subsection id="H0CD6A27DBE7E4D3FAB7E5394AB1CCDC3"><enum>(d)</enum><header>Use of allocated funds</header><text>Funds allocated to an entity under subsection (c) may be used to pay up to 50 percent of the cost of establishing and carrying out an incentive program.</text> </subsection><subsection id="H424DFE62BF65401F8A12AE8413B419DF"><enum>(e)</enum><header>Fixture recycling</header><text>Entities are encouraged to promote or implement fixture recycling programs to manage the disposal of older fixtures replaced due to the incentive program under this section.</text> </subsection><subsection id="H855180ACB0C54D1DBBA38DC92FE5E442"><enum>(f)</enum><header>Issuance of incentives</header><text display-inline="yes-display-inline">Financial incentives may be provided to consumers that meet the requirements of the incentive program. The entity may issue all financial incentives directly to consumers or, with approval of the Administrator, delegate some or all financial incentives administration to other organizations including, but not limited to, local governments, municipal water authorities, and water utilities. The amount of a financial incentives shall be determined by the entity, taking into consideration—</text> <paragraph id="HC7540AAFA0B94FCCA9F41BEB8CC6661A"><enum>(1)</enum><text>the amount of the allocation to the entity under subsection (c);</text> </paragraph><paragraph id="H1114A6E369264134BC729DB1D9FD4CF6"><enum>(2)</enum><text>the amount of any Federal, State, or other organization’s tax or financial incentive available for the purchase of the residential water efficient product or service;</text> </paragraph><paragraph id="HFA8D88CD3CFF4233B805D04A7722A764"><enum>(3)</enum><text>the amount necessary to change consumer behavior to purchase water efficient products and services; and</text> </paragraph><paragraph id="H056714E1A4584EDC91D522685715CA8E"><enum>(4)</enum><text>the consumer expenditures for onsite preparation, assembly, and original installation of the product.</text> </paragraph></subsection><subsection id="HA20BD897022E4D4390FE178B5E0550FE"><enum>(g)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to the Administrator to carry out this section $50,000,000 for fiscal year 2010, $100,000,000 for fiscal year 2011, $150,000,000 for fiscal year 2012, $100,000,000 for fiscal year 2013, and $50,000,000 for fiscal year 2014.</text> </subsection></section><section id="H0F6248B29636462A85AC3F768C0F40AF" section-type="subsequent-section"><enum>218.</enum><header>Certified stoves program</header> <subsection id="H0978F822688D4A13A33ABC613B1FAA08"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H11EA92EA818C4A49A75D21F34774CC3A"><enum>(1)</enum><header>Agency</header><text display-inline="yes-display-inline">The term <term>Agency</term> means the Environmental Protection Agency.</text> </paragraph><paragraph id="H78E5F7CD06584F6697186F13A7F185B6"><enum>(2)</enum><header>Wood stove or pellet stove</header><text display-inline="yes-display-inline">The term <term>wood stove or pellet stove</term> means a wood stove, pellet stove, or fireplace insert that uses wood or pellets for fuel.</text> </paragraph><paragraph id="HAF7605A638D44B449EE3ECFD6FD82AAB"><enum>(3)</enum><header>Certified stove</header><text display-inline="yes-display-inline">The term <term>certified stove</term> means a wood stove or pellet stove that meets the standards of performance for new residential wood heaters under subpart AAA of part 60 of subchapter C of chapter I of title 40, Code of Federal Regulations (or successor regulations), as certified by the Administrator. Pellet stoves and fireplace inserts using pellets for fuel that are exempt from testing by the Administrator but meet the same standards of performance as wood stoves are considered certified for the purposes of this section.</text> </paragraph><paragraph id="H9FFEEDC194C141ECA0861D500909CF84"><enum>(4)</enum><header>Eligible entity</header><text display-inline="yes-display-inline">The term <term>eligible entity</term> means—</text> <subparagraph id="H7BB657143EA14FA5A3FBC9F557DFBCCE"><enum>(A)</enum><text>a State, a local government, or a federally recognized Indian tribe;</text> </subparagraph><subparagraph id="H3F525DD1AA624704B42B574A98E9FC9F"><enum>(B)</enum><text>Alaskan Native villages or regional or village corporations (as defined in, or established under, the Alaskan Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1601">43 U.S.C. 1601 et seq.</external-xref>)); and</text> </subparagraph><subparagraph id="H9EAE1AD6233D46469951A24BE4B59F50"><enum>(C)</enum><text>a nonprofit organization or institution that—</text> <clause id="H34571EAB2F0443AAA4D77072F5D49597"><enum>(i)</enum><text>represents or provides pollution reduction or educational services relating to wood smoke minimization to persons, organizations, or communities; or</text> </clause><clause id="H3BC5BB2D9E89498BA26D39878AF82783"><enum>(ii)</enum><text>has, as its principal purpose, the promotion of air quality or energy efficiency.</text> </clause></subparagraph></paragraph></subsection><subsection id="H478014CCA9EB46B29DDA6A0262D9A24A"><enum>(b)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Administrator shall establish and carry out a program to assist in the replacement of wood stoves or pellet stoves that do not meet the standards of performance referred to in subsection (a)(4) by—</text> <paragraph id="H08380E971A4B4B4994F49D3423B8B813"><enum>(1)</enum><text display-inline="yes-display-inline">requiring that each wood stove or pellet stove sold in the United States on and after the date of enactment of this Act meet the standards of performance referred to in subsection (a)(4);</text> </paragraph><paragraph id="H512712D9D523451C97AAC5C894742DEE"><enum>(2)</enum><text>requiring that no wood stove or pellet stove replaced under this program is sold or returned to active service, but that it is instead destroyed and recycled to the maximum extent feasible;</text> </paragraph><paragraph id="HF42DD41F1FFB4C0A93EE9F9605961982"><enum>(3)</enum><text>providing funds to an eligible entity to replace a wood stove or pellet stove that does not meet the standards of performance in subsection (a)(4) with a certified stove, including funds to pay for—</text> <subparagraph id="HE5CE39A3BD5542B6A61ECB9E895667C0"><enum>(A)</enum><text>installation of a replacement certified stove; and</text> </subparagraph><subparagraph id="H7F9F61A0CEDF4DEA8C19DD9F6BEAAE0E"><enum>(B)</enum><text>necessary replacement of or repairs to ventilation, flues, chimneys, or other relevant items necessary for safe installation of a replacement certified stove;</text> </subparagraph></paragraph><paragraph id="H71DB6CF27FBF4D7E924FDD397BD5054F"><enum>(4)</enum><text>in addition to any funds that may be appropriated for the program under this subsection, using existing Federal, State, and local programs and incentives, to the greatest extent practicable;</text> </paragraph><paragraph id="H9A141A627BB947589872AE17DBFAA59A"><enum>(5)</enum><text>prioritizing the replacement of wood stoves or pellet stoves manufactured before July 1, 1990; and</text> </paragraph><paragraph id="H053E969369D74CDAA5CCE682A1BD1101"><enum>(6)</enum><text display-inline="yes-display-inline">carrying out such other activities as the Administrator determines appropriate to facilitate the replacement of wood stoves or pellet stoves that do not meet the standards of performance referred to in subsection (a)(3).</text> </paragraph></subsection><subsection id="H6D543DA6CB9548A0B5EE9EAB239E4425"><enum>(c)</enum><header>Regulations</header><text>The Administrator may promulgate such regulations as are necessary to carry out the program established under subsection (b).</text> </subsection><subsection id="H65B3B6A1653C445F89965669BC381983"><enum>(d)</enum><header>Funding</header> <paragraph id="H794B57638543451593C7848B8179A602"><enum>(1)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out the program under this section $20,000,000 for the period of fiscal years 2010 through 2014.</text> </paragraph><paragraph id="HF70F2CDDD74347FC83E859DD87FE63D1"><enum>(2)</enum><header>Designated use</header><text>Of amounts appropriated pursuant to this subsection—</text> <subparagraph id="HC5EA52C18A7041BA979E73EF7A4F93FE"><enum>(A)</enum><text>25 percent shall be designated for use to carry out the program under this section on lands held in trust for the benefit of a federally recognized Indian tribe;</text> </subparagraph><subparagraph id="H6CB36D57890E4A029152EFF9A1D49673"><enum>(B)</enum><text>3 percent shall be designated for use to carry out the program under this section in Alaskan Native villages or regional or village corporations (as defined in, or established under, the Alaskan Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1601">43 U.S.C. 1601 et seq.</external-xref>)); and</text> </subparagraph><subparagraph id="HD3A961DBF3A5456398B86DF06DAFAC19"><enum>(C)</enum><text>72 percent shall be designated for use to carry out the program under this section nationwide.</text> </subparagraph></paragraph><paragraph id="H3A61FD87FE5F42D7B3167B6FA7711C7D"><enum>(3)</enum><header>Regulatory Programs</header> <subparagraph id="H53A470A1C4024EE7BB93A124897C9E5C"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">No grant or loan provided under this section shall be used to fund the costs of emissions reductions that are mandated under Federal, State, or local law.</text> </subparagraph><subparagraph id="H9268E1B821B5442FA4DC2FD3C7A1AC2B"><enum>(B)</enum><header>Mandated</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), voluntary or elective emission reduction measures shall not be considered “mandated”, regardless of whether the reductions are included in the implementation plan of a State.</text> </subparagraph></paragraph></subsection><subsection id="H276B0A2D0071421FAE6F97ECF17DB0F0"><enum>(e)</enum><header>EPA Authority to accept wood stove or pellet stove replacement Supplemental Environmental Projects</header> <paragraph id="HC471D64B2D1945F1BE2FA1FFEA694AF5"><enum>(1)</enum><header>In general</header><text>The Administrator may accept (notwithstanding sections <external-xref legal-doc="usc" parsable-cite="usc/31/3302">3302</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/31/1301">1301</external-xref> of title 31, United States Code) wood stove or pellet stove replacement Supplemental Environmental Projects if such projects, as part of a settlement of any alleged violation of environmental law—</text> <subparagraph id="H23A8C3B15B98442FA845A6D0BA62703F"><enum>(A)</enum><text>protect human health or the environment;</text> </subparagraph><subparagraph id="H9E8BFD8EB66940E397095F608BCB5022"><enum>(B)</enum><text>are related to the underlying alleged violation;</text> </subparagraph><subparagraph id="H8BDDCAC184014ADA9DF1FD6D795C5397"><enum>(C)</enum><text>do not constitute activities that the defendant would otherwise be legally required to perform; and</text> </subparagraph><subparagraph id="HC64703707C75492B9537D611652C3170"><enum>(D)</enum><text>do not provide funds for the staff of the Agency or for contractors to carry out the Agency’s internal operations.</text> </subparagraph></paragraph><paragraph id="H86809A06E38843768E3E51DF898F22F7"><enum>(2)</enum><header>Certification</header><text>In any settlement agreement regarding an alleged violation of environmental law in which a defendant agrees to perform a wood stove or pellet stove replacement Supplemental Environmental Project, the Administrator shall require the defendant to include in the settlement documents a certification under penalty of law that the defendant would have agreed to perform a comparably valued, alternative project other than a wood stove or pellet stove replacement Supplemental Environmental Project if the Administrator were precluded by law from accepting a wood stove or pellet stove replacement Supplemental Environmental Project. A failure by the Administrator to include this language in such a settlement agreement shall not create a cause of action against the United States under the Clean Air Act or any other law or create a basis for overturning a settlement agreement entered into by the United States.</text> </paragraph></subsection></section><section id="H683FCB2D73194FF3A52F59E3C0C84324"><enum>219.</enum><header>Energy Star standards</header> <subsection id="H7505D90F8DBD41D9AD63133616F18337"><enum>(a)</enum><header>Energy Star</header><text display-inline="yes-display-inline">Section 324A(c) of the Energy Policy and Conservation Act is amended—</text> <paragraph id="H7A0741A7010B4DEE9F0C4E8636D24633"><enum>(1)</enum><text>in paragraph (6)(B), by striking <quote>and</quote> after the semicolon at the end;</text> </paragraph><paragraph id="H58CC38229B99415A9336D5EED6A55FF5"><enum>(2)</enum><text>in paragraph (7), by striking the period at the end and inserting a semicolon; and</text> </paragraph><paragraph id="H4EE7659986CB42C4B6B900F5D70CBD86"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H4D225EC83B9B470EBC1F363CF83B6377" style="OLC"> <paragraph id="HE6730D39085A412594E5E1E55468D4EF"><enum>(8)</enum><text display-inline="yes-display-inline">not later than 18 months after the date of enactment of this paragraph, establish and implement a rating system for products identified as Energy Star products pursuant to this section to provide consumers with the most helpful information on the relative energy efficiency, including cost effectiveness from the consumer's perspective, and relative length of time for consumers to recover costs attributable to the energy efficient features, of those products, unless the Administrator and the Secretary communicate to Congress that establishing such a system would diminish the value of the Energy Star brand to consumers;</text> </paragraph><paragraph id="H0208D482E82C42588AD7770F7A6443E7"><enum>(9)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H420742483F2943669929640B01D2071A"><enum>(A)</enum><text display-inline="yes-display-inline">review the Energy Star product criteria for the 10 product models in each product category with the greatest energy consumption at least once every 3 years; and</text> </subparagraph><subparagraph id="H3940DBCD05364C61AD702564850A305F" indent="up1"><enum>(B)</enum><text>based on the review, update and publish the Energy Star product criteria for each such category, as necessary; and</text> </subparagraph></paragraph><paragraph id="H3C52F79B27ED4B33AB1CA5B26AB12448"><enum>(10)</enum><text display-inline="yes-display-inline">require periodic verification of compliance with the Energy Star product criteria by products identified as Energy Star products pursuant to this section, including—</text> <subparagraph id="H84D531B24508434A8CFD5BC93E588536"><enum>(A)</enum><text>purchase and testing of products from the market; or</text> </subparagraph><subparagraph id="HE1C17B1C4CC0450B83AF4D7B62B0CB70"><enum>(B)</enum><text>other appropriate testing and compliance approaches.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H979A048401FD49B4AE5DA8EA23DA685D"><enum>(b)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to carry out the amendments made by this section $5,000,000 for fiscal year 2010 and for each fiscal year thereafter.</text> </subsection></section></subtitle><subtitle id="HF2E77ADFBFF2442F9DAFA41C6AF045F6"><enum>C</enum><header>Transportation Efficiency</header> <section id="H2A89B15B462F4AA18EE851AA95C24973"><enum>221.</enum><header>Emissions standards</header><text display-inline="no-display-inline">Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by inserting after part A the following new part:</text> <quoted-block id="H1E5EC51B8B914BEAAF1152943C09852F" style="OLC"> <part id="H2D7BC37EFD7440998765241B59C9D624"><enum>B</enum><header>Mobile Sources</header> <section id="HF8D638A6A17B46449304E498DF2CFD6C"><enum>821.</enum><header>Greenhouse gas emission standards for mobile sources</header> <subsection id="H7E34739C6F7543CE88040B5DCA59808D"><enum>(a)</enum><header>New motor vehicles and new motor vehicle engines</header><paragraph commented="no" display-inline="yes-display-inline" id="H1E41B6D9862A4C58832814533EBC3ED4"><enum>(1)</enum><text>Pursuant to section 202(a)(1), by December 31, 2010, the Administrator shall promulgate standards applicable to emissions of greenhouse gases from new heavy-duty motor vehicles or new heavy-duty motor vehicle engines, excluding such motor vehicles covered by the Tier II standards (as established by the Administrator as of the date of the enactment of this section). The Administrator may revise these standards from time to time.</text> </paragraph><paragraph id="HD24CB8D29DB8418396435FE6DCA00613" indent="up1"><enum>(2)</enum><text>Regulations issued under section 202(a)(1) applicable to emissions of greenhouse gases from new heavy-duty motor vehicles or new heavy-duty motor vehicle engines, excluding such motor vehicles covered by the Tier II standards (as established by the Administrator as of the date of the enactment of this section), shall contain standards that reflect the greatest degree of emissions reduction achievable through the application of technology which the Administrator determines will be available for the model year to which such standards apply, giving appropriate consideration to cost, energy, and safety factors associated with the application of such technology. Any such regulations shall take effect after such period as the Administrator finds necessary to permit the development and application of the requisite technology, and, at a minimum, shall apply for a period no less than 3 model years beginning no earlier than the model year commencing 4 years after such regulations are promulgated.</text> </paragraph><paragraph id="H42BA383E1AFB47FABD80F7A8A37EB074" indent="up1"><enum>(3)</enum><text>Regulations issued under section 202(a)(1) applicable to emissions of greenhouse gases from new heavy-duty motor vehicles or new heavy-duty motor vehicle engines, excluding such motor vehicles covered by the Tier II standards (as established by the Administrator as of the date of the enactment of this section), shall supersede and satisfy any and all of the rulemaking and compliance requirements of <external-xref legal-doc="usc" parsable-cite="usc/49/32902">section 32902(k)</external-xref> of title 49, United States Code.</text> </paragraph><paragraph id="H25FB6D8C3C054480863187C68FBBBD00" indent="up1"><enum>(4)</enum><text>Other than as specifically set forth in paragraph (3) of this subsection, nothing in this section shall affect or otherwise increase or diminish the authority of the Secretary of Transportation to adopt regulations to improve the overall fuel efficiency of the commercial goods movement system.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H3683CA79D208403B898C2F28FEF99068"><enum>(b)</enum><header>Nonroad vehicles and engines</header><paragraph commented="no" display-inline="yes-display-inline" id="H30D3A12D1995475D910DA25E45E4E33F"><enum>(1)</enum><text display-inline="yes-display-inline">Pursuant to section 213(a)(4) and (5), the Administrator shall identify those classes or categories of new nonroad vehicles or engines, or combinations of such classes or categories, that, in the judgment of the Administrator, both contribute significantly to the total emissions of greenhouse gases from nonroad engines and vehicles, and provide the greatest potential for significant and cost-effective reductions in emissions of greenhouse gases. The Administrator shall promulgate standards applicable to emissions of greenhouse gases from these new nonroad engines or vehicles by December 31, 2012. The Administrator shall also promulgate standards applicable to emissions of greenhouse gases for such other classes and categories of new nonroad vehicles and engines as the Administrator determines appropriate and in the timeframe the Administrator determines appropriate. The Administrator shall base such determination, among other factors, on the relative contribution of greenhouse gas emissions, and the costs for achieving reductions, from such classes or categories of new nonroad engines and vehicles. The Administrator may revise these standards from time to time.</text> </paragraph><paragraph id="HEA056B27A6CA4102AD085950D0BFF627" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Standards under section 213(a)(4) and (5) applicable to emissions of greenhouse gases from those classes or categories of new nonroad engines or vehicles identified in the first sentence of paragraph (1) of this subsection, shall achieve the greatest degree of emissions reduction achievable based on the application of technology which the Administrator determines will be available at the time such standards take effect, taking into consideration cost, energy, and safety factors associated with the application of such technology. Any such regulations shall take effect at the earliest possible date after such period as the Administrator finds necessary to permit the development and application of the requisite technology, giving appropriate consideration to the cost of compliance within such period, the applicable compliance dates for other standards, and other appropriate factors, including the period of time appropriate for the transfer of applicable technology from other applications, including motor vehicles, and the period of time in which previously promulgated regulations have been in effect.</text> </paragraph><paragraph id="H2E377DB6D50F411AB5FDE3FCF8CC8370" indent="up1"><enum>(3)</enum><text>For purposes of this section and standards under section 213(a)(4) or (5) applicable to emissions of greenhouse gases, the term ‘nonroad engines and vehicles’ shall include non-internal combustion engines and the vehicles these engines power (such as electric engines and electric vehicles), for those non-internal combustion engines and vehicles which would be in the same category and have the same uses as nonroad engines and vehicles that are powered by internal combustion engines.</text> </paragraph></subsection><subsection id="HC27B52B9844F4D708726C3C53AED7B54"><enum>(c)</enum><header>Averaging, banking, and trading of emissions credits</header><text>In establishing standards applicable to emissions of greenhouse gases pursuant to this section and sections 202(a), 213(a)(4) and (5), and 231(a), the Administrator may establish provisions for averaging, banking, and trading of greenhouse gas emissions credits within or across classes or categories of motor vehicles and motor vehicle engines, nonroad vehicles and engines (including marine vessels), and aircraft and aircraft engines, to the extent the Administrator determines appropriate and considering the factors appropriate in setting standards under those sections. Such provisions may include reasonable and appropriate provisions concerning generation, banking, trading, duration, and use of credits.</text> </subsection><subsection id="H1BBF281D85274AF4AC61D9230289DB91"><enum>(d)</enum><header>Reports</header><text>The Administrator shall, from time to time, submit a report to Congress that projects the amount of greenhouse gas emissions from the transportation sector, including transportation fuels, for the years 2030 and 2050, based on the standards adopted under this section.</text> </subsection><subsection id="HD3F579D7C78B403CB9A877D9DDE3E229"><enum>(e)</enum><header>Greenhouse gases</header><text>Notwithstanding the provisions of section 711, hydrofluorocarbons shall be considered a greenhouse gas for purposes of this section.</text> </subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H8A65E55BDC46478A898593B2A8202F5A"><enum>222.</enum><header>Greenhouse gas emissions reductions through transportation efficiency</header> <subsection id="HFB9766EFD680488B901AB0D780C85780"><enum>(a)</enum><header>Environmental protection agency</header><text>Title VIII of the Clean Air Act, as added by section 331 of this Act, is further amended by inserting after part C the following new part:</text> <quoted-block display-inline="no-display-inline" id="H0826C924223F4685B3F9E8AB6C7A8792" style="OLC"> <part id="H9B2E02C2A1204B778A7ABE75B50DA39A"><enum>D</enum><header>Transportation Emissions</header> <section id="HF135D0BA75584DE497146AEDE601AC04"><enum>841.</enum><header>Greenhouse gas emissions reductions through transportation efficiency</header> <subsection id="HC1F51F7E50304C71A8ECD2170D9687EA"><enum>(a)</enum><header>In general</header><text>The Administrator, in consultation with the Secretary of Transportation, shall promulgate, and update from time to time, regulations to establish national transportation-related greenhouse gas emissions reduction goals, standardized models and methodologies for use in developing surface transportation-related greenhouse gas emissions reduction targets pursuant to sections <external-xref legal-doc="usc" parsable-cite="usc/23/134">134</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/23/135">135</external-xref> of title 23 of the United States Code and methods for collection of data on transportation-related greenhouse gas emissions. Such goals shall be commensurate with the emissions reductions goals established under the American Clean Energy and Security Act of 2009. In establishing such goals, models, and methodologies, the Administrator shall consult with States and metropolitan planning organizations and may utilize existing models and methodologies.</text> </subsection><subsection id="H22EA8231DF734DFD8F2C5B912A34F3FF"><enum>(b)</enum><header>Timing</header><text>The Administrator shall—</text> <paragraph id="H5D372A7B11A846E983BDB030EA20971B"><enum>(1)</enum><text>publish proposed regulations under subsection (a) not later than 12 months after the date of enactment of this section; and</text> </paragraph><paragraph id="H35FB16D6B89E46FA99DBBFFB3E6FD64A"><enum>(2)</enum><text>promulgate final regulations under subsection (a) not later than 18 months after the date of enactment of this section.</text> </paragraph></subsection><subsection id="HB1D2A914A7394FD4B6CCA4CF70501E1F"><enum>(c)</enum><header>Assessment</header><text>At least every 6 years after promulgating final regulations under subsection (a), the Administrator, jointly with the Secretary of Transportation, shall assess current and projected progress in reducing national transportation-related greenhouse gas emissions. The assessment shall examine the contributions to emissions reductions attributable to improvements in vehicle efficiency, greenhouse gas performance of transportation fuels, increased efficiency in utilizing transportation systems and the effects of local and State planning.</text> </subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HB9BF06E0B9B7489ABB1280FCFBAC9BB2"><enum>(b)</enum><header>Metropolitan planning organizations</header><text><external-xref legal-doc="usc" parsable-cite="usc/23/134">Section 134</external-xref> of title 23 of the United States Code is amended as follows:</text> <paragraph id="HC16C2E8A66264E56BCA15F1A041B365E"><enum>(1)</enum><text>In subsection (a)(1)—</text> <subparagraph id="HA7FB86BD305A4B7285A01FB12FECE74F"><enum>(A)</enum><text>by striking <quote>minimizing</quote> and inserting <quote>reducing</quote>; and</text> </subparagraph><subparagraph id="H7A6FB80202EB4A38BDA4C41DD39800B9"><enum>(B)</enum><text>by inserting <quote>, reliance on oil, impacts on the environment, transportation-related greenhouse gas emissions</quote> after <quote>consumption</quote>.</text> </subparagraph></paragraph><paragraph id="HAA57FD05A881445ABF5AF8E2FE7A3E7D"><enum>(2)</enum><text>In subsection (h)(1)(E)—</text> <subparagraph id="H8BD9814044104962B195DDC84AE3FD4E"><enum>(A)</enum><text>by inserting <quote>sustainability and livability, reduce surface transportation-related greenhouse gas emissions and reliance on oil, adapt to the effects of climate change,</quote> after <quote>energy conservation</quote>;</text> </subparagraph><subparagraph id="H531E3A6AA42C44959A9DF700991FFFD8"><enum>(B)</enum><text>by inserting <quote>and public health</quote> after <quote>quality of life</quote>; and</text> </subparagraph><subparagraph id="H5B1410DAF86B41BFA366CAB47E05C781"><enum>(C)</enum><text>by inserting <quote>, including housing and land use patterns</quote> after <quote>development patterns</quote>.</text> </subparagraph></paragraph><paragraph id="HBC29143087254A25B198F7B090F8D99B"><enum>(3)</enum><text>In subsection (i)(4)(A) by inserting <quote>air quality, public health, housing, transportation,</quote> after <quote>conservation,</quote>.</text> </paragraph><paragraph id="H0F97CB4CCFE448A8B0D4B780A2D3D675"><enum>(4)</enum><text>In subsection (k) by inserting at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HD5B7394012F444949D3661CC6B419A48" style="OLC"> <paragraph id="H1A720504C22C43AFA519C4549E0DE6E6"><enum>(6)</enum><header>Emissions reduction process</header><text></text> <subparagraph id="H9172AAADE6AB478C9E838003C4540F9A"><enum>(A)</enum><header>In general</header><text>Within a metropolitan planning area serving a transportation management area, the transportation planning process under this section shall address transportation-related greenhouse gas emissions by including emission reduction targets and strategies.</text> </subparagraph><subparagraph id="H59E90DE9E70044ACB60D24F21A7A3017"><enum>(B)</enum><header>Establishment of emissions reduction targets and strategies</header><text></text> <clause id="H183FCC7FE8654808B1496941BEA524FD"><enum>(i)</enum><header>In general</header><text>Not later than 1 year after the promulgation of the final regulations required under section 841 of the Clean Air Act, each metropolitan planning organization shall develop surface transportation-related greenhouse gas emission reduction targets, as well as strategies to meet such targets, as part of the transportation planning process under this section. If more than one metropolitan planning organization has been designated within a metropolitan planning area serving a transportation management area, each such metropolitan planning organization shall work cooperatively with other such organization to develop the surface transportation-related greenhouse gas emission reduction targets required under this subparagraph.</text> </clause><clause id="HA4983F9C5E6D4D2BB2B7DEB82956238F"><enum>(ii)</enum><header>Minimum requirements</header><text>Each metropolitan planning organization that develops targets and strategies required under clause (i) shall demonstrate progress in stabilizing and reducing transportation-related greenhouse gas emissions in each metropolitan planning area serving a surface transportation management area. The targets and strategies shall, at a minimum—</text> <subclause id="HE88ADA4D35834D6A8BCE1CEBFFAF818B"><enum>(I)</enum><text>be based on the models and methodologies established in the final regulations required under section 841 of the Clean Air Act;</text> </subclause><subclause id="HF61894A1A8AB4EA792CAF8757C3AD214"><enum>(II)</enum><text>address sources of surface transportation-related greenhouse gas emissions and contribute to achievement of the national transportation-related greenhouse gas emissions reduction goals;</text> </subclause><subclause id="HCFF4FCA0CB354B1AAC033B703D68D96C"><enum>(III)</enum><text>include efforts to increase public transportation ridership; and</text> </subclause><subclause id="H2890FCCB67BC4C7696F0688DD3A4AC07"><enum>(IV)</enum><text>include efforts to increase walking, bicycling, and other forms of nonmotorized transportation.</text> </subclause></clause></subparagraph><subparagraph id="H3C07607074D346F39C7C4EDAA32E413F"><enum>(C)</enum><header>Public notice</header><text>Each metropolitan planning organization shall make its emission reduction targets and strategies, and an analysis of the anticipated effects thereof, available to the public through its Web site.</text> </subparagraph><subparagraph id="HC97370C7329B4C058BC3062F8687475A"><enum>(D)</enum><header>Enforcement</header><text>If the Secretary finds that a metropolitan planning organization has failed to develop, submit or publish its emission reduction targets and strategies, the Secretary shall not certify that the requirements of this section are met with respect to the metropolitan planning process of such organization.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HB8D53AEFB3DF40CA84EEDD2944CC5ACD"><enum>(c)</enum><header>States</header><text><external-xref legal-doc="usc" parsable-cite="usc/23/135">Section 135</external-xref> of title 23 of the United States Code is amended as follows:</text> <paragraph id="H413E5B8AB23A4942B6529D6D56A73A02"><enum>(1)</enum><text>In subsection (d)(1)(E)—</text> <subparagraph id="H2CEAC0BF9AF54AF2A6943C10BF23026D"><enum>(A)</enum><text>by inserting <quote>sustainability and livability, reduce surface transportation-related greenhouse gas emissions and reliance on oil, adapt to the effects of climate change,</quote> after <quote>energy conservation</quote>;</text> </subparagraph><subparagraph id="HE34384386FE24C888275F71856A00FA6"><enum>(B)</enum><text>by inserting <quote>and public health</quote> after <quote>quality of life</quote>; and</text> </subparagraph><subparagraph id="H8BAAA0169B4C4BE195ADA65B759C33B2"><enum>(C)</enum><text>by inserting <quote>, including housing and land use patterns</quote> after <quote>development patterns</quote>.</text> </subparagraph></paragraph><paragraph id="HEE305EA37E404B4FB565803A32B94EF5"><enum>(2)</enum><text>In subsection (f)(2)(D)(i) by inserting <quote>air quality, public health, housing, transportation,</quote> after <quote>conservation,</quote>.</text> </paragraph><paragraph id="H59A3E85D09684A1FBDDA3B9336EDFA0D"><enum>(3)</enum><text>In subsection (f) by inserting at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HFAB7875698DA4A5BAD6B4A3905DF3204" style="OLC"> <paragraph id="H98CFD4AA623D48FF925E19E5C5B4B3B2"><enum>(9)</enum><header>Emissions reduction process</header><text></text> <subparagraph id="HE2D0041439BE4C9C807540326CE9889D"><enum>(A)</enum><header>In general</header><text>Within a State, the transportation planning process under this section shall address transportation-related greenhouse gas emissions by including emission reduction targets and strategies.</text> </subparagraph><subparagraph id="H2BD2FB027E12468EAF5AE2FA05501FC2"><enum>(B)</enum><header>Establishment of emissions reduction targets and strategies</header> <clause id="HCABF770B11F4408AB2EEE3EC6DCC8784"><enum>(i)</enum><header>In general</header><text>Not later than 1 year after the promulgation of the final regulations required under section 841 of the Clean Air Act, each State shall develop surface transportation-related greenhouse gas emission reduction targets, as well as strategies to meet such targets, as part of the transportation planning process under this section.</text> </clause><clause id="H47F626C756D64979A4B582F406CA48EB"><enum>(ii)</enum><header>Minimum requirements</header><text>Each State that develops targets and strategies required under clause (i) shall demonstrate progress in stabilizing and reducing transportation-related greenhouse gas emissions in such State. The targets and strategies shall, at a minimum—</text> <subclause id="H06734B462F5F46F6A1F579BF1D90C20E"><enum>(I)</enum><text>be based on the models and methodologies established in the final regulations required under section 841 of the Clean Air Act;</text> </subclause><subclause id="H118CDCAA54014ABD9394D9EB3A0E7F50"><enum>(II)</enum><text>address sources of surface transportation-related greenhouse gas emissions and contribute to achievement of the national transportation-related greenhouse gas emissions reduction goals;</text> </subclause><subclause id="HAC2D901A090247BE8ED83FD6D5E18F1B"><enum>(III)</enum><text>include efforts to increase public transportation ridership; and</text> </subclause><subclause id="H66A2782D82F5492AB99D10DB24096BF4"><enum>(IV)</enum><text>include efforts to increase walking, bicycling, and other forms of nonmotorized transportation.</text> </subclause></clause></subparagraph><subparagraph id="HAA284CA3C1CA4CC2B8884B93959277F3"><enum>(D)</enum><header>Public notice</header><text>Each State shall make its emission reduction targets and strategies, and an analysis of the anticipated effects thereof, available to the public through its Web site.</text> </subparagraph><subparagraph id="HB575A67D7AC4473FBC5177F2C0048987"><enum>(E)</enum><header>Enforcement</header><text>If the Secretary finds that a State has failed to develop, submit or publish its emission reduction targets and strategies, the Secretary shall not certify that the requirements of this section are met with respect to the statewide planning process of such State.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H47A2220B09374D488F502B6BAD9F484E"><enum>(d)</enum><header>Department of transportation</header><text>The Secretary of Transportation shall establish appropriate requirements, including performance measures, to ensure that transportation plans developed under sections <external-xref legal-doc="usc" parsable-cite="usc/23/134">134</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/23/135">135</external-xref> of title 23 of the United States Code sufficiently meet the requirements of this section, including achieving progress towards national transportation-related greenhouse gas emissions reduction goals.</text> </subsection></section><section id="H8C5F117273D14A9181C8C1E59EDA64F4"><enum>223.</enum><header>SmartWay transportation efficiency program</header><text display-inline="no-display-inline">Part B of title VIII of the Clean Air Act, as added by section 221 of this Act is amended by adding after section 821 the following section:</text> <quoted-block id="H4A3B57AB84EF486A880535C020FFDE97"> <section id="H97C522F497244A3EB247357D704488F2"><enum>822.</enum><header>SmartWay transportation efficiency program</header> <subsection id="H294D4E020F8D4837A66A8B63FC607024"><enum>(a)</enum><header>In general</header><text>There is established within the Environmental Protection Agency a SmartWay Transport Program to quantify, demonstrate, and promote the benefits of technologies, products, fuels, and operational strategies that reduce petroleum consumption, air pollution, and greenhouse gas emissions from the mobile source sector.</text> </subsection><subsection id="H3BF2095CCD8A46D19378B98B414794C3"><enum>(b)</enum><header>General duties</header><text>Under the program established under this section, the Administrator shall carry out each of the following:</text> <paragraph id="HB955BB0DF0E846CE860112648EC85F37"><enum>(1)</enum><text display-inline="yes-display-inline">Development of measurement protocols to evaluate the energy consumption and greenhouse gas impacts from technologies and strategies in the mobile source sector, including those for passenger transport and goods movement.</text> </paragraph><paragraph id="H4AEAFA2FF45143DAB2A336F50D62ADD4"><enum>(2)</enum><text display-inline="yes-display-inline">Development of qualifying thresholds for certifying, verifying, or designating energy-efficient, low-greenhouse gas SmartWay technologies and strategies for each mode of passenger transportation and goods movement.</text> </paragraph><paragraph id="H7EBC79694146487A9B09B0E759E367FE"><enum>(3)</enum><text display-inline="yes-display-inline">Development of partnership and recognition programs to promote best practices and drive demand for energy-efficient, low-greenhouse gas transportation performance.</text> </paragraph><paragraph id="H27876781ECAD4AE19BFCDEE277483ABC"><enum>(4)</enum><text>Promotion of the availability of, and encouragement of the adoption of, SmartWay certified or verified technologies and strategies, and publication of the availability of financial incentives, such as assistance from loan programs and other Federal and State incentives.</text> </paragraph></subsection><subsection id="HFD6DD469659B4B0B9784C4A5FE5D8939"><enum>(c)</enum><header>Smartway transport freight partnership</header><text display-inline="yes-display-inline">The Administrator shall establish a SmartWay Transport Freight Partnership program with shippers and carriers of goods to promote energy-efficient, low-greenhouse gas transportation. In carrying out such partnership, the Administrator shall undertake each of the following:</text> <paragraph id="HE0B841C712DF47EA9126E07906F1F75E"><enum>(1)</enum><text display-inline="yes-display-inline">Certification of the energy and greenhouse gas performance of participating freight carriers, including those operating rail, trucking, marine, and other goods movement operations.</text> </paragraph><paragraph id="H1C3016BF0FAD46E09576E718C3B37E1E"><enum>(2)</enum><text display-inline="yes-display-inline">Publication of a comprehensive energy and greenhouse gas performance index of freight modes (including rail, trucking, marine, and other modes of transporting goods) and individual freight companies so that shippers can choose to deliver their goods more efficiently.</text> </paragraph><paragraph id="H4D289D997FAB459E9E0E48061992BA66"><enum>(3)</enum><text>Development of tools for—</text> <subparagraph id="HC051CA1544F543A6ACE5CC539B8C6D86"><enum>(A)</enum><text display-inline="yes-display-inline">carriers to calculate their energy and greenhouse gas performance; and</text> </subparagraph><subparagraph id="H04C19161D1B64E81B1B36277549794DF"><enum>(B)</enum><text display-inline="yes-display-inline">shippers to calculate the energy and greenhouse gas impacts of moving their products and to evaluate the relative impacts from transporting their goods by different modes and corporate carriers.</text> </subparagraph></paragraph><paragraph id="HC4814ACA96E64919BA571491EF880CA2"><enum>(4)</enum><text display-inline="yes-display-inline">Provision of recognition opportunities for participating shipper and carrier companies demonstrating advanced practices and achieving superior levels of greenhouse gas performance.</text> </paragraph></subsection><subsection id="H0C809E4210E347F9B130CE7A1963B383"><enum>(d)</enum><header>Improving freight greenhouse gas performance databases</header><text display-inline="yes-display-inline">The Administrator shall, in coordination with other appropriate agencies, define and collect data on the physical and operational characteristics of the Nation’s truck population, with special emphasis on data related to energy efficiency and greenhouse gas performance to inform the performance index published under subsection (c)(2) of this section, and other means of goods transport as necessary, at least every 5 years.</text> </subsection><subsection id="HB361D10CBD664C12B9C2D176F940E593"><enum>(e)</enum><header>Establishment of financing program</header><text>The Administrator shall establish a SmartWay Financing Program to competitively award funding to eligible entities identified by the Administrator in accordance with the program requirements in subsection (g).</text> </subsection><subsection id="HFD9BEBA11719457D8FD6E379FD19510A"><enum>(f)</enum><header>Purpose</header><text>Under the SmartWay Financing Program, eligible entities shall—</text> <paragraph id="HA03D24E6AA47460FB01A6046DD1E40B3"><enum>(1)</enum><text>use funds awarded by the Administrator to provide flexible loan and lease terms that increase approval rates or lower the costs of loans and leases in accordance with guidance developed by the Administrator; and</text> </paragraph><paragraph id="HA24D3B65E6E041038DACE8FC07B3ED11"><enum>(2)</enum><text display-inline="yes-display-inline">make such loans and leases available to public and private entities for the purpose of adopting low-greenhouse gas technologies or strategies for the mobile source sector that are designated by the Administrator.</text> </paragraph></subsection><subsection id="H7E041850E7D1426C871C527C63EBAEC3"><enum>(g)</enum><header>Program requirements</header><text>The Administrator shall determine program design elements and requirements, including—</text> <paragraph id="HCCAB7085F7E349A689C92DA04034CA3C"><enum>(1)</enum><text>the type of financial mechanism with which to award funding, in the form of grants or contracts;</text> </paragraph><paragraph id="H75313689E79243AC86366BFF4FF552EF"><enum>(2)</enum><text>the designation of eligible entities to receive funding, including State, tribal, and local governments, regional organizations comprised of governmental units, nonprofit organizations, or for-profit companies;</text> </paragraph><paragraph id="H8AC9480CB714478B9A74B88164C61FF2"><enum>(3)</enum><text>criteria for evaluating applications from eligible entities, including anticipated—</text> <subparagraph id="H96322E9B7515473A9BB07F469E07C7A0"><enum>(A)</enum><text display-inline="yes-display-inline">cost-effectiveness of loan or lease program on a metric-ton-of-greenhouse gas-saved-per-dollar basis;</text> </subparagraph><subparagraph id="H7B51E5B1940D4A1CA22720EB12BC743A"><enum>(B)</enum><text>ability to promote the loan or lease program and associated technologies and strategies to the target audience; and</text> </subparagraph></paragraph><paragraph id="H8ED859BD922C452AAA313E1E99E516EE"><enum>(4)</enum><text>reporting requirements for entities that receive awards, including—</text> <subparagraph id="HC129E6A6DADF423CB4F0AAFD77E51047"><enum>(A)</enum><text display-inline="yes-display-inline">actual cost-effectiveness and greenhouse gas savings from the loan or lease program based on a methodology designated by the Administrator;</text> </subparagraph><subparagraph id="H8E0EA6623273423897E60CCF2439FFD9"><enum>(B)</enum><text>the total number of applications and number of approved applications; and</text> </subparagraph><subparagraph id="H86877FB446C14415960359054768E08E"><enum>(C)</enum><text>terms granted to loan and lease recipients compared to prevailing market practices.</text> </subparagraph></paragraph></subsection><subsection id="HA18C8719FEBC4283A2C4058EA0D0619D"><enum>(h)</enum><header>Authorization of appropriations</header><text>Such sums as necessary are authorized to be appropriated to the Administrator to carry out this section.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section display-inline="no-display-inline" id="H3DE8E02C4A7D4F7283018EF2FCAFE6AE" section-type="subsequent-section"><enum>224.</enum><header>State vehicle fleets</header><text display-inline="no-display-inline">Section 507(o) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13257">42 U.S.C. 13257</external-xref>) is amended by adding the following new paragraph at the end thereof:</text> <quoted-block display-inline="no-display-inline" id="H41313564819F4B7B81FA621B93475D56" style="OLC"> <paragraph id="H4CAAFEBDD3DA47DE923FBE6777914003" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">The Secretary shall revise the rules under this subsection with respect to the types of alternative fueled vehicles required for compliance with this subsection to ensure those rules are consistent with any guidance issued pursuant to section 303 of this Act.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle><subtitle id="H3C9E8683926B4A01AD716B75EC8FC69B"><enum>D</enum><header>Industrial Energy Efficiency Programs</header> <section id="H4BA1E1A4335B443B92838D16C05A44DB"><enum>241.</enum><header>Industrial plant energy efficiency standards</header><text display-inline="no-display-inline">The Secretary of Energy shall continue to support the development of the American National Standards Institute (ANSI) voluntary industrial plant energy efficiency certification program, pending International Standards Organization (ISO) consensus standard 50001, and other related ANSI/ISO standards. In addition, the Department shall undertake complementary activities through the Department of Energy’s Industry Technologies Program that support the voluntary implementation of such standards by manufacturing firms. There are authorized to be appropriated to the Secretary such sums as are necessary to carry out these activities. The Secretary shall report to Congress on the status of standards development and plans for further standards development pursuant to this section by not later than 18 months after the date of enactment of this Act, and shall prepare a second such report 18 months thereafter.</text> </section><section id="H96775C3AC08A4D35BC7EC9927E68FEF0"><enum>242.</enum><header>Electric and thermal waste energy recovery award program</header> <subsection id="HB5D973ADF4C84183A25A99F0895D9B34"><enum>(a)</enum><header>Electric and thermal waste energy recovery awards</header><text>The Secretary of Energy shall establish a program to make monetary awards to the owners and operators of new and existing electric energy generation facilities or thermal energy production facilities using fossil or nuclear fuel, to encourage them to use innovative means of recovering any thermal energy that is a potentially useful byproduct of electric power generation or other processes to—</text> <paragraph id="HA552CB6CBBFF4F91989D2CA2E6170EEA"><enum>(1)</enum><text>generate additional electric energy; or</text> </paragraph><paragraph id="H075DEBE0460644799FE5E4AFFDDA28C7"><enum>(2)</enum><text>make sales of thermal energy not used for electric generation, in the form of steam, hot water, chilled water, or desiccant regeneration, or for other commercially valid purposes.</text> </paragraph></subsection><subsection id="HA23B7D10F9A4496BB755D1CE099F48E2"><enum>(b)</enum><header>Amount of awards</header> <paragraph id="H30583951DAD840FFB7A30768C6B12106"><enum>(1)</enum><header>Eligibility</header><text display-inline="yes-display-inline">Awards shall be made under subsection (a) only for the use of innovative means that achieve net energy efficiency at the facility concerned significantly greater than the current standard technology in use at similar facilities.</text> </paragraph><paragraph id="H5BECC3480D2E4A36A75701B0B44BBE0A"><enum>(2)</enum><header>Amount</header><text display-inline="yes-display-inline">The amount of an award made under subsection (a) shall equal an amount up to the value of 25 percent of the energy projected to be recovered or generated during the first 5 years of operation of the facility using the innovative energy recovery method, or such lesser amount that the Secretary determines to be the minimum amount that can cost-effectively stimulate such innovation.</text> </paragraph><paragraph id="H5C981C5E8C22406193E3A2EB1DB9A549"><enum>(3)</enum><header>Limitation</header><text>No person may receive an award under this section if a grant under the waste energy incentive grant program under section 373 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6343">42 U.S.C. 6343</external-xref>) is made for the same energy savings resulting from the same innovative method.</text> </paragraph></subsection><subsection id="H575EDA998B02461790277066FCB5FAB3"><enum>(c)</enum><header>Regulatory status</header><text>The Secretary of Energy shall—</text> <paragraph id="H212440181268428A893658478CE9B0A6"><enum>(1)</enum><text>assist State regulatory commissions to identify and make changes in State regulatory programs for electric utilities to provide appropriate regulatory status for thermal energy byproduct businesses of regulated electric utilities to encourage those utilities to enter businesses making the sales referred to in subsection (a)(2); and</text> </paragraph><paragraph id="H460E0991BF6A4A539BF648CE9E2361B6"><enum>(2)</enum><text>encourage self-regulated utilities to enter businesses making the sales referred to in subsection (a)(2).</text> </paragraph></subsection><subsection id="H0837A0D9DD5045018526193883AD8EC5"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Energy such sums as are necessary for the purposes of this section.</text> </subsection></section><section id="H3812F9BCC1D84C8DB2415A6F2B5B1D74"><enum>243.</enum><header>Clarifying election of waste heat recovery financial incentives</header><text display-inline="no-display-inline">Section 373(e) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6343">42 U.S.C. 6343(e)</external-xref>) is amended—</text> <paragraph id="H3F3BC5E86AC14FE5A2CA5A76A7602791"><enum>(1)</enum><text>by striking <quote>that qualifies for</quote> and inserting <quote>who elects to claim</quote>; and</text> </paragraph><paragraph id="HAACA3099880A47BE9B60912648F9816E"><enum>(2)</enum><text>by inserting <quote>from that project</quote> after <quote>for waste heat recovery</quote>.</text> </paragraph></section><section id="H3B7A14A4FB8948B7AE2033A6A0F3E3F5"><enum>244.</enum><header>Motor market assessment and commercial awareness program</header> <subsection id="HB37E5C2FABD343A3B0A24E202BC23F24"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text> <paragraph id="H503A36524B514B39BF33AF75F3473D3E"><enum>(1)</enum><text>electric motor systems account for about half of the electricity used in the United States;</text> </paragraph><paragraph id="HC105D294AF694850BB519A33376C74F0"><enum>(2)</enum><text>electric motor energy use is determined by both the efficiency of the motor and the system in which the motor operates;</text> </paragraph><paragraph id="H3E5893BC012C4203AD82CDC65B3FA469"><enum>(3)</enum><text>Federal Government research on motor end use and efficiency opportunities is more than a decade old; and</text> </paragraph><paragraph id="HD5F4319C70F441929818D96DB811F5C7"><enum>(4)</enum><text>the Census Bureau has discontinued collection of data on motor and generator importation, manufacture, shipment, and sales.</text> </paragraph></subsection><subsection id="H6E133B0C3C804F1A88508771A0DF3DD2"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HCDAA941B86274242ABF6EB07D3573E2E"><enum>(1)</enum><header>Department</header><text>The term <term>Department</term> means the Department of Energy.</text> </paragraph><paragraph id="H9DCEB820B4E64AEEBCA035AA62CC0582"><enum>(2)</enum><header>Interested parties</header><text>The term <term>interested parties</term> includes—</text> <subparagraph id="HBB1E2DA555FC4B7CA79DAA3F7E9DA013"><enum>(A)</enum><text>trade associations;</text> </subparagraph><subparagraph id="H33F43A518A404A8E9C417F13417AAFDB"><enum>(B)</enum><text>motor manufacturers;</text> </subparagraph><subparagraph id="H27FB1FB93B8048019384AA10060CC785"><enum>(C)</enum><text>motor end users;</text> </subparagraph><subparagraph id="H5F6EADC215264406AD4671E46D006FA2"><enum>(D)</enum><text>electric utilities; and</text> </subparagraph><subparagraph id="HE8E452BC206F4018B3869B8B790131C8"><enum>(E)</enum><text>individuals and entities that conduct energy efficiency programs.</text> </subparagraph></paragraph><paragraph id="HCF75CA76E5594528A42F86D7C81387F6"><enum>(3)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy, in consultation with interested parties.</text> </paragraph></subsection><subsection id="H0638EFBFA65C42EDB750A78FC87F224E"><enum>(c)</enum><header>Assessment</header><text>The Secretary shall conduct an assessment of electric motors and the electric motor market in the United States that shall—</text> <paragraph id="HE55934BCD42347929BFD3039AF8A9BED"><enum>(1)</enum><text>include important subsectors of the industrial and commercial electric motor market (as determined by the Secretary), including—</text> <subparagraph id="HAC9611FFF2054FB9BF564C54493B4E8A"><enum>(A)</enum><text>the stock of motors and motor-driven equipment;</text> </subparagraph><subparagraph id="H1671A537A23E4166B9556B6834526039"><enum>(B)</enum><text>efficiency categories of the motor population; and</text> </subparagraph><subparagraph id="H795DD8468FFF43A6BBB8511BD8CFE0DE"><enum>(C)</enum><text>motor systems that use drives, servos, and other control technologies;</text> </subparagraph></paragraph><paragraph id="H076690A491CD496A91EE1978A96D5DC0"><enum>(2)</enum><text>characterize and estimate the opportunities for improvement in the energy efficiency of motor systems by market segment, including opportunities for—</text> <subparagraph id="HA306B585E4AB478A9A54AE661D4C5895"><enum>(A)</enum><text>expanded use of drives, servos, and other control technologies;</text> </subparagraph><subparagraph id="HE767F1E1E56642A9951160E5D7725383"><enum>(B)</enum><text>expanded use of process control, pumps, compressors, fans or blowers, and material handling components; and</text> </subparagraph><subparagraph id="HAD142F9B4BA34F85A2FE588A4D815AA5"><enum>(C)</enum><text>substitution of existing motor designs with existing and future advanced motor designs, including electronically commutated permanent magnet, interior permanent magnet, and switched reluctance motors; and</text> </subparagraph></paragraph><paragraph id="HD4CA1A646B3548928D21E35D3D7B48A6"><enum>(3)</enum><text>develop an updated profile of motor system purchase and maintenance practices, including surveying the number of companies that have motor purchase and repair specifications, by company size, number of employees, and sales.</text> </paragraph></subsection><subsection id="H7EB6B67713C241BB9E8B9881770C7093"><enum>(d)</enum><header>Recommendations; update</header><text>Based on the assessment conducted under subsection (c), the Secretary shall—</text> <paragraph id="H01968F5A63364E22A9C9948BAA43B9E8"><enum>(1)</enum><text>develop—</text> <subparagraph id="HF1B16C8769DB4A94A7D62F20A4696AC3"><enum>(A)</enum><text>recommendations to update the detailed motor profile on a periodic basis;</text> </subparagraph><subparagraph id="H1BC9153B807F44BAA7AAA9828C76CE43"><enum>(B)</enum><text>methods to estimate the energy savings and market penetration that is attributable to the Save Energy Now Program of the Department; and</text> </subparagraph><subparagraph id="H84BC6A5AA306465AAE99C86D95DF03C2"><enum>(C)</enum><text>recommendations for the Director of the Census Bureau on market surveys that should be undertaken in support of the motor system activities of the Department; and</text> </subparagraph></paragraph><paragraph id="H87CD4572F8314FB0899BE5A4ED2260B1"><enum>(2)</enum><text>prepare an update to the Motor Master+ program of the Department.</text> </paragraph></subsection><subsection id="H1415AFA31F7348DBBF0B56EA01E732E0"><enum>(e)</enum><header>Program</header><text>Based on the assessment, recommendations, and update required under subsections (c) and (d), the Secretary shall establish a proactive, national program targeted at motor end-users and delivered in cooperation with interested parties to increase awareness of—</text> <paragraph id="H0FF6465B30D443C48D07882D40B86F2D"><enum>(1)</enum><text>the energy and cost-saving opportunities in commercial and industrial facilities using higher efficiency electric motors;</text> </paragraph><paragraph id="H442E8567963544719E465689EDDFC64B"><enum>(2)</enum><text>improvements in motor system procurement and management procedures in the selection of higher efficiency electric motors and motor-system components, including drives, controls, and driven equipment; and</text> </paragraph><paragraph id="H7236CE466A6B43E69EEDB8ED2C3A6A9E"><enum>(3)</enum><text>criteria for making decisions for new, replacement, or repair motor and motor system components.</text> </paragraph></subsection></section><section id="H3E808A2C45D34BA18D6F11BB3A204F8F"><enum>245.</enum><header>Motor efficiency rebate program</header> <subsection id="H3968EA2CC32040D4ABE95E4490ACFAA2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part C of title III of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6311">42 U.S.C. 6311 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HB48961BA5C9F488F872975CA525D2B92" style="OLC"> <section id="H247A772EC6764C5CBA496C3EB8523FE6"><enum>347.</enum><header>Motor efficiency rebate program</header> <subsection id="HBF268FF3F9D74B718B9B69AA90D18D1F"><enum>(a)</enum><header>Establishment</header><text>Not later than January 1, 2010, in accordance with subsection (b), the Secretary shall establish a program to provide rebates for expenditures made by entities—</text> <paragraph id="HBB7B4D16D0B943ECACAAE969E84DD32B"><enum>(1)</enum><text>for the purchase and installation of a new electric motor that has a nominal full load efficiency that is not less than the nominal full load efficiency as defined in—</text> <subparagraph id="H52E3312348B0424D93862BFB1A3133C6"><enum>(A)</enum><text>table 12–12 of NEMA Standards Publication MG 1–2006 for random wound motors rated 600 volts or lower; or</text> </subparagraph><subparagraph id="HA774563CC8D04196B0C3AF6B636FEE3A"><enum>(B)</enum><text>table 12–13 of NEMA Standards Publication MG 1–2006 for form wound motors rated 5000 volts or lower; and</text> </subparagraph></paragraph><paragraph id="H871A4783EA85437DB600A0BF36D74A78"><enum>(2)</enum><text>to replace an installed motor of the entity the specifications of which are established by the Secretary by a date that is not later than 90 days after the date of enactment of this section.</text> </paragraph></subsection><subsection id="H6E1F89E44C1C4FCBA4D0344AC17E58D3"><enum>(b)</enum><header>Requirements</header> <paragraph id="H3AEDD28955BC41DF982C6B84131229CB"><enum>(1)</enum><header>Application</header><text>To be eligible to receive a rebate under this section, an entity shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary may require, including—</text> <subparagraph id="HE614151AA4B64D1EB73A8C00D364F1C0"><enum>(A)</enum><text>demonstrated evidence that the entity purchased an electric motor described in subsection (a)(1) to replace an installed motor described in subsection (a)(2);</text> </subparagraph><subparagraph id="HC45CC542F3E5495589FD071129C54E64"><enum>(B)</enum><text>demonstrated evidence that the entity—</text> <clause id="HCCE211C3E61948C5BCA3BF734D8F4989"><enum>(i)</enum><text>removed the installed motor of the entity from service; and</text> </clause><clause id="HB2CDAAF703004740ACC323B46FAA7009"><enum>(ii)</enum><text>properly disposed the installed motor of the entity; and</text> </clause></subparagraph><subparagraph id="H3BB2483F03534DA8B387B455CC280F03"><enum>(C)</enum><text>the physical nameplate of the installed motor of the entity.</text> </subparagraph></paragraph><paragraph id="H43A277499A3945BA8D98A1F9166F15B3"><enum>(2)</enum><header>Authorized amount of rebate</header><text>The Secretary may provide to an entity that meets each requirement under paragraph (1) a rebate the amount of which shall be equal to the product obtained by multiplying—</text> <subparagraph id="H5DE9B51CB2454187AD180E2D50DCD3C2"><enum>(A)</enum><text>the nameplate horsepower of the electric motor purchased by the entity in accordance with subsection (a)(1); and</text> </subparagraph><subparagraph id="H84F68DDBB7A048BC8FD4305F30331818"><enum>(B)</enum><text>$25.00.</text> </subparagraph></paragraph><paragraph id="H93324115DD934B708F43C250E47F3E5F"><enum>(3)</enum><header>Payments to distributors of qualifying electric motors</header><text>To assist in the payment for expenses relating to processing and motor core disposal costs, the Secretary shall provide to the distributor of an electric motor described in subsection (a)(1), the purchaser of which received a rebate under this section, an amount equal to the product obtained by multiplying—</text> <subparagraph id="H3B384027677E4200B8F03FBC88E7D78B"><enum>(A)</enum><text>the nameplate horsepower of the electric motor; and</text> </subparagraph><subparagraph id="H3DD821BEBFDD42AAB00302F6C3CF2E15"><enum>(B)</enum><text>$5.00.</text> </subparagraph></paragraph></subsection><subsection id="HA58802F770EC4A8EB383200F62155BFF"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section, to remain available until expended—</text> <paragraph id="H2FFC1264DC7948E1A0EE25CE0FEEA13E"><enum>(1)</enum><text>$80,000,000 for fiscal year 2011;</text> </paragraph><paragraph id="HBD81F61E77404C9DA4F7C4B6F731800E"><enum>(2)</enum><text>$75,000,000 for fiscal year 2012;</text> </paragraph><paragraph id="H0C2183D26C404FB58725D1738DE5A2E9"><enum>(3)</enum><text>$70,000,000 for fiscal year 2013;</text> </paragraph><paragraph id="H3309816C931742208864D03A417BC4B2"><enum>(4)</enum><text>$65,000,000 for fiscal year 2014; and</text> </paragraph><paragraph id="H78C863C231B34BF59CBC99A0F2444676"><enum>(5)</enum><text>$60,000,000 for fiscal year 2015.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H389AC15702244EE9936D042C1B44307F"><enum>(b)</enum><header>Table of contents</header><text>The table of contents of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the end of the items relating to part C of title III the following:</text> <quoted-block id="HE0425BE90ACC44839D2060ABE6DC3AA4" style="OLC"> <toc> <toc-entry idref="H247A772EC6764C5CBA496C3EB8523FE6" level="section">Sec. 347. Motor efficiency rebate program.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HC1AD6E96266C4B6CA1ADC52121FBAE63"><enum>246.</enum><header>Clean energy manufacturing revolving loan fund program</header><text display-inline="no-display-inline">The National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/271">15 U.S.C. 271 et seq.</external-xref>) is amended by inserting after section 26 the following:</text> <quoted-block display-inline="no-display-inline" id="H18162042E48248D683159DE105A33CBA" style="OLC"> <section id="HD2AB70326EAC4742B3509A4EA5ABE3E6"><enum>27.</enum><header>Clean energy manufacturing revolving loan fund program</header> <subsection id="H2C266341806A4530ABB1996D356220FC"><enum>(a)</enum><header>Purposes</header><text>The purposes of this section are as follows:</text> <paragraph id="H5D05AA8441AF42CA9E5C16AD0A92B570"><enum>(1)</enum><text>To develop the long-term manufacturing capacity of the United States.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDCA488F84806402B9590938A5CB3A6BB"><enum>(2)</enum><text>To create jobs through the retooling and expansion of manufacturing facilities to produce clean energy technology products and energy efficient products.</text> </paragraph><paragraph id="H04D4E9EB305544A4A101C4A8C39166C4"><enum>(3)</enum><text>To improve the long-term competitiveness of domestic manufacturing by increasing the energy efficiency of manufacturing facilities.</text> </paragraph><paragraph id="H663432E90D9B4B9898EEB3CE771F9AE4"><enum>(4)</enum><text>To assist small and medium-sized manufacturers diversify operations to respond to emerging clean energy technology product markets.</text> </paragraph></subsection><subsection id="H88B2538FDFDA4F3696128D18CE2537FB"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HCA85719A15694407988C9892CDFA8142"><enum>(1)</enum><header>Clean energy technology product</header><text>The term <term>clean energy technology product</term> means technology products relating to the following:</text> <subparagraph id="HD919E6F1C34F47A2B4122BFCEFF5B2B9"><enum>(A)</enum><text>Wind turbines.</text> </subparagraph><subparagraph id="HBC6FC68AEADF4E5D87022257B3688C25"><enum>(B)</enum><text>Solar energy.</text> </subparagraph><subparagraph id="HA1AEBCB34A344ADBB081D64975133AB2"><enum>(C)</enum><text>Fuel cells.</text> </subparagraph><subparagraph id="H274DA18FBF0148338DE9045B91FC21BE"><enum>(D)</enum><text>Advanced batteries, battery systems, or storage devices.</text> </subparagraph><subparagraph id="H0E69DF0A86E34FC7A314CA5AB44D6331"><enum>(E)</enum><text>Biomass equipment.</text> </subparagraph><subparagraph id="H3884ECB0F4E540E999A3C3614DE51CE9"><enum>(F)</enum><text>Geothermal equipment.</text> </subparagraph><subparagraph id="H76D18F7B9F1045AEBA226552461D6F1A"><enum>(G)</enum><text>Advanced biofuels.</text> </subparagraph><subparagraph id="HE96B224541BE4BD8A94CC2DF0FD275F7"><enum>(H)</enum><text>Ocean energy equipment.</text> </subparagraph><subparagraph id="H8E866A82CFE2436394C189226FD95343"><enum>(I)</enum><text>Carbon capture and storage.</text> </subparagraph><subparagraph id="H244CABA4E2284DC49F6808EF0653ACFE"><enum>(J)</enum><text>Such other products as the Secretary determines—</text> <clause id="H387113D550AB4172954BEBCE2777F672"><enum>(i)</enum><text>relate to the production, use, transmission, storage, control, or conservation of energy;</text> </clause><clause id="HEC26E69E3C1F45F38013F2BEB2C94571"><enum>(ii)</enum><text>reduce greenhouse gas concentrations;</text> </clause><clause id="HC3465571C8974546895B2B85ADAEA37B"><enum>(iii)</enum><text>achieve the earliest and maximum emission reductions within a reasonable period per dollar invested;</text> </clause><clause id="HCBBF4304C005437E806D6A12D0E54D94"><enum>(iv)</enum><text>result in the fewest non-greenhouse gas environmental impacts; and</text> </clause><clause id="HE771CBA1C7E142879423F39E60341C5E"><enum>(v)</enum><text>either—</text> <subclause id="H3B8A0060657C48C0837CE65DA262378A"><enum>(I)</enum><text>reduce the need for additional energy supplies by—</text> <item id="H48B6FB61D6554E59959D86AE167B186A"><enum>(aa)</enum><text>using existing energy supplies with greater efficiency; or</text> </item><item id="H2495A729E4CA439AB2A309AAD1B844D4"><enum>(bb)</enum><text>by transmitting, distributing, or transporting energy with greater effectiveness through the infrastructure of the United States; or</text> </item></subclause><subclause id="HC96EB79FFA0B4A12A6BB9020A2D5DCE9"><enum>(II)</enum><text>diversity the sources of energy supply of the United States—</text> <item id="H5C545FC9570C4C7A9D02A3849204CA5C"><enum>(aa)</enum><text>to strengthen energy security; and</text> </item><item id="H0B54A820659D4444B648AB3F1490E312"><enum>(bb)</enum><text>to increase supplies with a favorable balance of environmental effects if the entire technology system is considered.</text> </item></subclause></clause></subparagraph></paragraph><paragraph id="H25361952231B4C3591631EAEDD9B87EC"><enum>(2)</enum><header>Energy efficient product</header><text>The term <term>energy efficient product</term> means a product that, as determined by the Secretary in consultation with the Secretary of Energy—</text> <subparagraph id="HF9BF4BA791654EA79894EFCBB3D5EB3D"><enum>(A)</enum><text>consumes significantly less energy than the average amount that all similar products consumed on the day before the date of the enactment of this Act; or</text> </subparagraph><subparagraph id="H6E8E026732B34D5798E8844C04B0F5CE"><enum>(B)</enum><text>is a component, system, or group of subsystems that is designed, developed, and validated to optimize the energy efficiency of a product.</text> </subparagraph></paragraph><paragraph id="H7DF7A4305C6A44B59CF7A906EB279865"><enum>(3)</enum><header>Hollings Manufacturing Extension Center</header><text>The term <term>Hollings Manufacturing Extension Center</term> means a center established under section 25.</text> </paragraph><paragraph id="H9FD9AAC4C9514EF0B5A3C7CCE87E09CF"><enum>(4)</enum><header>Hollings Manufacturing Partnership Program</header><text>The term <term>Hollings Manufacturing Partnership Program</term> means the program established under sections 25 and 26.</text> </paragraph><paragraph id="H713E848449F34DAFBC404EB8144C0E2A"><enum>(5)</enum><header>Program</header><text>The term <term>Program</term> means the grant program established pursuant to <internal-xref idref="H0D52E7F4E49F4AB0ABB6A58D819E11BA"> subsection (c)(1)</internal-xref>.</text> </paragraph><paragraph id="HADD4ACB87657497BA244F0368EE40767"><enum>(6)</enum><header>Revolving loan fund</header><text>The term <term>revolving loan fund</term> means a revolving loan fund described in subsection (d).</text> </paragraph><paragraph id="H5B66156E8FCF4C61A37A413CFD9B998E"><enum>(7)</enum><header>Secretary</header><text>Except as otherwise provided, the term <term>Secretary</term> means the Secretary of Commerce.</text> </paragraph><paragraph id="H6BC9069F930D450DA214C33A1167B36D"><enum>(8)</enum><header>Small or medium-sized manufacturer</header><text>The term <term>small or medium-sized manufacturer</term> means a manufacturer that employs fewer than 500 full-time equivalent employees at a manufacturing facility that is not owned or controlled by an automobile manufacturer.</text> </paragraph></subsection><subsection id="HE7E8D3C3363F4CC39B409E7192358B4B"><enum>(c)</enum><header>Grant program</header> <paragraph id="H0D52E7F4E49F4AB0ABB6A58D819E11BA"><enum>(1)</enum><header>Establishment</header><text>Not later than 120 days after the date of the enactment of this section, the Secretary shall establish a program under which the Secretary shall award grants to States to establish revolving loan funds to provide loans to small and medium-sized manufacturers to finance the cost of—</text> <subparagraph id="HA192C30F53324CABA05B1964D15DA27B"><enum>(A)</enum><text>reequipping, expanding, or establishing (including applicable engineering costs) a manufacturing facility in the United States to produce—</text> <clause id="H89BB84FAF32B42879C6C245C420AF643"><enum>(i)</enum><text>clean energy technology products;</text> </clause><clause id="HCEA5CE9793794036B66CC23EC41E61FB"><enum>(ii)</enum><text>energy efficient products; or</text> </clause><clause id="H7DE7C7E5E72B403A93E31B9FADD4BCAA"><enum>(iii)</enum><text>integral component parts of clean energy technology products or energy efficient products; or</text> </clause></subparagraph><subparagraph id="H03A7F12BB890413DB0CE2AF8424E21BE"><enum>(B)</enum><text>reducing the energy intensity or greenhouse gas production of a manufacturing facility in the United States, including using energy intensive feedstocks.</text> </subparagraph></paragraph><paragraph id="HEDF044AD6A0A42DCB59319C437369F7F"><enum>(2)</enum><header>Maximum amount</header><text>The Secretary may not award a grant under the Program in an amount that exceeds $500,000,000 in any fiscal year.</text> </paragraph></subsection><subsection id="HBBA13294D7644378BA5B16E73DF4E285"><enum>(d)</enum><header>Criteria for awarding grants</header> <paragraph id="H813C3D332A80449CB79668173E015C4E"><enum>(1)</enum><header>Matching funds</header><text>The Secretary may make a grant to a State under the Program only if the State agrees to ensure that for each loan provided by the State under the Program, not less than 20 percent of the amount of each loan will come from a non-Federal source.</text> </paragraph><paragraph id="HC852D9B4CD8548DFA8D6F433558A1256"><enum>(2)</enum><header>Administrative costs</header><text>A State receiving a grant under the Program may only use such amount of the grant for the costs of administering the revolving loan fund as the Secretary shall provide in regulations.</text> </paragraph><paragraph id="HC47734CF789F4839B00DF2863360A454"><enum>(3)</enum><header>Application</header><text>Each State seeking a grant under the Program shall submit to the Secretary an application therefor in such form and in such manner as the Secretary considers appropriate.</text> </paragraph><paragraph id="H7AC4CFA51025418C8FADEF558946499F"><enum>(4)</enum><header>Evaluation</header><text>The Secretary shall evaluate and prioritize an application submitted by a State for a grant under the Program on the basis of—</text> <subparagraph id="H6024AEC00D6B4A248DB55458CBE036B1"><enum>(A)</enum><text>the description of the revolving loan fund to be established with the grant and how such revolving loan fund will achieve the purposes described in <internal-xref idref="H2C266341806A4530ABB1996D356220FC"> subsection (a)</internal-xref>;</text> </subparagraph><subparagraph id="H82737F7401DA4A48BB49692965340BEC"><enum>(B)</enum><text>whether the State will be able to provide loans from the revolving loan fund to small or medium-sized manufacturers before the date that is 120 days after the date on which the State receives the grant;</text> </subparagraph><subparagraph id="HC1D8F982EEBA4D12935009350CACDB5B"><enum>(C)</enum><text>a description of how the State will administer the revolving loan fund in coordination with other State and Federal programs, including programs administered by the Assistant Secretary for Economic Development;</text> </subparagraph><subparagraph id="H7EB5AF28729946FEA1981E70F6FF3F37"><enum>(D)</enum><text>a description of the actual or potential clean energy manufacturing supply chains, including significant component parts, in the region served by the revolving loan fund;</text> </subparagraph><subparagraph id="HBA4B068B30A34033877C62977C5183D4"><enum>(E)</enum><text>how the State will target the provision of loans under the Program to manufacturers located in regions characterized by high unemployment and sudden and severe economic dislocation, in particular where mass layoffs have resulted in a precipitous increase in unemployment;</text> </subparagraph><subparagraph id="H9A123D02319F4593B44F0FFB32FBD924"><enum>(F)</enum><text>the availability of a skilled manufacturing workforce in the region served by the revolving loan fund and the capacity of the region’s workforce and education systems to provide pathways for unemployed or low-income workers into skilled manufacturing employment;</text> </subparagraph><subparagraph id="HB0BDCB4C48E747AE9F28CCA9F14EB458"><enum>(G)</enum><text>a description of how the State will target loans to small or medium-sized manufacturers who are—</text> <clause id="H19B2AFAA998747F8A93B65ADD021A7B1"><enum>(i)</enum><text>manufacturers of automobile components; and</text> </clause><clause id="H42EF2649B17944259A2C0ACB9DBF6414"><enum>(ii)</enum><text>either—</text> <subclause id="HD85036B17F13488FB5DF4B2A6E1B9787"><enum>(I)</enum><text>increasing the energy efficiency of their manufacturing facilities; or</text> </subclause><subclause id="HFAE52172C1A045CEBEFFFF05C044F124"><enum>(II)</enum><text>retooling to manufacture clean energy products or energy efficient products, including manufacturing components to improve the compliance of an automobile with fuel economy standards prescribed under <external-xref legal-doc="usc" parsable-cite="usc/49/32902">section 32902</external-xref> of title 49, United States Code;</text> </subclause></clause></subparagraph><subparagraph id="HBE95A712FDBC472396DA1583B97C3B61"><enum>(H)</enum><text>a description of how the State will use the loan fund to achieve the earliest and maximum greenhouse gas emission reductions within a reasonable period of time per dollar invested and with the fewest non-greenhouse gas environmental impacts; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCB4FE14394A54139BEFB11989FBB320B"><enum>(I)</enum><text>such other factors as the Secretary considers appropriate to ensure that grants awarded under the Program effectively and efficiently achieve the purposes described in <internal-xref idref="H2C266341806A4530ABB1996D356220FC"> subsection (a)</internal-xref>.</text> </subparagraph></paragraph></subsection><subsection id="HAFC62AD1992940CD8346F51F0EF60F07"><enum>(e)</enum><header>Revolving loan funds</header> <paragraph id="HD744EE4C499042B88D0DA9403D70A3E3"><enum>(1)</enum><header>In general</header><text>A State receiving a grant under the Program shall establish, maintain, and administer a revolving loan fund in accordance with this subsection.</text> </paragraph><paragraph id="HF0B4B0CE9DB943EEB01999D36AA7EE6C"><enum>(2)</enum><header>Deposits</header><text>A revolving loan fund shall consist of the following:</text> <subparagraph id="H1E4F5C775A5C4E16875B94624AFA345A"><enum>(A)</enum><text>Amounts from grants awarded under this section.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H288CA050352A4711B635CF0D76B4D098"><enum>(B)</enum><text>All amounts held or received by the State incident to the provision of loans described in <internal-xref idref="H14D27D3D2EF54E708E23677E981F4E7D"> subsection (f)</internal-xref>, including all collections of principal and interest.</text> </subparagraph></paragraph><paragraph id="H4B7DCD4C8D0A4ECB80B005A32F50B574"><enum>(3)</enum><header>Expenditures</header><text>Amounts in the revolving loan fund shall be available for the provision and administration of loans in accordance with <internal-xref idref="H14D27D3D2EF54E708E23677E981F4E7D"> subsection (f)</internal-xref>.</text> </paragraph><paragraph id="H5B9967BE0BEA4601827C4FBE1BB947F8"><enum>(4)</enum><header>Limitation</header><text display-inline="yes-display-inline">No funds provided pursuant to this section may be leveraged through use of tax-exempt bonding authority by a State or a political subdivision of a State.</text> </paragraph></subsection><subsection id="H14D27D3D2EF54E708E23677E981F4E7D"><enum>(f)</enum><header>Loans</header> <paragraph id="H3CEF093A5EAB4C7997DD3E20A62A8901"><enum>(1)</enum><header>In general</header><text>A State receiving a grant under this section shall use the amount in the revolving loan fund to provide loans to small and medium-sized manufacturers as described in subsection (c)(1).</text> </paragraph><paragraph id="H7CF59A4A1C86495794742C703216F560"><enum>(2)</enum><header>Loan terms and conditions</header><text>The following shall apply with respect to loans provided under paragraph (1):</text> <subparagraph id="H02225E06C42B4F078BD442E9175A3184"><enum>(A)</enum><header>Terms</header><text>Loans shall have a term determined by the State receiving the grant as follows:</text> <clause id="HF4E1726522A2453AB11671D32B610FDC"><enum>(i)</enum><text>For fixed assets, the term of the loan shall not exceed the useful life of the asset and shall be less than 15 years.</text> </clause><clause id="H66D014CCE29D4D5785BDCB41018B3D62"><enum>(ii)</enum><text>For working capital, the term of the loan shall not exceed 36 months.</text> </clause></subparagraph><subparagraph id="HAF7B395146864D5AA40545C2F2867FBA"><enum>(B)</enum><header>Interest rates</header><text>Loans shall bear an interest rate determined by the State receiving the grant as follows:</text> <clause id="H54C61F3144404D82A7A6DEEAAEB4E499"><enum>(i)</enum><text>The interest rate shall enable the loan recipient to accomplish the activities described in subparagraphs (A) and (B) of subsection (c)(1).</text> </clause><clause id="H51AFC7527FD9488097B0FAA977162787"><enum>(ii)</enum><text>The interest rate may be set below-market interest rates.</text> </clause><clause id="HC18930D820D2459CAA3C9E656BD21BA3"><enum>(iii)</enum><text>The interest rate may not be less than zero percent.</text> </clause><clause id="H09DA39CAA66641489B0203AA051E80D2"><enum>(iv)</enum><text>The interest rate may not exceed the current prime rate plus 500 basis points.</text> </clause></subparagraph><subparagraph id="HC192D3E31684495282FBA292EF2B0DA3"><enum>(C)</enum><header>Description and budget for use of loan funds</header><text>Each recipient of a loan from a State under the Program shall develop and submit to the State and the Secretary a description and budget for the use of loan amounts, including a description of the following:</text> <clause id="H8DCB6D156AA246A097F495D48D51EEBB"><enum>(i)</enum><text>Any new business expected to be developed with the loan.</text> </clause><clause id="HCBC81D71AADB42AB84BCD4AB0F53D4A0"><enum>(ii)</enum><text>Any improvements to manufacturing operations to be developed with the loan.</text> </clause><clause id="H2BF1723084AE4E218756F4FD7BDB504F"><enum>(iii)</enum><text>Any technology expected to be commercialized with the loan.</text> </clause></subparagraph><subparagraph id="H6CD268DCF6E34161B542EDD0EA3FDEDA"><enum>(D)</enum><header>Priority in review and preference in selection for certain loan applicants</header> <clause id="H3A63F7A6802A41D2A451636F48A45C5C"><enum>(i)</enum><header>Review</header><text>In reviewing applications submitted by small or medium-sized manufacturers for a loan, a recipient of a grant under the Program shall give priority to small or medium-sized manufacturers described in clause (iii).</text> </clause><clause id="H560A328847694D6EB25518DFA381FE00"><enum>(ii)</enum><header>Selection</header><text>In selecting small or medium-sized manufacturers to receive a loan, a recipient of a grant under the Program shall give preference to small or medium-sized manufacturers described in clause (iii).</text> </clause><clause id="H33851753E05A478BAB0BB18CEF57879E"><enum>(iii)</enum><header>Priority and preferred small or medium-sized manufacturers</header><text>A small or medium-sized manufacturer described in this clause is a manufacturer that—</text> <subclause id="H5AE7E94CD1CF4E1581A5897D63106AA3"><enum>(I)</enum><text>is certified by a Hollings Manufacturing Extension Center or a manufacturing-related local intermediary designated by the Secretary for purposes of providing such certification; or</text> </subclause><subclause id="H2EE6698AF11A466FB0FC953455BB132C"><enum>(II)</enum><text>provides individuals employed at the manufacturing facilities of the manufacturer—</text> <item id="H57B20365C0C54127B5F242DFF4257C7F"><enum>(aa)</enum><text>pay in amounts that are, on average, equal to or more than the average wage of an individual working in a manufacturing facility in the State; and</text> </item><item commented="no" display-inline="no-display-inline" id="H579B1C5FA3C64FAABC4E7DBBB7FC859F"><enum>(bb)</enum><text>health benefits.</text> </item></subclause></clause><clause id="H2C67FF892B2D4C30AB94A2EB9B5A32FF"><enum>(iv)</enum><header>Certification by Hollings Manufacturing Extension Center</header><text>A Hollings Manufacturing Extension Center or other entity designated by the Secretary for purposes of providing certification under clause (iii)(I) shall only certify applications for a loan after carrying out a qualitative and quantitative review of the applicant's business strategy, manufacturing operations, and technological ability to contribute to the purposes described in subsection (a).</text> </clause></subparagraph><subparagraph id="H98C4A5A0DF164B9DB528CAC9E6E630CE"><enum>(E)</enum><header>Repayment upon relocation outside United States</header> <clause id="H1E2D03B57AD74A10A60800B2D100FC70"><enum>(i)</enum><header>In general</header><text>If a person receives a loan under paragraph (1) to finance the cost of reequipping, expanding, or establishing a manufacturing facility as described in subsection (c)(1)(A) or to reduce the energy intensity of a manufacturing facility and such person relocates the production activities of such manufacturing facility outside the United States during the term of the loan, the recipient shall repay such loan in full with interest as described in clause (ii) and for a duration described in clause (iii).</text> </clause><clause id="HDB920AA7DE144E77BE7E0DD8134BE6B9"><enum>(ii)</enum><header>Payment of interest</header><text>Any amount owed by the recipient of a loan under paragraph (1) who is required to repay the loan under clause (i) shall bear interest at a penalty rate determined by the Secretary to deter recipients of loans under paragraph (1) from relocating production activities as described in clause (i).</text> </clause><clause id="H2A07C2BCE4AC44B6BFD7A87EE5D8BF8F"><enum>(iii)</enum><header>Period of repayment</header><text>Repayment of a loan under clause (i) shall be for a duration determined by the Secretary.</text> </clause></subparagraph><subparagraph id="HB2FB4B61AF6F4619953A3AB08DDB30F2"><enum>(F)</enum><header>Compliance with wage rate requirements</header><text>Each recipient of a loan shall undertake and agree to incorporate or cause to be incorporated into all contracts for construction, alteration or repair, which are paid for in whole or in part with funds obtained pursuant to such loan, a requirement that all laborers and mechanics employed by contractors and subcontractors performing construction, alteration or repair shall be paid wages at rates not less than those determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code (known as the <quote>Davis-Bacon Act</quote>), to be prevailing for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the same locality in which the work is to be performed. The Secretary of Labor shall have, with respect to the labor standards specified in this subparagraph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 Fed. Reg. 3176; 64 Stat. 1267) and <external-xref legal-doc="usc" parsable-cite="usc/40/3145">section 3145</external-xref> of title 40, United States Code.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA328F62378BF4C9A941A0D295F345520"><enum>(G)</enum><header>Annual reports by loan recipients</header><text>Each recipient of a loan issued by a State under paragraph (1) shall, not less frequently than once each year during the term of the loan, submit to such State a report containing such information as the Secretary may specify for purposes of the Program, including information that the Secretary can use to determine whether a recipient of a loan is required to repay the loan under subparagraph (E).</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4D6D9B9C500742CBA7391E72DAC85D15"><enum>(3)</enum><header>Annual reports by grant recipients</header><text>Each recipient of a grant under the Program shall, not less frequently than once each year, submit to the Secretary a report on the impact of each loan issued by the State under the Program and the aggregate impact of all loans so issued, including the following:</text> <subparagraph commented="no" display-inline="no-display-inline" id="H2CCB23515AFB4CC7ABB8C95A717FBB3E"><enum>(A)</enum><text>The sales increased or retained.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H648906F7D51F4C85B48A55D844504036"><enum>(B)</enum><text>Cost savings or costs avoided.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7ACD6223D11D435F9E554D99E184655B"><enum>(C)</enum><text>Additional investment encouraged.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H24D41AAF2F434CBC93F726CB645D4A7B"><enum>(D)</enum><text>Jobs created or retained.</text> </subparagraph></paragraph></subsection><subsection id="HF414314898D64A9F9BFA1FF598914235"><enum>(g)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $15,000,000,000 for each of fiscal years 2010 and 2011.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H7CDEB1E6F9B345F682524B2A1EDD6A21"><enum>247.</enum><header>Clean energy and efficiency manufacturing partnerships</header> <subsection id="H50CBE274E72F4F8C844B3AF7B2F67379"><enum>(a)</enum><header>Hollings Manufacturing Partnership Program</header><text>Section 25(b) of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k(b)</external-xref>) is amended—</text> <paragraph id="H2F7B0F3D75094B068498F5DF88DF7688"><enum>(1)</enum><text>in paragraph (2), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="H69771401B7714D8E9B1FE20626493909"><enum>(2)</enum><text>in paragraph (3), by striking the period at the end and inserting <quote>; and</quote>; and</text> </paragraph><paragraph id="HC54BC516174F4ACBAE48BA63F956026A"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HEE9056807E8346E494F8885738A9E097" style="OLC"> <paragraph id="HE080476DE2AB4146BBA629DD20FB34CC"><enum>(4)</enum><text>the establishment of a clean energy manufacturing supply chain initiative—</text> <subparagraph id="H2BD1F7E3C7AA46C482CDD48E24294238"><enum>(A)</enum><text>to support manufacturers in their identification of and diversification to new markets, including support for manufacturers transitioning to the use of clean energy supply chains;</text> </subparagraph><subparagraph id="H5EBFAE3A77054CC1ADD3F2F6AF1F3827"><enum>(B)</enum><text>to assist manufacturers improve their competitiveness by reducing energy intensity and greenhouse gas production, including the use of energy intensive feedstocks;</text> </subparagraph><subparagraph id="H4C004FBFD70A478E9C25EECCAF8C89F5"><enum>(C)</enum><text>to increase adoption and implementation of innovative manufacturing technologies;</text> </subparagraph><subparagraph id="H910FC77447934F57A10C3CEFC6991FFA"><enum>(D)</enum><text>to coordinate and leverage the expertise of the National Laboratories and Technology Centers and the Industrial Assessment Centers of the Department of Energy to meet the needs of manufacturers; and</text> </subparagraph><subparagraph id="H01AC4FC35557426198010979508637D5"><enum>(E)</enum><text>to identify, assist, and certify manufacturers seeking loans under section 27(e)(1).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H06FAA6A1CD2D4D8EA39DD882808AF48D"><enum>(b)</enum><header>Reduction in cost share requirements</header><text>Section 25(c) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k(c)</external-xref>) is amended—</text> <paragraph id="HED34BA46A928430B9A5335BD33CD17D7"><enum>(1)</enum><text>in paragraph (1), by inserting <quote>or as provided in paragraph (5)</quote> after <quote>not to exceed six years</quote>;</text> </paragraph><paragraph id="HC7F68E3EA7AA4A29B6469753CA56F9F5"><enum>(2)</enum><text>in paragraph (3)(B), by striking <quote>not less than 50 percent of the costs incurred for the first 3 years and an increasing share for each of the last 3 years</quote> and inserting <quote>50 percent of the costs incurred or such lesser percentage of the costs incurred as determined appropriate by the Secretary by rule</quote>; and</text> </paragraph><paragraph id="HFBF08E161DC34261B61A8D028319C99C"><enum>(3)</enum><text>in paragraph (5)—</text> <subparagraph id="H19E4A84E710A42D9A33256739DDE52B5"><enum>(A)</enum><text>by striking <quote>at declining levels</quote>;</text> </subparagraph><subparagraph id="HB4DADFC5609548D897EE19045CED53C7"><enum>(B)</enum><text>by striking <quote>one third</quote> and inserting <quote>50 percent</quote>; and</text> </subparagraph><subparagraph id="H910A025BC6CC43739898B1D949540738"><enum>(C)</enum><text>by inserting <quote>, or such lesser percentage as determined appropriate by the Secretary by rule,</quote> after <quote>maintenance costs</quote>.</text> </subparagraph></paragraph></subsection><subsection id="HE038475DB4EF43C4AC8BCD1DEF95A3EC"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Commerce for the Hollings Manufacturing Partnership Program authorized under sections 25 of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k</external-xref>) and for the provision of assistance under section 26 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278l">15 U.S.C. 278l</external-xref>)—</text> <paragraph id="H47B533F062854A75AC34B320A8D08D1E"><enum>(1)</enum><text>$200,000,000 for fiscal year 2010;</text> </paragraph><paragraph id="H43B39B651A10463EBED61F63A023E64E"><enum>(2)</enum><text>$250,000,000 for fiscal year 2011;</text> </paragraph><paragraph id="H6EE8A667264B46B8A187CF27B72ED45F"><enum>(3)</enum><text>$300,000,000 for fiscal year 2012;</text> </paragraph><paragraph id="H0684958A812544458446245C3F6BFAC7"><enum>(4)</enum><text>$350,000,000 for fiscal year 2013; and</text> </paragraph><paragraph id="H752F6607F5E84AA3BBC2971925F1BA6C"><enum>(5)</enum><text>$400,000,000 for fiscal year 2014.</text> </paragraph></subsection></section><section id="H8F6EDFCE49D44BF885857C697AEDA005"><enum>248.</enum><header>Technical amendments</header> <subsection id="H47193602C11643BD8AEFE210B621E592"><enum>(a)</enum><header>Amendment to National Institute of Standards and Technology Act</header><text display-inline="yes-display-inline">Section 25 of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k(b)</external-xref>) is amended—</text> <paragraph id="H4D6D2EEADDEB459AB3491D54853B39C5"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>(hereafter in this Act referred to as the <quote>Centers</quote>)</quote>; and</text> </paragraph><paragraph id="H2701A84642204254AA0E008184A654DD"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H4166F3B131F442248489E653BB12BC4E" style="OLC"> <subsection id="H829417B6DB8A493A9366D25F28740536"><enum>(g)</enum><header>Designation</header> <paragraph id="HB36B5C2056C44B639AAA43FBB6EEF530"><enum>(1)</enum><header>Hollings Manufacturing Partnership Program</header><text>The program under this section shall be known as the <term>Hollings Manufacturing Partnership Program</term>.</text> </paragraph><paragraph id="HAE217E16B68D4AE9A7260A6AD7B8CF50"><enum>(2)</enum><header>Hollings Manufacturing Extension Centers</header><text display-inline="yes-display-inline">The Regional Centers for the Transfer of Manufacturing Technology created and supported under subsection (a) shall be known as the <term>Hollings Manufacturing Extension Centers</term> (in this Act referred to as the <term>Centers</term>).</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H84F6D722928844E682F970B487A69984"><enum>(b)</enum><header>Amendment to Consolidated Appropriations Act, 2005</header><text>Division B of title II of the Consolidated Appropriations Act, 2005 (<external-xref legal-doc="public-law" parsable-cite="pl/108/447">Public Law 108–447</external-xref>; 118 Stat. 2879; <external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k</external-xref> note) is amended under the heading <quote><header-in-text level="appropriations-small" other-style="traditional-inline" style="other">industrial technology services</header-in-text></quote> by striking <quote>2007: <proviso><italic>Provided further, </italic>That</proviso></quote> and all that follows through <quote>Extension Centers.</quote> and inserting <quote>2007.</quote>.</text> </subsection></section></subtitle><subtitle id="HB17A10FB37654FC9875E7530E207A5B5"><enum>E</enum><header>Improvements in energy savings performance contracting</header> <section id="H15A49A493B9343EC9235078E98835A5C"><enum>251.</enum><header>Energy savings performance contracts</header> <subsection id="H90783B116BEE4F5FACC4AB6965BABCF7"><enum>(a)</enum><header>Competition requirements for task or delivery orders under energy savings performance contracts</header> <paragraph id="H029173E00CA046968D1B5781893CFE80"><enum>(1)</enum><header>Competition requirements</header><text>Subsection (a) of section 801 of the National Energy Conservation Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8287">42 U.S.C. 8287(a)</external-xref>) is amended by adding at the end the following paragraph:</text> <quoted-block id="HDAFD8197666B4F5AA51F69D05985A7AC" style="OLC"> <paragraph id="H1078B58ACD9E42CCADC89F87788B34EF" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HE370047FCDA043048F0E7C5BEA55C8A7"><enum>(A)</enum><text>The head of a Federal agency may issue a task or delivery order under an energy savings performance contract by—</text> <clause id="H5EBF4235A75247208AC48F4F45817E1F" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">notifying all contractors that have received an award under such contract that the agency proposes to discuss energy savings performance services for some or all of its facilities and, following a reasonable period of time to provide a proposal in response to the notice, soliciting an expression of interest in performing site surveys or investigations and feasibility designs and studies and the submission of qualifications from such contractors, and including in such notice summary information concerning energy use for any facilities that the agency has specific interest in including in such contract;</text> </clause><clause id="H74CB1ACA13A34A9ABBF4DF7B983CE36D" indent="up1"><enum>(ii)</enum><text>reviewing all expressions of interest and qualifications submitted pursuant to the notice under clause (i);</text> </clause><clause id="HA6AD628D041D4C4A9DFE7F83665B65C4" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">selecting two or more contractors (from among those reviewed under clause (ii)) to conduct discussions concerning the contractors’ respective qualifications to implement potential energy conservation measures, including requesting references demonstrating experience on similar efforts and the resulting energy savings of such similar efforts, and providing an opportunity for a post-award debriefing to all contractors that submitted expressions of interest and qualifications under clause (ii) pursuant to the notice;</text> </clause><clause id="H3E9AA26066EE470DAC99F7D0A5A4BCEA" indent="up1"><enum>(iv)</enum><text>selecting and authorizing—</text> <subclause id="H969831FA25AE456B84C130655B1E1799"><enum>(I)</enum><text>more than one contractor (from among those selected under clause (iii)) to conduct site surveys, investigations, feasibility designs and studies or similar assessments for the energy savings performance contract services (or for discrete portions of such services), for the purpose of allowing each such contractor to submit a firm, fixed-price proposal to implement specific energy conservation measures; or</text> </subclause><subclause id="H16847DB9DEFC45228EF0E95C7180953C"><enum>(II)</enum><text>one contractor (from among those selected under clause (iii)) to conduct a site survey, investigation, a feasibility design and study or similar for the purpose of allowing the contractor to submit a firm, fixed-price proposal to implement specific energy conservation measures;</text> </subclause></clause><clause id="HCDFB65CEC4654FF4B3FA2E5494142B96" indent="up1"><enum>(v)</enum><text>negotiating a task or delivery order for energy savings performance contracting services with the contractor or contractors selected under clause (iv) based on the energy conservation measures identified; and</text> </clause><clause id="H72144CAD38A843C7BF7DE9984A387867" indent="up1"><enum>(vi)</enum><text>issuing a task or delivery order for energy savings performance contracting services to such contractor or contractors.</text> </clause></subparagraph><subparagraph id="HFA31A86AAF334CE5BCF9056471A044A8" indent="up1"><enum>(B)</enum><text>The issuance of a task or delivery order for energy savings performance contracting services pursuant to subparagraph (A) is deemed to satisfy the task and delivery order competition requirements in <external-xref legal-doc="usc" parsable-cite="usc/10/2304c">section 2304c(d)</external-xref> of title 10, United States Code, and section 303J(d) of the Federal Property and Administrative Services Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/41/253j">41 U.S.C. 253j(d)</external-xref>).</text> </subparagraph><subparagraph id="HF76860602EB54994BA4EC7ACC2D3FC43" indent="up1"><enum>(C)</enum><text>The Secretary may issue guidance as necessary to agencies issuing task or delivery orders pursuant to subparagraph (A).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H470A663958CF4C89A12EA5C99CD3A966"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) is inapplicable to task or delivery orders issued before the date of enactment of this section.</text> </paragraph></subsection><subsection id="H12478259586B48D2A4A21FE6AA77A46A"><enum>(b)</enum><header>Inclusion of thermal renewable energy</header><text>Section 203 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15852">42 U.S.C. 15852</external-xref>) is amended—</text> <paragraph id="H35A2ED0E47AF41B0BA2D75451A63D220"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>electric</quote>; and</text> </paragraph><paragraph id="H349C6E6917BC49FCBF835A43168FADBA"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(2), by inserting <quote>or thermal</quote> after <quote>means electric</quote>.</text> </paragraph></subsection><subsection id="H9C76B656409C4D5BA0E4C12E0C86991A"><enum>(c)</enum><header> Credit for renewable energy produced and used on site</header><text>Subsection (c) of section 203 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15852">42 U.S.C. 15852</external-xref>) is amended to read as follows:</text> <quoted-block id="H09814BF99EDB41DEA9A0F82CA9B024CE" style="OLC"> <subsection id="H42976F4A1E8E46E58CB63A13CA4640DA"><enum>(c)</enum><header>Calculation</header><text>Renewable energy produced at a Federal facility, on Federal lands, or on Indian lands (as defined in title XXVI of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/25/3501">25 U.S.C. 3501 et seq.</external-xref>)) shall be calculated separately from renewable energy consumed at a Federal facility, and each may be used to comply with the consumption requirement under subsection (a).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HFD7D03BD49FF433A941A7997884BF40F"><enum>(d)</enum><header>Financing flexibility</header><text display-inline="yes-display-inline">Section 801(a)(2)(E) of the National Energy Conservation Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8287">42 U.S.C. 8287(a)(2)(E)</external-xref>) is amended by striking <quote>In</quote> and inserting <quote>Notwithstanding any other provision of law, in</quote>.</text> </subsection></section></subtitle><subtitle id="H629CDADD35AF4ABA8894D2A306EF2CE3"><enum>F</enum><header>Public Institutions</header> <section id="H37E3CB69C0E74D30ABED6BFF1D875211"><enum>261.</enum><header>Public institutions</header><text display-inline="no-display-inline">Section 399A of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6371h-1">42 U.S.C. 6371h–1</external-xref>) is amended—</text> <paragraph id="H809DFECA40A84865B4D06879BB366915"><enum>(1)</enum><text>in subsection (a)(5), by striking <quote>or a designee</quote> and inserting <quote>an Indian tribe, a not-for-profit hospital or not-for-profit inpatient health care facility, or a designated agent</quote>;</text> </paragraph><paragraph id="H337ECC5525BA4092BE4215DD229A7471"><enum>(2)</enum><text>in subsection (c)(1), by striking subparagraph (C);</text> </paragraph><paragraph id="H28E30427ECDB4296BD1D31839BDE754F"><enum>(3)</enum><text>in subsection (f)(3)(A), by striking <quote>$1,000,000</quote> and inserting <quote>$2,500,000</quote>; and</text> </paragraph><paragraph id="HB69FF653C2644A778C81C551A54138F9"><enum>(4)</enum><text>in subsection (i)(1), by striking <quote>$250,000,000 for each of fiscal years 2009 through 2013</quote> and inserting <quote>$250,000,000 for each of fiscal years 2010 through 2015</quote>.</text> </paragraph></section><section id="H5DEF1F5A3DA944669183854A0B9C68EE"><enum>262.</enum><header>Community energy efficiency flexibility</header><text display-inline="no-display-inline">Section 545(b)(3) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17155">42 U.S.C. 17155(b)(3)</external-xref>) is amended—</text> <paragraph id="H3ECED18B5C4F4FA9B91B9FF8FFBFBCF5"><enum>(1)</enum><text>by striking <quote>Indian tribe may use</quote> and all that follows through <quote>for administrative expenses</quote> and inserting <quote>Indian tribe may use for administrative expenses</quote>;</text> </paragraph><paragraph id="H1D657B4807ED452CB9DE049E62916B36"><enum>(2)</enum><text>by striking subparagraphs (B) and (C);</text> </paragraph><paragraph id="H0B87A810A70041DFBCE8201F39977979"><enum>(3)</enum><text>by redesignating the remaining clauses (i) and (ii) as subparagraphs (A) and (B), respectively and adjusting the margin of those subparagraphs accordingly; and</text> </paragraph><paragraph id="HC1542501CD264638A1CA9EF824546054"><enum>(4)</enum><text>by striking the semicolon at the end and inserting a period.</text> </paragraph></section><section id="H4E3090EE5E594F94BD3B3CBD03207535"><enum>263.</enum><header>Small community joint participation</header> <subsection id="H20114E699B6742DE81BCDA1C7A34517B"><enum>(a)</enum><text>Section 541(3)(A) of the Energy Independence and Security Act of 2007 is amended in clause (i) by striking <quote>and</quote> at the end of subclause (II), in clause (ii) by striking the period at the end of subclause (II) and inserting <quote>; or</quote>, and by inserting the following new clause (iii):</text> <quoted-block display-inline="no-display-inline" id="HE60086E6F5A64D5FAFB1E97AC78AA3C3" style="OLC"> <clause id="H5083BB37F2884C258A728DDCE3F6BFA0" indent="up1"><enum>(iii)</enum><text>a group of adjacent, contiguous, or geographically proximate units of local government that reach agreement to act jointly for purposes of this section and that represent a combined population of not less than 35,000.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H0B22079643DE430E9C037B6700C78F9F"><enum>(b)</enum><text>Section 541(3)(B) of the Energy Independence and Security Act of 2007 is amended in clause (i) by striking <quote>or</quote>, in clause (ii) by striking the period at the end and inserting <quote>; or</quote>, and by inserting the following new clause (iii):</text> <quoted-block id="H54DD8A996339416ABDB9F4AE74B00D5A" style="OLC"> <clause id="H187B849B65C14C9AAC1C85A4DEF63504" indent="up1"><enum>(iii)</enum><text>a group of adjacent, contiguous, or geographically proximate units of local government that reach agreement to act jointly for purposes of this section and that represent a combined population of not less than 50,000.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HAA786F1C45D544E783C8DC3AC7F91981"><enum>264.</enum><header>Low income community energy efficiency program</header> <subsection id="H512FE867275A4B518BFCC393F0C18BB6"><enum>(a)</enum><header>In general</header><text>The Secretary of Energy is authorized to make grants to private, nonprofit, mission-driven community development organizations including community development corporations and community development financial institutions to provide financing to businesses and projects that improve energy efficiency; identify and develop alternative, renewable, and distributed energy supplies; provide technical assistance and promote job and business opportunities for low-income residents; and increase energy conservation in low income rural and urban communities.</text> </subsection><subsection id="HC140E7C0889447B08F90FE1279EB6AC4"><enum>(b)</enum><header>Grants</header><text>The purpose of such grants is to increase the flow of capital and benefits to low income communities, minority-owned and woman-owned businesses and entrepreneurs and other projects and activities located in low income communities in order to reduce environmental degradation, foster energy conservation and efficiency and create job and business opportunities for local residents. The Secretary may make grants on a competitive basis for—</text> <paragraph id="H336C88A96EB64CABA37B986B431D8496"><enum>(1)</enum><text>investments that develop alternative, renewable, and distributed energy supplies;</text> </paragraph><paragraph id="H3A3D6FE3E20D4B2EAFFCB335513AF955"><enum>(2)</enum><text>capitalizing loan funds that lend to energy efficiency projects and energy conservation programs;</text> </paragraph><paragraph id="H321ACC8F32354C55AC2D6356B8AC843E"><enum>(3)</enum><text>technical assistance to plan, develop, and manage an energy efficiency financing program; and</text> </paragraph><paragraph id="H1B5DFE05328E49379E5E69EDC26A341B"><enum>(4)</enum><text>technical and financial assistance to assist small-scale businesses and private entities develop new renewable and distributed sources of power or combined heat and power generation.</text> </paragraph></subsection><subsection id="HBA67D7D03F6F497B93AAF6F01D002FC0"><enum>(c)</enum><header>Authorization of Appropriations</header><text>For the purposes of this section there is authorized to be appropriated $50,000,000 for each of the fiscal years 2010 through 2015.</text> </subsection></section><section id="H2E0A7AE763A5421EA47B22479CEC210E"><enum>265.</enum><header>Consumer behavior research</header> <subsection id="H37B22F9BBE1C4B159713312782B62478"><enum>(a)</enum><header>In general</header><text>The Secretary of Energy is authorized to establish a research program to identify the factors affecting consumer actions to conserve energy and make improvements in energy efficiency. Through the program the Secretary will make grants to public and private institutions of higher education to study the effects of consumer behavior on total energy use; potential energy savings from changes in consumption habits; the ability to reduce greenhouse gas emissions through changes in energy consumption habits; increase public awareness of Federal climate adaptation and mitigation programs; and the potential for alterations in consumer behavior to further American energy independence. Grants may also fund projects that evaluate or inform public knowledge of the effects of energy consumption habits on these topics.</text> </subsection><subsection id="H69731E5EEEFB4112BB45A5E3E8D1C991"><enum>(b)</enum><header>Grants</header><text>The purpose of the program is to provide grants to public and private institutions of higher education to carry out projects which will improve understanding of the effects of consumer behavior on energy consumption and conservation. The Secretary shall make grants on a competitive basis for—</text> <paragraph id="H2E534CCAB3F04BD2977780E112601A2D"><enum>(1)</enum><text>studies of the effects of consumer habits on energy consumption and conservation;</text> </paragraph><paragraph id="HA1FFC3FF51B54CB5B53D2484829A3E62"><enum>(2)</enum><text>development of strategies that communicate the importance of energy efficiency and conservation to consumers;</text> </paragraph><paragraph id="HD6DB0EEAE1B946BFA791BBECC10C38F8"><enum>(3)</enum><text>identification of best practices to improve consumer energy use habits;</text> </paragraph><paragraph id="HEDB1866E187645AFAEE29631D306CF75"><enum>(4)</enum><text>education programs that inform consumers about the implications of consumption habits on energy use and climate change;</text> </paragraph><paragraph id="H62DA6B80EAE44647ADEAC4C2F98504A9"><enum>(5)</enum><text>evaluation of the effectiveness of programs designed to promote public awareness of Federal Government climate adaptation and mitigation activities; and</text> </paragraph><paragraph id="H004B637298AA4020A3F24AB4238F257F"><enum>(6)</enum><text>other projects that advance the mission of the program.</text> </paragraph></subsection><subsection id="HCD5C4934439D4DF5894C98A2B3D141C0"><enum>(c)</enum><header>Report</header><text>The Secretary of Energy shall provide Congress with a report on progress towards establishing the program within 120 days after the date of enactment of this Act.</text> </subsection><subsection id="HCDA9626D940F4672A3873CD06BCBEF98"><enum>(d)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated such sums as may be necessary to carry out this section.</text> </subsection></section></subtitle><subtitle id="H15049360BAC84BFBACAAB6EDAB00833C"><enum>G</enum><header>Miscellaneous</header> <section id="HD408E8E64735467385C0C82496DF5E4C"><enum>271.</enum><header>Energy efficient information and communications technologies</header><text display-inline="no-display-inline">Section 543 of the National Energy Conservation Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HCBCEF6E786974D158B6F527A3F598CBE" style="OLC"> <section id="HB15586B4363A47448F59B6CE301B46F6"><enum>543.</enum><header>Energy efficient information and communications technologies</header> <subsection id="HDCC953544CA544ABA5B927235CEC66F0"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of the <short-title>American Clean Energy and Security Act of 2009</short-title>, each Federal agency shall collaborate with the Director of the Office of Management and Budget (referred to in this section as the <quote>Director</quote>) to create an implementation strategy, including best practices and measurement and verification techniques, for the purchase and use of energy efficient information and communications technologies and practices. Wherever possible, existing standards, specifications, performance metrics, and best management practices that have been or are being developed in open collaboration and with broad stakeholder input and review should be incorporated. In addition, agency strategies shall be flexible, cost-effective, and based on the specific operating requirements and statutory mission of each agency.</text> </subsection><subsection id="H225A6991C8CF40B4B4FE950EAA1FFD93"><enum>(b)</enum><header>Energy efficient information and communications technologies</header><text>In developing an implementation strategy, each agency shall—</text> <paragraph id="H8A07FFADF9234A5B99D1F428ACF2EA1C"><enum>(1)</enum><text>consider information and communications technologies and infrastructure, including, but not limited to, advanced metering infrastructure, information and communications technology services and products, efficient data center strategies, applications modernization and rationalization, building systems energy efficiency, and telework; and</text> </paragraph><paragraph id="HF5B830F8D2B74A6AA1A679C31C88E261"><enum>(2)</enum><text>ensure that agencies are eligible to realize the savings and rewards brought about through increased efficiencies.</text> </paragraph></subsection><subsection id="H52B27F9EFE8B492391BD07DF1ABC815C"><enum>(c)</enum><header>Performance goals</header><text display-inline="yes-display-inline">Not later than 6 months after the date of enactment of the <short-title>American Clean Energy and Security Act of 2009</short-title>, the Director shall establish performance goals for evaluating the efforts of the agencies in improving the maintenance, purchase and use of energy efficiency of information and communications technology systems. These performance goals should measure information technology costs over a specific time horizon (3 to 5 years), providing a complete picture of all costs, including energy.</text> </subsection><subsection id="H96C2A90922CF4A74BA859A791A874D3F"><enum>(d)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 18 months after the date of enactment of the <short-title>American Clean Energy and Security Act of 2009</short-title>, and annually thereafter, the Director shall submit a report to Congress on—</text> <paragraph id="H97DA0F55DA114228B1D96A96EBD55D93"><enum>(1)</enum><text>the progress of each agency in reducing energy use through its implementation strategy; and</text> </paragraph><paragraph id="HA1CE6378DB034D1EA810E8A11CB0AEF6"><enum>(2)</enum><text>new and emerging technologies that would help achieve increased energy efficiency.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HF8E4F59CC6FD4EBA94888105C5471AB9"><enum>272.</enum><header>National energy efficiency goals</header> <subsection id="H3DB006A7E9C14B2CAF7C2F73629868EE"><enum>(a)</enum><header>Goals</header><text display-inline="yes-display-inline">The energy efficiency goals of the United States are—</text> <paragraph id="H7696A0F7F8FC409884348D383C10B23C"><enum>(1)</enum><text>to achieve an improvement in the overall energy productivity of the United States (measured in gross domestic product per unit of energy input) of at least 2.5 percent per year by the year 2012; and</text> </paragraph><paragraph id="HA18F1B675443413C9C3EA53F66806DDB"><enum>(2)</enum><text>to maintain that annual rate of improvement each year through 2030.</text> </paragraph></subsection><subsection id="HFE054CA692E6411396E1C7A7608FDCD9"><enum>(b)</enum><header>Strategic Plan</header> <paragraph id="H2DFF6D8E13004CC0BD53F047EEDF0DF9"><enum>(1)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary of Energy (referred to in this section as the <quote>Secretary</quote>), in cooperation with the Administrator and the heads of other appropriate Federal agencies, shall develop a strategic plan to achieve the national goals for improvement in energy productivity established under subsection (a).</text> </paragraph><paragraph id="HA71EDA527C054C38810252528A7F9166"><enum>(2)</enum><header>Public input and comment</header><text>The Secretary shall develop the plan in a manner that provides appropriate opportunities for public input and comment.</text> </paragraph></subsection><subsection id="H518B6E9D2C9E458BBE7FE7672D07AF56"><enum>(c)</enum><header>Plan contents</header><text>The strategic plan shall—</text> <paragraph id="H1AC3D21D4F104E548721CD5188C869BB"><enum>(1)</enum><text>identify future regulatory, funding, and policy priorities that would assist the United States in meeting the national goals;</text> </paragraph><paragraph id="H2CC93A305CCF430588FD885B5E62C1F8"><enum>(2)</enum><text>include energy savings estimates for each sector; and</text> </paragraph><paragraph id="H8608E810E3D34645B7077F5861FFFB7E"><enum>(3)</enum><text>include data collection methodologies and compilations used to establish baseline and energy savings data.</text> </paragraph></subsection><subsection id="HBA57CD22B0414AEE9FECCE0CE36F23C9"><enum>(d)</enum><header>Plan updates</header> <paragraph id="HCBFE21732D7B40BD833C82691F88DF36"><enum>(1)</enum><header>In general</header><text>The Secretary shall—</text> <subparagraph id="H8B51629403A447E0AD99AA8800AEE872"><enum>(A)</enum><text>update the strategic plan biennially; and</text> </subparagraph><subparagraph id="H2AA6362041F74B33B327721D5CFA0E43"><enum>(B)</enum><text>include the updated strategic plan in the national energy policy plan required by section 801 of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7321">42 U.S.C. 7321</external-xref>).</text> </subparagraph></paragraph><paragraph id="H71188A5707B94E59AD721113BE8D796A"><enum>(2)</enum><header>Contents</header><text>In updating the plan, the Secretary shall—</text> <subparagraph id="H447ABB4B51E04DE19CCF4D837A67709F"><enum>(A)</enum><text>report on progress made toward implementing efficiency policies to achieve the national goals established under subsection (a); and</text> </subparagraph><subparagraph id="H6CF189EBD6E242DFACECF206CCEFB2FB"><enum>(B)</enum><text>verify, to the maximum extent practicable, energy savings resulting from the policies.</text> </subparagraph></paragraph></subsection><subsection id="H73E0402F945E4752A81D2CBE3EB4871B"><enum>(e)</enum><header>Report to Congress and the public</header><text>The Secretary shall submit to Congress, and make available to the public, the initial strategic plan developed under subsection (b) and each updated plan.</text> </subsection></section><section id="H6A956AB725CF44B192B907197340A603" section-type="subsequent-section"><enum>273.</enum><header>Affiliated island energy independence team</header> <subsection id="H6A67CC41068C489DB29B2BBF9A731609"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H305800750CB544EFA844572451A7C001"><enum>(1)</enum><header>Affiliated island</header><text>The term <term>affiliated island</term> means—</text> <subparagraph id="HA80BA2EA738A4C36AFBE8970FC70ADFB"><enum>(A)</enum><text>the Commonwealth of Puerto Rico;</text> </subparagraph><subparagraph id="H313D0D4B99BE4C279AD3A3499E2CF7E2"><enum>(B)</enum><text>Guam;</text> </subparagraph><subparagraph id="H8BB6B10C8BC548DDA1D4801CBFABAA2F"><enum>(C)</enum><text>American Samoa;</text> </subparagraph><subparagraph id="H3A54D31AB6C34B848BDD9364764A5A07"><enum>(D)</enum><text>the Commonwealth of the Northern Mariana Islands;</text> </subparagraph><subparagraph id="H6A3163379A1D4AEABFFA31DC17E47F01"><enum>(E)</enum><text>the Federated States of Micronesia;</text> </subparagraph><subparagraph id="H699F69B8D42C4910942140A58CFB3F80"><enum>(F)</enum><text>the Republic of the Marshall Islands;</text> </subparagraph><subparagraph id="H6277323A03054D02B1ADF6CAA45C82FD"><enum>(G)</enum><text>the Republic of Palau; and</text> </subparagraph><subparagraph id="H197DE2E9BE8A4459AE6CCA8045D9748C"><enum>(H)</enum><text>the United States Virgin Islands.</text> </subparagraph></paragraph><paragraph id="H8498398FFA394502B2CC5CE82644B143"><enum>(2)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy (acting through the Assistant Secretary of Energy Efficiency and Renewable Energy), in consultation with the Secretary of the Interior and the Secretary of State.</text> </paragraph><paragraph id="H5CA9B4E9DAFD4570B9F75E3828BD4225"><enum>(3)</enum><header>Team</header><text>The term <term>team</term> means the team established by the Secretary under subsection (b).</text> </paragraph></subsection><subsection id="H9075960253794FDA89EACEE86040E026"><enum>(b)</enum><header>Establishment</header><text>As soon as practicable after the date of enactment of this Act, the Secretary shall assemble a team of technical, policy, and financial experts to address the energy needs of each affiliated island—</text> <paragraph id="H1EE767C4CE844863BB190438F90B7A1D"><enum>(1)</enum><text>to reduce the reliance and expenditure of each affiliated island on imported fossil fuels;</text> </paragraph><paragraph id="H091758F0B5FC423199937CEF2D64D388"><enum>(2)</enum><text>to increase the use by each affiliated island of indigenous, nonfossil fuel energy sources;</text> </paragraph><paragraph commented="no" id="H0D3F1F677E4243889CD5E05B26990AF5"><enum>(3)</enum><text>to improve the performance of the energy infrastructure of the affiliated island through projects—</text> <subparagraph commented="no" id="H4D3E61631B34460E8F10AFEADFCCBC8F"><enum>(A)</enum><text>to improve the energy efficiency of power generation, transmission, and distribution; and</text> </subparagraph><subparagraph commented="no" id="HE071E2937EBD4BC48243B5AD0C914C7B"><enum>(B)</enum><text>to increase consumer energy efficiency;</text> </subparagraph></paragraph><paragraph id="H1C7EA221955E4AD39FB8E0EE8066CCC7"><enum>(4)</enum><text>to improve the performance of the energy infrastructure of each affiliated island through enhanced planning, education, and training;</text> </paragraph><paragraph id="HF9054F10A6464ED4BC2613F5C93B1B3F"><enum>(5)</enum><text>to adopt research-based and public-private partnership-based approaches as appropriate;</text> </paragraph><paragraph id="HD19318DF66474F94B51B54AC58437334"><enum>(6)</enum><text>to stimulate economic development and job creation; and</text> </paragraph><paragraph id="H3E29CB4C3E5245C2B8A603A52B8BF691"><enum>(7)</enum><text>to enhance the engagement by the Federal Government in international efforts to address island energy needs.</text> </paragraph></subsection><subsection id="H3D1D9E09477F400EB963502F0F9B8F71"><enum>(c)</enum><header>Duties of team</header> <paragraph id="H5BECA80F169F4D71966F496D6E42C5B8"><enum>(1)</enum><header>Energy Action Plans</header> <subparagraph id="HF21137D8C09042CEABA6530A1EBBE015"><enum>(A)</enum><header>In general</header><text>In accordance with subparagraph (B), the team shall provide technical, programmatic, and financial assistance to each utility of each affiliated island, and the government of each affiliated island, as appropriate, to develop and implement an energy Action Plan for each affiliated island to reduce the reliance of each affiliated island on imported fossil fuels through increased efficiency and use of indigenous clean-energy resources.</text> </subparagraph><subparagraph id="HA41E1AC67089453A8CAA98F850CE8D2F"><enum>(B)</enum><header>Requirements</header><text>Each Action Plan described in subparagraph (A) for each affiliated island shall require and provide for—</text> <clause id="H1CF8217230D24A95AEE38086325604FD"><enum>(i)</enum><text>the conduct of 1 or more studies to assess opportunities to reduce fossil fuel use through—</text> <subclause id="HE2687059FE07475C96A4F8E90BD71220"><enum>(I)</enum><text>the improvement of the energy efficiency of the affiliated island; and</text> </subclause><subclause id="H12E24551439B4162B798574B447DBB5B"><enum>(II)</enum><text>the increased use by the affiliated island of indigenous clean-energy resources;</text> </subclause></clause><clause id="H8663C37B3B90492984C4ECD4F02E0127"><enum>(ii)</enum><text>the identification and implementation of the most cost-effective strategies and projects to reduce the dependence of the affiliated island on fossil fuels;</text> </clause><clause id="HA655EC0386424CE6A1ADAD32D68B5B3F"><enum>(iii)</enum><text>the promotion of education and training activities to improve the capacity of the local utilities of the affiliated island, and the government of the affiliated island, as appropriate, to plan for, maintain, and operate the energy infrastructure of the affiliated island through the use of local or regional institutions, as appropriate;</text> </clause><clause id="H3A8AADB9D34A4B859BABBBF5FB90424E"><enum>(iv)</enum><text>the coordination of the activities described in clause (iii) to leverage the expertise and resources of international entities, the Department of Energy, the Department of the Interior, and the regional utilities of the affiliated island;</text> </clause><clause id="H2A7E46DC843341E3A955CE1749912B30"><enum>(v)</enum><text>the identification, and development, as appropriate, of research-based and private-public, partnership approaches to implement the Action Plan; and</text> </clause><clause id="HF34923369701416E9AA15E8D0030AF35"><enum>(vi)</enum><text>any other component that the Secretary determines to be necessary to reduce successfully the use by each affiliated island of fossil fuels.</text> </clause></subparagraph></paragraph><paragraph id="H45FD615C9AD94EB79BDA549551A37DA8"><enum>(2)</enum><header>Reports to Secretary</header><text>Not later than 1 year after the date on which the Secretary establishes the team and biennially thereafter, the team shall submit to the Secretary a report that contains a description of the progress of each affiliated island in—</text> <subparagraph id="HD321951918334F02A2AFAD1CDB59FA2D"><enum>(A)</enum><text>implementing the Action Plan of the affiliated island developed under paragraph (1)(A); and</text> </subparagraph><subparagraph id="H90B709FCBE444CF8825463CAFDB762EC"><enum>(B)</enum><text>reducing the reliance of the affiliated island on fossil fuels.</text> </subparagraph></paragraph></subsection><subsection id="H4E3B6D9229264EBD8A578733150136EA"><enum>(d)</enum><header>Use of regional utility organizations</header><text>To provide expertise to affiliated islands to assist the affiliated islands in meeting the purposes of this section, the Secretary shall consider—</text> <paragraph id="H6C820E920E53425495D599759477A047"><enum>(1)</enum><text>including regional utility organizations in the establishment of the team; and</text> </paragraph><paragraph id="H7B0D3FA6FBFA4AAAA4C5325DB6D98CAD"><enum>(2)</enum><text>providing assistance through regional utility organizations.</text> </paragraph></subsection><subsection id="H01CBE24612A1492E93B7D2C6C4470BC0"><enum>(e)</enum><header>Annual reports to Congress</header><text display-inline="yes-display-inline">Not later than 30 days after the date on which the Secretary receives a report submitted by the team under subsection (c)(2), the Secretary shall submit to the appropriate committees of Congress a report that contains a summary of the report of the team.</text> </subsection><subsection id="H2C76AE0B7EB642F9A8F20E93F6C883FB"><enum>(f)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated such sums as are necessary to carry out this section.</text> </subsection></section><section id="H4B465B2B3AAD48F295D5DB0F6F77AD9A"><enum>274.</enum><header>Product carbon disclosure program</header> <subsection id="H38109E135D9B4D2DB5DB35E3F09B8F97"><enum>(a)</enum><header>EPA Study</header><text display-inline="yes-display-inline">The Administrator shall conduct a study to determine the feasibility of establishing a national program for measuring, reporting, publicly disclosing, and labeling products or materials sold in the United States for their carbon content, and shall, not later than 18 months after the date of enactment of this Act, transmit a report to Congress which shall include the following:</text> <paragraph id="H9E0ACCFA0CF44524819E12906AE6C06C"><enum>(1)</enum><text display-inline="yes-display-inline">A determination of whether a national product carbon disclosure program and labeling program would be effective in achieving the intended goals of achieving greenhouse gas reductions and an examination of existing programs globally and their strengths and weaknesses.</text> </paragraph><paragraph id="H5CD4D8BF31214AEF8E81FA9C1003F0F1"><enum>(2)</enum><text>Criteria for identifying and prioritizing sectors and products and processes that should be covered in such program or programs.</text> </paragraph><paragraph id="H308F0B379FC64D72A553BC7F2318E030"><enum>(3)</enum><text>An identification of products, processes, or sectors whose inclusion could have a substantial carbon impact (prioritizing industrial products such as iron and steel, aluminum, cement, chemicals, and paper products, and also including food, beverage, hygiene, cleaning, household cleaners, construction, metals, clothing, semiconductor, and consumer electronics).</text> </paragraph><paragraph id="H938B3B0172A6476088A7766BFC4C6234"><enum>(4)</enum><text>Suggested methodology and protocols for measuring the carbon content of the products across the entire carbon lifecycle of such products for use in a carbon disclosure program and labeling program.</text> </paragraph><paragraph id="H6C2C5A6C27E142D0B46E628EF730BE3A"><enum>(5)</enum><text>A review of existing greenhouse gas product accounting standards, methodologies, and practices including the Greenhouse Gas Protocol, ISO 14040/44, ISO 14067, and Publically Available Specification 2050, and including a review of the strengths and weaknesses of each.</text> </paragraph><paragraph id="H72128990FDDB44B78CF148C38E575F75"><enum>(6)</enum><text display-inline="yes-display-inline">A survey of secondary databases including the Manufacturing Energy Consumption Survey and evaluate the quality of data for use in a product carbon disclosure program and product carbon labeling program and an identification of gaps in the data relative to the potential purposes of a national product carbon disclosure program and product carbon labeling program and development of recommendations for addressing these data gaps.</text> </paragraph><paragraph id="HCE78B6DAB53441F2B742D95DC9F37124"><enum>(7)</enum><text>An assessment of the utility of comparing products and the appropriateness of product carbon standards.</text> </paragraph><paragraph id="H3FDF262EA72145C79E41AC043233CDE6"><enum>(8)</enum><text>An evaluation of the information needed on a label for clear and accurate communication, including what pieces of quantitative and qualitative information needs to be disclosed.</text> </paragraph><paragraph id="H6259B8BACB88494D9CEF076715820E9C"><enum>(9)</enum><text>An evaluation of the appropriate boundaries of the carbon lifecycle analysis for different sectors and products.</text> </paragraph><paragraph id="H8ABD86AD12584E13AE5DD5DAFDE7B287"><enum>(10)</enum><text>An analysis of whether default values should be developed for products whose producer does not participate in the program or does not have data to support a disclosure or label and determine best ways to develop such default values.</text> </paragraph><paragraph id="H939C8D6E037746AA8077A89146657966"><enum>(11)</enum><text>A recommendation of certification and verification options necessary to assure the quality of the information and avoid greenwashing or the use of insubstantial or meaningless environmental claims to promote a product.</text> </paragraph><paragraph id="H00F5483AED4846D6BE93A034AAF52E0D"><enum>(12)</enum><text display-inline="yes-display-inline">An assessment of options for educating consumers about product carbon content and the product carbon disclosure program and product carbon labeling program.</text> </paragraph><paragraph id="HCE5AD4B2DCA0446CBABAE12CCCC11AA2"><enum>(13)</enum><text display-inline="yes-display-inline">An analysis of the costs and timelines associated with establishing a national product carbon disclosure program and product carbon labeling program, including options for a phased approach. Costs should include those for businesses associated with the measurement of carbon footprints and those associated with creating a product carbon label and managing and operating a product carbon labeling program, and options for minimizing these costs.</text> </paragraph><paragraph id="H5FD26664E871453E8A68AB8AC8D1C477"><enum>(14)</enum><text display-inline="yes-display-inline">An evaluation of incentives (such as financial incentives, brand reputation, and brand loyalty) to determine whether reductions in emissions can be accelerated through encouraging more efficient manufacturing or by encouraging preferences for lower-emissions products to substitute for higher-emissions products whose level of performance is no better.</text> </paragraph></subsection><subsection id="HBFBCE60BADDF4E4DA30B2FAD0136D581"><enum>(b)</enum><header>Development of national carbon disclosure program</header><text display-inline="yes-display-inline">Upon conclusion of the study, and not more than 36 months after the date of enactment of this Act, the Administrator shall establish a national product carbon disclosure program, participation in which shall be voluntary, and which may involve a product carbon label with broad applicability to the wholesale and consumer markets to enable and encourage knowledge about carbon content by producers and consumers and to inform efforts to reduce energy consumption (carbon dioxide equivalent emissions) nationwide. In developing such a program, the Administrator shall—</text> <paragraph id="HB8AE97DE2CA846DB8BDD247EEA2840AF"><enum>(1)</enum><text>consider the results of the study conducted under subsection (a);</text> </paragraph><paragraph id="H15471C250D6F4772A2A1FAED7C8ACDD6"><enum>(2)</enum><text>consider existing and planned programs and proposals and measurement standards (including the Publicly Available Specification 2050, standards to be developed by the World Resource Institute/World Business Council for Sustainable Development, the International Standards Organization, and the bill AB19 pending in the California legislature);</text> </paragraph><paragraph id="HD031B87E608B45C187444B135DA0C17E"><enum>(3)</enum><text display-inline="yes-display-inline">consider the compatibility of a national product carbon disclosure program with existing programs;</text> </paragraph><paragraph id="H7929E5BCEAF14AD4BB30A49BE7962130"><enum>(4)</enum><text display-inline="yes-display-inline">utilize incentives and other means to spur the adoption of product carbon disclosure and product carbon labeling;</text> </paragraph><paragraph id="H76C0B23EA3D74F9FA6BCE65FAB34E40B"><enum>(5)</enum><text display-inline="yes-display-inline">develop protocols and parameters for a product carbon disclosure program, including a methodology and formula for assessing, verifying, and potentially labeling a product’s greenhouse gas content, and for data quality requirements to allow for product comparison;</text> </paragraph><paragraph id="H4CB64C4B1C894A7C9F11A5C69B086CE1"><enum>(6)</enum><text>create a means to—</text> <subparagraph id="H409179A75B23416DBF0D4092A9C08E2E"><enum>(A)</enum><text>document best practices;</text> </subparagraph><subparagraph id="HE4938205618042DA919D1D7EF9C36274"><enum>(B)</enum><text>ensure clarity and consistency;</text> </subparagraph><subparagraph id="H67EA64196DDB429DAC2E86FA44BF70DE"><enum>(C)</enum><text>work with suppliers, manufacturers, and retailers to encourage participation;</text> </subparagraph><subparagraph id="HFB5765A795E943B68322BF7FB50F56E5"><enum>(D)</enum><text>ensure that protocols are consistent and comparable across like products; and</text> </subparagraph><subparagraph id="H67A2AF4C50D841BF860430374FE34F6F"><enum>(E)</enum><text>evaluate the effectiveness of the program;</text> </subparagraph></paragraph><paragraph id="H4B96CBF9F7814DA7A8ABE866587FE637"><enum>(7)</enum><text>make publicly available information on product carbon content to ensure transparency;</text> </paragraph><paragraph id="HEAE4DC1806DC4F7581F57FB304FBCB2E"><enum>(8)</enum><text>provide for public outreach, including a consumer education program to increase awareness;</text> </paragraph><paragraph id="H6DE2FED2CDCA46DDB159974D46853C9B"><enum>(9)</enum><text>develop training and education programs to help businesses learn how to measure and communicate their carbon footprint and easy tools and templates for businesses to use to reduce cost and time to measure their products’ carbon lifecycle;</text> </paragraph><paragraph id="H8872A43C4B274670886A565045B5B539"><enum>(10)</enum><text>consult with the Secretary of Energy, the Secretary of Commerce, the Federal Trade Commission, and other Federal agencies, as necessary;</text> </paragraph><paragraph id="H9E357F226F9543CAB8B3EB0C55523C37"><enum>(11)</enum><text display-inline="yes-display-inline">gather input from stakeholders through consultations, public workshops or hearings with representatives of consumer product manufacturers, consumer groups, and environmental groups;</text> </paragraph><paragraph id="H290483B954E64BBA8946DD51BB096A80"><enum>(12)</enum><text>utilize systems for verification and product certification that will ensure that claims manufacturers make about their products are valid;</text> </paragraph><paragraph id="HC0225B7D0CB9409993C0E695ED9CEF36"><enum>(13)</enum><text display-inline="yes-display-inline">create a process for reviewing the accuracy of product carbon label information and protecting the product carbon label in the case of a change in the product’s energy source, supply chain, ingredients, or other factors, and specify the frequency to which data should be updated; and</text> </paragraph><paragraph id="HB2B012333EBE4C8D8B644FCBEC88F102"><enum>(14)</enum><text>develop a standardized, easily understandable carbon label, if appropriate, and create a process for responding to inaccuracies and misuses of such a label.</text> </paragraph></subsection><subsection id="H54D7AD6AA5444A83B02216D8295AF28E"><enum>(c)</enum><header>Report to Congress</header><text>Not later than 5 years after the program is established pursuant to subsection (b), the Administrator shall report to Congress on the effectiveness and impact of the program, the level of voluntary participation, and any recommendations for additional measures.</text> </subsection><subsection id="HD76C79A147AB4C2684A2539E8B6F09C8"><enum>(d)</enum><header>Definitions</header><text>As used in this section—</text> <paragraph id="H4DBD51E1EC6D498E837727C7ECD2293E"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>carbon content</term> means the amount of greenhouse gas emissions and their warming impact on the atmosphere expressed in carbon dioxide equivalent associated with a product’s value chain;</text> </paragraph><paragraph id="HB656413FEC624BC68554F6C2F5AC860E"><enum>(2)</enum><text>the term <term>carbon footprint</term> means the level of greenhouse gas emissions produced by a particular activity, service, or entity; and</text> </paragraph><paragraph id="H66459225CA7942D0A26E2054A1F0226E"><enum>(3)</enum><text>the term <term>carbon lifecycle</term> means the greenhouse gas emissions that are released as part of the processes of creating, producing, processing or manufacturing, modifying, transporting, distributing, storing, using, recycling, or disposing of goods and services.</text> </paragraph></subsection><subsection id="HBDEF9E23450146878A8E72CD302AA88E"><enum>(e)</enum><header>Authorization of Appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated to the Administrator $5,000,000 for the study required by subsection (a) and $25,000,000 for each of fiscal years 2010 through 2025 for the program required under subsection (b).</text> </subsection></section><section id="HA966A6F5AD04437C8577BA3DE477D95F"><enum>275.</enum><header>Industrial energy efficiency education and training initiative</header> <subsection id="H80D1F2BF54D64F04A509968E971D5560"><enum>(a)</enum><header>In general</header><text>The Secretary of Energy shall carry out a national education and awareness program for the purpose of informing building, facility, and industrial plant owners and managers and decisionmakers, government leaders, and industry leaders about the large energy-saving potential of greater use of mechanical insulation, and other benefits.</text> </subsection><subsection id="HED2C8D5F0A4F438EBC3DF993B360D4DF"><enum>(b)</enum><header>Purpose and Goals</header> <paragraph id="H9BBA4948A8F64DA384FBA61BA9E53D5A"><enum>(1)</enum><header>Purpose</header><text>The purpose of the initiative shall be to increase the energy efficiency of the commercial and industrial sectors through an ongoing program that will include—</text> <subparagraph id="HC5714CDD66774BBFB8D06A465FD0D415"><enum>(A)</enum><text display-inline="yes-display-inline">education and training sessions;</text> </subparagraph><subparagraph id="HEC3DCA28F73F4C1498B0F995989B1F05"><enum>(B)</enum><text>Web-based information; and</text> </subparagraph><subparagraph id="H53F68BC5B8A9436B95A6A7BB119AE88E"><enum>(C)</enum><text>advertising.</text> </subparagraph></paragraph><paragraph id="H97695CE718A045A5A95B8F51580B3E67"><enum>(2)</enum><header>Goals</header><text display-inline="yes-display-inline">The goals of the initiative shall be to—</text> <subparagraph id="H8955001CFEC5421789679C2C66CBBD24"><enum>(A)</enum><text display-inline="yes-display-inline">educate and motivate commercial building owners and industrial facility managers to utilize mechanical insulation in new and existing facilities;</text> </subparagraph><subparagraph id="H55A79700BA2F4EC7848E30319B87052E"><enum>(B)</enum><text>preserve and create jobs while reducing energy and greenhouse gas emissions;</text> </subparagraph><subparagraph id="H1E1A57C2C5F149D0A059D5529D47FB20"><enum>(C)</enum><text>create a safer working environment and make businesses more competitive in a global economy; and</text> </subparagraph><subparagraph id="H79ADFB1B8DD8465BADF00A51C791AE4D"><enum>(D)</enum><text>motivate and empower the industry to make better use of mechanical insulation through awareness, education, and training.</text> </subparagraph></paragraph></subsection><subsection id="H36B64F44F40241578EB8BDEE42E4A9BE"><enum>(c)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than July 1, 2013, the Secretary shall submit to Congress a report describing the extent by which the initiative has been enacted and the actual and projected effectiveness of the program under this section, including the energy efficiency, greenhouse gas emissions reductions, cost savings, and safety benefits at manufacturing facilities, power plants, refineries, hospitals, universities, government buildings, and other commercial and industrial locations.</text> </subsection><subsection id="H2C557C83157B4CF58786773BEC2684EA"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated $3,500,000 for each of fiscal years 2010 through 2014 to carry out this section. The Secretary may enter into a cooperative agreement, including grant funding, with an industry association and union working collaboratively and having expertise on the installation, maintenance, measure of efficiencies and standards, and certification of mechanical insulation in buildings and facilities.</text> </subsection><subsection id="HD505D0E70C684E5D918A31D568AF1662"><enum>(e)</enum><header>Termination of authority</header><text>The program carried out under this section shall terminate on December 31, 2014.</text> </subsection></section><section id="H0BFF25C321494AF481CDA59786E22EAB"><enum>276.</enum><header>Sense of Congress</header><text display-inline="no-display-inline">It is the sense of Congress that the United States should—</text> <paragraph id="H84CA18ED322A4B07AB021DDF109153C3"><enum>(1)</enum><text>continue to actively promote, within the International Civil Aviation Organization, the development of a global framework for the regulation of greenhouse gas emissions from civil aircraft that recognizes the uniquely international nature of the industry and treats commercial aviation industries in all countries fairly; and</text> </paragraph><paragraph id="H9EC67FB0851044E4AEF41E4D7E2D8142"><enum>(2)</enum><text>work with foreign governments towards a global agreement that reconciles foreign carbon emissions reduction programs to minimize duplicative requirements and avoids unnecessary complication for the aviation industry, while still achieving the environmental goals.</text> </paragraph></section></subtitle><subtitle id="HE5AA8573466B40468FF561A063AFF040"><enum>H</enum><header>Green Resources for Energy Efficient Neighborhoods</header> <section display-inline="no-display-inline" id="H3C5864ABCC78482B9DD503CEAC2012A1" section-type="subsequent-section"><enum>281.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote><short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title></quote> or the <quote><short-title>GREEN Act of 2009</short-title></quote> .</text> </section><section display-inline="no-display-inline" id="H5F092DDB752B4AA08651C504DCFF2ECD" section-type="subsequent-section"><enum>282.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following definitions shall apply:</text> <paragraph id="HA10C95CA332A40DEBD094777061F67AF"><enum>(1)</enum><header>Green building standards</header><text>The term <term>green building standards</term> means standards to require use of sustainable design principles to reduce the use of nonrenewable resources, encourage energy-efficient construction and rehabilitation and the use of renewable energy resources, minimize the impact of development on the environment, and improve indoor air quality.</text> </paragraph><paragraph id="H80F693387A754D6E8B112502BC9B11E8"><enum>(2)</enum><header>HUD</header><text>The term <term>HUD</term> means the Department of Housing and Urban Development.</text> </paragraph><paragraph id="H5A2411A5E39B4758A829BAF00D2E04A0"><enum>(3)</enum><header>HUD assistance</header><text>The term <term>HUD assistance</term> means financial assistance that is awarded, competitively or noncompetitively, allocated by formula, or provided by HUD through loan insurance or guarantee.</text> </paragraph><paragraph id="H9C2466A2AEFB495C8AB565488BD45F25"><enum>(4)</enum><header>Nonresidential structure</header><text>The term <term>nonresidential structures</term> means only nonresidential structures that are appurtenant to single-family or multifamily housing residential structures, or those that are funded by the Secretary of Housing and Urban Development through the HUD Community Development Block Grant program.</text> </paragraph><paragraph id="HB92C6E91BF3147328B88750086330415"><enum>(5)</enum><header>Secretary</header><text>The term <term>Secretary</term>, unless otherwise specified, means the Secretary of Housing and Urban Development.</text> </paragraph></section><section display-inline="no-display-inline" id="H53D7851B82F44373840994F029BCDF27"><enum>283.</enum><header>Implementation of energy efficiency participation incentives for HUD programs</header> <subsection id="H607357ACB9904A7187AA1C1C758975D9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of the enactment of this Act, the Secretary shall issue such regulations as may be necessary to establish annual energy efficiency participation incentives to encourage participants in programs administered by the Secretary, including recipients under programs for which HUD assistance is provided, to achieve substantial improvements in energy efficiency.</text> </subsection><subsection id="H687A0E2351F84CD0A6DC509F701B523D"><enum>(b)</enum><header>Requirement for appropriation of funds</header><text>The requirement under subsection (a) for the Secretary to provide annual energy efficiency participation incentives pursuant to the provisions of this subtitle shall be subject to the annual appropriation of necessary funds.</text> </subsection></section><section display-inline="no-display-inline" id="H006F784DC8234A839F3FE6CA0BB7B10E" section-type="subsequent-section"><enum>284.</enum><header>Basic HUD energy efficiency standards and standards for additional credit</header> <subsection id="HEC2CBB6D7B844DD3933D7DAD07B75181"><enum>(a)</enum><header>Basic HUD standard</header> <paragraph id="HB918C36831D64492AC9B48D9920A8D58"><enum>(1)</enum><header>Residential structures</header><text display-inline="yes-display-inline">A residential single-family or multifamily structure shall be considered to comply with the energy efficiency standards under this subsection if—</text> <subparagraph id="HDFB3F6D8D66D4807B280DEFA2F285BE0"><enum>(A)</enum><text display-inline="yes-display-inline">the structure complies with an energy efficiency building code that has been certified as in compliance with section 304 of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6833">42 U.S.C. 6833</external-xref>) as amended by section 201 of this Act, or a national energy efficiency building code adopted pursuant to that section;</text> </subparagraph><subparagraph id="HD54A41F06672422F93BD89E57B1414E8"><enum>(B)</enum><text display-inline="yes-display-inline">the structure complies with the applicable provisions of the American Society of Heating, Refrigerating, and Air-Conditioning Engineers Standard 90.1–2007, as such standard or successor standard is in effect for purposes of this section pursuant subsection (c);</text> </subparagraph><subparagraph id="H73CBEA7E6E8E485ABF66CF656E5526E7"><enum>(C)</enum><text display-inline="yes-display-inline">the structure complies with the applicable provisions of the 2009 International Energy Conservation Code, as such standard or successor standard is in effect for purposes of this section pursuant subsection (c);</text> </subparagraph><subparagraph id="HCEA0474DE4564899A3F8711E5D2C025D"><enum>(D)</enum><text display-inline="yes-display-inline">in the case only of an existing structure, where determined cost effective, the structure has undergone rehabilitation or improvements, completed after the date of the enactment of this Act, and the energy consumption for the structure has been reduced by at least 20 percent from the previous level of consumption, as determined in accordance with energy audits performed both before and after any rehabilitation or improvements undertaken to reduce such consumption; or</text> </subparagraph><subparagraph id="H4B4D8038592A4DC5934F610344DCA4FF"><enum>(E)</enum><text display-inline="yes-display-inline">the structure complies with the applicable provisions of such other energy efficiency requirements, standards, checklists, or ratings systems as the Secretary may adopt and apply by regulation, as may be necessary, for purposes of this section for specific types of residential single-family or multifamily structures or otherwise, except that the Secretary shall make a determination regarding whether to adopt and apply any such requirements, standards, checklists, or rating system for purposes of this section not later than the expiration of the 180-day period beginning upon the date of receipt of any written request, made in such form as the Secretary shall provide, for such adoption and application.</text> </subparagraph><continuation-text continuation-text-level="paragraph">In addition to compliance with any of subparagraphs (A) through (E), the Secretary shall by regulation require, for any newly constructed residential single-family or multifamily structure to be considered to comply with the energy efficiency standards under this subsection, that the structure have appropriate electrical outlets with the facility and capacity to recharge a standard electric passenger vehicle, including an electric hybrid vehicle, where such vehicle would normally be parked.</continuation-text></paragraph><paragraph id="H4BE48184F4394D859E06571C24C990AB"><enum>(2)</enum><header>Nonresidential structures</header><text display-inline="yes-display-inline">For purposes of this section, the Secretary shall identify and adopt by regulation, as may be necessary, energy efficiency requirements, standards, checklists, or rating systems applicable to nonresidential structures that are constructed or rehabilitated with HUD assistance. A nonresidential structure shall be considered to comply with the energy efficiency standards under this subsection if the structure complies with the applicable provisions of any such energy efficiency requirements, standards, checklist, or rating systems identified and adopted by the Secretary pursuant to this paragraph, as such standards are in effect for purposes of this section pursuant to subsection (c).</text> </paragraph><paragraph id="H83AA8E2CCDA543F2B6FCBA8E3B0C59C5"><enum>(3)</enum><header>Effect</header><text>Nothing in this subsection may be construed to require any structure to comply with any standard established or adopted pursuant to this subsection, or identified in this subsection, or to provide any benefit or credit under any Federal program for any structure that complies with any such standard, except to the extent that—</text> <subparagraph id="H5DBC8A7694774F4792A8725AA46F69DE"><enum>(A)</enum><text>any provision of law other than this subsection provides a benefit or credit under a Federal program for compliance with a standard established or adopted pursuant to this subsection, or identified in this subsection; or</text> </subparagraph><subparagraph id="H2316B36A5C734D12885D26D5A3341F66"><enum>(B)</enum><text>the Secretary specifically provides pursuant to subsection (c) for the applicability of such standard.</text> </subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HF739411210F944BD8AF3B96290951914"><enum>(b)</enum><header>Enhanced energy efficiency standards for purposes of providing additional credit under certain federally assisted housing programs</header> <paragraph id="H4C8B09AA618944289164DC9395B3AFA2"><enum>(1)</enum><header>Purpose and effect</header> <subparagraph id="H76555D9A9680400D9D5C77A97CB54C06"><enum>(A)</enum><header>Purpose</header><text display-inline="yes-display-inline">The purpose of this subsection is to establish energy efficiency and conservation standards and green building standards that—</text> <clause id="H6A032A8E4FEE44B89E30BC1DF777D53D"><enum>(i)</enum><text>provide for greater energy efficiency and conservation in structures than is required for compliance with the energy efficiency standards under subsection (a) and then in effect;</text> </clause><clause id="HF16E86F9B7B74111A256E824A696E0EF"><enum>(ii)</enum><text>provide for green and sustainable building standards not required by such standards; and</text> </clause><clause id="H5E3096F1B2B242619F056D27C2E02797"><enum>(iii)</enum><text display-inline="yes-display-inline">can be used in connection with Federal housing, housing finance, and development programs to provide incentives for greater energy efficiency and conservation and for green and sustainable building methods, elements, practices, and materials.</text> </clause></subparagraph><subparagraph id="HDF9C1BB450F74CED9B5BD3956D69B0B8"><enum>(B)</enum><header>Effect</header><text>Nothing in this subsection may be construed to require any structure to comply with any standard established pursuant to this subsection or to provide any benefit or credit under any Federal program for any structure, except to the extent that any provision of law other than this subsection provides a benefit or credit under a Federal program for compliance with a standard established pursuant to this subsection.</text> </subparagraph></paragraph><paragraph id="H9A2E793CC2124D63ABB858DD8F3A9C69"><enum>(2)</enum><header>Compliance</header><text>A residential or nonresidential structure shall be considered to comply with the enhanced energy efficiency and conservation standards or the green building standards under this subsection, to the extent that such structure complies with the applicable provisions of the standards under paragraph (3) or (4), respectively (as such standards are in effect for purposes of this section, pursuant to paragraph (7)), in a manner that is not required for compliance with the energy efficiency standards under subsection (a) then in effect and subject to the Secretary’s determination of which standards are applicable to which structures.</text> </paragraph><paragraph id="HBA5EB7C912794342BE8AC8DA19E94662"><enum>(3)</enum><header>Energy efficiency and conservation standards</header><text>The energy efficiency and conservation standards under this paragraph are as follows:</text> <subparagraph id="H3E719B94E43247A7A0CD4F5C0830E37E"><enum>(A)</enum><header>Residential structures</header><text>With respect to residential structures:</text> <clause id="H6737000731F84FF5B69062A120469D59"><enum>(i)</enum><header>New construction</header><text display-inline="yes-display-inline">For new construction, the Energy Star standards established by the Environmental Protection Agency, as such standards are in effect for purposes of this subsection pursuant to paragraph (7);</text> </clause><clause id="H44994718F01D4EEFB7929DBC6BEFB261"><enum>(ii)</enum><header>Existing structures</header><text>For existing structures, a reduction in energy consumption from the previous level of consumption for the structure, as determined in accordance with energy audits performed both before and after any rehabilitation or improvements undertaken to reduce such consumption, that exceeds the reduction necessary for compliance with the energy efficiency standards under subsection (a) then in effect and applicable to existing structures.</text> </clause></subparagraph><subparagraph id="H5C296745FE494EC38968EC055B976F3E"><enum>(B)</enum><header>Nonresidential structures</header><text display-inline="yes-display-inline">With respect to nonresidential structures, such energy efficiency and conservation requirements, standards, checklists, or rating systems for nonresidential structures as the Secretary shall identify and adopt by regulation, as may be necessary, for purposes of this paragraph.</text> </subparagraph></paragraph><paragraph id="H99A2E6720BC54E0DA15C5E166DDEAC5A"><enum>(4)</enum><header>Green building standards</header><text>The green building standards under this paragraph are as follows:</text> <subparagraph commented="no" id="H93BEFE0E24B244A9AB26F56F42DC20AC"><enum>(A)</enum><text>The national Green Communities criteria checklist for residential construction that provides criteria for the design, development, and operation of affordable housing, as such checklist or successor checklist is in effect for purposes of this section pursuant to paragraph (7).</text> </subparagraph><subparagraph commented="no" id="H09342DE212C547ED8D1306AD5CAFCA47"><enum>(B)</enum><text display-inline="yes-display-inline">The gold certification level for the LEED for New Construction rating system, the LEED for Homes rating system, the LEED for Core and Shell rating system, as applicable, as such systems or successor systems are in effect for purposes of this section pursuant to paragraph (7).</text> </subparagraph><subparagraph id="HEDA8135EE52847759E142A76089405E9"><enum>(C)</enum><text>The Green Globes assessment and rating system of the Green Buildings Initiative.</text> </subparagraph><subparagraph id="H7E00074A04474B91A707B28AF1B2866F"><enum>(D)</enum><text display-inline="yes-display-inline">For manufactured housing, energy star rating with respect to fixtures, appliances, and equipment in such housing, as such standard or successor standard is in effect for purposes of this section pursuant to paragraph (7).</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H4894A9487A5C43C2949E8DD57801CF39"><enum>(E)</enum><text display-inline="yes-display-inline">The National Green Building Standard.</text> </subparagraph><subparagraph id="H6446063D183243FEA1DEFDB6B05E9FB0"><enum>(F)</enum><text display-inline="yes-display-inline">Any other requirements, standards, checklists, or rating systems for green building or sustainability as the Secretary may identify and adopt by regulation, as may be necessary for purposes of this paragraph, except that the Secretary shall make a determination regarding whether to adopt and apply any such requirements, standards, checklist, or rating system for purposes of this section not later than the expiration of the 180-day period beginning upon date of receipt of any written request, made in such form as the Secretary shall provide, for such adoption and application.</text> </subparagraph></paragraph><paragraph id="H154A40793FFF47D1917E01AF01CFCFCB"><enum>(5)</enum><header>Green building</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>green building</term> means, with respect to standards for structures, standards to require use of sustainable design principles to reduce the use of nonrenewable resources, minimize the impact of development on the environment, and to improve indoor air quality.</text> </paragraph><paragraph id="H17BB2A6D4BC445B68F62C95DA9C6C7D5"><enum>(6)</enum><header>Energy audits</header><text display-inline="yes-display-inline">The Secretary shall establish standards and requirements for energy audits for purposes of paragraph (3)(A)(ii) and, in establishing such standards, may consult with any advisory committees established pursuant to section 285(c)(2) of this subtitle.</text> </paragraph><paragraph display-inline="no-display-inline" id="H05D5E088B0F248D49693F2CCC9BE5090"><enum>(7)</enum><header>Applicability and updating of standards</header> <subparagraph id="H0A2066B1C5AF45DEAFC72DB9C293BC0C"><enum>(A)</enum><header>Applicability</header><text>Except as provided in subparagraph (B), the requirements, standards, checklists, and rating systems referred to in this subsection that are in effect for purposes of this subsection are such requirements, standards, checklists, and systems are as in existence upon the date of the enactment of this Act.</text> </subparagraph><subparagraph id="H562432E3C44A4ACC9C013BD5D297BCAC"><enum>(B)</enum><header>Updating</header><text display-inline="yes-display-inline">For purposes of this section, the Secretary may adopt and apply by regulation, as may be necessary, future amendments and supplements to, and editions of, the requirements, standards, checklists, and rating systems referred to in this subsection, including applicable energy efficiency building codes that are certified as in compliance with section 304 of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6833">42 U.S.C. 6833</external-xref>) as amended by section 201 of this Act, or national energy efficiency building codes adopted pursuant to that section.</text> </subparagraph></paragraph></subsection><subsection id="H48D778AD77524376AE585886195BA8F6"><enum>(c)</enum><header>Authority of Secretary To apply standards to federally assisted housing and programs</header> <paragraph id="HAC3AC255ECEA468FA9BEEE688E35AF01"><enum>(1)</enum><header>HUD housing and programs</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development may, by regulation, provide for the applicability of the energy efficiency standards under subsection (a) or the enhanced energy efficiency and conservation standards and green building standards under subsection (b), or both, with respect to any covered federally assisted housing described in paragraph (3)(A) or any HUD assistance, subject to minimum Federal codes or standards then in effect.</text> </paragraph><paragraph id="H3A6E897548A044F7A870B2F4292F4811"><enum>(2)</enum><header>Rural housing</header><text display-inline="yes-display-inline">The Secretary of Agriculture may, by regulation, provide for the applicability of the energy efficiency standards under subsection (a) or the enhanced energy efficiency and conservation standards and green building standards under subsection (b), or both, with respect to any covered federally assisted housing described in paragraph (3)(B) or any assistance provided with respect to rural housing by the Rural Housing Service of the Department of Agriculture, subject to minimum Federal codes or standards then in effect.</text> </paragraph><paragraph id="H9E6A1A444797403587E7AC0B04C279E4"><enum>(3)</enum><header>Covered federally assisted housing</header><text>For purposes of this subsection, the term <term>covered federally assisted housing</term> means—</text> <subparagraph id="H36D919908B56478A86D1C636C5035BB1"><enum>(A)</enum><text>any residential or nonresidential structure for which any HUD assistance is provided; and</text> </subparagraph><subparagraph id="H19B45ECA1C00477B8E4411DFD8E092FD"><enum>(B)</enum><text display-inline="yes-display-inline">any new construction of single-family housing (other than manufactured homes) subject to mortgages insured, guaranteed, or made by the Secretary of Agriculture under title V of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1471">42 U.S.C. 1471 et seq.</external-xref>).</text> </subparagraph></paragraph></subsection></section><section display-inline="no-display-inline" id="H8FC2D06650E74F28BD6D62EED3372F9C" section-type="subsequent-section"><enum>285.</enum><header>Energy efficiency and conservation demonstration program for multifamily housing projects assisted with project-based rental assistance</header> <subsection id="HA8D4A248EB2C4C38B9A32DD63412E8C2"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">For multifamily housing projects for which project-based rental assistance is provided under a covered multifamily assistance program, the Secretary shall, subject to the availability of amounts provided in advance in appropriation Acts, carry out a program to demonstrate the effectiveness of funding a portion of the costs of meeting the enhanced energy efficiency standards under section 284(b). At the discretion of the Secretary, the demonstration program may include incentives for housing that is assisted with Indian housing block grants provided pursuant to the Native American Housing Assistance and Self-Determination Act of 1996, but only to the extent that such inclusion does not violate such Act, its regulations, and the goal of such Act of tribal self-determination.</text> </subsection><subsection id="H99C237F9A81A4C9B8DC618FB0C6A4D0D"><enum>(b)</enum><header>Goals</header><text display-inline="yes-display-inline">The demonstration program under this section shall be carried out in a manner that—</text> <paragraph id="HCCA2AB973504464D923F8EBCDCB75AF9"><enum>(1)</enum><text>protects the financial interests of the Federal Government;</text> </paragraph><paragraph id="H72289C934D3941369AA0BDAA926A59AA"><enum>(2)</enum><text>reduces the proportion of funds provided by the Federal Government and by owners and residents of multifamily housing projects that are used for costs of utilities for the projects;</text> </paragraph><paragraph id="H8949BB0CD1E14E2C894B511C5F9B9378"><enum>(3)</enum><text>encourages energy efficiency and conservation by owners and residents of multifamily housing projects and installation of renewable energy improvements, such as improvements providing for use of solar, wind, geothermal, or biomass energy sources;</text> </paragraph><paragraph id="HB28FBED68013479AA05492EB189BA9D2"><enum>(4)</enum><text>creates incentives for project owners to carry out such energy efficiency renovations and improvements by allowing a portion of the savings in operating costs resulting from such renovations and improvements to be retained by the project owner, notwithstanding otherwise applicable limitations on dividends;</text> </paragraph><paragraph id="H422D2729B8D5431C8D63F05F5120D408"><enum>(5)</enum><text display-inline="yes-display-inline">promotes the installation, in existing residential buildings, of energy-efficient and cost-effective improvements and renewable energy improvements, such as improvements providing for use of solar, wind, geothermal, or biomass energy sources;</text> </paragraph><paragraph id="HA72CBAF17520448BAD9577B32F7E11E5"><enum>(6)</enum><text>tests the efficacy of a variety of energy efficiency measures for multifamily housing projects of various sizes and in various geographic locations;</text> </paragraph><paragraph id="H559F6C5A6A7F4CB9808BE4E3E84EEBDD"><enum>(7)</enum><text>tests methods for addressing the various, and often competing, incentives that impede owners and residents of multifamily housing projects from working together to achieve energy efficiency or conservation; and</text> </paragraph><paragraph id="HB63F3006DD2B4472BABF9869B186B0A9"><enum>(8)</enum><text>creates a database of energy efficiency and conservation, and renewable energy, techniques, energy-savings management practices, and energy efficiency and conservation financing vehicles.</text> </paragraph></subsection><subsection id="HA84B72BF59D740F4BD9AC29F56070FF6"><enum>(c)</enum><header>Approaches</header><text display-inline="yes-display-inline">In carrying out the demonstration program under this section, the Secretary may—</text> <paragraph id="HAAE4859E6CCD4A2BA0AEE463B1DE1AD9"><enum>(1)</enum><text display-inline="yes-display-inline">enter into agreements with the Building America Program of the Department of Energy and other consensus committees under which such programs, partnerships, or committees assume some or all of the functions, obligations, and benefits of the Secretary with respect to energy savings;</text> </paragraph><paragraph id="H9AF7377F1B404FAEBEAE454A3FA51EE7"><enum>(2)</enum><text display-inline="yes-display-inline">establish advisory committees to advise the Secretary and any such third-party partners on technological and other developments in the area of energy efficiency and the creation of an energy efficiency and conservation credit facility and other financing opportunities, which committees shall include representatives of homebuilders, realtors, architects, nonprofit housing organizations, environmental protection organizations, renewable energy organizations, and advocacy organizations for the elderly and persons with disabilities; any advisory committees established pursuant to this paragraph shall not be subject to the Federal Advisory Committee Act (5 U.S.C. App.);</text> </paragraph><paragraph id="HAF22FB886A964A99B53126F0896D071D"><enum>(3)</enum><text display-inline="yes-display-inline">approve, for a period not to exceed 10 years, additional adjustments in the maximum monthly rents or additional project rental assistance, or additional Indian housing block grant funds under the Native American Housing Assistance and Self-Determination Act of 1996, as applicable, for dwelling units in multifamily housing projects that are provided project-based rental assistance under a covered multifamily assistance program, in such amounts as may be necessary to amortize a portion of the cost of energy efficiency and conservation measures for such projects;</text> </paragraph><paragraph id="H876A3CA0FD9E4539A5F6A637CF8324F5"><enum>(4)</enum><text>develop a competitive process for the award of such additional assistance for multifamily housing projects seeking to implement energy efficiency, renewable energy sources, or conservation measures; and</text> </paragraph><paragraph id="HFE37B3C060C9425FA7F7716DA87A8E98"><enum>(5)</enum><text display-inline="yes-display-inline">waive or modify any existing statutory or regulatory provision that would otherwise impair the implementation or effectiveness of the demonstration program under this section, including provisions relating to methods for rent adjustments, comparability standards, maximum rent schedules, and utility allowances; notwithstanding the preceding provisions of this paragraph, the Secretary may not waive any statutory requirement relating to fair housing, nondiscrimination, labor standards, or the environment, except pursuant to existing authority to waive nonstatutory environmental and other applicable requirements.</text> </paragraph></subsection><subsection id="H557B543E391941CA87EDC8E664BEE12C"><enum>(d)</enum><header>Requirement</header><text display-inline="yes-display-inline">During the 4-year period beginning 12 months after the date of the enactment of this Act, the Secretary shall carry out demonstration programs under this section with respect to not fewer than 50,000 dwelling units.</text> </subsection><subsection id="H8C59ACB33E1A4DD2B4CCE773F08581F8"><enum>(e)</enum><header>Selection</header> <paragraph id="H9CD77BC77014437FB492FFCF07FB2D71"><enum>(1)</enum><header>Scope</header><text display-inline="yes-display-inline">In order to provide a broad and representative profile for use in designing a program which can become operational and effective nationwide, the Secretary shall carry out the demonstration program under this section with respect to dwelling units located in a wide variety of geographic areas and project types assisted by the various covered multifamily assistance programs and using a variety of energy efficiency and conservation and funding techniques to reflect differences in climate, types of dwelling units and technical and scientific methodologies, and financing options. The Secretary shall ensure that the geographic areas included in the demonstration program include dwelling units on Indian lands (as such term is defined in section 2601 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/25/3501">25 U.S.C. 3501</external-xref>), to the extent that dwelling units on Indian land have the type of residential structures that are the focus of the demonstration program.</text> </paragraph><paragraph id="H975DF2AE61334172940296DDFDEA0BB9"><enum>(2)</enum><header>Priority</header><text display-inline="yes-display-inline">The Secretary shall provide priority for selection for participation in the program under this section based on the extent to which, as a result of assistance provided, the project will comply with the energy efficiency standards under subsection (a), (b), or (c) of section 284 of this subtitle.</text> </paragraph></subsection><subsection id="H3787BE84970B4176B9ECF9BA8346D86D"><enum>(f)</enum><header>Use of existing partnerships</header><text display-inline="yes-display-inline">To the extent feasible, the Secretary shall—</text> <paragraph id="H84F022625009490587E1178C3EC76C1B"><enum>(1)</enum><text display-inline="yes-display-inline">utilize the Partnership for Advancing Technology in Housing of the Department of Housing and Urban Development to assist in carrying out the requirements of this section and to provide education and outreach regarding the demonstration program authorized under this section; and</text> </paragraph><paragraph id="H54BEEB8DE9D248B8AC3DE4FB20DA981E"><enum>(2)</enum><text display-inline="yes-display-inline">consult with the Secretary of Energy, the Administrator of the Environmental Protection Agency, and the Secretary of the Army regarding utilizing the Building America Program of the Department of Energy, the Energy Star Program, and the Army Corps of Engineers, respectively, to determine the manner in which they might assist in carrying out the goals of this section and providing education and outreach regarding the demonstration program authorized under this section.</text> </paragraph></subsection><subsection id="HCEF0555077FF4748BAF443212E98D383"><enum>(g)</enum><header>Limitation</header><text display-inline="yes-display-inline">No amounts made available under the American Recovery and Reinvestment Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/5">Public Law 111–5</external-xref>) may be used to carry out the demonstration program under this section.</text> </subsection><subsection id="H2A78A3163F464D0FBE5D9B22F89D832A"><enum>(h)</enum><header>Reports</header> <paragraph id="HB3B0793283144CBB9ED17F8FF62BF65C"><enum>(1)</enum><header>Annual</header><text display-inline="yes-display-inline">Not later than the expiration of the 2-year beginning upon the date of the enactment of this Act, and for each year thereafter during the term of the demonstration program, the Secretary shall submit a report to the Congress annually that describes and assesses the demonstration program under this section.</text> </paragraph><paragraph id="H896C9C04C8774291862199BDE5936FFF"><enum>(2)</enum><header>Final</header><text display-inline="yes-display-inline">Not later than 6 months after the expiration of the 4-year period described in subsection (d), the Secretary shall submit a final report to the Congress assessing the demonstration program, which—</text> <subparagraph id="HC7E37C22A0364EC5BC2A35916A1ADE73"><enum>(A)</enum><text>shall assess the potential for expanding the demonstration program on a nationwide basis; and</text> </subparagraph><subparagraph id="H5481FB32FC92438BAA3E25A7EC838A92"><enum>(B)</enum><text>shall include descriptions of—</text> <clause id="H5B88F2FB10B74EC29A469E194AAB37A2"><enum>(i)</enum><text>the size of each multifamily housing project for which assistance was provided under the program;</text> </clause><clause id="HB57FBB6193A7431FBA34EAA128C95D8C"><enum>(ii)</enum><text>the geographic location of each project assisted, by State and region;</text> </clause><clause id="HB0A1091E24064AF7A7D0FA4A1693E6D6"><enum>(iii)</enum><text>the criteria used to select the projects for which assistance is provided under the program;</text> </clause><clause id="H82DCB03C5C5C44799221A834A9B8BBED"><enum>(iv)</enum><text>the energy efficiency and conservation measures and financing sources used for each project that is assisted under the program;</text> </clause><clause id="H4FF2EEC0BACD4F00BA5D9DB828C73DF4"><enum>(v)</enum><text display-inline="yes-display-inline">the difference, before and during participation in the demonstration program, in the amount of the monthly assistance payments under the covered multifamily assistance program for each project assisted under the program;</text> </clause><clause id="HA99A4D5E33114BE7AA796DBAA9028A30"><enum>(vi)</enum><text>the average length of the term of the such assistance provided under the program for a project;</text> </clause><clause id="H8F40D39907E847588B176590C6FEF2DC"><enum>(vii)</enum><text>the aggregate amount of savings generated by the demonstration program and the amount of savings expected to be generated by the program over time on a per-unit and aggregate program basis;</text> </clause><clause id="H1108445F7D204E6B98876EC172A8C3E0"><enum>(viii)</enum><text>the functions performed in connection with the implementation of the demonstration program that were transferred or contracted out to any third parties;</text> </clause><clause id="H2FF982C1D0334DAF86E78D454172956B"><enum>(ix)</enum><text>an evaluation of the overall successes and failures of the demonstration program; and</text> </clause><clause id="H8A4CFCFE92494F39A18BD4511BF4C3AB"><enum>(x)</enum><text>recommendations for any actions to be taken as a result of the such successes and failures.</text> </clause></subparagraph></paragraph><paragraph id="H1A69129A3D2A4633A935799AF110C60D"><enum>(3)</enum><header>Contents</header><text>Each annual report pursuant to paragraph (1) and the final report pursuant to paragraph (2) shall include—</text> <subparagraph id="HD26E940FC03B4CDDA9B942A61666ACAE"><enum>(A)</enum><text>a description of the status of each multifamily housing project selected for participation in the demonstration program under this section; and</text> </subparagraph><subparagraph id="HCFF690BB0D164AF8A4844ACB4447D003"><enum>(B)</enum><text>findings from the program and recommendations for any legislative actions.</text> </subparagraph></paragraph></subsection><subsection id="HE1750B4684C04220928582A1F827CC66"><enum>(i)</enum><header>Covered multifamily assistance program</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>covered multifamily assistance program</term> means—</text> <paragraph id="H6641E4B1302F4DCCB655C82D9472E1B0"><enum>(1)</enum><text display-inline="yes-display-inline">the program under section 8 of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref>) for project-based rental assistance;</text> </paragraph><paragraph id="H6CA65D24616048259F5FF2FDAD610C10"><enum>(2)</enum><text>the program under section 202 of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q</external-xref>) for assistance for supportive housing for the elderly;</text> </paragraph><paragraph id="H79F85929D0984DAABD69491BE7A5F76B"><enum>(3)</enum><text>the program under section 811 of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8013">42 U.S.C. 8013</external-xref>) for supportive housing for persons with disabilities;</text> </paragraph><paragraph id="H7861D6D685EB4383ABDB451BCE0FF45E"><enum>(4)</enum><text>the program under section 236 of the National Housing Act (12 U.S.C. 1715z–1 for assistance for rental housing projects;</text> </paragraph><paragraph id="HBE343DACAFA84B36B9326D96E5F690A1"><enum>(5)</enum><text>the program under section 515 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1485">42 U.S.C. 1485</external-xref>) for rural rental housing; and</text> </paragraph><paragraph id="HDFB7332F6DDF41D0A4B25165B3DB33DE"><enum>(6)</enum><text>the program for assistance under the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4111">25 U.S.C. 4111</external-xref>).</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H57643EA1D6034EFF80985900F37AA754"><enum>(j)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this section, including providing rent adjustments, additional project rental assistance, and incentives, $50,000,000 for each fiscal year in which the demonstration program under this section is carried out.</text> </subsection><subsection id="H73D26792F93F46B2BEEFBB4377996D87"><enum>(k)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than the expiration of the 180-day period beginning on the date of the enactment of this Act, the Secretary shall issue any regulations necessary to carry out this section.</text> </subsection></section><section display-inline="no-display-inline" id="HA4D4584A54D94802A3F5332ED2FDC175"><enum>286.</enum><header>Additional credit for Fannie Mae and Freddie Mac housing goals for energy-efficient and location-efficient mortgages</header><text display-inline="no-display-inline">Section 1336(a) of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566(a)</external-xref>), as amended by the Federal Housing Finance Regulatory Reform Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/289">Public Law 110–289</external-xref>; 122 Stat. 2654), is amended—</text> <paragraph id="H95C27D5054B041308110693140FB960F"><enum>(1)</enum><text>in paragraph (2), by striking <quote>paragraph (5)</quote> and inserting <quote>paragraphs (5) and (6)</quote>; and</text> </paragraph><paragraph id="HBBAF82F799A944B89E7B9FC708DA3A8D"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block id="HFF568FFE44E1436BB6B4A709897B4982" style="OLC"> <paragraph id="HD0751A53C4044360A9CA56ECCB914D5C"><enum>(6)</enum><header>Additional credit</header> <subparagraph id="H49450E3538744F3BBB0D3FD4C9986EB6"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In assigning credit toward achievement under this section of the housing goals for mortgage purchase activities of the enterprises, the Director shall assign—</text> <clause id="HDCC5BDCAA1644E6486EFF23E52145FA1"><enum>(i)</enum><text display-inline="yes-display-inline">more than 125 percent credit, for any such purchase that both—</text> <subclause id="HD0C22999820148009F75481E63B6E65F"><enum>(I)</enum><text>complies with the requirements of such goals; and</text> </subclause><subclause id="H3CE01B53420D49888ED6A0741743ECE5"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="HA1D3AC6B339E4B998EC4937DC356CECF"><enum>(aa)</enum><text>supports housing that meets the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title>; or</text> </item><item id="H4AE1B7D1A64D47FEBF2CDD7F868B2DC2" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">is a location-efficient mortgage, as such term is defined in section 1335(e); and</text> </item></subclause></clause><clause id="H429DF3A4A2D44482910E0EAAA14C95C6"><enum>(ii)</enum><text display-inline="yes-display-inline">credit in addition to credit under clause (i), for any such purchase that both—</text> <subclause id="HEDFAD575122945AB84E300F0E2A8A584"><enum>(I)</enum><text>complies with the requirements of such goals, and</text> </subclause><subclause id="H837D217DCDC04202A2C3EB607D6C845D"><enum>(II)</enum><text>supports housing that complies with the enhanced energy efficiency and conservation standards, or the green building standards, under section 284(b) of such Act, or both,</text> </subclause><continuation-text continuation-text-level="clause">and such additional credit shall be given based on the extent to which the housing supported with such purchases complies with such standards.</continuation-text></clause></subparagraph><subparagraph id="H8D4873EA78094B19A3592410146920F7"><enum>(B)</enum><header>Treatment of additional credit</header><text>The availability of additional credit under this paragraph shall not be used to increase any housing goal, subgoal, or target established under this subpart.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="HDE2AC83032144AE188537C4CEFED2A3B" section-type="subsequent-section"><enum>287.</enum><header>Duty to serve underserved markets for energy-efficient and location-efficient mortgages</header><text display-inline="no-display-inline">Section 1335 of Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4565">12 U.S.C. 4565</external-xref>), as amended by the Federal Housing Finance Regulatory Reform Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/289">Public Law 110–289</external-xref>; 122 Stat. 2654), is amended—</text> <paragraph id="H6B4EA63F18424194947E83AB84E0765A"><enum>(1)</enum><text>in subsection (a)(1), by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H5E17857F47474EDE954A3085E0DA6939" style="OLC"> <subparagraph commented="no" id="H46D19FCCC14F40F4BF992456ED014CF9"><enum>(D)</enum><header>Markets for energy-efficient and location-efficient mortgages</header> <clause commented="no" id="HD6C1CA9C80934011BFBA2E1A97E53007"><enum>(i)</enum><header>Duty</header><text>Subject to clause (ii), the enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for energy-efficient and location-efficient mortgages on housing for very low-, low-, and moderate-income families, and for second and junior mortgages made for purposes of energy efficiency or renewable energy improvements, or both.</text> </clause><clause commented="no" id="H62D7D44B9C164B72AFC0A1414757F45D"><enum>(ii)</enum><header>Authority to suspend</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, the Director may suspend the applicability of the requirement under clause (i) with respect to an enterprise, for such period as is necessary, if the Director determines that exigent circumstances exist and such suspension is appropriate to ensure the safety and soundness of the portfolio holdings of the enterprise.</text> </clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H046E830F27914C7680E2459EB70FAEE6"><enum>(2)</enum><text>by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H0B4C922406CB40F4B09439D3D736967A" style="OLC"> <subsection id="H1B4362F1D7204CCCB20C2CE64ED985D2"><enum>(e)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following definitions shall apply:</text> <paragraph id="HBC2B9C5B9CAD42FAA39DA043CF1896B5"><enum>(1)</enum><header>Energy-efficient mortgage</header><text>The term <term>energy-efficient mortgage</term> means a mortgage loan under which the income of the borrower, for purposes of qualification for such loan, is considered to be increased by not less than $1 for each $1 of savings projected to be realized by the borrower as a result of cost-effective energy-saving design, construction or improvements (including use of renewable energy sources, such as solar, geothermal, biomass, and wind, super-insulation, energy-saving windows, insulating glass and film, and radiant barrier) for the home for which the loan is made.</text> </paragraph><paragraph id="H907325DB1C7A4B0B82D9E07B18B881DA"><enum>(2)</enum><header>Location-efficient mortgage</header><text display-inline="yes-display-inline">The term <term>location-efficient mortgage</term> means a mortgage loan under which—</text> <subparagraph id="H67224A0934AA4C2BBDEFA8F58F37CEDC"><enum>(A)</enum><text display-inline="yes-display-inline">the income of the borrower, for purposes of qualification for such loan, is considered to be increased by not less than $1 for each $1 of savings projected to be realized by the borrower because the location of the home for which loan is made will result in decreased transportation costs for the household of the borrower; or</text> </subparagraph><subparagraph id="H7B50AE72381B4670A1E30961795B0254"><enum>(B)</enum><text>the sum of the principal, interest, taxes, and insurance due under the mortgage loan is decreased by not less than $1 for each $1 of savings projected to be realized by the borrower because the location of the home for which loan is made will result in decreased transportation costs for the household of the borrower.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="H5343E46DF58D42C487A3008F06F79F7B" section-type="subsequent-section"><enum>288.</enum><header>Consideration of energy efficiency under FHA mortgage insurance programs and Native American and Native Hawaiian loan guarantee programs</header> <subsection id="HD4158112BE6F428588BAECB166CACAAF"><enum>(a)</enum><header>FHA mortgage insurance</header> <paragraph id="HEE3E5654E62342B9A5E1496C4CF007FB"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Title V of the National Housing Act is amended by adding after section 542 (<external-xref legal-doc="usc" parsable-cite="usc/12/1735f-20">12 U.S.C. 1735f–20</external-xref>) the following new section:</text> <quoted-block display-inline="no-display-inline" id="HDEC81C24FC644ED49DB77EE0997F7387" style="OLC"> <section id="HD928EC388FF440A39B2976F68B695EB2"><enum>543.</enum><header>Consideration of energy efficiency</header> <subsection id="H5910C8849A9744B18887E084CA833CC1"><enum>(a)</enum><header>Underwriting standards</header><text display-inline="yes-display-inline">The Secretary shall establish a method to consider, in its underwriting standards for mortgages on single-family housing meeting the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title> that are insured under this Act, the impact that savings on utility costs has on the income of the mortgagor.</text> </subsection><subsection id="HF520CFDFF7304100BD98416E01FD7286"><enum>(b)</enum><header>Goal</header><text>It is the sense of the Congress that, in carrying out this Act, the Secretary should endeavor to insure mortgages on single-family housing meeting the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title> such that at least 50,000 such mortgages are insured during the period beginning upon the date of the enactment of such Act and ending on December 31, 2012.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HE71556532C0A4B9784DE67B588D556CD"><enum>(2)</enum><header>Reporting on defaults</header><text>Section 540(b) of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1735f-18">12 U.S.C. 1735f–18(b)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HC57200685FFA446A86D6D066A18A9255" style="OLC"> <paragraph id="H9B28BDA7F5764DD5A07288FE87C9F972"><enum>(3)</enum><text display-inline="yes-display-inline">With respect to each collection period that commences after December 31, 2011, the total number of mortgages on single-family housing meeting the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title> that are insured by the Secretary during the applicable collection period, the number of defaults and foreclosures occurring on such mortgages during such period, the percentage of the total of such mortgages insured during such period on which defaults and foreclosure occurred, and the rate for such period of defaults and foreclosures on such mortgages compared to the overall rate for such period of defaults and foreclosures on mortgages for single-family housing insured under this Act by the Secretary.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection display-inline="no-display-inline" id="H7CA4E0026BC049E6A7354813296178DD"><enum>(b)</enum><header>Indian housing loan guarantees</header> <paragraph id="HC18C7438A6314193929A52A3212DF510"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Section 184 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-13a">12 U.S.C. 1715z–13a</external-xref>) is amended—</text> <subparagraph id="H1ABCB49DAE964A1CA716CD924FE417FC"><enum>(A)</enum><text>by redesignating subsection (l) as subsection (m); and</text> </subparagraph><subparagraph id="H79CAFC43EDA24397B19D428EBF3493E9"><enum>(B)</enum><text>by inserting after subsection (k) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H238019B11DAC48E29DC6DB783362D421" style="OLC"> <subsection id="H21362C5315C44CBB8E1C1BA5FEDC4214"><enum>(l)</enum><header>Consideration of energy efficiency</header><text display-inline="yes-display-inline">The Secretary shall establish a method to consider, in its underwriting standards for loans for single-family housing meeting the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title> that are guaranteed under this section, the impact that savings on utility costs has on the income of the borrower.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H2B2E90F36BD04AF3B789687669A8AE45"><enum>(2)</enum><header>Reporting on defaults</header><text display-inline="yes-display-inline">Section 540(b) of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1735f-18">12 U.S.C. 1735f–18(b)</external-xref>), as amended by subsection (a)(2) of this section, is further amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HC16E4D368C5C43DC805E67F4FB464C9B" style="OLC"> <paragraph id="HF27478A269254A8B8004EB98CD15983D"><enum>(4)</enum><text display-inline="yes-display-inline">With respect to each collection period that commences after December 31, 2011, the total number of loans guaranteed under section 184 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-13a">12 U.S.C. 1715z–13a</external-xref>) on single-family housing meeting the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title> that are guaranteed by the Secretary during the applicable collection period, the number of defaults and foreclosures occurring on such loans during such period, the percentage of the total of such loans guaranteed during such period on which defaults and foreclosure occurred, and the rate for such period of defaults and foreclosures on such loans compared to the overall rate for such period of defaults and foreclosures on loans for single-family housing guaranteed under such section 184 by the Secretary.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection display-inline="no-display-inline" id="H9409D6D2A9E0438FB1D5080B230ECA93"><enum>(c)</enum><header>Native Hawaiian housing loan guarantees</header> <paragraph id="H770CD5BF5C594DF0829D3A07795BABCC"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Section 184A of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-13b">12 U.S.C. 1715z–13b</external-xref>) is amended by inserting after subsection (l) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H77E43750B84344D5B51867CF966F67B4" style="OLC"> <subsection id="H909761E8199643BC8031A4481B508AFA"><enum>(m)</enum><header>Energy-efficient housing requirement</header><text display-inline="yes-display-inline">The Secretary shall establish a method to consider, in its underwriting standards for loans for single-family housing meeting the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title> that are guaranteed under this section, the impact that savings on utility costs has on the income of the borrower.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H4ADC665E80F841A78C9BB54B0EF0D7AC"><enum>(2)</enum><header>Reporting on defaults</header><text display-inline="yes-display-inline">Section 540(b) of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1735f-18">12 U.S.C. 1735f–18(b)</external-xref>), as amended by the preceding provisions of this section, is further amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H57F0E7A6B7EA4EDA959D76816525F4AE" style="OLC"> <paragraph id="H2AB075BFFFE6483EB4E33BFC613BAD6A"><enum>(5)</enum><text display-inline="yes-display-inline">With respect to each collection period that commences after December 31, 2011, the total number of loans guaranteed under section 184A of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-13b">12 U.S.C. 1715z–13b</external-xref>) on single-family housing meeting the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title> that are guaranteed by the Secretary during the applicable collection period, the number of defaults and foreclosures occurring on such loans during such period, the percentage of the total of such loans guaranteed during such period on which defaults and foreclosure occurred, and the rate for such period of defaults and foreclosures on such loans compared to the overall rate for such period of defaults and foreclosures on loans for single-family housing guaranteed under such section 184A by the Secretary.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section display-inline="no-display-inline" id="H48ACE212D44C44ED8450ABE3A04219A4"><enum>289.</enum><header>Energy-efficient mortgages and location-efficient mortgages education and outreach campaign</header><text display-inline="no-display-inline">Section 106 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701z-16">12 U.S.C. 1701z–16</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HE91EEB8E12DF4CEDB4862AC862915B37" style="OLC"> <subsection id="HD103C0B77D4546639EAB0DB6AFD58FB3"><enum>(g)</enum><header>Education and outreach campaign</header> <paragraph id="HC4031425F931495DB467EEF1590B31C7"><enum>(1)</enum><header>Development of energy- and location-efficient mortgages outreach program</header> <subparagraph id="HD07A15EEF11B4E9381A08198A9594509"><enum>(A)</enum><header>Commission</header><text display-inline="yes-display-inline">The Secretary, in consultation and coordination with the Secretary of Energy, the Secretary of Education, the Secretary of Agriculture, and the Administrator of the Environmental Protection Agency, shall establish a commission to develop and recommend model mortgage products and underwriting guidelines that provide market-based incentives to prospective home buyers, lenders, and sellers to incorporate energy efficiency upgrades and location efficiencies in new mortgage loan transactions.</text> </subparagraph><subparagraph id="H12456FAB93374578AE1768197459E577"><enum>(B)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 24 months after the date of the enactment of this Act, the Secretary shall provide a written report to the Congress on the results of work of the commission established pursuant to subparagraph (A) and that identifies model mortgage products and underwriting guidelines that may encourage energy and location efficiency.</text> </subparagraph></paragraph><paragraph id="H3866A3526D1B4B2DBCA4AF5406FCC750"><enum>(2)</enum><header>Implementation</header><text display-inline="yes-display-inline">After submission of the report under paragraph (1)(B), the Secretary, in consultation and coordination with the Secretary of Energy, the Secretary of Education, and the Administrator of the Environmental Protection Agency, shall carry out a public awareness, education, and outreach campaign based on the findings of the commission established pursuant to paragraph (1) to inform and educate residential lenders and prospective borrowers regarding the availability, benefits, advantages, and terms of energy-efficient mortgages and location-efficient mortgages made available pursuant to this section, energy-efficient and location-efficient mortgages that meet the requirements of section 1335 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/4565">42 U.S.C. 4565</external-xref>), and other mortgages, including mortgages for multifamily housing, that have energy improvement features or location efficiency features and to publicize such availability, benefits, advantages, and terms. Such actions may include entering into a contract with an appropriate entity to publicize and market such mortgages through appropriate media.</text> </paragraph><paragraph id="H23CD897ADDE742A3823929401482F238"><enum>(3)</enum><header>Renewable energy home product expos</header><text display-inline="yes-display-inline">The Congress hereby encourages the Secretary of Housing and Urban Development to work with appropriate entities to organize and hold renewable energy expositions that provide an opportunity for the public to view and learn about renewable energy products for the home that are currently on the market.</text> </paragraph><paragraph id="HA00B19240FBB4F6AA68E7F2730561C35"><enum>(4)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated to the Secretary to carry out this subsection $5,000,000 for each of fiscal years 2010 through 2014.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section display-inline="no-display-inline" id="H2F2677EB51AB483CAEACF9DB2DF25A01"><enum>290.</enum><header>Collection of information on energy-efficient and location-efficient mortgages through Home Mortgage Disclosure Act</header> <subsection id="H8E1CDE6463A84EC48ACE710F1C2A5903"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 304(b) of the Home Mortgage Disclosure Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/12/2803">12 U.S.C. 2803(b)</external-xref>) is amended—</text> <paragraph id="HDA2CA608065A48B3ADF24EF78584F1A4"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="H6AD0FDC5FBE14D958B1806822D56D189"><enum>(2)</enum><text>in paragraph (4), by striking the period at the end and inserting a semicolon; and</text> </paragraph><paragraph id="H0CCE04F889A446CEB5E5EF720084EC5F"><enum>(3)</enum><text>by adding at the end the following new paragraphs:</text> <quoted-block display-inline="no-display-inline" id="H983AB38618BC4E489479A607B7B86031" style="OLC"> <paragraph id="H4148316551124A47A80B633117400C6F"><enum>(5)</enum><text display-inline="yes-display-inline">the number and dollar amount of mortgage loans for single-family housing and for multifamily housing that are energy-efficient mortgages (as such term is defined in section 1335 of Housing and Community Development Act of 1992); and</text> </paragraph><paragraph id="H43DBC20F6CEF4A62BA5C01B892D9F610"><enum>(6)</enum><text display-inline="yes-display-inline">the number and dollar amount of mortgage loans for single-family housing and for multifamily housing that are location-efficient mortgages (as such term is defined in section 1335 of Housing and Community Development Act of 1992).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H5FA3B432A4334E7DAC9C4F7CCC40491B"><enum>(b)</enum><header>Applicability</header><text>The amendment made by subsection (a) shall apply with respect to the first calendar year that begins after the expiration of the 30-day period beginning on the date of the enactment of this Act.</text> </subsection></section><section display-inline="no-display-inline" id="HD0D1607BE6624006B276DD770EA906C2"><enum>291.</enum><header>Ensuring availability of homeowners insurance for homes not connected to electricity grid</header> <subsection id="H6463D87D418D4B71BC45C6AC14742A36"><enum>(a)</enum><header>Congressional intent</header><text display-inline="yes-display-inline">The Congress intends that—</text> <paragraph id="HCEB83A09C93E482E9F8423EDA22ED9F1"><enum>(1)</enum><text>consumers shall not be denied homeowners insurance for a dwelling (as such term is defined in subsection (c)) based solely on the fact that the dwelling is not connected to or able to receive electricity service from any wholesale or retail electric power provider;</text> </paragraph><paragraph id="HC95678ACA9E9442393FD76A6242E4144"><enum>(2)</enum><text>States should ensure that consumers are able to obtain homeowners insurance for such dwellings;</text> </paragraph><paragraph id="HEFDB9813642D4245B3028CDA6AD7ED98"><enum>(3)</enum><text>States should support insurers that develop voluntary incentives to provide such insurance; and</text> </paragraph><paragraph id="H4B84D9A329C340659B2FEB1454712A50"><enum>(4)</enum><text>States may not prohibit insurers from offering a homeowners insurance product specifically designed for such dwellings.</text> </paragraph></subsection><subsection id="H274EDBEA6FBA4AC89112666DE55753F6"><enum>(b)</enum><header>Insuring homes and related property in Indian areas</header><text>Notwithstanding any other provision of law, dwellings located in Indian areas (as such term is defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103</external-xref>)) and constructed or maintained using assistance, loan guarantees, or other authority under the Native American Housing Assistance and Self-Determination Act of 1996 may be insured by any tribally owned self-insurance risk pool approved by the Secretary of Housing and Urban Development.</text> </subsection><subsection id="H2929F1B2220640AB889A0ECC1C0CFF37"><enum>(c)</enum><header>Dwelling</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>dwelling</term> means a residential structure that—</text> <paragraph id="HF451E9F777D247ABA6AB3EB780402A01"><enum>(1)</enum><text>consists of one to four dwelling units;</text> </paragraph><paragraph id="H42DBB146444546E79BB94EFAABD7FD00"><enum>(2)</enum><text>is provided electricity from renewable energy sources; and</text> </paragraph><paragraph id="H2614260280E045DCBB1EABEA9C8C70A3"><enum>(3)</enum><text>is not connected to any wholesale or retail electrical power grid.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H99C792A70B494051BF45F61096506E88"><enum>292.</enum><header>Mortgage incentives for energy-efficient multifamily housing</header> <subsection id="H96DBB15161E2460E852FA854FA969D9E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development shall establish incentives for increasing the energy efficiency of multifamily housing that is subject to a mortgage to be insured under title II of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>) so that the housing meets the energy efficiency standards under section 284(a) of this subtitle and incentives to encourage compliance of such housing with the energy efficiency and conservation standards, and the green building standards, under section 284(b) of this subtitle, to the extent that such incentives are based on the impact that savings on utility costs has on the operating costs of the housing, as determined by the Secretary.</text> </subsection><subsection id="H8B0EC3AF394E4A638C68B136A263B534"><enum>(b)</enum><header>Incentives</header><text display-inline="yes-display-inline">Such incentives may include, for any such multifamily housing that complies with the energy efficiency standards under section 284(a)—</text> <paragraph id="HD8191AACB60B4AF194636FF2237B8C66"><enum>(1)</enum><text>providing a discount on the chargeable premiums for the mortgage insurance for such housing from the amount otherwise chargeable for such mortgage insurance;</text> </paragraph><paragraph id="HAA2ECE858FB945748AAC09261EDD03F2"><enum>(2)</enum><text display-inline="yes-display-inline">allowing mortgages to exceed the dollar amount limits otherwise applicable under law to the extent such additional amounts are used to finance improvements or measures designed to meet the standards referred to in subsection (a); and</text> </paragraph><paragraph id="H762A2B02A9234CF39FCEC32BFDF76ED3"><enum>(3)</enum><text>reducing the amount that the owner of such multifamily housing meeting the standards referred to in subsection (a) is required to contribute.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="HAFD60AA714B4422EA1AF87C2DFF25A5A"><enum>293.</enum><header>Energy-efficient certifications for manufactured housing with mortgages</header><text display-inline="no-display-inline">Section 526 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1735f-4">12 U.S.C. 1735f–4(a)</external-xref>) is amended—</text> <paragraph id="H842482EFDC4948468AE36976CE6D6EDD"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HCE103A55F8AF4CAEAF902404278BD458"><enum>(A)</enum><text>by striking <quote>, other than manufactured homes,</quote> each place such term appears;</text> </subparagraph><subparagraph id="H6F626481B6474B10A621177DC8C878CE"><enum>(B)</enum><text>by inserting after the period at the end the following: <quote>The energy performance requirements developed and established by the Secretary under this section for manufactured homes shall require energy star rating for wall fixtures, appliances, and equipment in such housing.</quote>;</text> </subparagraph><subparagraph id="H2C82D27330954D0795FD2E4FF6D4B338"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting <quote>(1)</quote> after <quote>(a)</quote>; and</text> </subparagraph><subparagraph id="H11CC4311CAC34CE1A6F4101F164D1D74"><enum>(D)</enum><text>by adding at the end the following new paragraphs:</text> <quoted-block id="HA133E041F5984CC99FB229E1212B623A" style="OLC"> <paragraph id="H5A05B36C7D0441B28467BE0FDE0281B0" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary shall require, with respect to any single- or multi-family residential housing subject to a mortgage insured under this Act, that any approval or certification of the housing for meeting any energy efficiency or conservation criteria, standards, or requirements pursuant to this title and any approval or certification required pursuant to this title with respect to energy-conserving improvements or any renewable energy sources, such as wind, solar energy geothermal, or biomass, shall be conducted only by an individual certified by a home energy rating system provider who has been accredited to conduct such ratings by the Home Energy Ratings System Council, the Residential Energy Services Network, or such other appropriate national organization, as the Secretary may provide, or by licensed professional architect or engineer. If any organization makes a request to the Secretary for approval to accredit individuals to conduct energy efficiency or conservation ratings, the Secretary shall review and approve or disapprove such request not later than the expiration of the 6-month period beginning upon receipt of such request.</text> </paragraph><paragraph id="H493D181A35EA417BB0F0302050CD2DDE" indent="up1"><enum>(3)</enum><text>The Secretary shall periodically examine the method used to conduct inspections for compliance with the requirements under this section, analyze various other approaches for conducting such inspections, and review the costs and benefits of the current method compared with other methods.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" id="H3D0A00500FF746C68A12F2B1586AB6ED"><enum>(2)</enum><text>in subsection (b), by striking <quote>, other than a manufactured home,</quote>.</text> </paragraph></section><section display-inline="no-display-inline" id="HFB824B6ACDAF4061BACCA583BE8F6AAD"><enum>294.</enum><header>Assisted housing energy loan pilot program</header> <subsection id="HD5B9C36A9E1B404BA1DD7075980DF933"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Secretary shall develop and implement a pilot program under this section to facilitate the financing of cost-effective capital improvements for covered assisted housing projects to improve the energy efficiency and conservation of such projects.</text> </subsection><subsection id="HF6C7D753D04243E5994BED693E51E272"><enum>(b)</enum><header>Loans</header><text display-inline="yes-display-inline">The pilot program under this section shall involve not less than three and not more than five lenders, and shall provide for a privately financed loan to be made for a covered assisted housing project, which shall—</text> <paragraph id="H61EC4D0D41FE42C98ACF1D9B8A783156"><enum>(1)</enum><text display-inline="yes-display-inline">finance capital improvements for the project that meet such requirements as the Secretary shall establish, and may involve contracts with third parties to perform such capital improvements, including the design of such improvements by licensed professional architects or engineers;</text> </paragraph><paragraph id="HDA1C49D6D58246219B1BFFBE41907D21"><enum>(2)</enum><text>have a term to maturity of not more than 20 years, which shall be based upon the duration necessary to realize cost savings sufficient to repay the loan;</text> </paragraph><paragraph id="HD22A4E4F06064EA0B4C910A76AF68650"><enum>(3)</enum><text>be secured by a mortgage subordinate to the mortgage for the project that is insured under the National Housing Act; and</text> </paragraph><paragraph id="HE744FDE2FCBC44218043D22B93DDB3FA"><enum>(4)</enum><text>provide for a reduction in the remaining principal obligation under the loan based on the actual resulting cost savings realized from the capital improvements financed with the loan.</text> </paragraph></subsection><subsection id="HE4B709B6577F4EBDA48525C9FF6EC7EE"><enum>(c)</enum><header>Underwriting standards</header><text>The Secretary shall establish underwriting requirements for loans made under the pilot program under this section, which shall—</text> <paragraph id="H02FC877077184FA7A96582D96FCE3181"><enum>(1)</enum><text>require the cost savings projected to be realized from the capital improvements financed with the loan, during the term of the loan, to exceed the costs of repaying the loan;</text> </paragraph><paragraph id="HE0A6C52289404ACA912877F9D96C3C18"><enum>(2)</enum><text>allow the designer or contractor involved in designing capital improvements to be financed with a loan under the program to carry out such capital improvements; and</text> </paragraph><paragraph id="HC7875DE602274A46834FB8DFE47FB220"><enum>(3)</enum><text>include such energy, audit, property, financial, ownership, and approval requirements as the Secretary considers appropriate.</text> </paragraph></subsection><subsection id="H671D17408C6C447A8B5D1291AD0F3D01"><enum>(d)</enum><header>Treatment of savings</header><text>The pilot program under this section shall provide that the project owner shall receive the full financial benefit from any reduction in the cost of utilities resulting from capital improvements financed with a loan made under the program.</text> </subsection><subsection id="HAC76BBDB901A44F0BB1689ED3E6D6543"><enum>(e)</enum><header>Covered assisted housing projects</header><text>For purposes of this section, the term <term>covered assisted housing project</term> means a housing project that—</text> <paragraph id="HB60A918C1E8B4068BAF3280D0F37E1EA"><enum>(1)</enum><text>is financed by a loan or mortgage that is—</text> <subparagraph id="H96C113D35A1F4FB5998ADE83240D4547"><enum>(A)</enum><text>insured by the Secretary under—</text> <clause id="H35A5F71866794FFFA529D6B60CC32211"><enum>(i)</enum><text>subsection (d)(3) of section 221 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715l">12 U.S.C. 1715l</external-xref>), and bears interest at a rate determined under the proviso of section 221(d)(5) of such Act; or</text> </clause><clause id="H6D95FD4B369D48DFB3666F3D593ABCCA"><enum>(ii)</enum><text>subsection (d)(4) of such section 221.</text> </clause></subparagraph><subparagraph id="H4AE01191BE69475F8F6AE636DF2146F5"><enum>(B)</enum><text>insured or assisted under section 236 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-1">12 U.S.C. 1715z–1</external-xref>);</text> </subparagraph></paragraph><paragraph id="H223C9187FA8740B695C3C36A62CD3BEB"><enum>(2)</enum><text>at the time a loan under this section is made, is provided project-based rental assistance under section 8 of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref>) for 50 percent or more of the dwelling units in the project; and</text> </paragraph><paragraph id="HB2F256B470924D199340E2A1380C982E"><enum>(3)</enum><text>is not a housing project owned or held by the Secretary, or subject to a mortgage held by the Secretary.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="HF354C30A49404DE8B22FD4EDF10C7D35"><enum>295.</enum><header>Making it green</header> <subsection id="HC50649C6A0BF4ADFA63FF586B26764D6"><enum>(a)</enum><header>Partnerships with tree-planting organizations</header><text display-inline="yes-display-inline">The Secretary shall establish and provide incentives for developers of housing for which any HUD financial assistance, as determined by the Secretary, is provided for development, maintenance, operation, or other costs, to enter into agreements and partnerships with tree-planting organizations, nurseries, and landscapers to certify that trees, shrubs, grasses, and other plants are planted in the proper manner, are provided adequate maintenance, and survive for at least 3 years after planting or are replaced. The financial assistance determined by the Secretary as eligible under this section shall take into consideration such factors as cost effectiveness and affordability.</text> </subsection><subsection id="H2D2C273211A34FC78FBACCD9082FD0D8"><enum>(b)</enum><header>Making it Green Plan</header><text display-inline="yes-display-inline">In the case of any new or substantially rehabilitated housing for which HUD financial assistance, as determined in accordance with subsection (a), is provided by the Secretary for the development, construction, maintenance, rehabilitation, improvement, operation, or costs of the housing, including financial assistance provided through the Community Development Block Grant program under title I of the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5301">42 U.S.C. 5301 et seq.</external-xref>), the Secretary shall require the development of a plan that provides for—</text> <paragraph id="H128D116AC56346EA91D703B9B64508C7"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of new construction and improvements, siting of such housing and improvements in a manner that provides for energy efficiency and conservation to the extent feasible, taking into consideration location and project type;</text> </paragraph><paragraph display-inline="no-display-inline" id="HA34FA002BBA84341AAA9CB3511F13B2D"><enum>(2)</enum><text display-inline="yes-display-inline">minimization of the effects of construction, rehabilitation, or other development on the condition of existing trees;</text> </paragraph><paragraph id="H9BD1AF58071847A49AE9D637B5FE6A65"><enum>(3)</enum><text display-inline="yes-display-inline">selection and installation of indigenous trees, shrubs, grasses, and other plants based upon applicable design guidelines and standards of the International Society for Arboriculture;</text> </paragraph><paragraph id="H70C2E804AD1D4BEAAE1DAB4CA110341C"><enum>(4)</enum><text display-inline="yes-display-inline">post-planting care and maintenance of the landscaping relating to or affected by the housing in accordance with best management practices; and</text> </paragraph><paragraph id="H1E2A292158D045BD95B761D3759B96B0"><enum>(5)</enum><text>establishment of a goal for minimum greenspace or tree canopy cover for the housing site for which such financial assistance is provided, including guidelines and timetables within which to achieve compliance with such minimum requirements.</text> </paragraph></subsection><subsection id="HF38574F2F1DA49B9B488B08865A4FAE9"><enum>(c)</enum><header>Partnerships</header><text display-inline="yes-display-inline">In carrying out this section, the Secretary is encouraged to consult, as appropriate, with national organizations dedicated to providing housing assistance and related services to low-income families, such as the Alliance for Community Trees and its affiliates, the American Nursery and Landscape Association, the American Society of Landscape Architects, and the National Arbor Day Foundation.</text> </subsection></section><section display-inline="no-display-inline" id="H8D3BEBAE2202428CA0206EB8E9362B0D"><enum>296.</enum><header>Residential energy efficiency block grant program</header><text display-inline="no-display-inline">Title I of the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5301">42 U.S.C. 5301 et seq.</external-xref>) is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="HB4214182495442F68DE85D4826FA64E5" style="OLC"> <section id="HBD95ECA2262C449C840EC61606848AD5"><enum>123.</enum><header>Residential energy efficiency block grant program</header> <subsection id="HE3D912C5865547C3B6C17AED03DE3817"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">To the extent amounts are made available for grants under this section, the Secretary shall make grants under this section to States, metropolitan cities and urban counties, Indian tribes, and insular areas to carry out energy efficiency improvements in new and existing single-family and multifamily housing.</text> </subsection><subsection id="H3275ADB36B1941F68E6039229B90E38F"><enum>(b)</enum><header>Allocations</header> <paragraph id="H8ACA305190E9417AAC64BAE72399C4DE"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Of the total amount made available for each fiscal year for grants under this section that remains after reserving amounts pursuant to paragraph (2), the Secretary shall allocate for insular areas, for metropolitan cities and urban counties, and for States, an amount that bears the same ratio to such total amount as the amount allocated for such fiscal year under section 106 for Indian tribes, for insular areas, for metropolitan cities and urban counties, and for States, respectively, bears to the total amount made available for such fiscal year for grants under section 106.</text> </paragraph><paragraph id="H5A4C3873066A451C8676560A12EAAB33"><enum>(2)</enum><header>Set aside for Indian tribes</header><text>Of the total amount made available for each fiscal year for grants under this section, the Secretary shall allocate not less than 1 percent to Indian tribes.</text> </paragraph></subsection><subsection id="H71DE39AEDBD14A7BB374E1E8A2513E96"><enum>(c)</enum><header>Grant amounts</header> <paragraph id="HCCAEDE71FF194A308627E5C22D7DE812"><enum>(1)</enum><header>Entitlement communities</header><text display-inline="yes-display-inline">From the amounts allocated pursuant to subsection (b) for metropolitan cities and urban counties for each fiscal year, the Secretary shall make a grant for such fiscal year to each metropolitan city and urban county that complies with the requirement under subsection (d), in the amount that bears the same ratio such total amount so allocated as the amount of the grant for such fiscal year under section 106 for such metropolitan city or urban county bears to the aggregate amount of all grants for such fiscal year under section 106 for all metropolitan cities and urban counties.</text> </paragraph><paragraph id="HC5E73BCBDC0047FF99D3E2DDB8C7A15C"><enum>(2)</enum><header>States</header><text display-inline="yes-display-inline">From the amounts allocated pursuant to subsection (b) for States for each fiscal year, the Secretary shall make a grant for such fiscal year to each State that complies with the requirement under subsection (d), in the amount that bears the same ratio such total amount so allocated as the amount of the grant for such fiscal year under section 106 for such State bears to the aggregate amount of all grants for such fiscal year under section 106 for all States. Grant amounts received by a State shall be used only for eligible activities under subsection (e) carried out in nonentitlement areas of the State.</text> </paragraph><paragraph id="H4A42820260A941A6A83B3B742094C3E0"><enum>(3)</enum><header>Indian tribes</header><text display-inline="yes-display-inline">From the amounts allocated pursuant to subsection (b) for Indian tribes, the Secretary shall make grants to Indian tribes that comply with the requirement under subsection (d) on the basis of a competition conducted pursuant to specific criteria, as the Secretary shall establish by regulation, for the selection of Indian tribes to receive such amount.</text> </paragraph><paragraph id="H3171FACD4908473BAD8DC26D9B91EAB3"><enum>(4)</enum><header>Insular areas</header><text display-inline="yes-display-inline">From the amounts allocated pursuant to subsection (b) for insular areas, the Secretary shall make a grant to each insular area that complies with the requirement under subsection (d) on the basis of the ratio of the population of the insular area to the aggregate population of all insular areas. In determining the distribution of amounts to insular areas, the Secretary may also include other statistical criteria as data become available from the Bureau of Census of the Department of Labor, but only if such criteria are set forth by regulation issued after notice and an opportunity for comment.</text> </paragraph></subsection><subsection id="HD13C5D53099D4C58A08606C6390BE799"><enum>(d)</enum><header>Statement of activities</header> <paragraph id="HB4D23D7184E54F5DB214B11AB3AE7C2D"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Before receipt the receipt in any fiscal year of a grant under subsection (c) by any grantee, the grantee shall have prepared a final statement of housing energy efficiency objectives and projected use of funds as the Secretary shall require and shall have provided the Secretary with such certifications regarding such objectives and use as the Secretary may require. In the case of metropolitan cities, urban counties, units of general local government, and insular areas receiving grants, the statement of projected use of funds shall consist of proposed housing energy efficiency activities. In the case of States receiving grants, the statement of projected use of funds shall consist of the method by which the States will distribute funds to units of general local government.</text> </paragraph><paragraph id="H1496EAC3D796418BB70560D29BB5FB24"><enum>(2)</enum><header>Public participation</header><text>The Secretary may establish requirements to ensure the public availability of information regarding projected use of grant amounts and public participation in determining such projected use.</text> </paragraph></subsection><subsection id="HA76243846F244435831760D8D888BC36"><enum>(e)</enum><header>Eligible activities</header> <paragraph id="H653DADF807CC456EA90C2D9447C46529"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Amounts from a grant under this section may be used only to carry out activities for single-family or multifamily housing that are designed to improve the energy efficiency of the housing so that the housing complies with the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title>, including such activities to provide energy for such housing from renewable sources, such as wind, waves, solar, biomass, and geothermal sources.</text> </paragraph><paragraph commented="no" id="H993C6B4897824934BC992C14E7A6AA5F"><enum>(2)</enum><header>Preference for compliance beyond basic requirements</header><text>In selecting activities to be funded with amounts from a grant under this section, a grantee shall give more preference to activities based on the extent to which the activities will result in compliance by the housing with the enhanced energy efficiency and conservation standards, and the green building standards, under section 284(b) of such Act.</text> </paragraph></subsection><subsection id="HB3E62ABFCAFF48F9BB875043E0AB4F4C"><enum>(f)</enum><header>Reports</header><text>Each grantee of a grant under this section for a fiscal year shall submit to the Secretary, at a time determined by the Secretary, a performance and evaluation report concerning the use of grant amounts, which shall contain an assessment by the grantee of the relationship of such use to the objectives identified in the grantees statement under subsection (d).</text> </subsection><subsection id="HEEABF437931549C8858E6E5ACB0E7C9E"><enum>(g)</enum><header>Applicability of CDBG provisions</header><text display-inline="yes-display-inline">Sections 109, 110, and 111 of the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5309">42 U.S.C. 5309</external-xref>, 5310, 5311) shall apply to assistance received under this section to the same extent and in the same manner that such sections apply to assistance received under title I of such Act.</text> </subsection><subsection id="HFB42494590AB4AE3B36BF2652DADF3EB"><enum>(h)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated for grants under this section $2,500,000,000 for fiscal year 2010 and such sums as may be necessary for each fiscal year thereafter.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section display-inline="no-display-inline" id="HC5737DE1041A4110B98C32E12971DA21"><enum>297.</enum><header>Including sustainable development and transportation strategies in comprehensive housing affordability strategies</header><text display-inline="no-display-inline">Section 105(b) of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12705">42 U.S.C. 12705(b)</external-xref>) is amended—</text> <paragraph id="H9015462271F344BEA776F636548057B4"><enum>(1)</enum><text>by striking <quote>and</quote> at the end of paragraph (19);</text> </paragraph><paragraph id="HCF7AE7BA06CB46DEAF34B2F7D84FB661"><enum>(2)</enum><text>by striking the period at the end of paragraph (20) and inserting <quote>; and</quote>;</text> </paragraph><paragraph id="H2867ED78916B40C386CDC4A4FCAA8841"><enum>(3)</enum><text>and by inserting after paragraph (20) the following new paragraphs:</text> <quoted-block display-inline="no-display-inline" id="HB2608B7E647B4243ADA5BA101083FD55" style="OLC"> <paragraph id="HC4C9340D1E71440E93799FE630348421"><enum>(21)</enum><text>describe the jurisdiction’s strategies to encourage sustainable development for affordable housing, including single-family and multifamily housing, as measured by—</text> <subparagraph id="H09FE4EE4FA264043A89EC8AFC7A569B8"><enum>(A)</enum><text display-inline="yes-display-inline">greater energy efficiency and use of renewable energy sources, including any strategies regarding compliance with the energy efficiency standards under section 284(a) of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title> and with the enhanced energy efficiency and conservation standards, and the green building standards, under section 284(b) of such Act;</text> </subparagraph><subparagraph id="H6AEBE1DA00DC4E23B5C50C0F325C2B08"><enum>(B)</enum><text>increased conservation, recycling, and reuse of resources;</text> </subparagraph><subparagraph id="HD79A52167B7C4A5D9BBF7FE9BD99600C"><enum>(C)</enum><text>more effective use of existing infrastructure;</text> </subparagraph><subparagraph id="HB6EBF0AF79B8443BB7C611D22CA45FC7"><enum>(D)</enum><text display-inline="yes-display-inline">use of building materials and methods that are healthier for residents of the housing, including use of building materials that are free of added known carcinogens that are classified as Group 1 Known Carcinogens by the International Agency for Research on Cancer; and</text> </subparagraph><subparagraph id="H7247CB931C214CA8807D3B1546FE7556"><enum>(E)</enum><text>such other criteria as the Secretary determines, in consultation with the Secretary of Energy, the Secretary of Agriculture, and the Administrator of the Environmental Protection Agency, are in accordance with the purposes of this paragraph; and</text> </subparagraph></paragraph><paragraph id="H34ABB91491524D198356BF9AE590D409"><enum>(22)</enum><text>describe the jurisdiction’s efforts to coordinate its housing strategy with its transportation planning strategies to ensure to the extent practicable that residents of affordable housing have access to public transportation.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="HF95D7FE0C6074AEA8653A901A19DD001"><enum>298.</enum><header>Grant program to increase sustainable low-income community development capacity</header> <subsection id="H67C07AEBD7F648D4B405FC11FDA70A20"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary may make grants to nonprofit organizations to use for any of the following purposes:</text> <paragraph id="H4387635234C94D55AA7CB4DC3C8C0922"><enum>(1)</enum><text display-inline="yes-display-inline">Training, educating, supporting, or advising an eligible community development organization or qualified youth service and conservation corps in improving energy efficiency, resource conservation and reuse, design strategies to maximize energy efficiency, installing or constructing renewable energy improvements (such as wind, wave, solar, biomass, and geothermal energy sources), and effective use of existing infrastructure in affordable housing and economic development activities in low-income communities, taking into consideration energy efficiency standards under section 284(a) of this subtitle and with the enhanced energy efficiency and conservation standards, and the green building standards, under section 284(b) of this subtitle.</text> </paragraph><paragraph id="H901C5507EDE746788350A73B15F2045F"><enum>(2)</enum><text display-inline="yes-display-inline">Providing loans, grants, or predevelopment assistance to eligible community development organizations or qualified youth service and conservation corps to carry out energy efficiency improvements that comply with the energy efficiency standards under section 284(a) of this subtitle, resource conservation and reuse, and effective use of existing infrastructure in affordable housing and economic development activities in low-income communities. In providing assistance under this paragraph, the Secretary shall give more preference to activities based on the extent to which the activities will result in compliance with the enhanced energy efficiency and conservation standards, and the green building standards, under section 284(b) of this subtitle.</text> </paragraph><paragraph id="HBAC83534DD014B36B705F86A74D8D41D"><enum>(3)</enum><text>Such other purposes as the Secretary determines are in accordance with the purposes of this subsection.</text> </paragraph></subsection><subsection id="H4DB9B7F0E9CF42518B3CEEDD40147A54"><enum>(b)</enum><header>Application requirement</header><text>To be eligible for a grant under this section, a nonprofit organization shall prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.</text> </subsection><subsection display-inline="no-display-inline" id="H3D0DE957AD7F4FD5AC6DEAE9F94B1212"><enum>(c)</enum><header>Award of contracts</header><text display-inline="yes-display-inline">Contracts for architectural or engineering services funded with amounts from grants made under this section shall be awarded in accordance with <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/11">chapter 11</external-xref> of title 40, United States Code (relating to selection of architects and engineers).</text> </subsection><subsection commented="no" id="H3B1144A5A2AE45F8B637C521CCB8F31D"><enum>(d)</enum><header>Matching requirement</header><text>A grant made under this section may not exceed the amount that the nonprofit organization receiving the grant certifies, to the Secretary, will be provided (in cash or in-kind) from nongovernmental sources to carry out the purposes for which the grant is made.</text> </subsection><subsection id="H7898C243A3D74016B6766E79819AFE6A"><enum>(e)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text> <paragraph id="HB4071C21C38B45AC8E9944D376695874"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>nonprofit organization</term> has the meaning given such term in section 104 of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12704">42 U.S.C. 12704</external-xref>).</text> </paragraph><paragraph id="H0FC099E6AE9041339D2300A368156ACF"><enum>(2)</enum><text>The term <term>eligible community development organization</term> means—</text> <subparagraph id="H32DFEE2CA05E429C82DC8D7AA7C65059"><enum>(A)</enum><text display-inline="yes-display-inline">a unit of general local government (as defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12704">42 U.S.C. 12704</external-xref>));</text> </subparagraph><subparagraph id="H15AE307738524CC4BE2EF1A674AD0704"><enum>(B)</enum><text display-inline="yes-display-inline">a community housing development organization (as defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12704">42 U.S.C. 12704</external-xref>));</text> </subparagraph><subparagraph id="H6A15954BF7D045E39F96AF478C8187A4"><enum>(C)</enum><text display-inline="yes-display-inline">an Indian tribe or tribally designated housing entity (as such terms are defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103</external-xref>)); or</text> </subparagraph><subparagraph id="HA102625B28D546CF9A5382DA3AD4CBC1"><enum>(D)</enum><text display-inline="yes-display-inline">a public housing agency, as such term is defined in section 3(b) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437">42 U.S.C. 1437(b)</external-xref>).</text> </subparagraph></paragraph><paragraph id="H7E11976B73644CC9BD2C350F722B790C"><enum>(3)</enum><text>The term <term>low-income community</term> means a census tract in which 50 percent or more of the households have an income which is less than 80 percent of the greater of—</text> <subparagraph id="H64C4C90C58A5418E800BCD37D2235279"><enum>(A)</enum><text>the median gross income for such year for the area in which such census tract is located; or</text> </subparagraph><subparagraph id="H07B455608E404C1BA92E546265D63064"><enum>(B)</enum><text>the median gross income for such year for the State in which such census tract is located.</text> </subparagraph></paragraph></subsection><subsection id="HB20038461E864B51AC87108DCACD4028"><enum>(f)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to the Secretary to carry out this section $10,000,000 for each of fiscal years 2010 through 2014.</text> </subsection></section><section display-inline="no-display-inline" id="H215E3F7BA90D4DBB883D4090470838FC"><enum>299.</enum><header>HOPE VI green developments requirement</header> <subsection id="HB6B4DF761A0047489FB05AA9F825137E"><enum>(a)</enum><header>Mandatory component</header><text display-inline="yes-display-inline">Section 24(e) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437v">42 U.S.C. 1437v(e)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HB5B2420461FD4D7CBF80B792AC13CD9A" style="OLC"> <paragraph id="H621B6C6CDCE542019BFEDC1168BB5259"><enum>(4)</enum><header>Green developments requirement</header> <subparagraph id="H8C85B51418DF45BEAEE5F68F9DA31C01"><enum>(A)</enum><header>Requirement</header><text display-inline="yes-display-inline">The Secretary may not make a grant under this section to an applicant unless the proposed revitalization plan of the applicant to be carried out with such grant amounts meets the following requirements:</text> <clause id="HD74A0E83D60A48E5AA53873B2C6DA308"><enum>(i)</enum><header>Green communities criteria checklist</header><text>All residential construction under the proposed plan complies with the national Green Communities criteria checklist for residential construction that provides criteria for the design, development, and operation of affordable housing, as such checklist is in effect for purposes of this paragraph pursuant to subparagraph (D) at the date of the application for the grant, or any substantially equivalent standard or standards as determined by the Secretary, as follows:</text> <subclause id="HB2E4395693284B4797E9781BEC68D1A2"><enum>(I)</enum><text>The proposed plan shall comply with all items of the national Green Communities criteria checklist for residential construction that are identified as mandatory.</text> </subclause><subclause id="H5BCA05D8118341A29345709A70A26524"><enum>(II)</enum><text>The proposed plan shall comply with such other nonmandatory items of such national Green Communities criteria checklist so as to result in a cumulative number of points attributable to such nonmandatory items under such checklist of not less than—</text> <item id="HEE93DD9FF70B4F3FACE757CC78F98A9E"><enum>(aa)</enum><text>25 points, in the case of any proposed plan (or portion thereof) consisting of new construction; and</text> </item><item id="HB4C7FEAEFA544ADDB04EA6D9F45508A2"><enum>(bb)</enum><text>20 points, in the case of any proposed plan (or portion thereof) consisting of rehabilitation.</text> </item></subclause></clause><clause id="H046EF6E8B4F740A8B59E4DCCBE0BC5DA"><enum>(ii)</enum><header>Green buildings certification system</header><text>All nonresidential construction under the proposed plan complies with all minimum required levels of the green building rating systems and levels identified by the Secretary pursuant to subparagraph (C), as such systems and levels are in effect for purposes of this paragraph pursuant to subparagraph (D) at the time of the application for the grant.</text> </clause></subparagraph><subparagraph id="H511103EA6E634EDDA171D9006386FD2A"><enum>(B)</enum><header>Verification</header> <clause id="HF8CC91056F9147C080499A546B17BFF1"><enum>(i)</enum><header>In general</header><text>The Secretary shall verify, or provide for verification, sufficient to ensure that each proposed revitalization plan carried out with amounts from a grant under this section complies with the requirements under subparagraph (A) and that the revitalization plan is carried out in accordance with such requirements and plan.</text> </clause><clause id="H58A972D7E29F4D0E9D6F389880881E08"><enum>(ii)</enum><header>Timing</header><text>In providing for such verification, the Secretary shall establish procedures to ensure such compliance with respect to each grantee, and shall report to the Congress with respect to the compliance of each grantee, at each of the following times:</text> <subclause id="H7751224F691646849A5A527E22E8B0BB"><enum>(I)</enum><text>Not later than 6 months after execution of the grant agreement under this section for the grantee.</text> </subclause><subclause id="HD646B32D0C264796B7B8FAA1FF009151"><enum>(II)</enum><text>Upon completion of the revitalization plan of the grantee.</text> </subclause></clause></subparagraph><subparagraph id="H8879DC7DC82D4FA39FFA7DFB28732EEF"><enum>(C)</enum><header>Identification of green buildings rating systems and levels</header> <clause id="H93084B248C584069B5D9B461B643D280"><enum>(i)</enum><header>In general</header><text>For purposes of this paragraph, the Secretary shall identify rating systems and levels for green buildings that the Secretary determines to be the most likely to encourage a comprehensive and environmentally sound approach to ratings and standards for green buildings. The identification of the ratings systems and levels shall be based on the criteria specified in clause (ii), shall identify the highest levels the Secretary determines are appropriate above the minimum levels required under the systems selected. Within 90 days of the completion of each study required by clause (iii), the Secretary shall review and update the rating systems and levels, or identify alternative systems and levels for purposes of this paragraph, taking into account the conclusions of such study.</text> </clause><clause id="HF340EEBBA8F04739836F2D5099FC29BE"><enum>(ii)</enum><header>Criteria</header><text>In identifying the green rating systems and levels, the Secretary shall take into consideration—</text> <subclause id="H1E84BC6A86374927ADEB0A8D8BC42975"><enum>(I)</enum><text>the ability and availability of assessors and auditors to independently verify the criteria and measurement of metrics at the scale necessary to implement this paragraph;</text> </subclause><subclause id="H6CF1C93C057C4E4F8639C58B925B5031"><enum>(II)</enum><text>the ability of the applicable ratings system organizations to collect and reflect public comment;</text> </subclause><subclause id="HF8B7876A98394798A8CD5C39C6A01F9E"><enum>(III)</enum><text>the ability of the standards to be developed and revised through a consensus-based process;</text> </subclause><subclause id="H834E8DBB1460466E827409C3B1989568"><enum>(IV)</enum><text display-inline="yes-display-inline">An evaluation of the robustness of the criteria for a high-performance green building, which shall give credit for promoting—</text> <item id="H3026DBFD83D5401399900002385E676C"><enum>(aa)</enum><text>efficient and sustainable use of water, energy, and other natural resources;</text> </item><item id="H5A5563D9EB1C44B9AB8FFB385A786618"><enum>(bb)</enum><text>use of renewable energy sources;</text> </item><item id="H3CEE105B43F14D4BA1B86A7AA2720680"><enum>(cc)</enum><text display-inline="yes-display-inline">improved indoor and outdoor environmental quality through enhanced indoor and outdoor air quality, thermal comfort, acoustics, outdoor noise pollution, day lighting, pollutant source control, sustainable landscaping, and use of building system controls and low- or no-emission materials, including preference for materials with no added carcinogens that are classified as Group 1 Known Carcinogens by the International Agency for Research on Cancer; and</text> </item><item id="H50927A6B48924F75AAC6B191D31AC3A7"><enum>(dd)</enum><text>such other criteria as the Secretary determines to be appropriate; and</text> </item></subclause><subclause id="HDFE91A9FB62D481BBCE31DA0E31ADDF6"><enum>(V)</enum><text>national recognition within the building industry.</text> </subclause></clause><clause id="HC1CD76493A834925A73D9884A342E535"><enum>(iii)</enum><header>5-year evaluation</header><text>At least once every 5 years, the Secretary shall conduct a study to evaluate and compare available third-party green building rating systems and levels, taking into account the criteria listed in clause (ii).</text> </clause></subparagraph><subparagraph id="HB1D23139AD614F999FA0343D1A70787D"><enum>(D)</enum><header>Applicability and updating of standards</header> <clause id="H73AB7C1978314E43BC954BF06377A051"><enum>(i)</enum><header>Applicability</header><text>Except as provided in clause (ii) of this subparagraph, the national Green Communities criteria checklist and green building rating systems and levels referred to in clauses (i) and (ii) of subparagraph (A) that are in effect for purposes of this paragraph are such checklist systems, and levels as in existence upon the date of the enactment of the <short-title>Green Resources for Energy Efficient Neighborhoods Act of 2009</short-title>.</text> </clause><clause id="H16C6989D11F340FBB8EE5F172AFF2B9B"><enum>(ii)</enum><header>Updating</header><text>The Secretary may, by regulation, adopt and apply, for purposes of this paragraph, future amendments and supplements to, and editions of, the national Green Communities criteria checklist, any standard or standards that the Secretary has determined to be substantially equivalent to such checklist, and the green building ratings systems and levels identified by the Secretary pursuant to subparagraph (C).</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE74C3A9C9C4D4F26AD9ADCA4843859D5"><enum>(b)</enum><header>Selection criteria; graded component</header><text>Section 24(e)(2) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437v">42 U.S.C. 1437v(e)(2)</external-xref>) is amended—</text> <paragraph id="H64C3B16EEB9C404C8A09877C7255A961"><enum>(1)</enum><text>in subparagraph (K), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="H4939E62A069C4E3A8BA6211B66EFA9FB"><enum>(2)</enum><text>by redesignating subparagraph (L) as subparagraph (M); and</text> </paragraph><paragraph id="HC5E90175BA8A4E8F84CFF63C3FA16294"><enum>(3)</enum><text>by inserting after subparagraph (K) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H43BED3FC055F4F80BC84224D50370319" style="OLC"> <subparagraph id="H2EB69F0A1E284DA3A3216140F9CA9A9A"><enum>(L)</enum><text display-inline="yes-display-inline">the extent to which the proposed revitalization plan—</text> <clause id="H56654893306446748366203D6F33662C"><enum>(i)</enum><text>in the case of residential construction, complies with the nonmandatory items of the national Green Communities criteria checklist identified in paragraph (4)(A)(i), or any substantially equivalent standard or standards as determined by the Secretary, but only to the extent such compliance exceeds the compliance necessary to accumulate the number of points required under such paragraph; and</text> </clause><clause id="H73DCCC5280054465BD5C1E471B7EECAD"><enum>(ii)</enum><text>in the case of nonresidential construction, complies with the components of the green building rating systems and levels identified by the Secretary pursuant to paragraph (4)(C), but only to the extent such compliance exceeds the minimum level required under such systems and levels; and</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section display-inline="no-display-inline" id="H6A73818BF0D848DA9DF956A211389EBB"><enum>299A.</enum><header>Consideration of energy efficiency improvements in appraisals</header> <subsection id="H3D320CAECE0E4283822073D5275DC04E"><enum>(a)</enum><header>Appraisals in connection with federally related transactions</header> <paragraph id="HC9D58802D98A4B76AA566F56937D8D76"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Section 1110 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3339">12 U.S.C. 3339</external-xref>) is amended—</text> <subparagraph id="H72EA07E5708A4D9189A2A1CAF9D28F50"><enum>(A)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="H72157AB8959F4D5498AF79CC9AAB4F4E"><enum>(B)</enum><text>by redesignating paragraph (2) as paragraph (3); and</text> </subparagraph><subparagraph id="HD6479A9360A54F4283ABA60092829767"><enum>(C)</enum><text>by inserting after paragraph (1) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HEEE3FB4976414F57BDF41EE38F43814A" style="OLC"> <paragraph id="H247F56A123BB42BCA369A6247A968E8B"><enum>(2)</enum><text display-inline="yes-display-inline">that such appraisals be performed in accordance with appraisal standards that require, in determining the value of a property, consideration of any renewable energy sources for, or energy efficiency or energy-conserving improvements or features of, the property; and</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="HC472D1AC26734F36AC4D30E8572B2FAD"><enum>(2)</enum><header>Revision of appraisal standards</header><text display-inline="yes-display-inline">Each Federal financial institutions regulatory agency shall, not later than 6 months after the date of the enactment of this Act, revise its standards for the performance of real estate appraisals in connection with federally related transactions under the jurisdiction of the agency to comply with the requirement under the amendments made by paragraph (1) of this subsection.</text> </paragraph></subsection><subsection id="H8DED3C02C9FA40CDA2EED2069C44D96F"><enum>(b)</enum><header>Appraiser certification and licensing requirements</header><text display-inline="yes-display-inline">Section 1116 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3345">12 U.S.C. 3345</external-xref>) is amended—</text> <paragraph id="HE16679438215499EAF4C71AD3733D94E"><enum>(1)</enum><text>in subsection (a), by inserting before the period at the end the following: <quote>, and meets the requirements established pursuant to subsection (f) for qualifications regarding consideration of any renewable energy sources for, or energy efficiency or energy-conserving improvements or features of, the property</quote>;</text> </paragraph><paragraph id="H37AC451CF6A5453F9D5649D50184194A"><enum>(2)</enum><text>in subsection (c), by inserting before the period at the end the following: <quote>, which shall include compliance with the requirements established pursuant to subsection (f) regarding consideration of any renewable energy sources for, or energy efficiency or energy-conserving improvements or features of, the property</quote>;</text> </paragraph><paragraph commented="no" id="HF8BA8A917402417D811E33A73A03C0D7"><enum>(3)</enum><text>in subsection (e), by striking <quote>The</quote> and inserting <quote>Except as provided in subsection (f), the</quote>; and</text> </paragraph><paragraph id="H4674AA4DA84E49CF8815130898CB57F5"><enum>(4)</enum><text>by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H6F7D8ED72E404995A6F4A9E4819297E0" style="OLC"> <subsection id="H66E5335D1C814BBB8E4C43844C720399"><enum>(f)</enum><header>Requirements for appraisers regarding energy efficiency features</header><text display-inline="yes-display-inline">The Appraisal Subcommittee shall establish requirements for State certification of State certified real estate appraisers and for State licensing of State licensed appraisers, to ensure that appraisers consider and are qualified to consider, in determining the value of a property, any renewable energy sources for, or energy efficiency or energy-conserving improvements or features of, the property.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H4037C4DBFF8542788864816F71C3E048"><enum>(c)</enum><header>Guidelines for appraising photovoltaic measures and training of appraisers</header><text>Section 1122 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3351">12 U.S.C. 3351</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HBA19C7474D0B418EBA4497F22C9979A8" style="OLC"> <subsection id="HC0AEF0554FDB44928F2B913B0673C074"><enum>(g)</enum><header>Guidelines for appraising photovoltaic measures and training of appraisers</header><text display-inline="yes-display-inline">The Appraisal Subcommittee shall, in consultation with the Secretary of Housing and Urban Development, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation, establish specific guidelines for—</text> <paragraph id="H9AB8D824898C45D990708DB5DCEE6575"><enum>(1)</enum><text>appraising off- and on-grid photovoltaic measures for compliance with the appraisal standards prescribed pursuant to section 1110(2);</text> </paragraph><paragraph id="H74CCBB70BE22465F8B23C29EC7D5D3B8"><enum>(2)</enum><text>requirements under section 1116(f) for certification of State certified real estate appraisers and for State licensing of State licensed appraisers, to ensure that appraisers consider, and are qualified to consider, such photovoltaic measures in determining the value of a property; and</text> </paragraph><paragraph id="H5239C581FC334DF8A13554DC2D5B2554"><enum>(3)</enum><text>training of appraisers to meet the requirements established pursuant to paragraph (2) of this subsection.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section display-inline="no-display-inline" id="HE79D1103DA014C1A9DDE55617949B541"><enum>299B.</enum><header>Housing Assistance Council</header><text display-inline="no-display-inline">The Secretary shall require the Housing Assistance Council—</text> <paragraph id="H3A2737BD32284691B970CA97084146E2"><enum>(1)</enum><text>to encourage each organization that receives assistance from the Council with any amounts made available from the Secretary to provide that any structures and buildings developed or assisted under projects, programs, and activities funded with such amounts complies with the energy efficiency standards under section 284(a) of this subtitle; and</text> </paragraph><paragraph id="HBFCC9F41D12D48B58CF6E41844A6A0AF"><enum>(2)</enum><text>to establish incentives to encourage each such organization to provide that any such structures and buildings comply with the energy efficiency and conservation standards, and the green building standards, under section 284(b) of such Act.</text> </paragraph></section><section display-inline="no-display-inline" id="HDC70AC580BF64F2B957DCB23F1FD6F15"><enum>299C.</enum><header>Rural housing and economic development assistance</header><text display-inline="no-display-inline">The Secretary shall—</text> <paragraph id="HF53FA55EE4034AA09B64EC88F2F9DB1E"><enum>(1)</enum><text display-inline="yes-display-inline">require each tribe, agency, organization, corporation, and other entity that receives any assistance from the Office of Rural Housing and Economic Development of the Department of Housing and Urban Development to provide that any structures and buildings developed or assisted under activities funded with such amounts complies with the energy efficiency standards under section 284(a) of this subtitle; and</text> </paragraph><paragraph id="H1B10416206F94D75A8CA187337F189F4"><enum>(2)</enum><text>establish incentives to encourage each such tribe, agency, organization, corporation, and other entity to provide that any such structures and buildings comply with the enhanced energy efficiency and conservation standards, and the green building standards, under section 284(b) of such Act.</text> </paragraph></section><section display-inline="no-display-inline" id="H1EE198ECA61F41A9A39E8A67AA02B2A3"><enum>299D.</enum><header>Loans to States and Indian tribes to carry out renewable energy sources activities</header> <subsection id="H02C65F78E8D34B45B140368262241F69"><enum>(a)</enum><header>Establishment of Fund</header><text>There is established in the Treasury of the United States a fund, to be known as the <quote>Alternative Energy Sources State Loan Fund</quote>.</text> </subsection><subsection id="H31A0DB50C9F348B19AF630FF8704BBE4"><enum>(b)</enum><header>Expenditures</header> <paragraph id="HB75E84A1D133492187CE04AAF5F711CE"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), on request by the Secretary, the Secretary of the Treasury shall transfer from the Fund to the Secretary such amounts as the Secretary determines are necessary to provide loans under subsection (c)(1).</text> </paragraph><paragraph id="HD648836ECEB94A64B0E7CCE56D09363A"><enum>(2)</enum><header>Administrative expenses</header><text>Of the amounts in the Fund, not more than 5 percent shall be available for each fiscal year to pay the administrative expenses of the Department of Housing and Urban Development to carry out this section.</text> </paragraph></subsection><subsection id="H91A05A6728364FC692B59DB98CCA914E"><enum>(c)</enum><header>Loans to States and Indian Tribes</header> <paragraph id="HED20528B224D4D5485A44283B16CEF7C"><enum>(1)</enum><header>In general</header><text>The Secretary shall use amounts in the Fund to provide loans to States and Indian tribes to provide incentives to owners of single-family and multifamily housing, commercial properties, and public buildings to provide—</text> <subparagraph id="HC1BC2FC53E654F89B804E73A2B564DCE"><enum>(A)</enum><text>renewable energy sources for such structures, such as wind, wave, solar, biomass, or geothermal energy sources, including incentives to companies and business to change their source of energy to such renewable energy sources and for changing the sources of energy for public buildings to such renewable energy sources;</text> </subparagraph><subparagraph id="H4A0F506D21DD453382CF888344084EA3"><enum>(B)</enum><text>energy efficiency and energy conserving improvements and features for such structures; or</text> </subparagraph><subparagraph id="H3F26AB8A1581489E8EB5DC2E97F56E01"><enum>(C)</enum><text>infrastructure related to the delivery of electricity and hot water for structures lacking such amenities.</text> </subparagraph></paragraph><paragraph id="H4429B12FF2744BEF8949830D63079C14"><enum>(2)</enum><header>Eligibility</header><text>To be eligible to receive a loan under this subsection, a State or Indian tribe, directly or through an appropriate State or tribal agency, shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.</text> </paragraph><paragraph id="HA6B529291BB04749BF66605F83FA916B"><enum>(3)</enum><header>Criteria for approval</header><text>The Secretary may approve an application of a State or Indian tribe under paragraph (2) only if the Secretary determines that the State or tribe will use the funds from the loan under this subsection to carry out a program to provide incentives described in paragraph (1) that—</text> <subparagraph id="H1C2EC13BA8254CD087B926B50448DA3D"><enum>(A)</enum><text>requires that any such renewable energy sources, and energy efficiency and energy conserving improvements and features, developed pursuant to assistance under the program result in compliance of the structure so improved with energy efficiency requirements determined by the Secretary; and</text> </subparagraph><subparagraph id="H5DD760234F024319950C47375D770F13"><enum>(B)</enum><text>includes such compliance and audit requirements as the Secretary determines are necessary to ensure that the program is operated in a sound and effective manner.</text> </subparagraph></paragraph><paragraph id="H938D0A419F06496BB6BF60A9BAD2CD87"><enum>(4)</enum><header>Preference</header><text>In making loans during each fiscal year, the Secretary shall give preference to States and Indian tribes that have not previously received a loan under this subsection.</text> </paragraph><paragraph id="H6943BEE3A1554763BFF2F7FC1D644D1E"><enum>(5)</enum><header>Maximum amount</header><text>The aggregate outstanding principal amount from loans under this subsection to any single State or Indian tribe may not exceed $500,000,000.</text> </paragraph><paragraph id="H5BCE89B1C0344E77BDE39FC40CD8A925"><enum>(6)</enum><header>Loan terms</header><text>Each loan under this subsection shall have a term to maturity of not more than 10 years and shall bear interest at annual rate, determined by the Secretary, that shall not exceed interest rate charged by the Federal Reserve Bank of New York to commercial banks and other depository institutions for very short-term loans under the primary credit program, as most recently published in the Federal Reserve Statistical Release on selected interest rates (daily or weekly), and commonly referred to as the H.15 release, preceding the date of a determination for purposes of applying this paragraph.</text> </paragraph><paragraph id="H8E2195BFCB53450F99F47B7B8DBCA123"><enum>(7)</enum><header>Loan repayment</header><text>The Secretary shall require full repayment of each loan made under this section.</text> </paragraph></subsection><subsection id="HA0E3972E73A84560B6E9EA325B609764"><enum>(d)</enum><header>Investment of Amounts</header> <paragraph id="H15FE7CE06059469EAA1F34D5339721E3"><enum>(1)</enum><header>In general</header><text>The Secretary of the Treasury shall invest such amounts in the Fund that are not, in the judgment of the Secretary of the Treasury, required to meet needs for current withdrawals.</text> </paragraph><paragraph id="HE3320A87193349D6BE21821D35D0C2BD"><enum>(2)</enum><header>Obligations of united states</header><text>Investments may be made only in interest-bearing obligations of the United States.</text> </paragraph></subsection><subsection id="HFEE6352032BF4E06B926A6921C745485"><enum>(e)</enum><header>Reports</header> <paragraph id="HB9A481293C3E4A2F89DC2912674D64C3"><enum>(1)</enum><header>Reports to secretary</header><text>For each year during the term of a loan made under subsection (c), the State or Indian tribe that received the loan shall submit to the Secretary a report describing the State or tribal alternative energy sources program for which the loan was made and the activities conducted under the program using the loan funds during that year.</text> </paragraph><paragraph id="HC8480DE989C244239BE762271B367D11"><enum>(2)</enum><header>Report to congress</header><text>Not later than September 30 of each year that loans made under subsection (c) are outstanding, the Secretary shall submit a report to the Congress describing the total amount of such loans provided under subsection (c) to each eligible State and Indian tribe during the fiscal year ending on such date, and an evaluation on effectiveness of the Fund.</text> </paragraph></subsection><subsection id="H93ABEAC002464159A3A317D9E843FBA1"><enum>(f)</enum><header>Authorization of Appropriations</header><text>There is authorized to be appropriated to the Fund $5,000,000,000.</text> </subsection><subsection id="H4C92BDEDC7404123979F3D4836655059"><enum>(g)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text> <paragraph id="H178AF3054BF14E1696FF39F6C54C9AF1"><enum>(1)</enum><header>Indian tribe</header><text>The term <term>Indian tribe</term> has the meaning given such term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103</external-xref>).</text> </paragraph><paragraph id="HF451B07078AA41E9BE43FE9B11566CC9"><enum>(2)</enum><header>State</header><text>The term <term>State</term> means each of the several States, the Commonwealth of Puerto Rico, the District of Columbia, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, the Trust Territories of the Pacific, or any other possession of the United States.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H68342497C2394D67802D23DF7B5ED7C4"><enum>299E.</enum><header>Green banking centers</header> <subsection id="H1DDB3D486E384B9EA36AE99853BB7C81"><enum>(a)</enum><header>Insured depository institutions</header><text display-inline="yes-display-inline">Section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H19DB702208FF4DC6A477CC01754D238A" style="OLC"> <subsection id="H00A5E60F9895417C9ED31C6A0AEB2DEE"><enum>(x)</enum><header><quote>Green banking</quote> centers</header> <paragraph id="H8A786FFD0FD6416883652BAE889247DE"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Federal banking agencies shall prescribe guidelines encouraging the establishment and maintenance of <quote>green banking</quote> centers by insured depository institutions to provide any consumer who seeks information on obtaining a mortgage, home improvement loan, home equity loan, or renewable energy lease with additional information on—</text> <subparagraph id="H1D086903ED7149FEAF951A0B49866EBE"><enum>(A)</enum><text>obtaining an home energy rating or audit for the residence for which such mortgage or loan is sought;</text> </subparagraph><subparagraph id="HED7B7815C29E4868AE83AD0ABF178A7F"><enum>(B)</enum><text display-inline="yes-display-inline">obtaining financing for cost-effective energy-saving improvements to such property; and</text> </subparagraph><subparagraph id="HD978E9D510BD4CAAA3B0B691749D1463"><enum>(C)</enum><text display-inline="yes-display-inline">obtaining beneficial terms for any mortgage or loan, or qualifying for a larger mortgage or loan, secured by a residence which meets or will meet energy efficiency standards.</text> </subparagraph></paragraph><paragraph id="H40BF7D56253E479FB0D0BB1BB3A25D5E"><enum>(2)</enum><header>Information and referrals</header><text>The information made available to consumers under paragraph (1) may include—</text> <subparagraph id="HBD91A522AA714BB68ECA1E786375711F"><enum>(A)</enum><text display-inline="yes-display-inline">information on obtaining a home energy rating and contact information on qualified energy raters in the area of the residence;</text> </subparagraph><subparagraph id="HD34633A51BB947EDA8CE7645AC194DBC"><enum>(B)</enum><text display-inline="yes-display-inline">information on the secondary market guidelines that permit lenders to provide more favorable terms by allowing lenders to increase the ratio on debt-to-income requirements or to use the projected utility savings as a compensating factor;</text> </subparagraph><subparagraph id="H1FCCECA32507443B926856212FCD3FA7"><enum>(C)</enum><text display-inline="yes-display-inline">information including eligibility information about, and contact information for, any conservation or renewable energy programs, grants, or loans offered by the Secretary of Housing and Urban Development, including the Energy Efficient Mortgage Program;</text> </subparagraph><subparagraph id="HB5E68F1F417546B9BB613DAE6198DF76"><enum>(D)</enum><text display-inline="yes-display-inline">information including eligibility information about, and contact information for, any conservation or renewable energy programs, grants, or loans offered for qualified military personal, reservists, and veterans by the Secretary of Veterans Affairs;</text> </subparagraph><subparagraph id="H7B9761D9ED044265AF62D46549AFE1F5"><enum>(E)</enum><text display-inline="yes-display-inline">information about, and contact information for, the Office of Efficiency and Renewable Energy at the Department of Energy, including the weatherization assistance program;</text> </subparagraph><subparagraph id="H0BE1CCB10848496097EE6615848C15AD"><enum>(F)</enum><text display-inline="yes-display-inline">information about, and contact information for, the Energy Star Program of the Environmental Protection Agency;</text> </subparagraph><subparagraph id="H31F70E566FFD4BD3B58BE17C264F686F"><enum>(G)</enum><text>information from, and contact information for, the Federal Citizen Information Center of the General Services Administration on energy-efficient mortgages and loans, home energy rating systems, and the availability of energy-efficient mortgage information from a variety of Federal agencies; and</text> </subparagraph><subparagraph id="H6DE7F2B500424ECDA7B485F3B36567BD"><enum>(H)</enum><text>such other information as the agencies or the insured depository institution may determine to be appropriate or useful.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H59669ADB36034280BD9F708EF4021247"><enum>(b)</enum><header>Insured credit unions</header><text>Section 206 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1786">12 U.S.C. 1786</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H1797DD12D7354E1F933E2024A98B8A9C" style="OLC"> <subsection id="HDE228B8AFDDA4E1E83D7998DFE314D94"><enum>(x)</enum><header><quote>Green banking</quote> centers</header> <paragraph id="HC1CB79F12B714586AE45C27E54263620"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Board shall prescribe guidelines encouraging the establishment and maintenance of <quote>green banking</quote> centers by insured credit unions to provide any member who seeks information on obtaining a mortgage, home improvement loan, home equity loan, or renewable energy lease with additional information on—</text> <subparagraph id="H1A1D035227504C09A7EECF393537141D"><enum>(A)</enum><text>obtaining an home energy rating or audit for the residence for which such mortgage or loan is sought;</text> </subparagraph><subparagraph id="HE47AE58E0D5F4A2290522A50D2B5B639"><enum>(B)</enum><text display-inline="yes-display-inline">obtaining financing for cost-effective energy-saving improvements to such property; and</text> </subparagraph><subparagraph id="H90029AD351F64DE4A3E3811A711702DB"><enum>(C)</enum><text display-inline="yes-display-inline">obtaining beneficial terms for any mortgage or loan, or qualifying for a larger mortgage or loan, secured by a residence which meets or will meet energy efficiency standards.</text> </subparagraph></paragraph><paragraph id="H7C8AC9DE944B4F22BAA53C1E5C3DF056"><enum>(2)</enum><header>Information and referrals</header><text>The information made available to members under paragraph (1) may include—</text> <subparagraph id="H1CC21E2E3EB14200A9FEA703E1003076"><enum>(A)</enum><text display-inline="yes-display-inline">information on obtaining a home energy rating and contact information on qualified energy raters in the area of the residence;</text> </subparagraph><subparagraph id="HE3525C71C576473A90436042EE7EDDE8"><enum>(B)</enum><text display-inline="yes-display-inline">information on the secondary market guidelines that permit lenders to provide more favorable terms by allowing lenders to increase the ratio on debt-to-income requirements or to use the projected utility savings as a compensating factor;</text> </subparagraph><subparagraph id="H3A8B9997CDA646D79A802F1FBAD15913"><enum>(C)</enum><text display-inline="yes-display-inline">information including eligibility information about, and contact information for, any conservation or renewable energy programs, grants, or loans offered by the Secretary of Housing and Urban Development, including the Energy Efficient Mortgage Program;</text> </subparagraph><subparagraph id="HDFAB8BF2A3014883994AD40299DCAFFE"><enum>(D)</enum><text display-inline="yes-display-inline">information including eligibility information about, and contact information for, any conservation or renewable energy programs, grants, or loans offered for qualified military personal, reservists, and veterans by the Secretary of Veterans Affairs;</text> </subparagraph><subparagraph id="HF5FAE043EC3A45829D4CF29F5D5959F0"><enum>(E)</enum><text display-inline="yes-display-inline">information about, and contact information for, the Office of Efficiency and Renewable Energy at the Department of Energy, including the weatherization assistance program;</text> </subparagraph><subparagraph id="HC96269EB3F7640F3B5EE3C2E8DFE19BE"><enum>(F)</enum><text>information from, and contact information for, the Federal Citizen Information Center of the General Services Administration on energy-efficient mortgages and loans, home energy rating systems, and the availability of energy-efficient mortgage information from a variety of Federal agencies; and</text> </subparagraph><subparagraph id="H92159A33774543BCAD2C4ED5C5FEE503"><enum>(G)</enum><text>such other information as the Board or the insured credit union may determine to be appropriate or useful.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section display-inline="no-display-inline" id="HDFAE55BC2B3C4ED6960F3AEDE6FBCD5F"><enum>299F.</enum><header>GAO reports on availability of affordable mortgages</header> <subsection id="HD971099406A04470952FA5AF3A3BF6FB"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Comptroller General of the United States shall periodically, as necessary to comply with subsection (b), examine the impact of this subtitle and the amendments made by this subtitle on the availability of affordable mortgages in various areas throughout the United States, including cities having older infrastructure and limited space for the development of new housing.</text> </subsection><subsection id="HE5C974D72E46479497805F8D1EE45BE3"><enum>(b)</enum><header>Triennial reports</header><text display-inline="yes-display-inline">The Comptroller General shall submit a report once every 3 years to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that shall include—</text> <paragraph id="H191541FE8CA64E8191FBA508609EA242"><enum>(1)</enum><text>a detailed statement of the most recent findings pursuant to subsection (a); and</text> </paragraph><paragraph id="HE7F4F1DE7CF144199BF48125186FC80A"><enum>(2)</enum><text display-inline="yes-display-inline">if the Comptroller General finds that this subtitle or the amendments made by this subtitle have directly or indirectly resulted in consequences that limit the availability or affordability of mortgages in any area or areas within the United States, including any city having older infrastructure and limited space for the development of new housing, any recommendations for any additional actions at the Federal, State, or local levels that the Comptroller General considers necessary or appropriate to mitigate such effects.</text> </paragraph><continuation-text continuation-text-level="subsection">The first report under this subsection shall be submitted not later than the expiration of the 3-year period beginning on the date of the enactment of this Act.</continuation-text></subsection></section><section display-inline="no-display-inline" id="H60D49427A68F4FA79CACBC267E82044B"><enum>299G.</enum><header>Public housing energy cost report</header> <subsection id="H22FE4CAF2CAF49BFA455BA565E847013"><enum>(a)</enum><header>Collection of information by HUD</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development shall obtain from each public housing agency, by such time as may be necessary to comply with the reporting requirement under subsection (b), information regarding the energy costs for public housing administered or operated by the agency. For each public housing agency, such information shall include the monthly energy costs associated with each separate building and development of the agency, for the most recently completed 12-month period for which such information is available, and such other information as the Secretary determines is appropriate in determining which public housing buildings and developments are most in need of repairs and improvements to reduce energy needs and costs and become more energy efficient.</text> </subsection><subsection id="H1B61F326665A4A5FAFAC3CABC6426745"><enum>(b)</enum><header>Report</header><text>Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development shall submit a report to the Congress setting forth the information collected pursuant to subsection (a).</text> </subsection></section><section display-inline="no-display-inline" id="H1E8A9D64695043ACB5E4C72FA4FE8E92"><enum>299H.</enum><header>Secondary market for residential renewable energy lease instruments</header> <subsection id="HB1D4F732B1B642A5A8B3C976F2A347D0"><enum>(a)</enum><header>Purposes</header><text display-inline="yes-display-inline">The purposes of this section are—</text> <paragraph id="H8EC960757D1A4F5DBE1ED344D59C33B6"><enum>(1)</enum><text>to encourage residential use of renewable energy systems by minimizing up-front costs and providing immediate utility cost savings to consumers through leasing of such systems to homeowners;</text> </paragraph><paragraph id="H994FD1DFE2494119A5DD1DC6590A3319"><enum>(2)</enum><text>to reduce carbon emissions and the use of nonrenewable resources;</text> </paragraph><paragraph id="HC5766B309B7D40DBA66ED5EB657353F8"><enum>(3)</enum><text>to encourage energy-efficient residential construction and rehabilitation;</text> </paragraph><paragraph id="H078A174060324FE388762BF1C04901D0"><enum>(4)</enum><text>to encourage the use of renewable resources by homeowners;</text> </paragraph><paragraph id="H91D8E88C39CE49FC850E496E10ECE8DB"><enum>(5)</enum><text>to minimize the impact of development on the environment;</text> </paragraph><paragraph id="HA1D35A3CFF71446F97058108A4956283"><enum>(6)</enum><text>to reduce consumer utility costs; and</text> </paragraph><paragraph id="HCD3DCC869073433EA5924DD3A75AD0FE"><enum>(7)</enum><text>to encourage private investment in the green economy.</text> </paragraph></subsection><subsection id="H9911BB1C56514B819D7D6ECAE0704629"><enum>(b)</enum><header>Residual value of renewable energy asset</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development shall establish a means of determining the residual value of a renewable energy asset such that a secondary market for residential renewable energy lease instruments may be facilitated. Such means may include, without limitation, the calculation of residual value based on the net present value of projected future energy production of the renewable energy asset.</text> </subsection></section><section display-inline="no-display-inline" id="HC4FF2F3953C64762AD9FF370FA5BB0DF" section-type="subsequent-section"><enum>299I.</enum><header>Green guarantees</header> <subsection id="H0D6056F605E94ED291A97400A5874E26"><enum>(a)</enum><header>Authority To guarantee <quote>green portion</quote> of eligible mortgages</header> <paragraph id="HFBCDFA8F95C0423DBADB256564473F0D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development may make commitments to guarantee under this section and may guarantee, the repayment of the portions of the principal obligations of eligible mortgages that are used to finance eligible sustainable building elements for the housing that is subject to the mortgage.</text> </paragraph><paragraph id="H7FB1EFC3ABF04AF28615160698D0C4B3"><enum>(2)</enum><header>Amount of guarantee</header><text>A guarantee under this section by the Secretary in connection with an eligible mortgage shall not exceed a percentage of the green portion (as such term is defined in subsection (g)) of the mortgage, as shall be established by the Secretary and may be established on a regional basis as the Secretary determines appropriate.</text> </paragraph></subsection><subsection id="H94C7107A53B34AEBAC4C501B0428AD03"><enum>(b)</enum><header>Eligible mortgages</header><text>To be considered an eligible mortgage for purposes of this section, a mortgage shall comply with all of the following requirements:</text> <paragraph id="H0702AA2A2477465DAEA2255CAFEB0173"><enum>(1)</enum><header>Acquisition or construction of housing</header><text>The mortgage shall be made for the acquisition or construction of single- or multifamily housing and repayment of the mortgage shall be secured by an interest in such housing.</text> </paragraph><paragraph id="H433D03B368934D9CAF575589FF40712F"><enum>(2)</enum><header>Financing of eligible sustainable building elements through green portion of mortgage</header><text display-inline="yes-display-inline">A portion of the principal obligation of the mortgage, which meets the requirements under subsection (c), shall be used only for financing the provision of eligible sustainable building elements for the housing for which the mortgage was made.</text> </paragraph><paragraph id="H16E751C38F0342489088855264514FE8"><enum>(3)</enum><header>Maximum mortgage amount</header><text>The principal obligation of the mortgage (including the eligible portion of such mortgage, and such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve) may not exceed the following amounts:</text> <subparagraph id="HD7AA54F68C504E008F7465DCDE2EC6F4"><enum>(A)</enum><header>Single-family housing</header><text display-inline="yes-display-inline">Such dollar amounts for single-family housing as the Secretary shall establish, which may be established on the basis of the number of dwelling units in the housing, as the Secretary considers appropriate.</text> </subparagraph><subparagraph id="H75D11D9B8EE54E87BCF51FACB9989B77"><enum>(B)</enum><header>Multifamily housing</header><text>Such dollar amounts for multifamily housing as the Secretary shall establish, which may be established on the basis of the number of dwelling units in the housing and the number of bedrooms in such dwelling units, as the Secretary considers appropriate.</text> </subparagraph></paragraph><paragraph id="H926049646C9F4F0E945C2B7AA00C7069"><enum>(4)</enum><header>Repayment</header><text>The mortgage meets such requirements as the Secretary shall establish to ensure that there is a reasonable prospect of repayment of the principal and interest on the obligation by the mortgagor.</text> </paragraph><paragraph id="H1333D9BD0BE543C3A0D46E686034E61A"><enum>(5)</enum><header>Mortgage terms</header><text display-inline="yes-display-inline">The mortgage shall meet such requirements with respect to loan-to-value ratio, mortgagor credit scores, debt-to-income ratio, and other underwriting standards, term to maturity, interest rates and amortization, including amortization of the green portion of the mortgage, and other mortgage terms as the Secretary shall establish.</text> </paragraph></subsection><subsection id="H9950370F9B804B3C9630723858212A0B"><enum>(c)</enum><header>Limitations on green portion of mortgage</header><text>The requirements under this subsection with respect to the green portion of an eligible mortgage are as follows:</text> <paragraph id="HCC010CEC8D124482A4829FDACAEF7ACB"><enum>(1)</enum><header>Percentage limitation</header><text display-inline="yes-display-inline">Such portion shall not exceed, in the case of single-family or multifamily housing, 10 percent of the total principal obligation of the mortgage.</text> </paragraph><paragraph id="HCEC2654A4BE740D6921AE46F04C7EE9E"><enum>(2)</enum><header>Dollar amount limitation</header><text>Such portion shall not exceed—</text> <subparagraph id="H1CA3646540364139AE6437412D7ED8AB"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of single-family housing, such maximum dollar amount limitation as the Secretary shall establish, which may be established on the basis of the number of dwelling units in the housing, as the Secretary considers appropriate; and</text> </subparagraph><subparagraph id="H4B88A9D704A5440BAA7D1B9749B0A49A"><enum>(B)</enum><text>in the case of multifamily housing, such maximum dollar amount limitation as the Secretary shall establish, which limitation may be established on the basis of the number of dwelling units in the housing and the number of bedrooms in such dwelling units, as the Secretary considers appropriate.</text> </subparagraph></paragraph><paragraph commented="no" id="HF61F84FEF78C4FD4AF6631B403A69493"><enum>(3)</enum><header>Cost-effectiveness limitation</header><text display-inline="yes-display-inline">Such portion shall not exceed the total present value of the savings (as determined in accordance with subsection (d)) attributable to the incorporation of the eligible sustainable building elements to be financed with the green portion of the mortgage that are to be realized over the useful life of such elements.</text> </paragraph></subsection><subsection id="HF8EE4B9C6247461FB331DDB04FCF60C0"><enum>(d)</enum><header>Eligible sustainable building elements</header><text>The Secretary may not guarantee any eligible mortgage under this section unless the mortgagor has demonstrated, in accordance with such requirements as the Secretary shall establish, the amount of savings attributable to incorporation of the sustainable building elements to be financed with the green portion of the mortgage, as measured by the National Green Building Standard for all residential construction developed by the National Association of Home Builders and the U.S. Green Building Council, and approved by the American National Standards Institute, as updated and in effect at the time of such demonstration.</text> </subsection><subsection id="H311963792D714F3DA496CE611059D8E3"><enum>(e)</enum><header>Guarantee fee</header> <paragraph id="H2D40EA264A214FBF9C59F4D847355032"><enum>(1)</enum><header>Assessment and collection</header><text display-inline="yes-display-inline">The Secretary shall assess and collect fees for guarantees under this section in amounts that the Secretary determines are sufficient to cover the costs (as such term is defined in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>)) of such guarantees.</text> </paragraph><paragraph id="HE9BA84D6870E4E01A6D07641B6721A42"><enum>(2)</enum><header>Availability</header><text display-inline="yes-display-inline">Fees collected under this subsection shall be deposited by the Secretary in the Treasury of the United States and shall remain available until expended, subject to such other conditions as are contained in annual appropriations Acts.</text> </paragraph></subsection><subsection id="H5702226BA36F486B85D6FDE33A5F62B3"><enum>(f)</enum><header>Payment of guarantee</header> <paragraph id="HC4E632AF079F45B1A374749F245502C8"><enum>(1)</enum><header>Default</header> <subparagraph id="H147364F0F44C46AD8F29CEEDC0152495"><enum>(A)</enum><header>Right to payment</header><text display-inline="yes-display-inline">If a mortgagor under a mortgage guaranteed under this section defaults (as defined in regulations issued by the Secretary and specified in the guarantee contract) on the obligation under the mortgage—</text> <clause id="HBFBFD9F7DD934D289569F7EE576A02E5"><enum>(i)</enum><text>the holder of the guarantee shall have the right to demand payment of the unpaid amount of the guaranteed portion of the mortgage, to the extent provided under subsection (a)(2), from the Secretary; and</text> </clause><clause id="H2116C9CDC6FF4B3B999D50CB36B26906"><enum>(ii)</enum><text>within such period as may be specified in the guarantee or related agreements, the Secretary shall pay to the holder of the guarantee, to the extent provided under subsection (a)(2), the unpaid interest on, and unpaid principal of the portion of guaranteed portion of the mortgage with respect to which the borrower has defaulted, unless the Secretary finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied.</text> </clause></subparagraph><subparagraph id="HA520073365304EEEA3D355EA5942B7A7"><enum>(B)</enum><header>Forbearance</header><text>Nothing in this paragraph precludes any forbearance by the holder of an eligible mortgage for the benefit of the mortgagor which may be agreed upon by the parties to the mortgage and approved by the Secretary.</text> </subparagraph></paragraph><paragraph id="H8A4E64BC50704BBD9182BE17E7E07BC3"><enum>(2)</enum><header>Subrogation</header> <subparagraph id="H78669F1086F54F28B60E03E97D8BC5F8"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If the Secretary makes a payment under paragraph (1), the Secretary shall be subrogated to the rights of the recipient of the payment as specified in the guarantee or related agreements including, if appropriate, the authority (notwithstanding any other provision of law)—</text> <clause id="HA41E6D4000224CCBB8598D8926C43AC8"><enum>(i)</enum><text>to complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to such guarantee or related agreements; or</text> </clause><clause id="HC61B9222597A4C6BB07CA039CB9FDBAE"><enum>(ii)</enum><text>to permit the mortgagor, pursuant to an agreement with the Secretary, to continue to occupy the property subject to the mortgage, if the Secretary determines such occupancy to be appropriate.</text> </clause></subparagraph><subparagraph id="H91512DFD853341CF8FCE0313AD243ADC"><enum>(B)</enum><header>Superiority of rights</header><text>The rights of the Secretary, with respect to any property acquired pursuant to a guarantee or related agreements, shall be superior to the rights of any other person with respect to the property.</text> </subparagraph><subparagraph id="HEF8E5B5AACB74357B8237BCC4A2D36BC"><enum>(C)</enum><header>Terms and conditions</header><text display-inline="yes-display-inline">A guarantee agreement shall include such detailed terms and conditions as the Secretary determines appropriate to protect the interests of the United States in the case of default.</text> </subparagraph></paragraph><paragraph id="H262CF2DA80D8425282E14C4734D6A7F7"><enum>(3)</enum><header>Full faith and credit</header><text>The full faith and credit of the United States is pledged to the payment of all guarantees issued under this section with respect to principal and interest.</text> </paragraph></subsection><subsection id="H9AC94BF946EB479C950A90E372355929"><enum>(g)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text> <paragraph id="H2D0BC057C51C45C69934EF8428D8D330"><enum>(1)</enum><header>Eligible mortgage</header><text>The term <term>eligible mortgage</term> means a mortgage that meets the requirements under subsection (b).</text> </paragraph><paragraph id="HB21F489ABF024B3CB7E622E8D33B815D"><enum>(2)</enum><header>Green portion</header><text display-inline="yes-display-inline">The term <term>green portion</term> means, with respect to an eligible mortgage, the portion of the mortgage principal referred to in subsection (b)(2) that is attributable, as determined in accordance with regulations issued by the Secretary, to the increased costs incurred in financing provision of sustainable building elements for the housing for which the mortgage was made, as compared to the costs that would have been incurred in financing the provision of other building elements for the housing for the same purposes that are commonly or conventionally used but are not sustainable building elements.</text> </paragraph><paragraph id="H148CE474C36047FE9AB5EA836F58D7A1"><enum>(3)</enum><header>Guaranteed portion</header><text>The term <term>guaranteed portion</term> means, with respect to an eligible mortgage guaranteed under this section, the green portion of the mortgage that is so guaranteed.</text> </paragraph><paragraph id="H891655851FD04A608891554252ECA587"><enum>(4)</enum><header>Mortgage</header><text>The term <term>mortgage</term> has the meaning given such term in section 201 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707</external-xref>).</text> </paragraph><paragraph id="H0D722B23955349858E61C09296CB3651"><enum>(5)</enum><header>Multifamily housing</header><text>The term <term>multifamily housing</term> means a residential property consisting of five or more dwelling units.</text> </paragraph><paragraph id="H63F00696D5D9435297A5E62052C98D1F"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Housing and Urban Development.</text> </paragraph><paragraph id="HD006E085871A4D7EBA86558A205211F8"><enum>(7)</enum><header>Single-family housing</header><text>The term <term>single-family housing</term> means a residential property consisting of one to four dwelling units.</text> </paragraph><paragraph id="H16BE61C4A6B34840BB90159CC754ACA4"><enum>(8)</enum><header>Sustainable building element</header><text>The term <term>sustainable building element</term> means such building elements, as the Secretary shall define, that have energy efficiency or environmental sustainability qualities that are superior to such qualities for other building elements for the same purposes that are commonly or conventionally used.</text> </paragraph></subsection><subsection id="H50ED2B32A10544B995166631DE8CE6FC"><enum>(h)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated for costs (as such term is defined in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>) of guarantees under this section $500,000,000 for each of fiscal years 2010 through 2014.</text> </subsection><subsection id="HA935AF6BF44F42B29BA7343E95FCC1BB"><enum>(i)</enum><header>Regulations</header><text>The Secretary shall issue any regulations necessary to carry out this section.</text> </subsection></section></subtitle><enum>III</enum><header>Reducing Global Warming Pollution</header> <section id="HA85AAFC2872D48BFB3776F19A8DC9356"><enum>301.</enum><header>Short title</header><text display-inline="no-display-inline">This title, and sections 112, 116, 221, 222, 223, and 401 of this Act, and the amendments made by this title and those sections, may be cited as the <quote><short-title>Safe Climate Act</short-title></quote>.</text> </section><subtitle id="HCCB699ABBC0544C0ACEAC87F17E1DE46"><enum>A</enum><header>Reducing Global Warming Pollution</header> <section id="HB4007031EDF54421860207B5990ADB1B" section-type="subsequent-section"><enum>311.</enum><header>Reducing global warming pollution</header><text display-inline="no-display-inline">The Clean Air Act (42 U.S.C. and following) is amended by adding after title VI the following new title:</text> <quoted-block display-inline="no-display-inline" id="H832CFE0A75A84EC9BA83FD6FFF126825" style="OLC"> <title id="HB1235074F6C74F7DB17E351FF34B33A2"><enum>VII</enum><header>Global Warming Pollution Reduction Program</header> <part id="HF671CE78FC194F8BABCB8F98C5450DE0"><enum>A</enum><header>Global Warming Pollution Reduction Goals and Targets</header> <section id="H5B8F52E521DF4525A86192CB3A0C33AD"><enum>701.</enum><header>Findings and purpose</header> <subsection id="H72F1A43168C8467F868F3A856BCA35EC"><enum>(a)</enum><header>Findings</header><text>The Congress finds as follows:</text> <paragraph id="H762C332A2C5B4C31B54DBA6CD211F3B2"><enum>(1)</enum><text>Global warming poses a significant threat to the national security, economy, public health and welfare, and environment of the United States, as well as of other nations.</text> </paragraph><paragraph id="HCA07B6ED85E04BCC9C3B88543739242D"><enum>(2)</enum><text>Reviews of scientific studies, including by the Intergovernmental Panel on Climate Change and the National Academy of Sciences, demonstrate that global warming is the result of the combined anthropogenic greenhouse gas emissions from numerous sources of all types and sizes. Each increment of emission, when combined with other emissions, causes or contributes materially to the acceleration and extent of global warming and its adverse effects for the lifetime of such gas in the atmosphere. Accordingly, controlling emissions in small as well as large amounts is essential to prevent, slow the pace of, reduce the threats from, and mitigate global warming and its adverse effects.</text> </paragraph><paragraph id="H04A6A035FE5B4BD9B87647C5BE258D4A"><enum>(3)</enum><text>Because they induce global warming, greenhouse gas emissions cause or contribute to injuries to persons in the United States, including—</text> <subparagraph id="H3C6CD40F00AD4155987DACE53C8F1450"><enum>(A)</enum><text>adverse health effects such as disease and loss of life;</text> </subparagraph><subparagraph id="H08EA3EA8A5554364A78126F419CE22B0"><enum>(B)</enum><text>displacement of human populations;</text> </subparagraph><subparagraph id="H12AE67DBBA8847569D39CF94F6DFCCBD"><enum>(C)</enum><text>damage to property and other interests related to ocean levels, acidification, and ice changes;</text> </subparagraph><subparagraph id="HFE92A8D73DC54DA191914E7B1CEEC065"><enum>(D)</enum><text>severe weather and seasonal changes;</text> </subparagraph><subparagraph id="H8839E617B2E848C48063FB13637D2064"><enum>(E)</enum><text>disruption, costs, and losses to business, trade, employment, farms, subsistence, aesthetic enjoyment of the environment, recreation, culture, and tourism;</text> </subparagraph><subparagraph id="HD0CE21503AFE4C2197E2F0D05E932206"><enum>(F)</enum><text>damage to plants, forests, lands, and waters;</text> </subparagraph><subparagraph id="H23855EFE7773456AA356CE8909F60BC7"><enum>(G)</enum><text>harm to wildlife and habitat;</text> </subparagraph><subparagraph id="H037A16287B2D4406A54E38B6E4A7DDEF"><enum>(H)</enum><text>scarcity of water and the decreased abundance of other natural resources;</text> </subparagraph><subparagraph id="HEA37CB4E38644888BEE2BEAB6A0ECF78"><enum>(I)</enum><text>worsening of tropospheric air pollution;</text> </subparagraph><subparagraph id="H0010CBDF7D6241299B8B2B5701D681F9"><enum>(J)</enum><text>substantial threats of similar damage; and</text> </subparagraph><subparagraph id="H006469E6AE534A4FB7EEE64B2EC5753C"><enum>(K)</enum><text>other harm.</text> </subparagraph></paragraph><paragraph id="H68D1506D1F674248900A118951332EB5"><enum>(4)</enum><text>That many of these effects and risks of future effects of global warming are widely shared does not minimize the adverse effects individual persons have suffered, will suffer, and are at risk of suffering because of global warming.</text> </paragraph><paragraph id="H4F6B3D17F4A6413EBDC396F162AAE862"><enum>(5)</enum><text>That some of the adverse and potentially catastrophic effects of global warming are at risk of occurring and not a certainty does not negate the harm persons suffer from actions that increase the likelihood, extent, and severity of such future impacts.</text> </paragraph><paragraph id="HD372C35B5E6346428F793A09EA601B97"><enum>(6)</enum><text>Nations of the world look to the United States for leadership in addressing the threat of and harm from global warming. Full implementation of the Safe Climate Act is critical to engage other nations in an international effort to mitigate the threat of and harm from global warming.</text> </paragraph><paragraph id="H9338D0DBEA5947858C52B57692D6BDDF"><enum>(7)</enum><text>Global warming and its adverse effects are occurring and are likely to continue and increase in magnitude, and to do so at a greater and more harmful rate, unless the Safe Climate Act is fully implemented and enforced in an expeditious manner.</text> </paragraph></subsection><subsection id="H663B4CF9F98F492D8F933B4F3E83C302"><enum>(b)</enum><header>Purpose</header><text>It is the general purpose of the Safe Climate Act to help prevent, reduce the pace of, mitigate, and remedy global warming and its adverse effects. To fulfill such purpose, it is necessary to—</text> <paragraph id="HF02D3057C5814C34946387BF052938C1"><enum>(1)</enum><text>require the timely fulfillment of all governmental acts and duties, both substantive and procedural, and the prompt compliance of covered entities with the requirements of the Safe Climate Act;</text> </paragraph><paragraph id="H429B53A303994080BA26433500602B72"><enum>(2)</enum><text>establish and maintain an effective, transparent, and fair market for emission allowances and preserve the integrity of the cap on emissions and of offset credits;</text> </paragraph><paragraph id="H625273F1E2034B5D8F7F4025A9B1CD7A"><enum>(3)</enum><text>advance the production and deployment of clean energy and energy efficiency technologies; and</text> </paragraph><paragraph id="H661C3B8BC3044CB4BD4A1757EBF3DBCE"><enum>(4)</enum><text display-inline="yes-display-inline">ensure effective enforcement of the Safe Climate Act by citizens, States, Indian tribes, and all levels of government because each violation of the Safe Climate Act is likely to result in an additional increment of greenhouse gas emission and will slow the pace of implementation of the Safe Climate Act and delay the achievement of the goals set forth in section 702, and cause or contribute to global warming and its adverse effects.</text> </paragraph></subsection></section><section id="H60BE830EE8EE40B290242EA473C7CFAF"><enum>702.</enum><header>Economy-wide reduction goals</header><text display-inline="no-display-inline">The goals of the Safe Climate Act are to reduce steadily the quantity of United States greenhouse gas emissions such that—</text> <paragraph id="HB7403FA35BBD400E8991DF5CABD40E50"><enum>(1)</enum><text>in 2012, the quantity of United States greenhouse gas emissions does not exceed 97 percent of the quantity of United States greenhouse gas emissions in 2005;</text> </paragraph><paragraph id="H11C9D8F5A0F34303AF838D51DB52EC76"><enum>(2)</enum><text>in 2020, the quantity of United States greenhouse gas emissions does not exceed 80 percent of the quantity of United States greenhouse gas emissions in 2005;</text> </paragraph><paragraph id="H1212E875D6A54F56AD41FE3E92C0E684"><enum>(3)</enum><text>in 2030, the quantity of United States greenhouse gas emissions does not exceed 58 percent of the quantity of United States greenhouse gas emissions in 2005; and</text> </paragraph><paragraph id="H7A69B66AA50E4307A318518D0EF3FE2C"><enum>(4)</enum><text>in 2050, the quantity of United States greenhouse gas emissions does not exceed 17 percent of the quantity of United States greenhouse gas emissions in 2005.</text> </paragraph></section><section id="H8D53DAF3A7B34A4DAF45F572346B117F"><enum>703.</enum><header>Reduction targets for specified sources</header> <subsection id="HDD5AEB0F3A7F477591A253CAFE155780"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The regulations issued under section 721 shall cap and reduce annually the greenhouse gas emissions of capped sources each calendar year beginning in 2012 such that—</text> <paragraph id="HB24008E121784213AC398383E2C729C9"><enum>(1)</enum><text>in 2012, the quantity of greenhouse gas emissions from capped sources does not exceed 97 percent of the quantity of greenhouse gas emissions from such sources in 2005;</text> </paragraph><paragraph id="HB70F6F3394BC42639900581EC3B45F56"><enum>(2)</enum><text>in 2020, the quantity of greenhouse gas emissions from capped sources does not exceed 83 percent of the quantity of greenhouse gas emissions from such sources in 2005;</text> </paragraph><paragraph id="H27C48B0981944594B867842087686320"><enum>(3)</enum><text>in 2030, the quantity of greenhouse gas emissions from capped sources does not exceed 58 percent of the quantity of greenhouse gas emissions from such sources in 2005; and</text> </paragraph><paragraph id="H8816347BD72043D29E7E2DB3A179C9B2"><enum>(4)</enum><text>in 2050, the quantity of greenhouse gas emissions from capped sources does not exceed 17 percent of the quantity of greenhouse gas emissions from such sources in 2005.</text> </paragraph></subsection><subsection id="H985E798A16214B4F894684035E121576"><enum>(b)</enum><header>Definition</header><text>For purposes of this section, the term <quote>greenhouse gas emissions from such sources in 2005</quote> means emissions to which section 722 would have applied if the requirements of this title for the specified year had been in effect for 2005.</text> </subsection></section><section id="HCDFEBF04BFA44F79AA246DA6CD62C961"><enum>704.</enum><header>Supplemental pollution reductions</header><text display-inline="no-display-inline">For the purposes of decreasing the likelihood of catastrophic climate change, preserving tropical forests, building capacity to generate offset credits, and facilitating international action on global warming, the Administrator shall set aside the percentage specified in section 781 of the quantity of emission allowances established under section 721(a) for each year, to be used to achieve a reduction of greenhouse gas emissions from deforestation in developing countries in accordance with part E. In 2020, activities supported under part E shall provide greenhouse gas reductions in an amount equal to an additional 10 percentage points of reductions from United States greenhouse gas emissions in 2005. The Administrator shall distribute these allowances with respect to activities in countries that enter into and implement agreements or arrangements relating to reduced deforestation as described in section 754(a)(2).</text> </section><section id="H673A835D2037476586297EDD7E16BC7E"><enum>705.</enum><header>Review and program recommendations</header> <subsection id="H08FB756FA8024E9AA66AB8A5F440F52A"><enum>(a)</enum><header>In general</header><text>The Administrator shall, in consultation with appropriate Federal agencies, submit to Congress a report not later than July 1, 2013, and every 4 years thereafter, that includes—</text> <paragraph id="HB6E94D7137584FA7ADE64BE8BEF7D208"><enum>(1)</enum><text>an analysis of key findings based on the latest scientific information and data relevant to global climate change;</text> </paragraph><paragraph id="H6320BEAEF6F24E058B3937855D1E9C21"><enum>(2)</enum><text>an analysis of capabilities to monitor and verify greenhouse gas reductions on a worldwide basis, including for the United States, as required under the Safe Climate Act; and</text> </paragraph><paragraph id="H632484159C764792A9D171B7E7E9C4DC"><enum>(3)</enum><text>an analysis of the status of worldwide greenhouse gas reduction efforts, including implementation of the Safe Climate Act and other policies, both domestic and international, for reducing greenhouse gas emissions, preventing dangerous atmospheric concentrations of greenhouse gases, preventing significant irreversible consequences of climate change, and reducing vulnerability to the impacts of climate change.</text> </paragraph></subsection><subsection id="HF11DD254F06A450EAF7FF840FA714D33"><enum>(b)</enum><header>Exception</header><text>Paragraph (3) of subsection (a) shall not apply to the first report submitted under such subsection.</text> </subsection><subsection id="H3EFAF54803BC4702972EDA2DCFDD4724"><enum>(c)</enum><header>Latest scientific information</header><text>The analysis required under subsection (a)(1) shall—</text> <paragraph id="H6FD3FE59A10B4BF48CC164C20A5CE423"><enum>(1)</enum><text>address existing scientific information and reports, considering, to the greatest extent possible, the most recent assessment report of the Intergovernmental Panel on Climate Change, reports by the United States Global Change Research Program, the Natural Resources Climate Change Adaptation Panel established under section 475 of the <short-title>American Clean Energy and Security Act of 2009</short-title>, and Federal agencies, and the European Union’s global temperature data assessment; and</text> </paragraph><paragraph id="H4B0E5B1B2C3843F1BF3FA37ECB6DF3DD"><enum>(2)</enum><text>review trends and projections for—</text> <subparagraph id="H6F046AC5D1EA48C9A33041331419A286"><enum>(A)</enum><text>global and country-specific annual emissions of greenhouse gases, and cumulative greenhouse gas emissions produced between 1850 and the present, including—</text> <clause id="H5F0018949E0042AEAF24E1CAF0EE8ABF"><enum>(i)</enum><text>global cumulative emissions of anthropogenic greenhouse gases;</text> </clause><clause id="HB41841EFF50643C58D6738147C32E54B"><enum>(ii)</enum><text>global annual emissions of anthropogenic greenhouse gases; and</text> </clause><clause id="H64B09A3AE3844EEFB5E9E29C33A208DF"><enum>(iii)</enum><text>by country, annual total, annual per capita, and cumulative anthropogenic emissions of greenhouse gases for the top 50 emitting nations;</text> </clause></subparagraph><subparagraph id="HEFE3998401C34FA28CB98FC400BF1E75"><enum>(B)</enum><text>significant changes, both globally and by region, in annual net non-anthropogenic greenhouse gas emissions from natural sources, including permafrost, forests, or oceans;</text> </subparagraph><subparagraph id="HAB841EBF372444DE99BBA83B55631F0B"><enum>(C)</enum><text>global atmospheric concentrations of greenhouse gases, expressed in annual concentration units as well as carbon dioxide equivalents based on 100-year global warming potentials;</text> </subparagraph><subparagraph id="H072A1EA9DE2B4B23840A6982E7A1471B"><enum>(D)</enum><text>major climate forcing factors, such as aerosols;</text> </subparagraph><subparagraph id="HA4A1C35315BF4F96A5CC37A52280EB93"><enum>(E)</enum><text>global average temperature, expressed as seasonal and annual averages in land, ocean, and land-plus-ocean averages; and</text> </subparagraph><subparagraph id="H52364C039E9D4C5CA3C0A25B4CA86663"><enum>(F)</enum><text>sea level rise;</text> </subparagraph></paragraph><paragraph id="H40A9308549744217B65BF583090B0496"><enum>(3)</enum><text>assess the current and potential impacts of global climate change on—</text> <subparagraph id="H16A4CA7781EC4FEAA015D2D4969840CD"><enum>(A)</enum><text>human populations, including impacts on public health, economic livelihoods, subsistence, human infrastructure, and displacement or permanent relocation due to flooding, severe weather, extended drought, erosion, or other ecosystem changes;</text> </subparagraph><subparagraph id="H79B51CFFAB10450799DC0FDACDCB51CC"><enum>(B)</enum><text>freshwater systems, including water resources for human consumption and agriculture and natural and managed ecosystems, flood and drought risks, and relative humidity;</text> </subparagraph><subparagraph id="HA55E1B8B3BB44ED9AC0EB0ADE581ADB5"><enum>(C)</enum><text>the carbon cycle, including impacts related to the thawing of permafrost, the frequency and intensity of wildfire, and terrestrial and ocean carbon sinks;</text> </subparagraph><subparagraph id="HA564408802B94B9C84FF04FBB4C7B967"><enum>(D)</enum><text>ecosystems and animal and plant populations, including impacts on species abundance, phenology, and distribution;</text> </subparagraph><subparagraph id="HF5A2C36CB83A4D47879768EF4E4CC895"><enum>(E)</enum><text>oceans and ocean ecosystems, including effects on sea level, ocean acidity, ocean temperatures, coral reefs, ocean circulation, fisheries, and other indicators of ocean ecosystem health;</text> </subparagraph><subparagraph id="H3E62606C40E04ACA95F7A5798B3C31F8"><enum>(F)</enum><text>the cryosphere, including effects on ice sheet mass balance, mountain glacier mass balance, and sea-ice extent and volume;</text> </subparagraph><subparagraph id="HD6F741C5AD9D4991A76DA07B433FAD87"><enum>(G)</enum><text>changes in the intensity, frequency, or distribution of severe weather events, including precipitation, tropical cyclones, tornadoes, and severe heat waves;</text> </subparagraph><subparagraph id="H7C2BB725B03A4F0F9CB5362A1CC6BE17"><enum>(H)</enum><text>agriculture and forest systems; and</text> </subparagraph><subparagraph id="HDE05BEF4313C4771B56F128D93530FE9"><enum>(I)</enum><text>any other indicators the Administrator deems appropriate;</text> </subparagraph></paragraph><paragraph id="HA1DED3BE85D44116B71A6538A9BA7EE7"><enum>(4)</enum><text>summarize any significant socio-economic impacts of climate change in the United States, including the territories of the United States, drawing on work by Federal agencies and the academic literature, including impacts on—</text> <subparagraph id="H8ADB1798DDEA4186882737669968B829"><enum>(A)</enum><text>public health;</text> </subparagraph><subparagraph id="HF1C5FECA2EA34D5D81E54A9D5F0B1E1A"><enum>(B)</enum><text>economic livelihoods and subsistence;</text> </subparagraph><subparagraph id="HA6AA0A602F1A4B87BF40FBC6D56DB334"><enum>(C)</enum><text>displacement or permanent relocation due to flooding, severe weather, extended drought, erosion, or other ecosystem changes;</text> </subparagraph><subparagraph id="H73360E8608B340CEA460D10AD63723BE"><enum>(D)</enum><text>human infrastructure, including coastal infrastructure vulnerability to extreme events and sea level rise, river floodplain infrastructure, and sewer and water management systems;</text> </subparagraph><subparagraph id="HC43E8B9364B14E528C8C62DD54BDC21C"><enum>(E)</enum><text>agriculture and forests, including effects on potential growing season, distribution, and yield;</text> </subparagraph><subparagraph id="H280D9FBD56A6435A82D256572125881C"><enum>(F)</enum><text>water resources for human consumption, agriculture and natural and managed ecosystems, flood and drought risks, and relative humidity;</text> </subparagraph><subparagraph id="H42B97D596D404EF3996F0F5933058593"><enum>(G)</enum><text>energy supply and use; and</text> </subparagraph><subparagraph id="HE756C158E28C463EBA6BA60560208EBC"><enum>(H)</enum><text>transportation;</text> </subparagraph></paragraph><paragraph id="H0EB98E3E7E844541BD68FC9BC24EE0F8"><enum>(5)</enum><text>in assessing risks and impacts, use a risk management framework, including both qualitative and quantitative measures, to assess the observed and projected impacts of current and future climate change, accounting for—</text> <subparagraph id="H6B45BF2E99C644B798EA6D58BDB07FD3"><enum>(A)</enum><text>both monetized and non-monetized losses;</text> </subparagraph><subparagraph id="HEF0E488A971A48ADA611921C81F83C9A"><enum>(B)</enum><text>potential nonlinear, abrupt, or essentially irreversible changes in the climate system;</text> </subparagraph><subparagraph id="H9B150B8803394279ACC65D02D3853B04"><enum>(C)</enum><text>potential nonlinear increases in the cost of impacts;</text> </subparagraph><subparagraph id="HB46EE1B9D31C48BB8EB3DDF7667388B4"><enum>(D)</enum><text>potential low-probability, high impact events; and</text> </subparagraph><subparagraph id="H87C73524F9554A3BB45A6FEDCA77D4B3"><enum>(E)</enum><text>whether impacts are transitory or essentially permanent; and</text> </subparagraph></paragraph><paragraph id="HE7CA3DF297874B22A69056294F9CCFBF"><enum>(6)</enum><text>based on the findings of the Administrator under this section, as well as assessments produced by the Intergovernmental Panel on Climate Change, the United States Global Change Research program, and other relevant scientific entities—</text> <subparagraph id="H34A0AC10424745F5B0D2B420E75F50AD"><enum>(A)</enum><text>describe increased risks to natural systems and society that would result from an increase in global average temperature 3.6 degrees Fahrenheit (2 degrees Celsius) above the pre-industrial average or an increase in atmospheric greenhouse gas concentrations above 450 parts per million carbon dioxide equivalent; and</text> </subparagraph><subparagraph id="HFB3367B5A401419081247A5549695F2E"><enum>(B)</enum><text>identify and assess—</text> <clause id="H597AAA8FA49E4C5A8F0B6E9551AF4ED1"><enum>(i)</enum><text>significant residual risks not avoided by the thresholds described in subparagraph (A);</text> </clause><clause id="H1665BA7D214143088EA85842C2F36D92"><enum>(ii)</enum><text>alternative thresholds or targets that may more effectively limit the risks identified pursuant to clause (i); and</text> </clause><clause id="H391887341112468A91728E9360DA8614"><enum>(iii)</enum><text>thresholds above those described in subparagraph (A) which significantly increase the risk of certain impacts or render them essentially permanent.</text> </clause></subparagraph></paragraph></subsection><subsection id="HB1DDDA20231D426F97A3CB9AA2717BB4"><enum>(d)</enum><header>Status of monitoring and verification capabilities to evaluate greenhouse gas reduction efforts</header><text>The analysis required under subsection (a)(2) shall evaluate the capabilities of the monitoring, reporting, and verification systems used to quantify progress in achieving reductions in greenhouse gas emissions both globally and in the United States (as described in section 702), including—</text> <paragraph id="H6C18A4721CD244C992919365A1CDCC6D"><enum>(1)</enum><text>quantification of emissions and emission reductions by entities participating in the cap and trade program under this title;</text> </paragraph><paragraph id="HA89192AC7B824A3C8EB7F9B087438475"><enum>(2)</enum><text>quantification of emissions and emission reductions by entities participating in the offset program under this title;</text> </paragraph><paragraph id="H0B8C9E4D5FC64D3BAA1BAAD81A7A57E8"><enum>(3)</enum><text>quantification of emission and emissions reductions by entities regulated by performance standards;</text> </paragraph><paragraph id="H7A3302DEF90945BE916009B33FA69BDF"><enum>(4)</enum><text>quantification of aggregate net emissions and emissions reductions by the United States; and</text> </paragraph><paragraph id="H398359E3CC4543979461786B6A18E963"><enum>(5)</enum><text>quantification of global changes in net emissions and in sources and sinks of greenhouse gases.</text> </paragraph></subsection><subsection id="HF776E25586B549C89359C242A4C42B64"><enum>(e)</enum><header>Status of greenhouse gas reduction efforts</header><text>The analysis required under subsection (a)(3) shall address—</text> <paragraph id="H6524E83AE2774A2EA410D5ED9A222A04"><enum>(1)</enum><text>whether the programs under Safe Climate Act and other Federal statutes are resulting in sufficient United States greenhouse gas emissions reductions to meet the emissions reduction goals described in section 702, taking into account the use of offsets; and</text> </paragraph><paragraph id="H79BFE26343DC4F24B013313F74902E90"><enum>(2)</enum><text>whether United States actions, taking into account international actions, commitments, and trends, and considering the range of plausible emissions scenarios, are sufficient to avoid—</text> <subparagraph id="H729942D979954E909D0552F26F4A09EF"><enum>(A)</enum><text>atmospheric greenhouse gas concentrations above 450 parts per million carbon dioxide equivalent;</text> </subparagraph><subparagraph id="H19C5903499CA48B783C16D77B0E2AA19"><enum>(B)</enum><text>global average surface temperature 3.6 degrees Fahrenheit (2 degrees Celsius) above the pre-industrial average, or such other temperature thresholds as the Administrator deems appropriate; and</text> </subparagraph><subparagraph id="H0AA248F01494458C8D6BA547488F30E4"><enum>(C)</enum><text>other temperature or greenhouse gas thresholds identified pursuant to subsection (c)(6)(B).</text> </subparagraph></paragraph></subsection><subsection id="HEF712A3C9F994146B7AB110572C82712"><enum>(f)</enum><header>Recommendations</header> <paragraph id="HD3CC29B40E354573903A9F1C2A02E3DD"><enum>(1)</enum><header>Latest scientific information</header><text>Based on the analysis described in subsection (a)(1), each report under subsection (a) shall identify actions that could be taken to—</text> <subparagraph id="H1C187003D96E4E44A818E316DC831DAC"><enum>(A)</enum><text>improve the characterization of changes in the earth-climate system and impacts of global climate change;</text> </subparagraph><subparagraph id="H8B61A5A254A8468BA37F802F2AA47DA9"><enum>(B)</enum><text>better inform decision making and actions related to global climate change;</text> </subparagraph><subparagraph id="H8F49D376727C4AF1AA291AEF88607627"><enum>(C)</enum><text>mitigate risks to natural and social systems; and</text> </subparagraph><subparagraph id="H3FBABBFBA5BB4162B4599B4031685578"><enum>(D)</enum><text>design policies to better account for climate risks.</text> </subparagraph></paragraph><paragraph id="HA50303402FA0466B89BA9ABF186DEA77"><enum>(2)</enum><header>Monitoring, reporting and verification</header><text>Based on the analysis described in subsection (a)(2), each report under subsection (a) shall identify key gaps in measurement, reporting, and verification capabilities and make recommendations to improve the accuracy and reliability of those capabilities.</text> </paragraph><paragraph id="H10C04438770642AEADF277B43D0C26F9"><enum>(3)</enum><header>Status of greenhouse gas reduction efforts</header><text>Based on the analysis described in subsection (a)(3), taking into account international actions, commitments, and trends, and considering the range of plausible emissions scenarios, each report under subsection (a) shall identify—</text> <subparagraph id="H2BC91E332B1346378E612EA93BB66C87"><enum>(A)</enum><text>the quantity of additional reductions required to meet the emissions reduction goals in section 702;</text> </subparagraph><subparagraph id="HD7EE2520A92F4B078002EA31E45E13CA"><enum>(B)</enum><text>the quantity of additional reductions in global greenhouse gas emissions needed to avoid the concentration and temperature thresholds identified in subsection (e); and</text> </subparagraph><subparagraph id="H8E68898D64C5487BA634C7181118E061"><enum>(C)</enum><text>possible strategies and approaches for achieving additional reductions.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="HBD9ADC00CEED4FF7A18FDDBC474E98A4"><enum>(g)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section such sums as may be necessary.</text> </subsection></section><section id="H59BD47494AE04F4BBED130AA46BD1683"><enum>706.</enum><header>National Academy review</header> <subsection id="HD2A41B48CFF54410AE3F6D43884FADDF"><enum>(a)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this title, the Administrator shall offer to enter into a contract with the National Academy of Sciences (in this section referred to as the <quote>Academy</quote>) under which the Academy shall, not later than July 1, 2014, and every 4 years thereafter, submit to Congress and the Administrator a report that includes—</text> <paragraph id="H511566E527814ADBB895BFF36DA60567"><enum>(1)</enum><text>a review of the most recent report and recommendations issued under section 705; and</text> </paragraph><paragraph id="HC527B6DA278A47C58241C756A8983E9B"><enum>(2)</enum><text>an analysis of technologies to achieve reductions in greenhouse gas emissions.</text> </paragraph></subsection><subsection id="HE8D883CF2A0B4544865F2D988C8AB231"><enum>(b)</enum><header>Failure to issue a report</header><text>In the event that the Administrator has not issued all or part of the most recent report required under section 705, the Academy shall conduct its own review and analysis of the required information.</text> </subsection><subsection id="H4235291C62A4446B85F693EC1AF289D4"><enum>(c)</enum><header>Technological information</header><text>The analysis required under subsection (a)(2) shall—</text> <paragraph id="H843523EB495C426D88F48ABCAF2CF5C3"><enum>(1)</enum><text>review existing technological information and reports, including the most recent reports by the Department of Energy, the United States Global Change Research Program, the Intergovernmental Panel on Climate Change, and the International Energy Agency and any other relevant information on technologies or practices that reduce or limit greenhouse gas emissions;</text> </paragraph><paragraph id="H0F863532DEA341C9AD558414ACEAE0B6"><enum>(2)</enum><text>include the participation of technical experts from relevant private industry sectors;</text> </paragraph><paragraph id="H4CFCD64A9F7343E2A2F1D434AF4813D4"><enum>(3)</enum><text>review the current and future projected deployment of technologies and practices in the United States that reduce or limit greenhouse gas emissions, including—</text> <subparagraph id="H9AE02802C5964A188771E0F5E3D653FD"><enum>(A)</enum><text>technologies for capture and sequestration of greenhouse gases;</text> </subparagraph><subparagraph id="HDD0A5C8EC6324D7D90A83287017C57E2"><enum>(B)</enum><text>technologies to improve energy efficiency;</text> </subparagraph><subparagraph id="H31FBE23B446C4DEB83F84400EFAA3247"><enum>(C)</enum><text>low- or zero-greenhouse gas emitting energy technologies;</text> </subparagraph><subparagraph id="H88D1546B7E2E408DBC1A9591504EB195"><enum>(D)</enum><text>low- or zero-greenhouse gas emitting fuels;</text> </subparagraph><subparagraph id="H1FE9DF8B43304AA2AF2C05FC1C4795BE"><enum>(E)</enum><text>biological sequestration practices and technologies; and</text> </subparagraph><subparagraph id="H464BDB9ABECE4950AB81F9883B93E6E4"><enum>(F)</enum><text>any other technologies the Academy deems relevant; and</text> </subparagraph></paragraph><paragraph id="HDDE495CE32584A31AB2BA3CFBCB5D0B2"><enum>(4)</enum><text>review and compare the emissions reduction potential, commercial viability, market penetration, investment trends, and deployment of the technologies described in paragraph (3), including—</text> <subparagraph id="HFA156A816F2243928DEADB0E485F594D"><enum>(A)</enum><text>the need for additional research and development, including publicly funded research and development;</text> </subparagraph><subparagraph id="H29E607E22F234A0D8E6F8BC72CE37D3E"><enum>(B)</enum><text>the extent of commercial deployment, including, where appropriate, a comparison to the cost and level of deployment of conventional fossil fuel-fired energy technologies and devices; and</text> </subparagraph><subparagraph id="H6CDC576D514D41008667E6DF4DE27ACC"><enum>(C)</enum><text>an evaluation of any substantial technological, legal, or market-based barriers to commercial deployment.</text> </subparagraph></paragraph></subsection><subsection id="H66FC7F21C3184D34BFCE230D2DDDF4B0"><enum>(d)</enum><header>Recommendations</header> <paragraph id="H0FF95E87D6B04146AF39509B396A0230"><enum>(1)</enum><header>Latest scientific information</header><text>Based on the review described in subsection (a)(1), the Academy shall identify actions that could be taken to—</text> <subparagraph id="H3A1E3654B1F446F88DE969A02BFE8195"><enum>(A)</enum><text>improve the characterization of changes in the earth-climate system and impacts of global climate change;</text> </subparagraph><subparagraph id="H43FBC993FF4C4C7BB576C25512EFDBA5"><enum>(B)</enum><text>better inform decision making and actions related to global climate change;</text> </subparagraph><subparagraph id="H64D9261AAFA649CF967614BD59878096"><enum>(C)</enum><text>mitigate risks to natural and social systems;</text> </subparagraph><subparagraph id="H2B55C5DEA1294DB88CD9BF0A0D99FA04"><enum>(D)</enum><text>design policies to better account for climate risks; and</text> </subparagraph><subparagraph id="H0C10CCD0048246419432EB76982FFCE4"><enum>(E)</enum><text>improve the accuracy and reliability of capabilities to monitor, report, and verify greenhouse gas emissions reduction efforts.</text> </subparagraph></paragraph><paragraph id="H7366AE5226914499B558225F3C831220"><enum>(2)</enum><header>Technological information</header><text>Based on the analysis described in subsection (a)(2), the Academy shall identify—</text> <subparagraph id="H97A3695E289C416E99891A5F817DC917"><enum>(A)</enum><text>additional emissions reductions that may be possible as a result of technologies described in the analysis;</text> </subparagraph><subparagraph id="HFAFF3E726F1E4BC991C6596CB79A6ED0"><enum>(B)</enum><text>barriers to the deployment of such technologies; and</text> </subparagraph><subparagraph id="H6A85B619C98643FC8246F858A3BC5D61"><enum>(C)</enum><text>actions that could be taken to speed deployment of such technologies.</text> </subparagraph></paragraph><paragraph id="HB79029D4D7E94C199F4BB43F908A97E5"><enum>(3)</enum><header>Status of greenhouse gas reduction efforts</header><text>Based on the review described in subsection (a)(1), the Academy shall identify—</text> <subparagraph id="H2A68416C36C4438D8793F78A385C602A"><enum>(A)</enum><text>the quantity of additional reductions required to meet the emissions reduction goals described in section 702; and</text> </subparagraph><subparagraph id="H370CB902737345A08E95321475F9C1BD"><enum>(B)</enum><text>the quantity of additional reductions in global greenhouse gas emissions needed to avoid the concentration and temperature thresholds described in section 705(c)(6)(A) or identified pursuant to section 705(c)(6)(B).</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H7869519E0B704395992DA3BA6BE47432"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section such sums as may be necessary.</text> </subsection></section><section id="H6B3331E45D5E4B99BD39F832AA854677"><enum>707.</enum><header>Presidential response and recommendations</header> <subsection id="HA67D146CE1E442C7BE6BA0605CAE06C9"><enum>(a)</enum><header>Agency actions</header><text>The President shall direct relevant Federal agencies to use existing statutory authority to take appropriate actions identified in the reports submitted under sections 705 and 706, and to address any shortfalls identified in such reports, not later than July 1, 2015, and every 4 years thereafter.</text> </subsection><subsection id="HB6B2DE33050543E1BFEC7668DB1C7224"><enum>(b)</enum><header>Plan</header><text>In the event that the Administrator or the National Academy of Sciences has concluded, in the most recent report submitted under section 705 or 706 respectively, that the United States will not achieve the necessary domestic greenhouse gas emissions reductions, or that global actions will not maintain safe global average surface temperature and atmospheric greenhouse gas concentration thresholds, the President shall, not later than July 1, 2015, and every 4 years thereafter, submit to Congress a plan identifying domestic and international actions that will achieve necessary additional greenhouse gas reductions, including any recommendations for legislative action.</text> </subsection></section></part><part id="H950C56BE174E4B4381B7C3921E993EE0"><enum>B</enum><header>Designation and registration of greenhouse gases</header> <section id="HE10ED452F3914190902B3A4AFE5A5D4A"><enum>711.</enum><header>Designation of greenhouse gases</header> <subsection id="H6987294F11884BB0838EB284F9CC7727"><enum>(a)</enum><header>Greenhouse gases</header><text>For purposes of this title, the following are greenhouse gases:</text> <paragraph id="H979D4141F9394704A7D20C11B74487D4"><enum>(1)</enum><text>Carbon dioxide.</text> </paragraph><paragraph id="HEBC4DBC380BA469DA44E0EA2AC177B74"><enum>(2)</enum><text>Methane.</text> </paragraph><paragraph id="HA27184A1149F474B8C0CC7615EEFFECD"><enum>(3)</enum><text>Nitrous oxide.</text> </paragraph><paragraph id="H926B866A4FB54DF8963373E83D683AFC"><enum>(4)</enum><text>Sulfur hexafluoride.</text> </paragraph><paragraph commented="no" id="HB88C60C2EEB747E0BFAB9BAA7F3D8261"><enum>(5)</enum><text>Hydrofluorocarbons emitted from a chemical manufacturing process at an industrial stationary source.</text> </paragraph><paragraph id="H40419DFDA6544AC0921BEAE5742363CA"><enum>(6)</enum><text>Any perfluorocarbon.</text> </paragraph><paragraph id="H8B39A8D124B94BB78934FA26F940D865"><enum>(7)</enum><text>Nitrogen trifluoride.</text> </paragraph><paragraph id="H62374C407CEF45B39304D7F1D34BE045"><enum>(8)</enum><text>Any other anthropogenic gas designated as a greenhouse gas by the Administrator under this section.</text> </paragraph></subsection><subsection id="H1348DD83E622427C89FEE2045E198328"><enum>(b)</enum><header>Determination on Administrator’s initiative</header><text>The Administrator shall, by rule—</text> <paragraph id="H4D02A5427442462492A738FFC3DE7002"><enum>(1)</enum><text>determine whether 1 metric ton of another anthropogenic gas makes the same or greater contribution to global warming over 100 years as 1 metric ton of carbon dioxide;</text> </paragraph><paragraph id="H258F3F9D31784C8CA29E7882C2F4FE23"><enum>(2)</enum><text display-inline="yes-display-inline">determine the carbon dioxide equivalent value for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1);</text> </paragraph><paragraph id="H860D501F1CE84E39B6453F6A66E65C33"><enum>(3)</enum><text display-inline="yes-display-inline">for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1) and that is used as a substitute for a class I or class II substance under title VI, determine the extent to which to regulate that gas under section 619 and specify appropriate compliance obligations under section 619;</text> </paragraph><paragraph id="H257B8043528F442C8DC4145E765E00ED"><enum>(4)</enum><text display-inline="yes-display-inline">designate as a greenhouse gas for purposes of this title each gas for which the Administrator makes an affirmative determination under paragraph (1), to the extent that it is not regulated under section 619; and</text> </paragraph><paragraph id="H4CE6C19AEBE4477EA35B52C00C7C44F7"><enum>(5)</enum><text display-inline="yes-display-inline">specify the appropriate compliance obligations under this title for each gas designated as a greenhouse gas under paragraph (4).</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HC37F7D710D8B4DCFB0F8EFF8D9A90954"><enum>(c)</enum><header>Petitions to designate a greenhouse gas</header> <paragraph id="HF1D23FCF58154F03BFDBFEF70125FE3D"><enum>(1)</enum><header>In general</header><text>Any person may petition the Administrator to designate as a greenhouse gas any anthropogenic gas 1 metric ton of which makes the same or greater contribution to global warming over 100 years as 1 metric ton of carbon dioxide.</text> </paragraph><paragraph id="HE77C1A0BD1CB4E77A5388F2D171E70F9"><enum>(2)</enum><header>Contents of petition</header><text>The petitioner shall provide sufficient data, as specified by rule by the Administrator, to demonstrate that the gas is likely to be designated as a greenhouse gas and is likely to be produced, imported, used, or emitted in the United States. To the extent practicable, the petitioner shall also identify producers, importers, distributors, users, and emitters of the gas in the United States.</text> </paragraph><paragraph id="H0B1DC2D4A50D484B8869336A6FD24DCC"><enum>(3)</enum><header>Review and action by the administrator</header><text>Not later than 90 days after receipt of a petition under paragraph (2), the Administrator shall determine whether the petition is complete and notify the petitioner and the public of the decision.</text> </paragraph><paragraph id="H79479B567D5B442287E24E90469897FF"><enum>(4)</enum><header>Additional information</header><text>The Administrator may require producers, importers, distributors, users, or emitters of the gas to provide information on the contribution of the gas to global warming over 100 years compared to carbon dioxide.</text> </paragraph><paragraph id="HD8D92F41A7674DABBEF3E36CCAE4B85C"><enum>(5)</enum><header>Treatment of petition</header><text display-inline="yes-display-inline">For any substance used as a substitute for a class I or class II substance under title VI, the Administrator may elect to treat a petition under this subsection as a petition to list the substance as a class II, group II substance under section 619, and may require the petition to be amended to address listing criteria promulgated under that section.</text> </paragraph><paragraph id="H76C2B82F160149FD91E3EB39AFA74126"><enum>(6)</enum><header>Determination</header><text>Not later than 2 years after receipt of a complete petition, the Administrator shall, after notice and an opportunity for comment—</text> <subparagraph id="H841854F6E6B84CBC9F2842D1FFF30FA5"><enum>(A)</enum><text>issue and publish in the Federal Register—</text> <clause id="H256CEE6AFBCF426B8EFF16B0F52A3954"><enum>(i)</enum><text>a determination that 1 metric ton of the gas does not make a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide; and</text> </clause><clause id="HE1DA15489CC14CCA8CAC481279501002"><enum>(ii)</enum><text>an explanation of the decision; or</text> </clause></subparagraph><subparagraph id="HA79F5A977BFE4FAB987AFFA56B1209FB"><enum>(B)</enum><text display-inline="yes-display-inline">determine that 1 metric ton of the gas makes a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide, and take the actions described in subsection (b) with respect to such gas.</text> </subparagraph></paragraph><paragraph id="H9C9C66C67F034E1CBA3116B60354519C"><enum>(7)</enum><header>Grounds for denial</header><text>The Administrator may not deny a petition under this subsection solely on the basis of inadequate Environmental Protection Agency resources or time for review.</text> </paragraph></subsection><subsection id="H2C3AEA0D61494A0DA17CCA062FE24586"><enum>(d)</enum><header>Science Advisory Board Consultation</header> <paragraph id="H4E354A4CBD32457BBE893E4B84AB55B4"><enum>(1)</enum><header>Consultation</header><text display-inline="yes-display-inline">The Administrator shall—</text> <subparagraph id="H9231E5FEE6924E03ABBE4A0E4DA7006B"><enum>(A)</enum><text>give notice to the Science Advisory Board prior to making a determination under subsection (b)(1), (c)(6), or (e)(2)(B);</text> </subparagraph><subparagraph id="H37A741C548214D318E3C6AFCC80089C2"><enum>(B)</enum><text>consider the written recommendations of the Science Advisory Board under paragraph (2) regarding the determination; and</text> </subparagraph><subparagraph id="H72DDC377B22E40C59564935A0F2DEDA3"><enum>(C)</enum><text>consult with the Science Advisory Board regarding such determination, including consultation subsequent to receipt of such written recommendations.</text> </subparagraph></paragraph><paragraph id="H46339A0BAFEB4931B0D42726D3184627"><enum>(2)</enum><header>Formulation of recommendations</header><text>Upon receipt of notice under paragraph (1)(A) regarding a pending determination under subsection (b)(1), (c)(6), or (e)(2)(B), the Science Advisory Board shall—</text> <subparagraph id="H4E2F0FAAED37482D93C6D8EE8A33DB11"><enum>(A)</enum><text>formulate recommendations regarding such determination, subject to a peer review process; and</text> </subparagraph><subparagraph id="H5C9DF576CEF24BB8ADFAF809C271C89D"><enum>(B)</enum><text>submit such recommendations in writing to the Administrator.</text> </subparagraph></paragraph></subsection><subsection id="H3E5228338DC143F3BF18309A5CD8A6C4"><enum>(e)</enum><header>Manufacturing and emission notices</header> <paragraph id="HEC01898111004EAA8090873A52546D70"><enum>(1)</enum><header>Notice requirement</header> <subparagraph id="H3F8CF2EF0249408E951FB1C7AE195DED"><enum>(A)</enum><header>In general</header><text>Effective 24 months after the date of enactment of this title, no person may manufacture or introduce into interstate commerce a fluorinated gas, or emit a significant quantity, as determined by the Administrator, of any fluorinated gas that is generated as a byproduct during the production or use of another fluorinated gas, unless—</text> <clause id="HA5337A193E984C8DA492AA968E1E9C5C"><enum>(i)</enum><text>the gas is designated as a greenhouse gas under this section or is an ozone-depleting substance listed as a class I or class II substance under title VI;</text> </clause><clause id="H091A35A06CFF49C586E4530426D66982"><enum>(ii)</enum><text>the Administrator has determined that 1 metric ton of such gas does not make a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide; or</text> </clause><clause id="H2F5C52A31B0E4F118084E3396315C1B2"><enum>(iii)</enum><text>the person manufacturing or importing the gas for distribution into interstate commerce, or emitting the gas, has submitted to the Administrator, at least 90 days before the start of such manufacture, introduction into commerce, or emission, a notice of such person’s manufacture, introduction into commerce, or emission of such gas, and the Administrator has not determined that that notice or a substantially similar notice submitted by that person is incomplete.</text> </clause></subparagraph><subparagraph id="H4E9365D1C4CA40E8A35A28473F61C87D"><enum>(B)</enum><header>Alternative compliance</header><text>For a gas that is a substitute for a class I or class II substance under title VI and either has been listed as acceptable for use under section 612 or is currently subject to evaluation under section 612, the Administrator may accept the notice and information provided pursuant to that section as fulfilling the obligation under clause (iii) of subparagraph (A).</text> </subparagraph></paragraph><paragraph id="H0D01B432F8F34C0B9380E2B33A58377F"><enum>(2)</enum><header>Review and action by the administrator</header> <subparagraph id="H1ED4B16F8CA54F01AFAF769E07CB8BF1"><enum>(A)</enum><header>Completeness</header><text display-inline="yes-display-inline">Not later than 90 days after receipt of notice under paragraph (1)(A)(iii) or (B), the Administrator shall determine whether the notice is complete.</text> </subparagraph><subparagraph id="H5E67E3881E78442CAFB677F2D72E4EFC"><enum>(B)</enum><header>Determination</header><text>If the Administrator determines that the notice is complete, the Administrator shall, after notice and an opportunity for comment, not later than 12 months after receipt of the notice—</text> <clause id="H68F9F3144C8D4A1EB9304B7D6F7C6397"><enum>(i)</enum><text>issue and publish in the Federal Register—</text> <subclause id="H15CF6FC01C5A4A4683B5E3A0B6480DCB"><enum>(I)</enum><text>a determination that 1 metric ton of the gas does not make a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide; and</text> </subclause><subclause id="HA8C0E3B3173944F1861AFA0DE8F7763B"><enum>(II)</enum><text>an explanation of the decision; or</text> </subclause></clause><clause id="HC2454B7F5E434F16952E583A54D4687E"><enum>(ii)</enum><text display-inline="yes-display-inline">determine that 1 metric ton of the gas makes a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide, and take the actions described in subsection (b) with respect to such gas.</text> </clause></subparagraph></paragraph></subsection><subsection id="H9023FCB6809743B99D55B20C2102D2B0"><enum>(f)</enum><header>Regulations</header><text>Not later than 1 year after the date of enactment of this title, the Administrator shall promulgate regulations to carry out this section. Such regulations shall include—</text> <paragraph id="H25291885815349C8ABCC1C0B87D75761"><enum>(1)</enum><text>requirements for the contents of a petition submitted under subsection (c);</text> </paragraph><paragraph id="H25DD44D9DF014D608B1F66D999B1B674"><enum>(2)</enum><text display-inline="yes-display-inline">requirements for the contents of a notice required under subsection (e); and</text> </paragraph><paragraph id="H11ADC8B12C79475293F136225A51C462"><enum>(3)</enum><text>methods and standards for evaluating the carbon dioxide equivalent value of a gas.</text> </paragraph></subsection><subsection commented="no" id="HA3CD12CCFB6045DBB8104F7DD6158693"><enum>(g)</enum><header>Gases regulated under title <enum-in-header>VI</enum-in-header></header><text>The Administrator shall not designate a gas as a greenhouse gas under this section to the extent that the gas is regulated under title VI.</text> </subsection><subsection id="H3B92D9ABA82141F384F0FC3196178B85"><enum>(h)</enum><header>Savings clause</header><text display-inline="yes-display-inline">Nothing in this section shall be interpreted to relieve any person from complying with the requirements of section 612.</text> </subsection></section><section id="HF1520EAC185942EE8CE3CC748B8EF708"><enum>712.</enum><header>Carbon dioxide equivalent value of greenhouse gases</header> <subsection id="H8EFA4212972949199BE13F3A391B54A3"><enum>(a)</enum><header>Measure of quantity of greenhouse gases</header><text>Any provision of this title or title VIII that refers to a quantity or percentage of a quantity of greenhouse gases shall mean the quantity or percentage of the greenhouse gases expressed in carbon dioxide equivalents.</text> </subsection><subsection id="H3D9C964CB17A4139B4D5B8058BE8BC2B"><enum>(b)</enum><header>Initial value</header><text>Except as provided by the Administrator under this section or section 711—</text> <paragraph id="HD4061921751E4D3192E72C631EDECE6C"><enum>(1)</enum><text>the carbon dioxide equivalent value of greenhouse gases for purposes of this Act shall be as follows:</text> <table align-to-level="section" colsep="1" frame="all" line-rules="all-gen" rowsep="1" rule-weights="4.4.4.4.4.0" table-template-name="Generic: 2 text, even cols" table-type=""> <ttitle><bold>CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED GREENHOUSE GASES</bold></ttitle> <tgroup actual-width="1" cols="2" grid-typeface="1.1" no-carding="1" rowsep="1" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt-no-ldr" colname="column1" colwidth="157pts" min-data-value="157"></colspec><colspec align="center" coldef="txt-no-ldr" colname="column2" colwidth="150pts" min-data-value="150"></colspec> <thead> <row><entry colname="column1" morerows="0" namest="column1"><bold>Greenhouse gas (1 metric ton)</bold></entry><entry colname="column2" morerows="0" namest="column2"><bold>Carbon dioxide equivalent (metric tons)</bold></entry> </row> </thead> <tbody> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">Carbon dioxide</entry><entry colname="column2" leader-modify="clr-ldr">1</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">Methane</entry><entry colname="column2" leader-modify="clr-ldr">25</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">Nitrous oxide</entry><entry colname="column2" leader-modify="clr-ldr">298</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">HFC-23</entry><entry colname="column2" leader-modify="clr-ldr">14,800</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">HFC-125</entry><entry colname="column2" leader-modify="clr-ldr">3,500</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">HFC-134a</entry><entry colname="column2" leader-modify="clr-ldr">1,430</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">HFC-143a</entry><entry colname="column2" leader-modify="clr-ldr">4,470</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">HFC-152a</entry><entry colname="column2" leader-modify="clr-ldr">124</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">HFC-227ea</entry><entry colname="column2" leader-modify="clr-ldr">3,220</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">HFC-236fa</entry><entry colname="column2" leader-modify="clr-ldr">9,810</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">HFC-4310mee</entry><entry colname="column2" leader-modify="clr-ldr">1,640</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">CF<subscript>4</subscript></entry><entry colname="column2" leader-modify="clr-ldr">7,390</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">C<subscript>2</subscript>F<subscript>6</subscript></entry><entry colname="column2" leader-modify="clr-ldr">12,200</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">C<subscript>4</subscript>F<subscript>10</subscript></entry><entry colname="column2" leader-modify="clr-ldr">8,860</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">C<subscript>6</subscript>F<subscript>14</subscript></entry><entry colname="column2" leader-modify="clr-ldr">9,300</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">SF<subscript>6</subscript></entry><entry colname="column2" leader-modify="clr-ldr">22,800</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr">NF<subscript>3</subscript></entry><entry colname="column2" leader-modify="clr-ldr">17,200</entry> </row> </tbody> </tgroup> </table> <continuation-text continuation-text-level="paragraph">; and</continuation-text></paragraph><paragraph id="H62CFD97C32AB4B909E243DFE60A76966"><enum>(2)</enum><text>the carbon dioxide equivalent value for purposes of this Act for any greenhouse gas not listed in the table under paragraph (1) shall be the 100-year Global Warming Potentials provided in the Intergovernmental Panel on Climate Change Fourth Assessment Report.</text> </paragraph></subsection><subsection id="H384DEE8694514F54815BEEA1100B7D23"><enum>(c)</enum><header>Periodic review</header> <paragraph id="HCD613481B77D427ABF9FD3703B4775D2"><enum>(1)</enum><text>Not later than February 1, 2017, and (except as provided in paragraph (3)) not less than every 5 years thereafter, the Administrator shall—</text> <subparagraph id="HA7BB6F6AB4504275991DE90E27B14B72"><enum>(A)</enum><text display-inline="yes-display-inline">review and, if appropriate, revise the carbon dioxide equivalent values established under this section or section 711(b)(2), based on a determination of the number of metric tons of carbon dioxide that makes the same contribution to global warming over 100 years as 1 metric ton of each greenhouse gas; and</text> </subparagraph><subparagraph id="H1F02D45F126444FC91DC8E4E51819E64"><enum>(B)</enum><text>publish in the Federal Register the results of that review and any revisions.</text> </subparagraph></paragraph><paragraph id="HE2992782E96D4D6CBB192D7614F247B1"><enum>(2)</enum><text>A revised determination published in the Federal Register under paragraph (1)(B) shall take effect for greenhouse gas emissions starting on January 1 of the first calendar year starting at least 9 months after the date on which the revised determination was published.</text> </paragraph><paragraph id="H96C872296FC9422F85194FAD4E4A5EFA"><enum>(3)</enum><text>The Administrator may decrease the frequency of review and revision under paragraph (1) if the Administrator determines that such decrease is appropriate in order to synchronize such review and revision with any similar review process carried out pursuant to the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992, or to an agreement negotiated under that convention, except that in no event shall the Administrator carry out such review and revision any less frequently than every 10 years.</text> </paragraph></subsection><subsection id="H25FDAFB9771744EE9084CE92E4B9BCC7"><enum>(d)</enum><header>Methodology</header><text>In setting carbon dioxide equivalent values, for purposes of this section or section 711, the Administrator shall take into account publications by the Intergovernmental Panel on Climate Change or a successor organization under the auspices of the United Nations Environmental Programme and the World Meteorological Organization.</text> </subsection></section><section id="H35FEFECC6741468CBE33920F7D5E96C7" section-type="subsequent-section"><enum>713.</enum><header>Greenhouse gas registry</header> <subsection id="HC49FB888FCA14E2AA0B6DDA5B14504DE"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section:</text> <paragraph id="H94BEE37E7E9D48B4BE78DE7C4506B8AB"><enum>(1)</enum><header>Climate registry</header><text display-inline="yes-display-inline">The term <quote>Climate Registry</quote> means the greenhouse gas emissions registry jointly established and managed by more than 40 States and Indian tribes in 2007 to collect high-quality greenhouse gas emission data from facilities, corporations, and other organizations to support various greenhouse gas emission reporting and reduction policies for the member States and Indian tribes.</text> </paragraph><paragraph id="HE2DF6413C57C429C8C9DB41305E65EC5"><enum>(2)</enum><header>Reporting entity</header><text>The term <quote>reporting entity</quote> means—</text> <subparagraph id="H029C350425D84840A11C7865EA8E7A43"><enum>(A)</enum><text display-inline="yes-display-inline">a covered entity;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H167F5C88FFE242318AA35EFB3CBB11A4"><enum>(B)</enum><text display-inline="yes-display-inline">an entity that—</text> <clause id="HAB37C7AB56AE4B108C34CDD0CBDB141F"><enum>(i)</enum><text display-inline="yes-display-inline">would be a covered entity if it had emitted, produced, imported, manufactured, or delivered in 2008 or any subsequent year more than the applicable threshold level in the definition of covered entity in paragraph (13) of section 700; and</text> </clause><clause id="H16A82222C4B34608BB43258C2906857D"><enum>(ii)</enum><text>has emitted, produced, imported, manufactured, or delivered in 2008 or any subsequent year more than the applicable threshold level in the definition of covered entity in paragraph (13) of section 700, provided that the figure of 25,000 tons of carbon dioxide equivalent is read instead as 10,000 tons of carbon dioxide equivalent and the figure of 460,000,000 cubic feet is read instead as 184,000,000 cubic feet;</text> </clause></subparagraph><subparagraph id="HCD63FFB716A24F7289ADE322C3D4E1BB"><enum>(C)</enum><text>any other entity that emits a greenhouse gas, or produces, imports, manufactures, or delivers material whose use results or may result in greenhouse gas emissions if the Administrator determines that reporting under this section by such entity will help achieve the purposes of this title or title VIII;</text> </subparagraph><subparagraph id="H5E61469FA041490C923075BBA4AEF602"><enum>(D)</enum><text>any vehicle fleet with emissions of more than 25,000 tons of carbon dioxide equivalent on an annual basis, if the Administrator determines that the inclusion of such fleet will help achieve the purposes of this title or title VIII; or</text> </subparagraph><subparagraph id="H2286133A12BC449DB477058FDA440CE2"><enum>(E)</enum><text>any entity that delivers electricity to a facility in an energy-intensive industrial sector that meets the energy or greenhouse gas intensity criteria in section 764(b)(2)(A)(i).</text> </subparagraph></paragraph></subsection><subsection id="H8FC067864F2D484EB7AA349A03BA40EE"><enum>(b)</enum><header>Regulations</header> <paragraph id="H997C9B471A224D56993DD9071AE07399"><enum>(1)</enum><header>In general</header><text>Not later than 6 months after the date of enactment of this title, the Administrator shall issue regulations establishing a Federal greenhouse gas registry. Such regulations shall—</text> <subparagraph id="H9AF44CF507354311AA352BC3DC24AD2D"><enum>(A)</enum><text>require reporting entities to submit to the Administrator data on—</text> <clause id="HCBFDDC7E1BEE474CBD838C3F3BC41D57"><enum>(i)</enum><text>greenhouse gas emissions in the United States;</text> </clause><clause id="H41381AD1B4474B319DBFBD5AAF5CC847"><enum>(ii)</enum><text>the production and manufacture in the United States, importation into the United States, and, at the discretion of the Administrator, exportation from the United States, of fuels and industrial gases the uses of which result or may result in greenhouse gas emissions;</text> </clause><clause display-inline="no-display-inline" id="H02C3D4B2361A47F591B7EFF8FD35E049"><enum>(iii)</enum><text display-inline="yes-display-inline">deliveries in the United States of natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, the combustion of which result or may result in greenhouse gas emissions; and</text> </clause><clause id="H891E390DF59740B6AFFD976E2BB0D927"><enum>(iv)</enum><text>the capture and sequestration of greenhouse gases;</text> </clause></subparagraph><subparagraph display-inline="no-display-inline" id="HBBE91FF2779140AEB7917F726C4650FC"><enum>(B)</enum><text>require covered entities and, where appropriate, other reporting entities to submit to the Administrator data sufficient to ensure compliance with or implementation of the requirements of this title;</text> </subparagraph><subparagraph id="HA64A4615B2AC4E3FBE47F9AD33946D0E"><enum>(C)</enum><text>require reporting of electricity delivered to facilities in an energy-intensive industrial sector that meets the energy or greenhouse gas intensity criteria in section 764(b)(2)(A)(i);</text> </subparagraph><subparagraph id="HE1A74C4534E8485A909839D6196140B4"><enum>(D)</enum><text display-inline="yes-display-inline">ensure the completeness, consistency, transparency, accuracy, precision, and reliability of such data;</text> </subparagraph><subparagraph id="HD70A583091C84B8F94184BEF4ED95CAF"><enum>(E)</enum><text>take into account the best practices from the most recent Federal, State, tribal, and international protocols for the measurement, accounting, reporting, and verification of greenhouse gas emissions, including protocols from the Climate Registry and other mandatory State or multistate authorized programs;</text> </subparagraph><subparagraph id="HD2EB96A69E7D42499FCA4D9C5CE92B8C"><enum>(F)</enum><text>take into account the latest scientific research;</text> </subparagraph><subparagraph id="H16BCAE55475B43F2A5317CE97D6FA8D8"><enum>(G)</enum><text display-inline="yes-display-inline">require that, for covered entities with respect to greenhouse gases to which section 722 applies, and, to the extent determined to be appropriate by the Administrator, for covered entities with respect to other greenhouse gases and for other reporting entities, submitted data are based on—</text> <clause id="H2816A13F08AF438BA06891857B7D66CC"><enum>(i)</enum><text>continuous monitoring systems for fuel flow or emissions, such as continuous emission monitoring systems;</text> </clause><clause id="H0B47C5D57E064ACA9E3827AE302EA180"><enum>(ii)</enum><text display-inline="yes-display-inline">alternative systems that are demonstrated as providing data with the same precision, reliability, accessibility, and timeliness, or, to the extent the Administrator determines is appropriate for reporting small amounts of emissions, the same precision, reliability, and accessibility and similar timeliness, as data provided by continuous monitoring systems for fuel flow or emissions; or</text> </clause><clause id="H722D04AF4A6C4DA695EC8933E302C183"><enum>(iii)</enum><text display-inline="yes-display-inline">alternative methodologies that are demonstrated to provide data with precision, reliability, accessibility, and timeliness, or, to the extent the Administrator determines is appropriate for reporting small amounts of emissions, precision, reliability, and accessibility, as similar as is technically feasible to that of data generally provided by continuous monitoring systems for fuel flow or emissions, if the Administrator determines that, with respect to a reporting entity, there is no continuous monitoring system or alternative system described in clause (i) or (ii) that is technically feasible;</text> </clause></subparagraph><subparagraph id="H1EBDC50E62F14CCAAF7319F06426FD72"><enum>(H)</enum><text>require that the Administrator, in determining the extent to which the requirement to use systems or methodologies in accordance with subparagraph (G) is appropriate for reporting entities other than covered entities or for greenhouse gases to which section 722 does not apply, consider the cost of using such systems and methodologies, and of using other systems and methodologies that are available and suitable, for quantifying the emissions involved in light of the purposes of this title, including the goal of collecting consistent entity-wide data;</text> </subparagraph><subparagraph id="H41F0E13D81FA45188066D47A5A0A12EE"><enum>(I)</enum><text>include methods for minimizing double reporting and avoiding irreconcilable double reporting of greenhouse gas emissions;</text> </subparagraph><subparagraph id="H357B78942B3C4B29A0BB9165A792E84B"><enum>(J)</enum><text>establish measurement protocols for carbon capture and sequestration systems, taking into consideration the regulations promulgated under section 813;</text> </subparagraph><subparagraph id="H1314EA8B2D954574AE9F8879C09A31EC"><enum>(K)</enum><text display-inline="yes-display-inline">require that reporting entities provide the data required under this paragraph in reports submitted electronically to the Administrator, in such form and containing such information as may be required by the Administrator;</text> </subparagraph><subparagraph id="H12C3CF67A7CD47918C905EBF53E6B63F"><enum>(L)</enum><text display-inline="yes-display-inline">include requirements for keeping records supporting or related to, and protocols for auditing, submitted data;</text> </subparagraph><subparagraph id="H7C06DE887A7F4EE78222C0BB229E63A9"><enum>(M)</enum><text>establish consistent policies for calculating carbon content and greenhouse gas emissions for each type of fossil fuel with respect to which reporting is required;</text> </subparagraph><subparagraph id="H30DC1B35A4D64D079E99714CBDC8DB0C"><enum>(N)</enum><text>subsequent to implementation of policies developed under subparagraph (M), provide for immediate dissemination, to States, Indian tribes, and on the Internet, of all data reported under this section as soon as practicable after electronic audit by the Administrator and any resulting correction of data, except that data shall not be disseminated under this subparagraph if—</text> <clause id="HFE915B4FF75B47E28903C3B7AF46370A"><enum>(i)</enum><text>its nondissemination is vital to the national security of the United States, as determined by the President; or</text> </clause><clause id="H5B543F0650844AC69C64A01C1B26A251"><enum>(ii)</enum><text>it is confidential business information that cannot be derived from information that is otherwise publicly available and that would cause significant calculable competitive harm if published, except that—</text> <subclause id="HAC9CBD9F6CB64D7090BCDFDEC18121AE"><enum>(I)</enum><text>data relating to greenhouse gas emissions, including any upstream or verification data from reporting entities, shall not be considered to be confidential business information; and</text> </subclause><subclause id="H68F1687CF7F9425080885F7EB49E1456"><enum>(II)</enum><text>data that is confidential business information shall be provided to a State or Indian tribe within whose jurisdiction the reporting entity is located, if the Administrator determines that such State or Indian tribe has in effect protections for confidential business information that are at least as protective as protections applicable to the Federal Government;</text> </subclause></clause></subparagraph><subparagraph id="H9C88EEA1F15C4ED58B307796C8CFD130"><enum>(O)</enum><text display-inline="yes-display-inline">prescribe methods by which the Administrator shall, in cases in which satisfactory data are not submitted to the Administrator for any period of time, estimate emission, production, importation, manufacture, or delivery levels—</text> <clause id="HD20A26D67310465CA8E64FB3BED66D0A"><enum>(i)</enum><text display-inline="yes-display-inline">for covered entities with respect to greenhouse gas emissions, production, importation, manufacture, or delivery regulated under this title to ensure that emissions, production, importation, manufacture, or deliveries are not underreported, and to create a strong incentive for meeting data monitoring and reporting requirements—</text> <subclause id="H6F963851280A4F2FB6A5833E5FEAB415"><enum>(I)</enum><text display-inline="yes-display-inline">with a conservative estimate of the highest emission, production, importation, manufacture, or delivery levels that may have occurred during the period for which data are missing; or</text> </subclause><subclause id="H624CBF1D5517492E8D104F283CA47D42"><enum>(II)</enum><text>to the extent the Administrator considers appropriate, with an estimate of such levels assuming the unit is emitting, producing, importing, manufacturing, or delivering at a maximum potential level during the period, in order to ensure that such levels are not underreported and to create a strong incentive for meeting data monitoring and reporting requirements; and</text> </subclause></clause><clause id="HC406F6EE07164D1D89E08CF97D4ADE6E"><enum>(ii)</enum><text display-inline="yes-display-inline">for covered entities with respect to greenhouse gas emissions to which section 722 does not apply and for other reporting entities, with a reasonable estimate of the emission, production, importation, manufacture, or delivery levels that may have occurred during the period for which data are missing;</text> </clause></subparagraph><subparagraph id="H5A1B22E7FFE248DBABC648B10078DD0C"><enum>(P)</enum><text>require the designation of a designated representative for each reporting entity;</text> </subparagraph><subparagraph id="H00F57A7FF97748EEAB26D60CC001B893"><enum>(Q)</enum><text>require an appropriate certification, by the designated representative for the reporting entity, of accurate and complete accounting of greenhouse gas emissions, as determined by the Administrator; and</text> </subparagraph><subparagraph id="H5557B36BD23A4FE1BC0205262CA55D8B"><enum>(R)</enum><text display-inline="yes-display-inline">include requirements for other data necessary for accurate and complete accounting of greenhouse gas emissions, as determined by the Administrator, including data for quality assurance of monitoring systems, monitors and other measurement devices, and other data needed to verify reported emissions, production, importation, manufacture, or delivery.</text> </subparagraph></paragraph><paragraph id="H58515FDD368E4B60BB8499C5C78249DD"><enum>(2)</enum><header>Timing</header> <subparagraph id="H73EE36D823AF459DAF4DB408AEEA617A"><enum>(A)</enum><header>Calendar years 2007 through 2010</header><text>For a base period of calendar years 2007 through 2010, each reporting entity shall submit annual data required under this section to the Administrator not later than March 31, 2011. The Administrator may waive or modify reporting requirements for calendar years 2007 through 2010 for categories of reporting entities to the extent that the Administrator determines that the reporting entities did not keep data or records necessary to meet reporting requirements. The Administrator may, in addition to or in lieu of such requirements, collect information on energy consumption and production.</text> </subparagraph><subparagraph id="H0F284C7B9C3340C58AB652E35BC4CF8E"><enum>(B)</enum><header>Subsequent calendar years</header><text>For calendar year 2011 and each subsequent calendar year, each reporting entity shall submit quarterly data required under this section to the Administrator not later than 60 days after the end of the applicable quarter, except when the data is already being reported to the Administrator on an earlier timeframe for another program.</text> </subparagraph></paragraph><paragraph id="H54350F59B7CC4886A410AA265060B94D"><enum>(3)</enum><header>Waiver of Reporting Requirements</header><text>The Administrator may waive reporting requirements under this section for specific entities to the extent that the Administrator determines that sufficient and equally or more reliable verified and timely data are available to the Administrator and the public on the Internet under other mandatory statutory requirements.</text> </paragraph><paragraph id="H386CED9E6EFA46BD818B5C2AE15F855D"><enum>(4)</enum><header>Alternative threshold</header><text>The Administrator may, by rule, establish applicability thresholds for reporting under this section using alternative metrics and levels, provided that such metrics and levels are easier to administer and cover the same size and type of sources as the threshold defined in this section.</text> </paragraph></subsection><subsection id="H80C67FF84C6847279BBB0EBD4A1C157E"><enum>(c)</enum><header>Interrelationship with other systems</header><text>In developing the regulations issued under subsection (b), the Administrator shall take into account the work done by the Climate Registry and other mandatory State or multistate programs. Such regulations shall include an explanation of any major differences in approach between the system established under the regulations and such registries and programs.</text> </subsection></section></part><part id="HD2F29AB82297463BB928E0CC54419FC2"><enum>C</enum><header>Program rules</header> <section id="H3E773A218135470AA982FE108029B88D"><enum>721.</enum><header>Emission allowances</header> <subsection id="H2FEFA13F59834A9B8C9446EB13CD4767"><enum>(a)</enum><header>In general</header><text>The Administrator shall establish a separate quantity of emission allowances for each calendar year starting in 2012, in the amounts prescribed under subsection (e).</text> </subsection><subsection id="H291ED78557764BC38DEECDF38D5859AB"><enum>(b)</enum><header>Identification numbers</header><text>The Administrator shall assign to each emission allowance established under subsection (a) a unique identification number that includes the vintage year for that emission allowance.</text> </subsection><subsection commented="no" id="HA7FD4138B7C4494AA2EF69CA5DF7FA2A"><enum>(c)</enum><header>Legal status of emission allowances</header> <paragraph commented="no" id="H58AA6CDE446648E2A26676035E6E44B2"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">An allowance established by the Administrator under this title does not constitute a property right, nor does any offset credit or other instrument established or issued under the <short-title>American Clean Energy and Security Act of 2009</short-title>, and the amendments made thereby, for the purpose of demonstrating compliance with this title.</text> </paragraph><paragraph commented="no" id="H067FFCBF3ED94297929212D23C7C5898"><enum>(2)</enum><header>Termination or limitation</header><text display-inline="yes-display-inline">Nothing in this Act or any other provision of law shall be construed to limit or alter the authority of the United States, including the Administrator acting pursuant to statutory authority, to terminate or limit allowances, offset credits, or term offset credits.</text> </paragraph><paragraph commented="no" id="H15C55A0ACF664AE7A43B5E04B22F33CA"><enum>(3)</enum><header>Other provisions unaffected</header><text display-inline="yes-display-inline">Except as otherwise specified in this Act, nothing in this Act relating to allowances, offset credits, or term offset credits established or issued under this title shall affect the application of any other provision of law to a covered entity, or the responsibility for a covered entity to comply with any such provision of law.</text> </paragraph></subsection><subsection id="H3E4AB8A4E3B44D4898F14D43F893DEF6"><enum>(d)</enum><header>Savings provision</header><text display-inline="yes-display-inline">Nothing in this part shall be construed as requiring a change of any kind in any State law regulating electric utility rates and charges, or as affecting any State law regarding such State regulation, or as limiting State regulation (including any prudency review) under such a State law. Nothing in this part shall be construed as modifying the Federal Power Act or as affecting the authority of the Federal Energy Regulatory Commission under that Act. Nothing in this part shall be construed to interfere with or impair any program for competitive bidding for power supply in a State in which such program is established.</text> </subsection><subsection id="HCF3C20BF6AF44E83A4EB911118A06FB0"><enum>(e)</enum><header>Allowances for each calendar year</header> <paragraph id="H3489ACE758B7474F9729DA8FC7D968C7"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the number of emission allowances established by the Administrator under subsection (a) for each calendar year shall be as provided in the following table:</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="all" line-rules="all-gen" rowsep="1" rule-weights="4.4.4.4.4.0" table-template-name="Generic: 2 text, even cols" table-type=""> <tgroup cols="2" grid-typeface="1.1" rowsep="1" thead-tbody-ldg-size="10.10.12"><colspec align="center" coldef="txt-no-ldr" colname="column1" colwidth="163pts" min-data-value="150"></colspec><colspec align="center" coldef="txt-no-ldr" colname="column2" colwidth="163pts" min-data-value="150"></colspec> <thead> <row><entry align="center" colname="column1" morerows="0" namest="column1"><bold>Calendar year</bold></entry><entry align="center" colname="column2" morerows="0" namest="column2"><bold>Emission allowances (in millions)</bold></entry> </row> </thead> <tbody> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2012</entry><entry align="left" colname="column2" leader-modify="clr-ldr">4,627</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2013</entry><entry align="left" colname="column2" leader-modify="clr-ldr">4,544</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2014</entry><entry align="left" colname="column2" leader-modify="clr-ldr">5,099</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2015</entry><entry align="left" colname="column2" leader-modify="clr-ldr">5,003</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2016</entry><entry align="left" colname="column2" leader-modify="clr-ldr">5,482</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2017</entry><entry align="left" colname="column2" leader-modify="clr-ldr">5,375</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2018</entry><entry align="left" colname="column2" leader-modify="clr-ldr">5,269</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2019</entry><entry align="left" colname="column2" leader-modify="clr-ldr">5,162</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2020</entry><entry align="left" colname="column2" leader-modify="clr-ldr">5,056</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2021</entry><entry align="left" colname="column2" leader-modify="clr-ldr">4,903</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2022</entry><entry align="left" colname="column2" leader-modify="clr-ldr">4,751</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2023</entry><entry align="left" colname="column2" leader-modify="clr-ldr">4,599</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2024</entry><entry align="left" colname="column2" leader-modify="clr-ldr">4,446</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2025</entry><entry align="left" colname="column2" leader-modify="clr-ldr">4,294</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2026</entry><entry align="left" colname="column2" leader-modify="clr-ldr">4,142</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2027</entry><entry align="left" colname="column2" leader-modify="clr-ldr">3,990</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2028</entry><entry align="left" colname="column2" leader-modify="clr-ldr">3,837</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2029</entry><entry align="left" colname="column2" leader-modify="clr-ldr">3,685</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2030</entry><entry align="left" colname="column2" leader-modify="clr-ldr">3,533</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2031</entry><entry align="left" colname="column2" leader-modify="clr-ldr">3,408</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2032</entry><entry align="left" colname="column2" leader-modify="clr-ldr">3,283</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2033</entry><entry align="left" colname="column2" leader-modify="clr-ldr">3,158</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2034</entry><entry align="left" colname="column2" leader-modify="clr-ldr">3,033</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2035</entry><entry align="left" colname="column2" leader-modify="clr-ldr">2,908</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2036</entry><entry align="left" colname="column2" leader-modify="clr-ldr">2,784</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2037</entry><entry align="left" colname="column2" leader-modify="clr-ldr">2,659</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2038</entry><entry align="left" colname="column2" leader-modify="clr-ldr">2,534</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2039</entry><entry align="left" colname="column2" leader-modify="clr-ldr">2,409</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2040</entry><entry align="left" colname="column2" leader-modify="clr-ldr">2,284</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2041</entry><entry align="left" colname="column2" leader-modify="clr-ldr">2,159</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2042</entry><entry align="left" colname="column2" leader-modify="clr-ldr">2,034</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2043</entry><entry align="left" colname="column2" leader-modify="clr-ldr">1,910</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2044</entry><entry align="left" colname="column2" leader-modify="clr-ldr">1,785</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2045</entry><entry align="left" colname="column2" leader-modify="clr-ldr">1,660</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2046</entry><entry align="left" colname="column2" leader-modify="clr-ldr">1,535</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2047</entry><entry align="left" colname="column2" leader-modify="clr-ldr">1,410</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2048</entry><entry align="left" colname="column2" leader-modify="clr-ldr">1,285</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2049</entry><entry align="left" colname="column2" leader-modify="clr-ldr">1,160</entry> </row> <row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">2050 and each year thereafter</entry><entry align="left" colname="column2" leader-modify="clr-ldr">1,035</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="HC6A6466EE1604AAF9309F68F1A0F2E6A"><enum>(2)</enum><header>Revision</header> <subparagraph id="H6229518F0FD540D48F8BB9125A810E99"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator may adjust, in accordance with subparagraph (B), the number of emission allowances established pursuant to paragraph (1) if, after notice and an opportunity for public comment, the Administrator determines that—</text> <clause id="HA0B7BB67A6204DB3A866B2585FBE0089"><enum>(i)</enum><text>United States greenhouse gas emissions in 2005 were other than 7,206 million metric tons carbon dioxide equivalent;</text> </clause><clause id="H62C87B26E61D48B0B33B0F02302EE64D"><enum>(ii)</enum><text display-inline="yes-display-inline">if the requirements of this title for 2012 had been in effect in 2005, section 722 would have required emission allowances to be held for other than 66.2 percent of United States greenhouse gas emissions in 2005;</text> </clause><clause id="H965B127E83874E9E890454E719BE434A"><enum>(iii)</enum><text display-inline="yes-display-inline">if the requirements of this title for 2014 had been in effect in 2005, section 722 would have required emission allowances to be held for other than 75.7 percent of United States greenhouse gas emissions in 2005; or</text> </clause><clause id="H055BB5B4760B466093E78BD4DEC94706"><enum>(iv)</enum><text display-inline="yes-display-inline">if the requirements of this title for 2016 had been in effect in 2005, section 722 would have required emission allowances to be held for other than 84.5 percent United States greenhouse gas emissions in 2005.</text> </clause></subparagraph><subparagraph id="H39D78F49086F4350B183D453C4530B52"><enum>(B)</enum><header>Adjustment formula</header> <clause id="H039A253464234DB9870F62C82EFE0093"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">If the Administrator adjusts under this paragraph the number of emission allowances established pursuant to paragraph (1), the number of emission allowances the Administrator establishes for any given calendar year shall equal the product of—</text> <subclause id="H9FEA759375EF4A2AAE6F9EDC97C70699"><enum>(I)</enum><text>United States greenhouse gas emissions in 2005, expressed in tons of carbon dioxide equivalent;</text> </subclause><subclause id="H0CF71548B0984E0CB651FE38C89502F8"><enum>(II)</enum><text display-inline="yes-display-inline">the percent of United States greenhouse gas emissions in 2005, expressed in tons of carbon dioxide equivalent, that would have been subject to section 722 if the requirements of this title for the given calendar year had been in effect in 2005; and</text> </subclause><subclause id="H9D1B3DF82F9D4B90B948C2DE982651A9"><enum>(III)</enum><text>the percentage set forth for that calendar year in section 703(a), or determined under clause (ii) of this subparagraph.</text> </subclause></clause><clause id="HB1DDE222DE7A40F49C498BB10F04D6BD"><enum>(ii)</enum><header>Targets</header><text>In applying the portion of the formula in clause (i)(III) of this subparagraph, for calendar years for which a percentage is not listed in section 703(a), the Administrator shall use a uniform annual decline in the amount of emissions between the years that are specified.</text> </clause><clause id="H35356B56E187407285CDF4CBE4A73CD2"><enum>(iii)</enum><header>Carbon dioxide equivalent value</header><text>If the Administrator adjusts under this paragraph the number of emission allowances established pursuant to paragraph (1), the Administrator shall use the carbon dioxide equivalent values established pursuant to section 712.</text> </clause><clause id="H82A08B19CBCA47479E337A5447C9937E"><enum>(iv)</enum><header>Limitation on adjustment timing</header><text>Once a calendar year has started, the Administrator may not adjust the number of emission allowances to be established for that calendar year.</text> </clause></subparagraph><subparagraph id="HD393B40B1B1A42A88A12AACCEC547C0F"><enum>(C)</enum><header>Limitation on adjustment authority</header><text display-inline="yes-display-inline">The Administrator may adjust under this paragraph the number of emission allowances to be established pursuant to paragraph (1) only once.</text> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEF8298F7ADE14E5A82A2AAACD33EC27F"><enum>(f)</enum><header>Compensatory allowance</header> <paragraph id="H685198A65E814A3EA75C9A8A8361A2CE"><enum>(1)</enum><header>In general</header><text>The regulations promulgated under subsection (h) shall provide for the establishment and distribution of compensatory allowances for—</text> <subparagraph id="H4BA7583D58BF4D7EAB2BB49D4098808A"><enum>(A)</enum><text>the destruction, in 2012 or later, of fluorinated gases that are greenhouse gases if—</text> <clause id="HDA824CB537ED48DF87CC4A47E9FE22A3"><enum>(i)</enum><text>allowances or offset credits were retired for their production or importation; and</text> </clause><clause id="H538D837BD75149EEA0D1B4762153408F"><enum>(ii)</enum><text>such gases are not required to be destroyed under any other provision of law;</text> </clause></subparagraph><subparagraph id="H9DF691EC1D0949249501F595A0C31484"><enum>(B)</enum><text display-inline="yes-display-inline">the nonemissive use, in 2012 or later, of petroleum-based or coal-based liquid or gaseous fuel, petroleum coke, natural gas liquid, or natural gas as a feedstock, if allowances or offset credits were retired for the greenhouse gases that would have been emitted from their combustion; and</text> </subparagraph><subparagraph id="H4942250E57814C668CB3C129742FFA48"><enum>(C)</enum><text display-inline="yes-display-inline">the conversionary use, in 2012 or later, of fluorinated gases in a manufacturing process, including semiconductor research or manufacturing, if allowances or offset credits were retired for the production or importation of such gas.</text> </subparagraph></paragraph><paragraph id="HF69C067525C24B82B2097380BBF33877"><enum>(2)</enum><header>Establishment and distribution</header> <subparagraph id="H6DA5C41F45B24B64A5AECEC8EDB2DA40"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 90 days after the end of each calendar year, the Administrator shall establish and distribute to the entity taking the actions described in subparagraph (A), (B), or (C) of paragraph (1) a quantity of compensatory allowances equivalent to the number of tons of carbon dioxide equivalent of avoided emissions achieved through such actions. In establishing the quantity of compensatory allowances, the Administrator shall take into account the carbon dioxide equivalent value of any greenhouse gas resulting from such action.</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H048CBF2FCD9347E9BB17B5CBCB962811"><enum>(B)</enum><header>Source of allowances</header><text>Compensatory allowances established under this subsection shall not be emission allowances established under subsection (a).</text> </subparagraph><subparagraph id="H16C56A38192D48F086D78134183DCD00"><enum>(C)</enum><header>Identification numbers</header><text>The Administrator shall assign to each compensatory allowance established under subparagraph (A) a unique identification number.</text> </subparagraph></paragraph><paragraph id="HAFA1154F7DAA4D09AC6F3CB1445F44EA"><enum>(3)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text> <subparagraph id="HDD2EC5A8977A40A1ABE9A4E3C0A166B2"><enum>(A)</enum><text>the term <quote>destruction</quote> means the conversion of a greenhouse gas by thermal, chemical, or other means to another gas or set of gases with little or no carbon dioxide equivalent value;</text> </subparagraph><subparagraph commented="no" id="H06DABAD8A8D9432E9268BC723095F0DD"><enum>(B)</enum><text display-inline="yes-display-inline">the term <quote>nonemissive use</quote> means the use of fossil fuel as a feedstock in an industrial or manufacturing process to the extent that greenhouse gases are not emitted from such process, and to the extent that the products of such process are not intended for use as, or to be contained in, a fuel; and</text> </subparagraph><subparagraph commented="no" id="H5BEA08A9998B4F6794FE8FAAADD40EB2"><enum>(C)</enum><text display-inline="yes-display-inline">the term <quote>conversionary use</quote> means the conversion during research or manufacturing of a fluorinated gas into another greenhouse gas or set of gases with a lower carbon dioxide equivalent value.</text> </subparagraph></paragraph><paragraph id="H926B1D94C31D439CA5F7F6E5CA646E8D"><enum>(4)</enum><header>Feedstock emissions study</header> <subparagraph id="HC88B292A0E244681944AA00C666D3A03"><enum>(A)</enum><text display-inline="yes-display-inline">The Administrator may conduct a study to determine the extent to which petroleum-based or coal-based liquid or gaseous fuel, petroleum coke, natural gas liquid, or natural gas are used as feedstocks in manufacturing processes to produce products and the greenhouse gas emissions resulting from such uses.</text> </subparagraph><subparagraph id="HD32F0D5950924F4BBF7A0281DBDE38CA"><enum>(B)</enum><text>If as a result of such a study, the Administrator determines that the use of such products by noncovered sources results in substantial emissions of greenhouse gases and that such emissions have not been adequately addressed under other requirements of this Act, the Administrator may, after notice and comment rulemaking, promulgate a regulation reducing compensatory allowances commensurately if doing so will not result in shifting such emissions to noncovered sources.</text> </subparagraph></paragraph></subsection><subsection id="H77EFDF8F5CCA44F8B4C8AC4C7AA1EB6B"><enum>(g)</enum><header>Fluorinated gases assessment</header><text>No later than March 31, 2014, the Administrator shall complete an assessment of the regulation of non-HFC fluorinated gases under this title to determine whether the most appropriate point of regulation is at the gas manufacturer or importer level, or at the source of emissions downstream. If the Administrator determines, based on consideration of environmental effectiveness, cost effectiveness, administrative feasibility, extent of coverage of emissions, competitiveness and other relevant considerations consistent with the purposes of this title, that emissions of non-HFC fluorinated gases can best be regulated by designating downstream emission sources as covered entities with compliance obligations under section 722, the Administrator shall, after notice and comment rulemaking, change the definition of covered entity and the compliance obligations under section 722 with respect to non-HFC fluorinated gases accordingly, consistent with the purposes of this title, and establish such other requirements as are necessary to ensure compliance for such entities with the requirements of this title.</text> </subsection><subsection id="HDEB12D97802D400BB3CC6C5C0AFD6431"><enum>(h)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than 24 months after the date of enactment of this title, the Administrator shall promulgate regulations to carry out the provisions of this title.</text> </subsection></section><section id="H7F98E30D4B9A4E6DB7791BD9092B9406"><enum>722.</enum><header>Prohibition of excess emissions</header> <subsection id="H4CE9040799B544C5B279148716406241"><enum>(a)</enum><header>Prohibition</header><text>Except as provided in subsection (c), effective January 1, 2012, each covered entity is prohibited from emitting greenhouse gases and having attributable greenhouse gas emissions, in combination, in excess of its allowable emissions level. A covered entity’s allowable emissions level for each calendar year is the number of emission allowances (or offset credits or other allowances as provided in subsection (d)) it holds as of 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (j)) of the following calendar year.</text> </subsection><subsection id="HCA567D6EB3DE4FCC9748D5240C7FE23D"><enum>(b)</enum><header>Methods of Demonstrating compliance</header><text display-inline="yes-display-inline">Except as otherwise provided in this section, the owner or operator of a covered entity shall not be considered to be in compliance with the prohibition in subsection (a) unless, as of 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (j)) of each calendar year starting in 2013, the owner or operator holds a quantity of emission allowances (or offset credits or other allowances as provided in subsection (d)) at least as great as the quantity calculated as follows:</text> <paragraph id="HC3DF87286EAE4FD7ACCD469426773B42"><enum>(1)</enum><header>Electricity sources</header><text>For a covered entity described in section 700(13)(A), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that such covered entity emitted in the previous calendar year, excluding emissions resulting from the combustion of—</text> <subparagraph id="HC7877117B93B43038BF87B7089010E3C"><enum>(A)</enum><text>petroleum-based or coal-based liquid fuel;</text> </subparagraph><subparagraph id="H21F6C53F16884846B2BB2B3ECE6E002F"><enum>(B)</enum><text>natural gas liquid;</text> </subparagraph><subparagraph id="HA117CC00F360413A96689241B63F1E49"><enum>(C)</enum><text>renewable biomass or gas derived from renewable biomass; or</text> </subparagraph><subparagraph id="H29AAA21E9087404DB957873453ABCF8F"><enum>(D)</enum><text>petroleum coke or gas derived from petroleum coke.</text> </subparagraph></paragraph><paragraph id="H33B01CD44C444952879929CAE4033330"><enum>(2)</enum><header>Fuel producers and importers</header><text>For a covered entity described in section 700(13)(B), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that would be emitted from the combustion of any petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, produced or imported by such covered entity during the previous calendar year for sale or distribution in interstate commerce, assuming no capture and sequestration of any greenhouse gas emissions.</text> </paragraph><paragraph id="H24A4FEE0FA534E65834BC79CDCACA3A1"><enum>(3)</enum><header>Industrial gas producers and importers</header><text>For a covered entity described in section 700(13)(C), 1 emission allowance for each ton of carbon dioxide equivalent of fossil fuel-based carbon dioxide, nitrous oxide, or any other fluorinated gas that is a greenhouse gas (except for nitrogen trifluoride), or any combination thereof, produced or imported by such covered entity during the previous calendar year for sale or distribution in interstate commerce.</text> </paragraph><paragraph id="H2C223ED8D7B542D7AE875484EE364F10"><enum>(4)</enum><header>Nitrogen trifluoride sources</header><text>For a covered entity described in section 700(13)(D), 1 emission allowance for each ton of carbon dioxide equivalent of nitrogen trifluoride that such covered entity emitted in the previous calendar year.</text> </paragraph><paragraph id="HBB33FE10D2D845B898D31698E050BFA6"><enum>(5)</enum><header>Geological sequestration sites</header><text>For a covered entity described in section 700(13)(E), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that such covered entity emitted in the previous calendar year.</text> </paragraph><paragraph id="H148507FCE7B344DE89F69B8660D592D7"><enum>(6)</enum><header>Industrial stationary sources</header><text>For a covered entity described in section 700(13)(F), (G), or (H), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that such covered entity emitted in the previous calendar year, excluding emissions resulting from—</text> <subparagraph id="H454E3E263B654B5F885451AF22A31F13"><enum>(A)</enum><text display-inline="yes-display-inline">the combustion of petroleum-based or coal-based liquid fuel;</text> </subparagraph><subparagraph id="H7C566C271B9649288E6008555EAD375B"><enum>(B)</enum><text display-inline="yes-display-inline">the combustion of natural gas liquid;</text> </subparagraph><subparagraph id="HC5B925138753434D914100A508F05C4F"><enum>(C)</enum><text display-inline="yes-display-inline">the combustion of renewable biomass or gas derived from renewable biomass;</text> </subparagraph><subparagraph id="HDD6F07B350494C429C37885AB3A24E32"><enum>(D)</enum><text display-inline="yes-display-inline">the combustion of petroleum coke or gas derived from petroleum coke; or</text> </subparagraph><subparagraph id="H06DC451BF8BF4F6B87E8D5F3390F5AFB"><enum>(E)</enum><text display-inline="yes-display-inline">the use of any fluorinated gas that is a greenhouse gas purchased for use at that covered entity, except for nitrogen trifluoride.</text> </subparagraph></paragraph><paragraph id="H5A847F9614D04D51B8A6437F37B2A6DF"><enum>(7)</enum><header>Industrial fossil fuel-fired combustion devices</header><text>For a covered entity described in section 700(13)(I), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that the devices emitted in the previous calendar year, excluding emissions resulting from the combustion of—</text> <subparagraph id="H86FB58E3F7BE46C4A8CA2E73EB718777"><enum>(A)</enum><text>petroleum-based or coal-based liquid fuel;</text> </subparagraph><subparagraph id="H4F786A79E5704C09AFA6BF1E1E0E70BE"><enum>(B)</enum><text>natural gas liquid;</text> </subparagraph><subparagraph id="H1A6A05F0344A4CA9B9A4F86B945680CC"><enum>(C)</enum><text display-inline="yes-display-inline">renewable biomass or gas derived from renewable biomass; or</text> </subparagraph><subparagraph id="H94381CE0C4A449B68641593A3B6D4EBE"><enum>(D)</enum><text display-inline="yes-display-inline">petroleum coke or gas derived from petroleum coke.</text> </subparagraph></paragraph><paragraph id="H280647B9B78F4CF2834F9749829BB0DC"><enum>(8)</enum><header>Natural gas local distribution companies</header><text>For a covered entity described in section 700(13)(J), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that would be emitted from the combustion of the natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, that such entity delivered during the previous calendar year to customers that are not covered entities, assuming no capture and sequestration of that greenhouse gas.</text> </paragraph><paragraph id="HD6DA13C818A94E27A1B2E7489FE1320C"><enum>(9)</enum><header>Algae-based fuels</header><text display-inline="yes-display-inline">Where carbon dioxide (or another greenhouse gas) generated by a covered entity is used as an input in the production of algae-based fuels, the Administrator shall ensure that emission allowances are required to be held either for the carbon dioxide generated by a covered entity that is used to grow the algae or for the portion of the carbon dioxide emitted from combustion of the fuel produced from such algae that is attributable to carbon dioxide generated by a covered entity, but not for both.</text> </paragraph><paragraph id="HB91E27AED149458180BB4BA9FC18A443"><enum>(10)</enum><header>Fugitive emissions</header><text>The greenhouse gas emissions to which paragraphs (1), (4), (6), and (7) apply shall not include fugitive emissions of greenhouse gas, except to the extent the Administrator determines that data on the carbon dioxide equivalent value of greenhouse gas in the fugitive emissions can be provided with sufficient precision, reliability, accessibility, and timeliness to ensure the integrity of emission allowances, the allowance tracking system, and the cap on emissions.</text> </paragraph><paragraph id="H91917A55573841C5A1503BC029DE4EF4"><enum>(11)</enum><header>Export exemption</header><text display-inline="yes-display-inline">This section shall not apply to any petroleum-based or coal-based liquid fuel, petroleum coke, natural gas liquid, fossil fuel-based carbon dioxide, nitrous oxide, or fluorinated gas that is exported for sale or use.</text> </paragraph><paragraph id="HD08FFE11852941058DE313351B9F83B2"><enum>(12)</enum><header>Natural Gas Liquids</header><text display-inline="yes-display-inline">For natural gas liquids, the covered entity subject to the requirement stated in paragraph (2) shall be the owner of the natural gas liquids at the point the natural gas liquids are separated into merchantable products.</text> </paragraph><paragraph id="HE727CECC86C74F16BFB9495B0B218758"><enum>(13)</enum><header>Application of multiple paragraphs</header><text>For a covered entity to which more than 1 of paragraphs (1) through (8) apply, all applicable paragraphs shall apply, except that not more than 1 emission allowance shall be required for the same emission.</text> </paragraph><paragraph id="H5DFFEAE0EE1B41F7A7A2274037AB81A2"><enum>(14)</enum><header>Application to fractions of tons</header><text>In applying paragraphs (1) through (8), any amount less than 1 ton of carbon dioxide equivalent of emissions or attributable greenhouse gas emissions shall be treated as 1 ton of such carbon dioxide equivalent.</text> </paragraph></subsection><subsection id="H9A03AAE10847465FACB0B7F503DEAEE7"><enum>(c)</enum><header>Phase-in of prohibition</header> <paragraph id="H8C8FBEFEA31A448BAC0CEC2412A3733B"><enum>(1)</enum><header>Industrial stationary sources</header><text>The prohibition under subsection (a) shall first apply to a covered entity described in section 700(13)(D), (F), (G), (H), or (I), with respect to emissions occurring during calendar year 2014.</text> </paragraph><paragraph id="HF5F4857C775D40199BC779EC86FEC6D0"><enum>(2)</enum><header>Natural gas local distribution companies</header><text>The prohibition under subsection (a) shall first apply to a covered entity described in section 700(13)(J) with respect to deliveries occurring during calendar year 2016.</text> </paragraph></subsection><subsection id="H6EFADBC6B2464E43ABF18B54C1EC4C4B"><enum>(d)</enum><header>Additional methods</header><text>In addition to using the method of compliance described in subsection (b), a covered entity may do the following:</text> <paragraph id="H5D8967D131E9468195469FC8D976B6D3"><enum>(1)</enum><header>Offset credits</header> <subparagraph id="HBDA00AD9008E4C8AB93D2B0D825ACF74"><enum>(A)</enum><header>In general</header><text>Covered entities collectively may, in accordance with this paragraph, use offset credits to demonstrate compliance for up to a maximum of 2 billion tons of greenhouse gas emissions annually. The ability to demonstrate compliance with offset credits shall be divided pro rata among covered entities by allowing each covered entity to satisfy a percentage of the number of allowances required to be held under subsection (b) to demonstrate compliance by holding 1 domestic offset credit or 1.25 international offset credits in lieu of an emission allowance, except as provided in subparagraph (D).</text> </subparagraph><subparagraph id="H10EBDE8AB520405F9770F138D933290E"><enum>(B)</enum><header>Applicable percentage</header><text>The percentage referred to in subparagraph (A) for a given calendar year shall be determined by dividing 2 billion by the sum of 2 billion plus the number of emission allowances established under section 721(a) for the previous year, and multiplying that number by 100. Not more than one half of the applicable percentage under this paragraph may be used by holding domestic offset credits, and not more than one half of the applicable percentage under this paragraph may be used by holding international offset credits, except as provided in subparagraph (C).</text> </subparagraph><subparagraph id="H2F9C9BA3DA104C33B26621A6F68E7FDB"><enum>(C)</enum><header>Modified percentages</header><text display-inline="yes-display-inline">If the Administrator determines that domestic offset credits available for use in demonstrating compliance in any calendar year at domestic offset prices generally equal to or less than emission allowance prices, are likely to offset less than 0.9 billion tons of greenhouse gas emissions (measured in tons of carbon dioxide equivalents), for purposes of compliance demonstration in that year the Administrator shall—</text> <clause id="H953EF8B0D2B84DBFAE5008B3FA82A115"><enum>(i)</enum><text>increase the percentage of emissions that can be offset through the use of international offset credits to reflect the amount that 1.0 billion exceeds the number of domestic offset credits the Administrator determines is available, at prices generally equal to or less than emission allowance prices, for that year, up to a maximum of 0.5 billion tons of greenhouse gas emissions; and</text> </clause><clause id="HDC7905255D00485AB79D26F9D0A5BF66"><enum>(ii)</enum><text>decrease the percentage of emissions that can be offset through the use of domestic offset credits by the same amount.</text> </clause></subparagraph><subparagraph id="HBE39BCAF35544B9FB791D8DBBB44D8BB"><enum>(D)</enum><header>International offset credits</header><text>Notwithstanding subparagraph (A), to demonstrate compliance prior to calendar year 2018, a covered entity may use 1 international offset credit in lieu of an emission allowance up to the amount permitted under this paragraph.</text> </subparagraph><subparagraph id="H2E738171D7C24F328D0B41E2BAEA3359"><enum>(E)</enum><header>President’s recommendation</header><text>The President may make a recommendation to Congress as to whether the number 2 billion specified in subparagraphs (A) and (B) should be increased or decreased.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HE0D527B475A248F18BD9D9DD44E46CB6"><enum>(2)</enum><header>Term offset credits</header> <subparagraph id="H7235DEF46A3F400BB747E93F0636E041"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Covered entities may, in accordance with this paragraph, use non-expired term offset credits instead of domestic offset credits for purposes of temporarily demonstrating compliance with this section.</text> </subparagraph><subparagraph id="H508323EF66834464AE3D4D9C31E5D491"><enum>(B)</enum><header>Amount</header><text>The combined quantity of term offset credits and domestic offset credits used by a covered entity to demonstrate compliance for its emissions or attributable greenhouse gas emissions in any given year shall not exceed the quantity of domestic offset credits that a covered entity is entitled to use for that year to demonstrate compliance in accordance with paragraph (1).</text> </subparagraph><subparagraph id="HA110E4E033D24ED2AACA9BFD47442C2F"><enum>(C)</enum><header>Expiration</header><text>A term offset credit shall expire in the year after its term ends. The term of a term offset credit shall be calculated by adding to the year of issuance the number of years equal to the length of the crediting period for the practice or project for which the term offset credit was issued, but in no case shall be later than the date 5 years from the date of issuance.</text> </subparagraph><subparagraph id="H9C89B3CD4957462587246C02BA37A5FD"><enum>(D)</enum><header>Demonstrating compliance upon expiration of term offset credit</header><text>With respect to the emissions for which a covered entity is using term offset credits to demonstrate compliance temporarily with this section, the owner or operator of a covered entity shall not be considered to be in compliance with the prohibition in subsection (a) unless, as of 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (j)) of the calendar year in which a term offset credit expires, the owner or operator holds—</text> <clause id="H291B7AF6CCA3409290C329E25074BC5F"><enum>(i)</enum><text>for purposes of finally demonstrating compliance, an allowance or a domestic offset credit; or</text> </clause><clause id="HAE83F7DE6D0044C299019A83F2344293"><enum>(ii)</enum><text>for purposes of temporarily demonstrating compliance, a non-expired term offset credit.</text> </clause><continuation-text continuation-text-level="subparagraph">Domestic offset credits used for purposes of finally demonstrating compliance under this subparagraph shall not be subject to the percentage limitations in subparagraph (B).</continuation-text></subparagraph><subparagraph id="H16DC5B63CDBA4CD583F564B1B50DC0BB"><enum>(E)</enum><header>Financial assurance</header><text>A covered entity may not use a term offset credit to demonstrate compliance temporarily unless it simultaneously provides to the Administrator financial assurance that, at the end of the term offset credit’s crediting term, the covered entity will have sufficient resources to obtain the quantity of allowances or credits necessary to demonstrate final compliance. The Administrator shall issue regulations establishing requirements for such financial assurance, which shall take into account the increased risk associated with longer crediting terms. These regulations shall take into account the total number of tons of carbon dioxide equivalent of greenhouse gas emissions for which a covered entity is demonstrating compliance temporarily, and may set a limit on this amount. In the event that a covered entity that used term offset credits to demonstrate compliance temporarily fails to meet the requirements of subparagraph (D) at the end of the term offset credits’ crediting term, if the financial assurance mechanism fails to provide to the Administrator the number of allowances or offset credits for which the crediting term has expired, then the Administrator shall retire that number of allowances with the vintage year 2 years after the year in which the term offset credit expires in the same amount. Allowances so retired shall not be counted as emission allowances established for that calendar year under section 721(a).</text> </subparagraph></paragraph><paragraph id="H3B2CCBBFB454489993E761102108EC9C"><enum>(3)</enum><header>International emission allowances</header><text>To demonstrate compliance, a covered entity may hold an international emission allowance in lieu of an emission allowance, except as modified under section 728(d).</text> </paragraph><paragraph id="HBC111B7C97E04F999C078190B458DF24"><enum>(4)</enum><header>Compensatory allowances</header><text>To demonstrate compliance, a covered entity may hold a compensatory allowance obtained under section 721(f) in lieu of an emission allowance.</text> </paragraph></subsection><subsection id="H9355A41B2A5D49E1B48877A6733AB1E8"><enum>(e)</enum><header>Retirement of allowances and credits</header><text>As soon as practicable after a deadline established for covered entities to demonstrate compliance with this title, the Administrator shall retire the quantity of allowances or credits required to be held under this title.</text> </subsection><subsection id="HD656F48CAC6E4495AFEAF47D440911CB"><enum>(f)</enum><header>Alternative metrics</header><text>For categories of covered entities described in subparagraph (B), (C), (D), (G), (H), or (I) of section 700(13), the Administrator may, by rule, establish an applicability threshold for inclusion under those subparagraphs using an alternative metric and level, provided that such metric and level are easier to administer and cover the same size and type of sources as the threshold defined in such subparagraphs.</text> </subsection><subsection id="H5DDB6D684FC743A6943EE92E32493D92"><enum>(g)</enum><header>Threshold review</header><text>For each category of covered entities described in subparagraph (B), (C), (D), (G), (H), or (I) of section 700(13), the Administrator shall, in 2020 and once every 8 years thereafter, review the carbon dioxide equivalent emission threshold that is used to define covered entities in such category. After consideration of—</text> <paragraph id="H0B598509872D4373879BD630A9EDDB77"><enum>(1)</enum><text>emissions from covered entities in such category, and from other entities of the same type that emit less than the threshold amount for the category (including emission sources that commence operation after the date of enactment of this title that are not covered entities); and</text> </paragraph><paragraph id="H07F1A47A90D04519BF938F8A0462F7ED"><enum>(2)</enum><text>whether greater greenhouse gas emission reductions can be cost-effectively achieved by lowering the applicable threshold,</text> </paragraph><continuation-text continuation-text-level="subsection">the Administrator may by rule lower such threshold to not less than 10,000 tons of carbon dioxide equivalent emissions. In determining the cost effectiveness of potential reductions from lowering the threshold for covered entities, the Administrator shall consider alternative regulatory greenhouse gas programs, including setting standards under other titles of this Act.</continuation-text></subsection><subsection id="H7F74EE33927146A384C3C0527E396ED6"><enum>(h)</enum><header>Designated representatives</header><text>The regulations promulgated under section 721(h) shall require that each covered entity, and each entity holding allowances or offset credits or receiving allowances or offset credits from the Administrator under this title, submit to the Administrator a certificate of representation designating a designated representative.</text> </subsection><subsection id="H139E228A288843F8A0D09456B7EFE4F1"><enum>(i)</enum><header>Education and outreach</header> <paragraph id="H4B7D6C636B7745ECB268D55FC10F8B8E"><enum>(1)</enum><header>In general</header><text>The Administrator shall establish and carry out a program of education and outreach to assist covered entities, especially entities having little experience with environmental regulatory requirements similar or comparable to those under this title, in preparing to meet the compliance obligations of this title. Such program shall include education with respect to using markets to effectively achieve such compliance.</text> </paragraph><paragraph id="H2B3C7C99594F4DC78395467C8DEB764D"><enum>(2)</enum><header>Failure to receive information</header><text>A failure to receive information or assistance under this subsection may not be used as a defense against an allegation of any violation of this title.</text> </paragraph></subsection><subsection id="H7B4F9F1C70E84FE3A98F3FE34B1F0C6A"><enum>(j)</enum><header>Adjustment of deadline</header><text>The Administrator may, by rule, establish a deadline for demonstrating compliance, for a calendar year, later than the date provided in subsection (a), as necessary to ensure the availability of emissions data, but in no event shall the deadline be later than June 1.</text> </subsection><subsection id="H60D30C247C4F4367B0F41B506581B0D0"><enum>(k)</enum><header>Notice requirement for covered entities receiving natural gas from natural gas local distribution companies</header><text>The owner or operator of a covered entity that takes delivery of natural gas from a natural gas local distribution company shall, not later than September 1 of each calendar year, notify such natural gas local distribution company in writing that such entity will qualify as a covered entity under this title for that calendar year.</text> </subsection><subsection id="HD9234F4B1275435E9DA0DB263309DE9E"><enum>(l)</enum><header>Compliance obligation</header><text>For purposes of this title, the year of a compliance obligation is the year in which compliance is determined, not the year in which the greenhouse gas emissions occur or the covered entity has attributable greenhouse gas emissions.</text> </subsection></section><section id="H7F3931B1162C493281CCD22B4B6201F4"><enum>723.</enum><header>Penalty for noncompliance</header> <subsection id="H8A0C443E00C54323973F2ACB25B40B72"><enum>(a)</enum><header>Enforcement</header><text display-inline="yes-display-inline">A violation of any prohibition of, requirement of, or regulation promulgated pursuant to this title shall be a violation of this Act. It shall be a violation of this Act for a covered entity to emit greenhouse gases and have attributable greenhouse gas emissions, in combination, in excess of its allowable emissions level as provided in section 722(a). Each ton of carbon dioxide equivalent for which a covered entity fails to demonstrate compliance under section 722 shall be a separate violation. In the event that a covered entity fails to demonstrate compliance at the expiration of a term offset credit’s crediting term as required by section 722(d)(2)(D), the year of the violation shall be the year in which the term offset credit expires.</text> </subsection><subsection id="H039192177F10463C97B11B4849EFDDE4"><enum>(b)</enum><header>Excess emissions penalty</header> <paragraph id="H1A7CE04DF71845579769ECAEC38F6421"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The owner or operator of any covered entity that fails for any year to comply, on the deadline described in section 722(a), (d)(2), or (j), shall be liable for payment to the Administrator of an excess emissions penalty in the amount described in paragraph (2).</text> </paragraph><paragraph id="H797DFF55DD2A41279AC5A61F64F1E166"><enum>(2)</enum><header>Amount</header><text>The amount of an excess emissions penalty required to be paid under paragraph (1) shall be equal to the product obtained by multiplying—</text> <subparagraph id="HF5A101236887406BB5242720F2522F34"><enum>(A)</enum><text>the tons of carbon dioxide equivalent of greenhouse gas emissions or attributable greenhouse gas emissions for which the owner or operator of a covered entity failed to demonstrate compliance under section 722 on the deadline; by</text> </subparagraph><subparagraph id="H57300ECADAA14DC5BE71917DAE476164"><enum>(B)</enum><text>twice the auction clearing price for the earliest vintage year emission allowances in the last auction carried out pursuant to section 791 before such deadline.</text> </subparagraph></paragraph><paragraph id="HBCD5F0D9C787433A8D872B6376F582D0"><enum>(3)</enum><header>Timing</header><text>An excess emissions penalty required under this subsection shall be immediately due and payable to the Administrator, without demand, in accordance with regulations promulgated by the Administrator, which shall be issued not later than 2 years after the date of enactment of this title.</text> </paragraph><paragraph id="HAD5A8DC0CE644C5BA187F7A747F2EBCE"><enum>(4)</enum><header>No effect on liability</header><text>An excess emissions penalty due and payable by the owners or operators of a covered entity under this subsection shall not diminish the liability of the owners or operators for any fine, penalty, or assessment against the owners or operators for the same violation under any other provision of this Act or any other law.</text> </paragraph></subsection><subsection id="HCCA34F86271548ABBC681A53404B9AD0"><enum>(c)</enum><header>Excess emissions allowances</header><text display-inline="yes-display-inline">The owner or operator of a covered entity that fails for any year to comply on the deadline described in section 722(a), (d)(2), or (j) shall be liable to offset the covered entity’s excess combination of greenhouse gases emitted and attributable greenhouse gas emissions by an equal quantity of emission allowances during the following calendar year, or such longer period as the Administrator may prescribe. During the year in which the covered entity failed to comply, or any year thereafter, the Administrator may deduct the emission allowances required under this subsection to offset the covered entity’s excess greenhouse gas emissions or attributable greenhouse gas emissions.</text> </subsection></section><section id="H6BDA8BC44FD540CD87D88708A4BA4368"><enum>724.</enum><header>Trading</header> <subsection id="H34DEEF3C5D36467A819E46C7849DF7CC"><enum>(a)</enum><header>Permitted transactions</header><text display-inline="yes-display-inline">Except as otherwise provided in this title, the lawful holder of an emission allowance, compensatory allowance, or offset credit may, without restriction, sell, exchange, transfer, hold for compliance in accordance with section 722, or request that the Administrator retire the emission allowance, compensatory allowance, or offset credit.</text> </subsection><subsection id="H6E60F0DDE5B0453A9A7C07CA9E78F4BF"><enum>(b)</enum><header>No restriction on transactions</header><text>The privilege of purchasing, holding, selling, exchanging, transferring, and requesting retirement of emission allowances, compensatory allowances, or offset credits shall not be restricted to the owners and operators of covered entities, except as otherwise provided in this title.</text> </subsection><subsection id="H3F1EA2E143954186ACA57BFF7369768C"><enum>(c)</enum><header>Effectiveness of allowance transfers</header><text display-inline="yes-display-inline">No transfer of an allowance, offset credit, or term offset credit shall be effective for purposes of this title until a certification of the transfer, signed by the designated representative of the transferor, is received and recorded by the Administrator in accordance with regulations promulgated under section 721(h).</text> </subsection><subsection id="HBC708B507CA84EC6A2721BC1CDBECDBE"><enum>(d)</enum><header>Allowance tracking system</header><text display-inline="yes-display-inline">The regulations promulgated under section 721(h) shall include a system for issuing, recording, holding, and tracking allowances, offset credits, and term offset credits that shall specify all necessary procedures and requirements for an orderly and competitive functioning of the allowance and offset credit markets. Such regulations shall provide for appropriate publication of the information in the system on the Internet.</text> </subsection></section><section id="H54A9DAF94C91475EA00DB05D26445E4A"><enum>725.</enum><header>Banking and borrowing</header> <subsection id="HB4D15E170DB545C6815AF1A0A36B220D"><enum>(a)</enum><header>Banking</header><text>An emission allowance may be used to comply with section 722 or section 723 for emissions in—</text> <paragraph id="H8783DEC292A64A67B5592BEEE8EF4A0F"><enum>(1)</enum><text>the vintage year for the allowance; or</text> </paragraph><paragraph id="HC40DF290E37C447CB6F21FA3358699E6"><enum>(2)</enum><text>any calendar year subsequent to the vintage year for the allowance.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H7E31E36D889A4158AD385949F353BDA1"><enum>(b)</enum><header>Expiration</header> <paragraph id="HB5A45A930E684CAFB480C1B7B367C8DE"><enum>(1)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Administrator may establish by regulation criteria and procedures for determining whether, and for implementing a determination that, the expiration of an allowance, offset credit, or term offset credit, established or issued under the American Clean Energy and Security Act of 2009 or the amendments made thereby, or expiration of the ability to use an international emission allowance to comply with section 722, is necessary to ensure the authenticity and integrity of allowances, offset credits, or term offset credits or the allowance tracking system.</text> </paragraph><paragraph id="H0F8AAFC267A84B60A175C87F0D1EEBC4"><enum>(2)</enum><header>General rule</header><text display-inline="yes-display-inline">An allowance, offset credit, or term offset credit, established or issued under the American Clean Energy and Security Act of 2009 or the amendments made thereby, shall not expire unless—</text> <subparagraph id="H1153C96BB0C34CC682BD5229B7E99BCF"><enum>(A)</enum><text>it is retired by the Administrator pursuant to this title; or</text> </subparagraph><subparagraph id="H6E2FC3E71EFC481B8B4552809F13339A"><enum>(B)</enum><text>it is determined to expire or to have expired by a specific date by the Administrator in accordance with regulations promulgated under paragraph (1).</text> </subparagraph></paragraph><paragraph id="HA645C45A60174C0DA2EDFAE940CDF970"><enum>(3)</enum><header>International emission allowances</header><text>The ability to use an international emission allowance to comply with section 722 shall not expire unless—</text> <subparagraph id="H9ABAB56E8D5B41C2967D46B3E53586B3"><enum>(A)</enum><text>the allowance is retired by the Administrator pursuant to this title; or</text> </subparagraph><subparagraph id="H641A496649A74BCE93CDDC19D75FD793"><enum>(B)</enum><text>the ability to use such allowance to meet such compliance obligation requirements is determined to expire or to have expired by a specific date by the Administrator in accordance with regulations promulgated under paragraph (1).</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H28E5830DA0014B2D94CAB2F0C2EB1618"><enum>(c)</enum><header>Borrowing future vintage year allowances</header> <paragraph id="HC5841CA53EDA4FEA90D7F876E78BB7FC"><enum>(1)</enum><header>Borrowing without interest</header><text display-inline="yes-display-inline">In addition to the uses described in subsection (a), an emission allowance may be used to demonstrate compliance under section 722 or comply with section 723 for emissions, production, importation, manufacture, or deliveries in the calendar year immediately preceding the vintage year for the allowance.</text> </paragraph><paragraph id="HF2F810ADE8E140F0BC761B00B727F8F6"><enum>(2)</enum><header>Borrowing with interest</header> <subparagraph id="HA32FF4FAE4384B19A609E348E5815911"><enum>(A)</enum><header>In general</header><text>A covered entity may demonstrate compliance under section 722 in a specific calendar year for up to 15 percent of its emissions by holding emission allowances with a vintage year 1 to 5 years later than that calendar year.</text> </subparagraph><subparagraph commented="no" id="HC02BB35BCCD44105B8A4AA6C17972E22"><enum>(B)</enum><header>Limitations</header><text>An emission allowance borrowed pursuant to this paragraph shall be an emission allowance that is established by the Administrator for a specific future calendar year under section 721(a) and that is held by the borrower.</text> </subparagraph><subparagraph commented="no" id="H29CC5B5A6CE54C5895719E858D6A4DDE"><enum>(C)</enum><header>Prepayment of interest</header><text display-inline="yes-display-inline">For each emission allowance that an owner or operator of a covered entity borrows pursuant to this paragraph, such owner or operator shall, at the time it borrows the allowance, hold for retirement by the Administrator, and the Administrator shall retire, a quantity of emission allowances that is equal to the product obtained by multiplying—</text> <clause commented="no" id="H6B4DA48A99C34B7CB020472036739DE3"><enum>(i)</enum><text>0.08; by</text> </clause><clause commented="no" id="H8AE7BEF138AF4590BDF5C158AB99FD2D"><enum>(ii)</enum><text display-inline="yes-display-inline">the number of years between the calendar year in which the allowance is being used to satisfy a compliance obligation and the vintage year of the allowance.</text> </clause></subparagraph></paragraph></subsection></section><section id="HA81914AE67E5494EA35ED297C6904A74" section-type="subsequent-section"><enum>726.</enum><header>Strategic reserve</header> <subsection id="HA832A6180C1746B1976BF0C7A29B26BA"><enum>(a)</enum><header>Strategic reserve auctions</header> <paragraph id="HAF6445C1546747488E664506334FD275"><enum>(1)</enum><header>In general</header><text>Once each quarter of each calendar year for which allowances are established under section 721(a), the Administrator shall auction strategic reserve allowances.</text> </paragraph><paragraph id="H0197DF0EE7B5429BA08B61A8C20A2EE3"><enum>(2)</enum><header>Restriction to covered entities</header><text>In each auction conducted under paragraph (1), only covered entities that the Administrator expects will be required to comply with section 722 in the following calendar year shall be eligible to make purchases.</text> </paragraph></subsection><subsection id="H816624E4A00648679B9FD011D8390C8F"><enum>(b)</enum><header>Pool of emission allowances for strategic reserve auctions</header> <paragraph id="H75E75192ABE84CB8B69236E9AC47753C"><enum>(1)</enum><header>Filling the strategic reserve initially</header> <subparagraph id="HB34AFCA983F24347A1E8F2A20F08697C"><enum>(A)</enum><header>In general</header><text>The Administrator shall, not later than 2 years after the date of enactment of this title, establish a strategic reserve account, and shall place in that account an amount of emission allowances established under section 721(a) for each calendar year from 2012 through 2050 in the amounts specified in subparagraph (B) of this paragraph.</text> </subparagraph><subparagraph id="H66E90E95C7614737AA05241876D0BBB5"><enum>(B)</enum><header>Amount</header><text>The amount referred to in subparagraph (A) shall be—</text> <clause id="H872CF059F8724C4D87B4FD538296E925"><enum>(i)</enum><text>for each of calendar years 2012 through 2019, 1 percent of the quantity of emission allowances established for that year pursuant to section 721(e)(1);</text> </clause><clause id="HC22B373E12AF4F76A01DB3FAF961A8C2"><enum>(ii)</enum><text display-inline="yes-display-inline">for each of calendar years 2020 through 2029, 2 percent of the quantity of emission allowances established for that year pursuant to section 721(e)(1); and</text> </clause><clause id="H18244CFF87E140EC85564EA5E5E08D89"><enum>(iii)</enum><text display-inline="yes-display-inline">for each of calendar years 2030 through 2050, 3 percent of the quantity of emission allowances established for that year pursuant to section 721(e)(1).</text> </clause></subparagraph><subparagraph id="HBF264495CA4046BA8EE7763BADC00BFC"><enum>(C)</enum><header>Effect on other provisions</header><text>Any provision in this title (except for subparagraph (B) of this paragraph) that refers to a quantity or percentage of the emission allowances established for a calendar year under section 721(a) shall be considered to refer to the amount of emission allowances as determined pursuant to section 721(e), less any emission allowances established for that year that are placed in the strategic reserve account under this paragraph.</text> </subparagraph></paragraph><paragraph id="H47CC5DD364004302BE6A022AF6144F9F"><enum>(2)</enum><header>Supplementing the strategic reserve</header><text>The Administrator shall also—</text> <subparagraph id="H7B4167B982C443E8B002075FD472B131"><enum>(A)</enum><text>at the end of each calendar year, transfer to the strategic reserve account each emission allowance that was offered for sale but not sold at any auction conducted under section 791; and</text> </subparagraph><subparagraph id="H4F0B627A13C14470A896A4A524F33A06"><enum>(B)</enum><text>deposit emission allowances established under subsection (g) from auction proceeds into the strategic reserve, to the extent necessary to maintain the reserve at its original size.</text> </subparagraph></paragraph></subsection><subsection id="HFACAFC773D854386B0E552FEB4AD4BD6"><enum>(c)</enum><header>Minimum strategic reserve auction price</header> <paragraph id="HBD6795D2899D4E69A331B07A6CA5AB62"><enum>(1)</enum><header>In general</header><text>At each strategic reserve auction, the Administrator shall offer emission allowances for sale beginning at a minimum price per emission allowance, which shall be known as the <quote>minimum strategic reserve auction price</quote>.</text> </paragraph><paragraph id="H351688D253FA4FBA804B0C56A928CEE0"><enum>(2)</enum><header>Initial minimum strategic reserve auction prices</header><text display-inline="yes-display-inline">The minimum strategic reserve auction price shall be $28 (in constant 2009 dollars) for the strategic reserve auctions held in 2012. For the strategic reserve auctions held in 2013 and 2014, the minimum strategic reserve auction price shall be the strategic reserve auction price for the previous year increased by 5 percent plus the rate of inflation (as measured by the Consumer Price Index for All Urban Consumers).</text> </paragraph><paragraph id="HB47D2E7A540B47E2A2007ADB85478CBF"><enum>(3)</enum><header>Minimum strategic reserve auction price in subsequent years</header><text>For each strategic reserve auction held in 2015 and each year thereafter, the minimum strategic reserve auction price shall be 60 percent above a rolling 36-month average of the daily closing price for that year’s emission allowance vintage as reported on registered carbon trading facilities, calculated using constant dollars.</text> </paragraph></subsection><subsection id="HA97A138ADDE142D28AAC24C0323C6A8E"><enum>(d)</enum><header>Quantity of emission allowances released from the strategic reserve</header> <paragraph id="HEAF0AE536DE5445A87B916078EA72582"><enum>(1)</enum><header>Initial limits</header><text>For each of calendar years 2012 through 2016, the annual limit on the number of emission allowances from the strategic reserve account that may be auctioned is an amount equal to 5 percent of the emission allowances established for that calendar year under section 721(a). This limit does not apply to international offset credits sold on consignment pursuant to subsection (h).</text> </paragraph><paragraph id="H5BA3B22C7D934E6FBDB51E20E4143ADF"><enum>(2)</enum><header>Limits in subsequent years</header><text display-inline="yes-display-inline">For calendar year 2017 and each year thereafter, the annual limit on the number of emission allowances from the strategic reserve account that may be auctioned is an amount equal to 10 percent of the emission allowances established for that calendar year under section 721(a). This limit does not apply to international offset credits sold on consignment pursuant to subsection (h).</text> </paragraph><paragraph id="H67153417060D46548B6D49537AB9C9D2"><enum>(3)</enum><header>Allocation of limitation</header><text>One-fourth of each year’s annual strategic reserve auction limit under this subsection shall be made available for auction in each quarter. Any allowances from the strategic reserve account that are made available for sale in a quarterly auction and not sold shall be rolled over and added to the quantity available for sale in the following quarter, except that allowances not sold at auction in the fourth quarter of a year shall not be rolled over to the following calendar year’s auctions, but shall be returned to the strategic reserve account.</text> </paragraph></subsection><subsection id="H8D35A5BF17894E478E122DD8A2DD96E0"><enum>(e)</enum><header>Purchase limit</header> <paragraph id="HAB38F0CDDAAA44D1AF09842CA6282429"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2) or (3), the annual number of emission allowances that a covered entity may purchase at the strategic reserve auctions in each calendar year shall not exceed 20 percent of the covered entity’s combined greenhouse gas emissions and attributable greenhouse gas emissions during the most recent year for which allowances or offset credits were retired under section 722.</text> </paragraph><paragraph id="HA62A51F46D2643EBB0AFA0FE5209769A"><enum>(2)</enum><header><enum-in-header>2012</enum-in-header> limit</header><text>For calendar year 2012, the maximum aggregate number of emission allowances that a covered entity may purchase from that year’s strategic reserve auctions shall be 20 percent of the covered entity’s combined greenhouse gas emissions and attributable greenhouse gas emissions that the covered entity reported to the registry established under section 713 for 2011 and that would be subject to section 722(a) if occurring in later calendar years.</text> </paragraph><paragraph id="H45CD3BE3BCC6414C80522B090FA15893"><enum>(3)</enum><header>New entrants</header><text>The Administrator shall, by regulation, establish a separate purchase limit applicable to entities that expect to become a covered entity in the year of the auction, permitting them to purchase emission allowances at the strategic reserve auctions in their first calendar year of operation in an amount of at least 20 percent of their expected combined greenhouse gas emissions and attributable greenhouse gas emissions for that year.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HEA63A24A297E45B88F75C976DF5DC175"><enum>(f)</enum><header>Delegation or contract</header><text>Pursuant to regulations under this section, the Administrator may, by delegation or contract, provide for the conduct of strategic reserve auctions under the Administrator’s supervision by other departments or agencies of the Federal Government or by nongovernmental agencies, groups, or organizations.</text> </subsection><subsection commented="no" id="HF89448F8A1D84C149FC687514AFBD231"><enum>(g)</enum><header>Use of auction proceeds</header> <paragraph commented="no" id="H7837DC7EEFD7494A8C9AE78E0EC5056A"><enum>(1)</enum><header>Deposit in Strategic Reserve Fund</header><text>The proceeds from strategic reserve auctions shall be placed in the Strategic Reserve Fund established under section 793(1), and shall be available without further appropriation or fiscal year limitation for the purposes described in this subsection.</text> </paragraph><paragraph commented="no" id="HD753A52AD8CD4EA3AA04981B6B746261"><enum>(2)</enum><header>International offset credits for reduced deforestation</header><text>The Administrator shall use the proceeds from each strategic reserve auction to purchase international offset credits issued for reduced deforestation activities pursuant to section 743(e). The Administrator shall retire those international offset credits and establish a number of emission allowances equal to 80 percent of the number of international offset credits so retired. Emission allowances established under this paragraph shall be in addition to those established under section 721(a).</text> </paragraph><paragraph commented="no" id="H3B4C7F7C54F44C97A5FFD80AC2010E9B"><enum>(3)</enum><header>Emission allowances</header><text>The Administrator shall deposit emission allowances established under paragraph (2) in the strategic reserve, except that, with respect to any such emission allowances in excess of the amount necessary to fill the strategic reserve to its original size, the Administrator shall—</text> <subparagraph commented="no" id="HB7FF006557804C8FB696ABB8539E3F15"><enum>(A)</enum><text display-inline="yes-display-inline">except as provided in subparagraph (B), assign a vintage year to the emission allowance, which shall be no earlier than the year in which the allowance is established under paragraph (2), and shall treat such allowances as ones that are not designated for distribution or auction for purposes of section 782(q) and (r); and</text> </subparagraph><subparagraph commented="no" id="H68F363CEB25B4B4DAB6DD22E91AA2013"><enum>(B)</enum><text>to the extent any such allowances cannot be assigned a vintage year because of the limitation in paragraph (4), retire the allowances.</text> </subparagraph></paragraph><paragraph commented="no" id="HFED248CED86147A69DB3503F14E2141D"><enum>(4)</enum><header>Limitation</header><text display-inline="yes-display-inline">In no case may the Administrator assign under paragraph (3)(A) more emission allowances to a vintage year than the number of emission allowances from that vintage year that were placed in the strategic reserve account under subsection (b)(1).</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HACDB9B871E53453486A5FCF114B7CBDA"><enum>(h)</enum><header>Availability of international offset credits for auction</header><text></text> <paragraph id="H238FEFE92A2E475A9BC0F0DF8D04D72A"><enum>(1)</enum><header>In general</header><text>The regulations promulgated under section 721(h) shall allow any entity holding international offset credits from reduced deforestation issued under section 743(e) to request that the Administrator include such offset credits in an upcoming strategic reserve auction. The regulations shall provide that—</text> <subparagraph id="HC85EFFBE21FA4FB2B76E234DC50907DE"><enum>(A)</enum><text>such international offset credits will be used to fill bid orders only after the supply of strategic reserve allowances available for sale at that auction has been depleted;</text> </subparagraph><subparagraph id="HBEFFE45F26AA4A58BFAE606BF4BF7F1E"><enum>(B)</enum><text display-inline="yes-display-inline">international offset credits may be sold at a strategic reserve auction under this subsection only if the Administrator determines that it is highly likely that covered entities will, to cover emissions occurring in the year the auction is held, use offset credits to demonstrate compliance under section 722 for emissions equal to or greater than 80 percent of 2 billion tons of carbon dioxide equivalent;</text> </subparagraph><subparagraph id="HC6163DAA26A143A5BBFD504F82B83EEE"><enum>(C)</enum><text display-inline="yes-display-inline">upon sale of such international offset credits, the Administrator shall retire those international offset credits, and establish and provide to the purchasers a number of emission allowances equal to 80 percent of the number of international offset credits so retired, which allowances shall be in addition to those established under section 721(a); and</text> </subparagraph><subparagraph id="H05C8D1C238E041B9AB4D0C31D48747DF"><enum>(D)</enum><text display-inline="yes-display-inline">for international offset credits sold pursuant to this subsection, the proceeds for the entity that offered the international offset credits for sale shall be the lesser of—</text> <clause id="H87C5D627367D4C43A6D8FCEEE530B66B"><enum>(i)</enum><text>the average daily closing price for international offset credits sold on registered exchanges (or if such price is unavailable, the average price as determined by the Administrator) during the six months prior to the strategic reserve auction at which they were auctioned, with the remaining funds collected upon the sale of the international offset credits deposited in the Treasury; and</text> </clause><clause id="H06BBCC07F4F34C699F319E29A730C003"><enum>(ii)</enum><text>the amount received for the international offset credits at the auction.</text> </clause></subparagraph></paragraph><paragraph id="H7FF2C39042934B44A226275E29354A58"><enum>(2)</enum><header>Proceeds</header><text display-inline="yes-display-inline">For international offset credits sold pursuant to this subsection, notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/31/3302">section 3302</external-xref> of title 31, United States Code, or any other provision of law, within 90 days of receipt, the United States shall transfer the proceeds from the auction, as defined in paragraph (1)(D), to the entity that offered the international offset credits for sale. No funds transferred from a purchaser to a seller of international offset credits under this paragraph shall be held by any officer or employee of the United States or treated for any purpose as public monies.</text> </paragraph><paragraph id="H677E28D899BB4A47B8139E3CDD2B8CFC"><enum>(3)</enum><header>Pricing</header><text display-inline="yes-display-inline">When the Administrator acts under this subsection as the agent of an entity in possession of international offset credits, the Administrator is not obligated to obtain the highest price possible for the international offset credits, and instead shall auction such international offset credits in the same manner and pursuant to the same rules (except as modified in paragraph (1)) as set forth for auctioning strategic reserve allowances. Entities requesting that such international offset credits be offered for sale at a strategic reserve auction may not set a minimum reserve price for their international offset credits that is different than the minimum strategic reserve auction price set pursuant to subsection (c).</text> </paragraph></subsection><subsection id="H227DC524D81045E4A8DE3B35CF739F31"><enum>(i)</enum><header>Initial regulations</header><text>Not later than 24 months after the date of enactment of this title, the Administrator shall promulgate regulations, in consultation with other appropriate agencies, governing the auction of allowances under this section. Such regulations shall include the following requirements:</text> <paragraph id="H07FF79E149A3418886873C2B6A5EB13E"><enum>(1)</enum><header>Frequency; first auction</header><text>Auctions shall be held four times per year at regular intervals, with the first auction to be held no later than March 31, 2012.</text> </paragraph><paragraph id="H7FAFE0BABF8C45AEAB1C5214F10CC017"><enum>(2)</enum><header>Auction format</header><text>Auctions shall follow a single-round, sealed-bid, uniform price format.</text> </paragraph><paragraph id="HB3926944FCAF46EBAEB051FA2047AB0A"><enum>(3)</enum><header>Participation; financial assurance</header><text>Auctions shall be open to any covered entity eligible to purchase emission allowances at the auction under subsection (a)(2), except that the Administrator may establish financial assurance requirements to ensure that auction participants can and will perform on their bids.</text> </paragraph><paragraph id="H9963A5EA94034BE19DF5BC94B1603793"><enum>(4)</enum><header>Disclosure of beneficial ownership</header><text>Each bidder in an auction shall be required to disclose the person or entity sponsoring or benefitting from the bidder’s participation in the auction if such person or entity is, in whole or in part, other than the bidder.</text> </paragraph><paragraph id="HC4F11371D1F946EB89DEE15DA9EADB3F"><enum>(5)</enum><header>Purchase limits</header><text>No person may, directly or in concert with another participant, purchase more than 20 percent of the allowances offered for sale at any quarterly auction.</text> </paragraph><paragraph id="HF7D6425C84AF4572933579991868D334"><enum>(6)</enum><header>Publication of information</header><text>After the auction, the Administrator shall, in a timely fashion, publish the identities of winning bidders, the quantity of allowances obtained by each winning bidder, and the auction clearing price.</text> </paragraph><paragraph id="H4C1053F358E14004B7E7031ADB5C4B2B"><enum>(7)</enum><header>Other requirements</header><text>The Administrator may include in the regulations such other requirements or provisions as the Administrator, in consultation with other agencies as appropriate, considers appropriate to promote effective, efficient, transparent, and fair administration of auctions under this section.</text> </paragraph></subsection><subsection id="H6D5BF3DE38354E5A8F32F38DF9A084AE"><enum>(j)</enum><header>Revision of regulations</header><text display-inline="yes-display-inline">The Administrator may, at any time, in consultation with other agencies as appropriate, revise the initial regulations promulgated under subsection (i) by promulgating new regulations. Such revised regulations need not meet the requirements identified in subsection (i) if the Administrator determines that an alternative auction design would be more effective, taking into account factors including costs of administration, transparency, fairness, and risks of collusion or manipulation. In determining whether and how to revise the initial regulations under this subsection, the Administrator shall not consider maximization of revenues to the Federal Government.</text> </subsection></section><section id="HB14953C8D03A46B989D474C1167773B5"><enum>727.</enum><header>Permits</header> <subsection id="H5DE7550835234A7E8A2F1D15FE27A68D"><enum>(a)</enum><header>Permit program</header><text display-inline="yes-display-inline">For stationary sources subject to title V of this Act that are covered entities, the provisions of this title shall be implemented by permits issued to such covered entities (and enforced) in accordance with the provisions of title V, as modified by this title. Any such permit issued by the Administrator, or by a State or Indian tribe with an approved permit program, shall require the owner or operator of a covered entity to hold allowances or offset credits at least equal to the total annual amount of carbon dioxide equivalents for its combined emissions and attributable greenhouse gas emissions to which section 722 applies. No such permit shall be issued that is inconsistent with the requirements of this title, and title V as applicable. Nothing in this section regarding compliance plans or in title V shall be construed as affecting allowances or offset credits. Submission of a statement by the owner or operator, or the designated representative of the owners and operators, of a covered entity that the owners and operators will hold allowances or offset credits for the entity’s combined emissions and attributable greenhouse gas emissions to which section 722 applies shall be deemed to meet the proposed and approved planning requirements of title V. Recordation by the Administrator of transfers of allowances and offset credits shall amend automatically all applicable proposed or approved permit applications, compliance plans, and permits.</text> </subsection><subsection id="H339DA60CC54847AEA7EE7035F85EBDF0"><enum>(b)</enum><header>Multiple owners</header><text display-inline="yes-display-inline">No permit shall be issued under this section and no allowances or offset credits shall be disbursed under this title to a covered entity or any other person until the designated representative of the owners or operators has filed a certificate of representation with regard to matters under this title, including the holding and distribution of emission allowances and the proceeds of transactions involving emission allowances. Where there are multiple holders of a legal or equitable title to, or a leasehold interest in, such a covered entity or other entity or where a utility or industrial customer purchases power under a long-term power purchase contract from an independent power production facility that is a covered entity, the certificate shall state—</text> <paragraph id="HBE6531176B484FA9B89846FEC9B31CAF"><enum>(1)</enum><text>that emission allowances and the proceeds of transactions involving emission allowances will be deemed to be held or distributed in proportion to each holder’s legal, equitable, leasehold, or contractual reservation or entitlement; or</text> </paragraph><paragraph id="HE493E59D98574C7280D9B5977BFCC725"><enum>(2)</enum><text>if such multiple holders have expressly provided for a different distribution of emission allowances by contract, that emission allowances and the proceeds of transactions involving emission allowances will be deemed to be held or distributed in accordance with the contract.</text> </paragraph><continuation-text continuation-text-level="subsection">A passive lessor, or a person who has an equitable interest through such lessor, whose rental payments are not based, either directly or indirectly, upon the revenues or income from the covered entity or other entity shall not be deemed to be a holder of a legal, equitable, leasehold, or contractual interest for the purpose of holding or distributing emission allowances as provided in this subsection, during either the term of such leasehold or thereafter, unless expressly provided for in the leasehold agreement. Except as otherwise provided in this subsection, where all legal or equitable title to or interest in a covered entity, or other entity, is held by a single person, the certificate shall state that all emission allowances received by the entity are deemed to be held for that person.</continuation-text></subsection><subsection id="H5364BFD002C445419FA2CEFF19950B34"><enum>(c)</enum><header>Prohibition</header><text>It shall be unlawful for any person to operate any stationary source subject to the requirements of this section except in compliance with the terms and requirements of a permit issued by the Administrator or a State or Indian tribe with an approved permit program in accordance with this section. For purposes of this subsection, compliance, as provided in section 504(f), with a permit issued under title V which complies with this title for covered entities shall be deemed compliance with this subsection as well as section 502(a).</text> </subsection><subsection id="H62BC67D0C29F4B66A1359C875B867334"><enum>(d)</enum><header>Reliability</header><text>Nothing in this section or title V shall be construed as requiring termination of operations of a stationary source that is a covered entity for failure to have an approved permit, or compliance plan, that is consistent with the requirements in the second and fifth sentences of subsection (a) concerning the holding of allowances or offset credits, except that any such covered entity may be subject to the applicable enforcement provision of section 113.</text> </subsection><subsection id="H972E074E08D2469E8C1CE7B2C8962476"><enum>(e)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to implement this section. To provide for permits required under this section, each State in which one or more stationary sources that are covered entities are located shall submit, in accordance with this section and title V, revised permit programs for approval.</text> </subsection></section><section id="HBFED3C943AD2453ABA25440CABB9536C"><enum>728.</enum><header>International emission allowances</header> <subsection id="H8CC25BF60320403A8D46C32CAAE9D385"><enum>(a)</enum><header>Qualifying programs</header><text>The Administrator, in consultation with the Secretary of State, may by rule designate an international climate change program as a qualifying international program if—</text> <paragraph id="H92E9517654DE4E18ADAF10506EF34F96"><enum>(1)</enum><text>the program is run by a national or supranational foreign government, and imposes a mandatory absolute tonnage limit on greenhouse gas emissions from 1 or more foreign countries, or from 1 or more economic sectors in such a country or countries; and</text> </paragraph><paragraph id="H2CEEEA3E0FA141DF84C689372CF4FA73"><enum>(2)</enum><text>the program is at least as stringent as the program established by this title, including provisions to ensure at least comparable monitoring, compliance, enforcement, quality of offsets, and restrictions on the use of offsets.</text> </paragraph></subsection><subsection id="H4B690AA04D9845A3B1713B445325EA4E"><enum>(b)</enum><header>Disqualified allowances</header><text>An international emission allowance may not be held under section 722(d)(2) if it is in the nature of an offset instrument or allowance awarded based on the achievement of greenhouse gas emission reductions or avoidance, or greenhouse gas sequestration, that are not subject to the mandatory absolute tonnage limits referred to in subsection (a)(1).</text> </subsection><subsection id="H496BAF6F36CA44119B61C864673BE651"><enum>(c)</enum><header>Retirement</header> <paragraph id="HCC0E2E6FB43140E58E6C2DEF4545F41F"><enum>(1)</enum><header>Entity certification</header><text>The owner or operator of an entity that holds an international emission allowance under section 722(d)(2) shall certify to the Administrator that such international emission allowance has not previously been used to comply with any foreign, international, or domestic greenhouse gas regulatory program.</text> </paragraph><paragraph id="H2B798384C40B440EBF84BEB911FA673F"><enum>(2)</enum><header>Retirement</header> <subparagraph id="H94FD2DCB6A934451BF72A48FC058D77B"><enum>(A)</enum><header>Foreign and international regulatory entities</header><text>The Administrator, in consultation with the Secretary of State, shall seek, by whatever means appropriate, including agreements and technical cooperation on allowance tracking, to ensure that any relevant foreign, international, and domestic regulatory entities—</text> <clause id="HEB77A9FA86E2408FB98E6427AECAC0D6"><enum>(i)</enum><text>are notified of the use, for purposes of compliance with this title, of any international emission allowance; and</text> </clause><clause id="H25DD47907ADC40A588C1DFA20DD210A9"><enum>(ii)</enum><text>provide for the disqualification of such international emission allowance for any subsequent use under the relevant foreign, international, or domestic greenhouse gas regulatory program, regardless of whether such use is a sale, exchange, or submission to satisfy a compliance obligation.</text> </clause></subparagraph><subparagraph id="H8C91375356E9497EB8BC69F36FE03633"><enum>(B)</enum><header>Disqualification from further use</header><text>The Administrator shall ensure that, once an international emission allowance has been disqualified or otherwise used for purposes of compliance with this title, such allowance shall be disqualified from any further use under this title.</text> </subparagraph></paragraph></subsection><subsection id="HD8A2153654104C95B3624F8B1290E8A6"><enum>(d)</enum><header>Use limitations</header><text>The Administrator may, by rule, apply a limit to the percentage of the combined greenhouse gas emissions and attributable greenhouse gas emissions of a covered entity with respect to which compliance may be demonstrated by holding international emission allowances under section 722(d)(2), consistent with the purposes of the Safe Climate Act.</text> </subsection></section></part><part id="H8FB16160D3AE4B09936CE844FE680989"><enum>D</enum><header>Offsets</header> <section id="H97B4BECAC715452295E1AC8EF6F391F3"><enum>731.</enum><header>Offsets Integrity Advisory Board</header> <subsection id="H7D5DE4ED683943A3846A2409965926A8"><enum>(a)</enum><header>Establishment</header><text>Not later than 30 days after the date of enactment of this title, the Administrator shall establish an independent Offsets Integrity Advisory Board. The Advisory Board shall make recommendations to the Administrator for use in promulgating and revising regulations under this part and part E, and for ensuring the overall environmental integrity of the programs established pursuant to those regulations.</text> </subsection><subsection commented="no" id="H7790A86383C6425EA8EA60853031B51C"><enum>(b)</enum><header>Membership</header><text display-inline="yes-display-inline">The Advisory Board shall be comprised of at least nine members. Each member shall be qualified by education, training, and experience to evaluate scientific and technical information on matters referred to the Board under this section. The Administrator shall appoint Advisory Board members, including a chair and vice-chair of the Advisory Board. Terms shall be 3 years in length, except for initial terms, which may be up to 5 years in length to allow staggering. Members may be reappointed only once for an additional 3-year term, and such second term may follow directly after a first term.</text> </subsection><subsection id="HBBD58C32B9E245529E0A3A9A6600CFC7"><enum>(c)</enum><header>Activities</header><text>The Advisory Board established pursuant to subsection (a) shall—</text> <paragraph id="H3DBE07EC87FD48338C069474CCCC3AFB"><enum>(1)</enum><text>provide recommendations, not later than 90 days after the Advisory Board’s establishment and periodically thereafter, to the Administrator regarding offset project types that should be considered for eligibility under section 733, taking into consideration relevant scientific and other issues, including—</text> <subparagraph id="HB616F1124F0C4A44B100CBA86C2B427D"><enum>(A)</enum><text>the availability of a representative data set for use in developing the activity baseline;</text> </subparagraph><subparagraph id="HA8AE95995B0B43D499AE29D071877B7B"><enum>(B)</enum><text>the potential for accurate quantification of greenhouse gas reduction, avoidance, or sequestration for an offset project type;</text> </subparagraph><subparagraph id="H2EFF3BE607E040819AA71427D031FDDB"><enum>(C)</enum><text>the potential level of scientific and measurement uncertainty associated with an offset project type; and</text> </subparagraph><subparagraph id="H48268B1C27E6460E843FE4AB55EB2D16"><enum>(D)</enum><text>any beneficial or adverse environmental, public health, welfare, social, economic, or energy effects associated with an offset project type;</text> </subparagraph></paragraph><paragraph id="H0B2AF0DC6FE04CFE8CCBD56A720F8EAC"><enum>(2)</enum><text display-inline="yes-display-inline">make available to the Administrator its advice and comments on offset methodologies that should be considered under regulations promulgated with respect to section 734, including methodologies to address the issues of additionality, activity baselines, quantification methods, leakage, uncertainty, permanence, and environmental integrity;</text> </paragraph><paragraph id="H08CBEC01C402468D959CB49E557BF6A2"><enum>(3)</enum><text display-inline="yes-display-inline">make available to the Administrator, and other relevant Federal agencies, its advice and comments regarding scientific, technical, and methodological issues specific to the issuance of international offset credits under section 743;</text> </paragraph><paragraph id="HE529C0C58D24498DA713C8184AB1E05C"><enum>(4)</enum><text display-inline="yes-display-inline">make available to the Administrator, and other relevant Federal agencies, its advice and comments regarding scientific, technical, and methodological issues associated with the implementation of part E;</text> </paragraph><paragraph id="H56D266DE5C514D598BC4E0BBA3A5B014"><enum>(5)</enum><text display-inline="yes-display-inline">make available to the Administrator its advice and comments on areas in which further knowledge is required to appraise the adequacy of existing, revised, or proposed methodologies for use under this part and part E, and describe the research efforts necessary to provide the required information; and</text> </paragraph><paragraph id="H1B0C0B14AF6A497195C79DD59C6C33C4"><enum>(6)</enum><text display-inline="yes-display-inline">make available to the Administrator its advice and comments on other ways to improve or safeguard the environmental integrity of programs established under this part and part E.</text> </paragraph></subsection><subsection id="HE7DE404FC8B544948B805AFCA76EFD4A"><enum>(d)</enum><header>Scientific review of offset and deforestation reduction programs</header><text>Not later than January 1, 2017, and at 5-year intervals thereafter, the Advisory Board shall submit to the Administrator and make available to the public an analysis of relevant scientific and technical information related to this part and part E. The Advisory Board shall review approved and potential methodologies, scientific studies, offset project monitoring, offset project verification reports, and audits related to this part and part E, and evaluate the net emissions effects of implemented offset projects. The Advisory Board shall recommend changes to offset methodologies, protocols, or project types, or to the overall offset program under this part, to ensure that offset credits issued by the Administrator do not compromise the integrity of the annual emission reductions established under section 703, and to avoid or minimize adverse effects to human health or the environment.</text> </subsection></section><section id="HE06A8EC8DD3049E3829F618821BDD0A7"><enum>732.</enum><header>Establishment of offsets program</header> <subsection id="H8FD69715114F43B587950F60A097178D"><enum>(a)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with appropriate Federal agencies and taking into consideration the recommendations of the Advisory Board, shall promulgate regulations establishing a program for the issuance of offset credits in accordance with the requirements of this part. The Administrator shall periodically revise these regulations as necessary to meet the requirements of this part.</text> </subsection><subsection id="H15EABF6A4D6844B592B0921C320A760D"><enum>(b)</enum><header>Requirements</header><text>The regulations described in subsection (a) shall—</text> <paragraph id="H240E6BEDF09F430C907ED2F579A29EE2"><enum>(1)</enum><text>authorize the issuance of offset credits with respect to qualifying offset projects that result in reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases;</text> </paragraph><paragraph id="H32C807B06F174974985DA86EC63EBBC8"><enum>(2)</enum><text>ensure that such offset credits represent verifiable and additional greenhouse gas emission reductions or avoidance, or increases in sequestration;</text> </paragraph><paragraph id="H2F69666D9B2D4F03BDF7701328B30896"><enum>(3)</enum><text>ensure that offset credits issued for sequestration offset projects are only issued for greenhouse gas reductions that are permanent;</text> </paragraph><paragraph id="H2EFB364F71C74235BBA129ECD68F57C7"><enum>(4)</enum><text>provide for the implementation of the requirements of this part; and</text> </paragraph><paragraph id="H3EF65BC6CE244190B956AA004321546F"><enum>(5)</enum><text display-inline="yes-display-inline">include as reductions in greenhouse gases reductions achieved through the destruction of methane and its conversion to carbon dioxide, and reductions achieved through destruction of chlorofluorocarbons or other ozone depleting substances, if permitted by the Administrator under section 619(b)(9) and subject to the conditions specified in section 619(b)(9), based on the carbon dioxide equivalent value of the substance destroyed.</text> </paragraph></subsection><subsection id="H0DE63D0F2447461289FACAF31C596098"><enum>(c)</enum><header>Coordination to minimize negative effects</header><text>In promulgating and implementing regulations under this part, the Administrator shall act (including by rejecting projects, if necessary) to avoid or minimize, to the maximum extent practicable, adverse effects on human health or the environment resulting from the implementation of offset projects under this part.</text> </subsection><subsection id="HDC7D185C43534C99BD4598B18C8CB1DB"><enum>(d)</enum><header>Offset registry</header><text>The Administrator shall establish within the allowance tracking system established under section 724(d) an Offset Registry for qualifying offset projects and offset credits issued with respect thereto under this part.</text> </subsection><subsection id="H999F31020195449AAEB45BC0D7CAD842"><enum>(e)</enum><header>Legal status of offset credit</header><text>An offset credit does not constitute a property right.</text> </subsection><subsection id="H08DEFD5341014D70B377D60242B3AA68"><enum>(f)</enum><header>Fees</header><text display-inline="yes-display-inline">The Administrator shall assess fees payable by offset project developers in an amount necessary to cover the administrative costs to the Environmental Protection Agency of carrying out the activities under this part. Amounts collected for such fees shall be available to the Administrator for carrying out the activities under this part to the extent provided in advance in appropriations Acts.</text> </subsection></section><section id="H106CA176AB244DAFB01A6AED7E84AEA8"><enum>733.</enum><header>Eligible project types</header> <subsection id="HFC4B25CF06C44DD2B336CEA14FE18190"><enum>(a)</enum><header>List of eligible project types</header> <paragraph id="HDAF50674127541D5A7D30493E536E197"><enum>(1)</enum><header>In general</header><text>As part of the regulations promulgated under section 732(a), the Administrator shall establish, and may periodically revise, a list of types of projects eligible to generate offset credits, including international offset credits, under this part.</text> </paragraph><paragraph id="H30B4D0DC20C14D118AA59D1D4F08A2D4"><enum>(2)</enum><header>Advisory Board recommendations</header><text>In determining the eligibility of project types, the Administrator shall take into consideration the recommendations of the Advisory Board. If a list established under this section differs from the recommendations of the Advisory Board, the regulations promulgated under section 732(a) shall include a justification for the discrepancy.</text> </paragraph><paragraph id="H4AE13B3B1D5E4491992222874D492C9A"><enum>(3)</enum><header>Initial determination</header><text display-inline="yes-display-inline">The Administrator shall establish the initial eligibility list under paragraph (1) not later than 1 year after the date of enactment of this title. The Administrator shall add additional project types to the list not later than 2 years after the date of enactment of this title. In determining the initial list, the Administrator shall give priority to consideration of offset project types that are recommended by the Advisory Board and for which there are well developed methodologies that the Administrator determines would meet the criteria of section 734, with such modifications as the Administrator deems appropriate. In establishing methodologies pursuant to section 734, the Administrator shall give priority to methodologies for offset project types included on the initial eligibility list.</text> </paragraph></subsection><subsection id="H279D50E62B1E4AB287B2547ED18E853A"><enum>(b)</enum><header>Modification of list</header><text display-inline="yes-display-inline">The Administrator—</text> <paragraph id="HF2715B869BC148BFB8C889C01120FC11"><enum>(1)</enum><text>may at any time, by rule, add a project type to the list established under subsection (a) if the Administrator, in consultation with appropriate Federal agencies and taking into consideration the recommendations of the Advisory Board, determines that the project type can generate additional reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, subject to the requirements of this part;</text> </paragraph><paragraph id="H704032F374DC431DB4E9FD0002A0591A"><enum>(2)</enum><text display-inline="yes-display-inline">may at any time, by rule, determine that a project type on the list does not meet the requirements of this part, and remove the project type from the list established under subsection (a), in consultation with appropriate Federal agencies and taking into consideration any recommendations of the Advisory Board; and</text> </paragraph><paragraph id="H2E78B28F9C5E45B288DBEEA8482529AD"><enum>(3)</enum><text>shall consider adding to or removing from the list established under subsection (a), at a minimum, project types proposed to the Administrator—</text> <subparagraph id="HDE26B10742524820A13262C02D062A57"><enum>(A)</enum><text>by petition pursuant to subsection (c); or</text> </subparagraph><subparagraph id="H87DC775D06DC4039ADA79E3BD9284A86"><enum>(B)</enum><text>by the Advisory Board.</text> </subparagraph></paragraph></subsection><subsection id="H2B1451B694DC4D219C1AEB47FEA61071"><enum>(c)</enum><header>Petition process</header><text display-inline="yes-display-inline">Any person may petition the Administrator to modify the list established under subsection (a) by adding or removing a project type pursuant to subsection (b). Any such petition shall include a showing by the petitioner that there is adequate data to establish that the project type does or does not meet the requirements of this part. Not later than 12 months after receipt of such a petition, the Administrator shall either grant or deny the petition and publish a written explanation of the reasons for the Administrator’s decision. The Administrator may not deny a petition under this subsection on the basis of inadequate Environmental Protection Agency resources or time for review.</text> </subsection></section><section id="H6340C07FE4664585B5302FF6401918A6" section-type="subsequent-section"><enum>734.</enum><header>Requirements for offset projects</header> <subsection id="H15CC900154FE46CFB86B99DC30F7DB63"><enum>(a)</enum><header>Methodologies</header><text display-inline="yes-display-inline">As part of the regulations promulgated under section 732(a), the Administrator shall establish, for each type of offset project listed as eligible under section 733, the following:</text> <paragraph id="HF391EB1BE63749A890099F07D1D6EDD7"><enum>(1)</enum><header>Additionality</header><text display-inline="yes-display-inline">A standardized methodology for determining the additionality of greenhouse gas emission reductions or avoidance, or greenhouse gas sequestration, achieved by an offset project of that type. Such methodology shall ensure, at a minimum, that any greenhouse gas emission reduction or avoidance, or any greenhouse gas sequestration, is considered additional only to the extent that it results from activities that—</text> <subparagraph id="H645A36AAE27D475983DEAD3ADFED0F9E"><enum>(A)</enum><text>are not required by or undertaken to comply with any law, including any regulation or consent order;</text> </subparagraph><subparagraph id="H11EBCBFB5A7F4D02871C1E4B974D009C"><enum>(B)</enum><text>were not commenced prior to January 1, 2009, except in the case of—</text> <clause id="HEDF0C38ABF5542A2BEFC18381A6ACFF8"><enum>(i)</enum><text>offset project activities that commenced after January 1, 2001, and were registered as of the date of enactment of this title under an offset program with respect to which the Administrator has made an affirmative determination under section 740(a)(2); or</text> </clause><clause id="H10E403B7F75B4B31A58D55CEBF1A0AB5"><enum>(ii)</enum><text>activities that are readily reversible, with respect to which the Administrator may set an alternative earlier date under this subparagraph that is not earlier than January 1, 2001, where the Administrator determines that setting such an alternative date may produce an environmental benefit by removing an incentive to cease and then reinitiate activities that began prior to January 1, 2009; and</text> </clause></subparagraph><subparagraph id="HB611459DF5E44EAE85CF4EFC25B7BED5"><enum>(C)</enum><text>exceed the activity baseline established under paragraph (2).</text> </subparagraph></paragraph><paragraph id="H010BE03719204476B58DC3721234F7F6"><enum>(2)</enum><header>Activity baselines</header><text display-inline="yes-display-inline">A standardized methodology for establishing activity baselines for offset projects of that type. The Administrator shall set activity baselines to reflect a conservative estimate of business-as-usual performance or practices for the relevant type of activity such that the baseline provides an adequate margin of safety to ensure the environmental integrity of offsets calculated in reference to such baseline.</text> </paragraph><paragraph id="H62A9D31EF53846EC9459A7C97A59D067"><enum>(3)</enum><header>Quantification methods</header><text display-inline="yes-display-inline">A standardized methodology for determining the extent to which greenhouse gas emission reductions or avoidance, or greenhouse gas sequestration, achieved by an offset project of that type exceed a relevant activity baseline, including protocols for monitoring and accounting for uncertainty.</text> </paragraph><paragraph id="HEFCD007D5A0345F1BF33DBB5DEF1D43B"><enum>(4)</enum><header>Leakage</header><text display-inline="yes-display-inline">A standardized methodology for accounting for and mitigating potential leakage, if any, from an offset project of that type, taking uncertainty into account.</text> </paragraph></subsection><subsection id="HBFE04949F625430082D172B4EE33CBBF"><enum>(b)</enum><header>Accounting for reversals</header> <paragraph id="HED69C3670CE14CC6B927D5A2EF646022"><enum>(1)</enum><header>In general</header><text>For each type of sequestration project listed under section 733, the Administrator shall establish requirements to account for and address reversals, including—</text> <subparagraph id="H7BE84E49981449B6A9E39D83BAC74475"><enum>(A)</enum><text>a requirement to report any reversal with respect to an offset project for which offset credits have been issued under this part;</text> </subparagraph><subparagraph id="H204D8F141A2B42B69EF8D74D754A29CC"><enum>(B)</enum><text>provisions to require emission allowances to be held in amounts to fully compensate for greenhouse gas emissions attributable to reversals, and to assign responsibility for holding such emission allowances; and</text> </subparagraph><subparagraph id="H5739FE286955456AB54550B9C5F772B6"><enum>(C)</enum><text>any other provisions the Administrator determines necessary to account for and address reversals.</text> </subparagraph></paragraph><paragraph id="H053E44964D754CFB8032B41B789AC8CC"><enum>(2)</enum><header>Mechanisms</header><text display-inline="yes-display-inline">The Administrator shall prescribe mechanisms to ensure that any sequestration with respect to which an offset credit is issued under this part results in a permanent net increase in sequestration, and that full account is taken of any actual or potential reversal of such sequestration, with an adequate margin of safety. The Administrator shall prescribe at least one of the following mechanisms to meet the requirements of this paragraph:</text> <subparagraph commented="no" id="H59D7BE3ACAFC4A1E87DAB4012D2E41A7"><enum>(A)</enum><text>An offsets reserve, pursuant to paragraph (3).</text> </subparagraph><subparagraph commented="no" id="H328786DFB9834959BA6A6C6B019D53C1"><enum>(B)</enum><text>Insurance that provides for purchase and provision to the Administrator for retirement of an amount of offset credits or emission allowances equal in number to the tons of carbon dioxide equivalents of greenhouse gas emissions released due to reversal.</text> </subparagraph><subparagraph id="H68E0153F2492403A9276435A926A98C6"><enum>(C)</enum><text>Another mechanism that the Administrator determines satisfies the requirements of this part.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HFE5A31847AB34E0AB4530D8E71AE79F3"><enum>(3)</enum><header>Offsets reserve</header> <subparagraph id="H043EC765C1B046C9B93B6069F8305CED"><enum>(A)</enum><header>In general</header><text>An offsets reserve referred to in paragraph (2)(A) is a program under which, before issuance of offset credits under this part, the Administrator shall subtract and reserve from the quantity to be issued a quantity of offset credits based on the risk of reversal. The Administrator shall—</text> <clause id="H30E27D042C28499D8DFEC86DE81F3FF5"><enum>(i)</enum><text>hold these reserved offset credits in the offsets reserve; and</text> </clause><clause id="H2D389D17EA254A50A2BA753748C27A3F"><enum>(ii)</enum><text>register the holding of the reserved offset credits in the Offset Registry established under section 732(d).</text> </clause></subparagraph><subparagraph id="HA84E5EED669149FCA34C5513E9134E5D"><enum>(B)</enum><header>Project reversal</header> <clause id="H04DC8E43D866421FB8DD2F0707565B66"><enum>(i)</enum><header>In general</header><text>If a reversal has occurred with respect to an offset project for which offset credits are reserved under this paragraph, the Administrator shall retire offset credits or emission allowances from the offsets reserve to fully account for the tons of carbon dioxide equivalent that are no longer sequestered.</text> </clause><clause id="H594CDDCEA4FB4EDDB85F6EF5E7D667C3"><enum>(ii)</enum><header>Intentional reversals</header><text display-inline="yes-display-inline">If the Administrator determines that a reversal was intentional, the offset project developer for the relevant offset project shall place into the offsets reserve a quantity of offset credits, or combination of offset credits and emission allowances, equal in number to the number of reserve offset credits that were canceled due to the reversal pursuant to clause (i).</text> </clause><clause id="HE97C55079FFA49C492C01853DE32B2A4"><enum>(iii)</enum><header>Unintentional reversals</header><text display-inline="yes-display-inline">If the Administrator determines that a reversal was unintentional, the offset project developer for the relevant offset project shall place into the offsets reserve a quantity of offset credits, or combination of offset credits and emission allowances, equal in number to half the number of offset credits that were reserved for that offset project, or half the number of reserve offset credits that were canceled due to the reversal pursuant to clause (i), whichever is less.</text> </clause></subparagraph><subparagraph id="HCF9F70EAF21C4C9E930426066AC18F52"><enum>(C)</enum><header>Use of reserved offset credits</header><text display-inline="yes-display-inline">Offset credits placed into the offsets reserve under this paragraph may not be used to comply with section 722.</text> </subparagraph></paragraph></subsection><subsection id="H8922B7314C1F4A7AA42A6559A7DBEDE3"><enum>(c)</enum><header>Crediting periods</header> <paragraph id="H06D77329B9ED4339BCA4C9C2E1779139"><enum>(1)</enum><header>In general</header><text>For each offset project type, the Administrator shall specify a crediting period, and establish provisions for petitions for new crediting periods, in accordance with this subsection.</text> </paragraph><paragraph commented="no" id="H293F50A524654527929EF971E01FC690"><enum>(2)</enum><header>Duration</header><text>The crediting period shall be no less than 5 and no greater than 10 years for any project type other than those involving sequestration.</text> </paragraph><paragraph id="H6052858987144A0C84B7A7BCB19327F4"><enum>(3)</enum><header>Eligibility</header><text>An offset project shall be eligible to generate offset credits under this part only during the project’s crediting period. During such crediting period, the project shall remain eligible to generate offset credits, subject to the methodologies and project type eligibility list that applied as of the date of project approval under section 735, except as provided in paragraph (4) of this subsection.</text> </paragraph><paragraph id="H34F5086145C741F0A39017D25C58830A"><enum>(4)</enum><header>Petition for new crediting period</header><text>An offset project developer may petition for a new crediting period to commence after termination of a crediting period, subject to the methodologies and project type eligibility list in effect at the time when such petition is submitted. A petition may not be submitted under this paragraph more than 18 months before the end of the pending crediting period. The Administrator may limit the number of new crediting periods available for projects of particular project types.</text> </paragraph></subsection><subsection id="HA31F00BF36F74824BC238A8FADDFE074"><enum>(d)</enum><header>Environmental integrity</header><text>In establishing the requirements under this section, the Administrator shall apply conservative assumptions or methods to maximize the certainty that the environmental integrity of the cap established under section 703 is not compromised.</text> </subsection><subsection id="H97717D41D46B437496D9B01990B18710"><enum>(e)</enum><header>Pre-existing methodologies</header><text>In promulgating requirements under this section, the Administrator shall give due consideration to methodologies for offset projects existing as of the date of enactment of this title.</text> </subsection><subsection id="HC4F0E3963BCA40F09FB757916F8DA7E3"><enum>(f)</enum><header>Added project types</header><text>The Administrator shall establish methodologies described in subsection (a), and, as applicable, requirements and mechanisms for reversals as described in subsection (b), for any project type that is added to the list pursuant to section 733.</text> </subsection></section><section id="H6B69EE657B044CEBA307A4F4E7F2D693"><enum>735.</enum><header>Approval of offset projects</header> <subsection id="H00E7FA60B300494CB436B32DFFD88989"><enum>(a)</enum><header>Approval petition</header><text>An offset project developer shall submit an offset project approval petition providing such information as the Administrator requires to determine whether the offset project is eligible for issuance of offset credits under rules promulgated pursuant to this part.</text> </subsection><subsection id="H93C471201AD14B0E8E2173CE6D2ED6AE"><enum>(b)</enum><header>Timing</header><text>An approval petition shall be submitted to the Administrator under subsection (a) no later than the time at which an offset project’s first verification report is submitted under section 736.</text> </subsection><subsection id="HCF00F3FBD64644C095B76FF64B70459B"><enum>(c)</enum><header>Approval petition requirements</header><text>As part of the regulations promulgated under section 732, the Administrator shall include provisions for, and shall specify, the required components of an offset project approval petition required under subsection (a), which shall include—</text> <paragraph id="H32C26A83CDA04E1087F9AE272ABFE4EE"><enum>(1)</enum><text>designation of an offset project developer; and</text> </paragraph><paragraph id="H9B2E35AFA4724568B908135381400F4F"><enum>(2)</enum><text>any other information that the Administrator considers to be necessary to achieve the purposes of this part.</text> </paragraph></subsection><subsection id="H1D412CCB3EFA4D7D8D52B00299554604"><enum>(d)</enum><header>Approval and notification</header><text>Not later than 90 days after receiving a complete approval petition under subsection (a), the Administrator shall make the approval petition publicly available, approve or deny the petition in writing and if the petition is denied, provide the reasons for denial, and make the Administrator’s written decision publicly available. After an offset project is approved, the offset project developer shall not be required to resubmit an approval petition during the offset project’s crediting period, except as provided in section 734(c)(4).</text> </subsection><subsection id="HE1AACD5D765C488CBE8FB4E60994F53E"><enum>(e)</enum><header>Appeal</header><text>The Administrator shall establish procedures for appeal and review of determinations made under subsection (d).</text> </subsection><subsection id="HA4C7C951CE344D4F8FF61D8A67BC7346"><enum>(f)</enum><header>Voluntary preapproval review</header><text display-inline="yes-display-inline">The Administrator may establish a voluntary preapproval review procedure, to allow an offset project developer to request the Administrator to conduct a preliminary eligibility review for an offset project. Findings of such reviews shall not be binding upon the Administrator. The voluntary preapproval review procedure—</text> <paragraph id="H79D08C16866A4281990292B2CE8A1A18"><enum>(1)</enum><text>shall require the offset project developer to submit such basic project information as the Administrator requires to provide a meaningful review; and</text> </paragraph><paragraph id="HE0D7C7C8B2CF4DD9B1109DB21BC3C08E"><enum>(2)</enum><text>shall require a response from the Administrator not later than 6 weeks after receiving a request for review under this subsection.</text> </paragraph></subsection></section><section id="H7E252313A81E43EBB5E62C12A0175FC7"><enum>736.</enum><header>Verification of offset projects</header> <subsection id="H9DA313B298B9421990CA6C3BEC5A1694"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">As part of the regulations promulgated under section 732(a), the Administrator shall establish requirements, including protocols, for verification of the quantity of greenhouse gas emission reductions or avoidance, or sequestration of greenhouse gases, resulting from an offset project. The regulations shall require that an offset project developer shall submit a report, prepared by a third-party verifier accredited under subsection (d), providing such information as the Administrator requires to determine the quantity of greenhouse gas emission reductions or avoidance, or sequestration of greenhouse gases, resulting from the offset project.</text> </subsection><subsection id="H06FBA43B4D744819A04333EDE11EF617"><enum>(b)</enum><header>Schedule</header><text>The Administrator shall prescribe a schedule for the submission of verification reports under subsection (a).</text> </subsection><subsection id="HBE15CF7DACCE4F3191298511E8C8A0C3"><enum>(c)</enum><header>Verification report requirements</header><text>The Administrator shall specify the required components of a verification report required under subsection (a), which shall include—</text> <paragraph id="HABDBB3DA84EA457899419146A7162BB0"><enum>(1)</enum><text>the name and contact information for a designated representative for the offset project developer;</text> </paragraph><paragraph id="HC1920CC8BD1349B7A1CE7994E74AEE8D"><enum>(2)</enum><text>the quantity of greenhouse gases reduced, avoided, or sequestered;</text> </paragraph><paragraph id="HD58C76D8FC31444EAC1C1BF601487F0C"><enum>(3)</enum><text>the methodologies applicable to the project pursuant to section 734;</text> </paragraph><paragraph id="HDC8CA48C806740828C15B7A2323A83ED"><enum>(4)</enum><text>a certification that the project meets the applicable requirements;</text> </paragraph><paragraph id="H0B852F1FDEBA450EB1C71675746F1670"><enum>(5)</enum><text>a certification establishing that the conflict of interest requirements in the regulations promulgated under subsection (d)(1) have been complied with; and</text> </paragraph><paragraph id="H09ACB694733C48F88AE5FE111CB62131"><enum>(6)</enum><text>any other information that the Administrator considers to be necessary to achieve the purposes of this part.</text> </paragraph></subsection><subsection id="HA9203EECD0FF4A5CA5637B80B3D03EDE"><enum>(d)</enum><header>Verifier accreditation</header> <paragraph id="H3B985542506A47D6A1A5F7BAC54B3DFF"><enum>(1)</enum><header>In general</header><text>As part of the regulations promulgated under section 732(a), the Administrator shall establish a process and requirements for periodic accreditation of third-party verifiers to ensure that such verifiers are professionally qualified and have no conflicts of interest.</text> </paragraph><paragraph id="H0975AAE4ABBA43A9BADA1798033783EE"><enum>(2)</enum><header>Standards</header> <subparagraph id="H699DCAEE761947D48B99866D331DADA2"><enum>(A)</enum><header>American National Standards Institute accreditation</header><text>The Administrator may accredit, or accept for purposes of accreditation under this subsection, verifiers accredited under the American National Standards Institute (ANSI) accreditation program in accordance with ISO 14065. The Administrator shall accredit, or accept for accreditation, verifiers under this subparagraph only if the Administrator finds that the American National Standards Institute accreditation program provides sufficient assurance that the requirements of this part will be met.</text> </subparagraph><subparagraph id="HC8019EC4C0394C03BAE84D91A8E8A12B"><enum>(B)</enum><header>EPA accreditation</header><text>As part of the regulations promulgated under section 732(a), the Administrator may establish accreditation standards for verifiers under this subsection, and may establish related training and testing programs and requirements.</text> </subparagraph></paragraph><paragraph id="HF6B138FBB55A448B9CDE3ED711167D95"><enum>(3)</enum><header>Public accessibility</header><text>Each verifier meeting the requirements for accreditation in accordance with this subsection shall be listed in a publicly accessible database, which shall be maintained and updated by the Administrator.</text> </paragraph></subsection></section><section id="H4682E56ECB72434FA089B506B550B2CE"><enum>737.</enum><header>Issuance of offset credits</header> <subsection id="HDBF3916FCFC2445FAA39DE39A349D69C"><enum>(a)</enum><header>Determination and notification</header><text>Not later than 90 days after receiving a complete verification report under section 736, the Administrator shall—</text> <paragraph id="HD3888465157E468BA9B0A33616C4EDF7"><enum>(1)</enum><text>make the report publicly available;</text> </paragraph><paragraph id="H6ED8F417CB87439B9B10610F56BE21C9"><enum>(2)</enum><text>make a determination of the quantity of greenhouse gas emissions that have been reduced or avoided, or greenhouse gases that have been sequestered, by the offset project; and</text> </paragraph><paragraph id="HD29CD94556C546D9A26CB26ADDC18692"><enum>(3)</enum><text>notify the offset project developer in writing of such determination and make such determination publicly available.</text> </paragraph></subsection><subsection id="HCAC099E3DB1F4378BDBE941A9B837BCE"><enum>(b)</enum><header>Issuance Of Offset Credits</header><text display-inline="yes-display-inline">The Administrator shall issue one offset credit to an offset project developer for each ton of carbon dioxide equivalent that the Administrator has determined has been reduced, avoided, or sequestered during the period covered by a verification report submitted in accordance with section 736, only if—</text> <paragraph id="HD22D0B168DFA4E6EAE827B1C5BB0DECD"><enum>(1)</enum><text>the Administrator has approved the offset project pursuant to section 735; and</text> </paragraph><paragraph id="H76B2D7AF26D240DFACC07D8ABB9ECEDC"><enum>(2)</enum><text>the relevant emissions reduction, avoidance, or sequestration has—</text> <subparagraph id="H69621DB56B1546AEBA8CD74C7F6F3F73"><enum>(A)</enum><text>already occurred, during the offset project’s crediting period; and</text> </subparagraph><subparagraph id="HC9D934A4E5854658B590EDA51EE87A4C"><enum>(B)</enum><text>occurred after January 1, 2009.</text> </subparagraph></paragraph></subsection><subsection id="H892C4DC173C64F1BB930DC951A287959"><enum>(c)</enum><header>Appeal</header><text>The Administrator shall establish procedures for appeal and review of determinations made under subsection (a).</text> </subsection><subsection id="H0B956A3CA28C4500BF70BF795E403416"><enum>(d)</enum><header>Timing</header><text>Offset credits meeting the criteria established in subsection (b) shall be issued not later than 2 weeks following the verification determination made by the Administrator under subsection (a).</text> </subsection><subsection id="HDCF39129C8E44B4F943CA25860B5356E"><enum>(e)</enum><header>Registration</header><text>The Administrator shall assign a unique serial number to and register each offset credit to be issued in the Offset Registry established under section 732(d).</text> </subsection></section><section id="H6A675683E5F9435B9B12FA2A655B6CBE"><enum>738.</enum><header>Audits</header> <subsection id="H6742FABCCC8A480F85B1714843D165DA"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator shall, on an ongoing basis, conduct random audits of offset projects, offset credits, and practices of third-party verifiers. In each year, the Administrator shall conduct audits, at minimum, for a representative sample of project types and geographic areas.</text> </subsection><subsection id="HBFC789DCF7BF45829A2F539F0CF28A86"><enum>(b)</enum><header>Delegation</header><text display-inline="yes-display-inline">The Administrator may delegate to a State or tribal government the responsibility for conducting audits under this section if the Administrator finds that the program proposed by the State or tribal government provides assurances equivalent to those provided by the auditing program of the Administrator, and that the integrity of the offset program under this part will be maintained. Nothing in this subsection shall prevent the Administrator from conducting any audit the Administrator considers necessary and appropriate.</text> </subsection></section><section id="HF2AE6BADE3E642299E208B1C909BA1D7"><enum>739.</enum><header>Program review and revision</header><text display-inline="no-display-inline">At least once every 5 years, the Administrator shall review and, based on new or updated information and taking into consideration the recommendations of the Advisory Board, update and revise—</text> <paragraph id="H3E77FF711A4B4CA3861B656918E9A90C"><enum>(1)</enum><text>the list of eligible project types established under section 733;</text> </paragraph><paragraph id="H2601FC1B38AC47AF879D75230C09ED1A"><enum>(2)</enum><text>the methodologies established, including specific activity baselines, under section 734(a);</text> </paragraph><paragraph id="H04FA025531694650BA32996343AFE955"><enum>(3)</enum><text>the reversal requirements and mechanisms established or prescribed under section 734(b);</text> </paragraph><paragraph id="HC200D962FB8440B58F4E8EEBF23ED989"><enum>(4)</enum><text>measures to improve the accountability of the offsets program; and</text> </paragraph><paragraph id="H6839C69C5096400A94F7FBC0D06C6620"><enum>(5)</enum><text>any other requirements established under this part to ensure the environmental integrity and effective operation of this part.</text> </paragraph></section><section id="H8DBFB791068F4877A8787E4DCFAE90DF"><enum>740.</enum><header>Early offset supply</header> <subsection id="HD01932D737AB42B79749F0DA87DE0867"><enum>(a)</enum><header>Projects registered under other government-recognized programs</header><text display-inline="yes-display-inline">Except as provided in subsection (b) or (c), the Administrator shall issue one offset credit for each ton of carbon dioxide equivalent emissions reduced, avoided, or sequestered—</text> <paragraph id="H2CAF1A6887934AA38F1993ACF198E6AF"><enum>(1)</enum><text>under an offset project that was started after January 1, 2001;</text> </paragraph><paragraph id="H7F5AEFA203BC4C378FF2487FB252C7C9"><enum>(2)</enum><text>for which a credit was issued under any regulatory or voluntary greenhouse gas emission offset program that the Administrator determines—</text> <subparagraph id="HADE7919121E04AD395BB15DAEF2CAE3E"><enum>(A)</enum><text>was established under State or tribal law or regulation prior to January 1, 2009, or has been approved by the Administrator pursuant to subsection (e);</text> </subparagraph><subparagraph id="HCF2FB3DE1D94474C82C08F5EEDDF0579"><enum>(B)</enum><text display-inline="yes-display-inline">has developed offset project type standards, methodologies, and protocols through a public consultation process or a peer review process;</text> </subparagraph><subparagraph id="HD54AC9A1F16441048C8AF4DDCB6D28CE"><enum>(C)</enum><text>has made available to the public standards, methodologies, and protocols that require that credited emission reductions, avoidance, or sequestration are permanent, additional, verifiable, and enforceable;</text> </subparagraph><subparagraph id="H9AEEC1C155D74A60A2018626246622A0"><enum>(D)</enum><text display-inline="yes-display-inline">requires that all emission reductions, avoidance, or sequestration be verified by a State or tribal regulatory agency or an accredited third-party independent verification body;</text> </subparagraph><subparagraph id="HABA07AEE17E048F481BEDB686110FF6B"><enum>(E)</enum><text display-inline="yes-display-inline">requires that all credits issued are registered in a publicly accessible registry, with individual serial numbers assigned for each ton of carbon dioxide equivalent emission reductions, avoidance, or sequestration; and</text> </subparagraph><subparagraph id="H2429F77C36FE4D7E9E4FFC2D83B0A5C3"><enum>(F)</enum><text display-inline="yes-display-inline">ensures that no credits are issued for an activity if the entity administering the program, or a program administrator or representative, has funded, solicited, or served as a fund administrator for the development of the activity; and</text> </subparagraph></paragraph><paragraph id="HA47B714ACC924155A9E12401A5E26BBE"><enum>(3)</enum><text>for which the credit described in paragraph (2) is transferred to the Administrator.</text> </paragraph></subsection><subsection id="H92BCF9DC66F5401DA6DACE5AEC3A93AE"><enum>(b)</enum><header>Ineligible credits</header><text display-inline="yes-display-inline">Subsection (a) shall not apply to offset credits that have expired or have been retired, canceled, or used for compliance under a program established under State or tribal law or regulation.</text> </subsection><subsection id="HEBB8DAF5E65C490A90CAB3275C47C80E"><enum>(c)</enum><header>Limitation</header><text display-inline="yes-display-inline">Notwithstanding subsection (a)(1), offset credits shall be issued under this section—</text> <paragraph id="HB14335E54D3940FAB3385638EABE6BDA"><enum>(1)</enum><text display-inline="yes-display-inline">only for reductions or avoidance of greenhouse gas emissions, sequestration of greenhouse gases, or destruction of chlorofluorocarbons (subject to the conditions specified in section 619(b)(9) and based on the carbon dioxide equivalent value of the substance destroyed), that occur after January 1, 2009; and</text> </paragraph><paragraph id="H584401F1F7DB44129EE807F10D2FBFD8"><enum>(2)</enum><text>only until the date that is 3 years after the date of enactment of this title, or the date that regulations promulgated under section 732(a) take effect, whichever occurs sooner.</text> </paragraph></subsection><subsection id="HA96DB8D3477E49B0A8831E9AC7AF385F"><enum>(d)</enum><header>Retirement of credits</header><text>The Administrator shall seek to ensure that offset credits described in subsection (a)(2) are retired for purposes of use under a program described in subsection (b).</text> </subsection><subsection id="HE3D90BFFFB9740608A38F8E7BA98624D"><enum>(e)</enum><header>Other programs</header><paragraph commented="no" display-inline="yes-display-inline" id="H8568F7D458994DD3BBBC94121B612346"><enum>(1)</enum><text>Offset programs that either—</text> <subparagraph id="H1BA9DA8CF9FB486C8C8F6B5AA452013E" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">were not established under State or tribal law or regulation; or</text> </subparagraph><subparagraph id="HCECAEE2955894607A75BD1F6D9B5BDE2" indent="up1"><enum>(B)</enum><text>were not established prior to January 1, 2009,</text> </subparagraph></paragraph><continuation-text continuation-text-level="subsection" indent="up1">but that otherwise meet all of the criteria of subsection (a)(2) may apply to the Administrator to be approved under this subsection as an eligible program for early offset credits under this section.</continuation-text><paragraph id="H0BFA6FDC25BF458F90255ED9E1EDEB09" indent="up1"><enum>(2)</enum><text>The Administrator shall approve any such program that the Administrator determines has criteria and methodologies of at least equal stringency to the criteria and methodologies of the programs established under State or tribal law or regulation that the Administrator determines meet the criteria of subsection (a)(2). The Administrator may approve types of offsets under any such program that are subject to criteria and methodologies of at least equal stringency to the criteria and methodologies for such types of offsets applied under the programs established under State or tribal law or regulation that the Administrator determines meet the criteria of subsection (a)(2). The Administrator shall make a determination on any application received under this section by no later than 180 days from the date of receipt of the application.</text> </paragraph></subsection></section><section id="HA77E4EB1923B409C9280CB2CE64B9151"><enum>741.</enum><header>Environmental considerations</header><text display-inline="no-display-inline">If the Administrator lists forestry or other relevant land management-related offset projects as eligible offset project types under section 733, the Administrator, in consultation with appropriate Federal agencies, shall promulgate regulations for the selection and use of species in such offset projects—</text> <paragraph id="H4A66595B94E24717A271FB13B42FEE01"><enum>(1)</enum><text>to ensure that native species are given primary consideration in such projects;</text> </paragraph><paragraph id="HFD0BFF91EF3B448AABE47E8B33C57D5F"><enum>(2)</enum><text>to enhance biological diversity in such projects;</text> </paragraph><paragraph id="H9369DE22521B48A7A1DFB1D5EF302512"><enum>(3)</enum><text>to prohibit the use of federally designated or State-designated noxious weeds;</text> </paragraph><paragraph id="HB49EE076B22F46C4A7E508B3C1626427"><enum>(4)</enum><text>to prohibit the use of a species listed by a regional or State invasive plant authority within the applicable region or State; and</text> </paragraph><paragraph id="H3890720621CC4FC5A331799511013909"><enum>(5)</enum><text>in the case of forestry offset projects, in accordance with widely accepted, environmentally sustainable forestry practices.</text> </paragraph></section><section id="H8076E6F4E1584A96A05D77118E4E2BDD"><enum>742.</enum><header>Trading</header><text display-inline="no-display-inline">Section 724 shall apply to the trading of offset credits.</text> </section><section display-inline="no-display-inline" id="H78C0779BEBF24C969869B469C4E89CEA" section-type="subsequent-section"><enum>743.</enum><header>International offset credits</header> <subsection id="H5F3BC36B1F57443589C19B2D813606EC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, may issue, in accordance with this section, international offset credits based on activities that reduce or avoid greenhouse gas emissions, or increase sequestration of greenhouse gases, in a developing country. Such credits may be issued for projects eligible under section 733 or as provided in subsection (c), (d), or (e) of this section.</text> </subsection><subsection id="H71D813008CBB44F386DAFA30D96C94C2"><enum>(b)</enum><header>Issuance</header> <paragraph id="H29ACE97F8EFF49D58871FEAF950110C8"><enum>(1)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with the Secretary of State, the Administrator of the United States Agency for International Development, and any other appropriate Federal agency, and taking into consideration the recommendations of the Advisory Board, shall promulgate regulations for implementing this section. Except as otherwise provided in this section, the issuance of international offset credits under this section shall be subject to the requirements of this part.</text> </paragraph><paragraph id="HC1DA3D3F3E2C4C50A5EB6B9E99FDEE62"><enum>(2)</enum><header>Requirements for international offset credits</header><text display-inline="yes-display-inline">The Administrator may issue international offset credits only if—</text> <subparagraph id="HEBDA5CB5CA134AED967D3AF470B4A424"><enum>(A)</enum><text>the United States is a party to a bilateral or multilateral agreement or arrangement that includes the country in which the project or measure achieving the relevant greenhouse gas emission reduction or avoidance, or greenhouse gas sequestration, has occurred;</text> </subparagraph><subparagraph id="H7631A853B4C84F559A66AAAA1DBF56AA"><enum>(B)</enum><text>such country is a developing country; and</text> </subparagraph><subparagraph id="HDDC460030C2E4F52B85265E7DF4FE530"><enum>(C)</enum><text>such agreement or arrangement—</text> <clause id="H7CCF2DB3FC1B430B8565EDF381175A40"><enum>(i)</enum><text>ensures that the requirements of this part apply to the issuance of international offset credits under this section; and</text> </clause><clause id="H2CD5FB6150634F37AC9B4FA6BFE335C4"><enum>(ii)</enum><text>provides for the appropriate distribution of international offset credits issued.</text> </clause></subparagraph></paragraph></subsection><subsection id="H4382F279AA9F48FAA2371706EB318A7A"><enum>(c)</enum><header>Sector-based credits</header> <paragraph id="HA55D5158B4A3401E9E3A5BDD4C6BB4FC"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In order to minimize the potential for leakage and to encourage countries to take nationally appropriate mitigation actions to reduce or avoid greenhouse gas emissions, or sequester greenhouse gases, the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall—</text> <subparagraph id="H634B716583DC4BD9859DDF37953F097E"><enum>(A)</enum><text>identify sectors of specific countries with respect to which the issuance of international offset credits on a sectoral basis is appropriate; and</text> </subparagraph><subparagraph id="HF6659AE6EB6142168AA726E0B9DDCB38"><enum>(B)</enum><text>issue international offset credits for such sectors only on a sectoral basis.</text> </subparagraph></paragraph><paragraph id="H406179E8F2B84136A9B1F81267CC7DAA"><enum>(2)</enum><header>Identification of sectors</header> <subparagraph id="H3EB09A7BBE63423EA3CD85E7027E9E76"><enum>(A)</enum><header>General rule</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(A), a sectoral basis shall be appropriate for activities—</text> <clause id="H732CCD23783E4DE28BB375DF2992FEF6"><enum>(i)</enum><text>in countries that have comparatively high greenhouse gas emissions, or comparatively greater levels of economic development; and</text> </clause><clause id="H12498173DDC644E5AE2D894A6421FF82"><enum>(ii)</enum><text>that, if located in the United States, would be within a sector subject to the compliance obligation under section 722.</text> </clause></subparagraph><subparagraph id="H7038B515577B4682A1B947BB97195B1F"><enum>(B)</enum><header>Factors</header><text display-inline="yes-display-inline">In determining the sectors and countries for which international offset credits should be awarded only on a sectoral basis, the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall consider the following factors:</text> <clause id="H6314145E4FEB4EA5AF9FDC0A4A2DC284"><enum>(i)</enum><text>The country’s gross domestic product.</text> </clause><clause id="HA654E05EC59F4272A0E2064BF489FE42"><enum>(ii)</enum><text>The country’s total greenhouse gas emissions.</text> </clause><clause id="H36908B55F8824846908B943A7FB917C3"><enum>(iii)</enum><text>Whether the comparable sector of the United States economy is covered by the compliance obligation under section 722.</text> </clause><clause id="HA82766F7FF11431E819369A450C46F07"><enum>(iv)</enum><text>The heterogeneity or homogeneity of sources within the relevant sector.</text> </clause><clause id="HE9F5CE197BF541B88A73C662F27FF1CD"><enum>(v)</enum><text>Whether the relevant sector provides products or services that are sold in internationally competitive markets.</text> </clause><clause id="HF310EEE623884925899F12C50BEC91FD"><enum>(vi)</enum><text>The risk of leakage if international offset credits were issued on a project-level basis, instead of on a sectoral basis, for activities within the relevant sector.</text> </clause><clause id="HB2F5C5D538F94030AAA3ACD583B36A39"><enum>(vii)</enum><text>The capability of accurately measuring, monitoring, reporting, and verifying the performance of sources across the relevant sector.</text> </clause><clause id="HA3D8884A44664488BAEC10B65F2C9956"><enum>(viii)</enum><text display-inline="yes-display-inline">Such other factors as the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, determines are appropriate to—</text> <subclause id="H03CB2E35F3D842B7BE1F0E8B6A62804C"><enum>(I)</enum><text>ensure the integrity of the United States greenhouse gas emissions cap established under section 703; and</text> </subclause><subclause id="HA052AAE01DFC4A1591BCD92958368669"><enum>(II)</enum><text>encourage countries to take nationally appropriate mitigation actions to reduce or avoid greenhouse gas emissions, or sequester greenhouse gases.</text> </subclause></clause></subparagraph></paragraph><paragraph id="HC7CD881A437E49B7BE6D3CA8949D06F1"><enum>(3)</enum><header>Sectoral basis</header> <subparagraph id="HBD7D10D86B55499298C2A5514C1D1D01"><enum>(A)</enum><header>Definition</header><text display-inline="yes-display-inline">In this subsection, the term <quote>sectoral basis</quote> means the issuance of international offset credits only for the quantity of sector-wide reductions or avoidance of greenhouse gas emissions, or sector-wide increases in sequestration of greenhouse gases, achieved across the relevant sector of the economy relative to a domestically enforceable baseline level of absolute emissions established in an agreement or arrangement described in subsection (b)(2)(A) for the sector.</text> </subparagraph><subparagraph id="H95547D1B8CA5408F89428E7A4E2FF6CB"><enum>(B)</enum><header>Baseline</header><text display-inline="yes-display-inline">The baseline for a sector shall be established on an absolute basis and at levels of greenhouse gas emissions consistent with the thresholds identified in section 705(e)(2) and lower than would occur under a business-as-usual scenario taking into account relevant domestic or international policies or incentives to reduce greenhouse gas emissions, among other factors, and additionality and performance shall be determined on the basis of such baseline.</text> </subparagraph></paragraph></subsection><subsection id="H8A3A604BE7FE47109F88B735304CD476"><enum>(d)</enum><header>Credits issued by an international body</header> <paragraph id="H5ACBF1842AEC4359A0240F67B72EF510"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator, in consultation with the Secretary of State, may issue international offset credits in exchange for instruments in the nature of offset credits that are issued by an international body established pursuant to the United Nations Framework Convention on Climate Change, to a protocol to such Convention, or to a treaty that succeeds such Convention. The Administrator may issue international offset credits under this subsection only if, in addition to the requirements of subsection (b), the Administrator has determined that the international body that issued the instruments has implemented substantive and procedural requirements for the relevant project type that provide equal or greater assurance of the integrity of such instruments as is provided by the requirements of this part. Starting January 1, 2016, the Administrator shall issue no offset credit pursuant to this subsection if the activity generating the greenhouse gas emissions reductions or avoidance, or greenhouse gas sequestration, occurs in a country and sector identified by the Administrator under subsection (c).</text> </paragraph><paragraph id="H8821B705E2C14278A92847D9E49137F5"><enum>(2)</enum><header>Retirement</header><text display-inline="yes-display-inline">The Administrator, in consultation with the Secretary of State, shall seek, by whatever means appropriate, including agreements, arrangements, or technical cooperation with the international issuing body described in paragraph (1), to ensure that such body—</text> <subparagraph id="H025C6FF572B54BF188496CB1A0BDEA4A"><enum>(A)</enum><text>is notified of the Administrator’s issuance, under this subsection, of an international offset credit in exchange for an instrument issued by such international body; and</text> </subparagraph><subparagraph id="HD89B6100CEDB4834AC5C92CBD609784A"><enum>(B)</enum><text>provides, to the extent feasible, for the disqualification of the instrument issued by such international body for subsequent use under any relevant foreign or international greenhouse gas regulatory program, regardless of whether such use is a sale, exchange, or submission to satisfy a compliance obligation.</text> </subparagraph></paragraph></subsection><subsection id="HD358EA1ECB464AA9AE5CC0C28E3F1D96"><enum>(e)</enum><header>Offsets from reduced deforestation</header> <paragraph id="H234F2AF69DE5459392855C100CE4E69D"><enum>(1)</enum><header>Requirements</header><text display-inline="yes-display-inline">The Administrator, in accordance with the regulations promulgated under subsection (b)(1) and an agreement or arrangement described in subsection (b)(2)(A), shall issue international offset credits for greenhouse gas emission reductions achieved through activities to reduce deforestation only if, in addition to the requirements of subsection (b)—</text> <subparagraph id="H352543F5A39A4826B9F881A550671DC9"><enum>(A)</enum><text>the activity occurs in—</text> <clause id="H6683D86FFB11400BB51F1724FA992374"><enum>(i)</enum><text>a country listed by the Administrator pursuant to paragraph (2);</text> </clause><clause id="HE597F0C355CA4B3D9B49F90AD5E38308"><enum>(ii)</enum><text>a state or province listed by the Administrator pursuant to paragraph (5); or</text> </clause><clause id="HD0B106607815440FAEDC99AD9A8141AC"><enum>(iii)</enum><text>a country listed by the Administrator pursuant to paragraph (6);</text> </clause></subparagraph><subparagraph id="H47913FC4350648D7A6EDC8D615230F7B"><enum>(B)</enum><text display-inline="yes-display-inline">except as provided in paragraph (5) or (6), the quantity of the international offset credits is determined by comparing the national emissions from deforestation relative to a national deforestation baseline for that country established, in accordance with an agreement or arrangement described in subsection (b)(2)(A), pursuant to paragraph (4);</text> </subparagraph><subparagraph id="H6B448267A0464AFCB73C8D498E5AAC6C"><enum>(C)</enum><text>the reduction in emissions from deforestation has occurred before the issuance of the international offset credit and, taking into consideration relevant international standards, has been demonstrated using ground-based inventories, remote sensing technology, and other methodologies to ensure that all relevant carbon stocks are accounted;</text> </subparagraph><subparagraph id="H64DC7E2070994928BFDE20177C8D6B5A"><enum>(D)</enum><text display-inline="yes-display-inline">the Administrator has made appropriate adjustments, such as discounting for any additional uncertainty, to account for circumstances specific to the country, including its technical capacity described in paragraph (2)(A);</text> </subparagraph><subparagraph id="H5ADC8D6B35974E659AEEB2505CA74C02"><enum>(E)</enum><text display-inline="yes-display-inline">the activity is designed, carried out, and managed—</text> <clause id="HBBDB34D096D1417597F507329EC9927A"><enum>(i)</enum><text>in accordance with widely accepted, environmentally sustainable forest management practices;</text> </clause><clause id="HFD117FE33AFD4B73983ADFE17A290B6F"><enum>(ii)</enum><text>to promote or restore native forest species and ecosystems where practicable, and to avoid the introduction of invasive nonnative species;</text> </clause><clause id="HAA58C275CCD34B5199C049DD7DB9A530"><enum>(iii)</enum><text display-inline="yes-display-inline">in a manner that gives due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;</text> </clause><clause id="H65B1596EA8D940628A340D781485451C"><enum>(iv)</enum><text display-inline="yes-display-inline">with consultations with, and full participation of, local communities, indigenous peoples, and forest-dependent communities, in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, and monitoring and evaluation of activities; and</text> </clause><clause id="H3447FE395C0E4257AF21834E02006A85"><enum>(v)</enum><text display-inline="yes-display-inline">with equitable sharing of profits and benefits derived from offset credits with local communities, indigenous peoples, and forest-dependent communities; and</text> </clause></subparagraph><subparagraph id="H26251D8DA24244578C35B772E0BC8EF0"><enum>(F)</enum><text>the reduction otherwise satisfies and is consistent with any relevant requirements established by an agreement reached under the auspices of the United Nations Framework Convention on Climate Change.</text> </subparagraph></paragraph><paragraph id="HC42C77E7C3F143638839CBF1C3820322"><enum>(2)</enum><header>Eligible countries</header><text display-inline="yes-display-inline">The Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, and in accordance with an agreement or arrangement described in subsection (b)(2)(A), shall establish, and periodically review and update, a list of the developing countries that have the capacity to participate in deforestation reduction activities at a national level, including—</text> <subparagraph id="HE4A1596A78B5415CBAAD2A5252EF637E"><enum>(A)</enum><text>the technical capacity to monitor, measure, report, and verify forest carbon fluxes for all significant sources of greenhouse gas emissions from deforestation with an acceptable level of uncertainty, as determined taking into account relevant internationally accepted methodologies, such as those established by the Intergovernmental Panel on Climate Change;</text> </subparagraph><subparagraph id="H7AD536F369394B0BBE63E55C07726FAF"><enum>(B)</enum><text>the institutional capacity to reduce emissions from deforestation, including strong forest governance and mechanisms to equitably distribute deforestation resources for local actions; and</text> </subparagraph><subparagraph id="H01D3EC20E7234D718AF1ED4ABA0AC9D8"><enum>(C)</enum><text>a land use or forest sector strategic plan that—</text> <clause id="HAE6A18EF2577416FB04A56427565F4E5"><enum>(i)</enum><text display-inline="yes-display-inline">assesses national and local drivers of deforestation and forest degradation and identifies reforms to national policies needed to address them;</text> </clause><clause id="H557EC350F7E64CA28B74CF4D99E30B5F"><enum>(ii)</enum><text>estimates the country’s emissions from deforestation and forest degradation;</text> </clause><clause id="H1A0BD3BDBCE7482592AB647F4F65D986"><enum>(iii)</enum><text>identifies improvements in data collection, monitoring, and institutional capacity necessary to implement a national deforestation reduction program; and</text> </clause><clause id="H1FE91FB2B6484F2F8F18C06FF54529AB"><enum>(iv)</enum><text>establishes a timeline for implementing the program and transitioning to low-emissions development with respect to emissions from forest and land use activities.</text> </clause></subparagraph></paragraph><paragraph id="HB08769215B154B3C96CBFC32E0517428"><enum>(3)</enum><header>Protection of interests</header><text display-inline="yes-display-inline">With respect to an agreement or arrangement described in subsection (b)(2)(A) that addresses international offset credits under this subsection, the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall seek to ensure the establishment and enforcement by such country of legal regimes, processes, standards, and safeguards that—</text> <subparagraph id="H592FB05A76F248679D930831CE97BDE3"><enum>(A)</enum><text display-inline="yes-display-inline">give due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;</text> </subparagraph><subparagraph id="HA62003E8179C40A7A26962ED9ED2AA7C"><enum>(B)</enum><text>promote consultations with, and full participation of, forest-dependent communities and indigenous peoples in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, and monitoring and evaluation of activities; and</text> </subparagraph><subparagraph id="H858CCE7EEED2411D8441DB53D6F3131A"><enum>(C)</enum><text display-inline="yes-display-inline">encourage equitable sharing of profits and benefits derived from international offset credits with local communities, indigenous peoples, and forest-dependent communities.</text> </subparagraph></paragraph><paragraph id="H3742F78B4D414C4698730251BBFB21DC"><enum>(4)</enum><header>National deforestation baseline</header><text>A national deforestation baseline established under this subsection shall—</text> <subparagraph id="H651AB09F4FB549E38ECE32D7927A773F"><enum>(A)</enum><text>be national in scope;</text> </subparagraph><subparagraph id="H13CF35D0090C4C35BB679ED1DF9F21F8"><enum>(B)</enum><text>be consistent with nationally appropriate mitigation commitments or actions with respect to deforestation, taking into consideration the average annual historical deforestation rates of the country during a period of at least 5 years, the applicable drivers of deforestation, and other factors to ensure additionality;</text> </subparagraph><subparagraph id="HAF5906C14AED41AF900F09E4D50085F5"><enum>(C)</enum><text>establish a trajectory that would result in zero net deforestation by not later than 20 years after the national deforestation baseline has been established;</text> </subparagraph><subparagraph id="HA4C81F74E7114C57BE78403BBFB1E5B9"><enum>(D)</enum><text>be adjusted over time to take account of changing national circumstances;</text> </subparagraph><subparagraph id="H2F9D1861EF37459E8258E9709E8B50EC"><enum>(E)</enum><text>be designed to account for all significant sources of greenhouse gas emissions from deforestation in the country; and</text> </subparagraph><subparagraph id="H431B2FE6EEB04F99BDB36BBB24C9CC94"><enum>(F)</enum><text>be consistent with the national deforestation baseline, if any, established for such country under section 754(d)(1) and (2).</text> </subparagraph></paragraph><paragraph id="H9D4615E5DEA94B3C95E37645BF2CE001"><enum>(5)</enum><header>State-level or province-level activities</header> <subparagraph id="H26AE58AFABF846E9BFF5A6FA0E7F26BD"><enum>(A)</enum><header>Eligible states or provinces</header><text>The Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall establish within 2 years after the date of enactment of this title, and periodically review and update, a list of states or provinces in developing countries where—</text> <clause id="HA43563001FF4440CB94D27AEA343A0BB"><enum>(i)</enum><text>the developing country is not included on the list of countries established pursuant to paragraph (6)(A);</text> </clause><clause id="H42619BB6956540B5ACAECA7A3BE4C6C1"><enum>(ii)</enum><text>the state or province by itself is a major emitter of greenhouse gases from tropical deforestation on a scale commensurate to the emissions of other countries; and</text> </clause><clause id="HC22B6D93B0A5476B9F7BA6FE71618DFF"><enum>(iii)</enum><text>the state or province meets the eligibility criteria in paragraphs (2) and (3) for the geographic area under its jurisdiction.</text> </clause></subparagraph><subparagraph id="HE6E4D73B8BF946658C9F1A03E6F2C8F1"><enum>(B)</enum><header>Activities</header><text>The Administrator may issue international offset credits for greenhouse gas emission reductions achieved through activities to reduce deforestation at a state or provincial level that meet the requirements of this section. Such credits shall be determined by comparing the emissions from deforestation within that state or province relative to the state or province deforestation baseline for that state or province established, in accordance with an agreement or arrangement described in subsection (b)(2)(A), pursuant to subparagraph (C) of this paragraph.</text> </subparagraph><subparagraph id="H930BB11A0C794F198C33DAE2F0CC9C55"><enum>(C)</enum><header>State or province deforestation baseline</header><text>A state or province deforestation baseline shall—</text> <clause id="H6421ABA6D7024F8E9162D7D70820158E"><enum>(i)</enum><text>be consistent with any existing nationally appropriate mitigation commitments or actions for the country in which the activity is occurring, taking into consideration the average annual historical deforestation rates of the state or province during a period of at least 5 years, relevant drivers of deforestation, and other factors to ensure additionality;</text> </clause><clause id="H8FA925FA4EB34297997A4772D417AD57"><enum>(ii)</enum><text>establish a trajectory that would result in zero net deforestation by not later than 20 years after the state or province deforestation baseline has been established; and</text> </clause><clause id="H6A1BBF0207444078B9DC4FFD265435BB"><enum>(iii)</enum><text>be designed to account for all significant sources of greenhouse gas emissions from deforestation in the state or province and adjusted to fully account for emissions leakage outside the state or province.</text> </clause></subparagraph><subparagraph id="HC24D9A4AA09D42909F3E45F3789B4DBF"><enum>(D)</enum><header>Phase out</header><text display-inline="yes-display-inline">Beginning 5 years after the first calendar year for which a covered entity must demonstrate compliance with section 722(a), the Administrator shall issue no further international offset credits for eligible state-level or province-level activities to reduce deforestation pursuant to this paragraph.</text> </subparagraph></paragraph><paragraph id="HC80B69DC6A96413C8164D49BB0CF720F"><enum>(6)</enum><header>Projects and programs to reduce deforestation</header> <subparagraph id="H06827453E27844DCA40C52A2208CB0CA"><enum>(A)</enum><header>Eligible countries</header><text display-inline="yes-display-inline">The Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall establish within 2 years after the date of enactment of this title, and periodically review and update, a list of developing countries each of which—</text> <clause id="HE6A8A2FC3D1745E394B16CD6909F1DD0"><enum>(i)</enum><text>the Administrator determines, based on recent, credible, and reliable emissions data, accounts for less than 1 percent of global greenhouse gas emissions and less than 3 percent of global forest-sector and land use change greenhouse gas emissions; and</text> </clause><clause id="H91E02A617D2A45E1AC9FF4612B2D4460"><enum>(ii)</enum><text>has, or in the determination of the Administrator is making a good faith effort to develop, a land use or forest sector strategic plan that meets the criteria described in paragraph (2)(C).</text> </clause></subparagraph><subparagraph id="H86A23046F64047A989AD7BCF270B9A21"><enum>(B)</enum><header>Activities</header><text>The Administrator may issue international offset credits for greenhouse gas emission reductions achieved through project or program level activities to reduce deforestation in countries listed under subparagraph (A) that meet the requirements of this section. The quantity of international offset credits shall be determined by comparing the project-level or program-level emissions from deforestation to a deforestation baseline for such project or program established pursuant to subparagraph (C).</text> </subparagraph><subparagraph id="H0E5A3FD5F10744A0987437A96DF4B3B9"><enum>(C)</enum><header>Project-level or program-level baseline</header><text display-inline="yes-display-inline">A project-level or program-level deforestation baseline shall—</text> <clause id="H7E31BD24EF9B4487A8629CB416CB8E07"><enum>(i)</enum><text>be consistent with any existing nationally appropriate mitigation commitments or actions for the country in which the project or program is occurring, taking into consideration the average annual historical deforestation rates relevant to the specific project or program during a period of at least 5 years, applicable drivers of deforestation, and other factors to ensure additionality;</text> </clause><clause id="H90CD015E663E4FE799D9E1D8D0B8AA7E"><enum>(ii)</enum><text>be designed to account for all significant sources of greenhouse gas emissions from deforestation in the project or program boundary; and</text> </clause><clause id="H207525ED6D694D6DA83F784D10D4C8FD"><enum>(iii)</enum><text>be adjusted to fully account for emissions leakage outside the project or program boundary.</text> </clause></subparagraph><subparagraph id="H6577F015FF404E9DBEB716EF733AF031"><enum>(D)</enum><header>Phase out</header><clause commented="no" display-inline="yes-display-inline" id="H5221F93F2CC241B5A96E066933F06CCD"><enum>(i)</enum><text>Beginning 5 years after the first calendar year for which a covered entity must demonstrate compliance with section 722(a), the Administrator shall issue no further international offset credits for project-level or program-level activities pursuant to this paragraph, except as provided in clause (ii).</text> </clause><clause id="H902D8E05A05049E6BA3FC05B6DB8DCDC" indent="up1"><enum>(ii)</enum><text>The Administrator may extend the phase out deadline for the issuance of international offset credits under this paragraph by up to 8 years with respect to eligible activities taking place in a least developed country, which for purposes of this paragraph is defined as a foreign country that the United Nations has identified as among the least developed of developing countries at the time that the Administrator determines to provide an extension, if the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, determines the country—</text> <subclause id="HEDA7CC89A63D464D908237FDEC052225"><enum>(I)</enum><text>lacks sufficient capacity to adopt and implement effective programs to achieve reductions in deforestation measured against national baselines;</text> </subclause><subclause id="HBB85886437564342A105FD6A9476BC46"><enum>(II)</enum><text>is receiving support under part E to develop such capacity; and</text> </subclause><subclause id="H9A0B7ECE65C9449E99FBACD73514E1AB"><enum>(III)</enum><text>has developed and is working to implement a credible national strategy or plan to reduce deforestation.</text> </subclause></clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HBF11D91EC01A4EFD90C91B6950ED1863"><enum>(7)</enum><header>Deforestation</header><text>In implementing this subsection, the Administrator, taking into consideration the recommendations of the Advisory Board, may include forest degradation, or soil carbon losses associated with forested wetlands or peatlands, within the meaning of deforestation.</text> </paragraph><paragraph id="H6C25B8FC17DD427BBE45EC8792E658B4"><enum>(8)</enum><header>Consultation</header><text>In implementing this subsection, the Administrator shall consult with the Secretary of Agriculture on relevant matters within such Secretary’s area of expertise.</text> </paragraph></subsection><subsection id="H671EF9746D814EDEB7C608EFACD6B5F1"><enum>(f)</enum><header>Modification of requirements</header><text display-inline="yes-display-inline">In promulgating regulations under subsection (b)(1) with respect to the issuance of international offset credits under subsection (c), (d), or (e), the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, may modify or omit a requirement of this part (excluding the requirements of this section) if the Administrator determines that the application of that requirement to such subsection is not feasible. In modifying or omitting such a requirement on the basis of infeasibility, the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall ensure, with an adequate margin of safety, the integrity of international offset credits issued under this section and of the greenhouse gas emissions cap established pursuant to section 703.</text> </subsection><subsection id="HD3D194595192474C9E77C10469D7CE8A"><enum>(g)</enum><header>Avoiding double counting</header><text display-inline="yes-display-inline">The Administrator, in consultation with the Secretary of State, shall seek, by whatever means appropriate, including agreements, arrangements, or technical cooperation, to ensure that activities on the basis of which international offset credits are issued under this section are not used for compliance with an obligation to reduce or avoid greenhouse gas emissions, or increase greenhouse gas sequestration, under a foreign or international regulatory system. In addition, no international offset credits shall be issued for emission reductions from activities with respect to which emission allowances were allocated under section 781 for distribution under part E.</text> </subsection><subsection id="HD96F39D422DE40369332EC2BEEC15EC9"><enum>(h)</enum><header>Limitation</header><text>The Administrator shall not issue international offset credits generated by projects based on the destruction of hydrofluorocarbons.</text> </subsection></section></part><part id="HE453A8F4BB87450F8727268699B805F4"><enum>E</enum><header>Supplemental Emissions Reductions from Reduced Deforestation</header> <section id="H94B804E53363458FB5CEAB7BB85A7C1E"><enum>751.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text> <paragraph id="HE5AC368663614A36A03BC878CC579B68"><enum>(1)</enum><header>Leakage prevention activities</header><text>The term <quote>leakage prevention activities</quote> means activities in developing countries that are directed at preserving existing forest carbon stocks, including forested wetlands and peatlands, that might, absent such activities, be lost through leakage.</text> </paragraph><paragraph id="HDF41BBC3F73841C580509701EBC52B71"><enum>(2)</enum><header>National deforestation reduction activities</header><text>The term <quote>national deforestation reduction activities</quote> means activities in developing countries that reduce a quantity of greenhouse gas emissions from deforestation that is calculated by measuring actual emissions against a national deforestation baseline established pursuant to section 754(d)(1) and (2).</text> </paragraph><paragraph id="H43D8078E1FB947B0B69A3EEE2CED9C02"><enum>(3)</enum><header>Subnational deforestation reduction activities</header><text>The term <quote>subnational deforestation reduction activities</quote> means activities in developing countries that reduce a quantity of greenhouse gas emissions from deforestation that are calculated by measuring actual emissions using an appropriate baseline established by the Administrator that is less than national in scope.</text> </paragraph><paragraph id="HD2F03241239E4DCDBCD362F86C2204D3"><enum>(4)</enum><header>Supplemental emissions reductions</header><text>The term <quote>supplemental emissions reductions</quote> means greenhouse gas emissions reductions achieved from reduced or avoided deforestation under this part.</text> </paragraph><paragraph id="H1BD2CE095D2B4A2BA9C6FFD3829EABF9"><enum>(5)</enum><header>USAID</header><text>The term <quote>USAID</quote> means the United States Agency for International Development.</text> </paragraph></section><section id="H9F81B8F6DD054378AD9B559703999557"><enum>752.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text> <paragraph id="H5D62CBFCDDE7471A8B2943F84BBA668D"><enum>(1)</enum><text>as part of a global effort to mitigate climate change, it is in the national interest of the United States to assist developing countries to reduce and ultimately halt emissions from deforestation;</text> </paragraph><paragraph id="H0E85B125B4B44C26A821188CC3945D3D"><enum>(2)</enum><text>deforestation is one of the largest sources of greenhouse gas emissions in developing countries, amounting to roughly 20 percent of overall emissions globally;</text> </paragraph><paragraph id="H88381C0051A2448FB1A949E24ADA64CF"><enum>(3)</enum><text>recent scientific analysis shows that it will be substantially more difficult to limit the increase in global temperatures to less than 2 degrees centigrade above preindustrial levels without reducing and ultimately halting net emissions from deforestation;</text> </paragraph><paragraph id="HF347640731694250990013B57A770288"><enum>(4)</enum><text>reducing emissions from deforestation is highly cost-effective, compared to many other sources of emissions reductions;</text> </paragraph><paragraph id="HAF3373AD03A9451AAFCB5FA50AA034CE"><enum>(5)</enum><text>in addition to contributing significantly to worldwide efforts to address global warming, assistance under this part will generate significant environmental and social cobenefits, including protection of biodiversity, ecosystem services, and forest-related livelihoods; and</text> </paragraph><paragraph id="HD5E2B1E8FD11453E83ED4DE4BA573DF8"><enum>(6)</enum><text>under the Bali Action Plan, developed country parties to the United Nations Framework Convention on Climate Change, including the United States, committed to <quote>enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation,</quote> including, inter alia, consideration of <quote>improved access to adequate, predictable, and sustainable financial resources and financial and technical support, and the provision of new and additional resources, including official and concessional funding for developing country parties</quote> .</text> </paragraph></section><section id="H22F0076274A54FD2B1BC83CD9732BD53"><enum>753.</enum><header>Supplemental emissions reductions through reduced deforestation</header> <subsection id="H38D5E40D61DA4B5B844F32718897E0FB"><enum>(a)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with the Administrator of USAID and any other appropriate agencies, shall promulgate regulations establishing a program to use emission allowances set aside for this purpose under section 781 to reduce greenhouse gas emissions from deforestation in developing countries in accordance with the requirements of this part.</text> </subsection><subsection id="H8DB99855F28A414BB94BDFA622879C16"><enum>(b)</enum><header>Objectives</header><text>The objectives of the program established under this section shall be to—</text> <paragraph id="H256F5C9997614D6BA60261BFB935D322"><enum>(1)</enum><text>achieve supplemental emissions reductions of at least 720,000,000 tons of carbon dioxide equivalent in 2020, a cumulative amount of at least 6,000,000,000 tons of carbon dioxide equivalent by December 31, 2025, and additional supplemental emissions reductions in subsequent years;</text> </paragraph><paragraph id="H3EE81F28AF0C4C5996697A8EBDF0061C"><enum>(2)</enum><text>build capacity to reduce deforestation in developing countries experiencing deforestation, including preparing developing countries to participate in international markets for international offset credits for reduced emissions from deforestation; and</text> </paragraph><paragraph id="H486CD75E4BD1449496CF0FF589B7F71E"><enum>(3)</enum><text>preserve existing forest carbon stocks in countries where such forest carbon may be vulnerable to international leakage, particularly in developing countries with largely intact native forests.</text> </paragraph></subsection></section><section id="H0979AD598ACD45B5925F97558DC631C6"><enum>754.</enum><header>Requirements for international deforestation reduction program</header> <subsection id="HEA38E249DA634A3D8394FE363EFD2BFD"><enum>(a)</enum><header>Eligible countries</header><text>The Administrator may support activities under this part only with respect to a developing country that—</text> <paragraph id="H29A79BCC87004E4BADA7DB9A40D4126C"><enum>(1)</enum><text>the Administrator, in consultation with the Administrator of USAID, determines is experiencing deforestation or forest degradation or has standing forest carbon stocks that may be at risk of deforestation or degradation; and</text> </paragraph><paragraph id="H205DD17AD8E242FB85203F28D28A1A27"><enum>(2)</enum><text>has entered into a bilateral or multilateral agreement or arrangement with the United States establishing the conditions of its participation in the program established under this part, which shall include an agreement to meet the standards established under subsection (d) for the activities to which those standards apply.</text> </paragraph></subsection><subsection id="H3838E24F25634128ABF754FB4843D7CF"><enum>(b)</enum><header>Activities</header> <paragraph display-inline="no-display-inline" id="HD412880DDEAC4BE2967BD89D902CC39D"><enum>(1)</enum><header>Authorized activities</header><text>Subject to the requirements of this part, the Administrator, in consultation with the Administrator of USAID, may support activities to achieve the objectives identified in section 753(b), including—</text> <subparagraph id="HF39B1881F2974719A83D31BDE77CFE2D"><enum>(A)</enum><text>national deforestation reduction activities;</text> </subparagraph><subparagraph id="HF5619716215743148C920691DDE44000"><enum>(B)</enum><text>subnational deforestation reduction activities, including pilot activities that reduce greenhouse gas emissions but are subject to significant uncertainty;</text> </subparagraph><subparagraph id="HFBE5E55897F44421A1B91E9A20E5FC46"><enum>(C)</enum><text>activities to measure, monitor, and verify deforestation, avoided deforestation, and deforestation rates;</text> </subparagraph><subparagraph id="HBA469AF07BA54812B8D66366B47AB456"><enum>(D)</enum><text>leakage prevention activities;</text> </subparagraph><subparagraph id="HCD7895FFBC5A42FCB27F9B12EECE9DC9"><enum>(E)</enum><text>development of measurement, monitoring, and verification capacities to enable a country to quantify supplemental emissions reductions and to generate for sale offset credits from reduced or avoided deforestation;</text> </subparagraph><subparagraph id="H9BACB5B7C41E46CA848310C661EB5596"><enum>(F)</enum><text>development of governance structures to reduce deforestation and illegal logging;</text> </subparagraph><subparagraph id="H1EF16959EE21411EBFF1A2D770454518"><enum>(G)</enum><text>enforcement of requirements for reduced deforestation or forest conservation;</text> </subparagraph><subparagraph id="HD3D17C323B394648B2110628DE471EA6"><enum>(H)</enum><text>efforts to combat illegal logging and increase enforcement cooperation;</text> </subparagraph><subparagraph id="H4186399335EE480D87933489715FE24C"><enum>(I)</enum><text>providing incentives for policy reforms to achieve the objectives identified in section 753(b); and</text> </subparagraph><subparagraph id="H50A46347A65E4DA68156FE6E554A2E61"><enum>(J)</enum><text>monitoring and evaluation of the results of the activities conducted under this section.</text> </subparagraph></paragraph><paragraph id="HCDAF52930ED747398635595BA5A17071"><enum>(2)</enum><header>Activities selected by USAID</header> <subparagraph id="HBCC33AA466224B138221212C1557AF8F"><enum>(A)</enum><text>The Administrator of USAID, in consultation with the Administrator, may select for support and implementation pursuant to subsection (c) any of the activities described in paragraph (1), consistent with this part and the regulations promulgated under subsection (d), and subject to the requirement to achieve the objectives listed in section 753(b)(1).</text> </subparagraph><subparagraph id="H18F3E66DB4494D63B7134402A90110FD"><enum>(B)</enum><text>With respect to the activities listed in subparagraphs (D) through (J) of paragraph (1), the Administrator of USAID, in consultation with the Administrator, shall have primary but not exclusive responsibility for selecting the activities to be supported and implemented.</text> </subparagraph></paragraph><paragraph id="HBF3BC3817AF545568B8B24910890BDE3"><enum>(3)</enum><header>Interagency coordination</header><text>The Administrator and the Administrator of USAID shall jointly develop and biennially update a strategic plan for meeting the objectives listed in section 753(b) and shall execute a memorandum of understanding delineating the agencies’ respective roles in implementing this part.</text> </paragraph></subsection><subsection id="HCD7DF87EEFCD4B1A93DA5C4E9672CA6B"><enum>(c)</enum><header>Mechanisms</header> <paragraph id="H5E2DA5872E554657BC235CD8B6A7DD25"><enum>(1)</enum><header>In general</header><text>The Administrator may support activities to achieve the objectives identified in section 753(b) by—</text> <subparagraph id="H1BEE4002EE46402087F93EBBB6C89F3C"><enum>(A)</enum><text>developing and implementing programs and projects that achieve such objectives; and</text> </subparagraph><subparagraph id="HB6D2DA8084774120B1BEC050BDB0ABC1"><enum>(B)</enum><text>distributing emission allowances to a country that is eligible under subsection (a), to a private or public group (including international organizations), or to an international fund established by an international agreement to which the United States is a party, to carry out activities to achieve such objectives.</text> </subparagraph></paragraph><paragraph id="HA1972057E1524E1AAAEB690A17F9EEF8"><enum>(2)</enum><header>USAID activities</header><text>With respect to activities selected and implemented by the Administrator of USAID pursuant to subsection (b)(2), the Administrator shall distribute emission allowances as provided in paragraph (1) of this subsection based upon the direction of the Administrator of USAID, subject to the availability of allowances for such activities.</text> </paragraph><paragraph id="HD9A1AD834E28467F8B1AF20B6ABCA831"><enum>(3)</enum><header>Implementation through international organizations</header><text>If support is distributed through an international organization, the agency responsible for selecting activities in accordance with subsection (b)(1) or (2), in consultation with the Secretary of State, shall ensure the establishment and implementation of adequate mechanisms to apply and enforce the eligibility requirements and other requirements of this section.</text> </paragraph><paragraph id="H17665F74283F4B509F366E8FFD84CEA2"><enum>(4)</enum><header>Role of the secretary of state</header><text>The Administrator may not distribute emission allowances under this part to the government of another country or to an international organization or international fund unless the Secretary of State has concurred with such distribution.</text> </paragraph></subsection><subsection id="H8AF92150D6794EF0A3D207FC9D331790"><enum>(d)</enum><header>Standards</header><text>The Administrator, in consultation with the Administrator of USAID, shall promulgate regulations establishing standards to ensure that supplemental emissions reductions achieved through supported activities are additional, measurable, verifiable, permanent, and monitored, and account for leakage and uncertainty. In addition, such standards shall—</text> <paragraph id="H3230CE65B7BF4E62AA9510379EB5E797"><enum>(1)</enum><text>require the establishment of a national deforestation baseline for each country with national deforestation reduction activities that is used to account for reductions achieved from such activities;</text> </paragraph><paragraph id="H7B1B96E7316546908A409CBBAAB37BA7"><enum>(2)</enum><text>provide that a national deforestation baseline established under paragraph (1) shall—</text> <subparagraph id="H60B9895542F840EBB568EAF15B1F62DB"><enum>(A)</enum><text>be national in scope;</text> </subparagraph><subparagraph id="HA96EE13E76634A159184369DBFDCA721"><enum>(B)</enum><text>be consistent with nationally appropriate mitigation commitments or actions with respect to deforestation, taking into consideration the average annual historical deforestation rates of the country during a period of at least 5 years, the applicable drivers of deforestation, and other factors to ensure additionality;</text> </subparagraph><subparagraph id="HD0334782754D400883AEF307EFCB4BD6"><enum>(C)</enum><text>establish a trajectory that would result in zero net deforestation by not later than 20 years from the date the baseline is established;</text> </subparagraph><subparagraph id="H4E88A30F38674C0BA4DED4D8FEE821BB"><enum>(D)</enum><text>be adjusted over time to take account of changing national circumstances;</text> </subparagraph><subparagraph id="H6C2C587556D645DD9C052298725276B5"><enum>(E)</enum><text>be designed to account for all significant sources of greenhouse gas emissions from deforestation in the country; and</text> </subparagraph><subparagraph id="H09F90DE35E52486F88132C4354A78C0D"><enum>(F)</enum><text>be consistent with the national deforestation baseline, if any, established for such country under section 743(e)(4);</text> </subparagraph></paragraph><paragraph id="H38BFEFCADA30452D990030EC9765F68C"><enum>(3)</enum><text>with respect to support provided pursuant to subsection (b)(1)(A) or (B), require supplemental emissions reductions to be achieved and verified prior to compensation through the distribution of emission allowances under this part;</text> </paragraph><paragraph id="H2333BFDF5FB54EF8BBB1E8052CE73FF9"><enum>(4)</enum><text>with respect to accounting for subnational deforestation reduction activities that lack the standardized or precise measurement and monitoring techniques needed for a full accounting of changes in emissions or baselines, or are subject to other sources of uncertainty, apply a conservative discount factor to reflect the uncertainty regarding the levels of reductions achieved;</text> </paragraph><paragraph id="H0A4F079053294BADA198B6058A1BAB53"><enum>(5)</enum><text>ensure that activities under this part shall be designed, carried out, and managed—</text> <subparagraph id="H6EE59A5F13074B209DB59A0AA7AC122E"><enum>(A)</enum><text>in accordance with widely accepted, environmentally sustainable forest management practices;</text> </subparagraph><subparagraph id="HF0964ACB87C145288043313CA4CA0667"><enum>(B)</enum><text>to promote or restore native forest species and ecosystems where practicable, and to avoid the introduction of invasive nonnative species;</text> </subparagraph><subparagraph id="H9227B884FF0A4FD2A1C20AE5F661B8AA"><enum>(C)</enum><text>in a manner that gives due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;</text> </subparagraph><subparagraph id="H28AF744613674291B45B58B0C496CA93"><enum>(D)</enum><text>with consultations with, and full participation of, local communities, indigenous peoples, and forest-dependent communities in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, and monitoring and evaluation of activities; and</text> </subparagraph><subparagraph id="H004EC0E321A04723A673AA7F4D1F447C"><enum>(E)</enum><text>with equitable sharing of profits and benefits derived from the activities with local communities, indigenous peoples, and forest-dependent communities; and</text> </subparagraph></paragraph><paragraph id="H0EAF26CD4876414CA8E61E9FF2992064"><enum>(6)</enum><text>with respect to support for all activities under this part, seek to ensure the establishment and enforcement, by the country in which the activities occur, of legal regimes, standards, processes, and safeguards that—</text> <subparagraph id="H482E989A45944F3BA1016440A0E1AA8F"><enum>(A)</enum><text>give due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;</text> </subparagraph><subparagraph id="H0DF1284F59134F6FB2EF49FAA780C511"><enum>(B)</enum><text>promote consultations with local communities and indigenous peoples and forest-dependent communities in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, monitoring, and evaluation of activities under this part; and</text> </subparagraph><subparagraph id="H65C7FE758FDD460AAC73BE549C357235"><enum>(C)</enum><text>encourage equitable sharing of profits and benefits from incentives for emissions reductions or leakage prevention with local communities, indigenous peoples, and forest-dependent communities.</text> </subparagraph></paragraph></subsection><subsection id="H8BBFB77711F54EE9B379A8E4F4487FCA"><enum>(e)</enum><header>Scope</header><paragraph commented="no" display-inline="yes-display-inline" id="HC3753E6C0F694E61B526D89B2D3F5CA6"><enum>(1)</enum><text>The Administrator shall include within the scope of activities under this part reduced emissions from forest degradation.</text> </paragraph><paragraph id="HE8D569E150C64FADBDB0F253B8EA975B" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Administrator, in consultation with the Administrator of USAID, may decide, taking into account any advice from the Advisory Board, to expand, where appropriate, the scope of activities under this part to include reduced soil carbon-derived emissions associated with deforestation and degradation of forested wetlands and peatlands.</text> </paragraph></subsection><subsection id="H196BC877C5124CDE8AE72444C06F7250"><enum>(f)</enum><header>Accounting</header><text>The Administrator shall establish a publicly accessible registry of the supplemental emissions reductions achieved through support provided under this part each year, after appropriately discounting for uncertainty and other relevant factors as required by the standards established under subsection (d).</text> </subsection><subsection id="H529BF367A29B4D8DBAD3F544AFC156D6"><enum>(g)</enum><header>Transition to national reductions</header><text>Beginning 5 years after the date that a country entered into the agreement or arrangement required under subsection (a)(2), the Administrator shall provide no further compensation through emission allowances to that country under this part for any subnational deforestation reduction activities, except that the Administrator may extend this period by an additional 5 years if the Administrator, in consultation with the Administrator of USAID, determines that—</text> <paragraph id="H1E297F18415A492B84BDED43743EB091"><enum>(1)</enum><text>the country is making substantial progress towards adopting and implementing a program to achieve reductions in deforestation measured against a national baseline;</text> </paragraph><paragraph id="H6D8E0F717D024C81B875A1947ED11E6A"><enum>(2)</enum><text>the greenhouse gas emissions reductions achieved are not resulting in significant leakage; and</text> </paragraph><paragraph id="HE903CB1B499049EB9C738B7BCE743849"><enum>(3)</enum><text>the greenhouse gas emissions reductions achieved are being appropriately discounted to account for any leakage that is occurring.</text> </paragraph><continuation-text continuation-text-level="subsection">The limitation under this subsection shall not apply to support for activities to further the objectives listed in section 753(b)(2) or (3).</continuation-text></subsection><subsection id="H800BC233E23B4298BF3B0A0A67AAB5DB"><enum>(h)</enum><header>Coordination with U.S. foreign assistance</header><text>Subject to the direction of the President, the Administrator and the Administrator of USAID shall, to the extent practicable and consistent with the objectives of this program, seek to align activities under this section with broader development, poverty alleviation, or natural resource management objectives and initiatives in the recipient country.</text> </subsection><subsection id="H5058D4D6C77A469C8846E11985E1CCAD"><enum>(i)</enum><header>Support as supplement</header><text display-inline="yes-display-inline">The provision of support for activities under this part shall be used to supplement, and not to supplant, any other Federal, State, or local support available to carry out such qualifying activities under this part.</text> </subsection><subsection id="HDDCE6641D7DD4D80B5C74B636A0B56D5"><enum>(j)</enum><header>Not eligible for offset credit</header><text>Activities that receive support under this part shall not be issued offset credits for the greenhouse gas emissions reductions or avoidance, or greenhouse gas sequestration, produced by such activities.</text> </subsection></section><section id="HBDB3417341BD4BE38FCC6ED90702A789"><enum>755.</enum><header>Reports and reviews</header> <subsection id="HFFA4D114DFDF48349E3B61720BE73D8B"><enum>(a)</enum><header>Reports</header><text>Not later than January 1, 2014, and annually thereafter, the Administrator and the Administrator of USAID shall submit to the Committee on Energy and Commerce and the Committee on Foreign Affairs of the House of Representatives, and the Committee on Environment and Public Works and the Committee on Foreign Relations of the Senate, and make available to the public, a report on the support provided under this part during the prior fiscal year. The report shall include—</text> <paragraph id="HA18872D24DD54E91886F19DAAF1B0A82"><enum>(1)</enum><text>a statement of the quantity of supplemental emissions reductions for which compensation in the form of emission allowances was provided under this part during the prior fiscal year, as registered by the Administrator under section 754(f); and</text> </paragraph><paragraph id="H700DDB0D35DA4D8CAF8CB1E44DC6EA42"><enum>(2)</enum><text>a description of the national and subnational deforestation reduction activities, capacity-building activities, and leakage prevention activities supported under this part, including a statement of the quantity of emission allowances distributed to each recipient for each activity during the prior fiscal year, and a description of what was accomplished through each of the activities.</text> </paragraph></subsection><subsection id="H4C139AD03D5B4723B1B088B487CCD680"><enum>(b)</enum><header>Reviews</header><text>Not later than 4 years after the date of enactment of this title and every 5 years thereafter, the Administrator and the Administrator of USAID, taking into consideration any evaluation by or recommendations from the Advisory Board established under section 731, shall conduct a review of the activities undertaken pursuant to this part and make any appropriate changes in the program established under this part, consistent with the requirements of this part, based on the findings of the review. The review shall include the effects of the activities on—</text> <paragraph id="H214F6E2A28A14C59AB8244CE8C88C953"><enum>(1)</enum><text>total documented carbon stocks of each country that directly or indirectly received support under this part compared with such country’s national deforestation baseline established under section 754(d)(1) and (2);</text> </paragraph><paragraph id="H2D49AF3AB55E4DB5908E1B39A4929048"><enum>(2)</enum><text>the number of countries with the capacity to generate for sale instruments in the nature of offset credits from forest-related activities, and the amount of such activities;</text> </paragraph><paragraph id="HC622A9A1F73C48B5A1704AD78C748ACC"><enum>(3)</enum><text>forest governance in each country that directly or indirectly received support under this part;</text> </paragraph><paragraph id="HF20B45DC297B4D67AE23B2C85416B69F"><enum>(4)</enum><text>indigenous peoples and forest-dependent communities residing in areas affected by such activities;</text> </paragraph><paragraph id="H71AE4FEC7C7242DE856DAB7099F1C242"><enum>(5)</enum><text>biodiversity and ecosystem services within forested areas associated with the activities;</text> </paragraph><paragraph id="H05F5EA6F1DE94EE190A0E8AC776F63AD"><enum>(6)</enum><text>subnational and international leakage; and</text> </paragraph><paragraph id="H0C8542048D3345AD8FEFBB2654937559"><enum>(7)</enum><text>any program or mechanism established under the United Nations Framework Convention on Climate Change related to greenhouse gas emissions from deforestation.</text> </paragraph></subsection></section><section id="H4022E2D39DF949559E9A10CA373A69D9"><enum>756.</enum><header>Legal effect of part</header> <paragraph id="H23577B974CFC4FB3BE12F455656DA9DF"><enum>(1)</enum><header>In general</header><text>Nothing in this part supersedes, limits, or otherwise affects any restriction imposed by Federal law (including regulations) on any interaction between an entity located in the United States and an entity located in a foreign country.</text> </paragraph><paragraph id="H0461611C5F0547ABB86989E550B0E367"><enum>(2)</enum><header>Role of the secretary of state</header><text>Nothing in this part shall be construed as affecting the role of the Secretary of State or the responsibilities of the Secretary under section 622(c) of the Foreign Assistance Act of 1961.</text> </paragraph></section></part>

312.

Definitions

Title VII of the Clean Air Act, as added by section 311 of this Act, is amended by inserting before part A the following new section:

700.

Definitions

In this title: (1)

Additional

The term additional, when used with respect to reductions or avoidance of greenhouse gas emissions, or to sequestration of greenhouse gases, means reductions, avoidance, or sequestration that result in a lower level of net greenhouse gas emissions or atmospheric concentrations than would occur in the absence of an offset project. (2)

Additionality

The term additionality means the extent to which reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, are additional. (3)

Advisory board

The term Advisory Board means the Offsets Integrity Advisory Board established under section 731. (4)

Affiliated

The term affiliated— (A)when used in relation to an entity means owned or controlled by, or under common ownership or control with, another entity, as determined by the Administrator; and (B)when used in relation to a natural gas local distribution company, means owned or controlled by, or under common ownership or control with, another natural gas local distribution company, as determined by the Administrator. (5)

Allowance

The term allowance means a limited authorization to emit, or have attributable greenhouse gas emissions in an amount of, 1 ton of carbon dioxide equivalent of a greenhouse gas in accordance with this title. Such term includes an emission allowance, a compensatory allowance, and an international emission allowance, but does not include an international reserve allowance established under section 766. (6)

Attributable greenhouse gas emissions

The term attributable greenhouse gas emissions, for a given calendar year, means— (A)for a covered entity that is a fuel producer or importer described in paragraph (13)(B), greenhouse gases that would be emitted from the combustion of any petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, produced or imported by that covered entity during that calendar year for sale or distribution in interstate commerce, assuming no capture and sequestration of any greenhouse gas emissions; (B)for a covered entity that is an industrial gas producer or importer described in paragraph (13)(C), the tons of carbon dioxide equivalent of any gas described in clauses (i) through (vi) of paragraph (13)(C)— (i)produced or imported by such covered entity during that calendar year for sale or distribution in interstate commerce; or (ii)released as fugitive emissions in the production of fluorinated gas; and (C)for a natural gas local distribution company described in paragraph (13)(J), greenhouse gases that would be emitted from the combustion of the natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, that such entity delivered during that calendar year to customers that are not covered entities, assuming no capture and sequestration of that greenhouse gas. (7)

Biological sequestration; biologically sequestered

The terms biological sequestration and biologically sequestered mean the removal of greenhouse gases from the atmosphere by terrestrial biological means, such as by growing plants, and the storage of those greenhouse gases in plants or soils. (8)

Capped emissions

The term capped emissions means greenhouse gas emissions to which section 722 applies, including emissions from the combustion of natural gas, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid to which section 722(b)(2) or (8) applies. (9)

Capped source

The term capped source means a source that directly emits capped emissions. (10)

Carbon dioxide equivalent

The term carbon dioxide equivalent means the unit of measure, expressed in metric tons, of greenhouse gases as provided under section 711 or 712. (11)

Carbon stock

The term carbon stock means the quantity of carbon contained in a biological reservoir or system which has the capacity to accumulate or release carbon. (12)

Compensatory allowance

The term compensatory allowance means an allowance issued under section 721(f). (13)

Covered entity

The term covered entity means each of the following: (A)Any electricity source. (B)Any stationary source that produces, and any entity that (or any group of two or more affiliated entities that, in the aggregate) imports, for sale or distribution in interstate commerce in 2008 or any subsequent year, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, the combustion of which would emit 25,000 or more tons of carbon dioxide equivalent, as determined by the Administrator. (C)Any stationary source that produces, and any entity that (or any group of two or more affiliated entities that, in the aggregate) imports, for sale or distribution in interstate commerce, in bulk, or in products designated by the Administrator, in 2008 or any subsequent year 25,000 or more tons of carbon dioxide equivalent of— (i)fossil fuel-based carbon dioxide; (ii)nitrous oxide; (iii)perfluorocarbons; (iv)sulfur hexafluoride; (v)any other fluorinated gas, except for nitrogen trifluoride, that is a greenhouse gas, as designated by the Administrator under section 711; or (vi)any combination of greenhouse gases described in clauses (i) through (v). (D)Any stationary source that has emitted 25,000 or more tons of carbon dioxide equivalent of nitrogen trifluoride in 2008 or any subsequent year. (E)Any geologic sequestration site. (F)Any stationary source in the following industrial sectors: (i)Adipic acid production. (ii)Primary aluminum production. (iii)Ammonia manufacturing. (iv)Cement production, excluding grinding-only operations. (v)Hydrochlorofluorocarbon production. (vi)Lime manufacturing. (vii)Nitric acid production. (viii)Petroleum refining. (ix)Phosphoric acid production. (x)Silicon carbide production. (xi)Soda ash production. (xii)Titanium dioxide production. (xiii)Coal-based liquid or gaseous fuel production. (G)Any stationary source in the chemical or petrochemical sector that, in 2008 or any subsequent year— (i)produces acrylonitrile, carbon black, ethylene, ethylene dichloride, ethylene oxide, or methanol; or (ii)produces a chemical or petrochemical product if producing that product results in annual combustion plus process emissions of 25,000 or more tons of carbon dioxide equivalent. (H)Any stationary source that— (i)is in one of the following industrial sectors: ethanol production; ferroalloy production; fluorinated gas production; food processing; glass production; hydrogen production; iron and steel production; lead production; pulp and paper manufacturing; and zinc production; and (ii)has emitted 25,000 or more tons of carbon dioxide equivalent in 2008 or any subsequent year. (I)Any fossil fuel-fired combustion device (such as a boiler) or grouping of such devices that— (i)is all or part of an industrial source not specified in subparagraph (D), (F), (G), or (H); and (ii)has emitted 25,000 or more tons of carbon dioxide equivalent in 2008 or any subsequent year. (J)Any natural gas local distribution company that (or any group of 2 or more affiliated natural gas local distribution companies that, in the aggregate), in 2008 or any subsequent year, delivers 460,000,000 cubic feet or more of natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, to customers that are not covered entities. (14)

Crediting period

The term crediting period means the period with respect to which an offset project is eligible to earn offset credits under part D, as determined under section 734(c). (15)

Designated representative

The term designated representative means, with respect to a covered entity, a reporting entity (as defined in section 713), an offset project developer, or any other entity receiving or holding allowances, offset credits, or term offset credits under this title, an individual authorized, through a certificate of representation submitted to the Administrator by the owners and operators or similar entity official, to represent the owners and operators or similar entity official in all matters pertaining to this title (including the holding, transfer, or disposition of allowances or offset credits), and to make all submissions to the Administrator under this title. (16)

Developing country

The term developing country means a country eligible to receive official development assistance according to the income guidelines of the Development Assistance Committee of the Organization for Economic Cooperation and Development. (17)

Domestic offset credit

For purposes of part D, the term domestic offset credit means an offset credit issued under part D, other than an international offset credit. For purposes of part C, the term means any offset credit issued under the American Clean Energy and Security Act of 2009, or the amendments made thereby. The term does not include a term offset credit. (18)

Electricity source

The term electricity source means a stationary source that includes one or more utility units. (19)

Emission

The term emission means the release of a greenhouse gas into the ambient air. Such term does not include gases that are captured and geologically sequestered, except to the extent that they are later released into the atmosphere, in which case compliance must be demonstrated pursuant to section 722(b)(5). (20)

Emission allowance

The term emission allowance means an allowance established under section 721(a) or section 726(g)(2) or (h)(1)(C). (21)

Fair market value

The term fair market value means the average daily closing price on registered exchanges or, if such a price is unavailable, the average price as determined by the Administrator, during a specified time period, of an emission allowance. (22)

Federal land

The term Federal land means land that is owned by the United States, other than land held in trust for an Indian or Indian tribe. (23)

Fossil fuel

The term fossil fuel means natural gas, petroleum, or coal, or any form of solid, liquid, or gaseous fuel derived from such material, including consumer products that are derived from such materials and are combusted. (24)

Fossil fuel-fired

The term fossil fuel-fired means powered by combustion of fossil fuel, alone or in combination with any other fuel, regardless of the percentage of fossil fuel consumed. (25)

Fugitive emissions

The term fugitive emissions means emissions from leaks, valves, joints, or other small openings in pipes, ducts, or other equipment, or from vents. (26)

Geologic sequestration; geologically sequestered

The terms geologic sequestration and geologically sequestered mean the sequestration of greenhouse gases in subsurface geologic formations for purposes of permanent storage. (27)

Geologic sequestration site

The term geologic sequestration site means a site where carbon dioxide is geologically sequestered. (28)

Greenhouse gas

The term greenhouse gas means any gas described in section 711(a) or designated under section 711, except to the extent that it is regulated under title VI. (29)

Hold

The term hold means, with respect to an allowance, offset credit, or term offset credit, to have in the appropriate account in the allowance tracking system established under section 724(d), or submit to the Administrator for recording in such account. (30)

Industrial source

The term industrial source means any stationary source that— (A)is not an electricity source; and (B)is in— (i)the manufacturing sector (as defined in North American Industrial Classification System codes 31, 32, and 33); or (ii)the natural gas processing or natural gas pipeline transportation sector (as defined in North American Industrial Classification System codes 211112 and 486210). (31)

International emission allowance

The term international emission allowance means a tradable authorization to emit 1 ton of carbon dioxide equivalent of greenhouse gas that is issued by a national or supranational foreign government pursuant to a qualifying international program designated by the Administrator pursuant to section 728(a). (32)

International offset credit

The term international offset credit means an offset credit issued by the Administrator under section 743. (33)

Leakage

Except as provided in part F, the term leakage means a significant increase in greenhouse gas emissions, or significant decrease in sequestration, which is caused by an offset project or activities under part E and occurs outside the boundaries of the offset project or the relevant program or project under part E. (34)

Mineral sequestration

The term mineral sequestration means sequestration of carbon dioxide from the atmosphere by capturing carbon dioxide into a permanent mineral, such as the aqueous precipitation of carbonate minerals that results in the storage of carbon dioxide in a mineral form. (35)

Natural gas liquid

The term natural gas liquid means ethane, butane, isobutane, natural gasoline, and propane. (36)

Natural gas local distribution company

The term natural gas local distribution company has the meaning given the term local distribution company in section 2(17) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3301(17)). (37)

Offset credit

For purposes of this section and part D, the term offset credit means an offset credit issued under part D. For purposes of part C, the term means any offset credit issued under the American Clean Energy and Security Act of 2009, or the amendments made thereby. The term does not include a term offset credit. (38)

Offset project

The term offset project means a project or activity that reduces or avoids greenhouse gas emissions, or sequesters greenhouse gases, and for which offset credits are or may be issued under part D. (39)

Offset project developer

The term offset project developer means the individual or entity designated as the offset project developer in an offset project approval petition under section 735(c)(1). (40)

Petroleum

The term petroleum includes crude oil, tar sands, oil shale, and heavy oils. (41)

Renewable biomass

The term renewable biomass means any of the following: (A)Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are— (i)not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth stands, late-successional stands (except for dead, severely damaged, or badly infested trees), components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors; (ii)harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and (iii)harvested in accordance with Federal and State law, and applicable land management plans. (B)Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including— (i)renewable plant material, including— (I)feed grains; (II)other agricultural commodities; (III)other plants and trees; and (IV)algae; and (ii)waste material, including— (I)crop residue; (II)other vegetative waste material (including wood waste and wood residues); (III)animal waste and byproducts (including fats, oils, greases, and manure); (IV)construction waste; and (V)food waste and yard waste. (C)Residues and byproducts from wood, pulp, or paper products facilities. (42)

Retire

The term retire, with respect to an allowance, offset credit, or term offset credit, established or issued under the American Clean Energy and Security Act of 2009 or the amendments made thereby, means to disqualify such allowance or offset credit for any subsequent use under this title, regardless of whether the use is a sale, exchange, or submission of the allowance, offset credit, or term offset credit to satisfy a compliance obligation. (43)

Reversal

The term reversal means an intentional or unintentional loss of sequestered greenhouse gases to the atmosphere. (44)

Sequestered and sequestration

The terms sequestered and sequestration mean the separation, isolation, or removal of greenhouse gases from the atmosphere, as determined by the Administrator. The terms include biological, geologic, and mineral sequestration, but do not include ocean fertilization techniques. (45)

Stationary source

The term stationary source means any integrated operation comprising any plant, building, structure, or stationary equipment, including support buildings and equipment, that is located within one or more contiguous or adjacent properties, is under common control of the same person or persons, and emits or may emit a greenhouse gas. (46)

Strategic reserve allowance

The term strategic reserve allowance means an emission allowance reserved for, transferred to, or deposited in the strategic reserve under section 726. (47)

Ton

The term ton means metric ton. (48)

Uncapped emissions

The term uncapped emissions means emissions of greenhouse gases emitted after December 31, 2011, that are not capped emissions. (49)

United States greenhouse gas emissions

The term United States greenhouse gas emissions means the total quantity of annual greenhouse gas emissions from the United States, as calculated by the Administrator and reported to the United Nations Framework Convention on Climate Change Secretariat. (50)

Utility unit

The term utility unit means a combustion device that, on January 1, 2009, or any date thereafter, is fossil fuel-fired and serves a generator that produces electricity for sale, unless such combustion device, during the 12-month period starting the later of January 1, 2009, or the commencement of commercial operation and each calendar year starting after such later date— (A)is part of an integrated cycle system that cogenerates steam and electricity during normal operation and that supplies one-third or less of its potential electric output capacity and 25 MW or less of electrical output for sale; or (B)combusts materials of which more than 95 percent is municipal solid waste on a heat input basis. (51)

Vintage year

The term vintage year means the calendar year for which an emission allowance is established under section 721(a) or which is assigned to an emission allowance under section 726(g)(3)(A), except that the vintage year for a strategic reserve allowance shall be the year in which such allowance is purchased at auction.

Disposition of allowances

321.

Disposition of allowances for global warming pollution reduction program

Title VII of the Clean Air Act, as added by section 311 of this Act, is amended by adding at the end the following part:

Disposition of allowances

781.

Allocation of allowances for supplemental reductions

(a)

In General

The Administrator shall allocate for each vintage year the following percentage of the emission allowances established under section 721(a), for distribution in accordance with part E: (1)For vintage years 2012 through 2025, 5 percent. (2)For vintage years 2026 through 2030, 3 percent. (3)For vintage years 2031 through 2050, 2 percent. (b)

Adjustment

The Administrator shall modify the percentages set forth in subsection (a) as necessary to ensure the achievement of the annual supplemental emission reduction objective for 2020, and the cumulative reduction objective through 2025, set forth in section 753(b)(1). (c)

Carryover

If the Administrator has not distributed all of the allowances allocated pursuant to this section for a given vintage year by the end of that year, all such undistributed emission allowances shall, in accordance with section 782(s), be exchanged for allowances from the following vintage year and treated as part of the allocation for supplemental reductions under this section for that later vintage year.

782.

Allocation of emission allowances

(a)

Electricity consumers

(1)The Administrator shall allocate emission allowances for the benefit of electricity consumers, to be distributed in accordance with section 783(b), (c), and (d) in the following amounts: (A)For vintage years 2012 and 2013: 43.75 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2014 and 2015: 38.89 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2016 through 2025: 35.00 percent of the emission allowances established for each year under section 721(a). (D)For vintage year 2026: 28 percent of the emission allowances established for that year under section 721(a). (E)For vintage year 2027: 21 percent of the emission allowances established for that year under section 721(a). (F)For vintage year 2028: 14 percent of the emission allowances established for that year under section 721(a). (G)For vintage year 2029: 7 percent of the emission allowances established for that year under section 721(a). (2)The Administrator shall allocate emission allowances for energy efficiency, renewable electricity, and low income ratepayer assistance programs administered by small electricity local distribution companies, to be distributed in accordance with section 783(e) in the following amounts: (A)For vintage years 2012 through 2025: 0.5 percent of the emission allowances established each year under section 721(a). (B)For vintage year 2026: 0.4 percent of the emission allowances established for that year under section 721(a). (C)For vintage year 2027: 0.3 percent of the emission allowances established for that year under section 721(a). (D)For vintage year 2028: 0.2 percent of the emission allowances established for that year under section 721(a). (E)For vintage year 2029: 0.1 percent of the emission allowances established for that year under section 721(a). (3)For vintage year 2012, the Administrator shall allocate 0.35 percent of emission allowances established for such year under section 721(a) to avoid disincentives to the continued use of existing energy-efficient cogeneration facilities at industrial parks, to be distributed in accordance with section 783(f). (b)

Natural gas consumers

The Administrator shall allocate emission allowances for the benefit of natural gas consumers to be distributed in accordance with section 784 in the following amounts: (1)For vintage years 2016 through 2025, 9 percent of the emission allowances established for each year under section 721(a). (2)For vintage year 2026, 7.2 percent of the emission allowances established for that year under section 721(a). (3)For vintage year 2027, 5.4 percent of the emission allowances established for that year under section 721(a). (4)For vintage year 2028, 3.6 percent of the emission allowances established for that year under section 721(a). (5)For vintage year 2029, 1.8 percent of the emission allowances established for that year under section 721(a). (c)

Home heating oil and propane consumers

The Administrator shall allocate emission allowances for the benefit of home heating oil and propane consumers to be distributed in accordance with section 785 in the following amounts: (1)For vintage years 2012 and 2013, 1.875 percent of the emission allowances established for each year under section 721(a). (2)For vintage years 2014 and 2015, 1.67 percent of the emission allowances established for each year under section 721(a). (3)For vintage years 2016 through 2025, 1.5 percent of the emission allowances established for each year under section 721(a). (4)For vintage year 2026, 1.2 percent of the emission allowances established for that year under section 721(a). (5)For vintage year 2027, 0.9 percent of the emission allowances established for that year under section 721(a). (6)For vintage year 2028, 0.6 percent of the emission allowances established for that year under section 721(a). (7)For vintage year 2029, 0.3 percent of the emission allowances established for that year under section 721(a). (d)

Low income consumers

For each vintage year starting in 2012, the Administrator shall auction, pursuant to section 791, 15 percent of the emission allowances established for each year under section 721(a), with the proceeds used for the benefit of low income consumers to fund the program set forth in subtitle C of title IV of American Clean Energy and Security Act of 2009 and the amendments made thereby. (e)

Trade-vulnerable industries

(1)

In general

The Administrator shall allocate emission allowances to energy-intensive, trade-exposed entities, to be distributed in accordance with section 765, in the following amounts: (A)For vintage years 2012 and 2013, up to 2.0 percent of the emission allowances established for each year under section 721(a). (B)For vintage year 2014, up to 15 percent of the emission allowances established for that year under section 721(a). (C)For vintage year 2015, up to the product of— (i)the amount specified in paragraph (2); multiplied by (ii)the quantity of emission allowances established for 2015 under section 721(a) divided by the quantity of emission allowances established for 2014 under section 721(a). (D)For vintage year 2016, up to the product of— (i)the amount specified in paragraph (3); multiplied by (ii)the quantity of emission allowances established for 2015 under section 721(a) divided by the quantity of emission allowances established for 2014 under section 721(a). (E)For vintage years 2017 through 2025, up to the product of— (i)the amount specified in paragraph (4); multiplied by (ii)the quantity of emission allowances established for that year under section 721(a) divided by the quantity of emission allowances established for 2016 under section 721(a). (F)For vintage years 2026 through 2050, up to the product of the amount specified in paragraph (4)— (i)multiplied by the quantity of emission allowances established for the applicable year during 2026 through 2050 under section 721(a) divided by the quantity of emission allowances established for 2016 under section 721(a); and (ii)multiplied by a factor that shall equal 90 percent for 2026 and decline 10 percent for each year thereafter until reaching zero, except that, if the President modifies a percentage for a year under subparagraph (A) of section 767(c)(3), the highest percentage the President applies for any sector under that subparagraph for that year (not exceeding 100 percent) shall be used for that year instead of the factor otherwise specified in this clause. (2)

Carryover

After the Administrator distributes emission allowances pursuant to section 765 for any given vintage year, any emission allowances allocated to energy-intensive, trade-exposed entities pursuant to this subsection that have not been so distributed shall, in accordance with subsection (s), be exchanged for allowances from the following vintage year and treated as part of the allocation to such entities for that later vintage year. (f)

Deployment of carbon capture and sequestration technology

(1)

Annual allocation

The Administrator shall allocate emission allowances for the deployment of carbon capture and sequestration technology to be distributed in accordance with section 786 in the following amounts: (A)For vintage years 2014 through 2017, 1.75 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2018 and 2019, 4.75 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2020 through 2050, 5 percent of the emission allowances established for each year under section 721(a). (2)

Carryover

If the Administrator has not distributed all of the allowances allocated pursuant to this subsection for a given vintage year by the end of that year, all such undistributed emission allowances shall, in accordance with subsection (s), be exchanged for allowances from the following vintage year and treated as part of the allocation for the deployment of carbon capture and sequestration technology under this subsection for that later vintage year. (g)

Investment in energy efficiency and renewable energy

The Administrator shall allocate emission allowances to invest in energy efficiency and renewable energy as follows: (1)To be distributed in accordance with section 132 of the American Clean Energy and Security Act of 2009 in the following amounts: (A)For vintage years 2012 through 2015, 9.5 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2016 through 2017, 6.5 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2018 through 2021, 5.5 percent of the emission allowances established for each year under section 721(a). (D)For vintage years 2022 through 2025, 1.0 percent of the emission allowances established for each year under section 721(a). (E)For vintage years 2026 through 2050, 4.5 percent of the emission allowances established for each year under section 721(a). (F)At the same time allowances are distributed under subparagraph (D) for each of the vintage years 2022 through 2025, 3.55 percent of emission allowances established under section 721(a) for the vintage year 4 years after that vintage year shall also be distributed (which shall be in addition to the emission allowances distributed under subparagraph (E)). (2)To be distributed in accordance with section 304 of the Energy Conservation and Production Act, as amended by section 201 of the American Clean Energy and Security Act of 2009, for each vintage year from 2012 through 2050, 0.5 percent of emission allowances established for that year under section 721(a). (3)To be distributed among the States in accordance with the formula in section 132(b) of the American Clean Energy and Security Act of 2009 and to be used exclusively for the purposes of section 202 of the American Clean Energy and Security Act of 2009 in the following amounts: (A)For vintage years 2012 through 2017, 0.05 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2018 through 2050, 0.03 percent of the emission allowances established for each year under section 721(a). (h)

Energy research and development

(1)

Energy innovation hubs

For vintage years 2012 through 2050, the Administrator shall allocate 0.45 percent of the emission allowances established under section 721(a) to be distributed to Energy Innovation Hubs in accordance with section 171 of the American Clean Energy and Security Act of 2009. (2)

Advanced energy research

For vintage years 2012 through 2050, the Administrator shall allocate 1.05 percent of the emission allowances established under section 721(a) for the Advanced Research Project Agency-Energy to be distributed in accordance with section 172 of the American Clean Energy and Security Act of 2009. (i)

Investment in clean vehicle technology

The Administrator shall allocate emission allowances to invest in the development and deployment of clean vehicles, to be distributed in accordance with section 124 of the American Clean Energy and Security Act of 2009 in the following amounts: (1)For vintage years 2012 through 2017, 3 percent of the emission allowances established for each year under section 721(a). (2)For vintage years 2018 through 2025, 1 percent of the emission allowances established for each year under section 721(a). (j)

Domestic fuel production

For vintage years 2014 through 2026, the Administrator shall allocate and distribute according to section 787— (1)2 percent of the emission allowances established for each year under section 721(a) to domestic petroleum refineries that are covered entities pursuant to section 700(13)(F)(viii), including small business refiners; and (2)an additional 0.25 percent of the emissions allowances established for each year under section 721(a) to small business refiners that are covered entities pursuant to section 700(13)(F)(viii). (k)

Investment in workers

(1)The Administrator shall auction pursuant to section 791 emission allowances for the benefit of workers pursuant to part 2 of subtitle B of the American Clean Energy and Security Act of 2009 in the following amounts, and shall deposit into the Climate Change Worker Adjustment Assistance Fund established pursuant to section 793, and report to the Secretary of Labor on, the proceeds from the sale of these allowances: (A)For vintage years 2012 through 2021, 0.5 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2022 through 2050, 1.0 percent of the emission allowances established for each year under section 721(a).

All amounts deposited into the fund shall be available to the Secretary of Labor until expended to carry out part 2 of subtitle B of title IV of the American Clean Energy and Security Act of 2009. Of the amounts deposited, not more than $10,000,000 shall be available to the Secretary of Labor for Federal administration costs of such part 2 each fiscal year.

(2)The Administrator shall auction, pursuant to section 791, 0.75 percent of the emission allowances established for each of vintage years 2012 and 2013 under section 721(a), and shall deposit the proceeds in the Energy Efficiency and Renewable Energy Worker Training Fund established by section 422 of the American Clean Energy and Security Act of 2009. (l)

Domestic adaptation

The Administrator shall allocate emission allowances for domestic adaptation as follows: (1)To be distributed in accordance with section 453 of the American Clean Energy and Security Act of 2009 in the following amounts: (A)For vintage years 2012 through 2021, 0.9 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2022 through 2026, 1.9 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2027 through 2050, 3.9 percent of the emission allowances established for each year under section 721(a). (2)For vintage year 2012 and thereafter, the Administrator shall auction, pursuant to section 791, 0.1 percent of the emission allowances established for each year under section 721(a), and shall deposit the proceeds in the Climate Change Health Protection and Promotion Fund established by section 467 of the American Clean Energy and Security Act of 2009. (m)

Wildlife and natural resource adaptation

The Administrator shall allocate emission allowances for wildlife and natural resource adaptation as follows: (1)To be distributed to State agencies in accordance with section 480(a) of the American Clean Energy and Security Act of 2009 in the following amounts: (A)For vintage years 2012 through 2021, 0.385 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2022 through 2026, 0.77 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2027 through 2050, 1.54 percent of the emission allowances established for each year under section 721(a). (2)To be auctioned pursuant to section 791, with the proceeds to be deposited in the Natural Resources Climate Change Adaptation Fund established pursuant to section 480(b), in the following amounts: (A)For vintage years 2012 through 2021, 0.615 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2022 through 2026, 1.23 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2027 through 2050, 2.46 percent of the emission allowances established for each year under section 721(a). (n)

International adaptation

The Administrator shall allocate emission allowances for international adaptation to be distributed in accordance with part 2 of subtitle E of title IV of the American Clean Energy and Security Act of 2009 in the following amounts: (1)For vintage years 2012 through 2021, 1.0 percent of the emission allowances established for each year under section 721(a). (2)For vintage years 2022 through 2026, 2.0 percent of the emission allowances established for each year under section 721(a). (3)For vintage years 2027 through 2050, 4.0 percent of the emission allowances established for each year under section 721(a). (o)

International clean technology deployment

The Administrator shall allocate emission allowances for international clean technology deployment for distribution in accordance with subtitle D of title IV of the American Clean Energy and Security Act of 2009 in the following amounts: (1)For vintage years 2012 through 2021, 1.0 percent of the emission allowances established for each year under section 721(a). (2)For vintage years 2022 through 2026, 2.0 percent of the emission allowances established for each year under section 721(a). (3)For vintage years 2027 through 2050, 4.0 percent of the emission allowances established for each year under section 721(a). (p)

Release of future allowances

The Administrator shall make future year allowances available by auctioning allowances, pursuant to section 791, in the following amounts: (1)In each of calendar years 2014 through 2019, a string of 0.70 billion allowances with vintage years 12 to 17 years after the year of the auction, with an equal number of allowances from each vintage year in the string. (2)In each of calendar years 2020 through 2025, a string of 0.50 billion allowances with vintage years 12 to 17 years after the year of the auction, with an equal number of allowances from each vintage year in the string. (3)In each of calendar years 2026 through 2030, a string of 0.3 billion allowances with vintage years 12 to 17 years after the year of the auction, with an equal number of allowances from each vintage year in the string. (q)

Deficit reduction

(1)For each of vintage years 2012 through 2025, any allowances not allocated for distribution or auction pursuant to section 781 or subsections (a) through (o) and subsections (s) and (t) of this section, or disbursed pursuant to section 790, shall be auctioned by the Administrator pursuant to section 791 and the proceeds shall be deposited into the Treasury. (2)Unless otherwise specified, any allowances allocated pursuant to subsections (a) through (o) and subsections (s) and (t) and not distributed by March 31 of the calendar year following the allowance’s vintage year, shall be auctioned by the Administrator and the proceeds shall be deposited into the Treasury. (3)For auctions conducted through calendar year 2020 pursuant to subsection (p), the auction proceeds shall be deposited into the Treasury. (r)

Climate change consumer refund

(1)For each of vintage years 2026 through 2050, the Administrator shall auction the following allowances established under section 721(a) and deposit the proceeds into the Climate Change Consumer Refund Account: (A)Any allowances not allocated for distribution or auction pursuant to section 781 or subsections (a) through (p) of this section, or disbursed pursuant to section 790. (B)Unless otherwise specified, any allowances allocated pursuant to subsections (a) through (o) and not distributed by March 31 of the calendar year following the allowance's vintage year. (2)For auctions conducted pursuant to subsection (p) in calendar years 2021 and thereafter, the Administrator shall place the proceeds from the sales of the these allowances into the Climate Change Consumer Refund Account. (3)Funds deposited into the Climate Change Consumer Refund Account shall be used as specified in section 789 and shall be available for expenditure, without further appropriation or fiscal year limitation. (s)

Treatment of carryover allowances

(1)

In general

If there are undistributed allowances from a vintage year for supplemental reductions pursuant to section 781(c), energy-intensive, trade-exposed industries pursuant to subsection (e)(2) of this section, deployment of carbon capture and sequestration technology pursuant to subsection (f)(2) of this section, or supplemental agriculture and renewable energy pursuant to subsection (u)(2) of this section, the Administrator shall— (A)use the undistributed allowances to increase for the same vintage year— (i)the allocation of allowances to be auctioned for deficit reduction pursuant to subsection (q) or for consumer refunds pursuant to subsection (r); (ii)the allocation of allowances to be auctioned for low income consumers pursuant to subsection (d); or (iii)a combination of both; and (B)except as provided in paragraph (2)— (i)decrease by the same amount for the following vintage year the allocation for the purpose for which the allocation was increased pursuant to subparagraph (A); and (ii)increase by the same amount for the following vintage year the allocation for the purpose for which the undistributed allowances were originally allocated. (2)

Excess undistributed allowances

(A)For each vintage year for which this subsection applies, the Administrator shall determine whether— (i)the total quantity of undistributed allowances for that vintage year that were allocated pursuant to section 781(c), and subsections (e)(2), (f)(2), and (u)(2) of this section, exceeds (ii)the total quantity of allowances allocated pursuant to subsection (d), (q) and (r) for the following vintage year, decreased by the quantity of allowances for that following vintage year set aside for the reserve established by section 791(f). (B)If the Administrator determines under subparagraph (A) that the quantity described in subparagraph (A)(i) exceeds the quantity described in subparagraph (A)(ii), paragraph (1)(B)(ii) of this subsection shall not apply. Instead, for each purpose described in section 781(c), or subsections (e)(2), (f)(2), and (u)(2) of this section for which undistributed allowances for a given vintage year were allocated, the Administrator shall increase the allocation for the following vintage year by the amount that is the product of— (i)the number of undistributed allowances for that purpose, times (ii)the quantity described in subparagraph (A)(ii) divided by the quantity described in subparagraph (A)(i). (t)

Compensation for early actors

For vintage year 2012, the Administrator shall allocate for compensation for early actors 1 percent of emission allowances established under section 721(a), to be distributed in accordance with section 795 of the American Clean Energy and Security Act of 2009. (u)

Supplemental agriculture and renewable energy

(1)

In general

For vintage years 2012 through 2016, the Administrator shall allocate 0.28 percent of emission allowances established under section 721(a), to be distributed in accordance with section 788 of the American Clean Energy and Security Act of 2009. (2)

Carryover

After the Administrator distributes emission allowances pursuant to section 788 for any given vintage year, any emission allowances allocated to supplemental agriculture and renewable energy pursuant to this subsection that have not been so distributed shall, in accordance with subsection (s), be exchanged for allowances from the following vintage year and treated as part of the allocation to such entities for that later vintage year.

783.

Electricity consumers

(a)

Definitions

For purposes of this section: (1)

Coal-fueled unit

The term ‘coal-fueled unit’ means a utility unit that derives at least 85 percent of its heat input from coal, petroleum coke, or any combination of these 2 fuels. (2)

Electricity local distribution company

The term electricity local distribution company means an electric utility— (A)that has a legal, regulatory, or contractual obligation to deliver electricity directly to retail consumers in the United States, regardless of whether that entity or another entity sells the electricity as a commodity to those retail consumers; and (B)the retail rates of which, except in the case of an electric cooperative, are regulated or set by— (i)a State regulatory authority; (ii)a State or political subdivision thereof (or an agency or instrumentality of, or corporation wholly owned by, either of the foregoing); or (iii)an Indian tribe pursuant to tribal law. (3)

Electricity savings; renewable energy resource

The terms electricity savings and renewable energy resource shall have the meaning given those terms in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of the American Clean Energy and Security Act of 2009). (4)

Independent power production facility

The term independent power production facility means a facility— (A)that is used for the generation of electric energy, at least 80 percent of which is sold at wholesale; and (B)the sales of the output of which are not subject to retail rate regulation or setting of retail rates by— (i)a State regulatory authority; (ii)a State or political subdivision thereof (or an agency or instrumentality of, or corporation wholly owned by, either of the foregoing); (iii)an electric cooperative; or (iv)an Indian tribe pursuant to tribal law. (5)

Long-term contract generator

The term long-term contract generator means a qualifying small power production facility, a qualifying cogeneration facility ), an independent power production facility, or a facility for the production of electric energy for sale to others that is owned and operated by an electric cooperative that is— (A)a covered entity; and (B)as of the date of enactment of this title— (i)a facility with 1 or more sales or tolling agreements executed before March 1, 2007, that govern the facility’s electricity sales and provide for sales at a price (whether a fixed price or a price formula) for electricity that does not allow for recovery of the costs of compliance with the limitation on greenhouse gas emissions under this title, provided that such agreements are not between entities that are affiliates of one another; or (ii)a facility consisting of 1 or more cogeneration units that makes useful thermal energy available to an industrial or commercial process with 1 or more sales agreements executed before March 1, 2007, that govern the facility’s useful thermal energy sales and provide for sales at a price (whether a fixed price or price formula) for useful thermal energy that does not allow for recovery of the costs of compliance with the limitation on greenhouse gas emissions under this title, provided that such agreements are not between entities that are affiliates of one another. (6)

Merchant coal unit

The term merchant coal unit means a coal-fueled unit that— (A)is or is part of a covered entity; (B)is not owned by a Federal, State, or regional agency or power authority; and (C)generates electricity solely for sale to others, provided that all or a portion of such sales are made by a separate legal entity that— (i)has a full or partial ownership or leasehold interest in the unit, as certified in accordance with such requirements as the Administrator shall prescribe; and (ii)is not subject to retail rate regulation or setting of retail rates by— (I)a State regulatory authority; (II)a State or political subdivision thereof (or an agency or instrumentality of, or corporation wholly owned by, either of the foregoing); (III)an electric cooperative; or (IV)an Indian tribe pursuant to tribal law. (7)

Merchant coal unit sales

The term merchant coal unit sales means sales to others of electricity generated by a merchant coal unit that are made by the owner or leaseholder described in paragraph (6)(C). (8)

New coal-fueled unit

The term new coal-fueled unit means a coal-fueled unit that commenced operation on or after January 1, 2009 and before January 1, 2013. (9)

New merchant coal unit

The term new merchant coal unit means a merchant coal unit— (A)that commenced operation on or after January 1, 2009 and before January 1, 2013; and (B)the actual, on-site construction of which commenced prior to January 1, 2009. (10)

Qualifying small power production facility; qualifying cogeneration facility

The terms qualifying small power production facility and qualifying cogeneration facility have the meanings given those terms in section 3(17)(C) and 3(18)(B) of the Federal Power Act (16 U.S.C. 796(17)(C) and 796(18)(B)). (11)

Small LDC

The term small LDC means, for any given year, an electricity local distribution company that delivered less than 4,000,000 megawatt hours of electric energy directly to retail consumers in the preceding year. (12)

State regulatory authority

The term State regulatory authority has the meaning given that term in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(17)). (13)

Useful thermal energy

The term useful thermal energyhas the meaning given that term in section 371(7) of the Energy Policy and Conservation Act (42 U.S.C. 6341(7)). (b)

Electricity local distribution companies

(1)

Distribution of allowances

Not later than September 30, 2011, and each calendar year thereafter through 2028, the Administrator shall distribute to electricity local distribution companies for the benefit of retail ratepayers the quantity of emission allowances allocated for the following vintage year pursuant to section 782(a)(1). Notwithstanding the preceding sentence, the Administrator shall withhold from distribution under this subsection a quantity of emission allowances equal to the lesser of 14.3 percent of the quantity of emission allowances allocated under section 782(a)(1) for the relevant vintage year, or 105 percent of the emission allowances for the relevant vintage year that the Administrator anticipates will be distributed to merchant coal units and to long-term contract generators, respectively, under subsections (c) and (d). If not required by subsections (c) and (d) to distribute all of these reserved allowances, the Administrator shall distribute any remaining emission allowances to electricity local distribution companies in accordance with this subsection. (2)

Distribution based on emissions

(A)

In general

For each vintage year, 50 percent of the emission allowances available for distribution under paragraph (1), after reserving allowances for distribution under subsections (c) and (d), shall be distributed by the Administrator among individual electricity local distribution companies ratably based on the annual average carbon dioxide emissions attributable to generation of electricity delivered at retail by each such company during the base period determined under subparagraph (B). (B)

Base period

(i)

Vintage years 2012 and 2013

For vintage years 2012 and 2013, an electricity local distribution company’s base period shall be— (I)calendar years 2006 through 2008; or (II)any 3 consecutive calendar years between 1999 and 2008, inclusive, that such company selects, provided that the company timely informs the Administrator of such selection. (ii)

Vintage years 2014 and thereafter

For vintage years 2014 and thereafter, the base period shall be— (I)the base period selected under clause (i); or (II)calendar year 2012, in the case of an electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by a new coal-fueled unit, provided that such company timely informs the Administrator of its election to use 2012 as its base period. (C)

Determination of emissions

(i)

Determination for 1999–2008

As part of the regulations promulgated pursuant to subsection (g), the Administrator, after consultation with the Energy Information Administration, shall determine the average amount of carbon dioxide emissions attributable to generation of electricity delivered at retail by each electricity local distribution company for each of the years 1999 through 2008, taking into account entities’ electricity generation, electricity purchases, and electricity sales. In the case of any electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by, a coal-fueled unit that commenced operation after January 1, 2006, and before December 31, 2008, the Administrator shall adjust the emissions attributable to such company’s retail deliveries in calendar years 2006 through 2008 to reflect the emissions that would have occurred if the relevant unit were in operation during the entirety of such 3-year period. (ii)

Adjustments for new coal-fueled units

(I)

Vintage years 2012 and 2013

For purposes of emission allowance distributions for vintage years 2012 and 2013, in the case of any electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by, a new coal-fueled unit, the Administrator shall adjust the emissions attributable to such company’s retail deliveries in the applicable base period to reflect the emissions that would have occurred if the new coal-fueled unit were in operation during such period. (II)

Vintage year 2014 and thereafter

Not later than necessary for use in making emission allowance distributions under this subsection for vintage year 2014, the Administrator shall, for any electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by a new coal-fueled unit and has selected calendar year 2012 as its base period pursuant to subparagraph (B)(ii)(II), determine the amount of carbon dioxide emissions attributable to generation of electricity delivered at retail by such company in calendar year 2012. If the relevant new coal-fueled unit was not yet operational by January 1, 2012, the Administrator shall adjust such determination to reflect the emissions that would have occurred if such unit were in operation for all of calendar year 2012. (iii)

Requirements

Determinations under this paragraph shall be as precise as practicable, taking into account the nature of data currently available and the nature of markets and regulation in effect in various regions of the country. The following requirements shall apply to such determinations: (I)The Administrator shall determine the amount of fossil fuel-based electricity delivered at retail by each electricity local distribution company, and shall use appropriate emission factors to calculate carbon dioxide emissions associated with the generation of such electricity. (II)Where it is not practical to determine the precise fuel mix for the electricity delivered at retail by an individual electricity local distribution company, the Administrator may use the best available data, including average data on a regional basis with reference to Regional Transmission Organizations or regional entities (as that term is defined in section 215(a)(7) of the Federal Power Act (16 U.S.C. 824o(a)(7)), to estimate fuel mix and emissions. Different methodologies may be applied in different regions if appropriate to obtain the most accurate estimate. (3)

Distribution based on deliveries

(A)

Initial formula

Except as provided in subparagraph (B), for each vintage year, the Administrator shall distribute 50 percent of the emission allowances available for distribution under paragraph (1), after reserving allowances for distribution under subsections (c) and (d), among individual electricity local distribution companies ratably based on each electricity local distribution company’s annual average retail electricity deliveries for calendar years 2006 through 2008, unless the owner or operator of the company selects 3 other consecutive years between 1999 and 2008, inclusive, and timely notifies the Administrator of its selection. (B)

Updating

Prior to distributing 2015 vintage year emission allowances under this paragraph and at 3-year intervals thereafter, the Administrator shall update the distribution formula under this paragraph to reflect changes in each electricity local distribution company’s service territory since the most recent formula was established. For each successive 3-year period, the Administrator shall distribute allowances ratably among individual electricity local distribution companies based on the product of— (i)each electricity local distribution company’s average annual deliveries per customer during calendar years 2006 through 2008, or during the 3 alternative consecutive years selected by such company under subparagraph (A); and (ii)the number of customers of such electricity local distribution company in the most recent year in which the formula is updated under this subparagraph. (4)

Prohibition against excess distributions

The regulations promulgated under subsection (g) shall ensure that, notwithstanding paragraphs (2) and (3), no electricity local distribution company shall receive a greater quantity of allowances under this subsection than is necessary to offset any increased electricity costs to such company’s retail ratepayers, including increased costs attributable to purchased power costs, due to enactment of this title. Any emission allowances withheld from distribution to an electricity local distribution company pursuant to this paragraph shall be distributed among all remaining electricity local distribution companies ratably based on emissions pursuant to paragraph (2). (5)

Use of allowances

(A)

Ratepayer benefit

Emission allowances distributed to an electricity local distribution company under this subsection shall be used exclusively for the benefit of retail ratepayers of such electricity local distribution company and may not be used to support electricity sales or deliveries to entities or persons other than such ratepayers. (B)

Ratepayer classes

In using emission allowances distributed under this subsection for the benefit of ratepayers, an electricity local distribution company shall ensure that ratepayer benefits are distributed— (i)among ratepayer classes ratably based on electricity deliveries to each class; and (ii)equitably among individual ratepayers within each ratepayer class, including entities that receive emission allowances pursuant to part F. (C)

Limitation

In general, an electricity local distribution company shall not use the value of emission allowances distributed under this subsection to provide to any ratepayer a rebate that is based solely on the quantity of electricity delivered to such ratepayer. To the extent an electricity local distribution company uses the value of emission allowances distributed under this subsection to provide rebates, it shall, to the maximum extent practicable, provide such rebates with regard to the fixed portion of ratepayers’ bills or as a fixed credit or rebate on electricity bills. (D)

Industrial ratepayers

Notwithstanding subparagraph (C), if compliance with the requirements of this title results (or would otherwise result) in an increase in electricity costs for industrial retail ratepayers of any given electricity local distribution company (including entities that receive emission allowances pursuant to part F), such electricity local distribution company— (i)shall pass through to industrial retail ratepayers their ratable share (based on deliveries to each ratepayer class) of the value of the emission allowances distributed to such company under this subsection, to reduce electricity cost impacts on such ratepayers; and (ii)may do so based on the quantity of electricity delivered to individual industrial retail ratepayers. (E)

Guidelines

As part of the regulations promulgated under subsection (g), the Administrator shall, after consultation with State regulatory authorities, prescribe guidelines for the implementation of the requirements of this paragraph. Such guidelines shall include requirements to ensure that industrial retail ratepayers (including entities that receive emission allowances under part F) receive their ratable share of the value of the allowances distributed to each electricity local distribution company pursuant to this subsection. (6)

Regulatory proceedings

(A)

Requirement

No electricity local distribution company shall be eligible to receive emission allowances under this subsection or subsection (e) unless the State regulatory authority with authority over such company’s retail rates, or the entity with authority to regulate or set retail electricity rates of an electricity local distribution company not regulated by a State regulatory authority, has— (i)after public notice and an opportunity for comment, promulgated a regulation or completed a rate proceeding (or the equivalent, in the case of a ratemaking entity other than a State regulatory authority) that provides for the full implementation of the requirements of paragraph (5) of this subsection and the requirements of subsection (e); and (ii)made available to the Administrator and the public a report describing, in adequate detail, the manner in which the requirements of paragraph (5) and the requirements of subsection (e) will be implemented. (B)

Updating

The Administrator shall require, as a condition of continued receipt of emission allowances under this subsection by an electricity local distribution company, that a new regulation be promulgated or rate proceeding be completed , after public notice and an opportunity for comment, and a new report be made available to the Administrator and the public, pursuant to subparagraph (A), not less frequently than every 5 years. (7)

Plans and reporting

(A)

Regulations

As part of the regulations promulgated under subsection (g), the Administrator shall prescribe requirements governing plans and reports to be submitted in accordance with this paragraph. (B)

Plans

Not later than April 30 of 2011 and every 5 years thereafter through 2026, each electricity local distribution company shall submit to the Administrator a plan, approved by the State regulatory authority or other entity charged with regulating tor setting the retail rates of such company, describing such company’s plans for the disposition of the value of emission allowances to be received pursuant to this subsection and subsection (e), in accordance with the requirements of this subsection and subsection (e). Such plan shall include a description of the manner in which the company will provide to industrial retail ratepayers (including entities that receive emission allowances under part F) their ratable share of the value of such allowances. (C)

Reports

Not later than June 30, 2013, and each calendar year thereafter through 2031, each electricity local distribution company shall submit a report to the Administrator, and to the relevant State regulatory authority or other entity charged with regulating or setting the retail electricity rates of such company, describing the disposition of the value of any emission allowances received by such company in the prior calendar year pursuant to this subsection and subsection (e), including— (i)a description of sales, transfer, exchange, or use by the company for compliance with obligations under this title, of any such emission allowances; (ii)the monetary value received by the company, whether in money or in some other form, from the sale, transfer, or exchange of any such emission allowances; (iii)the manner in which the company’s disposition of any such emission allowances complies with the requirements of this subsection and of subsection (e), including each of the requirements of paragraph (5) of this subsection, including the requirement that industrial retail ratepayers (including entities that receive emission allowances under part F) receive their ratable share of the value of such allowances; and (iv)such other information as the Administrator may require pursuant to subparagraph (A). (D)

Publication

The Administrator shall make available to the public all plans and reports submitted under this subsection, including by publishing such plans and reports on the Internet. (8)

Audits

Each year, the Administrator shall audit a representative sample of electricity local distribution companies to ensure that emission allowances distributed under this subsection have been used exclusively for the benefit of retail ratepayers and that such companies are complying with the requirements of this subsection and of subsection (e), including the requirement that industrial retail ratepayers (including entities that receive emission allowances under part F) receive their ratable share of the value of such allowances. In selecting companies for audit, the Administrator shall take into account any credible evidence of noncompliance with such requirements. The Administrator shall make available to the public a report describing the results of each such audit, including by publishing such report on the Internet. (9)

Enforcement

A violation of any requirement of this subsection or of subsection (e) shall be a violation of this Act. Each emission allowance the value of which is used in violation of the requirements of this subsection or of subsection (e) shall be a separate violation. (c)

Merchant coal units

(1)

Qualifying emissions

The qualifying emissions for a merchant coal unit for a given calendar year shall be the product of the number of megawatt hours of merchant coal unit sales generated by such unit in such calendar year and the average carbon dioxide emissions per megawatt hour generated by such unit during the base period under paragraph (2), provided that the number of megawatt hours in a given calendar year for purposes of such calculation shall be reduced in proportion to the portion of such unit’s carbon dioxide emissions that are either— (A)captured and sequestered in such calendar year; or (B)attributable to the combustion or gasification of biomass, to the extent that the owner or operator of the unit is not required to hold emission allowances for such emissions. (2)

Base period

For purposes of this subsection, the base period for a merchant coal unit shall be— (A)calendar years 2006 through 2008; or (B)in the case of a new merchant coal unit— (i)the first full calendar year of operation of such unit, if such unit commences operation before January 1, 2012; (ii)calendar year 2012, if such unit commences operation on or after January 1, 2012, and before October 1, 2012; or (iii)calendar year 2013, if such unit commences operation on or after October 1, 2012, and before January 1, 2013. (3)

Phase-down schedule

The Administrator shall identify an annual phase-down factor, applicable to distributions to merchant coal units for each of vintage years 2012 through 2029, that corresponds to the overall decline in the amount of emission allowances allocated to the electricity sector in such years pursuant to section 782(a)(1). Such factor shall— (A)for vintage year 2012, be equal to 1.0; (B)for each of vintage years 2013 through 2029, correspond to the quotient of— (i)the quantity of emission allowances allocated under section 782(a)(1) for such vintage year; divided by (ii)the quantity of emission allowances allocated under section 782(a)(1) for vintage year 2012. (4)

Distribution of emission allowances

Not later than March 1 of 2013 and each calendar year through 2030, the Administrator shall distribute emission allowances of the preceding vintage year to the owner or operator of each merchant coal unit described in subsection (a)(6)(C) in an amount equal to the product of— (A)0.5; (B)the qualifying emissions for such merchant coal unit for the preceding year, as determined under paragraph (1); and (C)the phase-down factor for the preceding calendar year, as identified under paragraph (3). (5)

Adjustment

(A)

Study

Not later than July 1, 2014, the Administrator, in consultation with the Federal Energy Regulatory Commission, shall complete a study to determine whether the allocation formula under paragraph (3) is resulting in, or is likely to result in, windfall profits to merchant coal generators or substantially disparate treatment of merchant coal generators operating in different markets or regions. (B)

Regulation

If the Administrator, in consultation with the Federal Energy Regulatory Commission, makes an affirmative finding of windfall profits or disparate treatment under subparagraph (A), the Administrator shall, not later than 18 months after the completion of the study described in subparagraph (A), promulgate regulations providing for the adjustment of the allocation formula under paragraph (3) to mitigate, to the extent practicable, such windfall profits, if any, and such disparate treatment, if any. (6)

Limitation on allowances

Notwithstanding paragraph (4) or (5), for each vintage year the Administrator shall distribute under this subsection no more than 10 percent of the total quantity of emission allowances available for such vintage year for distribution to the electricity sector under section 782(a)(1). If the quantity of emission allowances that would otherwise be distributed pursuant to paragraph (4) or (5) for any vintage year would exceed such limit, the Administrator shall distribute 10 percent of the total emission allowances available for distribution under section 782(a)(1) for such vintage year ratably among merchant coal generators based on the applicable formula under paragraph (4) or (5). (7)

Eligibility

The owner or operator of a merchant coal unit shall not be eligible to receive emission allowances under this subsection for any vintage year for which such owner or operator has elected to receive emission allowances for the same unit under subsection (d). (d)

Long-term contract generators

(1)

Distribution

Not later than March 1, 2013, and each calendar year through 2030, the Administrator shall distribute to the owner or operator of each long-term contract generator a quantity of emission allowances of the preceding vintage year that is equal to the sum of— (A)the number of tons of carbon dioxide emitted as a result of a qualifying electricity sales agreement referred to in subsection (a)(5)(B)(i); and (B)the incremental number of tons of carbon dioxide emitted solely as a result of a qualifying thermal sales agreement referred to in subsection (a)(5)(B)(ii), provided that in no event shall the Administrator distribute more than 1 emission allowance for the same ton of emissions. (2)

Limitation on allowances

Notwithstanding paragraph (1), for each vintage year the Administrator shall distribute under this subsection no more than 4.3 percent of the total quantity of emission allowances available for such vintage year for distribution to the electricity sector under section 782(a)(1). If the quantity of emission allowances that would otherwise be distributed pursuant to paragraph (1) for any vintage year would exceed such limit, the Administrator shall distribute 4.3 percent of the total emission allowances available for distribution under section 782(a)(1) for such vintage year ratably among long-term contract generators based on paragraph (1). (3)

Eligibility

(A)

Facility eligibility

The owner or operator of a facility shall cease to be eligible to receive emission allowances under this subsection upon the earliest date on which the facility no longer meets each and every element of the definition of a long-term contract generator under subsection (a)(5). (B)

Contract eligibility

The owner or operator of a facility shall cease to be eligible to receive emission allowances under this subsection based on an electricity or thermal sales agreement referred to in subsection (a)(5)(B) upon the earliest date that such agreement— (i)expires; (ii)is terminated; or (iii)is amended in any way that changes the location of the facility, the price (whether a fixed price or price formula) for electricity or thermal energy sold under such agreement, the quantity of electricity or thermal energy sold under the agreement, or the expiration or termination date of the agreement. (4)

Demonstration of eligibility

To be eligible to receive allowance distributions under this subsection, the owner or operator of a long-term contract generator shall submit each of the following in writing to the Administrator within 180 days after the date of enactment of this title, and not later than September 30 of each vintage year for which such generator wishes to receive emission allowances: (A)A certificate of representation described in section 700(15). (B)An identification of each owner and each operator of the facility. (C)An identification of the units at the facility and the location of the facility. (D)A written certification by the designated representative that the facility meets all the requirements of the definition of a long-term contract generator. (E)The expiration date of each qualifying electricity or thermal sales agreement referred to in subsection (a)(5)(B). (F)A copy of each qualifying electricity or thermal sales agreement referred to in subsection (a)(5)(B). (5)

Notification

Not later than 30 days after, in accordance with paragraph (3), a facility or an agreement ceases to meet the eligibility requirements for distribution of emission allowances pursuant to this subsection, the designated representative of such facility shall notify the Administrator in writing when, and on what basis, such facility or agreement ceased to meet such requirements. (e)

Small LDCs

(1)

Distribution

Not later than September 30 of each calendar year from 2011 through 2028, the Administrator shall, in accordance with this subsection, distribute emission allowances allocated pursuant to section 782(a)(2) for the following vintage year. Such allowances shall be distributed ratably among small LDCs based on historic emissions in accordance with the same measure of such emissions applied to each such small LDC for the relevant vintage year under subsection (b)(2) of this section. (2)

Uses

A small LDC receiving allowances under this section shall use such allowances exclusively for the following purposes: (A)Cost-effective programs to achieve electricity savings, provided that such savings shall not be transferred or used for compliance with section 610 of the Public Utility Regulatory Policies Act of 1978. (B)Deployment of technologies to generate electricity from renewable energy resources, provided that any Federal renewable electricity credits issued based on generation supported under this section shall be submitted to the Federal Energy Regulatory Commission for voluntary retirement and shall not be used for compliance with section 610 of the Public Utility Regulatory Policies Act of 1978. (C)Assistance programs to reduce electricity costs for low-income residential ratepayers of such small LDC, provided that such assistance is made available equitably to all residential ratepayers below a certain income level, which shall not be higher than 200 percent of the poverty line (as that term is defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)). (3)

Requirements

As part of the regulations promulgated under subsection (g), the Administrator shall prescribe— (A)after consultation with the Federal Energy Regulatory Commission, requirements to ensure that programs and projects under paragraph (2)(A) and (B) are consistent with the standards established by, and effectively supplement electricity savings and generation of electricity from renewable energy resources achieved by, the Combined Efficiency and Renewable Electricity Standard established under section 610 of the Public Utility Regulatory Policies Act of 1978; (B)eligibility criteria and guidelines for consumer assistance programs for low-income residential ratepayers under paragraph (2)(C); and (C)such other requirements as the Administrator determines appropriate to ensure compliance with the requirements of this subsection. (4)

Reporting

Reports submitted under subsection (b)(7) shall include, in accordance with such requirements as the Administrator may prescribe— (A)a description of any facilities deployed under paragraph (2)(A), the quantity of resulting electricity generation from renewable energy resources; (B)an assessment demonstrating the cost-effectiveness of, and electricity savings achieved by, programs supported under paragraph (2)(B); and (C)a description of assistance provided to low-income retail ratepayers under paragraph (2)(C). (f)

Certain cogeneration facilities

(1)

Eligible cogeneration facilities

For purposes of this subsection, an eligible cogeneration facility is a facility that— (A)is a qualifying co-generation facility (as that term is defined in section 3(18)(B) of the Federal Power Act (16 U.S.C. 796(18)(B)); (B)derives 80 percent or more of its heat input from coal, petroleum coke, or any combination of these 2 fuels; (C)has a nameplate capacity of 100 megawatts or greater; (D)was in operation as of January 1, 2009, and remains in operation as of the date of any distribution of emission allowances under this subsection; (E)in calendar years 2006 through 2008 sold, and as of the date of any distribution of emission allowances under this section sells, steam or electricity directly and solely to multiple, separately-owned industrial or commercial facilities co-located at the same site with the cogeneration facility; and (F)is not eligible to receive allowances under any other subsection of this section or under part F of this title. (2)

Distribution

The Administrator shall distribute the emission allowances allocated pursuant to section 782(a)(3) to owners or operators of eligible cogeneration facilities ratably based on the carbon dioxide emissions of each such facility in calendar years 2006 through 2008. The Administrator— (A)shall not, in any year, distribute emission allowances under this subsection to the owner or operator of any eligible cogeneration facility in excess of the amount necessary to offset such facility’s cost of compliance with the requirements of this title in that year; and (B)may distribute such allowances over a period of years if annual distributions under this subsection would otherwise exceed the limitation in subparagraph (A), provided that in no event shall distributions be made under this subsection after calendar year 2025. (3)

Requirements

The Administrator shall, by regulation, establish requirements to ensure that the value of any emission allowances distributed pursuant to this subsection are passed through, on an equitable basis, to the facilities to which the relevant cogeneration facility provides electricity or steam deliveries, including any facility owned or operated by the owner or operator of the cogeneration facility. (g)

Regulations

Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with the Federal Energy Regulatory Commission, shall promulgate regulations to implement the requirements of this section.

784.

Natural gas consumers

(a)

Definitions

For purposes of this section: (1)

Cost-effective

The term cost-effective, with respect to an energy efficiency program, means that the program meets the Total Resource Cost Test, which requires that the net present value of economic benefits over the life of the program, including avoided supply and delivery costs and deferred or avoided investments, is greater than the net present value of the economic costs over the life of the program, including program costs and incremental costs borne by the energy consumer. (2)

Natural gas local distribution company

The term natural gas local distribution company means a natural gas local distribution company that is a covered entity. (3)

Non-covered entity

The term non-covered entity means, when used in reference to a date or period prior to the enactment of this title, an entity that would not have been a covered entity if this title had been in effect during such date or period. (4)

State regulatory authority

The term State regulatory authority has the meaning given the term State commission in section 2(8) of the Natural Gas Act (15 U.S.C. 717a(8)). (b)

Distribution

Not later than June 30 of 2015 and each calendar year thereafter through 2028, the Administrator shall distribute to natural gas local distribution companies for the benefit of retail ratepayers the quantity of emission allowances allocated for the following vintage year pursuant to section 782(b). Such allowances shall be distributed among local natural gas distribution companies based on the following formula: (1)

Initial formula

Except as provided in paragraph (2), for each vintage year, the Administrator shall distribute emission allowances among natural gas local distribution companies ratably based on each such company’s annual average retail natural gas deliveries for 2006 through 2008 to customers that were non-covered entities, unless the owner or operator of the company selects 3 other consecutive years between 1999 and 2008, inclusive, and timely notifies the Administrator of its selection. (2)

Updating

Prior to distributing 2019 vintage year emission allowances and at 3-year intervals thereafter, the Administrator shall update the distribution formula under this subsection to reflect changes in each natural gas local distribution company’s service territory since the most recent formula was established. For each successive 3-year period, the Administrator shall distribute allowances ratably among natural gas local distribution companies based on the product of— (A)each natural gas local distribution company’s average annual natural gas deliveries per customer to customers that were non-covered entities during calendar years 2006 through 2008, or during the 3 alternative consecutive years selected by such company under paragraph (1); and (B)the number of customers of such natural gas local distribution company that are not covered entities in the most recent year in which the formula is updated under this paragraph. (c)

Use of allowances

(1)

Ratepayer benefit

Emission allowances distributed to a natural gas local distribution company under this section shall be used exclusively for the benefit of retail ratepayers of such natural gas local distribution company other than covered entities and may not be used to support natural gas sales or deliveries to entities or persons other than such ratepayers. (2)

Ratepayer classes

In using emission allowances distributed under this section for the benefit of ratepayers, a natural gas local distribution company shall ensure that ratepayer benefits are distributed— (A)among ratepayer classes ratably based on natural gas deliveries to each class, excluding deliveries to covered entities; and (B)equitably among individual ratepayers other than covered entities within each ratepayer class. (3)

Limitation

In general, a natural gas local distribution company shall not use the value of emission allowances distributed under this section to provide to any ratepayer a rebate that is based solely on the quantity of natural gas delivered to such ratepayer. To the extent a natural gas local distribution company uses the value of emission allowances distributed under this section to provide rebates, it shall, to the maximum extent practicable, provide such rebates with regard to the fixed portion of ratepayers’ bills or as a fixed creditor rebate on natural gas bills. (4)

Industrial ratepayers

Notwithstanding paragraph (3), if compliance with the requirements of this title results (or would otherwise result) in an increase in natural gas costs for industrial retail ratepayers of any given natural gas local distribution company that are not covered entities (including entities that receive emission allowances pursuant to part F), such natural gas local distribution company— (A)shall pass through to industrial retail ratepayers that are not covered entities their ratable share (based on deliveries to each ratepayer class) of the value of the emission allowances distributed to such company under this subsection, to reduce natural gas cost impacts on such ratepayers; and (B)may do so based on the quantity of natural gas delivered to individual industrial retail ratepayers. (5)

Energy efficiency programs

The value of no less than one third of the emission allowances distributed to natural gas local distribution companies pursuant to this section in any calendar year shall be used for cost-effective energy efficiency programs for natural gas consumers. Such programs must be authorized and overseen by the State regulatory authority, or by the entity with authority to regulate or set retail natural gas rates in the case of a natural gas local distribution company that is not regulated by a State regulatory authority. (6)

Certain intracompany deliveries

If a natural gas local distribution company makes an intracompany delivery of natural gas to a customer that is not a covered entity, for which such company is required to hold emission allowances under section 722, such customer shall, for purposes of this section, be considered a retail ratepayer and a member of a ratepayer class to be determined by the relevant State regulatory authority, or other entity with authority to regulate or set natural gas rates in the case of a company not regulated by a State regulatory authority. (7)

Guidelines

As part of the regulations promulgated under subsection (h), the Administrator shall, after consultation with State regulatory authorities, prescribe guidelines for the implementation of the requirements of this subsection. Such guidelines shall include requirements to ensure that industrial retail ratepayers that are not covered entities (including entities that receive emission allowances under part F) receive their ratable share of the value of the allowances distributed to each natural gas local distribution company pursuant to this section. (d)

Regulatory proceedings

(1)

Requirement

No natural gas local distribution company shall be eligible to receive emission allowances under this section unless the State regulatory authority with authority over the retail rates of such company, or the entity with authority to regulate or set retail rates of a natural gas local distribution company not regulated by a State regulatory authority, has— (A)after public notice and an opportunity for comment, promulgated a regulation or completed a public rate proceeding (or the equivalent, in the case of a ratemaking entity other than a State regulatory authority) that provides for the full implementation of the requirements of subsection (c); and (B)made available to the Administrator and the public a report describing, in adequate detail, the manner in which the requirements of subsection (c) will be implemented. (2)

Updating

The Administrator shall require, as a condition of continued receipt of emission allowances under this section, that a new regulation be promulgated or rate proceeding be completed, after public notice and an opportunity for comment, and a new report be made available to the Administrator and the public, pursuant to paragraph (1), not less frequently than every 5 years. (e)

Plans and reporting

(1)

Regulations

As part of the regulations promulgated under subsection (h), the Administrator shall prescribe requirements governing plans and reports to be submitted in accordance with this subsection. (2)

Plans

Not later than April 30, 2015, and every 5 years thereafter through 2025, each natural gas local distribution company shall submit to the Administrator a plan, approved by the State regulatory authority or other entity charged with regulating or setting the retail rates of such company, describing such company’s plans for the disposition of the value of emission allowances to be received pursuant to this section, in accordance with the requirements of this section. (3)

Reports

Not later than June 30, 2017, and each calendar year thereafter through 2031, each natural gas local distribution company shall submit a report to the Administrator, approved by the relevant State regulatory authority or other entity charged with regulating or setting the retail natural gas rates of such company, describing the disposition of the value of any emission allowances received by such company in the prior calendar year pursuant to this section, including— (A)a description of sales, transfer, exchange, or use by the company for compliance with obligations under this title, of any such emission allowances; (B)the monetary value received by the company, whether in money or in some other form, from the sale, transfer, or exchange of emission allowances received by the company under this section; (C)the manner in which the company’s disposition of emission allowances received under this section complies with the requirements of this section, including each of the requirements of subsection (c); (D)the cost-effectiveness of, and energy savings achieved by, energy efficiency programs supported through such emission allowances; and (E)such other information as the Administrator may require pursuant to paragraph (1). (4)

Publication

The Administrator shall make available to the public all plans and reports submitted by natural gas local distribution companies under this subsection, including by publishing such plans and reports on the Internet. (f)

Audits

Each year, the Administrator shall audit a representative sample of natural gas local distribution companies to ensure that emission allowances distributed under this section have been used exclusively for the benefit of retail ratepayers and that such companies are complying with the requirements of this section. In selecting companies for audit, the Administrator shall take into account any credible evidence of noncompliance with such requirements. The Administrator shall make available to the public a report describing the results of each such audit, including by publishing such report on the Internet. (g)

Enforcement

A violation of any requirement of this section shall be a violation of this Act. Each emission allowance the value of which is used in violation of the requirements of this section shall be a separate violation. (h)

Regulations

Not later than January 1, 2014, the Administrator, in consultation with the Federal Energy Regulatory Commission, shall promulgate regulations to implement the requirements of this section.

785.

Home heating oil, propane, and kerosene consumers

(a)

Definitions

For purposes of this section: (1)

Carbon content

The term carbon content means the amount of carbon dioxide that would be emitted as a result of the combustion of a fuel. (2)

Cost-effective

The term cost-effective has the meaning given that term in section 784(a)(1). (3)

Oilheat fuel

The term oilheat fuel means fuel that— (A)is— (i)No. 1 distillate; (ii)No. 2 dyed distillate; (iii)a liquid blended with No. 1 distillate or No. 2 dyed distillate; or (iv)a biobased liquid; and (B)is used as a fuel for nonindustrial commercial or residential space or hot water heating. (b)

Distribution among states

Not later than September 30 of each of calendar years 2011 through 2028, the Administrator shall distribute among the States, in accordance with this section, the quantity of emission allowances allocated for the following vintage year pursuant to section 782(c). The Administrator shall distribute emission allowances among the States under this section each year ratably based on the ratio of— (1)the carbon content of oilheat fuel, propane, and kerosene sold to consumers within each State in the preceding year for residential or commercial uses; to (2)the carbon content of oilheat fuel, propane, and kerosene sold to consumers within the United States in the preceding year for residential or commercial uses. (c)

Use of allowances

(1)

In general

States shall use emission allowances distributed under this section exclusively for the benefit of consumers of oilheat fuel, propane, or kerosene for residential or commercial purposes. Such proceeds shall be used exclusively for— (A)cost-effective energy efficiency programs for consumers that use oilheat fuel, propane, or kerosene for residential or commercial purposes; or (B)rebates or other direct financial assistance programs for consumers of oilheat fuel, propane, or kerosene used for residential or commercial purposes. (2)

Administration and delivery mechanisms

In administering programs supported by this section, States shall— (A)use no less than 50 percent of the value of emission allowances received under this section for cost-effective energy efficiency programs to reduce consumers’ overall fuel costs; (B)to the extent practicable, deliver consumer support under this section through existing energy efficiency and consumer energy assistance programs or delivery mechanisms, including, where appropriate, programs or mechanisms administered by parties other than the State; and (C)seek to coordinate the administration and delivery of energy efficiency and consumer energy assistance programs supported under this section, with one another and with existing programs for various fuel types, so as to deliver comprehensive, fuel-blind, coordinated programs to consumers. (d)

Reporting

Each State receiving emission allowances under this section shall submit to the Administrator, within 12 months of each receipt of such allowances, a report, in accordance with such requirements as the Administrator may prescribe, that— (1)describes the State’s use of emission allowances distributed under this section, including a description of the energy efficiency and consumer assistance programs supported with such allowances; (2)demonstrates the cost-effectiveness of, and the energy savings and greenhouse gas emissions reductions achieved by, energy efficiency programs supported under this section; and (3)includes a report prepared by an independent third party, in accordance with such regulations as the Administrator may promulgate, evaluating the performance of the energy efficiency and consumer assistance programs supported under this section. (e)

Enforcement

If the Administrator determines that a State is not in compliance with this section, the Administrator may withhold a portion of the emission allowances, the quantity of which is equal to up to twice the quantity of the allowances that the State failed to use in accordance with the requirements of this section, that such State would otherwise be eligible to receive under this section in later years. Allowances withheld pursuant to this subsection shall be distributed among the remaining States ratably in accordance with the formula in subsection (b).

787.

Allocations to refineries

(a)

Purpose

The purpose of this section is to provide emission allowance rebates to petroleum refineries in the United States in a manner that promotes energy efficiency and a reduction in greenhouse gas emissions at such facilities. (b)

Definitions

In this section: (1)

Emissions

The term emissions includes direct emissions from fuel combustion, process emissions, and indirect emissions from the generation of electricity, steam, and hydrogen used to produce the output of a petroleum refinery or the petroleum refinery sector. (2)

Petroleum refinery

The term petroleum refinery means a facility classified under code 324110 of the North American Industrial Classification System of 2002. (3)

Small business refiner

The term small business refiner means a refiner that meets the applicable Federal refinery capacity and employee limitations criteria described in section 45H(c)(1) of the Internal Revenue Code of 1986 (as in effect on the date of enactment of this section and without regard to section 45H(d)). Eligibility of a small business refiner under this paragraph shall not be recalculated or disallowed on account of (i) its merger with another small business refiner or refiners after December 31, 2002 or (ii) its acquisition of another small business refiner (or refinery of such refiner) after December 31, 2002. (c)

In general

For each vintage year between 2014 and 2026, the Administrator shall distribute allowances pursuant to this section to owners and operators of petroleum refineries, including small business refiners, in the United States. (d)

Distribution schedule

The Administrator shall distribute emission allowances pursuant to the regulations issued under subsection (e) for each vintage year no later than October 31 of the preceding calendar year. (e)

Regulations

Not later than 3 years after the date of enactment of this title, the Administrator, in consultation with the Administrator of the Energy Information Administration, shall promulgate regulations that establish a formula for distributing emission allowances consistent with the purpose of this section. In establishing such formula, the Administrator shall consider the relative complexity of refinery processes and appropriate mechanisms to take energy efficiency and greenhouse gas reductions into account. If a petroleum refinery’s electricity provider received a free allocation of emission allowances pursuant to section 782(a), the Administrator shall take this free allocation into account when establishing such formula to avoid rebates to a petroleum refinery for costs that the Administrator determines were not incurred by the petroleum refinery because the allowances were freely allocated to the petroleum refinery’s electricity provider and used for the benefit of the petroleum refinery. This formula shall apply separately to the distribution of allowances allocated pursuant to section 782(j)(1) and to those allocated under section 782(j)(2).

788.

Supplemental agriculture and renewable energy incentives programs

(a)

In general

Emission allowances allocated pursuant to section 782(u) shall be distributed by the Administrator at the direction of the Secretary of Energy and the Secretary of Agriculture in accordance with this section. Not less than 50 percent of the allowances shall be available for the program established pursuant to subsection (b). (b)

Agriculture Incentives Program

(1)

Establishment

The Secretary of Agriculture shall establish by rule a program to provide incentives in the form of emission allowances for activities undertaken in the agriculture sector that reduce greenhouse gas emissions or sequester carbon. Under this program, the Secretary of Agriculture shall provide incentives for projects and activities that— (A)reduce or avoid greenhouse gas emissions, or sequester greenhouse gases, but do not meet the criteria for offset credits established under the American Clean Energy and Security Act of 2009; (B)support actions to adapt to climate change; or (C)prevent conversion of land that would increase greenhouse gas emissions (including projects and activities that complement or supplement conservation programs administered by the Secretary). (2)

Considerations

In designing this program, the Secretary shall ensure that it provides support for— (A)development and demonstration of practices to reduce greenhouse gas emissions or sequester carbon in agricultural operations where there are limited recognized opportunities to achieve such emissions reductions or sequestration; and (B)projects that reduce greenhouse gas emissions or increase sequestration of greenhouse gases and also achieve other significant environmental benefits, such as the improvement of water or air quality. (3)

Research

The Secretary shall establish by rule a program to conduct research to develop additional projects and activities for crops to find additional techniques and methods to reduce greenhouse gas emissions or sequester greenhouse gases that may or may not meet the criteria for offset credits established under the American Clean Energy and Security Act of 2009. (4)

Use of Information

Information and data generated by this program should, where relevant, be used to inform the development of additional offset practices and methodologies. (c)

Renewable energy incentives program

The Secretary of Energy and the Administrator shall establish by rule a program to provide allowances to State and local governments to support the deployment of renewable energy infrastructure.

789.

Climate change consumer refunds

(a)

Refund

In each year after deposits are made to the Climate Change Consumer Refund Account, the Secretary of the Treasury shall provide tax refunds on a per capita basis to each household in the United States that shall collectively equal the amount deposited into the Climate Change Consumer Refund Account. (b)

Limitations

The Secretary of the Treasury shall establish procedures to ensure that individuals who are not— (1)citizens or nationals of the United States; or (2)immigrants lawfully residing in the United States,

are excluded for the purpose of calculating and distributing refunds under this section.

790.

Exchange for State-issued allowances

(a)

In general

Not later than 1 year after the date of enactment of this title, the Administrator shall issue regulations allowing any person in the United States to exchange greenhouse gas emission allowances issued before December 31, 2011, by the State of California or for the Regional Greenhouse Gas Initiative, or the Western Climate Initiative (in this section referred to as State allowances) for emission allowances established by the Administrator under section 721(a). (b)

Regulations

Regulations issued under subsection (a) shall— (1)provide that a person exchanging State allowances under this section receive emission allowances established under section 721(a) in the amount that is sufficient to compensate for the cost of obtaining and holding such State allowances; (2)establish a deadline by which persons must exchange the State allowances; (3)provide that the Federal emission allowances disbursed pursuant to this section shall be deducted from the allowances to be auctioned pursuant to section 782(d); and (4)require that, once exchanged, the credit or other instrument be retired for purposes of use under the program by or for which it was originally issued. (c)

Cost of obtaining State allowance

For purposes of this section, the cost of obtaining a State allowance shall be the average auction price, for emission allowances issued in the year in which the State allowance was issued, under the program under which the State allowance was issued.

791.

Auction procedures

(a)

In general

To the extent that auctions of emission allowances by the Administrator are authorized by this part, such auctions shall be carried out pursuant to this section and the regulations established hereunder. (b)

Initial regulations

Not later than 12 months after the date of enactment of this title, the Administrator, in consultation with other agencies, as appropriate, shall promulgate regulations governing the auction of allowances under this section. Such regulations shall include the following requirements: (1)

Frequency; first auction

Auctions shall be held four times per year at regular intervals, with the first auction to be held no later than March 31, 2011. (2)

Auction schedule; current and future vintages

The Administrator shall, at each quarterly auction under this section, offer for sale both a portion of the allowances with the same vintage year as the year in which the auction is being conducted and a portion of the allowances with vintage years from future years. The preceding sentence shall not apply to auctions held before 2012, during which period, by necessity, the Administrator shall auction only allowances with a vintage year that is later than the year in which the auction is held. Beginning with the first auction and at each quarterly auction held thereafter, the Administrator may offer for sale allowances with vintage years of up to 4 years after the year in which the auction is being conducted, except as provided in section 782(p). (3)

Auction format

Auctions shall follow a single-round, sealed-bid, uniform price format. (4)

Participation; financial assurance

Auctions shall be open to any person, except that the Administrator may establish financial assurance requirements to ensure that auction participants can and will perform on their bids. (5)

Disclosure of beneficial ownership

Each bidder in the auction shall be required to disclose the person or entity sponsoring or benefitting from the bidder’s participation in the auction if such person or entity is, in whole or in part, other than the bidder. (6)

Purchase limits

No person may, directly or in concert with another participant, purchase more than 5 percent of the allowances offered for sale at any quarterly auction. (7)

Publication of information

After the auction, the Administrator shall, in a timely fashion, publish the identities of winning bidders, the quantity of allowances obtained by each winning bidder, and the auction clearing price. (8)

Other requirements

The Administrator may include in the regulations such other requirements or provisions as the Administrator, in consultation with other agencies, as appropriate, considers appropriate to promote effective, efficient, transparent, and fair administration of auctions under this section. (c)

Revision of regulations

The Administrator may, in consultation with other agencies, as appropriate, at any time, revise the initial regulations promulgated under subsection (b) by promulgating new regulations. Such revised regulations need not meet the requirements identified in subsection (b) if the Administrator determines that an alternative auction design would be more effective, taking into account factors including costs of administration, transparency, fairness, and risks of collusion or manipulation. In determining whether and how to revise the initial regulations under this subsection, the Administrator shall not consider maximization of revenues to the Federal Government. (d)

Reserve auction price

The minimum reserve auction price shall be $10 (in constant 2009 dollars) for auctions occurring in 2012. The minimum reserve price for auctions occurring in years after 2012 shall be the minimum reserve auction price for the previous year increased by 5 percent plus the rate of inflation (as measured by the Consumer Price Index for all urban consumers). (e)

Delegation or contract

Pursuant to regulations under this section, the Administrator may by delegation or contract provide for the conduct of auctions under the Administrator’s supervision by other departments or agencies of the Federal Government or by nongovernmental agencies, groups, or organizations. (f)

Small business refiner reserve

The Administrator shall, in accordance with this subsection, issue regulations setting aside a specified number of allowances that small business refiners may purchase at the average auction price and may use to demonstrate compliance pursuant to section 722. These regulations shall provide the following: (1)

Amount

The Administrator shall place in the small business refiner reserve account allowances that are to be sold at auction pursuant to the allocations in section 782 in an amount equal to— (A)6.2 percent of the emission allowances established under section 721(a) for each vintage year from 2012 through 2013; (B)5.4 percent of the emission allowances established under section 721(a) for each vintage year from 2014 through 2015; and (C)4.9 percent of the emission allowances established under section 721(a) for each vintage year from 2016 through 2024. (2)

Allowed purchases

From January 1 of the calendar year that matches the vintage year for which allowances have been placed in the reserve, through January 14 of the following year, small business refiners (as defined in section 787(b)) may purchase allowances from this reserve at the price determined pursuant to paragraph (3). (3)

Price

The price for allowances purchased from this reserve shall be the average auction price for allowances of the same vintage year purchased at auctions conducted pursuant to this section during the 12 months preceding the purchase of the allowances. (4)

Use of allowances

Allowances purchased from this reserve shall only be used by the purchaser to demonstrate compliance pursuant to section 722 for attributable greenhouse gas emissions in the calendar year that matches the vintage year of the purchased allowance. Allowances purchased from this reserve may not be banked, traded or borrowed. (5)

Limitations on purchase amount

The Administrator, by regulation adopted after public notice and an opportunity for comment, shall establish procedures to distribute the ability to purchase allowances from the reserve fairly among all small business refiners interested in purchasing allowances from this reserve so as to address the potential that requests to purchase allowances exceed the number of allowances available in the reserve. This regulation may place limits on the number of allowances a small business refiner may purchase from the reserve. (6)

Unsold allowances

Vintage year allowances not sold from the reserve on or before January 15 of the calendar year following the vintage year shall be sold at an auction conducted pursuant to this section no later than March 31 of the calendar year following the vintage year. If significantly more allowances are being placed in the reserve than are being purchased from the reserve several years in a row, the Administrator may adjust either the percent of allowances placed in the reserve or the date by which allowances may be purchased from the reserve.

792.

Auctioning allowances for other entities

(a)

Consignment

Any entity holding emission allowances or compensatory allowances may request that the Administrator auction, pursuant to section 791, the allowances on consignment. (b)

Pricing

When the Administrator acts under this section as the agent of an entity in possession of emission allowances or compensatory allowances, the Administrator is not obligated to obtain the highest price possible for the allowances, and instead shall auction consignment allowances in the same manner and pursuant to the same rules as auctions of other allowances under section 791. The Administrator may permit the entity offering the allowance for sale to condition the sale of its allowances pursuant to this section on a minimum reserve price that is different than the reserve auction price set pursuant to section 791(d). (c)

Proceeds

For emission allowances and compensatory allowances auctioned pursuant to this section, notwithstanding section 3302 of title 31, United States Code, or any other provision of law, within 90 days of receipt, the United States shall transfer the proceeds from the auction to the entity which held the allowances auctioned. No funds transferred from a purchaser to a seller of emission allowances or compensatory allowances under this subsection shall be held by any officer or employee of the United States or treated for any purpose as public monies. (d)

Unsold allowances

Allowances offered for sale under this section that are not sold shall be returned to the entity in possession of the allowance, notwithstanding section 726(b)(2)(A). (e)

Regulations

The Administrator shall issue regulations within 24 months after the date of enactment of this title to implement this section.

793.

Establishment of funds

There is hereby established in the Treasury of the United States the following separate accounts: (1)The Strategic Reserve Fund. (2)The Climate Change Consumer Refund Account. (3)The Climate Change Worker Adjustment Assistance Fund.

794.

Oversight of allocations

(a)

In general

Not later than January 1, 2014, and every 2 years thereafter, the Comptroller General of the United States shall carry out and report to Congress on the results of a review of programs administered by the Federal Government that distribute emission allowances or funds from any Federal auction of allowances. (b)

Contents

Each such report shall include a comprehensive evaluation of the administration and effectiveness of each program, including— (1)the efficiency, transparency, and soundness of the administration of each program; (2)the performance of activities receiving assistance under each program; (3)the cost-effectiveness of each program in achieving the stated purposes of the program; and (4)recommendations, if any, for legislative, regulatory, or administrative changes to each program to improve its effectiveness. (c)

Focus

In evaluating program performance, each review under this section review shall address the effectiveness of such programs in— (1)creating and preserving jobs; (2)ensuring a manageable transition for working families and workers; (3)reducing the emissions, or enhancing sequestration, of greenhouse gases; (4)developing clean technologies; and (5)building resilience to the impacts of climate change.

795.

Exchange for early action offset credits

(a)

In general

Emission allowances allocated pursuant to section 782(t) shall be distributed by the Administrator in accordance with this section. Not later than 1 year after the date of enactment of this title, the Administrator shall issue regulations allowing— (1)any person in the United States to exchange instruments in the nature of offset credits issued before January 1, 2009, by a State or voluntary offset program with respect to which the Administrator has made an affirmative determination under section 740(a)(2), for emissions allowances established by the Administrator under section 721(a); and (2)the Administrator to provide compensation in the form of emission allowances to entities that do not meet the criteria of paragraph (1) and meet the criteria of this paragraph for documented early reductions or avoidance of greenhouse gas emissions or greenhouse gases sequestered before January 1, 2009, from projects begun before January 1, 2009, where— (A)the entity publicly stated greenhouse gas reduction goals and publicly reported against those goals; (B)the entity demonstrated entity-wide net greenhouse gas reductions; and (C)the entity demonstrates the actual projects undertaken to make reductions and documents the reductions (e.g., through documentation of engineering projects). (b)

Regulations

Regulations issued under subsection (a) shall— (1)provide that a person exchanging credits under subsection (a)(1) receive emission allowances established under section 721(a) in an amount for which the monetary value is equivalent to the average monetary value of the credits during the period from January 1, 2006, to January 1, 2009, as adjusted for inflation to reflect current dollar values at the time of the exchange; (2)provide that a person receiving compensation for documented early action under subsection (a)(2) shall receive emission allowances established under section 721(a) in an amount that is approximately equivalent in value to the carbon dioxide equivalent per ton value received by entities in exchange for credits under paragraph (1) (as adjusted for inflation to reflect current dollar values at the time of the exchange), as determined by the Administrator; (3)provide that only reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, achieved by activities in the United States between January 1, 2001, and January 1, 2009, may be compensated under this section, and only credits issued for such activities may be exchanged under this section; (4)provide that only credits that have not been retired or otherwise used to meet a voluntary or mandatory commitment, and have not expired, may be exchanged under subsection (a)(1); (5)require that, once exchanged, the credit be retired for purposes of use under the program by or for which it was originally issued; and (6)establish a deadline by which persons must exchange the credits or request compensation for early action under this section. (c)

Participation

Participation in an exchange of credits for allowances or compensation for early action authorized by this section shall not preclude any person from participation in an offset credit program established under the American Clean Energy and Security Act of 2009. (d)

Distribution

Of the emission allowances distributed under this section, a quantity equal to 0.75 percent of vintage year 2012 emission allowances established under section 721(a) shall be distributed pursuant to subsection (a)(1), and a quantity equal to 0.25 percent of vintage year 2012 emission allowances established under section 721(a) shall be distributed pursuant to subsection (a)(2).

Additional greenhouse gas standards

331.

Greenhouse gas standards

The Clean Air Act (42 U.S.C. 7401 and following), as amended by subtitles A and B of this title, is further amended by adding the following new title after title VII:

<enum>VIII</enum><header>Additional Greenhouse Gas Standards</header> <section id="H9F5A09C6AD0B4484AB71FAED0F5C7397"><enum>801.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title, terms that are defined in title VII, except for the term <quote>stationary source</quote>, shall have the meaning given those terms in title VII.</text> </section><part id="H3B5A59E35DFA41D88F41E65BBCF81F6F"><enum>A</enum><header>Stationary Source Standards</header> <section id="H78DAAA30A2AB4BDBB33D1493A2F367DD"><enum>811.</enum><header>Standards of performance</header> <subsection id="H1171D3B64A79429CB4E6033479ED19A2"><enum>(a)</enum><header>Uncapped stationary sources</header> <paragraph id="H73029A94D31E4C379C845E0E71FA4E30"><enum>(1)</enum><header>Inventory of source categories</header><subparagraph commented="no" display-inline="yes-display-inline" id="HC4779AAE62C04D7FAE44727D95A6550E"><enum>(A)</enum><text>Within 12 months after the date of enactment of this title, the Administrator shall publish under section 111(b)(1)(A) an inventory of categories of stationary sources that consist of those categories that contain sources that individually had uncapped greenhouse gas emissions greater than 10,000 tons of carbon dioxide equivalent and that, in the aggregate, were responsible for emitting at least 20 percent annually of the uncapped greenhouse gas emissions.</text> </subparagraph><subparagraph id="H0B591344946A49BDB70770325801D7FA" indent="up1"><enum>(B)</enum><text>The Administrator shall include in the inventory under this paragraph each source category that is responsible for at least 10 percent of the uncapped methane emissions in 2005. Notwithstanding any other provision, the inventory required by this section shall not include sources of enteric fermentation. The list under this paragraph shall include industrial sources, the emissions from which, when added to the capped emissions from industrial sources, constitute at least 95 percent of the greenhouse gas emissions of the industrial sector.</text> </subparagraph><subparagraph id="H8258B2836C2B4C1B98DC37ABC26DF5E1" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">For purposes of this subsection, emissions shall be calculated using tons of carbon dioxide equivalents. In promulgating the inventory required by this paragraph and the schedule required under by paragraph (2)(C), the Administrator shall use the most current emissions data available at the time of promulgation, except as provided in subparagraph (B).</text> </subparagraph><subparagraph id="HF17FC0DDD0D54556BF0DAF7ACDF1926B" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">Notwithstanding any other provisions, the Administrator may list under 111(b) any source category identified in the inventory required by this subsection without making a finding that the source category causes or contributes significantly to, air pollution with may be reasonably anticipated to endanger public health or welfare.</text> </subparagraph></paragraph><paragraph id="H977B247682B4439C84B93F9D49B6F783"><enum>(2)</enum><header>Standards and schedule</header><subparagraph commented="no" display-inline="yes-display-inline" id="HE55ED6A86AC04FF6B5A203AA84B41E25"><enum>(A)</enum><text>For each category identified as provided in paragraph (1), the Administrator shall promulgate standards of performance under section 111 for the uncapped emissions of greenhouse gases from stationary sources in that category and shall promulgate corresponding regulations under section 111(d).</text> </subparagraph><subparagraph id="H8A528BB0351341AB8F4763B81B9C1FE8" indent="up1"><enum>(B)</enum><text>The Administrator shall promulgate standards as required by this subsection for stationary sources in categories identified as provided in paragraph (1) as expeditiously as practicable, assuring that—</text> <clause id="H749CC7E0881D407296CF8DA7FFDED199"><enum>(i)</enum><text>standards for identified source categories that, combined, emitted 80 percent or more of the greenhouse gas emissions of the identified source categories shall be promulgated not later than 3 years after the date of enactment of this title and shall include standards for natural gas extraction; and</text> </clause><clause id="H013F69138D7A4072B52319DB87384596"><enum>(ii)</enum><text>for all other identified source categories—</text> <subclause id="H267F48F463954380AA63B645C3E03ACA"><enum>(I)</enum><text>standards for not less than an additional 25 percent of the identified categories shall be promulgated not later than 5 years after the date of enactment of this title;</text> </subclause><subclause id="H06615D593C734A259FF2C14A9CF51220"><enum>(II)</enum><text>standards for not less than an additional 25 percent of the identified categories shall be promulgated not later than 7 years after the date of enactment of this title; and</text> </subclause><subclause id="H4EB9B59380594176970017650E4AD7A7"><enum>(III)</enum><text>standards for all the identified categories shall be promulgated not later than 10 years after the date of enactment of this title.</text> </subclause></clause></subparagraph><subparagraph id="H857014AFC2704BD2BA3C28EB5FE1ACF0" indent="up1"><enum>(C)</enum><text>Not later than 24 months after the date of enactment of this title and after notice and opportunity for comment, the Administrator shall publish a schedule establishing a date for the promulgation of standards for each category of sources identified pursuant to paragraph (1). The date for each category shall be consistent with the requirements of subparagraph (B). The determination of priorities for the promulgation of standards pursuant to this paragraph is not a rulemaking and shall not be subject to judicial review, except that failure to promulgate any standard pursuant to the schedule established by this paragraph shall be subject to review under section 304(a)(2).</text> </subparagraph><subparagraph id="HAB462F4E67764FA289F82EDD3C44EEB5" indent="up1"><enum>(D)</enum><text>Notwithstanding section 307, no action of the Administrator listing a source category under paragraph (1) shall be a final agency action subject to judicial review, except that any such action may be reviewed under section 307 when the Administrator issues performance standards for such category.</text> </subparagraph></paragraph></subsection><subsection id="H492410AA54224DF2AE5D587444830782"><enum>(b)</enum><header>Capped sources</header><text>No standard of performance shall be established under section 111 for capped greenhouse gas emissions from a capped source unless the Administrator determines that such standards are appropriate because of effects that do not include climate change effects. In promulgating a standard of performance under section 111 for the emission from capped sources of any air pollutant that is not a greenhouse gas, the Administrator shall treat the emission of any greenhouse gas by those entities as a nonair quality public health and environmental impact within the meaning of section 111(a)(1).</text> </subsection><subsection id="HDB956FFCD8424354B0C0D09C2CF7C376"><enum>(c)</enum><header>Performance standards</header><text>For purposes of setting a performance standard for source categories identified pursuant to subsection (a)—</text> <paragraph id="H09ADC6D26B7049178A20913E705130C4"><enum>(1)</enum><text>The Administrator shall take into account the goal of reducing total United States greenhouse gas emissions as set forth in section 702.</text> </paragraph><paragraph id="HA4C43FF7587746D78F34E77ED1395BD7"><enum>(2)</enum><text>The Administrator may promulgate a design, equipment, work practice, or operational standard, or any combination thereof, under section 111 in lieu of a standard of performance under that section without regard to any determination of feasibility that would otherwise be required under section 111(h).</text> </paragraph><paragraph id="H043E0CD23ECA40DD853F53D5280F9EDC"><enum>(3)</enum><text>Notwithstanding any other provision, in setting the level of each standard required by this section, the Administrator shall take into account projections of allowance prices, such that the marginal cost of compliance (expressed as dollars per ton of carbon dioxide equivalent reduced) imposed by the standard would not, in the judgement of the Administrator, be expected to exceed the Administrator’s projected allowance prices over the time period spanning from the date of initial compliance to the date that the next revisions of the standard would come into effect pursuant to the schedule under section 111(b)(1)(B).</text> </paragraph></subsection><subsection id="HAA0AC232A2C540A39F32E690BF06AA0F"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section, the terms <quote>uncapped greenhouse gas emissions</quote> and <quote>uncapped methane emissions</quote> mean those greenhouse gas or methane emissions, respectively, to which section 722 would not have applied if the requirements of this title had been in effect for the same year as the emissions data upon which the list is based.</text> </subsection><subsection id="HFA99BFDCE5EF48ACBA99D6BE704E3765"><enum>(e)</enum><header>Study of the effects of performance standards</header> <paragraph id="H0EB7F99283B14AA2BA015000F2456AC1"><enum>(1)</enum><header>Study</header><text>The Administrator shall conduct a study of the impacts of performance standards required under this section, which shall evaluate the effect of such standards on the—</text> <subparagraph id="HA671EB505B5A4E1ABB3895475520F561"><enum>(A)</enum><text>costs of achieving compliance with the economy-wide reduction goals specified in section 702 and the reduction targets specified in section 703;</text> </subparagraph><subparagraph id="H5EEAA1A012D143BA878F48997A15373D"><enum>(B)</enum><text>available supply of offset credits; and</text> </subparagraph><subparagraph id="H22E737C04F1741EF9A16E82FA014C821"><enum>(C)</enum><text>ability to achieve the economy-wide reduction goals specified in section 702 and any other benefits of such standards.</text> </subparagraph></paragraph><paragraph id="HFC6882593B2748D19166C3DE0DA95D49"><enum>(2)</enum><header>Report</header><text>The Administrator shall submit to the House Energy and Commerce Committee a report that describes the results of the study not later than 18 months after the publication of the standards required under subsection (a)(2)(B)(i).</text> </paragraph></subsection></section></part><part id="H33C27422767A444EB9D18D601DFA7551"><enum>C</enum><header>Exemptions From Other Programs</header> <section id="HEAE8702327A2444E8298116F92870D02"><enum>831.</enum><header>Criteria pollutants</header><text display-inline="no-display-inline">As of the date of the enactment of the Safe Climate Act, no greenhouse gas may be added to the list under section 108(a) on the basis of its effect on global climate change.</text> </section><section id="H969050FBACE34CD187C806556C24E3DE"><enum>832.</enum><header>International air pollution</header><text display-inline="no-display-inline">Section 115 shall not apply to an air pollutant with respect to that pollutant’s contribution to global warming.</text> </section><section id="H7A2F1E54CCAB4C2295F8AE8A40BC8A43"><enum>833.</enum><header>Hazardous air pollutants</header><text display-inline="no-display-inline">No greenhouse gas may be added to the list of hazardous air pollutants under section 112 unless such greenhouse gas meets the listing criteria of section 112(b) independent of its effects on global climate change.</text> </section><section id="HC77B2AA1B0AA40D894C35FB59E4E5A67"><enum>834.</enum><header>New source review</header><text display-inline="no-display-inline">The provisions of part C of title I shall not apply to a major emitting facility that is initially permitted or modified after January 1, 2009, on the basis of its emissions of any greenhouse gas.</text> </section><section id="H84AAD5055C80428CA7898B3F7D7E29DB"><enum>835.</enum><header>Title V permits</header><text display-inline="no-display-inline">Notwithstanding any provision of title III or V, no stationary source shall be required to apply for, or operate pursuant to, a permit under title V, solely because the source emits any greenhouse gases that are regulated solely because of their effect on global climate change.</text> </section></part>

332.

HFC Regulation

(a)

In general

Title VI of the Clean Air Act (42 U.S.C. 7671 et seq.) (relating to stratospheric ozone protection) is amended by adding at the end the following:

619.

Hydrofluorocarbons (HFCs)

(a)

Treatment as class II, group II substances

Except as otherwise provided in this section, hydrofluorocarbons shall be treated as class II substances for purposes of applying the provisions of this title. The Administrator shall establish two groups of class II substances. Class II, group I substances shall include all hydrochlorofluorocarbons (HCFCs) listed pursuant to section 602(b). Class II, group II substances shall include each of the following: (1)Hydrofluorocarbon-23 (HFC–23). (2)Hydrofluorocarbon-32 (HFC–32). (3)Hydrofluorocarbon-41 (HFC–41). (4)Hydrofluorocarbon-125 (HFC–125). (5)Hydrofluorocarbon-134 (HFC–134). (6)Hydrofluorocarbon-134a (HFC–134a). (7)Hydrofluorocarbon-143 (HFC–143). (8)Hydrofluorocarbon-143a (HFC–143a). (9)Hydrofluorocarbon-152 (HFC–152). (10)Hydrofluorocarbon-152a (HFC–152a). (11)Hydrofluorocarbon-227ea (HFC–227ea). (12)Hydrofluorocarbon-236cb (HFC–236cb). (13)Hydrofluorocarbon-236ea (HFC–236ea). (14)Hydrofluorocarbon-236fa (HFC–236fa). (15)Hydrofluorocarbon-245ca (HFC–245ca). (16)Hydrofluorocarbon-245fa (HFC–245fa). (17)Hydrofluorocarbon-365mfc (HFC–365mfc). (18)Hydrofluorocarbon-43-10mee (HFC–43–10mee). (19)Hydrofluoroolefin-1234yf (HFO–1234yf). (20)Hydrofluoroolefin-1234ze (HFO–1234ze).

Not later than 6 months after the date of enactment of this title, the Administrator shall publish an initial list of class II, group II substances, which shall include the substances listed in this subsection. The Administrator may add to the list of class II, group II substances any other substance used as a substitute for a class I or II substance if the Administrator determines that 1 metric ton of the substance makes the same or greater contribution to global warming over 100 years as 1 metric ton of carbon dioxide. Within 24 months after the date of enactment of this section, the Administrator shall amend the regulations under this title (including the regulations referred to in sections 603, 608, 609, 610, 611, 612, and 613) to apply to class II, group II substances.

(b)

Consumption and production of Class II, Group II substances

(1)

In general

(A)

Consumption phase down

In the case of class II, group II substances, in lieu of applying section 605 and the regulations thereunder, the Administrator shall promulgate regulations phasing down the consumption of class II, group II substances in the United States, and the importation of products containing any class II, group II substance, in accordance with this subsection within 18 months after the date of enactment of this section. Effective January 1, 2012, it shall be unlawful for any person to produce any class II, group II substance, import any class II, group II substance, or import any product containing any class II, group II substance without holding one consumption allowance or one destruction offset credit for each carbon dioxide equivalent ton of the class II, group II substance. Any person who exports a class II, group II substance for which a consumption allowance was retired may receive a refund of that allowance from the Administrator following the export. (B)

Production

If the United States becomes a party or otherwise adheres to a multilateral agreement, including any amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer, that restricts the production of class II, group II substances, the Administrator shall promulgate regulations establishing a baseline for the production of class II, group II substances in the United States and phasing down the production of class II, group II substances in the United States, in accordance with such multilateral agreement and subject to the same exceptions and other provisions as are applicable to the phase down of consumption of class II, group II substances under this section (except that the Administrator shall not require a person who obtains production allowances from the Administrator to make payment for such allowances if the person is making payment for a corresponding quantity of consumption allowances of the same vintage year). Upon the effective date of such regulations, it shall be unlawful for any person to produce any class II, group II substance without holding one consumption allowance and one production allowance, or one destruction offset credit, for each carbon dioxide equivalent ton of the class II, group II substance. (C)

Integrity of cap

To maintain the integrity of the class II, group II cap, the Administrator may, through rulemaking, limit the percentage of each person’s compliance obligation that may be met through the use of destruction offset credits or banked allowances. (D)

Counting of violations

Each consumption allowance, production allowance, or destruction offset credit not held as required by this section shall be a separate violation of this section. (2)

Schedule

Pursuant to the regulations promulgated pursuant to paragraph (1)(A), the number of class II, group II consumption allowances established by the Administrator for each calendar year beginning in 2012 shall be the following percentage of the baseline, as established by the Administrator pursuant to paragraph (3): Calendar YearPercent of Baseline 201290 2013 87.5 201485 201582.5 201680 201777.5 201875 201971 202067 202163 202259 202354 202450 202546 202642 202738 202834 202930 203025 203121 203217 after 203215

(3)

Baseline

(A)Within 12 months after the date of enactment of this section, the Administrator shall promulgate regulations to establish the baseline for purposes of paragraph (2). The baseline shall be the sum, expressed in metric tons of carbon dioxide equivalents, of— (i)the annual average consumption of all class II substances in calendar years 2004, 2005, and 2006; plus (ii)the annual average quantity of all class II substances contained in imported products in calendar years 2004, 2005, and 2006. (B)Notwithstanding subparagraph (A), if the Administrator determines that the baseline is higher than 370 million metric tons of carbon dioxide equivalents, then the Administrator shall establish the baseline at 370 million metric tons of carbon dioxide equivalents. (C)Notwithstanding subparagraph (A), if the Administrator determines that the baseline is lower than 280 million metric tons of carbon dioxide equivalents, then the Administrator shall establish the baseline at 280 million metric tons of carbon dioxide equivalents. (4)

Distribution of allowances

(A)

In general

Pursuant to the regulations promulgated under paragraph (1)(A), for each calendar year beginning in 2012, the Administrator shall sell consumption allowances in accordance with this paragraph. (B)

Establishment of pools

The Administrator shall establish two allowance pools. Eighty percent of the consumption allowances available for a calendar year shall be placed in the producer-importer pool, and 20 percent of the consumption allowances available for a calendar year shall be placed in the secondary pool. (C)

Producer-importer pool

(i)

Auction

(I)For each calendar year, the Administrator shall offer for sale at auction the following percentage of the consumption allowances in the producer-importer pool: Calendar YearPercent Available for Auction 201210 2013 20 201430 201540 201650 201760 201870 201980 2020 and thereafter90

(II)Any person who produced or imported any class II substance during calendar year 2004, 2005, or 2006 may participate in the auction. No other persons may participate in the auction unless permitted to do so pursuant to subclause (III). (III)Not later than 3 years after the date of the initial auction and from time to time thereafter, the Administrator shall determine through rulemaking whether any persons who did not produce or import a class II substance during calendar year 2004, 2005, or 2006 will be permitted to participate in future auctions. The Administrator shall base this determination on the duration, consistency, and scale of such person’s purchases of consumption allowances in the secondary pool under subparagraph (D)(ii)(III), as well as economic or technical hardship and other factors deemed relevant by the Administrator. (IV)The Administrator shall set a minimum bid per consumption allowance of the following: (aa)For vintage year 2012, $1.00. (bb)For vintage year 2013, $1.20. (cc)For vintage year 2014, $1.40. (dd)For vintage year 2015, $1.60. (ee)For vintage year 2016, $1.80. (ff)For vintage year 2017, $2.00. (gg)For vintage year 2018 and thereafter, $2.00 adjusted for inflation after vintage year 2017 based upon the producer price index as published by the Department of Commerce. (ii)

Non-auction sale

(I)For each calendar year, as soon as practicable after auction, the Administrator shall offer for sale the remaining consumption allowances in the producer-importer pool at the following prices: (aa)A fee of $1.00 per vintage year 2012 allowance. (bb)A fee of $1.20 per vintage year 2013 allowance. (cc)A fee of $1.40 per vintage year 2014 allowance. (dd)For each vintage year 2015 allowance, a fee equal to the average of $1.10 and the auction clearing price for vintage year 2014 allowances. (ee)For each vintage year 2016 allowance, a fee equal to the average of $1.30 and the auction clearing price for vintage year 2015 allowances. (ff)For each vintage year 2017 allowance, a fee equal to the average of $1.40 and the auction clearing price for vintage year 2016 allowances. (gg)For each allowance of vintage year 2018 and subsequent vintage years, a fee equal to the auction clearing price for that vintage year. (II)The Administrator shall offer to sell the remaining consumption allowances in the producer-importer pool to producers of class II, group II substances and importers of class II, group II substances in proportion to their relative allocation share. (III)Such allocation share for such sale shall be determined by the Administrator using such producer’s or importer’s annual average data on class II substances from calendar years 2004, 2005, and 2006, on a carbon dioxide equivalent basis, and— (aa)shall be based on a producer’s production, plus importation, plus acquisitions and purchases from persons who produced class II substances in the United States during calendar year 2004, 2005, or 2006, less exportation, less transfers and sales to persons who produced class II substances in the United States during calendar year 2004, 2005, or 2006; and (bb)for an importer of class II substances that did not produce in the United States any class II substance during calendar years 2004, 2005, and 2006, shall be based on the importer’s importation less exportation.

For purposes of item (aa), the Administrator shall account for 100 percent of class II, group II substances and 60 percent of class II, group I substances. For purposes of item (bb), the Administrator shall account for 100 percent of class II, group II substances and 100 percent of class II, group I substances.

(IV)Any consumption allowances made available for nonauction sale to a specific producer or importer of class II, group II substances but not purchased by the specific producer or importer shall be made available for sale to any producer or importer of class II substances during calendar year 2004, 2005, or 2006. If demand for such consumption allowances exceeds supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances that may include pro rata shares, historic production and importation, economic or technical hardship, or other factors deemed relevant by the Administrator. If the supply of such consumption allowances exceeds demand, the Administrator may offer such consumption allowances for sale in the secondary pool as set forth in subparagraph (D). (D)

Secondary pool

(i)For each calendar year, as soon as practicable after the auction required in subparagraph (C), the Administrator shall offer for sale the consumption allowances in the secondary pool at the prices listed in subparagraph (C)(ii). (ii)The Administrator shall accept applications for purchase of secondary pool consumption allowances from— (I)importers of products containing class II, group II substances; (II)persons who purchased any class II, group II substance directly from a producer or importer of class II, group II substances for use in a product containing a class II, group II substance, a manufacturing process, or a reclamation process; (III)persons who did not produce or import a class II substance during calendar year 2004, 2005, or 2006, but who the Administrator determines have subsequently taken significant steps to produce or import a substantial quantity of any class II, group II substance; and (IV)persons who produced or imported any class II substance during calendar year 2004, 2005, or 2006. (iii)If the supply of consumption allowances in the secondary pool equals or exceeds the demand for consumption allowances in the secondary pool as presented in the applications for purchase, the Administrator shall sell the consumption allowances in the secondary pool to the applicants in the amounts requested in the applications for purchase. Any consumption allowances in the secondary pool not purchased in a calendar year may be rolled over and added to the quantity available in the secondary pool in the following year. (iv)If the demand for consumption allowances in the secondary pool as presented in the applications for purchase exceeds the supply of consumption allowances in the secondary pool, the Administrator shall sell the consumption allowances as follows: (I)The Administrator shall first sell the consumption allowances in the secondary pool to any importers of products containing class II, group II substances in the amounts requested in their applications for purchase. If the demand for such consumption allowances exceeds supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances among importers of products containing class II, group II substances that may include pro rata shares, historic importation, economic or technical hardship, or other factors deemed relevant by the Administrator. (II)The Administrator shall next sell any remaining consumption allowances to persons identified in subclauses (II) and (III) of clause (ii) in the amounts requested in their applications for purchase. If the demand for such consumption allowances exceeds remaining supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances among subclauses (II) and (III) applicants that may include pro rata shares, historic use, economic or technical hardship, or other factors deemed relevant by the Administrator. (III)The Administrator shall then sell any remaining consumption allowances to persons who produced or imported any class II substance during calendar year 2004, 2005, or 2006 in the amounts requested in their applications for purchase. If demand for such consumption allowances exceeds remaining supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances that may include pro rata shares, historic production and importation, economic or technical hardship, or other factors deemed relevant by the Administrator. (IV)Each person who purchases consumption allowances in a non-auction sale under this subparagraph shall be required to disclose the person or entity sponsoring or benefitting from the purchases if such person or entity is, in whole or in part, other than the purchaser or the purchaser’s employer. (E)

Discretion to withhold allowances

Nothing in this paragraph prevents the Administrator from exercising discretion to withhold and retire consumption allowances that would otherwise be available for auction or nonauction sale. Not later than 18 months after the date of enactment of this section, the Administrator shall promulgate regulations establishing criteria for withholding and retiring consumption allowances. (5)

Banking

A consumption allowance or destruction offset credit may be used to meet the compliance obligation requirements of paragraph (1) in— (A)the vintage year for the allowance or destruction offset credit; or (B)any calendar year subsequent to the vintage year for the allowance or destruction offset credit. (6)

Auctions

(A)

Initial regulations

Not later than 18 months after the date of enactment of this section, the Administrator shall promulgate regulations governing the auction of allowances under this section. Such regulations shall include the following requirements: (i)

Frequency; first auction

Auctions shall be held one time per year at regular intervals, with the first auction to be held no later than October 31, 2011. (ii)

Auction format

Auctions shall follow a single-round, sealed-bid, uniform price format. (iii)

Financial assurance

The Administrator may establish financial assurance requirements to ensure that auction participants can and will perform on their bids. (iv)

Disclosure of beneficial ownership

Publication of information

After the auction, the Administrator shall, in a timely fashion, publish the number of bidders, number of winning bidders, the quantity of allowances sold, and the auction clearing price. (vi)

Bidding limits in 2012

In the vintage year 2012 auction, no auction participant may, directly or in concert with another participant, bid for or purchase more allowances offered for sale at the auction than the greater of— (I)the number of allowances which, when added to the number of allowances available for purchase by the participant in the producer-importer pool non-auction sale, would equal the participant’s annual average consumption of class II, group II substances in calendar years 2004, 2005, and 2006; or (II)the number of allowances equal to the product of— (aa)1.20 multiplied by the participant’s allocation share of the producer-importer pool non-auction sale as determined under paragraph (4)(C)(ii); and (bb)the number of vintage year 2012 allowances offered at auction. (vii)

Bidding limits in 2013

In the vintage year 2013 auction, no auction participant may, directly or in concert with another participant, bid for or purchase more allowances offered for sale at the auction than the product of— (I)1.15 multiplied by the ratio of the total number of vintage year 2012 allowances purchased by the participant from the auction and from the producer-importer pool non-auction sale to the total number of vintage year 2012 allowances in the producer-importer pool; and (II)the number of vintage year 2013 allowances offered at auction. (viii)

Bidding limits in subsequent years

In the auctions for vintage year 2014 and subsequent vintage years, no auction participant may, directly or in concert with another participant, bid for or purchase more allowances offered for sale at the auction than the product of— (I)1.15 multiplied by the ratio of the highest number of allowances required to be held by the participant in any of the three prior vintage years to meet its compliance obligation under paragraph (1) to the total number of allowances in the producer-importer pool for such vintage year; and (II)the number of allowances offered at auction for that vintage year. (ix)

Other requirements

The Administrator may include in the regulations such other requirements or provisions as the Administrator considers necessary to promote effective, efficient, transparent, and fair administration of auctions under this section. (B)

Revision of regulations

The Administrator may, at any time, revise the initial regulations promulgated under subparagraph (A) based on the Administrator’s experience in administering allowance auctions by promulgating new regulations. Such revised regulations need not meet the requirements identified in subparagraph (A) if the Administrator determines that an alternative auction design would be more effective, taking into account factors including costs of administration, transparency, fairness, and risks of collusion or manipulation. In determining whether and how to revise the initial regulations under this paragraph, the Administrator shall not consider maximization of revenues to the Federal Government. (C)

Delegation or contract

Pursuant to regulations under this section, the Administrator may, by delegation or contract, provide for the conduct of auctions under the Administrator’s supervision by other departments or agencies of the Federal Government or by nongovernmental agencies, groups, or organizations. (7)

Payments for allowances

(A)

Initial regulations

Not later than 18 months after the date of enactment of this section, the Administrator shall promulgate regulations governing the payment for allowances purchased in auction and non-auction sales under this section. Such regulations shall include the requirement that, in the event that full payment for purchased allowances is not made on the date of purchase, equal payments shall be made one time per calendar quarter with all payments for allowances of a vintage year made by the end of that vintage year. (B)

Revision of regulations

The Administrator may, at any time, revise the initial regulations promulgated under subparagraph (A) based on the Administrator’s experience in administering collection of payments by promulgating new regulations. Such revised regulations need not meet the requirements identified in subparagraph (A) if the Administrator determines that an alternative payment structure or frequency would be more effective, taking into account factors including cost of administration, transparency, and fairness. In determining whether and how to revise the initial regulations under this paragraph, the Administrator shall not consider maximization of revenues to the Federal Government. (C)

Penalties for non-payment

Failure to pay for purchased allowances in accordance with the regulations promulgated pursuant to this paragraph shall be a violation of the requirements of subsection (b). Section 113(c)(3) shall apply in the case of any person who knowingly fails to pay for purchased allowances in accordance with the regulations promulgated pursuant to this paragraph. (8)

Imported products

If the United States becomes a party or otherwise adheres to a multilateral agreement, including any amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer, which restricts the production or consumption of class II, group II substances— (A)as of the date on which such agreement or amendment enters into force, it shall no longer be unlawful for any person to import from a party to such agreement or amendment any product containing any class II, group II substance whose production or consumption is regulated by such agreement or amendment without holding one consumption allowance or one destruction offset credit for each carbon dioxide equivalent ton of the class II, group II substance; (B)the Administrator shall promulgate regulations within 12 months of the date the United States becomes a party or otherwise adheres to such agreement or amendment, or the date on which such agreement or amendment enters into force, whichever is later, to establish a new baseline for purposes of paragraph (2), which new baseline shall be the original baseline less the carbon dioxide equivalent of the annual average quantity of any class II substances regulated by such agreement or amendment contained in products imported from parties to such agreement or amendment in calendar years 2004, 2005, and 2006; (C)as of the date on which such agreement or amendment enters into force, no person importing any product containing any class II, group II substance may, directly or in concert with another person, purchase any consumption allowances for sale by the Administrator for the importation of products from a party to such agreement or amendment that contain any class II, group II substance restricted by such agreement or amendment; and (D)the Administrator may adjust the two allowance pools established in paragraph (4) such that up to 90 percent of the consumption allowances available for a calendar year are placed in the producer-importer pool with the remaining consumption allowances placed in the secondary pool. (9)

Offsets

(A)

Chlorofluorocarbon destruction

Within 18 months after the date of enactment of this section, the Administrator shall promulgate regulations to provide for the issuance of offset credits for the destruction, in the calendar year 2012 or later, of chlorofluorocarbons in the United States. The Administrator shall establish and distribute to the destroying entity a quantity of destruction offset credits equal to 0.8 times the number of metric tons of carbon dioxide equivalents of reduction achieved through the destruction. No destruction offset credits shall be established for the destruction of a class II, group II substance. (B)

Definition

For purposes of this paragraph, the term destruction means the conversion of a substance by thermal, chemical, or other means to another substance with little or no carbon dioxide equivalent value and no ozone depletion potential. (C)

Regulations

The regulations promulgated under this paragraph shall include standards and protocols for project eligibility, certification of destroyers, monitoring, tracking, destruction efficiency, quantification of project and baseline emissions and carbon dioxide equivalent value, and verification. The Administrator shall ensure that destruction offset credits represent real and verifiable destruction of chlorofluorocarbons or other class I or class II, group I, substances authorized under subparagraph (D). (D)

Other substances

The Administrator may promulgate regulations to add to the list of class I and class II, group I, substances that may be destroyed for destruction offset credits, taking into account a candidate substance’s carbon dioxide equivalent value, ozone depletion potential, prevalence in banks in the United States, and emission rates, as well as the need for additional cost containment under the class II, group II cap and the integrity of the class II, group II cap. The Administrator shall not add a class I or class II, group I substance to the list if the consumption of the substance has not been completely phased-out internationally (except for essential use exemptions or other similar exemptions) pursuant to the Montreal Protocol. (E)

Extension of offsets

(i)At any time after the Administrator promulgates regulations pursuant to subparagraph (A), the Administrator may, pursuant to the requirements of part D of title VII and based on the carbon dioxide equivalent value of the substance destroyed, add the types of destruction projects authorized to receive destruction offset credits under this paragraph to the list of types of projects eligible for offset credits under section 733. If such projects are added to the list under section 733, the issuance of offset credits for such projects under part D of title VII shall be governed by the requirements of such part D, while the issuance of offset credits for such projects under this paragraph shall be governed by the requirements of this paragraph. Nothing in this paragraph shall affect the issuance of offset credits under section 740. (ii)The Administrator shall not make the addition under clause (i) unless the Administrator finds that insufficient destruction is occurring or is projected to occur under this paragraph and that the addition would increase destruction. (iii)In no event shall more than one destruction offset credit be issued under title VII and this section for the destruction of the same quantity of a substance. (10)

Legal status of allowances and credits

None of the following constitutes a property right: (A)A production or consumption allowance. (B)A destruction offset credit. (c)

Deadlines for compliance

Notwithstanding the deadlines specified for class II substances in sections 608, 609, 610, 612, and 613 that occur prior to January 1, 2009, the deadline for promulgating regulations under those sections for class II, group II substances shall be January 1, 2012. (d)

Exceptions for essential uses

Notwithstanding any phase down of production and consumption required by this section, to the extent consistent with any applicable multilateral agreement to which the United States is a party or otherwise adheres, the Administrator may provide the following exceptions for essential uses: (1)

Medical devices

The Administrator, after notice and opportunity for public comment, and in consultation with the Commissioner of the Food and Drug Administration, may provide an exception for the production and consumption of class II, group II substances solely for use in medical devices. (2)

Aviation and space vehicle safety

The Administrator, after notice and opportunity for public comment, may authorize the production and consumption of limited quantities of class II, group II substances solely for the purposes of aviation or space vehicle safety if either the Administrator of the Federal Aviation Administration or the Administrator of the National Aeronautics and Space Administration, in consultation with the Administrator, determines that no safe and effective substitute has been developed and that such authorization is necessary for aviation or space flight safety purposes. (e)

Developing countries

Notwithstanding any phase down of production required by this section, the Administrator, after notice and opportunity for public comment, may authorize the production of limited quantities of class II, group II substances in excess of the amounts otherwise allowable under this section solely for export to, and use in, developing countries. Any production authorized under this subsection shall be solely for purposes of satisfying the basic domestic needs of such countries as provided in applicable international agreements, if any, to which the United States is a party or otherwise adheres. (f)

National security; fire suppression, etc

The provisions of subsection (f) and paragraphs (1) and (2) of subsection (g) of section 604 shall apply to any consumption and production phase down of class II, group II substances in the same manner and to the same extent, consistent with any applicable international agreement to which the United States is a party or otherwise adheres, as such provisions apply to the substances specified in such subsection. (g)

Accelerated schedule

In lieu of section 606, the provisions of paragraphs (1), (2), and (3) of this subsection shall apply in the case of class II, group II substances. (1)

In general

The Administrator shall promulgate initial regulations not later than 18 months after the date of enactment of this section, and revised regulations any time thereafter, which establish a schedule for phasing down the consumption (and, if the condition in subsection (b)(1)(B) is met, the production) of class II, group II substances that is more stringent than the schedule set forth in this section if, based on the availability of substitutes, the Administrator determines that such more stringent schedule is practicable, taking into account technological achievability, safety, and other factors the Administrator deems relevant, or if the Montreal Protocol, or any applicable international agreement to which the United States is a party or otherwise adheres, is modified or established to include a schedule or other requirements to control or reduce production, consumption, or use of any class II, group II substance more rapidly than the applicable schedule under this section. (2)

Petition

Any person may submit a petition to promulgate regulations under this subsection in the same manner and subject to the same procedures as are provided in section 606(b). (3)

Inconsistency

If the Administrator determines that the provisions of this section regarding banking, allowance rollover, or destruction offset credits create a significant potential for inconsistency with the requirements of any applicable international agreement to which the United States is a party or otherwise adheres, the Administrator may promulgate regulations restricting the availability of banking, allowance rollover, or destruction offset credits to the extent necessary to avoid such inconsistency. (h)

Exchange

Section 607 shall not apply in the case of class II, group II substances. Production and consumption allowances for class II, group II substances may be freely exchanged or sold but may not be converted into allowances for class II, group I substances. (i)

Labeling

(1)In applying section 611 to products containing or manufactured with class II, group II substances, in lieu of the words destroying ozone in the upper atmosphere on labels required under section 611 there shall be substituted the words contributing to global warming. (2)The Administrator may, through rulemaking, exempt from the requirements of section 611 products containing or manufactured with class II, group II substances determined to have little or no carbon dioxide equivalent value compared to other substances used in similar products. (j)

Nonessential products

For the purposes of section 610, class II, group II substances shall be regulated under section 610(b), except that in applying section 610(b) the word hydrofluorocarbon shall be substituted for the word chlorofluorocarbon and the term class II, group II shall be substituted for the term class I. Class II, group II substances shall not be subject to the provisions of section 610(d). (k)

International transfers

In the case of class II, group II substances, in lieu of section 616, this subsection shall apply. To the extent consistent with any applicable international agreement to which the United States is a party or otherwise adheres, including any amendment to the Montreal Protocol, the United States may engage in transfers with other parties to such agreement or amendment under the following conditions: (1)The United States may transfer production allowances to another party to such agreement or amendment if, at the time of the transfer, the Administrator establishes revised production limits for the United States accounting for the transfer in accordance with regulations promulgated pursuant to this subsection. (2)The United States may acquire production allowances from another party to such agreement or amendment if, at the time of the transfer, the Administrator finds that the other party has revised its domestic production limits in the same manner as provided with respect to transfers by the United States in the regulations promulgated pursuant to this subsection. (l)

Relationship to other laws

(1)

State laws

For purposes of section 116, the requirements of this section for class II, group II substances shall be treated as requirements for the control and abatement of air pollution. (2)

Multilateral agreements

Section 614 shall apply to the provisions of this section concerning class II, group II substances, except that for the words Montreal Protocol there shall be substituted the words Montreal Protocol, or any applicable multilateral agreement to which the United States is a party or otherwise adheres that restricts the production or consumption of class II, group II substances, and for the words Article 4 of the Montreal Protocol there shall be substituted any provision of such multilateral agreement regarding trade with non-parties. (3)

Federal facilities

For purposes of section 118, the requirements of this section for class II, group II substances and corresponding State, interstate, and local requirements, administrative authority, and process and sanctions shall be treated as requirements for the control and abatement of air pollution within the meaning of section 118. (m)

Carbon dioxide equivalent value

(1)In lieu of section 602(e), the provisions of this subsection shall apply in the case of class II, group II substances. Simultaneously with establishing the list of class II, group II substances, and simultaneously with any addition to that list, the Administrator shall publish the carbon dioxide equivalent value of each listed class II, group II substance, based on a determination of the number of metric tons of carbon dioxide that makes the same contribution to global warming over 100 years as 1 metric ton of each class II, group II substance. (2)Not later than February 1, 2017, and not less than every 5 years thereafter, the Administrator shall— (A)review, and if appropriate, revise the carbon dioxide equivalent values established for class II, group II substances based on a determination of the number of metric tons of carbon dioxide that makes the same contributions to global warming over 100 years as 1 metric ton of each class II, group II substance; and (B)publish in the Federal Register the results of that review and any revisions. (3)A revised determination published in the Federal Register under paragraph (2)(B) shall take effect for production of class II, group II substances, consumption of class II, group II substances, and importation of products containing class II, group II substances starting on January 1 of the first calendar year starting at least 9 months after the date on which the revised determination was published. (4)The Administrator may decrease the frequency of review and revision under paragraph (2) if the Administrator determines that such decrease is appropriate in order to synchronize such review and revisions with any similar review process carried out pursuant to the United Nations Framework Convention on Climate Change, an agreement negotiated under that convention, The Vienna Convention for the Protection of the Ozone Layer, or an agreement negotiated under that convention, except that in no event shall the Administrator carry out such review and revision any less frequently than every 10 years. (n)

Reporting requirements

In lieu of subsections (b) and (c) of section 603, paragraphs (1) and (2) of this subsection shall apply in the case of class II, group II substances: (1)

In general

On a quarterly basis, or such other basis (not less than annually) as determined by the Administrator, each person who produced, imported, or exported a class II, group II substance, or who imported a product containing a class II, group II substance, shall file a report with the Administrator setting forth the carbon dioxide equivalent amount of the substance that such person produced, imported, or exported, as well as the amount that was contained in products imported by that person, during the preceding reporting period. Each such report shall be signed and attested by a responsible officer. If all other reporting is complete, no such report shall be required from a person after April 1 of the calendar year after such person permanently ceases production, importation, and exportation of the substance, as well as importation of products containing the substance, and so notifies the Administrator in writing. If the United States becomes a party or otherwise adheres to a multilateral agreement, including any amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer, that restricts the production or consumption of class II, group II substances, then, if all other reporting is complete, no such report shall be required from a person with respect to importation from parties to such agreement or amendment of products containing any class II, group II substance restricted by such agreement or amendment, after April 1 of the calendar year following the year during which such agreement or amendment enters into force. (2)

Baseline reports for class II, group II substances

(A)

In general

Unless such information has been previously reported to the Administrator, on the date on which the first report under paragraph (1) of this subsection is required to be filed, each person who produced, imported, or exported a class II, group II substance, or who imported a product containing a class II substance, (other than a substance added to the list of class II, group II substances after the publication of the initial list of such substances under this section), shall file a report with the Administrator setting forth the amount of such substance that such person produced, imported, exported, or that was contained in products imported by that person, during each of calendar years 2004, 2005, and 2006. (B)

Producers

In reporting under subparagraph (A), each person who produced in the United States a class II substance during calendar year 2004, 2005, or 2006 shall— (i)report all acquisitions or purchases of class II substances during each of calendar years 2004, 2005, and 2006 from all other persons who produced in the United States a class II substance during calendar year 2004, 2005, or 2006, and supply evidence of such acquisitions and purchases as deemed necessary by the Administrator; and (ii)report all transfers or sales of class II substances during each of calendar years 2004, 2005, and 2006 to all other persons who produced in the United States a class II substance during calendar year 2004, 2005, or 2006, and supply evidence of such transfers and sales as deemed necessary by the Administrator. (C)

Added substances

In the case of a substance added to the list of class II, group II substances after publication of the initial list of such substances under this section, each person who produced, imported, exported, or imported products containing such substance in calendar year 2004, 2005, or 2006 shall file a report with the Administrator within 180 days after the date on which such substance is added to the list, setting forth the amount of the substance that such person produced, imported, and exported, as well as the amount that was contained in products imported by that person, in calendar years 2004, 2005, and 2006. (o)

Stratospheric ozone and climate protection fund

(1)

In general

There is established in the Treasury of the United States a Stratospheric Ozone and Climate Protection Fund. (2)

Deposits

The Administrator shall deposit all proceeds from the auction and non-auction sale of allowances under this section into the Stratospheric Ozone and Climate Protection Fund. (3)

Use

Amounts deposited into the Stratospheric Ozone and Climate Protection Fund shall be available, subject to appropriations, exclusively for the following purposes: (A)

Recovery, recycling, and reclamation

The Administrator may utilize funds to establish a program to incentivize the recovery, recycling, and reclamation of any Class II substances in order to reduce emissions of such substances. (B)

Multilateral fund

Best-in-class appliances deployment program

The Secretary of Energy is authorized to utilize funds to carry out the purposes of section 214 of the American Clean Energy and Security Act of 2009. (D)

Low global warming product transition assistance program

(i)

In general

The Administrator, in consultation with the Secretary of Energy, may utilize funds in fiscal years 2012 through 2022 to establish a program to provide financial assistance to manufacturers of products containing class II, group II substances to facilitate the transition to products that contain or utilize alternative substances with no or low carbon dioxide equivalent value and no ozone depletion potential. (ii)

Definition

In this subparagraph, the term products means refrigerators, freezers, dehumidifiers, air conditioners, foam insulation, technical aerosols, fire protection systems, and semiconductors. (iii)

Financial assistance

The Administrator may provide financial assistance to manufacturers pursuant to clause (i) for— (I)the design and configuration of new products that use alternative substances with no or low carbon dioxide equivalent value and no ozone depletion potential; and (II)the redesign and retooling of facilities for the manufacture of products in the United States that use alternative substances with no or low carbon dioxide equivalent value and no ozone depletion potential. (iv)

Reports

For any fiscal year during which the Administrator provides financial assistance pursuant to this subparagraph, the Administrator shall submit a report to the Congress within 3 months of the end of such fiscal year detailing the amounts, recipients, specific purposes, and results of the financial assistance provided.

(b)

Table of contents

The table of contents of title VI of the Clean Air Act (42 U.S.C. 7671 et seq.) is amended by adding the following new item at the end thereof:

Sec. 619. Hydrofluorocarbons (HFCs).

(c)

Fire suppression agents

Section 605(a) of the Clean Air Act (42 U.S.C. 7671(a)) is amended— (1)by striking or at the end of paragraph (2); (2)by striking the period at the end of paragraph (3) and inserting ; or; and (3)by adding the following new paragraph after paragraph (3):

(4)is listed as acceptable for use as a fire suppression agent for nonresidential applications in accordance with section 612(c).

(d)

Motor vehicle air conditioners

(1)Section 609(e) of the Clean Air Act (42 U.S.C. 7671h(e)) is amended by inserting , group I after each reference to class II in the text and heading. (2)Section 609 of the Clean Air Act (42 U.S.C. 7671h) is amended by adding the following new subsection after subsection (e):

(f)

Class II, group II substances

(1)

Repair

The Administrator may promulgate regulations establishing requirements for repair of motor vehicle air conditioners prior to adding a class II, group II substance. (2)

Small containers

(A)The Administrator may promulgate regulations establishing servicing practices and procedures for recovery of class II, group II substances from containers which contain less than 20 pounds of such class II, group II substances. (B)Not later than 18 months after enactment of this subsection, the Administrator shall either promulgate regulations requiring that containers which contain less than 20 pounds of a class II, group II substance be equipped with a device or technology that limits refrigerant emissions and leaks from the container and limits refrigerant emissions and leaks during the transfer of refrigerant from the container to the motor vehicle air conditioner or issue a determination that such requirements are not necessary or appropriate. (C)Not later than 18 months after enactment of this subsection, the Administrator shall promulgate regulations establishing requirements for consumer education materials on best practices associated with the use of containers which contain less than 20 pounds of a class II, group II substance and prohibiting the sale or distribution, or offer for sale or distribution, of any class II, group II substance in any container which contains less than 20 pounds of such class II, group II substance, unless consumer education materials consistent with such requirements are displayed and available at point-of-sale locations, provided to the consumer, or included in or on the packaging of the container which contain less than 20 pounds of a class II, group II substance. (D)The Administrator may, through rulemaking, extend the requirements established under this paragraph to containers which contain 30 pounds or less of a class II, group II substance if the Administrator determines that such action would produce significant environmental benefits. (3)

Restriction of sales

Effective January 1, 2014, no person may sell or distribute or offer to sell or distribute or otherwise introduce into interstate commerce any motor vehicle air conditioner refrigerant in any size container unless the substance has been found acceptable for use in a motor vehicle air conditioner under section 612.

(e)

Safe alternatives policy

Section 612(e) of the Clean Air Act (42 U.S.C. 7671k(e)) is amended by inserting or class II after each reference to class I.

333.

Black carbon

(a)

Definition

As used in this section, the term black carbon means primary light absorbing aerosols, as defined by the Administrator, based on the best available science. (b)

Black Carbon Abatement Report

Not later than 1 year after the date of enactment of this section, the Administrator shall, in consultation with other appropriate Federal agencies, submit to Congress a report regarding black carbon emissions. The report shall include the following: (1)A summary of the current information and research that identifies— (A)an inventory of the major sources of black carbon emissions in the United States and throughout the world, including— (i)an estimate of the quantity of current and projected future emissions; and (ii)the net climate forcing of the emissions from such sources, including consideration of co-emissions of other pollutants; (B)effective and cost-effective control technologies, operations, and strategies for additional domestic and international black carbon emissions reductions, such as diesel retrofit technologies on existing on-road, non-road, and stationary engines and programs to address residential cookstoves, and forest and agriculture-based burning; (C)potential metrics and approaches for quantifying the climatic effects of black carbon emissions, including its radiative forcing and warming effects, that may be used to compare the climate benefits of different mitigation strategies, including an assessment of the uncertainty in such metrics and approaches; and (D)the public health and environmental benefits associated with additional controls for black carbon emissions. (2)Recommendations regarding— (A)development of additional emissions monitoring techniques and capabilities, modeling, and other black carbon-related areas of study; (B)areas of focus for additional study of technologies, operations, and strategies with the greatest potential to reduce emissions of black carbon and associated public health, economic, and environmental impacts associated with these emissions; and (C)actions, in addition to those identified by the Administrator under section 851 of the Clean Air Act (as added by subsection (c)), the Federal Government may take to encourage or require reductions in black carbon emissions. (c)

Black Carbon Mitigation

Title VIII of the Clean Air Act, as added by section 331 of this Act, and amended by section 222 of this Act, is further amended by adding after part D the following new part:

Black Carbon

851.

Black carbon

(a)

Domestic Black Carbon Mitigation

Not later than 18 months after the date of enactment of this section, the Administrator, taking into consideration the public health and environmental impacts of black carbon emissions, including the effects on global and regional warming, the Arctic, and other snow and ice-covered surfaces, shall propose regulations under the existing authorities of this Act to reduce emissions of black carbon or propose a finding that existing regulations promulgated pursuant to this Act adequately regulate black carbon emissions. Not later than 2 years after the date of enactment of this section, the Administrator shall promulgate final regulations under the existing authorities of this Act or finalize the proposed finding. Such regulations shall not apply to specific types, classes, categories, or other suitable groupings of emissions sources that the Administrator finds are subject to adequate regulation. (b)

International Black Carbon Mitigation

(1)

Report

Not later than 1 year after the date of enactment of this section, the Administrator, in coordination with the Secretary of State and other appropriate Federal agencies, shall transmit a report to Congress on the amount, type, and direction of all present United States financial, technical, and related assistance to foreign countries to reduce, mitigate, and otherwise abate black carbon emissions. (2)

Other opportunities

The report required under paragraph (1) shall also identify opportunities and recommendations, including action under existing authorities, to achieve significant black carbon emission reductions in foreign countries through technical assistance or other approaches to— (A)promote sustainable solutions to bring clean, efficient, safe, and affordable stoves, fuels, or both stoves and fuels to residents of developing countries that are reliant on solid fuels such as wood, dung, charcoal, coal, or crop residues for home cooking and heating, so as to help reduce the public health, environmental, and economic impacts of black carbon emissions from these sources by— (i)identifying key regions for large-scale demonstration efforts, and key partners in each such region; and (ii)developing for each such region a large-scale implementation strategy with a goal of collectively reaching 20,000,000 homes over 5 years with interventions that will— (I)increase stove efficiency by over 50 percent (or such other goal as determined by the Administrator); (II)reduce emissions of black carbon by over 60 percent (or such other goal as determined by the Administrator); and (III)reduce the incidence of severe pneumonia in children under 5 years old by over 30 percent (or such other goal as determined by the Administrator); (B)make technological improvements to diesel engines and provide greater access to fuels that emit less or no black carbon; (C)reduce unnecessary agricultural or other biomass burning where feasible alternatives exist; (D)reduce unnecessary fossil fuel burning that produces black carbon where feasible alternatives exist; (E)reduce other sources of black carbon emissions; and (F)improve capacity to achieve greater compliance with existing laws to address black carbon emissions.

(d)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section.

334.

States

Section 116 of the Clean Air Act (42 U.S.C. 7416) is amended by adding the following at the end thereof: For the purposes of this section, the phrases standard or limitation respecting emissions of air pollutants and requirements respecting control or abatement of air pollution shall include any provision to: cap greenhouse gas emissions, require surrender to the State or a political subdivision thereof of emission allowances or offset credits established or issued under this Act, and require the use of such allowances or credits as a means of demonstrating compliance with requirements established by a State or political subdivision thereof..

335.

State programs

Title VIII of the Clean Air Act, as added by section 331 of this Act and amended by several sections of this Act, is further amended by adding after part E (as added by section 333(c) of this Act) the following new part:

Miscellaneous

861.

State programs

Notwithstanding section 116, no State or political subdivision thereof shall implement or enforce a cap and trade program that covers any capped emissions emitted during the years 2012 through 2017. For purposes of this section, the term cap and trade program means a system of greenhouse gas regulation under which a State or political subdivision issues a limited number of tradable instruments in the nature of emission allowances and requires that sources within its jurisdiction surrender such tradeable instruments for each unit of greenhouse gases emitted during a compliance period. For purposes of this section, a cap-and-trade program does not include a target or limit on greenhouse gas emissions adopted by a State or political subdivision that is implemented other than through the issuance and surrender of a limited number of tradable instruments in the nature of emission allowances, nor does it include any other standard, limit, regulation, or program to reduce greenhouse gas emissions that is not implemented through the issuance and surrender of a limited number of tradeable instruments in the nature of emission allowances. For purposes of this section, the term cap and trade program does not include, among other things, fleet-wide motor vehicle emission requirements that allow greater emissions with increased vehicle production, or requirements that fuels, or other products, meet an average pollution emission rate or lifecycle greenhouse gas standard.

862.

Grants for support of air pollution control programs

The Administrator is authorized to make grants to air pollution control agencies pursuant to section 105 for purposes of assisting in the implementation of programs to address global warming established under the Safe Climate Act.

336.

Enforcement

(a)

Remand

Section 307(b) of the Clean Air Act (42 U.S.C. 7607(b)) is amended by adding the following new paragraphs at the end thereof:

(3)If the court determines that any action of the Administrator is arbitrary, capricious, or otherwise unlawful, the court may remand such action, without vacatur, if vacatur would impair or delay protection of the environment or public health or otherwise undermine the timely achievement of the purposes of this Act. (4)If the court determines that any action of the Administrator is arbitrary, capricious, or otherwise unlawful, and remands the matter to the Administrator, the Administrator shall complete final action on remand within an expeditious time period no longer than the time originally allowed for the action or 1 year, whichever is less, unless the court on motion determines that a shorter or longer period is necessary, appropriate, and consistent with the purposes of this Act. The court of appeals shall have jurisdiction to enforce a deadline for action on remand under this subparagraph.

(b)

Petition for reconsideration

Section 307(d)(7)(B) of the Clean Air Act (42 U.S.C. 7607(d)(7)(B)) is amended as follows: (1)By inserting after the second sentence If a petition for reconsideration is filed, the Administrator shall take final action on such petition, including promulgation of final action either revising or determining not to revise the action for which reconsideration is sought, within 150 days after the petition is received by the Administrator or the petition shall be deemed denied for the purpose of judicial review.. (2)By amending the third sentence to read as follows: Such person may seek judicial review of such denial, or of any other final action, by the Administrator, in response to a petition for reconsideration, in the United States court of appeals for the appropriate circuit (as provided in subsection (b))..

337.

Conforming amendments

(a)

Federal enforcement

Section 113 of the Clean Air Act (42 U.S.C. 7413) is amended as follows: (1)In subsection (a)(3), by striking or title VI, and inserting title VI, title VII, or title VIII. (2)In subsection (b), by striking or a major stationary source and inserting a major stationary source, or a covered EGU under title VIII in the material preceding paragraph (1). (3)In paragraph (2) of subsection (b), by striking or title VI and inserting title VI, title VII, or title VIII. (4)In subsection (c)— (A)in the first sentence of paragraph (1), by striking or title VI (relating to stratospheric ozone control), and inserting title VI, title VII, or title VIII,; and (B)in the first sentence of paragraph (3), by striking or VI and inserting VI, VII, or VIII. (5)In subsection (d)(1)(B), by striking or VI and inserting VI, VII, or VIII. (6)In subsection (f), in the first sentence, by striking or VI and inserting VI, VII, or VIII. (b)

Retention of state authority

Section 116 of the Clean Air Act (42 U.S.C. 7416) is amended as follows: (1)By striking and 233 and inserting 233. (2)By striking of moving sources) and inserting of moving sources), and 861 (preempting certain State greenhouse gas programs for a limited time). (c)

Inspections, monitoring, and entry

Section 114(a) of the Clean Air Act (42 U.S.C. 7414(a)) is amended by striking section 112, and all that follows through (ii) and inserting the following: section 112, or any regulation of greenhouse gas emissions under title VII or VIII, (ii). (d)

Enforcement

Subsection (f) of section 304 of the Clean Air Act (42 U.S.C. 7604(f)) is amended as follows: (1)By striking ; or at the end of paragraph (3) thereof and inserting a comma. (2)By striking the period at the end of paragraph (4) thereof and inserting , or. (3)By adding the following after paragraph (4) thereof:

(5)any requirement of title VII or VIII.

(e)

Administrative proceedings and judicial review

Section 307 of the Clean Air Act (42 U.S.C. 7607) is amended as follows: (1)In subsection (a), by striking , or section 306 and inserting section 306, or title VII or VIII. (2)In subsection (b)(1)— (A)by striking ,, and inserting , in each place such punctuation appears; and (B)by striking section 120, in the first sentence and inserting section 120, any final action under title VII or VIII,. (3)In subsection (d)(1) by amending subparagraph (S) to read as follows:

(S)the promulgation or revision of any regulation under title VII or VIII,

338.

Davis-Bacon compliance

(a)

In general

Notwithstanding any other provision of law and in a manner consistent with other provisions in this Act, to receive emission allowances or funding under this Act, or the amendments made by this Act, the recipient shall provide reasonable assurances that all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to this Act, or the amendments made by this Act, or by any entity established in accordance with this Act, or the amendments made by this Act, including the Carbon Storage Research Corporation, will be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the Davis-Bacon Act). With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. (b)

Exemption

Neither subsection (a) nor the requirements of subchapter IV of chapter 31 of title 40, United States Code, shall apply to retrofitting of the following: (1)Single family homes (both attached and detached) under section 202. (2)Owner-occupied residential units in larger buildings that have their own dedicated space-conditioning systems under section 202. (3)Residential buildings (as defined in section 202(a)(5)) if designed for residential use by less than 4 families. (4)Nonresidential buildings (as defined in section 202(a)(1)) if the net interior space of such nonresidential building is less than 6,500 square feet.

339.

National strategy for domestic biological carbon sequestration

Not later than 1 year after the date of enactment of this Act, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy, the Secretary of Agriculture, the Secretary of the Interior, and the heads of such other relevant Federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal, regulatory, technological, and other barriers to maximizing the potential for sustainable biological sequestration of carbon within the United States.

340.

Reducing acid rain and mercury pollution

Not later than 18 months after the date of enactment of this Act, the Administrator shall submit to Congress a report that analyzes the effects of different carbon dioxide reduction strategies and technologies on the emissions of mercury, sulfur dioxide, and nitrogen oxide, which cause acid rain, particulate matter, ground level ozone, mercury contamination, and other environmental problems. The report shall assess a variety of carbon reduction technologies, including the application of various carbon capture and sequestration technologies for both new and existing power plants. The report shall assess the current scientific and technical understanding of the interplay between the various technologies and emissions of air pollutants, identify hurdles to strategies that could cost-effectively reduce emissions of multiple pollutants, and make appropriate recommendations.

Carbon Market Assurance

341.

Carbon market assurance

(a)

Amendment

The Federal Power Act (16 U.S.C. 791a and following) is amended by adding at the end the following:

Carbon Market Assurance

401.

Oversight and assurance of carbon markets

(a)

Definitions

In this section: (1)

Covered entity

The term covered entity shall have the meaning given in section 700 of the Clean Air Act. (2)

Regulated allowance

The term regulated allowance means any emission allowance, compensatory allowance, offset credit, or Federal renewable electricity credit established or issued under the American Clean Energy and Security Act of 2009. (3)

Regulated instrument

The term regulated instrument means a regulated allowance or a regulated allowance derivative. (b)

Regulated allowance market

(1)

Authority

The Commission shall promulgate regulations for the establishment, operation, and oversight of markets for regulated allowances not later than 18 months after the date of the enactment of this section, and from time to time thereafter as may be appropriate. (2)

Regulations

The regulations promulgated pursuant to paragraph (1) shall— (A)provide for effective and comprehensive market oversight; (B)prohibit fraud, market manipulation, and excess speculation, and provide measures to limit unreasonable fluctuation in the prices of regulated allowances; (C)facilitate compliance with title VII of the Clean Air Act by covered entities; (D)ensure market transparency and recordkeeping deemed necessary and appropriate by the Commission to provide for efficient price discovery; prevention of fraud, market manipulation, and excess speculation; and compliance with title VII of the Clean Air Act and section 610 of the Public Utility Regulatory Policies Act of 1978; (E)as necessary, ensure that position limitations for individual market participants are established with respect to each class of regulated allowances; (F)as necessary, ensure that margin requirements are established for each class of regulated allowances; (G)provide for the formation and operation of a fair, orderly and liquid national market system that allows for the best execution in the trading of regulated allowances; (H)limit or eliminate counterparty risks, market power concentration risks, and other risks associated with trading regulated allowances outside of trading facilities; and (I)establish standards for qualification as, and operation of, trading facilities for regulated allowances; (J)establish standards for qualification as, and operation of, clearing organizations for trading facilities for regulated allowances; and (K)include such other requirements as necessary to preserve market integrity and facilitate compliance with title VII of the Clean Air Act and section 610 of the Public Utility Regulatory Policies Act of 1978 and the regulations promulgated under such title and such section. (3)

Enforcement

(A)

In general

If the Commission determines, after notice and an opportunity for a hearing on the record, that any entity has violated any rule or order issued by the Commission under this subsection, the Commission may issue an order— (i)prohibiting the entity from trading on a trading facility for regulated allowances registered with the Commission, and requiring all such facilities to refuse the entity all privileges for such period as may be specified in the order; (ii)if the entity is registered with the Commission in any capacity, suspending for a period of not more than 6 months, or revoking, the registration of the entity; (iii)assessing the entity a civil penalty of not more than $1,000,000 per day per violation for as long as the violation continues (and in determining the amount of a civil penalty, the Commission shall take into account the nature and seriousness of the violation and the efforts to remedy the violation); and (iv)requiring disgorgement of unjust profits, restitution to entities harmed by the violation as determined by the Commission, or both. (B)

Authority to suspend or revoke registration

The Commission may suspend for a period of not more than 6 months, or revoke, the registration of a trading facility for regulated allowances or of a clearing organization registered by the Commission if, after notice and opportunity for a hearing on the record, the Commission finds that— (i)the entity violated any rule or order issued by the Commission under this subsection; or (ii)a director, officer, employee, or agent of the entity has violated any rule or order issued by the Commission under this subsection. (C)

Cease and desist proceedings

(i)

In general

If the Commission determines that any entity may be violating, may have violated, or may be about to violate any provision of this part, or any regulation promulgated by, or any restriction, condition, or order made or imposed by, the Commission under this Act, and if the Commission finds that the alleged violation or threatened violation, or the continuation of the violation, is likely to result in significant harm to covered entities or market participants, or significant harm to the public interest, the Commission may issue a temporary order requiring the entity— (I)to cease and desist from the violation or threatened violation; (II)to take such action as is necessary to prevent the violation or threatened violation; and (III)to prevent, as the Commission determines to be appropriate— (aa)significant harm to covered entities or market participants; (bb)significant harm to the public interest; and (cc)frustration of the ability of the Commission to conduct the proceedings or to redress the violation at the conclusion of the proceedings. (ii)

Timing of entry

An order issued under clause (i) shall be entered only after notice and opportunity for a hearing, unless the Commission determines that notice and hearing before entry would be impracticable or contrary to the public interest. (iii)

Effective date

A temporary order issued under clause (i) shall— (I)become effective upon service upon the entity; and (II)unless set aside, limited, or suspended by the Commission or a court of competent jurisdiction, remain effective and enforceable pending the completion of the proceedings. (D)

Proceedings regarding dissipation or conversion of assets

(i)

In general

In a proceeding involving an alleged violation of a regulation or order promulgated or issued by the Commission, if the Commission determines that the alleged violation or related circumstances are likely to result in significant dissipation or conversion of assets, the Commission may issue a temporary order requiring the respondent to take such action as is necessary to prevent the dissipation or conversion of assets. (ii)

Timing of entry

Effective date

A temporary order issued under clause (i) shall— (I)become effective upon service upon the respondent; and (II)unless set aside, limited, or suspended by the Commission or a court of competent jurisdiction, remain effective and enforceable pending the completion of the proceedings. (E)

Review of temporary orders

(i)

Application for review

At any time after a respondent has been served with a temporary cease-and-desist order pursuant to subparagraph (C) or order regarding the dissipation or conversion of assets pursuant to subparagraph (D), the respondent may apply to the Commission to have the order set aside, limited, or suspended. (ii)

No prior hearing

If a respondent has been served with a temporary order entered without a prior hearing of the Commission— (I)the respondent may, not later than 10 days after the date on which the order was served, request a hearing on the application; and (II)the Commission shall hold a hearing and render a decision on the application at the earliest practicable time. (iii)

Judicial review

(I)

In general

An entity shall not be required to submit a request for rehearing of a temporary order before seeking judicial review in accordance with this subparagraph. (II)

Timing of review

Not later than 10 days after the date on which a respondent is served with a temporary cease-and-desist order entered with a prior hearing of the Commission, or 10 days after the date on which the Commission renders a decision on an application and hearing under clause (i) with respect to any temporary order entered without such a prior hearing— (aa)the respondent may obtain a review of the order in a United States circuit court having jurisdiction over the circuit in which the respondent resides or has a principal place of business, or in the United States Court of Appeals for the District of Columbia Circuit, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order; and (bb)the court shall have jurisdiction to enter such an order. (III)

No prior hearing

A respondent served with a temporary order entered without a prior hearing of the Commission may not apply to the applicable court described in subclause (II) except after a hearing and decision by the Commission on the application of the respondent under clauses (i) and (ii). (iv)

Procedures

Section 222 and Part III shall apply to— (I)an application for review of an order under clause (i); and (II)an order subject to review under clause (iii). (v)

No automatic stay of temporary order

The commencement of proceedings under clause (iii) shall not, unless specifically ordered by the court, operate as a stay of the order of the Commission. (F)

Actions to collect civil penalties

If any person fails to pay a civil penalty assessed under this subsection after an order assessing the penalty has become final and unappealable, the Commission shall bring an action to recover the amount of the penalty in any appropriate United States district court. (4)

Transaction fees

(A)

In general

The Commission shall, in accordance with this paragraph, establish and collect transaction fees designed to recover the costs to the Federal Government of the supervision and regulation of regulated allowance markets and market participants, including related costs for enforcement activities, policy and rulemaking activities, administration, legal services, and international regulatory activities. (B)

Initial fee rate

Each trading facility on or through which regulated allowances are transacted shall pay to the Commission a fee at a rate of not more than $15 per $1,000,000 of the aggregate dollar amount of sales of regulated allowances transacted through the facility. (C)

Annual adjustment of fee rate

The Commission shall, on an annual basis— (i)assess the rate at which fees are to be collected as necessary to meet the cost recovery requirement in subparagraph (A); and (ii)consistent with subparagraph (B), adjust the rate as necessary in order to meet the requirement. (D)

Report on adequacy of fees in recovering costs

The Commission, shall, on an annual basis, report to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate on the adequacy of the transaction fees in providing funding for the Commission to regulate the regulated allowance markets. (5)

Judicial review

Judicial review of actions taken by the Commission under this subsection shall be pursuant to part III. (6)

Additional employees report and appointment

Within 18 months after the date of the enactment of this section, the Commission shall submit to the President, the Committee on Energy and Commerce of the House of Representatives, and the Committee on Energy and Natural Resources of the Senate, a report that contains recommendations as to how many additional employees would be necessary to provide robust oversight and enforcement of the regulations promulgated under this subsection. As soon as practicable after the completion of the report, subject to appropriations, the Commission shall appoint the recommended number of additional employees for such purposes. (c)

Working group

(1)

Establishment

Not later than 30 days after the date of the enactment of this section, the President shall establish an interagency working group on carbon market oversight, which shall include the Administrator of the Environmental Protection Agency and representatives of other relevant agencies, to make recommendations to the Commodity Futures Trading Commission regarding proposed regulations for the establishment, operation, and oversight of markets for regulated allowance derivatives. (2)

Report

Not later than 180 days after the date of the enactment of this section, and biennially thereafter, the interagency working group shall submit a written report to the President and Congress that includes its recommendations to the Commodity Futures Trading Commission regarding proposed regulations for the establishment, operation, and oversight of markets for regulated allowance derivatives and any recommendations to Congress for statutory changes needed to ensure the establishment, operation, and oversight of transparent, fair, stable, and efficient markets for regulated allowance derivatives. (d)

Penalty for fraud and false or misleading statements

A person convicted under section 1041 of title 18, United States Code, may be prohibited from holding or trading regulated allowances for a period of not more than 5 years pursuant to the regulations promulgated under this section, except that, if the person is a covered entity, the person shall be allowed to hold sufficient regulated allowances to meet its compliance obligations. (e)

Relation to State law

Nothing in this section shall preclude, diminish or qualify any authority of a State or political subdivision thereof to adopt or enforce any unfair competition, antitrust, consumer protection, securities, commodities or any other law or regulation, except that no such State law or regulation may relieve any person of any requirement otherwise applicable under this section. (f)

Market reports

(1)

Collection and analysis of information

The Commission, in conjunction with the Commodity Futures Trading Commission, shall, on a continuous basis, analyze the following information on the functioning of the markets for regulated instruments established under this part: (A)The status of, and trends in, the markets, including prices, trading volumes, transaction types, and trading channels and mechanisms. (B)Spikes, collapses, and volatility in prices of regulated instruments, and the causes therefor. (C)The relationship between the market for regulated allowances and allowance derivatives, and the spot and futures markets for energy commodities, including electricity. (D)The economic effects of the markets, including to macro- and micro-economic effects of unexpected significant increases and decreases in the price of regulated instruments. (E)Any changes in the roles, activities, or strategies of various market participants. (F)Regional, industrial, and consumer responses to the markets, and energy investment responses to the markets. (G)Any other issue related to the markets that the Commission, and the Commodity Futures Trading Commission deem appropriate. (2)

Annual reports to the Congress

Not later than 1 month after the end of each calendar year, the Commission, in conjunction with the Commodity Futures Trading Commission, shall submit to the President, the Committee on Agriculture and Committee on Energy and Commerce of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry and Committee on Energy and Natural Resources of the Senate, and make available to the public, a report on the matters described in paragraph (1) with respect to the year, including recommendations for any administrative or statutory measures the Commission and the Commodity Futures Trading Commission consider necessary to address any threats to the transparency, fairness, or integrity of the markets in regulated instruments.

402.

Applicability of Part III provisions

(a)

Sections 301, 304, and 306

Sections 301, 304, and 306 shall not apply to this part. (b)

Section 315

In applying section 315(a) to this part, the words person or entity shall be substituted for the words licensee or public utility. In applying section 315(b) to this part, the words an entity shall be substituted for the words a licensee or public utility and the words such entity shall be substituted for the words such licensee or public utility. (c)

Section 316

Section 316(a) shall not apply to section 401(d).

(b)

Criminal prohibition against fraud and false or misleading statements

(1)Chapter 47 of title 18, United States Code, is amended by adding at the end the following:

1041.

Fraud and false statements in connection with regulated allowances

Whoever in connection with a transaction involving a regulated allowance (as defined in section 401(a) of the Federal Power Act, as added by section 341 of the American Clean Energy and Security Act of 2009), knowingly— (1)makes or uses a materially false or misleading statement, writing, representation, scheme, or device; or (2)falsifies, conceals, or covers up by any trick, scheme, or device any material fact,

shall be fined not more than $5,000,000 (or $25,000,000 in the case of an organization) or imprisoned not more than 20 years, or both.

(2)The table of sections at the beginning of chapter 47 of title 18, United States Code, is amended by adding at the end the following new item:

1041. Fraud and false statements in connection with regulated allowances.

342.

Carbon derivative markets

(a)Section 1a(14) of the Commodity Exchange Act (7 U.S.C. 1a(14)) is amended by striking or an agricultural commodity and inserting , an agricultural commodity, or any emission allowance, compensatory allowance, offset credit, or Federal renewable electricity credit established or issued under the American Clean Energy and Security Act of 2009. (b)Section 4(c) of such Act (7 U.S.C. 6(c)) is amended by adding at the end the following:

(6)This subsection does not apply to any agreement, contract, or transaction for any emission allowance, compensatory allowance, offset credit, or Federal renewable electricity credit established or issued under the American Clean Energy and Security Act of 2009.

Additional Market Assurance

351.

Regulation of certain transactions in derivatives involving energy commodities

(a)

Energy commodity defined

Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended— (1)in paragraph (14), by inserting , an energy commodity, after excluded commodity; (2)by redesignating paragraphs (13) through (21) and paragraphs (22) through (34) as paragraphs (14) through (22) and paragraphs (24) through (36), respectively; (3)by inserting after paragraph (12) the following:

(13)

Energy commodity

The term energy commodity means— (A)coal; (B)crude oil, gasoline, diesel fuel, jet fuel, heating oil, and propane; (C)electricity (excluding financial transmission rights which are subject to regulation and oversight by the Federal Energy Regulatory Commission); (D)natural gas; and (E)any other substance (other than an excluded commodity, a metal, or an agricultural commodity) that is used as a source of energy, as the Commission, in its discretion, deems appropriate.

; and

(4)by inserting after paragraph (22) (as so redesignated by paragraph (2) of this subsection) the following:

(23)

Included energy transaction

The term included energy transaction means a contract, agreement, or transaction in an energy commodity for future delivery that provides for a delivery point of the energy commodity in the United States or a territory or possession of the United States, or that is offered or transacted on or through a computer terminal located in the United States.

(b)

Extension of regulatory authority to swaps involving energy transactions

Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by inserting or an energy commodity after agricultural commodity. (c)

Elimination of exemption for over-the-counter swaps involving energy commodities

Section 2(h)(1) of such Act (7 U.S.C. 2(h)(1)) is amended by inserting (other than an energy commodity) after exempt commodity. (d)

Extension of regulatory authority to included energy transactions on foreign boards of trade

Section 4 of such Act (7 U.S.C. 6) is amended— (1)in subsection (a), by inserting , and which is not an included energy transaction after territories or possessions the 2nd place it appears; and (2)in subsection (b), by adding at the end the following: The preceding sentence shall not apply with respect to included energy transactions.. (e)

Limitation of general exemptive authority of the CFTC with respect to included energy transactions

(1)

In general

Section 4(c) of such Act (7 U.S.C. 6(c)) is amended by adding at the end the following:

(6)The Commission may not exempt any included energy transaction from the requirements of subsection (a), unless the Commission provides 60 days advance notice to the Congress and the Position Limit Energy Advisory Group and solicits public comment about the exemption request and any proposed Commission action.

(2)

Nullification of no-action letter exemptions to certain requirements applicable to included energy transactions

Beginning 180 days after the date of the enactment of this Act, any exemption provided by the Commodity Futures Trading Commission that has allowed included energy transactions (as defined in section 1a(13) of the Commodity Exchange Act) to be conducted without regard to the requirements of section 4(a) of such Act shall be null and void. (f)

Requirement to establish uniform speculative position limits for energy transactions

(1)

In general

Section 4a(a) of such Act (7 U.S.C. 6a(a)) is amended— (A)by inserting (1) after (a); (B)by inserting after the 2nd sentence the following: With respect to energy transactions, the Commission shall fix limits on the aggregate number of positions which may be held by any person for each month across all markets subject to the jurisdiction of the Commission.; (C)in the 4th sentence by inserting , consistent with the 3rd sentence, after Commission; and (D)by adding after and below the end the following:

(2)(A)Not later than 60 days after the date of the enactment of this paragraph, the Commission shall convene a Position Limit Energy Advisory Group consisting of representatives from— (i)7 predominantly commercial short hedgers of the actual energy commodity for future delivery; (ii)7 predominantly commercial long hedgers of the actual energy commodity for future delivery; (iii)4 non-commercial participants in markets for energy commodities for future delivery; and (iv)each designated contract market or derivatives transaction execution facility upon which a contract in the energy commodity for future delivery is traded, and each electronic trading facility that has a significant price discovery contract in the energy commodity. (B)Not later than 60 days after the date on which the advisory group is convened under subparagraph (A), and annually thereafter, the advisory group shall submit to the Commission advisory recommendations regarding the position limits to be established in paragraph (1). (C)The Commission shall have exclusive authority to grant exemptions for bona fide hedging transactions and positions from position limits imposed under this Act on energy transactions.

(2)

Conforming amendments

(A)

Significant price discovery contracts

Section 2(h)(7) of such Act (7 U.S.C. 2(h)(7)) is amended— (i)in subparagraph (A)— (I)by inserting of this paragraph and section 4a(a) after (B) through (D); and (II)by inserting of this paragraph before the period; and (ii)in subparagraph (C)(ii)(IV)— (I)in the heading, by striking

limitations or

; and (II)by striking position limitations or. (B)

Contracts traded on or through designated contract markets

Section 5(d)(5) of such Act (7 U.S.C. 7(d)(5)) is amended— (i)in the heading by striking

limitations or

; and (ii)by striking position limitations or. (C)

Contracts traded on or through derivatives transaction execution facilities

Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4)) is amended— (i)in the heading by striking

limitations or

; and (ii)by striking position limits or. (g)

Elimination of the swaps loophole

Section 4a(c) of such Act (7 U.S.C. 6a(c)) is amended— (1)by inserting (1) after (c); and (2)by adding after and below the end the following:

(2)For the purposes of contracts of sale for future delivery and options on such contracts or commodities, the Commission shall define what constitutes a bona fide hedging transaction or position as a transaction or position that— (A)(i)represents a substitute for transactions made or to be made or positions taken or to be taken at a later time in a physical marketing channel; (ii)is economically appropriate to the reduction of risks in the conduct and management of a commercial enterprise; and (iii)arises from the potential change in the value of— (I)assets that a person owns, produces, manufactures, processes, or merchandises or anticipates owning, producing, manufacturing, processing, or merchandising; (II)liabilities that a person owns or anticipates incurring; or (III)services that a person provides, purchases, or anticipates providing or purchasing; or (B)reduces risks attendant to a position resulting from a transaction that— (i)was executed pursuant to subsection (d), (g), (h)(1), or (h)(2) of section 2, or an exemption issued by the Commission by rule, regulation or order; and (ii)was executed opposite a counterparty for which the transaction would qualify as a bona fide hedging transaction pursuant to paragraph (2)(A) of this subsection.

(h)

Detailed reporting and disaggregation of market data

Section 4 of such Act (7 U.S.C. 6) is amended by adding at the end the following:

(e)

Detailed reporting and disaggregation of market data

(1)

Index traders and swap dealers reporting

The Commission shall issue a proposed rule defining and classifying index traders and swap dealers (as those terms are defined by the Commission) for purposes of data reporting requirements and setting routine detailed reporting requirements for any positions of such entities in contracts traded on designated contract markets, over-the-counter markets, derivatives transaction execution facilities, foreign boards of trade subject to section 4(f), and electronic trading facilities with respect to significant price discovery contracts not later than 120 days after the date of the enactment of this subsection, and issue a final rule within 180 days after such date of enactment. (2)

Disaggregation of index funds and other data in markets

Subject to section 8 and beginning within 60 days of the issuance of the final rule required by paragraph (1), the Commission shall disaggregate and make public weekly— (A)the number of positions and total notional value of index funds and other passive, long-only and short-only positions (as defined by the Commission) in all markets to the extent such information is available; and (B)data on speculative positions relative to bona fide physical hedgers in those markets to the extent such information is available. (3)

Disclosure of identity of holders of positions in indexes in excess of position limits

The Commission shall include in its weekly Commitment of Trader reports the identity of each person who holds a position in an index in excess of a limit imposed under section 4i.

(i)

Authority to set limits to prevent excessive speculation in indexes

(1)

In general

Section 4a of such Act (7 U.S.C. 6a) is amended by adding at the end the following:

(f)The provisions of this section shall apply to the amounts of trading which may be done or positions which may be held by any person under contracts of sale of an index for future delivery on or subject to the rules of any contract market, derivatives transaction execution facility, or over-the-counter market, or on an electronic trading facility with respect to a significant price discovery contract, in the same manner in which this section applies to contracts of sale of a commodity for future delivery.

(2)

Regulations

The Commodity Futures Trading Commission shall issue regulations under section 4a(f) of the Commodity Exchange Act within 180 days after the date of the enactment of this Act.

352.

No effect on authority of the Federal Energy Regulatory Commission

Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended by adding at the end the following:

(j)This Act shall not be interpreted to affect the jurisdiction of the Federal Energy Regulatory Commission with respect to the authority of the Federal Energy Regulatory Commission under the Federal Power Act (16 U.S.C. 791a et seq.), the Natural Gas Act (15 U.S.C. 717 et seq.), or other law to obtain information, carry out enforcement actions, or otherwise carry out the responsibilities of the Federal Energy Regulatory Commission.

353.

Inspector General of the Commodity Futures Trading Commission

(a)

Elevation of office

(1)

Inclusion of cftc in definition of establishment

(A)Section 12(1) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking or the Federal Cochairpersons of the Commissions established under section 15301 of title 40, United States Code; and inserting the Federal Cochairpersons of the Commissions established under section 15301 of title 40, United States Code; or the Chairman of the Commodity Futures Trading Commission;. (B)Section 12(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking or the Commissions established under section 15301 of title 40, United States Code, and inserting the Commissions established under section 15301 of title 40, United States Code, or the Commodity Futures Trading Commission,. (2)

Exclusion of cftc from definition of designated federal entity

Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking the Commodity Futures Trading Commission,. (b)

Provisions Relating to Pay and Personnel Authority

(1)

Provision relating to the position of inspector general of the cftc

In the case of the Inspector General of the Commodities Futures Trading Commission, subsections (b) and (c) of section 4 of the Inspector General Reform Act of 2008 (Public Law 110–409) shall apply in the same manner as if the Commission was a designated Federal entity under section 8G. The Inspector General of the Commodities Futures Trading Commission shall not be subject to section 3(e) of such Act. (2)

Provision relating to other personnel

Notwithstanding paragraphs (7) and (8) of section 6(a) of the Inspector General Act of 1978 (5 U.S.C. App.), the Inspector General of the Commodities Futures Trading Commission may select, appoint, and employ such officers and employees as may be necessary for carrying out the functions, powers, and duties of the Office of Inspector General and to obtain the temporary or intermittent services of experts or consultants or an organization of experts or consultants, subject to the applicable laws and regulations that govern such selections, appointments, and employment, and the obtaining of such services, within the Commodities Futures Trading Commission. (c)

Effective date; transition rule

(1)

Effective date

The amendments made by this section shall take effect 30 days after the date of the enactment of this Act. (2)

Transition rule

An individual serving as Inspector General of the Commodity Futures Trading Commission on the effective date of this section pursuant to an appointment made under section 8G of the Inspector General Act of 1978 (5 U.S.C. App.)— (A)may continue so serving until the President makes an appointment under section 3(a) of such Act consistent with the amendments made by this section; and (B)shall, while serving under subparagraph (A), remain subject to the provisions of section 8G of such Act which apply with respect to the Commodity Futures Trading Commission.

354.

Settlement and clearing through registered derivatives clearing organizations

(a)

In general

(1)

Application to excluded derivative transactions

(A)Section 2(d)(1) of the Commodity Exchange Act (7 U.S.C. 2(d)(1)) is amended— (i)by striking and at the end of subparagraph (A); (ii)by striking the period at the end of subparagraph (B) and inserting ; and; and (iii)by adding at the end the following:

(C)except as provided in section 4(f), the agreement, contract, or transaction is settled and cleared through a derivatives clearing organization registered with the Commission.

(B)Section 2(d)(2) of such Act (7 U.S.C. 2(d)(2)) is amended— (i)by striking and at the end of subparagraph (B); (ii)by striking the period at the end of subparagraph (C) and inserting ; and; and (iii)by adding at the end the following:

(D)except as provided in section 4(f), the agreement, contract, or transaction is settled and cleared through a derivatives clearing organization registered with the Commission.

(2)

Application to certain swap transactions

Section 2(g) of such Act (7 U.S.C. 2(g)) is amended— (A)by striking and at the end of paragraph (2); (B)by striking the period at the end of paragraph (3) and inserting ; and; and (C)by adding at the end the following:

(4)except as provided in section 4(f), settled and cleared through a derivatives clearing organization registered with the Commission.

(3)

Application to certain transactions in exempt commodities

(A)Section 2(h)(1) of such Act ( 7 U.S.C. 2(h)(1)) is amended— (i)by striking and at the end of subparagraph (A); (ii)by striking the period at the end of subparagraph (B) and inserting ; and; and (iii)by adding at the end the following:

(C)except as provided in section 4(f), is settled and cleared through a derivatives clearing organization registered with the Commission.

(B)Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is amended— (i)by striking and at the end of subparagraph (A); (ii)by striking the period at the end of subparagraph (B) and inserting ; and; and (iii)by adding at the end the following:

(C)except as provided in section 4(f), settled and cleared through a derivatives clearing organization registered with the Commission.

(4)

General exemptive authority

Section 4(c)(1) of such Act (7 U.S.C. 6(c)(1)) is amended by inserting the agreement, contract, or transaction, except as provided in section 4(h), will be settled and cleared through a derivatives clearing organization registered with the Commission and before the Commission determines. (5)

Conforming amendment relating to significant price discovery contracts

Section 2(h)(7)(D) of such Act (7 U.S.C. 2(h)(7)(D)) is amended by striking the designation and heading for the subparagraph and all that follows through As part of and inserting the following:

(D)

Review of implementation

As part of

(b)

Alternatives to clearing through designated clearing organizations

Section 4 of such Act (7 U.S.C. 6), as amended by section 351(h) of this Act, is amended by adding at the end the following:

(f)

Alternatives to clearing through designated clearing organizations

(1)

Settlement and clearing through certain other regulated entities

An agreement, contract, or transaction, or class thereof, relating to an excluded commodity, that would otherwise be required to be settled and cleared by section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or 2(h)(3)(C) of this Act, or subsection (c)(1) of this section may be settled and cleared through an entity listed in subsections (a) or (b) of section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991. (2)

Waiver of clearing requirement

(A)The Commission, in its discretion, may exempt an agreement, contract, or transaction, or class thereof, that would otherwise be required by section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or 2(h)(3)(C) of this Act, or subsection (c)(1) of this section to be settled and cleared through a derivatives clearing organization registered with the Commission from such requirement. (B)In granting exemptions pursuant to subparagraph (A), the Commission shall consult with the Securities and Exchange Commission and the Board of Governors of the Federal Reserve System regarding exemptions that relate to excluded commodities or entities for which the Securities Exchange Commission or the Board of Governors of the Federal Reserve System serve as the primary regulator. (C)Before granting an exemption pursuant to subparagraph (A), the Commission shall find that the agreement, contract, or transaction, or class thereof— (i)is highly customized as to its material terms and conditions; (ii)is transacted infrequently; (iii)does not serve a significant price-discovery function in the marketplace; and (iv)is being entered into by parties who can demonstrate the financial integrity of the agreement, contract, or transaction and their own financial integrity, as such terms and standards are determined by the Commission. The standards may include, with respect to any federally regulated financial entity for which net capital requirements are imposed, a net capital requirement associated with any agreement, contract, or transaction subject to an exemption from the clearing requirement that is higher than the net capital requirement that would be associated with such a transaction were it cleared. (D)Any agreement, contract, or transaction, or class thereof, which is exempted pursuant to subparagraph (A) shall be reported to the Commission in a manner designated by the Commission, or to such other entity the Commission deems appropriate. (E)The Commission, the Securities and Exchange Commission and the Board of Governors of the Federal Reserve System shall enter into a memorandum of understanding by which the information reported to the Commission pursuant to subparagraph (D) with regard to excluded commodities or entities for which the Securities Exchange Commission or the Board of Governors of the Federal Reserve System serve as the primary regulator may be provided to the other agencies. (g)

Spot and forward exclusion

The settlement and clearing requirements of section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C), or 4(c)(1) shall not apply to an agreement, contract, or transaction of any cash commodity for immediate or deferred shipment or delivery, as defined by the Commission.

(c)

Additional requirements applicable to applicants for registration as a derivative clearing organization

Section 5b(c)(2) of such Act (7 U.S.C. 7a–1(c)(2)) is amended by adding at the end the following:

(O)

Disclosure of general information

The applicant shall disclose publicly and to the Commission information concerning— (i)the terms and conditions of contracts, agreements, and transactions cleared and settled by the applicant; (ii)the conventions, mechanisms, and practices applicable to the contracts, agreements, and transactions; (iii)the margin-setting methodology and the size and composition of the financial resource package of the applicant; and (iv)other information relevant to participation in the settlement and clearing activities of the applicant. (P)

Daily publication of trading information

The applicant shall make public daily information on settlement prices, volume, and open interest for contracts settled or cleared pursuant to the requirements of section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C) or 4(c)(1) of this Act by the applicant if the Commission determines that the contracts perform a significant price discovery function for transactions in the cash market for the commodity underlying the contracts. (Q)

Fitness standards

The applicant shall establish and enforce appropriate fitness standards for directors, members of any disciplinary committee, and members of the applicant, and any other persons with direct access to the settlement or clearing activities of the applicant, including any parties affiliated with any of the persons described in this subparagraph.

(d)

Amendments

(1)Section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4422) is amended by adding at the end the following:

(c)

Clearing requirement

A multilateral clearing organization described in subsections (a) or (b) of this section shall comply with requirements similar to the requirements of sections 5b and 5c of the Commodity Exchange Act.

(2)Section 407 of the Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27e) is amended by inserting and the settlement and clearing requirements of sections 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C), and 4(c)(1) of such Act after the clearing of covered swap agreements. (e)

Effective date

The amendments made by this section shall take effect 150 days after the date of the enactment of this Act. (f)

Transition rule

Any agreement, contract, or transaction entered into before the date of the enactment of this Act or within 150 days after such date of enactment, in reliance on subsection (d), (g), (h)(1), or (h)(3) of section 2 of the Commodity Exchange Act or any other exemption issued by the Commission Futures Trading Commission by rule, regulation, or order shall, within 90 days after such date of enactment, unless settled and cleared through an entity registered with the Commission as a derivatives clearing organization or another clearing entity pursuant to section 4(f) of such Act, be reported to the Commission in a manner designated by the Commission, or to such other entity as the Commission deems appropriate.

355.

Limitation on eligibility to purchase a credit default swap

(a)

In general

Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is amended by adding at the end the following:

(h)

Limitation on eligibility to purchase a credit default swap

It shall be unlawful for any person to enter into a credit default swap unless the person— (1)owns a credit instrument which is insured by the credit default swap; (2)would experience financial loss if an event that is the subject of the credit default swap occurs with respect to the credit instrument; and (3)meets such minimum capital adequacy standards as may be established by the Commission, in consultation with the Board of Governors of the Federal Reserve System, or such more stringent minimum capital adequacy standards as may be established by or under the law of any State in which the swap is originated or entered into, or in which possession of the contract involved takes place.

(b)

Elimination of preemption of State bucketing laws regarding naked credit default swaps

Section 12(e)(2)(B) of such Act (7 U.S.C. 16(e)(2)(B)) is amended by inserting (other than a credit default swap in which the purchaser of the swap would not experience financial loss if an event that is the subject of the swap occurred) before that is excluded. (c)

Definition of credit default swap

Section 1a of such Act (7 U.S.C. 1a), as amended by section 351(a) of this Act, is amended by adding at the end the following:

(37)

Credit default swap

The term credit default swap means a contract which insures a party to the contract against the risk that an entity may experience a loss of value as a result of an event specified in the contract, such as a default or credit downgrade. A credit default swap that is traded on or cleared by a registered entity shall be excluded from the definition of a security as defined in this Act and in section 2(a)(1) of the Securities Act of 1933 or section 3(a)(10) of the Securities Exchange Act of 1934, except it shall be deemed a security solely for purpose of enforcing prohibitions against insider trading in sections 10 and 16 of the Securities Exchange Act of 1934.

(d)

Effective date

The amendments made by this section shall be effective for credit default swaps (as defined in section 1a(37) of the Commodity Exchange Act) entered into after 60 days after the date of the enactment of this section.

356.

Transaction fees

(a)

In general

Section 12 of the Commodity Exchange Act (7 U.S.C. 16) is amended by redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively, and inserting after subsection (d) the following:

(e)

Clearing fees

(1)

In general

The Commission shall, in accordance with this subsection, charge and collect from each registered clearing organization, and each such organization shall pay to the Commission, transaction fees at a rate calculated to recover the costs to the Federal Government of the supervision and regulation of futures markets, except those directly related to enforcement. (2)

Fees assessed per side of cleared contracts

(A)

In general

The Commission shall determine the fee rate referred to in paragraph (1), and shall apply the fee rate per side of any transaction cleared. (B)

Authority to delegate

The Commission may determine the procedures by which the fee rate is to be applied on the transactions subject to the fee, or delegate the authority to make the determination to any appropriate derivatives clearing organization. (3)

Exemptions

The Commission may not impose a fee under paragraph (1) on— (A)a class of contracts or transactions if the Commission finds that it is in the public interest to exempt the class from the fee; or (B)a contract or transaction cleared by a registered derivatives clearing organization that is— (i)subject to fees under section 31 of the Securities Exchange Act of 1934; or (ii)a security as defined in the Securities Act of 1933 or the Securities Exchange Act of 1934. (4)

Dates for payment of fees

The fees imposed under paragraph (1) shall be paid on or before— (A)March 15 of each year, with respect to transactions occurring on or after the preceding September 1 and on or before the preceding December 31; and (B)September 15 of each year, with respect to transactions occurring on or after the preceding January 1 and on or before the preceding August 31. (5)

Annual adjustment of fee rates

(A)

In general

Not later than April 30 of each fiscal year , the Commission shall, by order, adjust each fee rate determined under paragraph (2) for the fiscal year to a uniform adjusted rate that, when applied to the estimated aggregate number of cleared sides of transactions for the fiscal year, is reasonably likely to produce aggregate fee receipts under this subsection for the fiscal year equal to the target offsetting receipt amount for the fiscal year. (B)

Definitions

In subparagraph (A): (i)

Estimated aggregate number of cleared sides of transactions

The term estimated aggregate number of cleared sides of transactions means, with respect to a fiscal year, the aggregate number of cleared sides of transactions to be cleared by registered derivatives clearing organizations during the fiscal year, as estimated by the Commission, after consultation with the Office of Management and Budget, using the methodology required for making projections pursuant to section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985. (ii)

Target offsetting receipt amount

The term target offsetting receipt amount means, with respect to a fiscal year, the total level of Commission budget authority for all non-enforcement activities of the Commission, as contained in the regular appropriations Acts for the fiscal year. (C)

No judicial review

An adjusted fee rate prescribed under subparagraph (A) shall not be subject to judicial review. (6)

Publication

Not later than April 30 of each fiscal year, the Commission shall cause to be published in the Federal Register notices of the fee rates applicable under this subsection for the succeeding fiscal year, and any estimate or projection on which the fee rates are based. (7)

Establishment of futures and options transaction fee account; deposit of fees

There is established in the Treasury of the United States an account which shall be known as the Futures and Options Transaction Fee Account. All fees collected under this subsection for a fiscal year shall be deposited in the account. Amounts in the account are authorized to be appropriated to fund the expenditures of the Commission.

(b)

Effective date

The amendments made by subsection (a) shall apply to fiscal years beginning 30 or more days after the date of the enactment of this Act. (c)

Transition rule

If this section becomes law after March 31 and before September 1 of a fiscal year, then paragraphs (5)(A) and (6) of section 12(e) of the Commodity Exchange Act shall be applied, in the case of the 1st fiscal year beginning after the date of the enactment of this Act, by substituting August 31 for April 30.

357.

No effect on antitrust law or authority of the Federal Trade Commission

(a)Nothing in this subtitle shall be construed to modify, impair, or supersede the operation of any of the antitrust laws. For purposes of this subsection, the term “antitrust laws” has the meaning given it in subsection (a) of the 1st section of the Clayton Act (15 U.S.C. 12(a)), except that such term includes section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to the extent that such term applies to unfair methods of competition. (b)Nothing in this subtitle shall be construed to affect or diminish the jurisdiction or authority of the Federal Trade Commission with respect to its authorities under the Federal Trade Commission Act (15 U.S.C. 41 et seq.) or the Energy Independence and Security Act of 2007 (Public Law 110–140) to obtain information, to carry out enforcement activities, or otherwise to carry out the responsibilities of the Federal Trade Commission.

358.

Effect of derivatives regulatory reform legislation

(a)

Statutes

Upon the passage of legislation that includes derivatives regulatory reform, sections 351, 352, 354, 355, 356, and 357 shall be repealed. (b)

Regulations

Upon the passage of legislation that includes derivatives regulatory reform, any regulations promulgated under section 351, 352, 354, 355, 356, or 357 shall be considered null and void.

359.

Cease-and-desist authority

(a)

Natural Gas Act

Section 20 of the Natural Gas Act (15 U.S.C. 717s) is amended by adding the following at the end:

(e)

Cease-and-desist proceedings; temporary orders; authority of the commission

(1)

In general

If the Commission finds, after notice and opportunity for hearing, that any entity may be violating, may have violated, or may be about to violate any provision of this Act, or any rule, regulation, restriction, condition, or order made or imposed by the Commission under the authority of this Act, the Commission may publish its findings and issue an order requiring such entity, and any other entity that is, was, or would be a cause of the violation, due to an act or omission the entity knew or should have known would contribute to such violation, to cease and desist from committing or causing such violation and any future violation of the same provision, rule, or regulation. Such order may, in addition to requiring an entity to cease and desist from committing or causing a violation, require such entity to comply, to provide an accounting and disgorgement, or to take steps to effect compliance, with such provision, rule, or regulation, upon such terms and conditions and within such time as the Commission may specify in such order. Any such order may, as the Commission deems appropriate, require future compliance or steps to effect future compliance, either permanently or for such period of time as the Commission may specify. (2)

Timing of entry

An order issued under this subsection shall be entered only after notice and opportunity for a hearing, unless the Commission determines that notice and hearing prior to entry would be impracticable or contrary to the public interest. (f)

Hearing

The notice instituting proceedings pursuant to subsection (e) shall fix a hearing date not earlier than 30 days nor later than 60 days after service of the notice unless an earlier or a later date is set by the Commission with the consent of any respondent so served. (g)

Temporary order

Whenever the Commission determines that— (1)a respondent may take actions to dissipate or convert assets prior to the completion of the proceedings referred to in subsection (e), and such assets would be necessary to comply with or otherwise satisfy a final enforcement order of the Commission pursuant to alleged violations or threatened violations specified in the notice instituting proceedings; or (2)a respondent is engaged in actual or threatened violations of this Act or a Commission rule, regulation, restriction or order referred to in subsection (e),

the Commission may issue a temporary order requiring the respondent to take such action to prevent dissipation or conversion of assets, significant harm to energy consumers, or substantial harm to the public interest, frustration of the Commission’s ability to conduct the proceedings, or frustration of the Commission’s ability to redress said violation at the conclusion of the proceedings, as the Commission deems appropriate pending completion of such proceedings.

(h)

Review of temporary orders

(1)

Commission review

At any time after the respondent has been served with a temporary cease-and-desist order pursuant to subsection (g), the respondent may apply to the Commission to have the order set aside, limited, or suspended. If the respondent has been served with a temporary cease-and-desist order entered without a prior Commission hearing, the respondent may, within 10 days after the date on which the order was served, request a hearing on such application and the Commission shall hold a hearing and render a decision on such application at the earliest possible time. (2)

Judicial review

Within— (A)10 days after the date the respondent was served with a temporary cease-and-desist order entered with a prior Commission hearing; or (B)10 days after the Commission renders a decision on an application and hearing under paragraph (1),

with respect to any temporary cease-and-desist order entered without a prior Commission hearing, the respondent may apply to the United States circuit court having jurisdiction over the circuit in which the respondent resides or has its principal place of business, or to the United States Court of Appeals for the District of Columbia Circuit, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order, and the court shall have jurisdiction to enter such an order. A respondent served with a temporary cease-and-desist order entered without a prior Commission hearing may not apply to the court except after hearing and decision by the Commission on the respondent’s application under paragraph (1) of this subsection.

(3)

No automatic stay of temporary order

The commencement of proceedings under paragraph (2) of this subsection shall not, unless specifically ordered by the court, operate as a stay of the Commission’s order. (4)

Exclusive review

Sections 19(d) and 24 shall not apply to a temporary order entered pursuant to this section. (i)

Implementation

The Commission is authorized to adopt rules, regulations, and orders as it deems appropriate to implement this section.

(c)

Natural Gas Policy Act of 1978

Section 504 of the Natural Gas Policy Act of 1978 (15 U.S.C. 3414) is amended by adding the following at the end:

(d)

Cease-and-desist proceedings; temporary orders; authority of the Commission

(1)

In general

Timing of entry

Hearing

The notice instituting proceedings pursuant to paragraph (1) shall fix a hearing date not earlier than 30 days nor later than 60 days after service of the notice unless an earlier or a later date is set by the Commission with the consent of any respondent so served. (4)

Temporary order

Whenever the Commission determines that— (A)a respondent may take actions to dissipate or convert assets prior to the completion of the proceedings referred to in paragraph (1) and such assets would be necessary to comply with or otherwise satisfy a final enforcement order of the Commission pursuant to alleged violations or threatened violations specified in the notice instituting proceedings; or (B)a respondent is engaged in actual or threatened violations of this Act or a Commission rule, regulation, restriction or order referred to in paragraph (1),

(5)

Review of temporary orders

(A)

Commission review

At any time after the respondent has been served with a temporary cease-and-desist order pursuant to paragraph (4), the respondent may apply to the Commission to have the order set aside, limited, or suspended. If the respondent has been served with a temporary cease-and-desist order entered without a prior Commission hearing, the respondent may, within 10 days after the date on which the order was served, request a hearing on such application and the Commission shall hold a hearing and render a decision on such application at the earliest possible time. (B)

Judicial review

Within— (i)10 days after the date the respondent was served with a temporary cease-and-desist order entered with a prior Commission hearing; or (ii)10 days after the Commission renders a decision on an application and hearing under subparagraph (A), with respect to any temporary cease-and-desist order entered without a prior Commission hearing, the respondent may apply to the United States circuit court having jurisdiction over the circuit in which the respondent resides or has its principal place of business, or to the United States Court of Appeals for the District of Columbia Circuit, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order, and the court shall have jurisdiction to enter such an order. A respondent served with a temporary cease-and-desist order entered without a prior Commission hearing may not apply to the court except after hearing and decision by the Commission on the respondent’s application under paragraph (1) of this subsection. (C)

No automatic stay of temporary order

The commencement of proceedings under subparagraph (B) of this paragraph shall not, unless specifically ordered by the court, operate as a stay of the Commission’s order. (6)

Implementation

The Commission is authorized to adopt rules, regulations, and orders as it deems appropriate to implement this subsection.

360.

Presidential review of regulations

Not later than 24 months after the date of enactment of this Act, the President shall review the offset regulations and derivatives regulations promulgated pursuant to the American Clean Energy and Security Act of 2009. The President shall determine whether such regulations adequately protect the United States financial system from systemic risk.

<enum>IV</enum><header>Transitioning to a Clean Energy Economy</header> <subtitle id="HF220A116FA1E4E99B98D5608CC38F527"><enum>A</enum><header>Ensuring real reductions in industrial emissions</header> <section id="H848CE999B5B24E36A340AD82AF3D944D"><enum>401.</enum><header>Ensuring real reductions in industrial emissions</header><text display-inline="no-display-inline">Title VII of the Clean Air Act is amended by inserting after part E the following new part:</text> <quoted-block display-inline="no-display-inline" id="H4D768F7FBE9648C68F938742DBBF4775" style="OLC"> <part id="H1F20786D0BE64BBB917A43D9943F5E7D"><enum>F</enum><header>Ensuring real reductions in industrial emissions</header> <section display-inline="no-display-inline" id="H4F27D04A3B2142F18E3F3DC235F787F5"><enum>761.</enum><header>Purposes</header> <subsection id="H8E6A65E206E54B5F839D8FC4E86ECA80"><enum>(a)</enum><header>Purposes of part</header><text display-inline="yes-display-inline">The purposes of this part are—</text> <paragraph id="H1F86EC8256044195982A569AC4FB45C6"><enum>(1)</enum><text display-inline="yes-display-inline">to promote a strong global effort to significantly reduce greenhouse gas emissions, and, through this global effort, stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous anthropogenic interference with the climate system; and</text> </paragraph><paragraph id="HFD219E0C0EA641E288809747C9B663C2"><enum>(2)</enum><text>to prevent an increase in greenhouse gas emissions in countries other than the United States as a result of direct and indirect compliance costs incurred under this title.</text> </paragraph></subsection><subsection id="H4FA5745E26EB4733943C440F3CAC4F72"><enum>(b)</enum><header>Purposes of subpart 1</header><text>The purposes of subpart 1 are additionally—</text> <paragraph id="H264150545B6B402AACA5E24A5029EB7A"><enum>(1)</enum><text display-inline="yes-display-inline">to provide a rebate to the owners and operators of entities in domestic eligible industrial sectors for their greenhouse gas emission costs incurred under this title, but not for costs associated with other related or unrelated market dynamics;</text> </paragraph><paragraph id="H592A8EE704DB47ECBB0DF4D5CA4F3557"><enum>(2)</enum><text display-inline="yes-display-inline">to design such rebates in a way that will prevent carbon leakage while also rewarding innovation and facility-level investments in energy efficiency performance improvements; and</text> </paragraph><paragraph id="H2F54C29412584CF29411ACA2D0FDA2BE"><enum>(3)</enum><text>to eliminate or reduce distribution of emission allowances under subpart 1 when such distribution is no longer necessary to prevent carbon leakage from eligible industrial sectors.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H52AAE34DE9984D7CAECCD9913431F8A7"><enum>(c)</enum><header>Purposes of subpart 2</header><text>The purposes of subpart 2 are additionally—</text> <paragraph id="HBFCE220962F74E53B26F3F011D23AA6D"><enum>(1)</enum><text display-inline="yes-display-inline">to induce foreign countries, and, in particular, fast-growing developing countries, to take substantial action with respect to their greenhouse gas emissions consistent with the Bali Action Plan developed under the United Nations Framework Convention on Climate Change; and</text> </paragraph><paragraph id="H475D1B42674F42998DC85EDF4A57BEAF"><enum>(2)</enum><text>to ensure that the measures described in subpart 2 are designed and implemented in a manner consistent with applicable international agreements to which the United States is a party.</text> </paragraph></subsection></section><section commented="no" id="HC8820E745AFD420F8E3F25DCD67A8936"><enum>762.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text> <paragraph commented="no" id="HFCF5E5D64C254C64B6734F287C303743"><enum>(1)</enum><header>Carbon leakage</header><text display-inline="yes-display-inline">The term <quote>carbon leakage</quote> means any substantial increase (as determined by the Administrator) in greenhouse gas emissions by industrial entities located in other countries if such increase is caused by an incremental cost of production increase in the United States resulting from the implementation of this title.</text> </paragraph><paragraph commented="no" id="HC5616FF6D805448ABF4D3FE8D73F2075"><enum>(2)</enum><header>Covered good</header><text display-inline="yes-display-inline">The term <quote>covered good</quote> means a good that, as identified by the Administrator by regulation, is either—</text> <subparagraph commented="no" id="H349993761CC34BF9AF16D8377BF1C3EC"><enum>(A)</enum><text>entered under a heading or subheading of the Harmonized Tariff Schedule of the United States that corresponds to the NAICS code for an eligible industrial sector, as established in the concordance between NAICS codes and the Harmonized Tariff Schedule of the United States prepared by the United States Census Bureau; or</text> </subparagraph><subparagraph commented="no" id="H970D74A0A7DC41A39AD9006DAA123851"><enum>(B)</enum><text>a manufactured item for consumption.</text> </subparagraph></paragraph><paragraph commented="no" id="H90E836AF82A748A89DEC619AA985E349"><enum>(3)</enum><header>Eligible industrial sector</header><text>The term <quote>eligible industrial sector</quote> means an industrial sector determined by the Administrator under section 763(b) to be eligible to receive emission allowance rebates under subpart 1.</text> </paragraph><paragraph commented="no" id="HC9E524952AA249C19500E623632D55EC"><enum>(4)</enum><header>Industrial sector</header><text display-inline="yes-display-inline">The term <quote>industrial sector</quote> means any sector that is in the manufacturing sector (as defined in NAICS codes 31, 32, and 33) or that beneficiates or otherwise processes (including agglomeration) metal ores, including iron and copper ores, soda ash, or phosphate. The extraction of metal ores, soda ash, or phosphate shall not be considered to be an industrial sector.</text> </paragraph><paragraph commented="no" id="HA785F1C1C4F14A978DF7F069DEF3D671"><enum>(5)</enum><header>Manufactured item for consumption</header> <subparagraph id="H28DEA96FB50F4E8B93C9D944E8ECD8C1"><enum>(A)</enum><header>In general</header><text>The term <quote>manufactured item for consumption</quote> means any good—</text> <clause commented="no" id="H21B8CA9CDBE04AFAB12D31B3DFF68119"><enum>(i)</enum><text>that includes in substantial amounts one or more goods like the goods produced by an eligible industrial sector;</text> </clause><clause id="HC82674693F43447BBA8A38FF5A9D5990"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to which an international reserve allowance program pursuant to subpart 2 is in effect with regard to the eligible industrial sector and the quantity of international reserve allowances is not zero pursuant to section 768(b);</text> </clause><clause id="H8CBB0CA9E4EE4D588B5CF53C38131169"><enum>(iii)</enum><text>with respect to which the trade intensity of the industrial sector that produces the good, as measured consistent with section 763(b)(2)(A)(iii), is at least 15 percent; and</text> </clause><clause commented="no" id="HA38DE69ADFD744BCB59C931D257636AC"><enum>(iv)</enum><text display-inline="yes-display-inline">for which the domestic producers of the good have demonstrated, and the Administrator has determined, that the application of the international reserve allowance program pursuant to subpart 2 is technically and administratively feasible and appropriate to achieve the purposes of this part, taking into account the energy and greenhouse gas intensity of the industrial sector that produces the good, as measured consistent with section 763(b)(2)(A)(ii), and the ability of such producers to pass on cost increases and other appropriate factors.</text> </clause></subparagraph><subparagraph id="H2E513272A5964B58A382531337A20D4E"><enum>(B)</enum><header>Rule of construction</header><text>A determination of the Administrator under subparagraph (A)(iv) shall not be considered to be a determination of the President under section 767(b).</text> </subparagraph></paragraph><paragraph commented="no" id="HEBD3A29ECBFD4B97ABF6F9560456D8F5"><enum>(6)</enum><header>NAICS</header><text>The term <quote>NAICS</quote> means the North American Industrial Classification System of 2002.</text> </paragraph><paragraph commented="no" id="H9C9918EE8B7E42E38BDB7246FEF0C674"><enum>(7)</enum><header>Output</header><text display-inline="yes-display-inline">The term <quote>output</quote> means the total tonnage or other standard unit of production (as determined by the Administrator) produced by an entity in an industrial sector. The output of the cement sector is hydraulic cement, and not clinker.</text> </paragraph></section><subpart id="H95A8BB4CF2584153A90CB1DCF0A8183D"><enum>1</enum><header>Emission allowance rebate program</header> <section id="HF615EC971A3B4DF5974DB9DC06AFA307"><enum>763.</enum><header>Eligible industrial sectors</header> <subsection id="H8E9233E9413A4C988418170EF17C07C9"><enum>(a)</enum><header>List</header> <paragraph id="H946B5D4825304BE2AFE4AB01090984CA"><enum>(1)</enum><header>Initial list</header><text display-inline="yes-display-inline">Not later than June 30, 2011, the Administrator shall publish in the Federal Register a list of eligible industrial sectors pursuant to subsection (b). Such list shall include the amount of the emission allowance rebate per unit of production that shall be provided to entities in each eligible industrial sector in the following two calendar years pursuant to section 764.</text> </paragraph><paragraph id="H7D409E5AF8A248599B8754E920CBA285"><enum>(2)</enum><header>Subsequent lists</header><text display-inline="yes-display-inline">Not later than February 1, 2013, and every 4 years thereafter, the Administrator shall publish in the Federal Register an updated version of the list published under paragraph (1).</text> </paragraph></subsection><subsection id="H8A015EB9328B435EA60E4A5AA202E4F1"><enum>(b)</enum><header>Eligible industrial sectors</header> <paragraph id="H562E3F36823D47369E5E699F40BA38EF"><enum>(1)</enum><header>In general</header><text>Not later than June 30, 2011, the Administrator shall promulgate a rule designating, based on the criteria under paragraph (2), the industrial sectors eligible for emission allowance rebates under this subpart.</text> </paragraph><paragraph id="H523D6FCC530447A4AE7706596BA40364"><enum>(2)</enum><header>Presumptively eligible industrial sectors</header> <subparagraph id="HCE309B7287A04998ACF2DBEC381B680E"><enum>(A)</enum><header>Eligibility criteria</header> <clause id="H55188B2C302C4B6B8F66D1CC0C7AFCB3"><enum>(i)</enum><header>In general</header><text>An owner or operator of an entity shall be eligible to receive emission allowance rebates under this subpart if such entity is in an industrial sector that is included in a six-digit classification of the NAICS that meets the criteria in both clauses (ii) and (iii), or the criteria in clause (iv).</text> </clause><clause id="H57062310BED44EF3B3B6B7B746C259DE"><enum>(ii)</enum><header>Energy or greenhouse gas intensity</header><text>As determined by the Administrator, the industrial sector had—</text> <subclause id="H6B149DF59F804E808BA841341E5F9793"><enum>(I)</enum><text>an energy intensity of at least 5 percent, calculated by dividing the cost of purchased electricity and fuel costs of the sector by the value of the shipments of the sector, based on data described in subparagraph (D); or</text> </subclause><subclause id="HE0837B0FADF84F279006A2071043CBE0"><enum>(II)</enum><text>a greenhouse gas intensity of at least 5 percent, calculated by dividing—</text> <item id="HD6BBB39A96B244DAA5591BF4AEA94154"><enum>(aa)</enum><text>the number 20 multiplied by the number of tons of carbon dioxide equivalent greenhouse gas emissions (including direct emissions from fuel combustion, process emissions, and indirect emissions from the generation of electricity used to produce the output of the sector) of the sector based on data described in subparagraph (D); by</text> </item><item id="H34AA1BD71D6D42F684CF064AB1E72D1B"><enum>(bb)</enum><text>the value of the shipments of the sector, based on data described in subparagraph (D).</text> </item></subclause></clause><clause id="HB191DFE2C0E54B2EB7AD1862C247F132"><enum>(iii)</enum><header>Trade intensity</header><text>As determined by the Administrator, the industrial sector had a trade intensity of at least 15 percent, calculated by dividing the value of the total imports and exports of such sector by the value of the shipments plus the value of imports of such sector, based on data described in subparagraph (D).</text> </clause><clause id="HB7DB57E117D147C6950B9EE831A6A90C"><enum>(iv)</enum><header>Very high energy or greenhouse gas intensity</header><text>As determined by the Administrator, the industrial sector had an energy or greenhouse gas intensity, as calculated under clause (ii)(I) or (II), of at least 20 percent.</text> </clause></subparagraph><subparagraph display-inline="no-display-inline" id="H74EDD9C25B7C4F2BA93A3A32DE0751D9"><enum>(B)</enum><header>Metal and phosphate production classified under more than one naics code</header><text>For purposes of this section, the Administrator shall—</text> <clause id="HD65AB094365C4B95B33DF71FB3753D0E"><enum>(i)</enum><text display-inline="yes-display-inline">aggregate data for the beneficiation or other processing (including agglomeration) of metal ores, including iron and copper ores, soda ash, or phosphate with subsequent steps in the process of metal and phosphate manufacturing, regardless of the NAICS code under which such activity is classified; and</text> </clause><clause id="H041D1B947BDC42CF98D493CB9F49F9E4"><enum>(ii)</enum><text>aggregate data for the manufacturing of steel with the manufacturing of steel pipe and tube made from purchased steel in a nonintegrated process.</text> </clause></subparagraph><subparagraph id="HF32E939D91794EB390DBA93EE611A5F6"><enum>(C)</enum><header>Exclusion</header><text>The petroleum refining sector shall not be an eligible industrial sector.</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HF20A4831077148F88EEAE02D7CC89AC4"><enum>(D)</enum><header>Data sources</header> <clause id="H4D82937110DE49458878ACE94E478305"><enum>(i)</enum><header>Electricity and fuel costs, value of shipments</header><text display-inline="yes-display-inline">The Administrator shall determine electricity and fuel costs and the value of shipments under this subsection from data from the United States Census Annual Survey of Manufacturers. The Administrator shall take the average of data from as many of the years of 2004, 2005, and 2006 for which such data are available. If such data are unavailable, the Administrator shall make a determination based upon 2002 or 2006 data from the most detailed industrial classification level of Energy Information Agency’s Manufacturing Energy Consumption Survey (using 2006 data if it is available) and the 2002 or 2007 Economic Census of the United States (using 2007 data if it is available). If data from the Manufacturing Energy Consumption Survey or Economic Census are unavailable for any sector at the six-digit classification level in the NAICS, then the Administrator may extrapolate the information necessary to determine the eligibility of a sector under this paragraph from available Manufacturing Energy Consumption Survey or Economic Census data pertaining to a broader industrial category classified in the NAICS. If data relating to the beneficiation or other processing (including agglomeration) of metal ores, including iron and copper ores, soda ash, or phosphate are not available from the specified data sources, the Administrator shall use the best available Federal or State government data and may use, to the extent necessary, representative data submitted by entities that perform such beneficiation or other processing (including agglomeration), in making a determination. Fuel cost data shall not include the cost of fuel used as feedstock by an industrial sector.</text> </clause><clause id="H71950899FC404A309BF621EFEDD14EF7"><enum>(ii)</enum><header>Imports and exports</header><text>The Administrator shall base the value of imports and exports under this subsection on United States International Trade Commission data. The Administrator shall take the average of data from as many of the years of 2004, 2005, and 2006 for which such data are available. If data from the United States International Trade Commission are unavailable for any sector at the six-digit classification level in the NAICS, then the Administrator may extrapolate the information necessary to determine the eligibility of a sector under this paragraph from available United States International Trade Commission data pertaining to a broader industrial category classified in the NAICS.</text> </clause><clause id="H621B29709A0B45B3A21F56193C881066"><enum>(iii)</enum><header>Percentages</header><text>The Administrator shall round the energy intensity, greenhouse gas intensity, and trade intensity percentages under subparagraph (A) to the nearest whole number.</text> </clause><clause id="HD9F5AB296EEA4C419CF2E39D200F5738"><enum>(iv)</enum><header>Greenhouse gas emission calculations</header><text>When calculating the tons of carbon dioxide equivalent greenhouse gas emissions for each sector under subparagraph (A)(ii)(II)(aa), the Administrator—</text> <subclause id="H2C20DC0002C045B79BD74593E91829BE"><enum>(I)</enum><text>shall use the best available data from as many of the years 2004, 2005, and 2006 for which such data is available; and</text> </subclause><subclause id="HDDB495672D344711ACE2A9E2BE736A03"><enum>(II)</enum><text>may, to the extent necessary with respect to a sector, use economic and engineering models and the best available information on technology performance levels for such sector.</text> </subclause></clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H99A3861E2C81493AA11817252A5F1A09"><enum>(3)</enum><header>Administrative determination of additional eligible industrial sectors</header> <subparagraph id="H1810DE18A3EE4688ACA28E07E2C91F51"><enum>(A)</enum><header>Updated trade intensity data</header><text>The Administrator shall designate as eligible to receive emission allowance rebates under this subpart an industrial sector that—</text> <clause id="H43DD6E47833546F9BAAF82DF99A206A2"><enum>(i)</enum><text>met the energy or greenhouse gas intensity criteria in paragraph (2)(A)(ii) as of the date of promulgation of the rule under paragraph (1); and</text> </clause><clause id="H5CC1311A3988426B81FAF4F39B268255"><enum>(ii)</enum><text>meets the trade intensity criteria in paragraph (2)(A)(iii), using data from any year after 2006.</text> </clause></subparagraph><subparagraph id="H828D0A0BD01C49CE90D74D92BF9DD292"><enum>(B)</enum><header>Individual showing petition</header> <clause id="H28EF8563D70F4DA0B3C099525D1458E7"><enum>(i)</enum><header>Petition</header><text>In addition to designation under paragraph (2) or subparagraph (A) of this paragraph, the owner or operator of an entity in an industrial sector may petition the Administrator to designate as eligible industrial sectors under this subpart an entity or a group of entities that—</text> <subclause id="HD63914EDF44E4EF3904D5A09A220B6BB"><enum>(I)</enum><text>represent a subsector of a six-digit section of the NAICS code; and</text> </subclause><subclause id="HE9D42F2F638C43A681DB7A7124ACE909"><enum>(II)</enum><text>meet the eligibility criteria in both clauses (ii) and (iii) of paragraph (2)(A), or the eligibility criteria in clause (iv) of paragraph (2)(A).</text> </subclause></clause><clause id="HB923A3A688754537934DD7B10C1EEA45"><enum>(ii)</enum><header>Data</header><text>In making a determination under this subparagraph, the Administrator shall consider data submitted by the petitioner that is specific to the entity, data solicited by the Administrator from other entities in the subsector, if such other entities exist, and data specified in paragraph (2)(D).</text> </clause><clause id="H9E59DC516F7C411DAD144579FFD95235"><enum>(iii)</enum><header>Basis of subsector determination</header><text>The Administrator shall determine an entity or group of entities to be a subsector of a six-digit section of the NAICS code based only upon the products manufactured and not the industrial process by which the products are manufactured, except that the Administrator may determine an entity or group of entities that manufacture a product from primarily virgin material to be a separate subsector from another entity or group of entities that manufacture the same product primarily from recycled material.</text> </clause><clause id="HB97A5680B2674C509584C274810126CB"><enum>(iv)</enum><header>Use of most recent data</header><text>In determining whether to designate a sector or subsector as an eligible industrial sector under this subparagraph, the Administrator shall use the most recent data available from the sources described in paragraph (2)(D), rather than the data from the years specified in paragraph (2)(D), to determine the trade intensity of such sector or subsector, but only for determining such trade intensity.</text> </clause><clause id="H3A911C5AB91742A8A13CBDC9C4B49A41"><enum>(v)</enum><header>Final action</header><text>The Administrator shall take final action on such petition no later than 6 months after the petition is received by the Administrator.</text> </clause></subparagraph></paragraph></subsection></section><section id="H57EBB56D61AF45EAA6762B7B38B631C9"><enum>764.</enum><header>Distribution of emission allowance rebates</header> <subsection commented="no" id="H08C4CE8267B84DDFBD3E6706D42B7730"><enum>(a)</enum><header>Distribution schedule</header> <paragraph commented="no" id="H3CB2FE3495F7497DBC96EBD0367F422A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For each vintage year, the Administrator shall distribute pursuant to this section emission allowances made available under section 782(e), no later than October 31 of the preceding calendar year. The Administrator shall make such annual distributions to the owners and operators of each entity in an eligible industrial sector in the amount of emission allowances calculated under subsection (b), except that—</text> <subparagraph commented="no" id="HEB88ED63EA664C52B22FD1BC48E161AE"><enum>(A)</enum><text display-inline="yes-display-inline">for vintage years 2012 and 2013, the distribution for a covered entity shall be pursuant to the entity’s indirect carbon factor as calculated under subsection (b)(3);</text> </subparagraph><subparagraph commented="no" id="H9FAB1751337C4E889A279567C9B6FB4D"><enum>(B)</enum><text display-inline="yes-display-inline">for vintage year 2026 and thereafter, the distribution shall be pursuant to the amount calculated under subsection (b) multiplied by, except as modified by the President pursuant to section 767(d)(1)(C) for a sector—</text> <clause commented="no" id="H63CCCEEB1A9044239804C8C1D01EE0E8"><enum>(i)</enum><text>90 percent for vintage year 2026;</text> </clause><clause commented="no" id="HBFC8EDFA21DD46F49D840302C3A4B362"><enum>(ii)</enum><text display-inline="yes-display-inline">80 percent for vintage year 2027;</text> </clause><clause commented="no" id="HCA77721FE24042EBBF67350FA2F4DB2B"><enum>(iii)</enum><text display-inline="yes-display-inline">70 percent for vintage year 2028;</text> </clause><clause commented="no" id="H199690A385D74252A1916D2A0519DFAC"><enum>(iv)</enum><text display-inline="yes-display-inline">60 percent for vintage year 2029;</text> </clause><clause commented="no" id="HCCCBB6B299F1425480BCE24479D53190"><enum>(v)</enum><text display-inline="yes-display-inline">50 percent for vintage year 2030;</text> </clause><clause commented="no" id="H3FCE5097548C481B897CD7E7E3840790"><enum>(vi)</enum><text display-inline="yes-display-inline">40 percent for vintage year 2031;</text> </clause><clause commented="no" id="H44857EB518834D73BDEA8AE447A15D84"><enum>(vii)</enum><text display-inline="yes-display-inline">30 percent for vintage year 2032;</text> </clause><clause commented="no" id="H4BF51FB4126C427D9FE72FD45093D277"><enum>(viii)</enum><text display-inline="yes-display-inline">20 percent for vintage year 2033;</text> </clause><clause commented="no" id="HF9AB3063C1624050BB97077ACE0DAA1A"><enum>(ix)</enum><text display-inline="yes-display-inline">10 percent for vintage year 2034; and</text> </clause><clause commented="no" id="HC8AECBDAC23B47C68DCD98791F39DAA6"><enum>(x)</enum><text display-inline="yes-display-inline">0 percent for vintage year 2035 and thereafter.</text> </clause></subparagraph></paragraph><paragraph commented="no" id="HFCC5CB3BA7254A55900D3E1FB910B3D3"><enum>(2)</enum><header>Resumption of reduction</header><text display-inline="yes-display-inline">If the President has modified the percentage stated in paragraph (1)(B) under section 767(d)(1)(C), and the President subsequently makes a determination under section 767(c) for an eligible industrial sector that more than 85 percent of United States imports for that sector are produced or manufactured in countries that have met at least one of the criteria in that section, then the 10-year reduction schedule set forth in paragraph (1)(B) of this subsection shall begin in the next vintage year, with the percentage reduction based on the amount of the distribution of emission allowances under this section in the previous year.</text> </paragraph><paragraph id="H2529535E13C9436DB77A95D0D41DF7A8"><enum>(3)</enum><header>Newly eligible sectors</header><text>In addition to receiving a distribution of emission allowances under this section in the first distribution occurring after an industrial sector is designated as eligible under section 763(b)(3), the owner or operator of an entity in that eligible industrial sector may receive a prorated share of any emission allowances made available for distribution under this section that were not distributed for the year in which the petition for eligibility was granted under section 763(b)(3)(A).</text> </paragraph><paragraph id="H30B4973F6F5849BFB39F84A073020A42"><enum>(4)</enum><header>Cessation of qualifying activities</header><text>If, as determined by the Administrator, a facility is no longer in an eligible industrial sector designated under section 763—</text> <subparagraph id="H6AA76FEBA44F40C8A4509E5B45971B86"><enum>(A)</enum><text>the Administrator shall not distribute emission allowances to the owner or operator of such facility under this section; and</text> </subparagraph><subparagraph id="H789102D1CD0E4E06AE569C6E5FEAC560"><enum>(B)</enum><text>the owner or operator of such facility shall return to the Administrator all allowances that have been distributed to it for future vintage years and a pro-rated amount of allowances distributed to the facility under this section for the vintage year in which the facility ceases to be in an eligible industrial sector designated under section 763.</text> </subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HBA3E3111C3484BCCAF8C0E0ACE5AB137"><enum>(b)</enum><header>Calculation of direct and indirect carbon factors</header> <paragraph id="H1224FC160A1D418EBE0F9F3090044C62"><enum>(1)</enum><header>In general</header> <subparagraph id="H7DB759BA7AA04E0FB6B7D4271F7E6310"><enum>(A)</enum><header>Covered entities</header><text>Except as provided in subsection (a), for covered entities that are in eligible industrial sectors, the amount of emission allowance rebates shall be based on the sum of the covered entity’s direct and indirect carbon factors.</text> </subparagraph><subparagraph id="H54BF68C60ECF4204A0FD5F91B4468238"><enum>(B)</enum><header>Other eligible entities</header><text>For entities that are in eligible industrial sectors but are not covered entities, the amount of emission allowance rebates shall be based on the entity’s indirect carbon factor.</text> </subparagraph><subparagraph id="H13E3A7361CF54250BA2FE42DB0C2E204"><enum>(C)</enum><header>New entities</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall issue regulations governing the distribution of emission allowance rebates for the first and second years of operation of a new entity in an eligible industrial sector. These regulations shall provide for—</text> <clause id="H8F224B5E009741FF9D2C8B4F3ADFE8D8"><enum>(i)</enum><text>the distribution of emission allowance rebates to such entities based on comparable entities in the same sector; and</text> </clause><clause id="H1B35D3B2A8854E4D95B1D056B0EFD3BA"><enum>(ii)</enum><text>an adjustment in the third and fourth years of operation to reconcile the total amount of emission allowance rebates received during the first and second years of operation to the amount the entity would have received during the first and second years of operation had the appropriate data been available.</text> </clause></subparagraph></paragraph><paragraph id="H273EF5599727439D87DEF34EF5C52149"><enum>(2)</enum><header>Direct carbon factor</header><text>The direct carbon factor for a covered entity for a vintage year is the product of—</text> <subparagraph id="HA212EA49866F41F7AE01EAA6C913EDE2"><enum>(A)</enum><text>the average annual output of the covered entity for the 2 years preceding the year of the distribution; and</text> </subparagraph><subparagraph id="HEDFB9514EED94DC68E14C2343DA76ACC"><enum>(B)</enum><text>the most recent calculation of the average direct greenhouse gas emissions (expressed in tons of carbon dioxide equivalent) per unit of output for all covered entities in the sector, as determined by the Administrator under paragraph (4).</text> </subparagraph></paragraph><paragraph id="H0B9E8D7DFE5F43B0BFA245FE69E73869"><enum>(3)</enum><header>Indirect carbon factor</header> <subparagraph id="H4D8AC92F4DE0401F904FC034083856B0"><enum>(A)</enum><header>In general</header><text>The indirect carbon factor for an entity for a vintage year is the product obtained by multiplying the average annual output of the entity for the 2 years preceding the year of the distribution by both the electricity emissions intensity factor determined pursuant to subparagraph (B) and the electricity efficiency factor determined pursuant to subparagraph (C) for the year concerned.</text> </subparagraph><subparagraph id="HA54CFEDBFF86436288B2D996DC0EA09D"><enum>(B)</enum><header>Electricity emissions intensity factor</header> <clause id="H0A849D848B6F4BE2AED96BDBC7082C18"><enum>(i)</enum><header>In general</header><text>Each person selling electricity to the owner or operator of an entity in any sector designated as an eligible industrial sector under section 763(b) shall provide the owner or operator of the entity and the Administrator, on an annual basis, the electricity emissions intensity factor for the entity. The electricity emissions intensity factor for the entity, expressed in tons of carbon dioxide equivalents per kilowatt hour, is determined by dividing—</text> <subclause id="H624BDDE0635B4B92A9520EBD75EFAAB7"><enum>(I)</enum><text>the annual sum of the hourly product of—</text> <item id="HA7A1E364F0FB4DD9979D2756C15FCFCB"><enum>(aa)</enum><text>the electricity purchased by the entity from that person in each hour (expressed in kilowatt hours); multiplied by</text> </item><item id="HDBC93100125A4A4D8AF8E940D347C667"><enum>(bb)</enum><text>the marginal or weighted average tons of carbon dioxide equivalent per kilowatt hour that are reflected in the electricity charges to the entity, as determined by the entity’s retail rate arrangements; by</text> </item></subclause><subclause id="H302954C23C734913A36BEE22901E02F4"><enum>(II)</enum><text>the total kilowatt hours of electricity purchased by the entity from that person during that year.</text> </subclause></clause><clause id="H66D940F1DA5544D78777174D02DE7B40"><enum>(ii)</enum><header>Use of other data to determine factor</header><text display-inline="yes-display-inline">Where it is not possible to determine the precise electricity emissions intensity factor for an entity using the methodology in clause (i), the person selling electricity shall use the monthly average data reported by the Energy Information Administration or collected and reported by the Administrator for the utility serving the entity to determine the electricity emissions intensity factor.</text> </clause></subparagraph><subparagraph id="HEC9137ED104C41E2AE0B65852185BE65"><enum>(C)</enum><header>Electricity efficiency factor</header><text>The electricity efficiency factor is the average amount of electricity (in kilowatt hours) used per unit of output for all entities in the relevant sector, as determined by the Administrator based on the best available data, including data provided under paragraph (6).</text> </subparagraph><subparagraph id="HC6EF5CD555AC469FBE4A539762357E79"><enum>(D)</enum><header>Indirect carbon factor reduction</header><text>If an electricity provider received a free allocation of emission allowances pursuant to section 782(a), the Administrator shall adjust the indirect carbon factor to avoid rebates to the eligible entity for costs that the Administrator determines were not incurred by the eligible entity because the allowances were freely allocated to the eligible entity’s electricity provider and used for the benefit of industrial consumers.</text> </subparagraph></paragraph><paragraph id="HF1341B119CBC426AA174E1B112B47713"><enum>(4)</enum><header>Greenhouse gas intensity calculations</header><text display-inline="yes-display-inline">The Administrator shall calculate the average direct greenhouse gas emissions (expressed in tons of carbon dioxide equivalent) per unit of output and the electricity efficiency factor for all covered entities in each eligible industrial sector every 4 years, using an average of the four most recent years of the best available data. For purposes of the lists required to be published no later than February 1, 2013, the Administrator shall use the best available data for the maximum number of years, up to 4 years, for which data are available.</text> </paragraph><paragraph id="H966167A4EC9D4BB5A3EC2B712A780AD7"><enum>(5)</enum><header>Ensuring efficiency improvements</header><text>When making greenhouse gas calculations, the Administrator shall—</text> <subparagraph id="H76007E43C9D74051BA6572457E5542B9"><enum>(A)</enum><text>limit the average direct greenhouse gas emissions per unit of output, calculated under paragraph (4), for any eligible industrial sector to an amount that is not greater than it was in any previous calculation under this subsection;</text> </subparagraph><subparagraph id="H403BCB56869D4CF5865AF3293D099750"><enum>(B)</enum><text>limit the electricity emissions intensity factor, calculated under paragraph (3)(B) and resulting from a change in electricity supply, for any entity to an amount that is not greater than it was during any previous year; and</text> </subparagraph><subparagraph id="H95D50AEFF3284D24AF8BFE0D51442B4A"><enum>(C)</enum><text>limit the electricity efficiency factor, calculated under paragraph (3)(C), for any eligible industrial sector to an amount that is not greater than it was in any previous calculation under this subsection.</text> </subparagraph></paragraph><paragraph id="H42DE1AC8961E4A73B992D1325AEAC444"><enum>(6)</enum><header>Data sources</header><text>For the purposes of this subsection—</text> <subparagraph id="H8AA7170CA66F40479E22E597EE3FB459"><enum>(A)</enum><text>the Administrator shall use data from the greenhouse gas registry established under section 713, where it is available; and</text> </subparagraph><subparagraph id="H482805D7BB0C424AAB817617079D0FDD"><enum>(B)</enum><text>each owner or operator of an entity in an eligible industrial sector and each department, agency, and instrumentality of the United States shall provide the Administrator with such information as the Administrator finds necessary to determine the direct carbon factor and the indirect carbon factor for each entity subject to this section.</text> </subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H3E7F250E3E644D8A9C3C32F78FCCA2A4"><enum>(c)</enum><header>Total maximum distribution</header><text>Notwithstanding subsections (a) and (b), the Administrator shall not distribute more allowances for any vintage year pursuant to this section than are allocated for use under this subpart pursuant to section 782(e) for that vintage year. For any vintage year for which the total emission allowance rebates calculated pursuant to this section exceed the number of allowances allocated pursuant to section 782(e), the Administrator shall reduce each entity’s distribution on a pro rata basis so that the total distribution under this section equals the number of allowances allocated under section 782(e).</text> </subsection><subsection id="HD0E21C3A98934A4E8159AD1B4121B3E0"><enum>(d)</enum><header>Iron and steel sector</header><text>For purposes of this section, the Administrator shall consider as in different industrial sectors—</text> <paragraph id="HCFCCD5FD1A694256B3B9D3876A97B585"><enum>(1)</enum><text>entities using integrated iron and steelmaking technologies (including coke ovens, blast furnaces, and other iron-making technologies); and</text> </paragraph><paragraph id="H1C94CB8F9AC24875BF0BCCBEE5C094A0"><enum>(2)</enum><text>entities using electric arc furnace technologies.</text> </paragraph></subsection><subsection id="HDF65A6D28D724BE1AEC0476C47AD06AC"><enum>(e)</enum><header>Metal, soda ash, or phosphate production classified under more than one naics code</header><text display-inline="yes-display-inline">For purposes of this section, the Administrator shall not aggregate data for the beneficiation or other processing (including agglomeration) of metal ores, soda ash, or phosphate with subsequent steps in the process of metal, soda ash, or phosphate manufacturing. The Administrator shall consider the beneficiation or other processing (including agglomeration) of metal ores, soda ash, or phosphate to be in separate industrial sectors from the metal, soda ash, or phosphate manufacturing sectors. Industrial sectors that beneficiate or otherwise process (including agglomeration) metal ores, soda ash, or phosphate shall not receive emission allowance rebates under this section related to the activity of extracting metal ores, soda ash, or phosphate.</text> </subsection><subsection id="H818EC2B21BC54D69B71B9C14C7A61385"><enum>(f)</enum><header>Combined heat and power</header><text>For purposes of this section, and to achieve the purpose set forth in section 761(b)(2), the Administrator may consider entities to be in different industrial sectors or otherwise take into account the differences among entities in the same industrial sector, based upon the extent to which such entities use combined heat and power technologies.</text> </subsection></section></subpart><subpart id="HB2B5411587B74E9F8D7C7B57ECA27AA5"><enum>2</enum><header>Promoting international reductions in industrial emissions</header> <section id="HC75EEA5383F447E9A778B730FF089CF9"><enum>765.</enum><header>International negotiations</header> <subsection id="H38CBDBA0DFFF43B2BAE7A13316ADD131"><enum>(a)</enum><header>Finding</header><text>Congress finds that the purposes of this subpart, as set forth in section 761(c), can be most effectively addressed and achieved through agreements negotiated between the United States and foreign countries.</text> </subsection><subsection id="HC763BA88020344C7BD782614A30265AB"><enum>(b)</enum><header>Statement of policy</header><text>It is the policy of the United States to work proactively under the United Nations Framework Convention on Climate Change, and in other appropriate fora, to establish binding agreements, including sectoral agreements, committing all major greenhouse gas-emitting nations to contribute equitably to the reduction of global greenhouse gas emissions.</text> </subsection><subsection id="HEDB542C2A92A4545AC50F50BBB06F404"><enum>(c)</enum><header>Notification of foreign countries</header> <paragraph id="HDC4A3C622B1D4DB38C49A036068A1B21"><enum>(1)</enum><header>In general</header><text>As soon as practicable after the date of the enactment of this title, the President shall provide a notification on climate change described in paragraph (2) to each foreign country the products of which are not exempted under section 768(a)(1)(E).</text> </paragraph><paragraph id="H30EB4D29B45545118449113E5B2167E8"><enum>(2)</enum><header>Notification described</header><text>A notification described in this paragraph is a notification that consists of—</text> <subparagraph id="HF55E7D91FD5D4709B254BA0D3DB94F16"><enum>(A)</enum><text>a statement of the policy of the United States described in subsection (b); and</text> </subparagraph><subparagraph id="HD7CC3DE744A3454AAAF924C666D51075"><enum>(B)</enum><text>a declaration—</text> <clause id="HE1733E25AFFB4943960ADD73420B138F"><enum>(i)</enum><text>requesting the foreign country to take appropriate measures to limit the greenhouse gas emissions of the foreign country; and</text> </clause><clause id="H8EBD0D91859D475190218C71C61CF3A4"><enum>(ii)</enum><text>indicating that, beginning on January 1, 2020, the international reserve requirements of this subpart may apply to a covered good.</text> </clause></subparagraph></paragraph></subsection></section><section id="H7E2A408F1270465FAD011E41F4CCF497"><enum>766.</enum><header>United States negotiating objectives with respect to multilateral environmental negotiations</header> <subsection id="H8471622D69134F67836D7F78FE0082BD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The negotiating objectives of the United States with respect to multilateral environmental negotiations described in this subpart are—</text> <paragraph id="H9291A3B5FEAE4D7897AD5F9505D20D87"><enum>(1)</enum><text>to reach an internationally binding agreement in which all major greenhouse gas-emitting countries contribute equitably to the reduction of global greenhouse gas emissions;</text> </paragraph><paragraph id="H228A5987F2C84416B824A5EB4950C412"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H8D13C77BB442416A80F96D4D3E298754"><enum>(A)</enum><text display-inline="yes-display-inline">to include in such international agreement provisions that recognize and address the competitive imbalances that lead to carbon leakage and may be created between parties and non-parties to the agreement in domestic and export markets; and</text> </subparagraph><subparagraph id="HE22C7425470A443FB2C4978D644D306A" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">not to prevent parties to such agreement from addressing the competitive imbalances that lead to carbon leakage and may be created by the agreement among parties to the agreement in domestic and export markets ; and</text> </subparagraph></paragraph><paragraph id="HBDA4900404B14D41BAE8C3B3975083C2"><enum>(3)</enum><text display-inline="yes-display-inline">to include in such international agreement agreed remedies for any party to the agreement that fails to meet its greenhouse gas reduction obligations in the agreement.</text> </paragraph></subsection><subsection commented="no" id="H56D6C95462F14C27BE7181073A4F8267"><enum>(b)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in subsection (a)(2) shall be construed to require the United States to alter the provisions of section 764 .</text> </subsection></section><section display-inline="no-display-inline" id="H44C0FB41E3DC47ECBF40D214795363C9"><enum>767.</enum><header>Presidential reports and determinations</header> <subsection id="H0F0278CC649B47AEADCE07A1683F85B8"><enum>(a)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than January 1, 2017, and every 2 years thereafter, the President shall submit a report to Congress on the effectiveness of the distribution of emission allowance rebates under subpart 1 in mitigating carbon leakage in eligible industrial sectors. Such report shall also include—</text> <paragraph commented="no" id="H41F9D4E0F9844E4780FBA97FE87A86F0"><enum>(1)</enum><text display-inline="yes-display-inline">an assessment, for each eligible industrial sector receiving emission allowance rebates, as to whether, and by how much, the per unit cost of production has increased for that sector as a result of compliance with section 722 (as determined in a manner consistent with section 764(b)), taking into account the provision of the emission allowance rebates to that industrial sector and the benefit received by that industrial sector from the provision of free allowances to electricity providers pursuant to section 782(a);</text> </paragraph><paragraph id="HC58C8BB817D945E98C434732445AF326"><enum>(2)</enum><text>recommendations on how to better achieve the purposes of this subpart, including an assessment of the feasibility and usefulness of an international reserve allowance program for the eligible industrial sector under section 768;</text> </paragraph><paragraph id="H32A7DA45C2224E75A2F126B5F4827248"><enum>(3)</enum><text display-inline="yes-display-inline">to the extent the President determines that an international reserve allowance program would not be useful for the eligible industrial sector because its exposure to carbon leakage is the result of competition in export markets with goods produced in countries not implementing similar greenhouse gas emission reduction policies, an identification of, and to the extent appropriate a description of how the President will implement, alternative actions or programs consistent with the purposes of this subpart (and, in such case, the President may determine not to apply an international reserve allowance program to the eligible industrial sector under subsection (b)); and</text> </paragraph><paragraph id="HB4F02A38C6CB4946AE89734616417896"><enum>(4)</enum><text>an assessment of the amount and duration of assistance, including distribution of free allowances, being provided to industrial sectors in other developed countries to mitigate costs of compliance with domestic greenhouse gas reduction programs in such countries.</text> </paragraph></subsection><subsection id="HDCA3ABFB3C0A4BA2AF3611780A357E96"><enum>(b)</enum><header>Presidential determination</header> <paragraph id="HF45325A50AD14C599C82A70DCE8F5C24"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">If, by January 1, 2018, a multilateral agreement consistent with the negotiating objectives set forth in section 766 has not entered into force with respect to the United States, the President shall establish an international reserve allowance program for each eligible industrial sector to the extent provided under section 768 unless—</text> <subparagraph id="HD101999F5C4940DB9B0246B01F35D25C"><enum>(A)</enum><text>the President determines and certifies to the Congress with respect to such eligible industrial sector that such program would not be in the national economic interest or environmental interest of the United States; and</text> </subparagraph><subparagraph id="HF9D69352A9944AD4996307484F7F9B4B"><enum>(B)</enum><text>not later than 90 days after the President transmits the certification described in subparagraph (A), a joint resolution is enacted into law that approves the determination of the President described in subparagraph (A).</text> </subparagraph></paragraph><paragraph id="H7A09FED1864F498BB91C8506EF8F88C8"><enum>(2)</enum><header>Contents of joint resolution</header><text>For purposes of this subsection, the term <quote>joint resolution</quote> means only a joint resolution of the two Houses of Congress, the matter after the resolving clause of which is as follows: <quote>That the Congress approves the determination of the President under section 768(b)(1)(A) of the Clean Air Act transmitted to the Congress on ______.</quote>, the blank space being filled with the appropriate date.</text> </paragraph><paragraph id="H8C5958CBBEA146728069F0A0C2A68051"><enum>(3)</enum><header>Congressional procedures</header><text display-inline="yes-display-inline">Subsections (c), (d), (e), and (f) of section 152 of the Trade Act of 1974 (19 U.S.C. 2192 (c), (d), (e), and (f)) shall apply to a joint resolution under this subsection to the same extent as such subsections apply to a joint resolution under section 152 of such Act.</text> </paragraph><paragraph commented="no" id="H1FF8205EEFF84C8EBD281386D48E1C9E"><enum>(4)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">For purposes of this section and section 768, if the President transmits a multilateral agreement to Congress (regardless of whether it is transmitted as a treaty for ratification by the Senate or another international agreement for implementation by law enacted by the Congress) indicating that the agreement is consistent with the negotiating objectives set forth in section 766, such agreement will be considered to be consistent with such negotiating objectives as of the date on which the Senate ratifies the treaty, or legislation is enacted implementing such other agreement, unless the Senate (in the case of ratification) or the implementing legislation expressly provides that the multilateral agreement shall not be treated as consistent with such negotiating objectives for purposes of this section and section 768.</text> </paragraph></subsection><subsection id="H64D5453314264711A6F3F125EC9C193A"><enum>(c)</enum><header>Determinations with respect to eligible industrial sectors</header><text>If the President establishes an international reserve allowance program pursuant to subsection (b), then not later than June 30, 2018, and every 4 years thereafter, the President, in consultation with the Administrator and other appropriate agencies, shall determine, for each eligible industrial sector, whether or not more than 85 percent of United States imports of covered goods with respect to that sector are produced or manufactured in countries that have met at least one of the following criteria:</text> <paragraph id="H34AF6DE27B284772893AF01443FE46EB"><enum>(1)</enum><text>The country is a party to an international agreement to which the United States is a party that includes a nationally enforceable and economy-wide greenhouse gas emissions reduction commitment for that country that is at least as stringent as that of the United States.</text> </paragraph><paragraph commented="no" id="H310A6BD2AAD64AFC8979790A37442717"><enum>(2)</enum><text display-inline="yes-display-inline">The country is a party to a multilateral or bilateral emission reduction agreement for that sector to the which the United States is a party.</text> </paragraph><paragraph commented="no" id="H2E27CE0CF90E4AD5906C75685F7C3CF4"><enum>(3)</enum><text>The country has an annual energy or greenhouse gas intensity, as described in section 763(b)(2)(A)(ii), for the sector that is equal to or less than the energy or greenhouse gas intensity for such industrial sector in the United States in the most recent calendar year for which data are available.</text> </paragraph></subsection><subsection id="HB163BC1D36B24F47A0EA72BF38600AEF"><enum>(d)</enum><header>Effect of Presidential determination</header> <paragraph id="HD215DC41D1014EA5A876C84F5A174F2B"><enum>(1)</enum><header>Required actions</header><text>If the President makes a determination under subsection (c) with respect to an eligible industrial sector that 85 percent or less of United States imports of covered goods with respect to the sector are produced or manufactured in countries that have met one or more of the criteria in subsection (c), then the President shall, not later than June 30, 2018, and every 4 years thereafter—</text> <subparagraph id="H1FDE4D916C1240E4AB8B7D1AD3C31682"><enum>(A)</enum><text display-inline="yes-display-inline">assess the extent to which the emission allowance rebates provided pursuant to subpart 1 and the benefit received by that industrial sector from the provision of free allowances to electricity providers pursuant to section 782(a) have mitigated or addressed, or could mitigate or address, carbon leakage in that sector;</text> </subparagraph><subparagraph id="H81E491E5F3D341D4ADCE55A3C15CC970"><enum>(B)</enum><text>assess the extent to which an international reserve allowance program has mitigated or addressed, or could mitigate or address, carbon leakage in that sector; and</text> </subparagraph><subparagraph id="H6C870672F4E744BCBF38510D4F32FFE6"><enum>(C)</enum><text>with respect to that sector—</text> <clause id="H414E55EAD9684E10BF9FBBDDFF8A96EC"><enum>(i)</enum><text>modify the percentage by which direct and indirect carbon factors will be multiplied under section 764(a)(1)(B); and</text> </clause><clause id="H67B3098748D94E99AB635592CEC5C1E8"><enum>(ii)</enum><text display-inline="yes-display-inline">apply or continue to apply an international reserve allowance program under section 768 with respect to imports of covered goods with respect to that sector.</text> </clause></subparagraph></paragraph><paragraph commented="no" id="HD7011FDE12DE4724B517ECE398078B9F"><enum>(2)</enum><header>Prohibited actions</header><text display-inline="yes-display-inline">If the President makes a determination under subsection (c) with respect to an eligible industrial sector that more than 85 percent of United States imports of covered goods with respect to the sector are produced or manufactured in countries that have met one or more of the criteria in subsection (c), then the President may not apply or continue to apply an international reserve allowance program under section 768 with respect to imports of covered goods with respect to that sector.</text> </paragraph></subsection><subsection id="H0A4D37E1AB514A5091DEA06580121333"><enum>(e)</enum><header>Report to Congress</header><text display-inline="yes-display-inline">Not later than June 30, 2018, and every 4 years thereafter, the President shall transmit to the Congress a report providing notice of any determination made under subsection (c), explaining the reasons for such determination, and identifying the actions taken by the President under subsection (d).</text> </subsection></section><section display-inline="no-display-inline" id="H453074CF01874971B26821ECF0B49110"><enum>768.</enum><header>International reserve allowance program</header> <subsection id="H9B1FD3BA88BC490AB7F2435209F5CF38"><enum>(a)</enum><header>Establishment</header> <paragraph id="H7126F2B12B144BAD9B608A6532ABCCC9"><enum>(1)</enum><header>In general</header><text>The Administrator, with the concurrence of Commissioner responsible for U.S. Customs and Border Protection, shall issue regulations—</text> <subparagraph id="H4F18E49F87184782A3277729C14AB7F1"><enum>(A)</enum><text>establishing an international reserve allowance program for the sale, exchange, purchase, transfer, and banking of international reserve allowances for covered goods with respect to the eligible industrial sector;</text> </subparagraph><subparagraph id="HCA5524C82BDB43EEB85AE7CEC516ADD2"><enum>(B)</enum><text>ensuring that the price for purchasing the international reserve allowances from the United States on a particular day is equivalent to the auction clearing price for emission allowances under section 722 for the most recent emission allowance auction;</text> </subparagraph><subparagraph id="H4288CCD0069B4315970017ADB087F53E"><enum>(C)</enum><text>establishing a general methodology for calculating the quantity of international reserve allowances that a United States importer of any covered good must submit;</text> </subparagraph><subparagraph commented="no" id="HEB84A37CFA6345289AA21D83765ADD49"><enum>(D)</enum><text>requiring the submission of appropriate amounts of such allowances for covered goods with respect to the eligible industrial sector that enter the customs territory of the United States;</text> </subparagraph><subparagraph id="HF824C1C1943C4CB7892C296F4F4410CB"><enum>(E)</enum><text>exempting from the requirements of subparagraph (D) such products that are the origin of—</text> <clause id="HAB52E172EF6042B6994CA02A448595EA"><enum>(i)</enum><text>any country determined to meet any of the standards provided in section 767(c);</text> </clause><clause id="HEBA94C150750447E8973CF492DD06961"><enum>(ii)</enum><text>any foreign country that the United Nations has identified as among the least developed of developing countries; or</text> </clause><clause id="H73C645E58B0A4CDDA6B62BE666F0BC13"><enum>(iii)</enum><text display-inline="yes-display-inline">any foreign country that the President has determined to be responsible for less than 0.5 percent of total global greenhouse gas emissions and less than 5 percent of United States imports of covered goods with respect to the eligible industrial sector;</text> </clause></subparagraph><subparagraph id="H3DF8161FAA36439180778DC1A6AA3446"><enum>(F)</enum><text display-inline="yes-display-inline">specifying the procedures that U.S. Customs and Border Protection will apply for the declaration and entry of covered goods with respect to the eligible industrial sector into the customs territory of the United States; and</text> </subparagraph><subparagraph id="HECE21951D77D45E991FEB18962371240"><enum>(G)</enum><text display-inline="yes-display-inline">establishing procedures that prevent circumvention of the international reserve allowance requirement for covered goods with respect to the eligible industrial sector that are manufactured or processed in more than one foreign country.</text> </subparagraph></paragraph><paragraph id="H7EBB0D9D2FAA42AA98C3745E46D487A1"><enum>(2)</enum><header>Purpose of program</header><text>The Administrator shall establish the program under paragraph (1) consistent with international agreements to which the United States is a party, in a manner that minimizes the likelihood of carbon leakage as a result of differences between—</text> <subparagraph id="HA4DC7055875148B7838B6FD704E59872"><enum>(A)</enum><text>the direct and indirect costs of complying with section 722; and</text> </subparagraph><subparagraph id="H56FF51593E1545A3A8C7F354AE031835"><enum>(B)</enum><text>the direct and indirect costs, if any, of complying in other countries with greenhouse gas regulatory programs, requirements, export tariffs, or other measures adopted or imposed to reduce greenhouse gas emissions.</text> </subparagraph></paragraph></subsection><subsection id="H67931927941047C4B297E3328A777687"><enum>(b)</enum><header>Emission allowance rebates</header><text display-inline="yes-display-inline">In establishing a general methodology for purposes of subsection (a)(1)(C), the Administrator shall include an adjustment to the quantity of international reserve allowances based on the value of emission allowance rebates distributed under subpart 1 and the benefit received by the eligible industrial sector concerned from the provision of free allowances to electricity providers pursuant to section 782(a) and may, if appropriate, determine that the quantity of international reserve allowances should be reduced as low as to zero.</text> </subsection><subsection id="H4E5384DD47284A98B5801AD5922F805E"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The international reserve allowance program may not apply to imports of covered goods entering the customs territory of the United States before January 1, 2020.</text> </subsection><subsection id="HB795614A6A2F440E84352E22AE38E5C3"><enum>(d)</enum><header>Covered entities</header><text display-inline="yes-display-inline">International reserve allowances may not be used by covered entities to comply with section 722.</text> </subsection></section><section id="HF838242B9FC74F5C8C29CAC1AF5337CB"><enum>769.</enum><header>Iron and steel sector</header><text display-inline="no-display-inline">For purposes of this subpart, the Administrator shall consider to be in the same eligible industrial sector—</text> <paragraph id="HD9C93BB174284434A5BE65EC6C6462B0"><enum>(1)</enum><text>entities using integrated iron and steelmaking technologies (including coke ovens, blast furnaces, and other iron-making technologies); and</text> </paragraph><paragraph id="HB264BC902D4C4D2EB0AD7BF7EF7D160F"><enum>(2)</enum><text>entities using electric arc furnace technologies.</text> </paragraph></section></subpart></part><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle><subtitle id="H21B163BE01FA4496AFD26E49F291D98A"><enum>B</enum><header>Green Jobs and Worker Transition</header> <part id="H4B8C163D959143F4AEB0CBF8732BA1B4"><enum>1</enum><header>Green Jobs</header> <section id="H3DDF668C92CD4B2FA051425E4E805C4A"><enum>421.</enum><header>Clean energy curriculum development grants</header> <subsection id="HF529CD67C3C44D5DBF6BC38175A41588"><enum>(a)</enum><header>Authorization</header><text display-inline="yes-display-inline">The Secretary of Education is authorized to award grants, on a competitive basis, to eligible partnerships to develop programs of study (containing the information described in section 122(c)(1)(A) of the Carl D. Perkins Career and Technical Education Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/20/2342">20 U.S.C. 2342</external-xref>)), that are focused on emerging careers and jobs in the fields of clean energy, renewable energy, energy efficiency, climate change mitigation, and climate change adaptation. The Secretary of Education shall consult with the Secretary of Labor and the Secretary of Energy prior to the issuance of a solicitation for grant applications.</text> </subsection><subsection id="H030BEBBA0CEC45218EBDE004B9D877F7"><enum>(b)</enum><header>Eligible partnerships</header><text>For purposes of this section, an eligible partnership shall include—</text> <paragraph id="H4FBE8AC531A24419AD4FB069FC9925A5"><enum>(1)</enum><text>at least 1 local educational agency eligible for funding under section 131 of the Carl D. Perkins Career and Technical Education Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/20/2351">20 U.S.C. 2351</external-xref>) or an area career and technical education school or education service agency described in such section;</text> </paragraph><paragraph id="HCA1F489B373641D5A605F34E7F1DF262"><enum>(2)</enum><text>at least 1 postsecondary institution eligible for funding under section 132 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/2352">20 U.S.C. 2352</external-xref>); and</text> </paragraph><paragraph id="H840610A23C7A4221ABF0AE876578CAE7"><enum>(3)</enum><text>representatives of the community including business, labor organizations, and industry that have experience in fields as described in subsection (a).</text> </paragraph></subsection><subsection id="H6CB76CB1ADB94CC49252AD2A52D3F7CC"><enum>(c)</enum><header>Application</header><text>An eligible partnership seeking a grant under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may require. Applications shall include—</text> <paragraph id="H42814D210F0347F59863D364D1FC8444"><enum>(1)</enum><text>a description of the eligible partners and partnership, the roles and responsibilities of each partner, and a demonstration of each partner’s capacity to support the program;</text> </paragraph><paragraph id="H72BE406BEE074838899D597BFD767F0F"><enum>(2)</enum><text>a description of the career area or areas within the fields as described in subsection (a) to be developed, the reason for the choice, and evidence of the labor market need to prepare students in that area;</text> </paragraph><paragraph id="HC56176DDA7774DE090CA4CEDC83BAACE"><enum>(3)</enum><text>a description of the new or existing program of study and both secondary and postsecondary components;</text> </paragraph><paragraph id="H744B7ED8E44B4D4B88C524F77C8145E7"><enum>(4)</enum><text>a description of the students to be served by the new program of study;</text> </paragraph><paragraph id="H9851A083F0BD492BB74AF1F8A7332953"><enum>(5)</enum><text>a description of how the program of study funded by the grant will be replicable and disseminated to schools outside of the partnership, including urban and rural areas;</text> </paragraph><paragraph id="H65D0CD4774004BCDA89219FD2256FBCB"><enum>(6)</enum><text>a description of applied learning that will be incorporated into the program of study and how it will incorporate or reinforce academic learning;</text> </paragraph><paragraph id="H682FBED2286D424197E0577D3C27554A"><enum>(7)</enum><text>a description of how the program of study will be delivered;</text> </paragraph><paragraph id="H23079B0B695A46A482F54262E031D1F7"><enum>(8)</enum><text>a description of how the program will provide accessibility to students, especially economically disadvantaged, low performing, and urban and rural students;</text> </paragraph><paragraph id="H4FBB01E0BDDF4F38A355CA09FC549A39"><enum>(9)</enum><text>a description of how the program will address placement of students in nontraditional fields as described in section 3(20) of the Carl D. Perkins Career and Technical Education Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/20/2302">20 U.S.C. 2302(20)</external-xref>); and</text> </paragraph><paragraph id="H4C1BA5431C9B44FBBB4FE402FF268105"><enum>(10)</enum><text display-inline="yes-display-inline">a description of how the applicant proposes to consult or has consulted with a labor organization, labor management partnership, apprenticeship program, or joint apprenticeship and training program that provides education and training in the field of study for which the applicant proposes to develop a curriculum.</text> </paragraph></subsection><subsection id="H852937C035ED4FA49449465873369E1C"><enum>(d)</enum><header>Priority</header><text>The Secretary shall give priority to applications that—</text> <paragraph id="HA24063745A734CE6B27EDBFFBA8E0B48"><enum>(1)</enum><text>use online learning or other innovative means to deliver the program of study to students, educators, and instructors outside of the partnership; and</text> </paragraph><paragraph id="H2B4143DCC8904495B154810F3C8EB8AD"><enum>(2)</enum><text>focus on low performing students and special populations as defined in section 3(29) of the Carl D. Perkins Career and Technical Education Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/20/2302">20 U.S.C. 2302(29)</external-xref>).</text> </paragraph></subsection><subsection id="HD4DF3A9C278E4449BD3D4373BD1C04D6"><enum>(e)</enum><header>Peer review</header><text>The Secretary shall convene a peer review process to review applications for grants under this section and to make recommendations regarding the selection of grantees. Members of the peer review committee shall include—</text> <paragraph id="H00B2397DCBA84019966A666AFD2EC546"><enum>(1)</enum><text>educators who have experience implementing curricula with comparable purposes; and</text> </paragraph><paragraph id="HF15D7AC4C5174E34AA2A27B0D094EC16"><enum>(2)</enum><text>business and industry experts in fields as described in subsection (a).</text> </paragraph></subsection><subsection id="H9730609159BF4900B7006DF3AD9F31FD"><enum>(f)</enum><header>Uses of funds</header><text display-inline="yes-display-inline">Grants awarded under this section shall be used for the development, implementation, and dissemination of programs of study (as described in section 122(c)(1)(A) of the Carl D. Perkins Career and Technical Education Act (<external-xref legal-doc="usc" parsable-cite="usc/20/2342">20 U.S.C. 2342(c)(1)(A)</external-xref>)) in career areas related to clean energy, renewable energy, energy efficiency, climate change mitigation, and climate change adaptation.</text> </subsection></section><section id="H260CA43E696842988359C51156420FE9"><enum>422.</enum><header>Increased funding for energy worker training program</header> <subsection id="HA0029FDE5FDA4FDCA4B6691135368D6E"><enum>(a)</enum><header>Authorization</header><text display-inline="yes-display-inline">Section 171(e)(8) of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2916">29 U.S.C. 2916(e)(8)</external-xref>) is amended by striking <quote>$125,000,000</quote> and inserting <quote>$150,000,000</quote>.</text> </subsection><subsection id="H181B0C8760794F329A630DD69A484AD6"><enum>(b)</enum><header>Establishment of fund</header><text display-inline="yes-display-inline">There is hereby established in the Treasury a separate account that shall be known as the Energy Efficiency and Renewable Energy Worker Training Fund.</text> </subsection><subsection id="HD4FB7978980241C8B480101BBEB412AF"><enum>(c)</enum><header>Availability of amounts</header><text>Subject to subtitle F of title IV, all amounts deposited into the Energy Efficiency and Renewable Energy Worker Training Fund shall be available to the Secretary to carry out section 171(e)(8) of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2916">29 U.S.C. 2916(e)(8)</external-xref>) subject to further appropriation.</text> </subsection></section><section id="H0D0C808206ED4989BA8B44C2B6F79014"><enum>423.</enum><header>Development of Information and Resources clearinghouse for vocational education and job training in renewable energy sectors</header> <subsection id="H554E61E8A3914DCAB46CA928EAC17220"><enum>(a)</enum><header>Development of clearinghouse</header><text display-inline="yes-display-inline">Not later than 18 months after the date of enactment of this Act, the Secretary of Labor, in collaboration with the Secretary of Energy and the Secretary of Education, shall develop an internet based information and resources clearinghouse to aid career and technical education and job training programs for the renewable energy sectors. In establishing the clearinghouse, the Secretary shall—</text> <paragraph id="H4A78E9E4898C4480BEEF004594C342D9"><enum>(1)</enum><text display-inline="yes-display-inline">collect and provide information that addresses the consequences of rapid changes in technology and regional disparities for renewable energy training programs and provides best practices for training and education in light of such changes and disparities;</text> </paragraph><paragraph id="HA543B38828604049AFB55114038E20C3"><enum>(2)</enum><text display-inline="yes-display-inline">place an emphasis on facilitating collaboration between the renewable energy industry and job training programs and on identifying industry and technological trends and best practices, to better help job training programs maintain quality and relevance; and</text> </paragraph><paragraph id="HFC477E81D0FA4896BD7A797D7DC035CF"><enum>(3)</enum><text>place an emphasis on assisting programs that cater to high-demand middle-skill, trades, manufacturing, contracting, and consulting careers.</text> </paragraph></subsection><subsection id="H773F7E901CC24578AE5549E43F5D6211"><enum>(b)</enum><header>Solicitation and Consultation</header><text>In developing the clearinghouse pursuant to subsection (a), the Secretary shall solicit information and expertise from businesses and organizations in the renewable energy sector and from institutions of higher education, career and technical schools, and community colleges that provide training in the renewable energy sectors. The Secretary shall solicit a comprehensive peer review of the clearinghouse by such entities not less than once every 2 years. Nothing in this subsection should be interpreted to require the divulgence of proprietary or competitive information.</text> </subsection><subsection id="H0FA0C64EC7B1470FAC69B2B9869757C3"><enum>(c)</enum><header>Contents of clearinghouse</header> <paragraph id="H20939D6268AD4A68B58D33F9E99A3AA4"><enum>(1)</enum><header>Separate section for each renewable energy sector</header><text display-inline="yes-display-inline">The clearinghouse shall contain separate sections developed for each of the following renewable energy sectors:</text> <subparagraph id="H75F5347CCF5A498FB7A850426B3062D4"><enum>(A)</enum><text display-inline="yes-display-inline">Solar energy systems.</text> </subparagraph><subparagraph id="HD013EFEEEAA944E8B9A5D8019D21CEDF"><enum>(B)</enum><text display-inline="yes-display-inline">Wind energy systems.</text> </subparagraph><subparagraph id="H25A2811314AC4D0A96F36861F8F5D19E"><enum>(C)</enum><text display-inline="yes-display-inline">Energy transmission systems.</text> </subparagraph><subparagraph id="H964ECF0331CE4DA1978D99A9496EB8B2"><enum>(D)</enum><text display-inline="yes-display-inline">Geothermal systems of energy and heating.</text> </subparagraph><subparagraph id="HD8D8B74BD9984103981B97D6F3E43F97"><enum>(E)</enum><text>Energy efficiency technical training.</text> </subparagraph></paragraph><paragraph id="HF6B20664C81B47A3AF98A536C5F68C3D"><enum>(2)</enum><header>Additional requirements</header><text>In addition to the information required in subsection (a), each section of the clearinghouse shall include information on basic environmental science and processes needed to understand renewable energy systems, Federal government and industry resources, and points of contact to aid institutions in the development of placement programs for apprenticeships and post graduation opportunities, and information and tips about a green workplace, energy efficiency, and relevant environmental topics and information on available industry recognized certifications in each area.</text> </paragraph></subsection><subsection id="HD9101AD5F2AD46C9914EF86DDFD2BCD8"><enum>(d)</enum><header>Dissemination</header><text display-inline="yes-display-inline">The clearinghouse shall be made available via the Internet to the general public. Notice of the completed clearinghouse and any major revisions thereto shall also be provided—</text> <paragraph id="H9B4DB4F935934CE4ACE63203A751E397"><enum>(1)</enum><text display-inline="yes-display-inline">to each Member of Congress; and</text> </paragraph><paragraph id="H4F40D139985D4A52A71093DB51377FD2"><enum>(2)</enum><text display-inline="yes-display-inline">on the websites of the Departments of Education, Energy, and Labor.</text> </paragraph></subsection><subsection id="HAE911B0B2CD14CC2B3A9A0B67A630F42"><enum>(e)</enum><header>Revision</header><text>The Secretary of Labor shall revise and update the clearinghouse on a regular basis to ensure its relevance.</text> </subsection></section><section id="HF1C88176F6B84D25B810A1FA46ADD54A"><enum>424.</enum><header>Monitoring program effectiveness</header><text display-inline="no-display-inline">The Secretary of Labor shall monitor the potential growth of affected and displaced workers to ensure that the necessary funding continues to support the number of workers affected.</text> </section><section id="H1FC7B0F9A6984348B326475CA78F8BEB"><enum>424A.</enum><header>Green construction careers demonstration project</header> <subsection id="H6DC6ED454AF747EA9E3E0C16A972DFCE"><enum>(a)</enum><header>Establishment and authority</header><text>The Secretary of Labor, in consultation with the Secretary of Energy, shall, not later than 180 days after the enactment of this Act, establish a Green Construction Careers demonstration project by rules, regulations, and guidance in accordance with the provisions of this section. The purpose of the demonstration project shall be to promote middle class careers and quality employment practices in the green construction sector among targeted workers and to advance efficiency and performance on construction projects related to this Act. In order to advance these purposes, the Secretary shall identify projects, including residential retrofitting projects, funded directly by or assisted in whole or in part by or through the Federal Government pursuant to this Act or by any other entity established in accordance with this Act, to which all of the following shall apply.</text> </subsection><subsection id="H591130D267AF43508366163B270891FB"><enum>(b)</enum><header>Requirements</header><text>The Secretaries may establish such terms and conditions for the demonstration projects as the Secretaries determine are necessary to meet the purposes of subsection (a), including establishing minimum proportions of hours to be worked by targeted workers on such projects. The Secretaries may require the contractors and subcontractors performing construction services on the project to comply with the terms and conditions as a condition of receiving funding or assistance from the Federal Government under this Act.</text> </subsection><subsection display-inline="no-display-inline" id="H578FA5E99853456291FB0425E87876B8"><enum>(c)</enum><header>Evaluation</header><text>The Secretaries shall evaluate the demonstration projects against the purposes of this section at the end of 3 years from initiation of the demonstration project. If the Secretaries determine that the demonstration projects have been successful, the Secretaries may identify further projects to which of the provisions of this section shall apply.</text> </subsection><subsection id="H9B96D722031D41DBA125716D62B0E515"><enum>(d)</enum><header>GAO report</header><text>The Comptroller General shall prepare and submit a report to the Committee on Health, Education, Labor and Pensions and the Committee on Energy and Natural Resources of the Senate and the Committee on Education and Labor and the Committee on Energy and Commerce of the House of Representatives not later than 5 years after the date of enactment of this Act, which shall advise the committees of the results of the demonstration projects and make appropriate recommendations.</text> </subsection><subsection id="H55353FEA64644657AE4D0530D2699094"><enum>(e)</enum><header>Definition and designation of targeted workers</header><text>As used in this section, the term <quote>targeted worker</quote> means an individual who resides in the same labor market area (as defined in section 101(18) of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801(18)</external-xref>)) as the project and who—</text> <paragraph id="HB297247054B3415A8CC332191E3BEA45"><enum>(1)</enum><text>is a member of a targeted group, within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/51">section 51</external-xref> of the Internal Revenue Code of 1986, other than an individual described in subsection (d)(1)(C) of such section;</text> </paragraph><paragraph id="H8036312010C544FCA33D2DC2DFA99F56"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HA6355A9D279241738DDD90CC051746A4"><enum>(A)</enum><text>resides in a census tract in which not less than 20 percent of the households have incomes below the Federal poverty guidelines; or</text> </subparagraph><subparagraph id="H2EF28141ADBD4685A9747FE6411CFE9B"><enum>(B)</enum><text>is a member of a family that received a total family income that, during the 2-year period prior to employment on the project or admission to the pre-apprenticeship program, did not exceed 200 percent of the Federal poverty guidelines (exclusive of unemployment compensation, child support payments, payments described in section 101(25)(A) of the Workforce Investment Act (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801(25)(A)</external-xref>), and old-age and survivors insurance benefits received under section 202 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402</external-xref>); or</text> </subparagraph></paragraph><paragraph id="H9429059984B34B199F97EC0E78281F09"><enum>(3)</enum><text>is a displaced homemaker, as such term is defined in section 3(10) of the Carl D. Perkins Career and Technical Education Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/20/2302">20 U.S.C. 2302(10)</external-xref>).</text> </paragraph></subsection><subsection id="H708241754563408BBA74203BC8EE6A51"><enum>(f)</enum><header>Qualified pre-apprenticeship program</header><text display-inline="yes-display-inline">A qualified pre-apprenticeship program is a pre-apprenticeship program that has demonstrated an ability to recruit, train, and prepare for admission to apprenticeship programs individuals who are targeted workers.</text> </subsection><subsection id="H5EE0F2A47E1242BD9347CF57BA38501C"><enum>(g)</enum><header>Qualified apprenticeship and other training programs</header> <paragraph id="H798A0A02B4E4407E814F7DA96D61CEC7"><enum>(1)</enum><header>Participation by each contractor required</header><text>Each contractor and subcontractor that seeks to provide construction services on projects identified by the Secretaries pursuant to subsection (a) shall submit adequate assurances with its bid or proposal that it participates in a qualified apprenticeship or other training program, with a written arrangement with a qualified pre-apprenticeship program, for each craft or trade classification of worker that it intends to employ to perform work on the project.</text> </paragraph><paragraph id="HACC2A4918D6147B196DC79C04366667B"><enum>(2)</enum><header>Definition of qualified apprentice ship or other training program</header> <subparagraph id="HC986D100993B4C9F9CA2CFF3223A3BD8"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <quote>qualified apprenticeship or other training program</quote> means an apprenticeship or other training program that qualifies as an employee welfare benefit plan, as defined in section 3(1) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002(1)</external-xref>).</text> </subparagraph><subparagraph id="H67AF369954024897A940B62CFC59B7A6"><enum>(B)</enum><header>Certification of other programs in certain localities</header><text>In the event that the Secretary of Labor certifies that a qualified apprenticeship or other training program (as defined in subparagraph (A)) for a craft or trade classification of workers that a prospective contractor or subcontractor intends to employ, is not operated in the locality where the project will be performed, an apprenticeship or other training program that is not an employee welfare benefit plan (as defined in such section) may be certified by the Secretary as a qualified apprenticeship or other training program provided it is registered with the Office of Apprenticeship of the Department of Labor, or a State apprenticeship agency recognized by the Office of Apprenticeship for Federal purposes.</text> </subparagraph></paragraph></subsection><subsection id="HBBB0C0193CD14484BA527D1337A10B9A"><enum>(h)</enum><header>Facilitating compliance</header><text>The Secretary may require Federal contracting agencies, recipients of Federal assistance, and any other entity established in accordance with this Act to require contractors to enter into an agreement in a manner comparable with the standards set forth in sections 3 and 4 of Executive Order 13502 in order to achieve the purposes of this section, including any requirements established by subsection (b).</text> </subsection><subsection display-inline="no-display-inline" id="HE147660C3B8B43128F9B1A564B0D1D66"><enum>(i)</enum><header>Limitation</header><text>The requirements of this section shall not apply to any project funded under this Act in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, or the United States Virgin Islands, unless participation is requested by the governor of such territories within 1 year of the promulgation of rules under this Act.</text> </subsection></section></part><part id="HF4E9F86B74C54C4496A1321AB0063758"><enum>2</enum><header>Climate Change Worker Adjustment Assistance </header> <section id="HBAC3708702594B90BE82A182937431C3"><enum>425.</enum><header>Petitions, eligibility requirements, and determinations</header> <subsection id="H1F5A0BC950E64CFEA74E9AB21B328DE2"><enum>(a)</enum><header>Petitions</header> <paragraph display-inline="no-display-inline" id="HDC7136891854490FB8EC73FEAEA168CE"><enum>(1)</enum><header>Filing</header><text>A petition for certification of eligibility to apply for adjustment assistance for a group of workers under this part may be filed by any of the following:</text> <subparagraph id="H8C4057B2537C4CEEA87E7EE70CB72D6C"><enum>(A)</enum><text>The group of workers.</text> </subparagraph><subparagraph id="H86B3E07AF7F1427FB34B4740131006AF"><enum>(B)</enum><text>The certified or recognized union or other duly authorized representative of such workers.</text> </subparagraph><subparagraph id="H55B9064E78354F83B3AD0AD62B11624B"><enum>(C)</enum><text>Employers of such workers, one-stop operators or one-stop partners (as defined in section 101 of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801</external-xref>)), including State employment security agencies, or the State dislocated worker unit established under title I of such Act, on behalf of such workers.</text> </subparagraph><continuation-text continuation-text-level="paragraph">The petition shall be filed simultaneously with the Secretary of Labor and with the Governor of the State in which such workers’ employment site is located.</continuation-text></paragraph><paragraph id="HE2EA77CC643C44F3B2E3152A97994FA8"><enum>(2)</enum><header>Action by Governors</header><text>Upon receipt of a petition filed under paragraph (1), the Governor shall—</text> <subparagraph id="H81C511DACA44406CBFCA3D0B3B3457AD"><enum>(A)</enum><text>ensure that rapid response activities and appropriate core and intensive services (as described in section 134 of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2864">29 U.S.C. 2864</external-xref>)) authorized under other Federal laws are made available to the workers covered by the petition to the extent authorized under such laws; and</text> </subparagraph><subparagraph id="H43310106615C4E17AC7C4A7599EAAFC5"><enum>(B)</enum><text>assist the Secretary in the review of the petition by verifying such information and providing such other assistance as the Secretary may request.</text> </subparagraph></paragraph><paragraph id="H2DD78C85656244FB9435D11953D8A539"><enum>(3)</enum><header>Action by the Secretary</header><text>Upon receipt of the petition, the Secretary shall promptly publish notice in the Federal Register and on the website of the Department of Labor that the Secretary has received the petition and initiated an investigation.</text> </paragraph><paragraph id="HF6ED14D9A90E4E47BBE29E4314E3597F"><enum>(4)</enum><header>Hearings</header><text>If the petitioner, or any other person found by the Secretary to have a substantial interest in the proceedings, submits not later than 10 days after the date of the Secretary's publication under paragraph (3) a request for a hearing, the Secretary shall provide for a public hearing and afford such interested persons an opportunity to be present, to produce evidence, and to be heard.</text> </paragraph></subsection><subsection id="H9A28F9CFCA9D4E53A9ED5B0453D58747"><enum>(b)</enum><header>Eligibility</header> <paragraph id="H8C4BFA70FF5F4B2884DC22D364168F0A"><enum>(1)</enum><header>In general</header><text>A group of workers shall be certified by the Secretary as eligible to apply for adjustment assistance under this part pursuant to a petition filed under subsection (a) if—</text> <subparagraph id="H277234DD7AB1435D8F8414CF63C46F9D"><enum>(A)</enum><text>the group of workers is employed in—</text> <clause id="H5CB80C1A165F42D79DEAF320726B5E6B"><enum>(i)</enum><text>energy producing and transforming industries;</text> </clause><clause id="HAA0C60FA4F034E2F9F9499D926197CD0"><enum>(ii)</enum><text display-inline="yes-display-inline">industries dependent upon energy industries;</text> </clause><clause id="HC2DF60C0560346F49911E9439D1B4E6E"><enum>(iii)</enum><text>energy-intensive manufacturing industries;</text> </clause><clause id="H25102C70479D48F9B0CF97D4267A3AF9"><enum>(iv)</enum><text>consumer goods manufacturing; or</text> </clause><clause id="H023824E6BD144021A3564C979DC5E9E6"><enum>(v)</enum><text display-inline="yes-display-inline">other industries whose employment the Secretary determines has been adversely affected by any requirement of title VII of the Clean Air Act;</text> </clause></subparagraph><subparagraph id="H8841AECD92B444DDB69B1A27CDD8496B"><enum>(B)</enum><text>the Secretary determines that a significant number or proportion of the workers in such workers’ employment site have become totally or partially separated, or are threatened to become totally or partially separated from employment; and</text> </subparagraph><subparagraph commented="no" id="HA1B30B3C37664C7A82651C0DF636E0BD"><enum>(C)</enum><text display-inline="yes-display-inline">the sales, production, or delivery of goods or services have decreased as a result of any requirement of title VII of the Clean Air Act, including—</text> <clause commented="no" id="H66B50F4EF32C4DE2A1F808A806318F7A"><enum>(i)</enum><text display-inline="yes-display-inline">the shift from reliance upon fossil fuels to other sources of energy, including renewable energy, that results in the closing of a facility or layoff of employees at a facility that mines, produces, processes, or utilizes fossil fuels to generate electricity;</text> </clause><clause commented="no" id="HD68B8452A43F4AAAA9FD3D13AFA1A225"><enum>(ii)</enum><text display-inline="yes-display-inline">a substantial increase in the cost of energy required for a manufacturing facility to produce items whose prices are competitive in the marketplace, to the extent the cost is not offset by allowance allocation to the facility pursuant to title VII of the Clean Air Act; or</text> </clause><clause commented="no" id="HA4E37E2B38BD4912BB0A0A9B1EFDB34E"><enum>(iii)</enum><text display-inline="yes-display-inline">other documented occurrences that the Secretary determines are indicators of an adverse impact on an industry described in subparagraph (A) as a result of any requirement of title VII of the Clean Air Act.</text> </clause></subparagraph></paragraph><paragraph commented="no" id="H025A2B0D0E8949A6A7E396B83F37738C"><enum>(2)</enum><header>Workers in public agencies</header><text display-inline="yes-display-inline">A group of workers in a public agency shall be certified by the Secretary as eligible to apply for climate change adjustment assistance pursuant to a petition filed if the Secretary determines that a significant number or proportion of the workers in the public agency have become totally or partially separated from employment, or are threatened to become totally or partially separated as a result of any requirement of title VII of the Clean Air Act.</text> </paragraph><paragraph commented="no" id="H14570192CB54424B8F785FE9500B1D50"><enum>(3)</enum><header>Adversely affected service workers</header><text display-inline="yes-display-inline">A group of workers shall be certified as eligible to apply for climate change adjustment assistance pursuant to a petition filed if the Secretary determines that—</text> <subparagraph commented="no" id="HE5237DCDF9484510AC1F5FDE9161979B"><enum>(A)</enum><text>a significant number or proportion of the service workers at an employment site where a group of workers has been certified by the Secretary as eligible to apply for adjustment assistance under this part pursuant to paragraph (1) have become totally or partially separated from employment, or are threatened to become totally or partially separated; and</text> </subparagraph><subparagraph commented="no" id="H678BD5BACFEF4413A64309FA2D5B6921"><enum>(B)</enum><text>a loss of business in the firm providing service workers to an employment site is directly attributable to one or more of the documented occurrences listed in paragraph (1)(C).</text> </subparagraph></paragraph></subsection><subsection id="HAA337D3413A94490833AD005C6357E86"><enum>(c)</enum><header>Authority to investigate and collect information</header> <paragraph id="HD50D2430C2F24E4283E6995674B15232"><enum>(1)</enum><header>In general</header><text>The Secretary shall, in determining whether to certify a group of workers under subsection (d), obtain information the Secretary determines to be necessary to make the certification, through questionnaires and in such other manner as the Secretary determines appropriate from—</text> <subparagraph id="H0D8D9A6CC96B490081BB1A11C08A6665"><enum>(A)</enum><text display-inline="yes-display-inline">the workers’ employer;</text> </subparagraph><subparagraph id="HA68675BEDE3745DF942BDA9E6CD6C9B7"><enum>(B)</enum><text>officials of certified or recognized unions or other duly authorized representatives of the group of workers; or</text> </subparagraph><subparagraph id="H02053D7F78D74A2B8DA0996854344223"><enum>(C)</enum><text>one-stop operators or one-stop partners (as defined in section 101 of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801</external-xref>)); or</text> </subparagraph></paragraph><paragraph id="H1DCE538D34274DE1A72DC3A5082136C8"><enum>(2)</enum><header>Verification of information</header><text display-inline="yes-display-inline">The Secretary shall require an employer, union, or one-stop operator or partner to certify all information obtained under paragraph (1) from the employer, union, or one-stop operator or partner (as the case may be) on which the Secretary relies in making a determination under subsection (d), unless the Secretary has a reasonable basis for determining that such information is accurate and complete without being certified.</text> </paragraph><paragraph id="H0431D3AB820A4E8E98ADEFFAA7486680"><enum>(3)</enum><header>Protection of confidential information</header><text>The Secretary may not release information obtained under paragraph (1) that the Secretary considers to be confidential business information unless the employer submitting the confidential business information had notice, at the time of submission, that the information would be released by the Secretary, or the employer subsequently consents to the release of the information. Nothing in this paragraph shall be construed to prohibit the Secretary from providing such confidential business information to a court in camera or to another party under a protective order issued by a court.</text> </paragraph></subsection><subsection id="H20A2491E8D1B4013AADCC29D23FF7EB0"><enum>(d)</enum><header>Determination by the Secretary of Labor</header> <paragraph id="H6DFE4EDAD03746F79C7DE2528D049EE4"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">As soon as possible after the date on which a petition is filed under subsection (a), but in any event not later than 40 days after that date, the Secretary, in consultation with the Secretary of Energy and the Administrator, as necessary, shall determine whether the petitioning group meets the requirements of subsection (b) and shall issue a certification of eligibility to apply for assistance under this part covering workers in any group which meets such requirements. Each certification shall specify the date on which the total or partial separation began or threatened to begin. Upon reaching a determination on a petition, the Secretary shall promptly publish a summary of the determination in the Federal Register and on the website of the Department of Labor, together with the Secretary's reasons for making such determination.</text> </paragraph><paragraph commented="no" id="H6571C444765E434386514B6871E4BC41"><enum>(2)</enum><header>One year limitation</header><text>A certification under this section shall not apply to any worker whose last total or partial separation from the employment site before the worker’s application under section 426(a) occurred more than 1 year before the date of the petition on which such certification was granted.</text> </paragraph><paragraph id="HA0855E98C639499E91419C8586DDA272"><enum>(3)</enum><header>Revocation of certification</header><text display-inline="yes-display-inline">Whenever the Secretary determines, with respect to any certification of eligibility of the workers of an employment site, that total or partial separations from such site are no longer a result of the factors specified in subsection (b)(1), the Secretary shall terminate such certification and promptly have notice of such termination published in the Federal Register and on the website of the Department of Labor, together with the Secretary's reasons for making such determination. Such termination shall apply only with respect to total or partial separations occurring after the termination date specified by the Secretary.</text> </paragraph></subsection><subsection commented="no" id="HE2CB82E2AECE4685BBE54B758A251279"><enum>(e)</enum><header>Industry Notification of Assistance</header><text>Upon receiving a notification of a determination under subsection (d) with respect to a domestic industry the Secretary of Labor shall notify the representatives of the domestic industry affected by the determination, employers publicly identified by name during the course of the proceeding relating to the determination, and any certified or recognized union or, to the extent practicable, other duly authorized representative of workers employed by such representatives of the domestic industry, of—</text> <paragraph commented="no" display-inline="no-display-inline" id="HA91F029AA2D247E685B27923D41B4634"><enum>(1)</enum><text>the adjustment allowances, training, and other benefits available under this part;</text> </paragraph><paragraph commented="no" id="H99E4B3C3B60549558D681BD884741EB7"><enum>(2)</enum><text>the manner in which to file a petition and apply for such benefits; and</text> </paragraph><paragraph commented="no" id="HEE9B9500574440CD957F568F33574D0D"><enum>(3)</enum><text>the availability of assistance in filing such petitions;</text> </paragraph><paragraph commented="no" id="H14E9A0980DA44B6F984799093DDD6273"><enum>(4)</enum><text>notify the Governor of each State in which one or more employers in such industry are located of the Secretary’s determination and the identity of the employers; and</text> </paragraph><paragraph commented="no" id="H6C4D42078307480E955BFDD7A32E61F3"><enum>(5)</enum><text>upon request, provide any assistance that is necessary to file a petition under subsection (a).</text> </paragraph></subsection><subsection id="H5B065F8DAF7742D8AE4A489C2683D835"><enum>(f)</enum><header>Benefit information to workers, providers of training</header> <paragraph id="H0B33E00979464070A0604214ECE8368B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall provide full information to workers about the adjustment allowances, training, and other benefits available under this part and about the petition and application procedures, and the appropriate filing dates, for such allowances, training and services. The Secretary shall provide whatever assistance is necessary to enable groups of workers to prepare petitions or applications for program benefits. The Secretary shall make every effort to insure that cooperating State agencies fully comply with the agreements entered into under section 426(a) and shall periodically review such compliance. The Secretary shall inform the State Board for Vocational Education or equivalent agency, the one-stop operators or one-stop partners (as defined in section 101 of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801</external-xref>), and other public or private agencies, institutions, and employers, as appropriate, of each certification issued under subsection (d) and of projections, if available, of the needs for training under as a result of such certification.</text> </paragraph><paragraph id="HB9F4CA8B2DDA4EE8BEFB1D50ECCD16E6"><enum>(2)</enum><header>Notice by mail</header><text display-inline="yes-display-inline">The Secretary shall provide written notice through the mail of the benefits available under this part to each worker whom the Secretary has reason to believe is covered by a certification made under subsection (d)—</text> <subparagraph id="HD205ECE698234369BC98B60A1956403C"><enum>(A)</enum><text>at the time such certification is made, if the worker was partially or totally separated from the adversely affected employment before such certification, or—</text> </subparagraph><subparagraph id="HFAA6A888FA344F87B1FDC87357C5A2DE"><enum>(B)</enum><text>at the time of the total or partial separation of the worker from the adversely affected employment, if subparagraph (A) does not apply.</text> </subparagraph></paragraph><paragraph id="H686B856ECD7E475FA50F5F0D28D86328"><enum>(3)</enum><header>Newspapers; website</header><text>The Secretary shall publish notice of the benefits available under this part to workers covered by each certification made under subsection (d) in newspapers of general circulation in the areas in which such workers reside and shall make such information available on the website of the Department of Labor.</text> </paragraph></subsection></section><section id="H6DE84B4067C1470B9FCD34240F254EB4"><enum>426.</enum><header>Program benefits</header> <subsection id="H139707A4DF95469BBC420F5F8E7A71EC"><enum>(a)</enum><header>Climate change adjustment allowance</header> <paragraph id="H550B5181B8F447B7843C5A837F003354"><enum>(1)</enum><header>Eligibility</header><text>Payment of a climate change adjustment allowance shall be made to an adversely affected worker covered by a certification under section 425(b) who files an application for such allowance for any week of unemployment which begins on or after the date of such certification, if the following conditions are met:</text> <subparagraph id="HB44C14306B3B47D992EAB0F92B3F186A"><enum>(A)</enum><text>Such worker’s total or partial separation before the worker’s application under this part occurred—</text> <clause id="H6859D4976EF647A3A7B009B711D9E79F"><enum>(i)</enum><text>on or after the date, as specified in the certification under which the worker is covered, on which total or partial separation began or threatened to begin in the adversely affected employment;</text> </clause><clause id="H4A16E1238E3241BCAA300106B7910E5D"><enum>(ii)</enum><text>before the expiration of the 2-year period beginning on the date on which the determination under section 425(d) was made; and</text> </clause><clause id="HEC111EE9D0C7434883ADEF721E0959B7"><enum>(iii)</enum><text display-inline="yes-display-inline">before the termination date, if any, determined pursuant to section 425(d)(3).</text> </clause></subparagraph><subparagraph id="H468FF480F876485C882BF92E1FB68A41"><enum>(B)</enum><text>Such worker had, in the 52-week period ending with the week in which such total or partial separation occurred, at least 26 weeks of full-time employment or 1,040 hours of part time employment in adversely affected employment, or, if data with respect to weeks of employment are not available, equivalent amounts of employment computed under regulations prescribed by the Secretary. For the purposes of this paragraph, any week in which such worker—</text> <clause id="HF1E722BB45484530AEF724F0D8AC5F86"><enum>(i)</enum><text>is on employer-authorized leave for purposes of vacation, sickness, injury, maternity, or inactive duty or active duty military service for training;</text> </clause><clause id="H4977063B2D8B4FAAAC0FEBA47A856A53"><enum>(ii)</enum><text>does not work because of a disability that is compensable under a workmen's compensation law or plan of a State or the United States;</text> </clause><clause id="H85988E3201C24077849EE3BF94D829CB"><enum>(iii)</enum><text>had his employment interrupted in order to serve as a full-time representative of a labor organization in such firm; or</text> </clause><clause id="H074434AD5E1A404DA25A9F4C1FE9C405"><enum>(iv)</enum><text>is on call-up for purposes of active duty in a reserve status in the Armed Forces of the United States, provided such active duty is <quote>Federal service</quote> as defined in <external-xref legal-doc="usc" parsable-cite="usc/5/8521">section 8521(a)(1)</external-xref> of title 5, United States Code,</text> </clause><continuation-text continuation-text-level="subparagraph">shall be treated as a week of employment.</continuation-text></subparagraph><subparagraph id="HD2AC861053114EA7AD475A21FFAC9194"><enum>(C)</enum><text>Such worker is enrolled in a training program approved by the Secretary under subsection (b)(2).</text> </subparagraph></paragraph><paragraph id="H18D13B44572749CB8E78076FEA4601F3"><enum>(2)</enum><header>Ineligibility for certain other benefits</header><text display-inline="yes-display-inline">An adversely affected worker receiving a payment under this section shall be ineligible to receive any other form of unemployment insurance for the period in which such worker is receiving a climate change adjustment allowance under this section.</text> </paragraph><paragraph display-inline="no-display-inline" id="H1BA1E9D75B1649FDBF630F3F05921C49"><enum>(3)</enum><header>Revocation</header><text>If—</text> <subparagraph id="HB4BB2CC88CD349B7B4FC8AA0AFE3BC80"><enum>(A)</enum><text>the Secretary determines that—</text> <clause id="HD31109FD17D44C95BA7ECBA29F20E248"><enum>(i)</enum><text>the adversely affected worker—</text> <subclause id="H23221D325C6B4C5084928984B63A2926"><enum>(I)</enum><text>has failed to begin participation in the training program the enrollment in which meets the requirement of paragraph (1)(C); or</text> </subclause><subclause id="H9779364E3E4F4694AD2223AB8C37F31F"><enum>(II)</enum><text>has ceased to participate in such training program before completing such training program; and</text> </subclause></clause><clause id="HCCBB9AED4348416B9B5681A6E48AD50C"><enum>(ii)</enum><text>there is no justifiable cause for such failure or cessation; or</text> </clause></subparagraph><subparagraph id="H1ED33C9CA8B746A98B435072D19D1057"><enum>(B)</enum><text>the certification made with respect to such worker under section 425(d) is revoked under paragraph (3) of such section,</text> </subparagraph><continuation-text continuation-text-level="paragraph">no adjustment allowance may be paid to the adversely affected worker under this part for the week in which such failure, cessation, or revocation occurred, or any succeeding week, until the adversely affected worker begins or resumes participation in a training program approved by the Secretary under section (b)(2).</continuation-text></paragraph><paragraph id="HD7CE3AF6342D4511B5AFBF1C5E7E28EF"><enum>(4)</enum><header>Waivers of Training Requirements</header><text display-inline="yes-display-inline">The Secretary may issue a written statement to an adversely affected worker waiving the requirement to be enrolled in training described in subsection (b)(2) if the Secretary determines that it is not feasible or appropriate for the worker, because of 1 or more of the following reasons:</text> <subparagraph id="HCBAC5F0A17044775B44D2E2DF8FB304C"><enum>(A)</enum><header>Recall</header><text>The worker has been notified that the worker will be recalled by the employer from which the separation occurred.</text> </subparagraph><subparagraph id="H3973F243A8C047058820184789193AD3"><enum>(B)</enum><header>Marketable skills</header> <clause id="HEE8CBB955F8A4C4EB08BDDD8BD07B8A5"><enum>(i)</enum><header>In general</header><text>The worker possesses marketable skills for suitable employment (as determined pursuant to an assessment of the worker, which may include the profiling system under section 303(j) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/503">42 U.S.C. 503(j)</external-xref>), carried out in accordance with guidelines issued by the Secretary) and there is a reasonable expectation of employment at equivalent wages in the foreseeable future.</text> </clause><clause id="H51F93A90A79044C1A6C4F27C1D62BFB3"><enum>(ii)</enum><header>Marketable skills defined</header><text>For purposes of clause (i), the term <term>marketable skills</term> may include the possession of a postgraduate degree from an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1002">20 U.S.C. 1002</external-xref>)) or an equivalent institution, or the possession of an equivalent postgraduate certification in a specialized field.</text> </clause></subparagraph><subparagraph id="HF37245AC56F54C0A808563D9079E09CA"><enum>(C)</enum><header>Retirement</header><text>The worker is within 2 years of meeting all requirements for entitlement to either—</text> <clause id="H573595D615654C2EB2F970E214F0C6A2"><enum>(i)</enum><text>old-age insurance benefits under title II of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/401">42 U.S.C. 401 et seq.</external-xref>) (except for application therefor); or</text> </clause><clause id="HD769AAF8D41F4370B871C9B1754573CB"><enum>(ii)</enum><text>a private pension sponsored by an employer or labor organization.</text> </clause></subparagraph><subparagraph id="HEFA565B2A2F44074BFF2C2133F65AB87"><enum>(D)</enum><header>Health</header><text>The worker is unable to participate in training due to the health of the worker, except that a waiver under this subparagraph shall not be construed to exempt a worker from requirements relating to the availability for work, active search for work, or refusal to accept work under Federal or State unemployment compensation laws.</text> </subparagraph><subparagraph id="HF0D8818A29664DF5B928869FEF7E8861"><enum>(E)</enum><header>Enrollment unavailable</header><text>The first available enrollment date for the training of the worker is within 60 days after the date of the determination made under this paragraph, or, if later, there are extenuating circumstances for the delay in enrollment, as determined pursuant to guidelines issued by the Secretary.</text> </subparagraph><subparagraph id="H98E306A3867D4FC9A1B716543177F2E5"><enum>(F)</enum><header>Training not available</header><text>Training described in subsection (b)(2) is not reasonably available to the worker from either governmental agencies or private sources (which may include area career and technical education schools, as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/20/2302">20 U.S.C. 2302</external-xref>), and employers), no training that is suitable for the worker is available at a reasonable cost, or no training funds are available.</text> </subparagraph></paragraph><paragraph id="H3C9E35168D3345D19F6E49930CDB4D98"><enum>(5)</enum><header>Weekly amounts</header><text display-inline="yes-display-inline">The climate change adjustment allowance payable to an adversely affected worker for a week of unemployment shall be an amount equal to 70 percent of the average weekly wage of such worker, but in no case shall such amount exceed the average weekly wage for all workers in the State where the adversely affected worker resides.</text> </paragraph><paragraph id="HE7C6F5DFCE6D4B238679AE0D9FE3EFB0"><enum>(6)</enum><header>Maximum duration of benefits</header><text>An eligible worker may receive a climate change adjustment allowance under this subsection for a period of not longer than 156 weeks.</text> </paragraph></subsection><subsection id="H88DFFAC823564BFA995296E2F4C9B4BB"><enum>(b)</enum><header>Employment services and Training</header><text display-inline="yes-display-inline"></text> <paragraph commented="no" id="H6ED899980683495C9FE52E1AAD6A3C00"><enum>(1)</enum><header>Information and employment services</header><text>The Secretary shall make available, directly or through agreements with the States under section 427(a) to adversely affected workers covered by a certification under section 425(a) the following information and employment services:</text> <subparagraph commented="no" id="HE62E194E58214CF58EB6302F8DE9700A"><enum>(A)</enum><text display-inline="yes-display-inline">Comprehensive and specialized assessment of skill levels and service needs, including through—</text> <clause commented="no" id="H442C1AFF9B394E3FA0ABD0AAB4BF4356"><enum>(i)</enum><text>diagnostic testing and use of other assessment tools; and</text> </clause><clause commented="no" id="HFA26999FAE5549D483C3DDCDE68E526D"><enum>(ii)</enum><text>in-depth interviewing and evaluation to identify employment barriers and appropriate employment goals.</text> </clause></subparagraph><subparagraph commented="no" id="H1A971DBA4A52482ABDA465BD4CE479BB"><enum>(B)</enum><text>Development of an individual employment plan to identify employment goals and objectives, and appropriate training to achieve those goals and objectives.</text> </subparagraph><subparagraph commented="no" id="H46560AE4079B4D99AA684ECBA8B83DF4"><enum>(C)</enum><text display-inline="yes-display-inline">Information on training available in local and regional areas, information on individual counseling to determine which training is suitable training, and information on how to apply for such training.</text> </subparagraph><subparagraph commented="no" id="H6E390DB5028947A69D8F300F2D3F269F"><enum>(D)</enum><text display-inline="yes-display-inline">Information on training programs and other services provided by a State pursuant to title I of the Workforce Investment Act of 1998 and available in local and regional areas, information on individual counseling to determine which training is suitable training, and information on how to apply for such training.</text> </subparagraph><subparagraph commented="no" id="H91F4CA7E27A44949A186F291EEF50784"><enum>(E)</enum><text>Information on how to apply for financial aid, including referring workers to educational opportunity centers described in section 402F of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a-16">20 U.S.C. 1070a–16</external-xref>), where applicable, and notifying workers that the workers may request financial aid administrators at institutions of higher education (as defined in section 102 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1002">20 U.S.C. 1002</external-xref>)) to use the administrators’ discretion under section 479A of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1087tt">20 U.S.C. 1087tt</external-xref>) to use current year income data, rather than preceding year income data, for determining the amount of need of the workers for Federal financial assistance under title IV of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>).</text> </subparagraph><subparagraph commented="no" id="H8475239A7E864B918F6E489DA11C338F"><enum>(F)</enum><text display-inline="yes-display-inline">Short-term prevocational services, including development of learning skills, communications skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct to prepare individuals for employment or training.</text> </subparagraph><subparagraph commented="no" id="HE11E63A4B9C64567A8AC3FFB00BFD636"><enum>(G)</enum><text>Individual career counseling, including job search and placement counseling, during the period in which the individual is receiving a climate change adjustment allowance or training under this part, and after receiving such training for purposes of job placement.</text> </subparagraph><subparagraph commented="no" id="HA19776B71BF14B059B3CDE372476B89C"><enum>(H)</enum><text>Provision of employment statistics information, including the provision of accurate information relating to local, regional, and national labor market areas, including—</text> <clause commented="no" id="HD291AD0EAC454143AAAB470D1E9781B2"><enum>(i)</enum><text>job vacancy listings in such labor market areas;</text> </clause><clause commented="no" id="H3EC13A5D1BD04CE2A3D85DCB258BA6B0"><enum>(ii)</enum><text>information on jobs skills necessary to obtain jobs identified in job vacancy listings described in subparagraph (A);</text> </clause><clause commented="no" id="HDF6FE01B2A214BCBB2ED23203EFF62A2"><enum>(iii)</enum><text>information relating to local occupations that are in demand and earnings potential of such occupations; and</text> </clause><clause commented="no" id="H1D934544A796448A91880BF7F41A8A68"><enum>(iv)</enum><text>skills requirements for local occupations described in subparagraph (C).</text> </clause></subparagraph><subparagraph commented="no" id="HDC9AAB47FE574FA391705AFF4C9DCEE6"><enum>(I)</enum><text>Information relating to the availability of supportive services, including services relating to child care, transportation, dependent care, housing assistance, and need-related payments that are necessary to enable an individual to participate in training.</text> </subparagraph></paragraph><paragraph id="H9BC0834F87DD49AF9C7C3B799C2BB949"><enum>(2)</enum><header>Training</header> <subparagraph id="H650048CD461B46F5A1F0DFBF7D7CCAB9"><enum>(A)</enum><header>Approval of and payment for training</header><text display-inline="yes-display-inline">If the Secretary determines, with respect to an adversely affected worker that—</text> <clause id="HFB392907ABBB44BEA281D83389C4EE8E"><enum>(i)</enum><text>there is no suitable employment (which may include technical and professional employment) available for an adversely affected worker;</text> </clause><clause id="H586CA7799B594D4DB0BA5B9920C81A7B"><enum>(ii)</enum><text>the worker would benefit from appropriate training;</text> </clause><clause id="H39D402FF2FF0497C84A44A0892EFC8C2"><enum>(iii)</enum><text>there is a reasonable expectation of employment following completion of such training;</text> </clause><clause id="H4F72754626B6420D8E943637DFC290EA"><enum>(iv)</enum><text>training approved by the Secretary is reasonably available to the worker from either governmental agencies or private sources (including area career and technical education schools, as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006, and employers);</text> </clause><clause id="H780FE3C24B07498F8BEEA681E03373DB"><enum>(v)</enum><text>the worker is qualified to undertake and complete such training; and</text> </clause><clause id="H77B94E0244FD4AE4AC5C98FF140FB039"><enum>(vi)</enum><text>such training is suitable for the worker and available at a reasonable cost,</text> </clause><continuation-text continuation-text-level="subparagraph">the Secretary shall approve such training for the worker. Upon such approval, the worker shall be entitled to have payment of the costs of such training (subject to the limitations imposed by this section) paid on the worker’s behalf by the Secretary directly or through a voucher system.</continuation-text></subparagraph><subparagraph commented="no" id="H5E3EC2EEC5D349268B58B47F63814798"><enum>(B)</enum><header>Distribution</header><text display-inline="yes-display-inline">The Secretary shall establish procedures for the distribution of the funds to States to carry out the training programs approved under this paragraph, and shall make an initial distribution of the funds made available as soon as practicable after the beginning of each fiscal year.</text> </subparagraph><subparagraph id="HA57A6BF1E4DA46CEB73ACDB3A25DE792"><enum>(C)</enum><header>Additional rules regarding approval of and payment for training</header> <clause id="H2943392DF9D84E9CB14212D927E200BB"><enum>(i)</enum><text display-inline="yes-display-inline">For purposes of applying subparagraph (A)(iii), a reasonable expectation of employment does not require that employment opportunities for a worker be available, or offered, immediately upon the completion of training approved under such subparagraph.</text> </clause><clause id="H36624D73E2D54C24B2F762DE01C143B2"><enum>(ii)</enum><text>If the costs of training an adversely affected worker are paid by the Secretary under subparagraph (A), no other payment for such costs may be made under any other provision of Federal law. No payment may be made under subparagraph (A) of the costs of training an adversely affected worker or an adversely affected incumbent worker if such costs—</text> <subclause id="H372927D484C144EE8A326C3A1DC8372C"><enum>(I)</enum><text>have already been paid under any other provision of Federal law; or</text> </subclause><subclause id="H92E03637E75B4EA8954A94EE7E678AD8"><enum>(II)</enum><text>are reimbursable under any other provision of Federal law and a portion of such costs have already been paid under such other provision of Federal law.</text> </subclause><continuation-text continuation-text-level="clause">The provisions of this clause shall not apply to, or take into account, any funds provided under any other provision of Federal law which are used for any purpose other than the direct payment of the costs incurred in training a particular adversely affected worker, even if such use has the effect of indirectly paying or reducing any portion of the costs involved in training the adversely affected worker.</continuation-text></clause></subparagraph><subparagraph id="HAA705E60D84C4CD0BDC5224AE74262C7"><enum>(D)</enum><header>Training programs</header><text display-inline="yes-display-inline">The training programs that may be approved under subparagraph (A) include—</text> <clause display-inline="no-display-inline" id="H12D2BF0B5BED4FA6BB02368F03813DC9"><enum>(i)</enum><text>employer-based training, including—</text> <subclause commented="no" id="H0D26B039AF944BCA95442877896E5671"><enum>(I)</enum><text>on-the-job training if approved by the Secretary under subsection (c); and</text> </subclause><subclause id="H93F069BD7FC0427CBD61D44CF0E82C6B"><enum>(II)</enum><text>joint labor-management apprenticeship programs;</text> </subclause></clause><clause id="HE0EA6E545CF646C6819C2740F967E4AA"><enum>(ii)</enum><text>any training program provided by a State pursuant to title I of the Workforce Investment Act of 1998;</text> </clause><clause id="H27DEAE011604401DA324B876891698D6"><enum>(iii)</enum><text>any training program approved by a private industry council established under section 102 of such Act;</text> </clause><clause commented="no" id="H2225FC4638E94041BC75342D1488C730"><enum>(iv)</enum><text>any programs in career and technical education described in section 3(5) of the Carl D. Perkins Career and Technical Education Act of 2006;</text> </clause><clause commented="no" id="H7946F12E55D34276A99150B438DD26F8"><enum>(v)</enum><text>any program of remedial education;</text> </clause><clause id="H35659B860D00427BA9EFC201F6F1A959"><enum>(vi)</enum><text>any program of prerequisite education or coursework required to enroll in training that may be approved under this paragraph;</text> </clause><clause commented="no" id="H98494D7B34514C76B1934CEF2ABE5B0C"><enum>(vii)</enum><text>any training program for which all, or any portion, of the costs of training the worker are paid—</text> <subclause commented="no" id="H84B04F388C9B47CDA8DF08C651A3864A"><enum>(I)</enum><text>under any Federal or State program other than this part; or</text> </subclause><subclause commented="no" id="H76477319AD874D5CA62D008F0C4ED8E1"><enum>(II)</enum><text>from any source other than this part;</text> </subclause></clause><clause id="H3015C1DB19FF4D9A8470708C7E7978BD"><enum>(viii)</enum><text>any training program or coursework at an accredited institution of higher education (described in section 102 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1002">20 U.S.C. 1002</external-xref>)), including a training program or coursework for the purpose of—</text> <subclause id="H2F711E529A0F4B28BB4B8FAE6BC110F7"><enum>(I)</enum><text>obtaining a degree or certification; or</text> </subclause><subclause id="H9D9BA147AA9E46DCAAFE548B8B64C850"><enum>(II)</enum><text>completing a degree or certification that the worker had previously begun at an accredited institution of higher education; and</text> </subclause></clause><clause commented="no" id="H4388AEB6088B4407B271EF5BB8992B61"><enum>(ix)</enum><text>any other training program approved by the Secretary.</text> </clause></subparagraph></paragraph><paragraph id="H292AC2E32FEE4D56ABEAD20F48E050CA" indent="up1"><enum>(3)</enum><header>Supplemental assistance</header><text>The Secretary may, as appropriate, authorize supplemental assistance that is necessary to defray reasonable transportation and subsistence expenses for separate maintenance in a case in which training for a worker is provided in a facility that is not within commuting distance of the regular place of residence of the worker.</text> </paragraph></subsection><subsection id="H53BE4F11970B4074983B45A5D4E3EBC1"><enum>(c)</enum><header>On-the-Job Training Requirements</header> <paragraph id="HE3262233590243AF9EE19E3C5FA08014"><enum>(1)</enum><header>In general</header><text>The Secretary may approve on-the-job training for any adversely affected worker if—</text> <subparagraph id="H62706DDE54F548DC85920911BB9A204D"><enum>(A)</enum><text>the Secretary determines that on-the-job training—</text> <clause id="H37F6438B53A845289EE1A91CCBCD337F"><enum>(i)</enum><text>can reasonably be expected to lead to suitable employment with the employer offering the on-the-job training;</text> </clause><clause id="H52056545A62D4444A3D11A9E9DDAD09A"><enum>(ii)</enum><text>is compatible with the skills of the worker;</text> </clause><clause id="H4316803780D34FF4B5022D0B8E702EF1"><enum>(iii)</enum><text>includes a curriculum through which the worker will gain the knowledge or skills to become proficient in the job for which the worker is being trained; and</text> </clause><clause id="H46FE5AC7E7D14DD8BDD423FC3F1DEA64"><enum>(iv)</enum><text>can be measured by benchmarks that indicate that the worker is gaining such knowledge or skills; and</text> </clause></subparagraph><subparagraph id="H888425ACBBA148F9A2DA30728DEDF9BF"><enum>(B)</enum><text>the State determines that the on-the-job training program meets the requirements of clauses (iii) and (iv) of subparagraph (A).</text> </subparagraph></paragraph><paragraph id="H334FFEA684E74F95AF2D9F71557644C7"><enum>(2)</enum><header>Monthly payments</header><text>The Secretary shall pay the costs of on-the-job training approved under paragraph (1) in monthly installments.</text> </paragraph><paragraph id="HD2EAC25CE05045779130A0F89486E9FF"><enum>(3)</enum><header>Contracts for on-the-job training</header> <subparagraph id="HF115F62CFD764930A2EED7BE1F7E4583"><enum>(A)</enum><header>In general</header><text>The Secretary shall ensure, in entering into a contract with an employer to provide on-the-job training to a worker under this subsection, that the skill requirements of the job for which the worker is being trained, the academic and occupational skill level of the worker, and the work experience of the worker are taken into consideration.</text> </subparagraph><subparagraph id="H65552991627D475BB42ACE2832296116"><enum>(B)</enum><header>Term of contract</header><text>Training under any such contract shall be limited to the period of time required for the worker receiving on-the-job training to become proficient in the job for which the worker is being trained, but may not exceed 156 weeks in any case.</text> </subparagraph></paragraph><paragraph id="HBE6EB2281A4442519ABC205A7E4C6255"><enum>(4)</enum><header>Exclusion of certain employers</header><text>The Secretary shall not enter into a contract for on-the-job training with an employer that exhibits a pattern of failing to provide workers receiving on-the-job training from the employer with—</text> <subparagraph id="H4F4F9EB230B54185A9541DACD8EC9F7F"><enum>(A)</enum><text>continued, long-term employment as regular employees; and</text> </subparagraph><subparagraph id="H959F54F59B274DBF86F1B5E2458C2F7B"><enum>(B)</enum><text>wages, benefits, and working conditions that are equivalent to the wages, benefits, and working conditions provided to regular employees who have worked a similar period of time and are doing the same type of work as workers receiving on-the-job training from the employer.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H3F523DB1DCC040EBBAEDE45C2A64E643"><enum>(d)</enum><header>Administrative and employment services Funding</header> <paragraph commented="no" id="HDE66323F150F4DCF920E2521534AA4A8"><enum>(1)</enum><header>Administrative funding</header><text display-inline="yes-display-inline">In addition to any funds made available to a State to carry out this section for a fiscal year, the State shall receive for the fiscal year a payment in an amount that is equal to 15 percent of the amount of such funds and shall—</text> <subparagraph commented="no" id="H0470EDAB08334D79B76C6AA176751D4C"><enum>(A)</enum><text>use not more than <fraction>2⁄3</fraction> of such payment for the administration of the climate change adjustment assistance for workers program under this part, including for—</text> <clause commented="no" id="HE63D2FB5A2E24EFBB86047C712DB6508"><enum>(i)</enum><text>processing waivers of training requirements under subsection (a)(4);</text> </clause><clause commented="no" id="HF764597AF8D94C139339B7F829E62255"><enum>(ii)</enum><text>collecting, validating, and reporting data required under this part; and</text> </clause><clause id="HADF01FDD13AF4FA79D7397712EDF0BDA"><enum>(iii)</enum><text display-inline="yes-display-inline">administering the Climate Change Adjustment Assistance Allowance payments; and</text> </clause></subparagraph><subparagraph commented="no" id="H54897F55E5214380B3D7EE5019AD75D2"><enum>(B)</enum><text>use not less than <fraction>1⁄3</fraction> of such payment for information and employment services under subsection (b)(1).</text> </subparagraph></paragraph><paragraph commented="no" id="H6D24229765224D68859FDC66410E1580"><enum>(2)</enum><header>Employment services funding</header> <subparagraph commented="no" id="H88B3B31571B9459294755DCBB208B4BF"><enum>(A)</enum><header>In general</header><text>In addition to any funds made available to a State to carry out subsection (b)(2) and the payment under paragraph (1) for a fiscal year, the Secretary shall provide to the State for the fiscal year a reasonable payment for the purpose of providing employment and services under subsection (b)(1).</text> </subparagraph><subparagraph commented="no" id="H981A16275FE84216B95379AFCD819385"><enum>(B)</enum><header>Voluntary return of funds</header><text>A State that receives a payment under subparagraph (A) may decline or otherwise return such payment to the Secretary.</text> </subparagraph></paragraph></subsection><subsection id="H93B0A361563849B48FC6A3BA13E8DC9F"><enum>(e)</enum><header>Job search allowances</header><text>The Secretary of Labor may provide adversely affected workers a one-time job search allowance in accordance with regulations prescribed by the Secretary. Any job search allowance provided shall be available only under the following circumstances and conditions:</text> <paragraph id="HB39C13DA40BA488AB8F3CD17F2822FE4"><enum>(1)</enum><text>The worker is no longer eligible for the climate change adjustment allowance under subsection (a) and has completed the training program required by subsection (a)(1)(E).</text> </paragraph><paragraph id="H74B440B6D846440DA5E6639E1A561281"><enum>(2)</enum><text>The Secretary determines that the worker cannot reasonably be expected to secure suitable employment in the commuting area in which the worker resides.</text> </paragraph><paragraph id="HCBACA8829AF54B049CF6E1C75273F3A4"><enum>(3)</enum><text display-inline="yes-display-inline">An allowance granted shall provide reimbursement to the worker of all necessary job search expenses as prescribed by the Secretary in regulations. Such reimbursement under this subsection may not exceed $1,500 for any worker.</text> </paragraph></subsection><subsection id="HC6095964FDAB4AB385ABCB7407FC76CA"><enum>(f)</enum><header>Relocation Allowance Authorized</header> <paragraph id="HCC48108EC0D5459FA8480DAD4563C054"><enum>(1)</enum><header>In general</header><text>Any adversely affected worker covered by a certification issued under section 425 may file an application for a relocation allowance with the Secretary, and the Secretary may grant the relocation allowance, subject to the terms and conditions of this subsection.</text> </paragraph><paragraph id="HAFF1D9DACD1E454B8505CAF89F33BB4C"><enum>(2)</enum><header>Conditions for granting allowance</header><text>A relocation allowance may be granted if all of the following terms and conditions are met:</text> <subparagraph id="H03AC527B12C94B46B94D4FD7382C9DA5"><enum>(A)</enum><header>Assist an adversely affected worker</header><text>The relocation allowance will assist an adversely affected worker in relocating within the United States.</text> </subparagraph><subparagraph id="HA929EFD5C6BB417CBCB03220FA5F028E"><enum>(B)</enum><header>Local employment not available</header><text>The Secretary determines that the worker cannot reasonably be expected to secure suitable employment in the commuting area in which the worker resides.</text> </subparagraph><subparagraph id="H5BB35B590E4D47AABA030D3075682932"><enum>(C)</enum><header>Total separation</header><text>The worker is totally separated from employment at the time relocation commences.</text> </subparagraph><subparagraph id="HC8F932C0B3B94301A2E30AA588713E01"><enum>(D)</enum><header>Suitable employment obtained</header><text>The worker—</text> <clause id="HCD55C6D7CAE94865AF7CFA0CF10D491D"><enum>(i)</enum><text>has obtained suitable employment affording a reasonable expectation of long-term duration in the area in which the worker wishes to relocate; or</text> </clause><clause id="H9BC3B1FBEC454C89A51B74790B5A116C"><enum>(ii)</enum><text>has obtained a bona fide offer of such employment.</text> </clause></subparagraph><subparagraph id="H902E2C1336E54DD7803FB79911089D9B"><enum>(E)</enum><header>Application</header><text>The worker filed an application with the Secretary at such time and in such manner as the Secretary shall specify by regulation.</text> </subparagraph></paragraph><paragraph id="HC7BCF6C4572148678231CBA1959EDFC3"><enum>(3)</enum><header>Amount of Allowance</header><text>The relocation allowance granted to a worker under paragraph (1) includes—</text> <subparagraph id="H43F230469F46480D89DA8D72D9FAE257"><enum>(A)</enum><text>all reasonable and necessary expenses (including, subsistence and transportation expenses at levels not exceeding amounts prescribed by the Secretary in regulations) incurred in transporting the worker, the worker’s family, and household effects; and</text> </subparagraph><subparagraph id="HEADFC535E7E94D9CACF1163E901260A8"><enum>(B)</enum><text>a lump sum equivalent to 3 times the worker’s average weekly wage, up to a maximum payment of $1,500.</text> </subparagraph></paragraph><paragraph id="HEACA7BA5AFC9482E9AA90C6C562F5056"><enum>(4)</enum><header>Limitations</header><text>A relocation allowance may not be granted to a worker unless—</text> <subparagraph id="HDC6AFABCF76C4F75AFD4AE60D3763608"><enum>(A)</enum><text>the relocation occurs within 182 days after the filing of the application for relocation assistance; or</text> </subparagraph><subparagraph id="H4D12C94B6ED04629BED169DAC4109E9E"><enum>(B)</enum><text>the relocation occurs within 182 days after the conclusion of training, if the worker entered a training program approved by the Secretary under subsection (b)(2).</text> </subparagraph></paragraph></subsection><subsection commented="no" id="HC4F8DD1275D3411482E5CFD6D9DB47BE"><enum>(g)</enum><header>Health insurance continuation</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this part, the Secretary of Labor shall prescribe regulations to provide, for the period in which an adversely affected worker is participating in a training program described in subsection (b)(2), 80 percent of the monthly premium of any health insurance coverage that an adversely affected worker was receiving from such worker’s employer prior to the separation from employment described in section 425(b), to be paid to any health care insurance plan designated by the adversely affected worker receiving an allowance under this section.</text> </subsection></section><section id="H3B027271B77E4B58A0AFD48BD0B4A60E"><enum>427.</enum><header>General provisions</header> <subsection id="H4C70A5524B70406889B4A2C845E9DE78"><enum>(a)</enum><header>Agreements with states</header> <paragraph id="H3A8968C178A44A008F78A96DFA56DA12"><enum>(1)</enum><header>In general</header><text>The Secretary is authorized on behalf of the United States to enter into an agreement with any State, or with any State agency (referred to in this section as <quote>cooperating States</quote> and <quote>cooperating States agencies</quote> respectively). Under such an agreement, the cooperating State agency—</text> <subparagraph id="H63496842D63C40BE9A0A43C7E41F9525"><enum>(A)</enum><text>as agent of the United States, shall receive applications for, and shall provide, payments on the basis provided in this part;</text> </subparagraph><subparagraph id="H392E92AB90294C128BF68B71666FA91A"><enum>(B)</enum><text>in accordance with paragraph (6), shall make available to adversely affected workers covered by a certification under section 425(d) the employment services described in section 426(b)(1);</text> </subparagraph><subparagraph id="H31B71B72162A4BE99E6FE56D93FECCF0"><enum>(C)</enum><text>shall make any certifications required under section 425(d);</text> </subparagraph><subparagraph id="H68F44C03A3734A2D816AED14F879DE23"><enum>(D)</enum><text>shall otherwise cooperate with the Secretary and with other State and Federal agencies in providing payments and services under this part.</text> </subparagraph><continuation-text continuation-text-level="paragraph">Each agreement under this section shall provide the terms and conditions upon which the agreement may be amended, suspended, or terminated.</continuation-text></paragraph><paragraph id="H9DA242CE16034F9196FF183E4D5F8C41"><enum>(2)</enum><header>Form and Manner of Data</header><text>Each agreement under this section shall—</text> <subparagraph id="HC00583C394754ECA85013607EEDA7377"><enum>(A)</enum><text>provide the Secretary with the authority to collect any data the Secretary determines necessary to meet the requirements of this part; and</text> </subparagraph><subparagraph id="HC99CA97AF1904AB3AF8A73C637A9024F"><enum>(B)</enum><text>specify the form and manner in which any such data requested by the Secretary shall be reported.</text> </subparagraph></paragraph><paragraph commented="no" id="H9FB03C0139734079848EE987F7288845"><enum>(3)</enum><header>Relationship to unemployment insurance</header><text>Each agreement under this section shall provide that an adversely affected worker receiving a climate change adjustment allowance under this part shall not be eligible for unemployment insurance otherwise payable to such worker under the laws of the State.</text> </paragraph><paragraph id="HE7BE8D78DC6045DE8EF1FA91E6FE5050"><enum>(4)</enum><header>Review</header><text>A determination by a cooperating State agency with respect to entitlement to program benefits under an agreement is subject to review in the same manner and to the same extent as determinations under the applicable State law and only in that manner and to that extent.</text> </paragraph><paragraph id="HD07324A9C32C4857A3BAB35C40EA0082"><enum>(5)</enum><header>Coordination</header><text>Any agreement entered into under this section shall provide for the coordination of the administration of the provisions for employment services, training, and supplemental assistance under section 426 and under title I of the Workforce Investment Act of 1998 upon such terms and conditions as are established by the Secretary in consultation with the States and set forth in such agreement. Any agency of the State jointly administering such provisions under such agreement shall be considered to be a cooperating State agency for purposes of this part.</text> </paragraph><paragraph id="HBA31D5C73DDB46DE80BE19BA88F34B45"><enum>(6)</enum><header>Responsibilities of cooperating agencies</header><text>Each cooperating State agency shall, in carrying out paragraph (1)(B)—</text> <subparagraph id="H47280511D0B5431D9E2EE1744411D33E"><enum>(A)</enum><text>advise each worker who applies for unemployment insurance of the benefits under this part and the procedures and deadlines for applying for such benefits;</text> </subparagraph><subparagraph id="HA93CCBA72CF2490FB180B950EF6F25B8"><enum>(B)</enum><text>facilitate the early filing of petitions under section 425(a) for any workers that the agency considers are likely to be eligible for benefits under this part;</text> </subparagraph><subparagraph id="H8D6CEFCA149D4FA1A468736B38B8DD01"><enum>(C)</enum><text>advise each adversely affected worker to apply for training under section 426(b) before, or at the same time, the worker applies for climate change adjustment allowances under section 426(a);</text> </subparagraph><subparagraph id="HD9C5C1308CD34CF993AE75B00D6312AD"><enum>(D)</enum><text>perform outreach to, intake of, and orientation for adversely affected workers and adversely affected incumbent workers covered by a certification under section 426(a) with respect to assistance and benefits available under this part;</text> </subparagraph><subparagraph id="H357AA99748434A9A97BCA0D927769F06"><enum>(E)</enum><text>make employment services described in section 426(b)(1) available to adversely affected workers and adversely affected incumbent workers covered by a certification under section 425(d) and, if funds provided to carry out this part are insufficient to make such services available, make arrangements to make such services available through other Federal programs; and</text> </subparagraph><subparagraph id="HB0698090E84E495182E9CBD2451372F7"><enum>(F)</enum><text display-inline="yes-display-inline">provide the benefits and reemployment services under this part in a manner that is necessary for the proper and efficient administration of this part, including the use of state agency personnel employed in accordance with a merit system of personnel administration standards, including—</text> <clause id="H8D3FF04EF84045128C09C2CD4D44D278"><enum>(i)</enum><text>making determinations of eligibility for, and payment of, climate change readjustment allowances and health care benefit replacement amounts;</text> </clause><clause id="HCA7548CAB10346FAA5EE9A273EC0521D"><enum>(ii)</enum><text>developing recommendations regarding payments as a bridge to retirement and lump sum payments to pension plans in accordance with this subsection; and</text> </clause><clause id="H15ED90FB70904930B988F8E58055FA84"><enum>(iii)</enum><text>the provision of reemployment services to eligible workers, including referral to training services.</text> </clause></subparagraph></paragraph><paragraph id="H711F981ECB194556ADDE9BFB7AA2DA88"><enum>(7)</enum><text>In order to promote the coordination of workforce investment activities in each State with activities carried out under this part, any agreement entered into under this section shall provide that the State shall submit to the Secretary, in such form as the Secretary may require, the description and information described in paragraphs (8) and (14) of section 112(b) of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2822">29 U.S.C. 2822(b)</external-xref>) and a description of the State's rapid response activities under section 221(a)(2)(A).</text> </paragraph><paragraph id="H45DAAD2DD63947C38921159A727F7FD6"><enum>(8)</enum><header>Control Measures</header> <subparagraph id="H813C6251027944F480A770D521C7FA65"><enum>(A)</enum><header>In general</header><text>The Secretary shall require each cooperating State and cooperating State agency to implement effective control measures and to effectively oversee the operation and administration of the climate change adjustment assistance program under this part, including by means of monitoring the operation of control measures to improve the accuracy and timeliness of the data being collected and reported.</text> </subparagraph><subparagraph id="H8AC848514B264252A03431882A2D0768"><enum>(B)</enum><header>Definition</header><text>For purposes of subparagraph (A), the term <term>control measures</term> means measures that—</text> <clause id="HE1DD563266004744851DB9617CD06956"><enum>(i)</enum><text>are internal to a system used by a State to collect data; and</text> </clause><clause id="H992AEAE8077F4C7699FAEF7D3E51DD8E"><enum>(ii)</enum><text>are designed to ensure the accuracy and verifiability of such data.</text> </clause></subparagraph></paragraph><paragraph id="HBE9AAE047DAA47A285255D58D20DE866"><enum>(9)</enum><header>Data Reporting</header> <subparagraph id="H76687B370DD446B0B891F6ECC7FA5938"><enum>(A)</enum><header>In general</header><text>Any agreement entered into under this section shall require the cooperating State or cooperating State agency to report to the Secretary on a quarterly basis comprehensive performance accountability data, to consist of—</text> <clause id="HDF75367B8B1B42C9ACCE1C06179628FB"><enum>(i)</enum><text>the core indicators of performance described in subparagraph (B)(i);</text> </clause><clause id="H4EB0679A55964C1999A5A3194FD990CF"><enum>(ii)</enum><text>the additional indicators of performance described in subparagraph (B)(ii), if any; and</text> </clause><clause id="H0B077180551D493A88F60BB31012618F"><enum>(iii)</enum><text>a description of efforts made to improve outcomes for workers under the climate change adjustment assistance program.</text> </clause></subparagraph><subparagraph id="H2FD75429D48F4AD487CBB72694BDA633"><enum>(B)</enum><header>Core indicators described</header> <clause id="H50CCA28F80604B3794092285FF9BDCC7"><enum>(i)</enum><header>In general</header><text>The core indicators of performance described in this subparagraph are—</text> <subclause id="H57AAFA50E92C48B1AE98F9B338E4382A"><enum>(I)</enum><text>the percentage of workers receiving benefits under this part who are employed during the second calendar quarter following the calendar quarter in which the workers cease receiving such benefits;</text> </subclause><subclause id="HA9C7E8959CBE48249E2C5978544E44AE"><enum>(II)</enum><text>the percentage of such workers who are employed in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits; and</text> </subclause><subclause id="H8492678BF3C04598BB24E3C3A77AAD37"><enum>(III)</enum><text>the earnings of such workers in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits.</text> </subclause></clause><clause id="H9E8A450997184E76B25C09A505DD2957"><enum>(ii)</enum><header>Additional indicators</header><text>The Secretary and a cooperating State or cooperating State agency may agree upon additional indicators of performance for the climate change adjustment assistance program under this part, as appropriate.</text> </clause></subparagraph><subparagraph id="HF333353AE329487F9032E90CF0579E03"><enum>(C)</enum><header>Standards with respect to reliability of data</header><text>In preparing the quarterly report required by subparagraph (A), each cooperating State or cooperating State agency shall establish procedures that are consistent with guidelines to be issued by the Secretary to ensure that the data reported are valid and reliable.</text> </subparagraph></paragraph><paragraph id="H533BFF22C5CC4D859C14D3DAE62D5D03"><enum>(10)</enum><header>Verification of Eligibility for Program Benefits</header> <subparagraph commented="no" id="H7C7AFE4F1DD6428095C30CB17A269721"><enum>(A)</enum><header>In general</header><text>An agreement under this section shall provide that the State shall periodically redetermine that a worker receiving benefits under this part who is not a citizen or national of the United States remains in a satisfactory immigration status. Once satisfactory immigration status has been initially verified through the immigration status verification system described in section 1137(d) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1320b-7">42 U.S.C. 1320b–7(d)</external-xref>) for purposes of establishing a worker's eligibility for unemployment compensation, the State shall reverify the worker’s immigration status if the documentation provided during initial verification will expire during the period in which that worker is potentially eligible to receive benefits under this part. The State shall conduct such redetermination in a timely manner, utilizing the immigration status verification system described in section 1137(d) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1320b-7">42 U.S.C. 1320b–7(d)</external-xref>).</text> </subparagraph><subparagraph id="H8CD4A74140074A5F83B6FCAAF95C998E"><enum>(B)</enum><header>Procedures</header><text>The Secretary shall establish procedures to ensure the uniform application by the States of the requirements of this paragraph.</text> </subparagraph></paragraph></subsection><subsection id="H236349A6E2BF40F389700C22AD3D7ED6"><enum>(b)</enum><header>Administration absent State agreement</header> <paragraph display-inline="no-display-inline" id="H1A279EC933AA4F47928E2289B23BCD7B"><enum>(1)</enum><text>In any State where there is no agreement in force between a State or its agency under subsection (a), the Secretary shall promulgate regulations for the performance of all necessary functions under section 426, including provision for a fair hearing for any worker whose application for payments is denied.</text> </paragraph><paragraph id="H53A119D721FD4DF68BB81533CF3E1BEA"><enum>(2)</enum><text>A final determination under paragraph (1) with respect to entitlement to program benefits under section 426 is subject to review by the courts in the same manner and to the same extent as is provided by section 205(g) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/405">42 U.S.C. 405(g)</external-xref>).</text> </paragraph></subsection><subsection id="H5C38D099E640432B94481B8060F8B9A1"><enum>(c)</enum><header>Prohibition on contracting with private entities</header><text display-inline="yes-display-inline">Neither the Secretary nor a State may contract with any private for-profit or nonprofit entity for the administration of the climate change adjustment assistance program under this part.</text> </subsection><subsection id="H007AA1F21B5E48619FAFE4666CC15BC7"><enum>(d)</enum><header>Payment to the states</header> <paragraph display-inline="no-display-inline" id="H20EDA6DD7FEA49728529276D5711D7EE"><enum>(1)</enum><header>In general</header><text>The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each cooperating State the sums necessary to enable such State as agent of the United States to make payments provided for by this part.</text> </paragraph><paragraph id="HB965AA401C794B3A829C4962F9323A76"><enum>(2)</enum><header>Restriction</header><text>All money paid a State under this subsection shall be used solely for the purposes for which it is paid; and money so paid which is not used for such purposes shall be returned, at the time specified in the agreement under this section, to the Secretary of the Treasury.</text> </paragraph><paragraph id="H924B2E434A45445EB5F40DEF0A938DC8"><enum>(3)</enum><header>Bonds</header><text>Any agreement under this section may require any officer or employee of the State certifying payments or disbursing funds under the agreement or otherwise participating in the performance of the agreement, to give a surety bond to the United States in such amount as the Secretary may deem necessary, and may provide for the payment of the cost of such bond from funds for carrying out the purposes of this part.</text> </paragraph></subsection><subsection id="HE3EB1B94371B4A3AA061186F24C2FC4A"><enum>(e)</enum><header>Labor standards</header> <paragraph id="HE2A63507858F490BA0D461C4737CE6B4"><enum>(1)</enum><header>Prohibition on displacement</header><text display-inline="yes-display-inline">An individual in an apprenticeship program or on-the-job training program under this part shall not displace (including a partial displacement, such as a reduction in the hours of non-overtime work, wages, or employment benefits) any employed employee.</text> </paragraph><paragraph id="HC3F08075ED084DE8A5467ED3D99695E1"><enum>(2)</enum><header>Prohibition on impairment of contracts</header><text>An apprenticeship program or on-the-job raining program under this Act shall not impair an existing contract for services or collective bargaining agreement, and no such activity that would be inconsistent with the terms of a collective bargaining agreement shall be undertaken without the written concurrence of the labor organization and employer concerned.</text> </paragraph><paragraph id="H2752576565E94C5B96C539278FE74996"><enum>(3)</enum><header>Additional standards</header><text>The Secretary, or a State acting under an agreement described in subsection (a) may pay the costs of on-the-job training, notwithstanding any other provision of this section, only if—</text> <subparagraph id="HA8B249C0E2624FD1ADB30F7A01896ADF"><enum>(A)</enum><text>in the case of training which would be inconsistent with the terms of a collective bargaining agreement, the written concurrence of the labor organization concerned has been obtained;</text> </subparagraph><subparagraph id="H02C4CA8EEAAE4295916795AB8ADE475B"><enum>(B)</enum><text>the job for which such adversely affected worker is being trained is not being created in a promotional line that will infringe in any way upon the promotional opportunities of currently employed individuals;</text> </subparagraph><subparagraph id="HCB621497CA7E4D6591191270B1157FF9"><enum>(C)</enum><text>such training is not for the same occupation from which the worker was separated and with respect to which such worker’s group was certified pursuant to section 425(d);</text> </subparagraph><subparagraph id="HE641FF4A99204ABB945BC273307C1271"><enum>(D)</enum><text>the employer is provided reimbursement of not more than 50 percent of the wage rate of the participant, for the cost of providing the training and additional supervision related to the training; and</text> </subparagraph><subparagraph id="H5EAD0AC7D82B4CC198C5A04C3F866BC3"><enum>(E)</enum><text>the employer has not received payment under with respect to any other on-the-job training provided by such employer which failed to meet the requirements of subparagraphs (A) through (D).</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H15CE47B577024AC3A869803E0D17B4F6"><enum>(f)</enum><header>Definitions</header><text display-inline="yes-display-inline">As used in this part the following definitions apply:</text> <paragraph commented="no" id="HE865744A95CB48EB9387AF027F852996"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>adversely affected employment</term> means employment at an employment site, if workers at such site are eligible to apply for adjustment assistance under this part.</text> </paragraph><paragraph commented="no" id="HEFFF4D22A7F547FBA7F2391622490B52"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>adversely affected worker</term> means an individual who has been totally or partially separated from employment and is eligible to apply for adjustment assistance under this part.</text> </paragraph><paragraph commented="no" id="HDDEC344EC7DA414396677A5013C840D6"><enum>(3)</enum><text display-inline="yes-display-inline">The term <term>average weekly wage</term> means <fraction>1/13</fraction> of the total wages paid to an individual in the quarter in which the individual’s total wages were highest among the first 4 of the last 5 completed calendar quarters immediately before the quarter in which occurs the week with respect to which the computation is made. Such week shall be the week in which total separation occurred, or, in cases where partial separation is claimed, an appropriate week, as defined in regulations prescribed by the Secretary.</text> </paragraph><paragraph commented="no" id="HC59675FCEE78474A86B633246C7466AA"><enum>(4)</enum><text>The term <term>average weekly hours</term> means the average hours worked by the individual (excluding overtime) in the employment from which he has been or claims to have been separated in the 52 weeks (excluding weeks during which the individual was sick or on vacation) preceding the week specified in the last sentence of paragraph (4).</text> </paragraph><paragraph commented="no" id="HBE4FC2DFCC9F4F2D9B295F8794DA4F21"><enum>(5)</enum><text>The term <term>benefit period</term> means, with respect to an individual—</text> <subparagraph commented="no" id="H529E4291B41E453EA9D492FBCF90B160"><enum>(A)</enum><text>the benefit year and any ensuing period, as determined under applicable State law, during which the individual is eligible for regular compensation, additional compensation, or extended compensation; or</text> </subparagraph><subparagraph commented="no" id="HA231D2FC77E04339926B42D89F5E7731"><enum>(B)</enum><text>the equivalent to such a benefit year or ensuing period provided for under the applicable Federal unemployment insurance law.</text> </subparagraph></paragraph><paragraph commented="no" id="H741D461BAAA646E38D7D31A9016FFD8A"><enum>(6)</enum><text display-inline="yes-display-inline">The term <term>consumer goods manufacturing</term> means the electrical equipment, appliance, and component manufacturing industry and transportation equipment manufacturing.</text> </paragraph><paragraph commented="no" id="H5BC72D0889044595939992A8E2964207"><enum>(7)</enum><text display-inline="yes-display-inline">The term <term>employment site</term> means a single facility or site of employment.</text> </paragraph><paragraph commented="no" id="H13D21BD1AD624CF085DD12827C391B23"><enum>(8)</enum><text display-inline="yes-display-inline">The term <quote>energy-intensive manufacturing industries</quote> means all industrial sectors, entities, or groups of entities that meet the energy or greenhouse gas intensity criteria in section 765(b)(2)(A)(i) of the Clean Air Act based on the most recent data available.</text> </paragraph><paragraph id="HFA3AD1B579FD4A79BCB0D73B33A7FAC6"><enum>(9)</enum><text display-inline="yes-display-inline">The term <quote>energy producing and transforming industries</quote> means the coal mining industry, oil and gas extraction, electricity power generation, transmission and distribution, and natural gas distribution.</text> </paragraph><paragraph id="HD377ED93D89F42669AA3DC75AE6C88EB"><enum>(10)</enum><text display-inline="yes-display-inline">The term <quote>industries dependent on energy industries</quote> means rail transportation and pipeline transportation.</text> </paragraph><paragraph commented="no" id="H21252755646E4B4DB7FE810775DE2950"><enum>(11)</enum><text>The term <term>on-the-job training</term> means training provided by an employer to an individual who is employed by the employer.</text> </paragraph><paragraph commented="no" id="H5DA750D2DD4A4E28B75AC23A3EE3493E"><enum>(12)</enum><text>The terms <term>partial separation</term> and <term>partially separated</term> refer, with respect to an individual who has not been totally separated, that such individual has had—</text> <subparagraph commented="no" id="HBEA1E722B3B647949B1AB0FF681D1005"><enum>(A)</enum><text>his or her hours of work reduced to 80 percent or less of his average weekly hours in adversely affected employment; and</text> </subparagraph><subparagraph commented="no" id="HE1A7A2F8CC3147C9B487D37CFE0548C2"><enum>(B)</enum><text>his or her wages reduced to 80 percent or less of his average weekly wage in such adversely affected employment.</text> </subparagraph></paragraph><paragraph commented="no" id="H0F31462C066848E7AAA4617D67A30E1F"><enum>(13)</enum><text display-inline="yes-display-inline">The term <quote>public agency</quote> means a department or agency of a State or political subdivision of a State or of the Federal Government.</text> </paragraph><paragraph id="H6FC7F923775E4E458FE12D80CF7776AE"><enum>(14)</enum><text>The term <term>Secretary</term> means the Secretary of Labor.</text> </paragraph><paragraph commented="no" id="H34765C817BBD4F2F9D5199064C86853B"><enum>(15)</enum><text display-inline="yes-display-inline">The term <term>service workers</term> means workers supplying support or auxiliary services to an employment site.</text> </paragraph><paragraph commented="no" id="HD532F53C380645058F05C5F0E77C352A"><enum>(16)</enum><text>The term <term>State agency</term> means the agency of the State which administers the State law.</text> </paragraph><paragraph commented="no" id="H6E73BD44AAFD42C09355EABC86EA5118"><enum>(17)</enum><text>The term <term>State law</term> means the unemployment insurance law of the State approved by the Secretary of Labor under section 3304 of the Internal Revenue Code of 1954.</text> </paragraph><paragraph commented="no" id="HC81A25B1804B4A159ADF8DB07BED3C09"><enum>(18)</enum><text>The terms <term>total separation</term> and <term>totally separated</term> refer to the layoff or severance of an individual from employment with an employer in which adversely affected employment exists.</text> </paragraph><paragraph commented="no" id="H88A9DDA233CA4C81A23AF66176C16E3C"><enum>(19)</enum><text>The term <term>unemployment insurance</term> means the unemployment compensation payable to an individual under any State law or Federal unemployment compensation law, including <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/85">chapter 85</external-xref> of title 5, United States Code, and the Railroad Unemployment Insurance Act. The terms <term>regular compensation</term>, <term>additional compensation</term>, and <term>extended compensation</term> have the same respective meanings that are given them in section 205(2), (3), and (4) of the Federal-State Extended Unemployment Compensation Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note).</text> </paragraph><paragraph commented="no" id="HFA4572A37D954A5484E47F07E921CEE6"><enum>(20)</enum><text>The term <term>week</term> means a week as defined in the applicable State law.</text> </paragraph><paragraph commented="no" id="H5E5F4625707A49E0A52C2A4FA62D533D"><enum>(21)</enum><text>The term <term>week of unemployment</term> means a week of total, part-total, or partial unemployment as determined under the applicable State law or Federal unemployment insurance law.</text> </paragraph></subsection><subsection id="HE5FFF94ABAC5444E9F300D32C8DE2431"><enum>(g)</enum><header>Special Rule With Respect to Military Service</header> <paragraph id="HE1C56E95F96F45EEAFB85905DD57E6EB"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of this part, the Secretary may waive any requirement of this part that the Secretary determines is necessary to ensure that an adversely affected worker who is a member of a reserve component of the Armed Forces and serves a period of duty described in paragraph (2) is eligible to receive a climate change adjustment allowance, training, and other benefits under this part in the same manner and to the same extent as if the worker had not served the period of duty.</text> </paragraph><paragraph id="HD30C839BEE6048439B17CF8964F714DD"><enum>(2)</enum><header>Period of duty described</header><text>An adversely affected worker serves a period of duty described in this paragraph if, before completing training under this part, the worker—</text> <subparagraph id="H1CB6CC5DA2364B2091BF91F71A82C8D0"><enum>(A)</enum><text>serves on active duty for a period of more than 30 days under a call or order to active duty of more than 30 days; or</text> </subparagraph><subparagraph id="H4785D312354A4F9597A60DAEEFE1BD5A"><enum>(B)</enum><text>in the case of a member of the Army National Guard of the United States or Air National Guard of the United States, performs full-time National Guard duty under <external-xref legal-doc="usc" parsable-cite="usc/32/502">section 502(f)</external-xref> of title 32, United States Code, for 30 consecutive days or more when authorized by the President or the Secretary of Defense for the purpose of responding to a national emergency declared by the President and supported by Federal funds.</text> </subparagraph></paragraph></subsection><subsection id="HA8519DEA29C94325BBAF299EA0884946"><enum>(h)</enum><header>Fraud and recovery of overpayments</header> <paragraph id="H00D0B51549F84CB08F796E48AA5E2A44"><enum>(1)</enum><header>Recovery of payments to which an individual was not entitled</header><text display-inline="yes-display-inline">If the Secretary or a court of competent jurisdiction determines that any person has received any payment under this part to which the individual was not entitled, such individual shall be liable to repay such amount to the Secretary, as the case may be, except that the Secretary shall waive such repayment if such agency or the Secretary determines that—</text> <subparagraph id="HC0F6E24EB4C94199B6BFBEE2A5FB17B6"><enum>(A)</enum><text>the payment was made without fault on the part of such individual; and</text> </subparagraph><subparagraph id="HE6EFCD206B0C441BB028698DD3356A0A"><enum>(B)</enum><text>requiring such repayment would cause a financial hardship for the individual (or the individual’s household, if applicable) when taking into consideration the income and resources reasonably available to the individual (or household) and other ordinary living expenses of the individual (or household).</text> </subparagraph></paragraph><paragraph id="HC9341D77AB754708A9D71FA2CB59562A"><enum>(2)</enum><header>Means of Recovery</header><text display-inline="yes-display-inline">Unless an overpayment is otherwise recovered, or waived under paragraph (1), the Secretary shall recover the overpayment by deductions from any sums payable to such person under this part, under any Federal unemployment compensation law or other Federal law administered by the Secretary which provides for the payment of assistance or an allowance with respect to unemployment. Any amount recovered under this section shall be returned to the Treasury of the United States.</text> </paragraph></subsection><subsection id="HFDBC749ACF57489DADDBD6DECF8637FC"><enum>(i)</enum><header>Regulations</header><text>The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this part.</text> </subsection><subsection id="H05F55CE243F244B080A5098B0B2AE278"><enum>(j)</enum><header>Study on older workers</header><text display-inline="yes-display-inline">The Secretary shall conduct a study examine the circumstances of older adversely affected workers and the ability of such workers to access their retirement benefits. The Secretary shall transmit a report to Congress not later than 2 years after the date of enactment of this part on the findings of the study and the Secretary’s recommendations on how to ensure that adversely affected workers within 2 years of retirement are able to access their retirement benefits.</text> </subsection><subsection id="H70174FB86C7045C8A55965E604B198CA"><enum>(k)</enum><header>Spending limit</header><text>For each fiscal year, the total amount of funds disbursed for the purposes described in section 426 shall not exceed the amount deposited in that fiscal year into the Climate Change Worker Assistance Fund established under section 782(j) of the Clean Air Act. The annual spending limit for any succeeding year shall be increased by the difference, if any, between the amount of the prior year’s disbursements and the spending limitation for that year. The Secretary shall promulgate rules to ensure that this spending limit is not exceeded. Such rules shall provide that workers who receive any of the benefits described in section 426 receive full benefits, and shall include the establishment of a waiting list for workers in the event that the requests for assistance exceed the spending limit.</text> </subsection></section></part></subtitle><subtitle id="H29007B0A15BD4EA68B480D6AB2002CBC"><enum>C</enum><header>Consumer assistance</header> <section id="H67A64FFACC6C43E789B3637DAF1A7FD4" section-type="subsequent-section"><enum>431.</enum><header>Energy refund program</header><text display-inline="no-display-inline">The Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/201">42 U.S.C. 201 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H514764AD253D414C9B7378DDC8824ED1" style="OLC"> <title id="H80D104A0C6A5425B8A75F59DDBD2A97B"><enum>XXII</enum><header>Energy refund program</header> <section id="H4A806603C8374BBD8C9A880843388430"><enum>2201.</enum><header>Energy refund program</header> <subsection id="H3ACC63B174CD453E90FD5FB075381CDD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall formulate and administer the program provided for in this section, which shall be known as the <quote>Energy Refund Program</quote>, and under which eligible low-income households are provided cash payments to reimburse the households for the estimated loss in their purchasing power resulting from the American Clean Energy and Security Act of 2009.</text> </subsection><subsection id="H0A41CFC0FCA94A75ADEE9531F658A791"><enum>(b)</enum><header>Entitlement of eligible households to cash payments</header><text>At the request of the State agency of a State, each eligible low-income household in the State shall be entitled to receive monthly cash payments under this section in an amount equal to the monthly energy refund amount determined under subsection (d).</text> </subsection><subsection id="H20AA8E5619994CD881A6F0906EFAC3DA"><enum>(c)</enum><header>Eligibility</header> <paragraph id="H12BD32303A3A4211B2836B89E5B57416"><enum>(1)</enum><header>Eligible households</header><text>A household shall be considered to be an eligible low-income household for purposes of this section if—</text> <subparagraph id="H34BD45F4B0D146D7B3CDAA320062F655"><enum>(A)</enum><text>the gross income of the household does not exceed the greater of—</text> <clause id="HC65DCAF06F8742D5B88C5CF066659522"><enum>(i)</enum><text>150 percent of the poverty line; or</text> </clause><clause id="H7D3526A9506D4EFDAD4653A0EA11114F"><enum>(ii)</enum><text>the greatest amount of household gross income in respect of which a benefit could be payable under subsection (d)(2)(B);</text> </clause></subparagraph><subparagraph id="HD809D7089FC14BC496D1E9033C89EA44"><enum>(B)</enum><text>the State agency of the State in which the household is located determines that the household is participating in—</text> <clause id="H81D65B71C12E4CE68B9F2741FDDE4CBC"><enum>(i)</enum><text>the Supplemental Nutrition Assistance Program authorized by the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2011">7 U.S.C. 2011 et seq.</external-xref>);</text> </clause><clause id="HA83AE1FB70A4473B8D9FAFE2EEC534AC"><enum>(ii)</enum><text>the Food Distribution Program on Indian Reservations authorized by section 4(b) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2013">7 U.S.C. 2013(b)</external-xref>); or</text> </clause><clause id="HA61945214202459BBB695B97713513AF"><enum>(iii)</enum><text>the program for nutrition assistance in Puerto Rico or American Samoa under section 19 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2028">7 U.S.C. 2028</external-xref>);</text> </clause></subparagraph><subparagraph id="HE7B894A7ECC24852B0929E80D95A56C7"><enum>(C)</enum><text>the household consists of a single individual or a married couple, and—</text> <clause id="H881B03680EB44F1E9A5630D48654BB5E"><enum>(i)</enum><text>receives the subsidy described in section 1860D–14 of this Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114</external-xref>); or</text> </clause><clause id="HEA1100295870414793423069C2A3C782"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H32F2307F1BDD47DC8B50446E0B38622A"><enum>(I)</enum><text>participates in the program under title XVIII of this Act; and</text> </subclause><subclause id="H8EE4F72A720E49B6851244A35039A5B0" indent="up1"><enum>(II)</enum><text>meets the income requirements described in section 1860D–14(a)(1) or (a)(2) of this Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)(1)</external-xref> or (a)(2)); or</text> </subclause></clause></subparagraph><subparagraph id="HC84395F2BC084F1CB143BEECEAEBC432"><enum>(D)</enum><text display-inline="yes-display-inline">the household consists of a single individual or a married couple, and receives benefits under the supplemental security income program under title XVI of this Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1381">42 U.S.C. 1381–1383f</external-xref>).</text> </subparagraph></paragraph><paragraph id="H52859CF60DA64FC3806C1E6B428811DF"><enum>(2)</enum><header>Streamlined participation for certain beneficiaries</header><text display-inline="yes-display-inline">The Secretary shall—</text> <subparagraph id="H900B0C3F5DB648F68BDF4EA90DB8EF9F"><enum>(A)</enum><text>periodically estimate the number of eligible beneficiaries and households, and the number of participating beneficiaries and households, for the Energy Refund Program; and</text> </subparagraph><subparagraph id="HCFF0EC51C084450A84FBC7CF660FD2DC"><enum>(B)</enum><text display-inline="yes-display-inline">develop procedures, in consultation with the Commissioner of Social Security, the Railroad Retirement Board, the Secretary of Veterans Affairs, and the State agencies, to ensure that low-income beneficiaries of the benefit programs administered by such entities receive the energy refund for which the beneficiaries are eligible under the Energy Refund Program.</text> </subparagraph></paragraph><paragraph id="HAD4E1629F83446F29212CCA5CAD8A6BD"><enum>(3)</enum><header>Limitation</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, the Secretary shall provide refunds to United States citizens, United States nationals, and individuals lawfully residing in the United States who qualify for a refund under paragraph (1)(A), and shall establish procedures to ensure that other individuals do not receive refunds.</text> </paragraph><paragraph id="H3C3EA85CF1A841DFA8E303526D1C3827"><enum>(4)</enum><header>National standards</header><text display-inline="yes-display-inline">The Secretary shall consult with the Secretary of Agriculture and establish uniform national standards of eligibility ensuring that States may seamlessly co-administer the energy refund program with the Supplemental Nutrition Assistance Program in accordance with the provisions of this section. No State agency shall impose any other standard or requirement as a condition of eligibility or refund receipt under the program. Assistance in the Energy Refund Program shall be furnished promptly to all eligible households who make application for such participation or are already enrolled in any program referred to in paragraph (1).</text> </paragraph></subsection><subsection id="H254827DAF65549A8863CFAAB2CEA7668"><enum>(d)</enum><header>Monthly energy refund amount</header> <paragraph id="HA9F6A185777043399C5234A7A7FC0C93"><enum>(1)</enum><header>Estimated annual total loss in purchasing power</header><text display-inline="yes-display-inline">Not later than August 31 of each fiscal year, the Energy Information Administration shall estimate the annual total loss in purchasing power that will result from American Clean Energy and Security Act of 2009 in the next fiscal year for households of each size with gross income equal to 150 percent of the poverty line, based on the projected total market value of all compliance costs (including, but not limited to, the emissions allowances used to demonstrate compliance with title VII of the Clean Air Act in the next fiscal year, and excluding costs that are not projected to be incurred by households as a result of allowances freely allocated and intended for residential consumer assistance pursuant to sections 783 through 785 of the Clean Air Act), in a way generally recognized as suitable by experts.</text> </paragraph><paragraph id="H8F61A03E665F48168016CA60E713C0FF"><enum>(2)</enum><header>Monthly energy refund</header><text display-inline="yes-display-inline">The monthly energy refund amount for an eligible household under this section shall be—</text> <subparagraph id="H3C0228DBB0934A409B0A474F3BAC73F7"><enum>(A)</enum><text display-inline="yes-display-inline">if the gross income of the household does not exceed 150 percent of the poverty line applicable to the household—</text> <clause id="HFE2F24662B3F4261AC43191D432E8E46"><enum>(i)</enum><text display-inline="yes-display-inline">if the household has 1, 2, 3, or 4 members, <fraction>1/12</fraction> of the amount estimated under paragraph (1) for a household of the same size, rounded to the nearest whole dollar amount; or</text> </clause><clause id="HEEB910D348FB47D4B491F6456BA5A743"><enum>(ii)</enum><text display-inline="yes-display-inline">if the household has 5 or more members, <fraction>1/12</fraction> of the arithmetic mean value of the amounts estimated under paragraph (1) for households with 5 or more members, rounded to the nearest whole dollar amount; or</text> </clause></subparagraph><subparagraph id="H2453318B9EC8470DB2351BF8B47320EA"><enum>(B)</enum><text display-inline="yes-display-inline">if the gross income of the household exceeds 150 percent of the poverty line applicable to the household, <fraction>1/12</fraction> of the amount (if any) by which—</text> <clause id="HA71AF411D86D4C808402C6F38459B665"><enum>(i)</enum><text>the amount estimated under paragraph (1) for a household of the same size; exceeds</text> </clause><clause id="H8E4F7DCE347B4FB9AF24E1D37B66811E"><enum>(ii)</enum><text>20 percent of the amount by which the gross income of the household exceeds 150 percent of the poverty line.</text> </clause></subparagraph></paragraph></subsection><subsection id="H1469C3E0C64D4531BAB6A20C8C879E13"><enum>(e)</enum><header>Delivery mechanism</header> <paragraph id="HEC0EB4C364764F59B17F4AE86E8F5F9F"><enum>(1)</enum><text>Subject to standards and an implementation schedule set by the Secretary, the energy refund shall be provided in monthly installments via—</text> <subparagraph id="H823B68A488BC4A6E8B1322C8158DD67C"><enum>(A)</enum><text>direct deposit into the eligible household’s designated bank account;</text> </subparagraph><subparagraph id="HFF66501DA7E24D0580F0ABA808E66940"><enum>(B)</enum><text>the State’s electronic benefit transfer system; or</text> </subparagraph><subparagraph id="H07C30288C44247D5A044147E2B2CFC2C"><enum>(C)</enum><text>another Federal or State mechanism, if such a mechanism is approved by the Secretary.</text> </subparagraph></paragraph><paragraph id="H7419EEFA524047FFBE982F54EB229555"><enum>(2)</enum><text>Such standards shall include—</text> <subparagraph id="H4D342E85902E4ECA9A66529A82711FA1"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H65A1F7065D4945E4A7CE85AA8B8F6483"><enum>(i)</enum><text display-inline="yes-display-inline">defining the required level of recipient protection regarding privacy;</text> </clause><clause id="H17938535058246B4A019A768B4FC3FCF" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">guidance on how recipients are offered choices, when relevant, about the delivery mechanism;</text> </clause><clause id="H0022773108F94E4BB18E0E1C778DDDAA" indent="up1"><enum>(iii)</enum><text>guidance on ease of use and access to the refund, including the prohibition of fees charged to recipients for withdrawals or other services; and</text> </clause><clause id="HF6E83C106FF94311A1E0C0FF1D60D77D" indent="up1"><enum>(iv)</enum><text>cost-effective protections against improper accessing of the energy refund;</text> </clause></subparagraph><subparagraph id="HFC6B819409DC4049A09E6D18014B33C0"><enum>(B)</enum><text>operating standards that provide for interoperability between States and law enforcement monitoring; and</text> </subparagraph><subparagraph id="H379EBADC092948779D8581AC42CB85D6"><enum>(C)</enum><text>other standards, as determined by the Secretary or the Secretary’s designee.</text> </subparagraph></paragraph></subsection><subsection id="H6666240300C6411290CAC6AE6E7B8093"><enum>(f)</enum><header>Administration</header> <paragraph id="H67CB4322A48444E4AF4551AF9BB11A6B"><enum>(1)</enum><header>In general</header><text>The State agency of each participating State shall assume responsibility for the certification of applicant households and for the issuance of refunds and the control and accountability thereof.</text> </paragraph><paragraph id="HAE302E1A049E4DEBB069974A8C613ACD"><enum>(2)</enum><header>Procedures</header><text>Under standards established by the Secretary, the State agency shall establish procedures governing the administration of the Energy Refund Program that the State agency determines best serve households in the State, including households with special needs, such as households with elderly or disabled members, households in rural areas, homeless individuals, and households residing on reservations as defined in the Indian Child Welfare Act of 1978 and the Indian Financing Act of 1974. In carrying out this paragraph, a State agency—</text> <subparagraph id="HDB8CAF1D624A421A84D50D99332ADDFE"><enum>(A)</enum><text>shall provide timely, accurate, and fair service to applicants for, and participants in, the Energy Refund Program;</text> </subparagraph><subparagraph id="H52AEDD1766FD4B4CA9E8E23789C50F93"><enum>(B)</enum><text>shall permit an applicant household to apply to participate in the program at the time that the household first contacts the State agency, and shall consider an application that contains the name, address, and signature of the applicant to be sufficient to constitute an application for participation;</text> </subparagraph><subparagraph id="H66727DA93D384A4088FAF9C08EA4FE33"><enum>(C)</enum><text>shall screen any applicant household for the Supplemental Nutrition Assistance Program, the State’s medical assistance program under section XIX of this Act, State Childrens Health Insurance Program under section XXI of this Act, and a State program that provides basic assistance under a State program funded under title IV of this Act or with qualified State expenditures as defined in section 409(a)(7) of this Act for eligibility for the Energy Refund Program and, if eligible, shall enroll such applicant household in the Energy Refund Program;</text> </subparagraph><subparagraph id="HC5BEF6C749204F4E988995A207076A7C"><enum>(D)</enum><text>shall complete certification of and provide a refund to any eligible household not later than 30 days following its filing of an application;</text> </subparagraph><subparagraph id="H9633E559F1E44599ABEFDE019B4FCE0A"><enum>(E)</enum><text>shall use appropriate bilingual personnel and materials in the administration of the program in those portions of the State in which a substantial number of members of low-income households speak a language other than English; and</text> </subparagraph><subparagraph id="H5DB8310CD64C4A7DBE5CFF94D7F265C3"><enum>(F)</enum><text>shall utilize State agency personnel who are employed in accordance with the current standards for a Merit System of Personnel Administration or any standards later prescribed by the Office of Personnel Management pursuant to section 208 of the Intergovernmental Personnel Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/42/4728">42 U.S.C. 4728</external-xref>) modifying or superseding such standards relating to the establishment and maintenance of personnel standards on a merit basis to make all tentative and final determinations of eligibility and ineligibility.</text> </subparagraph></paragraph><paragraph id="HFE77AC30650C4D56BFA16663C19600EB"><enum>(3)</enum><header>Regulations</header> <subparagraph id="H428443C7CD79423CBEDA184EAF9C0C8D"><enum>(A)</enum><text>Except as provided in subparagraph (B), the Secretary shall issue such regulations consistent with this section as the Secretary deems necessary or appropriate for the effective and efficient administration of the Energy Refund Program, and shall promulgate all such regulations in accordance with the procedures set forth in <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code.</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H15542DF161F142D1AF8B0BBD4EEFA91C"><enum>(B)</enum><text display-inline="yes-display-inline">Without regard to <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5 of such Code, the Administrator may by rule promulgate as final, to be effective until no later than 2 years after the date of the enactment of the American Clean Energy and Security Act of 2009, any procedures that are substantially the same as the procedures governing the Supplemental Nutrition Assistance Program in section 273.2, 273.12, or 273.15 of title 7, Code of Federal Regulations.</text> </subparagraph><subparagraph id="H010F649C674041F78E0691CE23A9F349"><enum>(C)</enum><text display-inline="yes-display-inline">Notwithstanding subsection (i)(4), the Secretary may promulgate regulations allowing for streamlined eligibility determinations for some or all households which include individuals receiving assistance under a State plan approved under title XIX or XXI of this Act. The regulations may institute procedures whereby the income and family size information used for determining eligibility under such title XIX or XXI may be the basis for determining eligibility for the Energy Refund Program.</text> </subparagraph><subparagraph id="H00ECDA64F2084053A454CC1A5A79F743"><enum>(D)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, the Secretary may authorize States to provide benefits under this section on a quarterly basis if the Secretary determines that the amount of the benefits that would be provided on a monthly basis to households is insufficient to be efficiently paid on a monthly basis in light of the administrative expenses of the Energy Refund Program.</text> </subparagraph></paragraph></subsection><subsection id="HD9AD71F614A34ED79C9ED9B0A4C1E5F2"><enum>(g)</enum><header>Treatment</header><text>The value of the refund provided under this section shall not be considered income or resources for any purpose under any Federal, State, or local laws, including, but not limited to, laws relating to an income tax, or public assistance programs (including, but not limited to, health care, cash aid, child care, nutrition programs, and housing assistance) and no participating State or political subdivision thereof shall decrease any assistance otherwise provided an individual or individuals because of the receipt of a refund under this section.</text> </subsection><subsection id="HCCBAABFCF00F4BD7A822DDBB47AD4872"><enum>(h)</enum><header>Program integrity</header><text display-inline="yes-display-inline">For purposes of ensuring program integrity and complying with the requirements of the Improper Payment Information Act of 2002, the Secretary shall, to the maximum extent possible, rely on and coordinate with the quality control sample and review procedures of paragraphs (2), (3), (4), and (5) of section 16(c) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2025">7 U.S.C. 2025(c)</external-xref>).</text> </subsection><subsection id="H2D0E42137A084348AD89BF7BC05912DC"><enum>(i)</enum><header>Definitions</header> <paragraph id="HF9126146A0B345599F6E805BE0AE3897"><enum>(1)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of Health and Human Services or the head of another agency designated by the Secretary of Health and Human Services.</text> </paragraph><paragraph id="H879C003760E74C17904D973DF83B916F"><enum>(2)</enum><header>Electronic benefit transfer system</header><text>The term <quote>electronic benefit transfer system</quote> means a system by which household benefits or refunds defined under subsection (e) are issued from and stored in a central databank via electronic benefit transfer cards.</text> </paragraph><paragraph id="H79AF313322A24C53A4A894B30F148F99"><enum>(3)</enum><header>Gross income</header><text>The term <quote>gross income</quote> means the gross income of a household that is determined in accordance with standards and procedures established under section 5 of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2014">7 U.S.C. 2014</external-xref>) and its implementing regulations.</text> </paragraph><paragraph id="H4089E05B4FBD4788BFF0148E18F1109E"><enum>(4)</enum><header>Household</header> <subparagraph id="H4435103B84164AE2BCC930AB0D3D2F9C"><enum>(A)</enum><text>The term <quote>household</quote> means—</text> <clause display-inline="no-display-inline" id="HA4953A8723484627B52A8D913019586F"><enum>(i)</enum><text>in subparagraphs (A) and (B) of subsection (c)(1) of this section, except as provided in subparagraph (C) of this paragraph, an individual or a group of individuals who are a household under section 3(n) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2012">7 U.S.C. 2012(n)</external-xref>);</text> </clause><clause id="H17F3155627594A0C97910142285234B1"><enum>(ii)</enum><text>in subsection (c)(1)(C) of this section, a single individual or married couple that receives benefits under section 1860D–14 of this Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114</external-xref>); and</text> </clause><clause id="H15B66F13450B44E3B545D9FCDB090758"><enum>(iii)</enum><text display-inline="yes-display-inline">in subsection (c)(1)(D) of this section, a single individual or married couple that receives benefits under the supplemental security income program under title XVI of this Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1381">42 U.S.C. 1381–1383f</external-xref>).</text> </clause></subparagraph><subparagraph id="HF7165AAFCEC24262A5B2A3A324690E0D"><enum>(B)</enum><text>The Secretary shall establish rules for providing the energy refund in an equitable and administratively simple manner to households where the group of individuals who live together includes members not all of whom are described in a single clause of subparagraph (A), or includes additional members not described in any such clause.</text> </subparagraph><subparagraph id="H14CA9DE3465A4B07A81ECB81C7C392B2"><enum>(C)</enum><text>The Secretary shall establish rules regarding the eligibility and delivery of the energy refund to groups of individuals described in section 3(n)(4) or (5) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2012">7 U.S.C. 2012(n)</external-xref>).</text> </subparagraph></paragraph><paragraph id="HD4A613AF1BE54A76BA88DF6A7208CE1D"><enum>(5)</enum><header>Poverty line</header><text>The term <quote>poverty line</quote> has the meaning given the term in section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>), including any revision required by that section.</text> </paragraph><paragraph id="H1D44149D97CB4818B8683F00DE4175D2"><enum>(6)</enum><header>State</header><text>The term <quote>State</quote> means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the United States Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands.</text> </paragraph><paragraph id="HC9D3ACD1319A4C9B8DBD8A5313C37C02"><enum>(7)</enum><header>State agency</header><text>The term <quote>State agency</quote> means an agency of State government, including the local offices thereof, that has responsibility for administration of the 1 or more federally aided public assistance programs within the State, and in those States where such assistance programs are operated on a decentralized basis, the term shall include the counterpart local agencies administering such programs.</text> </paragraph><paragraph id="H6600EE99E99641C69248D90D861C58F0"><enum>(8)</enum><header>Other terms</header><text display-inline="yes-display-inline">Other terms not defined in this title shall have the same meaning applied in the Supplemental Nutrition Assistance Program authorized by the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2011">7 U.S.C. 2011 et seq.</external-xref>) unless the Secretary finds for good cause that application of a particular definition would be detrimental to the purposes of the Energy Refund Program.</text> </paragraph></subsection></section>

432.

Modification of earned income credit amount for individuals with no qualifying children

(a)

In general

Subsection (b) of section 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(4)

Special rule for individuals with no qualifying children who are affected by the American Clean Energy and Security Act of 2009

(A)

In general

In the case of any household which the Secretary determines experienced a reduction in purchasing power as a result of the provisions of, or amendments made by, the American Clean Energy and Security Act of 2009 (determined without regard to this paragraph and section 2201 of the Social Security Act)— (i)

Increase in credit percentage and phaseout percentage

The table contained in paragraph (1)(A) shall be applied by substituting 15.3 for 7.65. (ii)

Increase in beginning phaseout amount

The table contained in paragraph (2)(A) shall be applied by substituting $11,640 for $5,280. (B)

Inflation adjustment

(i)

In general

In the case of any taxable year beginning after 2012, the $11,640 amount in subparagraph (A)(ii) shall be increased by an amount equal to— (I)such dollar amount, multiplied by (II)the cost of living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting calendar year 2011 for calendar year 1992 in subparagraph (B) thereof. (ii)

Rounding

Subparagraph (A) of subsection (j)(2) shall apply after taking into account any increase under clause (i) in the same manner as if such increase were under paragraph (1) of subsection (j). (iii)

Coordination with other inflation adjustments

Paragraph (1) of subsection (j) shall not apply to the dollar amount substituted under subparagraph (A)(ii).

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

433.

Protection of Social Security and Medicare trust funds

(a)

OASDI trust funds

Section 201 of the Social Security Act (42 U.S.C. 401) is amended by adding at the end the following new subsection:

(o)The Secretary of the Treasury shall transfer from time to time to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, from amounts in the general fund of the Treasury that are not otherwise appropriated, such sums as the Chief Actuary of the Social Security Administration calculates as necessary (and so certifies to such Secretary) for any fiscal year, on account of changes in benefit costs and changes in tax revenue attributable to the provisions of the American Clean Energy and Security Act of 2009 and the amendments made thereby, in order to place each of such Trust Funds in the same position at the end of such fiscal year as the position in which such Trust Fund would have been if such changes had not occurred.

(b)

HI trust fund

Section 1817 of such Act (42 U.S.C. 1395i) is amended by adding at the end the following new subsection:

(l)

Transfers to account for changes in benefit costs and changes in tax revenue attributable to the American Clean Energy and Security Act of 2009

The Secretary of the Treasury shall transfer from time to time to the Trust Fund, from amounts in the general fund of the Treasury that are not otherwise appropriated, such sums as the Chief Actuary of the Centers for Medicare & Medicaid Services calculates as necessary (and so certifies to such Secretary) for any fiscal year, on account of changes in benefit costs and changes in tax revenue attributable to the provisions of the American Clean Energy and Security Act of 2009 and the amendments made thereby, in order to place the Trust Fund in the same position at the end of such fiscal year as the position in which it would have been if such changes had not occurred.

Exporting Clean Technology

441.

Findings and purposes

(a)

Findings

Congress finds the following: (1)Protecting Americans from the impacts of climate change requires global reductions in greenhouse gas emissions. (2)Although developing countries are historically least responsible for the cumulative greenhouse gas emissions that are causing climate change and continue to have very low per capita greenhouse gas emissions, their overall greenhouse gas emissions are increasing as they seek to grow their economies and reduce energy poverty for their populations. (3)Many developing countries lack the financial and technical resources to adopt clean energy technologies and absent assistance their greenhouse gas emissions will continue to increase. (4)Investments in clean energy technology cooperation can substantially reduce global greenhouse gas emissions while providing developing countries with incentives to adopt policies that will address competitiveness concerns related to regulation of United States greenhouse gas emissions. (5)Investments in clean technology in developing countries will increase demand for clean energy products, open up new markets for United States companies, spur innovation, and lower costs. (6)Under Article 4 of the United Nations Framework Convention on Climate Change, developed country parties, including the United States, committed to take all practicable steps to promote, facilitate, and finance, as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to other parties, particularly developing country parties, to enable them to implement the provisions of the Convention. (7)Under the Bali Action Plan, developed country parties to the United Nations Framework Convention on Climate Change, including the United States, committed to enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation, including, inter alia, consideration of improved access to adequate, predictable, and sustainable financial resources and financial and technical support, and the provision of new and additional resources, including official and concessional funding for developing country parties. (8)Intellectual property rights are a key driver of investment and research and development in, and the global deployment of, clean technologies. (9)Innovative clean technologies, including U.S. and multilateral financing mechanisms for their deployment, are critical to mitigating global warming pollution, preventing catastrophic changes to the climate, and developing robust economies around the world. (10)Any weakening of intellectual property rights protection poses a substantial competitive risk to U.S. companies and the creation of high-quality U.S. jobs, inhibiting the creation of new green employment and the transformational shift to the Green Economy of the 21st Century. (11)Any U.S. funding directed toward assisting developing countries with regard to exporting clean technology should promote the robust compliance with and enforcement of existing international legal requirements for the protection of intellectual property rights as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C.3511(d)(15) and in applicable intellectual property provisions of bilateral trade agreements. (b)

Purposes

The purposes of this subtitle are— (1)to provide United States assistance and leverage private resources to encourage widespread implementation, in developing countries, of activities that reduce, sequester, or avoid greenhouse gas emissions; and (2)to provide such assistance in a manner that— (A)encourages such countries to adopt policies and measures, including sector-based and cross-sector policies and measures, that substantially reduce, sequester, or avoid greenhouse gas emissions; (B)promotes the successful negotiation of a global agreement to reduce greenhouse gas emissions under the United Nations Framework Convention on Climate Change; and (C)promotes robust compliance with and enforcement of existing international legal requirements for the protection of intellectual property rights, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)) and in applicable intellectual property provisions of bilateral trade agreements.

442.

Definitions

In this subtitle: (1)

Allowance

The term allowance means an emission allowance established under section 721 of the Clean Air Act. (2)

Appropriate congressional committees

The term appropriate congressional committees means— (A)the Committees on Energy and Commerce, Foreign Affairs, and Financial Services of the House of Representatives; and (B)the Committees on Environment and Public Works, Energy and Natural Resources, and Foreign Relations of the Senate. (3)

Convention

The term Convention means the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992, and entered into force on March 21, 1994. (4)

Developing country

Eligible country

The term eligible country means a developing country that is determined by the interagency group under section 444 to be eligible to receive assistance under this subtitle. (6)

Interagency group

The term interagency group means the group established by the President under section 443 to administer the program established under this subtitle. (7)

Least developed country

The term least developed country means a foreign country the United Nations has identified as among the least developed of developing countries. (8)

Qualifying activity

The term qualifying activity means an activity that meets the criteria in section 445. (9)

Qualifying entity

The term qualifying entity means a national, regional, or local government in, or a nongovernmental organization or private entity located or operating in, an eligible country.

443.

Governance

(a)

Oversight

The Secretary of State, or such other Federal agency head as the President may designate, in consultation with the interagency group established under subsection (b), shall oversee distributions of allowances allocated under section 782(o) of the Clean Air Act (as added by section 321 of this Act) for distribution pursuant to this subtitle. (b)

Interagency Group

The President shall establish an interagency group to administer the program established under this subtitle. The Members of the interagency group shall include— (1)the Secretary of State; (2)the Administrator of the Environmental Protection Agency; (3)the Secretary of Energy; (4)the Secretary of the Treasury; (5)the Secretary of Commerce; (6)the Administrator of the United States Agency for International Development; and (7)any other head of a Federal agency or executive branch appointee that the President may designate. (c)

Chairperson

The Secretary of State shall serve as the chairperson of the interagency group. (d)

Supplement Not Supplant

Allowances distributed pursuant to this subtitle shall be used to supplement, and not to supplant, any other Federal, State, or local resources available to carry out activities that are qualifying activities under this subtitle.

444.

Determination of eligible countries

(a)

In General

The interagency group shall determine a country to be an eligible country for the purposes of this subtitle if a country meets the following criteria: (1)The country is a developing country that— (A)has entered into an international agreement to which the United States is a party, under which such country agrees to take actions to produce measurable, reportable, and verifiable greenhouse gas emissions mitigation; or (B)is determined by the interagency group to have in force national policies and measures that are capable of producing measurable, reportable, and verifiable greenhouse gas emissions mitigation. (2)The country has developed a nationally appropriate mitigation strategy that seeks to achieve substantial reductions, sequestration, or avoidance of greenhouse gas emissions, relative to business-as-usual levels. (3)Subject to subsection (b)(1), such other criteria as the President determines will serve the purposes of this subtitle or other United States national security, foreign policy, environmental, or economic objectives including robust compliance with and enforcement of existing international legal requirements for the protection of intellectual property rights for clean technology, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)) and in applicable intellectual property provisions of bilateral trade agreements. (b)

Exceptions

(1)Subsection (a)(3) applies only to bilateral assistance under section 446(c)(4). (2)The eligibility criteria in this section do not apply in the case of least developed countries receiving assistance under section 445(7) for the purpose of building capacity to meet such eligibility criteria.

445.

Qualifying activities

Assistance under this subtitle may be provided only to qualifying entities for clean technology activities (including building relevant technical and institutional capacity) that contribute to substantial, measurable, reportable, and verifiable reductions, sequestration, or avoidance of greenhouse gas emissions including— (1)deployment of technologies to capture and sequester carbon dioxide emissions from electric generating units or large industrial sources (except that assistance under this subtitle for such deployment shall be limited to the cost of retrofitting existing facilities with such technologies or the incremental cost of purchasing and installing such technologies at new facilities); (2)deployment of renewable electricity generation from wind, solar, sustainably produced biomass, geothermal, marine, or hydrokinetic sources; (3)substantial increases in the efficiency of electricity transmission, distribution, and consumption; (4)deployment of low- or zero emissions technologies that are facing financial or other barriers to their widespread deployment which could be addressed through support under this subtitle in order to reduce, sequester, or avoid emission; (5)reduction in transportation sector emissions through increased transportation system and vehicle efficiency or use of transportation fuels that have lifecycle greenhouse gas emissions that are substantially lower than those attributable to fossil fuel-based alternatives; (6)reduction in black carbon emissions; or (7)capacity building activities, including— (A)developing and implementing methodologies and programs for measuring and quantifying greenhouse gas emissions and verifying emissions mitigation; (B)assessing, developing, and implementing technology and policy options for greenhouse gas emissions mitigation and avoidance of future emissions, including sector and cross-sector mitigation strategies; and (C)providing other forms of technical assistance to facilitate the qualification for, and receipt of, assistance under this Act.

446.

Assistance

(a)

In General

The Secretary of State, or such other Federal agency head as the President may designate, is authorized to provide assistance, through the distribution of allowances allocated for such purpose under section 782(o) of the Clean Air Act (as added by section 321 of this Act) for qualifying activities that take place in eligible countries, in accordance with the requirements of this subtitle. (b)

Definition

For the purposes of this section the term clean technology means any technology or service related to the qualifying activities identified in section 445. (c)

Distribution of Allowances

(1)

In general

The Secretary of State, or such other Federal agency head as the President may designate, after consultation with the interagency group, shall distribute allowances under this subtitle— (A)in the form of bilateral assistance in accordance with paragraph (4); (B)to multilateral funds or institutions pursuant to the Convention or an agreement negotiated under the Convention; or (C)through some combination of the mechanisms identified in subparagraphs (A) and (B). (2)

Global environment facility

For any allowances provided to the Global Environment Facility pursuant to paragraph (1)(B), the President shall designate the Secretary of the Treasury to distribute those allowances to the Global Environment Facility. (3)

Distribution through international fund or institution

If allowances are distributed to a multilateral fund or institution, as authorized in paragraph (1), the Secretary of State, or such other Federal agency head as the President may designate, shall seek to ensure the establishment and implementation of adequate mechanisms to— (A)apply and enforce the criteria for determination of eligible countries and qualifying activities under sections 444 and 445, respectively; (B)require public reporting describing the process and methodology for selecting the ultimate recipients of assistance and a description of each activity that received assistance, including the amount of obligations and expenditures for assistance; and (C)require that no funds be expended for the benefit of any qualifying activity where that activity or any activity relating to a qualifying activity under section 445 undermines the robust compliance with and enforcement of existing legal requirements for the protection of intellectual property rights for clean technology, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)). (4)

Bilateral assistance

(A)

In general

Bilateral assistance under paragraph (1) shall be carried out by the Administrator of the United States Agency for International Development, in consultation with the interagency group. (B)

Limitations

Not more than 15 percent of allowances made available to carry out bilateral assistance under this subtitle in any year shall be distributed to support activities in any single country. (C)

Selection criteria

Not later than 2 years after the date of enactment of this subtitle, the Administrator of the United States Agency for International Development, after consultation with the interagency group, shall develop and publish a set of criteria to be used in evaluating activities within eligible countries for bilateral assistance under this subtitle. (D)

Criteria requirements

The criteria under subparagraph (C) shall require that— (i)the activity is a qualifying activity; (ii)the activity will be conducted as part of an eligible country’s nationally appropriate mitigation strategy or as part of an eligible country’s actions towards providing a nationally appropriate mitigation strategy to reduce, sequester, or avoid emissions being implemented by the eligible country; (iii)the activity will not have adverse effects on human health, safety, or welfare, the environment, or natural resources; (iv)any technologies deployed through bilateral assistance under this subtitle will be properly implemented and maintained; (v)the activity will not cause any net loss of United States jobs or displacement of United States production; (vi)costs of the activity will be shared by the host country government, private sector parties, or a multinational development bank, except that this clause does not apply to least developed countries; (vii)the activity would not undermine the protection of intellectual property rights for clean technology, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)) and applicable intellectual property provisions of bilateral trade agreements; and (viii)the activity meets such other requirements as the interagency group determines appropriate to further the purposes of this subtitle. (E)

Criteria preferences

The criteria under subparagraph (C) shall give preference to activities that— (i)promise to achieve large-scale greenhouse gas reductions, sequestration, or avoidance at a national, sectoral or cross-sectoral level; (ii)have the potential to catalyze a shift within the host country towards widespread deployment of low- or zero-carbon energy technologies; (iii)build technical and institutional capacity and other activities that are unlikely to be attractive to private sector funding; or (iv)maximize opportunities to leverage other sources of assistance and catalyze private-sector investment. (d)

Monitoring, Evaluation, and Enforcement

The Secretary of State, or such other Federal agency head as the President may designate, in consultation with the interagency group, shall establish and implement a system to monitor and evaluate the performance of activities receiving assistance under this subtitle. The Secretary of State, or such other Federal agency head as the President may designate, shall have the authority to suspend or terminate assistance in whole or in part for an activity if it is determined that the activity is not operating in compliance with the approved proposal. (e)

Coordination With U.S. Foreign Assistance

Subject to the direction of the President, the Secretary of State shall, to the extent practicable, seek to align activities under this section with broader development, poverty alleviation, or natural resource management objectives and initiatives in the recipient country. (f)

Annual Reports

Not later than March 1, 2012, and annually thereafter, the President shall submit to the appropriate congressional committees a report on the assistance provided under this subtitle during the prior fiscal year. Such report shall include— (1)a description of the amount and value of allowances distributed during the prior fiscal year; (2)a description of each activity that received assistance during the prior fiscal year, and a description of the anticipated and actual outcomes; (3)an assessment of any adverse effects to human health, safety, or welfare, the environment, or natural resources as a result of activities supported under this subtitle; (4)an assessment of the success of the assistance provided under this subtitle to improving the technical and institutional capacity to implement substantial emissions reductions; (5)an estimate of the greenhouse gas emissions reductions, sequestration, or avoidance achieved by assistance provided under this subtitle during the prior fiscal year; and (6)an assessment whether any funds expended for the benefit of any qualifying activity undermined the protection of intellectual property rights for clean technology, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)) and applicable intellectual property provisions of bilateral trade agreements. (g)

Not eligible for offset credit

Activities that receive support under this subtitle shall not be issued offset credits for the greenhouse gas emissions reductions or avoidance, or greenhouse gas sequestration, produced by such activities.

Adapting to Climate Change

Domestic Adaptation

National Climate Change Adaptation Program

451.

Global change research and data management

(a)

Short title

This section may be cited as the

Global Change Research and Data Management Act of 2009

. (b)

Global change research

(1)

Purpose

The purpose of this subsection is to provide for the continuation and coordination of a comprehensive and integrated United States observation, research, and outreach program which will assist the Nation and the world to understand, assess, predict, and respond to the effects of human-induced and natural processes of global change. (2)

Definitions

For purposes of this subsection— (A)the term global change means human-induced or natural changes in the global environment (including alterations in climate, land productivity, oceans or other water resources, atmospheric chemistry, biodiversity, and ecological systems) that may alter the capacity of the Earth to sustain life; (B)the term global change research means study, monitoring, assessment, prediction, and information management activities to describe and understand— (i)the interactive physical, chemical, and biological processes that regulate the total Earth system; (ii)the unique environment that the Earth provides for life; (iii)changes that are occurring in the Earth system; and (iv)the manner in which such system, environment, and changes are influenced by human actions; (C)the term interagency committee means the interagency committee established under paragraph (3); (D)the term Plan means the National Global Change Research and Assessment Plan developed under paragraph (5); (E)the term Program means the United States Global Change Research Program established under paragraph (4); and (F)the term regional climate change means the natural or human-induced changes manifested in the local or regional environment (including alterations in weather patterns, land productivity, water resources, sea level rise, atmospheric chemistry, biodiversity, and ecological systems) that may alter the capacity of a specific region to support current or future social and economic activity or natural ecosystems. (3)

Interagency cooperation and coordination

(A)

Establishment

The President shall establish or designate an interagency committee to ensure cooperation and coordination of all Federal research activities pertaining to processes of global change for the purpose of increasing the overall effectiveness and productivity of Federal global change research efforts. The interagency committee shall include research and program representatives of agencies conducting global change research, agencies with authority over resources likely to be affected by global change, and agencies with authority to mitigate human-induced global change. (B)

Functions of the Interagency Committee

The interagency committee shall— (i)serve as the forum for developing the Plan and for overseeing its implementation; (ii)serve as the forum for developing the vulnerability assessment under paragraph (7); (iii)ensure cooperation among Federal agencies with respect to global change research activities; (iv)work with academic, State, industry, and other groups conducting global change research, to provide for periodic public and peer review of the Program; (v)cooperate with the Secretary of State in— (I)providing representation at international meetings and conferences on global change research in which the United States participates; and (II)coordinating the Federal activities of the United States with programs of other nations and with international global change research activities; (vi)work with appropriate Federal, State, regional, and local authorities to ensure that the Program is designed to produce information needed to develop policies to mitigate human-induced global change and to reduce the vulnerability of the United States and other regions to global change; (vii)facilitate ongoing dialog and information exchange with regional, State, and local governments and other user communities; and (viii)identify additional decisionmaking groups that may use information generated through the Program. (4)

United States Global Change Research Program

(A)

Establishment

The President shall establish an interagency United States Global Change Research Program to improve understanding of global change, to respond to the information needs of communities and decisionmakers, and to provide periodic assessments of the vulnerability of the United States and other regions to global and regional climate change. The Program shall be implemented in accordance with the Plan. (B)

Lead agency

The lead agency for the United States Global Change Research Program shall be the Office of Science and Technology Policy. (C)

Interagency program activities

The Director of the Office of Science and Technology Policy, in consultation with the interagency committee, shall identify activities included in the Plan that involve participation by 2 or more agencies in the Program, and that do not fall within the current fiscal year budget allocations of those participating agencies, to fulfill the requirements of this section. The Director of the Office of Science and Technology Policy shall allocate funds to the agencies to conduct the identified interagency activities. Such activities may include— (i)development of scenarios for climate, land-cover change, population growth, and socioeconomic development; (ii)calibration and testing of alternative regional and global climate models; (iii)identification of economic sectors and regional climatic zones; and (iv)convening regional workshops to facilitate information exchange and involvement of regional, State, and local decisionmakers, non-Federal experts, and other stakeholder groups in the activities of the Program. (D)

Workshops

The Director shall ensure that at least one workshop is held per year in each region identified by the Plan under paragraph (5)(B)(xi) to facilitate information exchange and outreach to regional, State, and local stakeholders as required by this section. (E)

Authorization of appropriations

There are authorized to be appropriated to the Office of Science and Technology Policy for carrying out this paragraph $10,000,000 for each of the fiscal years 2009 through 2014. (5)

National Global Change Research and Assessment Plan

(A)

In General

The President shall develop a National Global Change Research and Assessment Plan for implementation of the Program. The Plan shall contain recommendations for global change research and assessment. The President shall submit an outline for the development of the Plan to the Congress within 1 year after the date of enactment of this Act, and shall submit a completed Plan to the Congress within 3 years after the date of enactment of this Act. Revised Plans shall be submitted to the Congress at least once every 5 years thereafter. In the development of each Plan, the President shall conduct a formal assessment process under this paragraph to determine the needs of appropriate Federal, State, regional, and local authorities and other interested parties regarding the types of information needed by them in developing policies to mitigate human-induced global change and to reduce society’s vulnerability to global change and shall utilize these assessments, including the reviews by the National Academy of Sciences and the National Governors Association under subparagraphs (E) and (F), in developing the Plan. (B)

Contents of the Plan

The Plan shall— (i)establish, for the 10-year period beginning in the year the Plan is submitted, the goals and priorities for Federal global change research which most effectively advance scientific understanding of global change and provide information of use to Federal, State, regional, and local authorities in the development of policies relating to global change; (ii)describe specific activities, including efforts to determine user information needs, research activities, data collection, database development, and data analysis requirements, development of regional scenarios, assessment of model predictability, assessment of climate change impacts, participation in international research efforts, and information management, required to achieve such goals and priorities; (iii)identify relevant programs and activities of the Federal agencies that contribute to the Program directly and indirectly; (iv)set forth the role of each Federal agency in implementing the Plan; (v)consider and utilize, as appropriate, reports and studies conducted by Federal agencies, the National Research Council, or other entities; (vi)make recommendations for the coordination of the global change research and assessment activities of the United States with such activities of other nations and international organizations, including— (I)a description of the extent and nature of international cooperative activities; (II)bilateral and multilateral efforts to provide worldwide access to scientific data and information; and (III)improving participation by developing nations in international global change research and environmental data collection; (vii)detail budget requirements for Federal global change research and assessment activities to be conducted under the Plan; (viii)catalog the type of information identified by appropriate Federal, State, regional, and local decisionmakers needed to develop policies to reduce society’s vulnerability to global change and indicate how the planned research will meet these decisionmakers’ information needs; (ix)identify the observing systems currently employed in collecting data relevant to global and regional climate change research and prioritize additional observation systems that may be needed to ensure adequate data collection and monitoring of global change; (x)describe specific activities designed to facilitate outreach and data and information exchange with regional, State, and local governments and other user communities; and (xi)identify and describe regions of the United States that are likely to experience similar impacts of global change or are likely to share similar vulnerabilities to global change. (C)

Research Elements

The Plan shall include at a minimum the following research elements: (i)Global measurements, establishing worldwide to regional scale observations prioritized to understand global change and to meet the information needs of decisionmakers on all relevant spatial and time scales. (ii)Information on economic, demographic, and technological trends that contribute to changes in the Earth system and that influence society’s vulnerability to global and regional climate change. (iii)Development of indicators and baseline databases to document global change, including changes in species distribution and behavior, extent of glaciations, and changes in sea level. (iv)Studies of historical changes in the Earth system, using evidence from the geological and fossil record. (v)Assessments of predictability using quantitative models of the Earth system to simulate global and regional environmental processes and trends. (vi)Focused research initiatives to understand the nature of and interaction among physical, chemical, biological, land use, and social processes related to global and regional climate change. (vii)Focused research initiatives to determine and then meet the information needs of appropriate Federal, State, and regional decisionmakers. (D)

Information Management

The Plan shall incorporate, to the extent practicable, the recommendations relating to data acquisition, management, integration, and archiving made by the interagency climate and other global change data management working group established under subsection (c)(3). (E)

National Academy of Sciences Evaluation

The President shall enter into an agreement with the National Academy of Sciences under which the Academy shall— (i)evaluate the scientific content of the Plan; and (ii)recommend priorities for future global and regional climate change research and assessment. (F)

National Governors Association Evaluation

The President shall enter into an agreement with the National Governors Association Center for Best Practices under which that Center shall— (i)evaluate the utility to State, local, and regional decisionmakers of each Plan and of the anticipated and actual information outputs of the Program for development of State, local, and regional policies to reduce vulnerability to global change; and (ii)recommend priorities for future global and regional climate change research and assessment. (G)

Public Participation

In developing the Plan, the President shall consult with representatives of academic, State, industry, and environmental groups. Not later than 90 days before the President submits the Plan, or any revision thereof, to the Congress, a summary of the proposed Plan shall be published in the Federal Register for a public comment period of not less than 60 days. (6)

Budget coordination

(A)

In General

The President shall provide general guidance to each Federal agency participating in the Program with respect to the preparation of requests for appropriations for activities related to the Program. (B)

Consideration in President’s Budget

The President shall submit, at the time of his annual budget request to Congress, a description of those items in each agency’s annual budget which are elements of the Program. (7)

Vulnerability assessment

(A)

Requirement

Within 1 year after the date of enactment of this Act, and at least once every 5 years thereafter, the President shall submit to the Congress an assessment which— (i)integrates, evaluates, and interprets the findings of the Program and discusses the scientific uncertainties associated with such findings; (ii)analyzes current trends in global change, both human-induced and natural, and projects major trends for the subsequent 25 to 100 years; (iii)based on indicators and baselines developed under paragraph (5)(C)(iii), as well as other measurements, analyzes changes to the natural environment, land and water resources, and biological diversity in— (I)major geographic regions of the United States; and (II)other continents; (iv)analyzes the effects of global change, including the changes described in clause (iii), on food and fiber production, energy production and use, transportation, human health and welfare, water availability and coastal infrastructure, and human social and economic systems, including providing information about the differential impacts on specific geographic regions within the United States, on people of different income levels within those regions, and for rural and urban areas within those regions; and (v)summarizes the vulnerability of different geographic regions of the world to global change and analyzes the implications of global change for the United States, including international assistance, population displacement, food and resource availability, and national security. (B)

Use of related reports

To the extent appropriate, the assessment produced pursuant to this paragraph may coordinate with, consider, incorporate, or otherwise make use of related reports, assessments, or information produced by the United States Global Change Research Program, regional, State, and local entities, and international organizations, including the World Meteorological Organization and the Intergovernmental Panel on Climate Change. (8)

Policy assessment

Not later than 1 year after the date of enactment of this Act, and at least once every 4 years thereafter, the President shall enter into a joint agreement with the National Academy of Public Administration and the National Academy of Sciences under which the Academies shall— (A)document current policy options being implemented by Federal, State, and local governments to mitigate or adapt to the effects of global and regional climate change; (B)evaluate the realized and anticipated effectiveness of those current policy options in meeting mitigation and adaptation goals; (C)identify and evaluate a range of additional policy options and infrastructure for mitigating or adapting to the effects of global and regional climate change; (D)analyze the adoption rates of policies and technologies available to reduce the vulnerability of society to global change with an evaluation of the market and policy obstacles to their adoption in the United States; and (E)evaluate the distribution of economic costs and benefits of these policy options across different United States economic sectors. (9)

Annual report

Each year at the time of submission to the Congress of the President’s budget request, the President shall submit to the Congress a report on the activities conducted pursuant to this subsection, including— (A)a description of the activities of the Program during the past fiscal year; (B)a description of the activities planned in the next fiscal year toward achieving the goals of the Plan; and (C)a description of the groups or categories of State, local, and regional decisionmakers identified as potential users of the information generated through the Program and a description of the activities used to facilitate consultations with and outreach to these groups, coordinated through the work of the interagency committee. (10)

Relation to other authorities

The President shall— (A)ensure that relevant research, assessment, and outreach activities of the National Climate Program, established by the National Climate Program Act (15 U.S.C. 2901 et seq.), are considered in developing national global and regional climate change research and assessment efforts; and (B)facilitate ongoing dialog and information exchange with regional, State, and local governments and other user communities through programs authorized in the National Climate Program Act (15 U.S.C. 2901 et seq.). (11)

Repeal

The Global Change Research Act of 1990 (15 U.S.C. 2921 et seq.) is amended by striking titles I and III thereof. (12)

Global change research information

The President shall establish or designate a Global Change Research Information Exchange to make scientific research and other information produced through or utilized by the Program which would be useful in preventing, mitigating, or adapting to the effects of global change accessible through electronic means. (13)

Ice sheet study and report

(A)

Study

(i)

Requirement

The Director of the National Science Foundation and the Administrator of National Oceanic and Atmospheric Administration shall enter into an arrangement with the National Academy of Sciences to complete a study of the current status of ice sheet melt, as caused by climate change, with implications for global sea level rise. (ii)

Contents

The study shall take into consideration— (I)the past research completed related to ice sheet melt as reviewed by Working Group I of the Intergovernmental Panel on Climate Change; (II)additional research completed since the fall of 2005 that was not included in the Working Group I report due to time constraints; and (III)the need for an accurate assessment of changes in ice sheet spreading, changes in ice sheet flow, self-lubrication, the corresponding effect on ice sheets, and current modeling capabilities. (B)

Report

Not later than 18 months after the date of enactment of this Act, the National Academy of Sciences shall transmit to the Committee on Science and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on the key findings of the study conducted under subparagraph (A), along with recommendations for additional research related to ice sheet melt and corresponding sea level rise. (14)

Hurricane frequency and intensity study and report

(A)

Study

(i)

Requirement

The Administrator of the National Oceanic and Atmospheric Administration and the Director of the National Science Foundation shall enter into an arrangement with the National Academy of Sciences to complete a study of the current state of the science on the potential impacts of climate change on patterns of hurricane and typhoon development, including storm intensity, track, and frequency, and the implications for hurricane-prone and typhoon-prone coastal regions. (ii)

Contents

The study shall take into consideration— (I)the past research completed related to hurricane and typhoon development, track, and intensity as reviewed by Working Groups I and II of the Intergovernmental Panel on Climate Change; (II)additional research completed since the fall of 2005 that was not included in the Working Group I and II reports due to time constraints; (III)the need for accurate assessment of potential changes in hurricane and typhoon intensity, track, and frequency and of the current modeling and forecasting capabilities and the need for improvements in forecasting of these parameters; and (IV)the need for additional research and monitoring to improve forecasting of hurricanes and typhoons and to understand the relationship between climate change and hurricane and typhoon development. (B)

Report

Climate and other global change data management

(1)

Purposes

The purposes of this subsection are to establish climate and other global change data management and archiving as Federal agency missions, and to establish Federal policies for managing and archiving climate and other global change data. (2)

Definitions

For purposes of this subsection— (A)the term metadata means information describing the content, quality, condition, and other characteristics of climate and other global change data, compiled, to the maximum extent possible, consistent with the requirements of the Content Standard for Digital Geospatial Metadata (FGDC–STD–001–1998) issued by the Federal Geographic Data Committee, or any successor standard approved by the working group; and (B)the term working group means the interagency climate and other global change data management working group established under paragraph (3). (3)

Interagency climate and other global change data management working group

(A)

Establishment

The President shall establish or designate an interagency climate and other global change data management working group to make recommendations for coordinating Federal climate and other global change data management and archiving activities. (B)

Membership

The working group shall include the Administrator of the National Aeronautics and Space Administration, the Administrator of the National Oceanic and Atmospheric Administration, the Secretary of Energy, the Secretary of Defense, the Director of the National Science Foundation, the Director of the United States Geological Survey, the Archivist of the United States, the Administrator of the Environmental Protection Agency, the Secretary of the Smithsonian Institution, or their designees, and representatives of any other Federal agencies the President considers appropriate. (C)

Reports

Not later than 1 year after the date of enactment of this Act, the working group shall transmit a report to the Congress containing the elements described in subparagraph (D). Not later than 4 years after the initial report under this subparagraph, and at least once every 4 years thereafter, the working group shall transmit reports updating the previous report. In preparing reports under this subparagraph, the working group shall consult with expected users of the data collected and archived by the Program. (D)

Contents

The reports and updates required under subparagraph (C) shall— (i)include recommendations for the establishment, maintenance, and accessibility of a catalog identifying all available climate and other global change data sets; (ii)identify climate and other global change data collections in danger of being lost and recommend actions to prevent such loss; (iii)identify gaps in climate and other global change data and recommend actions to fill those gaps; (iv)identify effective and compatible procedures for climate and other global change data collection, management, and retention and make recommendations for ensuring their use by Federal agencies and other appropriate entities; (v)develop and propose a coordinated strategy for funding and allocating responsibilities among Federal agencies for climate and other global change data collection, management, and retention; (vi)make recommendations for ensuring that particular attention is paid to the collection, management, and archiving of metadata; (vii)make recommendations for ensuring a unified and coordinated Federal capital investment strategy with respect to climate and other global change data collection, management, and archiving; (viii)evaluate the data record from each observing system and make recommendations to ensure that delivered data are free from time-dependent biases and random errors before they are transferred to long-term archives; and (ix)evaluate optimal design of observation system components to ensure a cost-effective, adequate set of observations detecting and tracking global change.

452.

National Climate Service

(a)

Short title

This section may be cited as the

National Climate Service Act of 2009

. (b)

Purpose

The purpose of this section is to establish a National Climate Service and to define the activities to be undertaken within the National Oceanic and Atmospheric Administration to— (1)advance understanding of climate variability and change at the global, national, regional, and local levels; (2)provide forecasts, warnings, and other information to the public on variability and change in weather and climate that affect geographic areas, natural resources, infrastructure, economic sectors, and communities; and (3)support development of adaptation and response plans by Federal agencies, State, local, and tribal governments, the private sector, and the public. (c)

Definitions

In this section: (1)

Advisory Committee

The term Advisory Committee means the Climate Service Advisory Committee established under subsection (f). (2)

Director

The term Director means the Director of the Climate Service Office. (3)

Representative

The term representative means an individual who is not a full-time or part-time employee of the Federal Government and who is appointed to an advisory committee to represent the views of an entity or entities outside the Federal Government. (4)

Special Government Employee

The term Special Government Employee has the same meaning as in section 202(a) of title 18, United States Code. (5)

Under secretary

The term Under Secretary means the Under Secretary of Commerce for Oceans and Atmosphere. (d)

Interagency development of a National Climate Service

(1)

In general

The President shall— (A)initiate a process within 30 days after the date of enactment of this Act through the Committee on Environment and Natural Resources of the National Science and Technology Council and led by the Director of the Office of Science and Technology Policy, to evaluate alternative structures to support a collaborative, interagency research and operational program that will achieve the goal of meeting the needs of decisionmakers in— (i)Federal agencies; (ii)State, local, and tribal governments; (iii)regional entities and other stakeholders and users,

for reliable, timely, and relevant information related to climate variability and change;

(B)within 1 year after the date of enactment of this Act complete pursuant to paragraph (2) a survey of the needs of current and future users of information related to climate variability and change; (C)within 2 years after the date of enactment of this Act report to Congress under paragraph (3) the results of the evaluation described in subparagraph (A) and provide a plan to establish a collaborative, interagency research and operational program to deliver information related to climate variability and change to all users; and (D)within 3 years after the date of enactment of this Act, and after delivery of the report to Congress required under subparagraph (C), establish a National Climate Service, based upon the information obtained through the process described in subparagraph (A), that meets the goal described in subparagraph (A). (2)

Survey of need for climate services

(A)

In general

The Director of the Office of Science and Technology Policy, through the Committee on Environment and Natural Resources, shall provide a report to Congress within 1 year after the date of enactment of this Act that compiles information on the current climate products being delivered by each Federal agency and its partner organizations to users and stakeholders, and on the needs of users and stakeholders for new climate products and services. (B)

Contents of the report

The report shall identify— (i)specific user groups and stakeholders that currently are served by each Federal agency and its partner organizations; (ii)the type of climate products and services currently delivered to specific users groups and stakeholders, and the specific Federal agency office, program, or partner organization that delivers these products and services; (iii)potential user groups and stakeholders that may be served by expanding climate products and services; (iv)specific needs for new climate products and services to be delivered by each Federal agency and its partner organizations identified by user groups and stakeholders; (v)a characterization of the different user and stakeholder groups that were surveyed by each Federal agency; and (vi)a list of non-Federal entities that deliver climate products and services. (3)

Report to congress

(A)

In general

Within 2 years after the date of enactment of this Act, the Director of the Office of Science and Technology Policy shall report to the President and the Congress on a proposal, prepared through the Committee on Environment and Natural Resources, to establish and operate a National Climate Service. The report shall include— (i)a description of the alternative structures considered; (ii)a description of the structure proposed for a National Climate Service, including a discussion of the benefits of this structure as compared to the alternatives considered; (iii)designation of a specific office or agency that will lead the National Climate Service and that shall be accountable for the daily operation of the National Climate Service; (iv)a description of the role and capability of each Federal agency, including a list of all entities within each agency or supported with agency funds that currently provide or may provide climate products or services; (v)a description of the mechanisms that will be used to ensure ongoing communication and information exchange among the Federal agencies and between Federal agencies and their respective user and stakeholder communities including— (I)mechanisms to facilitate ongoing dialogue with non-Federal organizations providing climate services; (II)mechanisms to facilitate ongoing dialogue with regional, State, local, and tribal governments, the private sector, and other users and stakeholders on the development and delivery of climate services; (III)mechanisms to collect information, observations, and other data relevant for improving climate products and services; and (IV)designation of points of contact for each Federal agency with responsibilities to deliver climate services; (vi)a detailed description of the processes and procedures that will be necessary to coordinate observations and information collection by different Federal agencies to ensure the compatibility of information and to facilitate data and information exchange among Federal agencies and with non-Federal entities, and a designation of the agency or agencies that would be responsible for ongoing oversight of these functions; (vii)a detailed description of how research findings and climate impact assessments produced through the United States Global Change Research Program and the other activities undertaken within the United States Global Change Research Program would be integrated with the activities undertaken by a National Climate Service; (viii)a list of the existing observation and monitoring systems or programs operated by each Federal agency that provide data, observations, and other information that may be used to develop or improve climate products and services; (ix)a description of new infrastructure, equipment, personnel or other resources, by agency, that may be needed to achieve the goals of a National Climate Service, and the time period over which these new resources will be allocated; (x)an identification of the activities that may be undertaken in cooperation with international partners; (xi)the mechanisms established to provide quality assurance and quality control of climate service products and services, and the agency or agencies designated to conduct and oversee these mechanisms; (xii)an identification of non-Federal entities that provide climate products and services, and a description of the relationship envisioned between a National Climate Service and the non-Federal entities providing climate services; and (xiii)responses to the comments received during the public comment period. (B)

Draft report

Prior to the submission of the final report, the Director of the Office of Science and Technology Policy shall publish a draft report in the Federal Register with a comment period of at least 30 days. (C)

Consultation

In developing the report, the Director of the Office of Science and Technology Policy shall consult with State, local, and tribal governments, regional entities, the private sector, and other users and stakeholder groups, and Congress. (4)

Annual report

The Director of the Office of Science and Technology Policy shall transmit to the Congress at the time of the President’s fiscal year 2013 budget request, and annually thereafter, a report on the annual anticipated cost of carrying out the research and operational activities of the National Climate Service, with a description of the budget for each Federal agency’s activities. (e)

Climate Service Program

(1)

In general

The Under Secretary, building upon the resources of the National Weather Service and other weather and climate programs in the National Oceanic and Atmospheric Administration, shall establish a Climate Service Program. (2)

Climate service office

The Under Secretary shall establish a Climate Service Office and shall appoint a Director of the Office to collaborate with the leadership of the National Oceanic and Atmospheric Administration line offices to perform the duties assigned to the Office. The Climate Service Office shall— (A)coordinate programs at the National Oceanic and Atmospheric Administration to ensure the timely production and distribution of data and information on global, national, regional, and local climate variability and change over all time scales relevant for planning and response, including intraseasonal, interannual, decadal, and multidecadal time periods; (B)ensure exchange of information between the research and operational offices at the National Oceanic and Atmospheric Administration to identify research needs for improving climate products and services and ensure the timely and orderly transition of research findings, improved technologies, models, and other tools to the National Oceanic and Atmospheric Administration’s operations; (C)ensure operational quality control of all Climate Service Program products including a transparent and open accounting of all the assumptions built into the global, national, regional, and local weather and climate computer models upon which such products are based; (D)ensure a continuous level of high-quality data collected through a national observation and monitoring infrastructure, including at a minimum performing regular maintenance and verification, and periodic upgrades; (E)serve as liaison to and exchange information with other Federal agencies that provide climate services in order to— (i)ensure the timely dissemination of data and information on weather and climate produced by the National Oceanic and Atmospheric Administration to other Federal agencies; (ii)ensure that data and information collected by other Federal agencies relevant to improving climate services are made available to the National Oceanic and Atmospheric Administration; (iii)facilitate the development and delivery of climate products and services to relevant stakeholders; and (iv)obtain information from other Federal agencies to improve the development and dissemination by the National Oceanic and Atmospheric Administration of information on weather and climate to other Federal agencies for the development of climate service products by those agencies; (F)ensure cooperation and collaboration, as appropriate, of the Climate Service Program with State, local, and tribal governments, regional entities, academic and nonprofit research organizations, and private sector entities, including weather information providers and other stakeholders; and (G)ensure exchange of data, information, and research with the United States Global Change Research Program to support the development of assessments required under the Global Change Research Act of 1990 (15 U.S.C. 2921 et seq.). (3)

Climate Service Program

(A)

In general

The Under Secretary shall operate the Climate Service Program through a national center, the Climate Service Office, and a network of regional and local facilities, including the established regional and local offices of the National Weather Service, 6 Regional Climate Centers, the offices of the Regional Integrated Sciences and Assessments program, the National Integrated Drought Information System, and any other National Oceanic and Atmospheric Administration or National Oceanic and Atmospheric Administration-supported regional and local entities, as appropriate. (B)

Regional climate centers program

The Under Secretary shall maintain a network of 6 Regional Climate Centers to work cooperatively with the State Climate Offices to— (i)collect and exchange data and information needed to characterize, understand, and forecast regional and local weather and climate; (ii)facilitate collection and exchange of data and information between the States and Federal Government on weather and climate in conjunction with the National Climatic Data Center; (iii)support research and observations; (iv)obtain input on stakeholder needs for weather and climate information and products; and (v)support State and local adaptation and response planning. (C)

Regional Integrated Sciences and Assessments Program

The Under Secretary shall maintain a network of offices as part of the Regional Integrated Sciences and Assessments Program. Such offices shall engage in cooperative research, development, and demonstration projects with the academic community, State Climate Offices, Regional Climate Offices, and other users and stakeholders on climate products, technologies, models, and other tools to improve understanding and forecasting of regional and local climate variability and change and the effects on economic activities, natural resources, and water availability, and other effects on communities, to facilitate development of regional and local adaptation plans to respond to climate variability and change, and any other needed research identified by the Under Secretary or the Advisory Committee. (D)

Other offices

In carrying out the functions of the Climate Service Program, the Under Secretary shall utilize the assets and expertise of— (i)the National Weather Service to— (I)deliver operational weather and climate forecasts, warnings, products, and information through the Climate Service Programs Division, Local Weather Forecast Offices, Weather Service Offices, and River Forecast Centers; and (II)develop climate forecast models and tools through the National Centers for Environmental Prediction; (ii)the National Environmental Satellite, Data, and Information Service to provide data services and support for product development and operations through the National Climatic Data Center and the Regional Climate Centers; (iii)the Office of Oceanic and Atmospheric Research to— (I)provide research on product development; (II)improve weather and climate forecast models; (III)provide new technologies and methods of observation; and (IV)oversee the National Oceanic and Atmospheric Administration supported research performed by the Joint Cooperative Institutes, universities, and other non-Federal entities; (iv)the National Integrated Drought Information System to— (I)provide an effective drought warning system; (II)coordinate and integrate Federal research on droughts; (III)collect and integrate information on key indicators of drought; (IV)make usable, reliable, and timely forecasts and assessments of drought, including assessments of the severity of drought conditions and effects; (V)communicate drought forecasts, conditions, and effects to Federal, State, tribal, and local governments, regional entities, the private sector, and the public; and (VI)coordinate with State Climate Offices and RISA teams to assess management practices and technologies, and the effects of both, used for drought mitigation at the local, State, and regional levels; and (v)any other National Oceanic and Atmospheric Administration offices or programs, as appropriate. (E)

Mission

The Under Secretary shall ensure that the core functions and missions of the National Weather Service, the National Integrated Drought Information System, and any other programs within the National Oceanic and Atmospheric Administration are not diminished or neglected by the establishment of the Climate Service Program or the duties imposed on such offices or programs under this paragraph. (F)

Program elements

The Climate Service Program shall— (i)conduct analyses of and studies relating to the effects of weather and climate on communities, including effects on agricultural production, natural resources, energy supply and demand, recreation, and other sectors of the economy; (ii)carry out observations, data collection, and monitoring of atmospheric and oceanic conditions on a statewide, regional, national, and global basis; (iii)provide information and technical support for Federal, regional, State, tribal, and local government efforts to assess and respond to climate variability and change; (iv)develop systems for the management and dissemination of data, information, and assessments, including mechanisms for consultation with current and potential users and other stakeholders; (v)conduct research to improve forecasting, characterization, and understanding of weather and climate variability and change and its effects on communities, including its effects on agricultural production, natural resources, energy supply and demand, recreation, and other sectors of the economy; and (vi)develop tools to facilitate the use of climate information by local and regional stakeholders. (f)

Climate Service Advisory Committee

(1)

In general

The Under Secretary shall establish a Climate Service Advisory Committee to provide advice on— (A)climate service product development; (B)delivery of services to decisionmakers and other stakeholders; (C)infrastructure to support observations and monitoring; (D)computation and modeling needs, research needs, and other resources needed to develop, distribute, and ensure the utility of climate data, products, and services; and (E)any other topics as may be requested by the Under Secretary or Congress. (2)

Members

(A)

In general

The Advisory Committee shall be composed of at least 25 members appointed by the Under Secretary. Each member of the Advisory Committee shall be qualified either— (i)by education, training, and experience to evaluate scientific and technical information on matters referred to the Advisory Committee under this subsection; or (ii)to evaluate the utility and need for climate products by planners, decisionmakers, the private sector, and the public. (B)

Members shall be appointed for 3-year terms, renewable once, and shall serve at the discretion of the Under Secretary. Vacancy appointments shall be for the remainder of the unexpired term of the vacancy, and an individual so appointed may subsequently be appointed for 2 full 3-year terms if the remainder of the unexpired term is less than 1 year. (C)

Chairperson

The Under Secretary shall designate a chairperson from among the members of the Advisory Committee. The designated Chairperson shall alternate between a member who is appointed as a representative and a member who is appointed as a Special Government Employee. (D)

Subcommittees

(i)

Establishment

The Advisory Committee shall establish— (I)a Subcommittee on Science and Technology to advise the Climate Service Program on needed research, technology development, and additional observations, and on any other scientific or technical issues as appropriate; and (II)a Subcommittee on Product Development and Delivery composed primarily of representatives of the community of potential users of the products developed and delivered by the Climate Service Program.

The Advisory Committee may establish such additional subcommittees of its members as may be necessary.

(ii)

Appointment

(I)

Full Advisory Committee

At least 50 percent of the members of the Advisory Committee shall be appointed as Special Government Employees. (II)

Subcommittees

At least 75 percent of the members of the Subcommittee on Science and Technology shall be appointed as Special Government Employees. Not more than 25 percent of the members of the Subcommittee on Product Development and Delivery shall be appointed as Special Government Employees. (3)

Administrative provisions

(A)

Reporting

The Advisory Committee shall report to the Under Secretary and the appropriate requesting party. (B)

Administrative support

The Under Secretary shall provide administrative support to the Advisory Committee. (C)

Meetings

The Advisory Committee shall meet at least twice each year and at other times at the call of the Under Secretary or the Chairperson. (D)

Compensation and expenses

A member of the Advisory Committee shall not be compensated for service on the Advisory Committee, but may be allowed travel expenses, including per diem in lieu of subsistence, in accordance with subchapter I of chapter 57 of title 5, United States Code. (4)

Expiration

Section 14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Climate Service Advisory Committee. (g)

Repeal

The National Climate Program Act (15 U.S.C. 2901 et seq.) is repealed. (h)

Establishment of regional integrated sciences and assessments teams

(1)

In general

In maintaining the network of Regional Integrated Sciences and Assessments (RISA) Teams under subsection (e)(3)(C), the Under Secretary shall utilize a competitive, peer-reviewed selection process. Teams shall conduct applied regional climate research and projects to address the needs of local and regional decisionmakers for information and tools to develop adaptation and response plans to climate variability and change. The awards shall be administered through a cooperative agreement between the National Oceanic and Atmospheric Administration and the RISA Team. Each award shall be for a period of 5 years. (2)

RISA teams

Teams shall be composed of multi-institutional partnerships whose individual members may include— (A)institutions of higher education, as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)); (B)minority serving institutions, as defined in section 371(a) of the Higher Education Act of 1965; and (C)nongovernmental research organizations, Federal agencies, State and local agencies, tribal organizations, and for-profit entities. (3)

Considerations

In making awards under this subsection, the Under Secretary shall consider— (A)the overall geographic distribution of RISA Teams and existing gaps in applied research to support local and regional decisionmakers; (B)the team’s ability to contribute to the National Oceanic and Atmospheric Administration’s efforts to deliver climate services in the region; and (C)the team’s proposal to integrate social and physical sciences research to address the effects of climate variability and change on the ecology, economy, infrastructure, and communities in the region. (i)

Survey of need for climate services

(1)

In general

The Under Secretary shall provide a report to Congress within 9 months after the date of enactment of this Act that compiles information on the current climate products being delivered by the National Oceanic and Atmospheric Administration and its partner organizations to users and stakeholders and on the needs of users and stakeholders for new climate products and services. (2)

Contents of report

The report shall identify— (A)specific user groups and stakeholders that currently are served by the National Oceanic and Atmospheric Administration and its partner organizations; (B)the type of climate products and services currently delivered to specific user groups and stakeholders and the specific National Oceanic and Atmospheric Administration office or partner organization that delivers these products and services; (C)potential user groups and stakeholders that may be served by expanding climate products and services; and (D)specific needs for new climate products and services identified by user groups and stakeholders. (3)

Consultation

The Under Secretary shall consult with the Climate Service Advisory Committee in the preparation of this report. (j)

Implementation plan

(1)

In general

The Under Secretary shall prepare a plan for creating a Climate Service Program in the National Oceanic and Atmospheric Administration and delivering climate products and services to the National Oceanic and Atmospheric Administration users and stakeholders. The plan shall be submitted to the President and the Congress within 1 year after the date of enactment of this Act. (2)

Draft plan

Prior to the submission of the final plan, the Under Secretary shall publish a draft plan in the Federal Register with a public comment period of at least 30 days. (3)

Contents

The plan shall— (A)identify the current gaps in climate services and outline the process and resources the National Oceanic and Atmospheric Administration will use to fill these gaps; (B)describe the roles of the National Oceanic and Atmospheric Administration line offices and the National Oceanic and Atmospheric Administration partner organizations in the development and delivery of climate products and services; (C)describe the development and implementation of quality assurance and control mechanisms for climate products and services delivered by the National Oceanic and Atmospheric Administration and its partner organizations; (D)identify the mechanisms and opportunities for determining user needs and engaging in a two-way dialogue with users that will inform climate product and service development and delivery of authoritative, timely, and useful information on climate variability and change and the effects on local, State, regional, national, and global scales; (E)identify new responsibilities or tasks to be undertaken by existing National Oceanic and Atmospheric Administration line offices and partner organizations; (F)identify new infrastructure, equipment, personnel, or other resources needed to implement the proposed plan; and (G)include responses to the comments received during the public comment period. (4)

Continuity of service

During the development of the implementation plan, the public comment period, and final plan, the National Oceanic and Atmospheric Administration shall continue to provide climate services to the user community. (5)

Consultation

In developing the plan, the Under Secretary shall consult with user groups and stakeholders, State Climate Offices, Regional Climate Centers, other Federal agencies, the Climate Service Advisory Committee, and Congress. (6)

Coordination with interagency development of a national climate service

In preparing the plan required under this subsection, the Under Secretary shall consult with the Director of the Office of Science and Technology Policy to ensure that the program developed by the Agency will serve the needs of a National Climate Service. (k)

Summer institutes program at the Regional Climate Centers

(1)

Definitions

In this subsection: (A)

Summer institute

The term summer institute means an institute, operated during the summer, that— (i)is hosted by a Regional Climate Center or an eligible partner; (ii)is operated for a period of not less than 2 weeks; and (iii)provides direct interaction of middle school and high school teacher and undergraduate student participants with personnel of the Regional Climate Centers or eligible partners who have scientific expertise in weather and climate. (B)

Eligible partner

The term eligible partner means— (i)the science, engineering, or mathematics department at an institution of higher education; or (ii)a nonprofit entity with expertise in providing educational enrichment experiences for students. (2)

Summer Institutes Program Authorized

(A)

In general

The Under Secretary shall establish a summer institutes program, to be conducted in cooperation with the Regional Climate Centers, which may include an eligible partner. The purpose of the program is to provide training and professional enrichment by providing opportunities for interaction between participants and climate scientists in a research and operational setting to— (i)enable middle school and high school teachers to integrate weather and climate sciences into their curricula: and (ii)encourage undergraduate students to pursue further study and careers in weather and climate sciences. (B)

Required activities

Funds authorized under this subsection shall be used for— (i)providing educational opportunities for middle school and high school teachers and undergraduate students not achievable inside the classroom; (ii)exposing such teachers and students to researchers, scientists, or engineers who can demonstrate their daily activities to the teachers and students; (iii)exposing teachers and students to scientific methods in a research discovery setting; and (iv)assisting teachers with curriculum development in the areas of weather and climate science. (3)

Priority

The Under Secretary shall ensure that each summer institute program authorized under paragraph (2) includes students from groups underrepresented in the fields of science, technology, engineering, and mathematics teaching, including women and members of minority groups. (4)

Report to Congress

The Under Secretary shall submit to Congress a biennial report on the activities conducted under this subsection, including the number of participants and the new curricula developed in atmospheric and climate sciences. (l)

Clearinghouse of Federal Climate Service products and links to Federal agencies providing climate services

(1)

In general

The Under Secretary shall establish and maintain a clearinghouse to inform State, local, and tribal governments and the public about the information and services available to— (A)assess the impacts of climate variability and change at different geographic scales; (B)characterize and forecast climate variability and change for specific regions, resources, and economic sectors; and (C)develop and implement adaptation strategies to reduce vulnerabilities to climate variability and change. (2)

Other resources

The clearinghouse shall include hyperlinks to Internet sites that describe the activities, information, and resources of— (A)the Federal Government; (B)State and local governments; (C)the private sector; (D)nongovernmental and nonprofit entities and organizations; and (E)international organizations. (m)

Financial burden

Nothing in this section shall be construed as authorizing the National Climate Service or the Climate Service Program at the National Oceanic and Atmospheric Administration to require State, tribal, or local governments to develop adaptation or response plans or to take any other action in response to variations in climate that may result in an increased financial burden to such governments.

453.

State programs to build resilience to climate change impacts

(a)

Definitions

For purposes of this section: (1)

Allowance

The term allowance means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act). (2)

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). (3)

Vintage year

The term vintage year has the meaning given that term under section 700 of the Clean Air Act (as added by section 312 of this Act). (b)

Regulations; coordination

Not later than 2 years after the date of enactment of this Act, the Administrator, or such Federal agency head or heads as the President may designate, shall promulgate regulations to implement the requirements of this section. If the President designates more than 1 Federal agency to implement this section, the President shall require such agencies to establish a memorandum of understanding providing for coordination of rulemaking and other implementing activities, in accordance with the requirements of this section. (c)

Distribution of allowances

(1)

In general

Not later than September 30 of each of calendar years 2011 through 2049, the Administrator shall distribute, in accordance with this section, allowances allocated for the following vintage year pursuant to section 782(l) of the Clean Air Act (as added by section 321 of this Act). The Administrator shall reserve 1 percent of such allowances for distribution to Indian tribes in accordance with subsection (d). The remainder of such allowances shall be distributed ratably among the States based on the product of— (A)each State’s population; and (B)each State’s allocation factor as determined under paragraph (2). (2)

State allocation factors

(A)

In general

Except as provided in subparagraph (B), the allocation factor for a State shall be the quotient of— (i)the per capita income of all individuals in the United States, divided by (ii)the per capita income of all individuals in such State. (B)

Limitation

If the allocation factor for a State as calculated under subparagraph (A) would exceed 1.2, then the allocation factor for such State shall be 1.2. If the allocation factor for a State as calculated under subparagraph (A) would be less than 0.8, then the allocation factor for such State shall be 0.8. (C)

Per capita income

For purposes of this paragraph, per capita income shall be— (i)determined at 2-year intervals; and (ii)subject to subparagraph (D), equal to the average of the annual per capita incomes for the most recent period of 3 consecutive years for which satisfactory data are available from the Department of Commerce at the time such determination is made. (D)

Revenue directly resulting from a Presidentially declared major disaster

For purposes of this paragraph, per capita income from one or more of the following sources shall be reduced or excluded if the Secretary of Commerce (in consultation with the Administrator and the secretaries or administrators of the departments or agencies involved) determines that the income accrues to persons as the result of a Major Disaster (as declared by the President of the United States) and if the Secretary finds that the inclusion of one or more of these income sources, in whole or in part, results in a transitory, rather than a sustainable, increase in a State’s per capita income level relative to the national average: (i)Property and casualty insurance (including homeowners and renters insurance). (ii)The National Flood Insurance Program of the Federal Emergency Management Agency. (iii)The Individual and Family Grants Program of the Federal Emergency Management Agency. (iv)The Disaster Housing Program of the Federal Emergency Management Agency. (v)The Community Development Block Grant Program of the Department of Housing and Urban Development. (vi)The Disaster Unemployment Assistance Program of the Department of Labor. (vii)Any other source determined appropriate by the Administrator. (d)

Distribution to Indian tribes

The Administrator, or such Federal agency head or heads as the President may designate, shall promulgate regulations establishing a program to distribute allowances on a competitive basis to Indian tribes, in accordance with the requirements of this section. Such allowances shall be used exclusively in accordance with the requirements of subsection (e). Beginning with vintage year 2015, Indian tribes with a tribal adaptation plan approved pursuant to subsection (f) shall be given priority in selection of programs or projects for receipt of emission allowances under this subsection. (e)

Use of allowances

(1)

In general

States and Indian tribes shall use allowances distributed under this section exclusively for the implementation of projects, programs, or measures to build resilience to the impacts of climate change, including— (A)extreme weather events such as flooding and tropical cyclones; (B)more frequent heavy precipitation events; (C)water scarcity and adverse impacts on water quality; (D)stronger and longer heat waves; (E)more frequent and severe droughts; (F)rises in sea level; (G)ecosystem disruption; (H)increased air pollution; and (I)effects on public health. (2)

Priority in projects to reduce flood events

When implementing any project, program, or measure supported under this section and designed to reduce flood events, a State or Indian tribe should consider prioritizing projects that seek to— (A)mitigate the destructive impacts of climate-related increases in the duration, frequency, or magnitude of rainfall or runoff, including snowmelt runoff, as well as hurricanes; (B)improve flood protection for densely populated urban areas; and (C)mitigate the destructive impact of ocean-related climate change effects, including effects on bays, estuaries, populated barrier islands and other ocean-related features, through a variety of means and measures, including the construction of jetties, levies, and other coastal structures in densely populated coastal areas impacted by climate change. (3)

State and Tribal adaptation plans

Upon approval of a State or tribal climate adaptation plan under subsection (f), allowances received by a State under this section shall be used in accordance with such plan. (4)

Supplement, not supplant

It is the intent of the Congress that allowances distributed to carry out this section should be used to supplement, and not replace, existing sources of funding used to build resilience to the impacts of climate change identified in paragraph (1). (5)

Research on hurricanes

The authorized uses of allowances under this section shall include establishment of projects or programs to conduct research and monitoring on the effect of ongoing climate change on the frequency and intensity of hurricanes. (f)

State and Tribal climate adaptation plans

(1)

In general

The regulations promulgated pursuant to subsection (b) shall include requirements for submission and approval of State or tribal climate adaptation plans under this section. Beginning with vintage year 2015, distribution of allowances to a State pursuant to this section shall be contingent on approval of a State climate adaptation plan for such State that meets the requirements of such regulations. Requirements for tribal climate adaptation plans may vary from those of State adaptation plans to the extent necessary to account for the special circumstances of Indian tribes. (2)

Requirements

Regulations promulgated under this section shall require, at minimum, that State and tribal climate adaptation plans— (A)assess and prioritize the State’s or Indian tribe’s vulnerability to a broad range of impacts of climate change, based on the best available science; (B)include an assessment of potential for carbon reduction through changes to land management policies (including enhancement or protection of forest carbon sinks); (C)identify and prioritize specific cost-effective projects, programs, and measures to build resilience to current and predicted impacts of climate change; (D)ensure that the State or Indian tribe fully considers and undertakes, to the maximum extent practicable, initiatives that— (i)protect or enhance natural ecosystem functions, including protection, maintenance, or restoration of natural infrastructure such as wetlands, reefs, and barrier islands to buffer communities from floodwaters or storms, watershed protection to maintain water quality and groundwater recharge, or floodplain restoration to improve natural flood control capacity; or (ii)use non-structural approaches including practices that utilize, enhance, or mimic the natural hydrologic cycle processes of infiltration, evapotranspiration, and reuse; (E)be revised and resubmitted for approval not less frequently than every 5 years; and (F)be consistent with Federal conservation and environmental laws and, to the maximum extent practicable, avoid environmental degradation. (3)

Coordination with prior planning efforts

In implementing this subsection, the Administrator, or such Federal agency head or heads as the President may designate, shall— (A)draw upon lessons learned and best practices from preexisting State and tribal climate adaptation planning efforts; (B)seek to avoid duplication of such efforts; and (C)ensure that the plans developed under this section reflect and are fully consistent with State natural resources adaptation plans developed under section 479 of this Act. (g)

Reporting

Each State or Indian tribe receiving allowances under this section shall submit to the Administrator, or such Federal agency head or heads as the President may designate, within 12 months after each receipt of such allowances and once every 2 years thereafter until the value of any allowances received under this section has been fully expended, a report that— (1)provides a full accounting for the State’s or Indian tribe’s use of allowances distributed under this section, including a description of the projects, programs, or measures supported using such allowances; (2)includes a report prepared by an independent third party, in accordance with such regulations as are promulgated by the Administrator or such other Federal agency head or heads as the President may designate, evaluating the performance of the projects, programs, or measures supported under this section; and (3)identifies any use by the State or Indian tribe of allowances distributed under this section for the reduction of flood and storm damage and the effects of climate change on water and flood protection infrastructure. (h)

Enforcement

If the Administrator, or such Federal agency head or heads as the President may designate, determines that a State or Indian tribe is not in compliance with this section, the Administrator or such other agency head may withhold a quantity of the allowances equal to up to twice the quantity of allowances that the State or Indian tribe failed to use in accordance with the requirements of this section, that such State or Indian tribe would otherwise be eligible to receive under this section in 1 or more later years. Allowances withheld pursuant to this subsection shall be distributed among the remaining States or Indian tribes ratably in accordance with the formula in subsection (c) in the case of allowances withheld from a State, or in accordance with subsection (d) in the case of allowances withheld from an Indian tribe.

Public Health and Climate Change

461.

Sense of Congress on public health and climate change

It is the sense of the Congress that the Federal Government, in cooperation with international, State, tribal, and local governments, concerned public and private organizations, and citizens, should use all practicable means and measures— (1)to assist the efforts of public health and health care professionals, first responders, States, tribes, municipalities, and local communities to incorporate measures to prepare health systems to respond to the impacts of climate change; (2)to ensure— (A)that the Nation’s health professionals have sufficient information to prepare for and respond to the adverse health impacts of climate change; (B)the utility and value of scientific research in advancing understanding of— (i)the health impacts of climate change; and (ii)strategies to prepare for and respond to the health impacts of climate change; (C)the identification of communities vulnerable to the health effects of climate change and the development of strategic response plans to be carried out by health professionals for those communities; (D)the improvement of health status and health equity through efforts to prepare for and respond to climate change; and (E)the inclusion of health policy in the development of climate change responses; (3)to encourage further research, interdisciplinary partnership, and collaboration among stakeholders in order to— (A)understand and monitor the health impacts of climate change; and (B)improve public health knowledge and response strategies to climate change; (4)to enhance preparedness activities, and public health infrastructure, relating to climate change and health; (5)to encourage each and every American to learn about the impacts of climate change on health; and (6)to assist the efforts of developing nations to incorporate measures to prepare health systems to respond to the impacts of climate change.

462.

Relationship to other laws

Nothing in this subpart in any manner limits the authority provided to or responsibility conferred on any Federal department or agency by any provision of any law (including regulations) or authorizes any violation of any provision of any law (including regulations), including any health, energy, environmental, transportation, or any other law or regulation.

463.

National strategic action plan

(a)

Requirement

(1)

In general

The Secretary of Health and Human Services, within 2 years after the date of the enactment of this Act, on the basis of the best available science, and in consultation pursuant to paragraph (2), shall publish a strategic action plan to assist health professionals in preparing for and responding to the impacts of climate change on public health in the United States and other nations, particularly developing nations. (2)

Consultation

In developing or making any revision to the national strategic action plan, the Secretary shall— (A)consult with the Director of the Centers for Disease Control and Prevention, the Administrator of the Environmental Protection Agency, the Director of the National Institutes of Health, the Secretary of Energy, other appropriate Federal agencies, Indian tribes, State and local governments, public health organizations, scientists, and other interested stakeholders; and (B)provide opportunity for public input. (b)

Contents

(1)

In general

The Secretary, acting through the Director of the Centers for Disease Control and Prevention and other appropriate Federal agencies, shall assist health professionals in preparing for and responding effectively and efficiently to the health effects of climate change through measures including— (A)developing, improving, integrating, and maintaining domestic and international disease surveillance systems and monitoring capacity to respond to health-related effects of climate change, including on topics addressing— (i)water, food, and vector borne infectious diseases and climate change; (ii)pulmonary effects, including responses to aeroallergens; (iii)cardiovascular effects, including impacts of temperature extremes; (iv)air pollution health effects, including heightened sensitivity to air pollution; (v)hazardous algal blooms; (vi)mental and behavioral health impacts of climate change; (vii)the health of refugees, displaced persons, and vulnerable communities; (viii)the implications for communities vulnerable to health effects of climate change, as well as strategies for responding to climate change within these communities; and (ix)local and community-based health interventions for climate-related health impacts; (B)creating tools for predicting and monitoring the public health effects of climate change on the international, national, regional, State, and local levels, and providing technical support to assist in their implementation; (C)developing public health communications strategies and interventions for extreme weather events and disaster response situations; (D)identifying and prioritizing communities and populations vulnerable to the health effects of climate change, and determining actions and communication strategies that should be taken to inform and protect these communities and populations from the health effects of climate change; (E)developing health communication, public education, and outreach programs aimed at public health and health care professionals, as well as the general public, to promote preparedness and response strategies relating to climate change and public health, including the identification of greenhouse gas reduction behaviors that are health-promoting; and (F)developing academic and regional centers of excellence devoted to— (i)researching relationships between climate change and health; (ii)expanding and training the public health workforce to strengthen the capacity of such workforce to respond to and prepare for the health effects of climate change; (iii)creating and supporting academic fellowships focusing on the health effects of climate change; and (iv)training senior health ministry officials from developing nations to strengthen the capacity of such nations to— (I)prepare for and respond to the health effects of climate change; and (II)build an international network of public health professionals with the necessary climate change knowledge base; (G)using techniques, including health impact assessments, to assess various climate change public health preparedness and response strategies on international, national, State, regional, tribal, and local levels, and make recommendations as to those strategies that best protect the public health; (H)(i)assisting in the development, implementation, and support of State, regional, tribal, and local preparedness, communication, and response plans (including with respect to the health departments of such entities) to anticipate and reduce the health threats of climate change; and (ii)pursuing collaborative efforts to develop, integrate, and implement such plans; (I)creating a program to advance research as it relates to the effects of climate change on public health across Federal agencies, including research to— (i)identify and assess climate change health effects preparedness and response strategies; (ii)prioritize critical public health infrastructure projects related to potential climate change impacts that affect public health; and (iii)coordinate preparedness for climate change health impacts, including the development of modeling and forecasting tools; (J)providing technical assistance for the development, implementation, and support of preparedness and response plans to anticipate and reduce the health threats of climate change in developing nations; and (K)carrying out other activities determined appropriate by the Secretary to plan for and respond to the impacts of climate change on public health. (c)

Revision

The Secretary shall revise the national strategic action plan not later than July 1, 2014, and every 4 years thereafter, to reflect new information collected pursuant to implementation of the national strategic action plan and otherwise, including information on— (1)the status of critical environmental health parameters and related human health impacts; (2)the impacts of climate change on public health; and (3)advances in the development of strategies for preparing for and responding to the impacts of climate change on public health. (d)

Implementation

(1)

Implementation through HHS

The Secretary shall exercise the Secretary’s authority under this subpart and other provisions of Federal law to achieve the goals and measures of the national strategic action plan. (2)

Other public health programs and initiatives

The Secretary and Federal officials of other relevant Federal agencies shall administer public health programs and initiatives authorized by provisions of law other than this subpart, subject to the requirements of such statutes, in a manner designed to achieve the goals of the national strategic action plan. (3)

CDC

In furtherance of the national strategic action plan, the Secretary, acting through the Director of the Centers for Disease Control and Prevention and the head of any other appropriate Federal agency, shall— (A)conduct scientific research to assist health professionals in preparing for and responding to the impacts of climate change on public health; and (B)provide funding for— (i)research on the health effects of climate change; and (ii)preparedness planning on the international, national, State, tribal, regional, and local levels to respond to or reduce the burden of health effects of climate change; and (C)carry out other activities determined appropriate by the Director or the head of such agency to prepare for and respond to the impacts of climate change on public health.

464.

Advisory board

(a)

Establishment

The Secretary shall establish a permanent science advisory board comprised of not less than 10 and not more than 20 members. (b)

Appointment of members

The Secretary shall appoint the members of the science advisory board from among individuals— (1)who have expertise in public health and human services, climate change, and other relevant disciplines; and (2)at least ½ of whom are recommended by the President of the National Academy of Sciences. (c)

Functions

The science advisory board shall— (1)provide scientific and technical advice and recommendations to the Secretary on the domestic and international impacts of climate change on public health, populations and regions particularly vulnerable to the effects of climate change, and strategies and mechanisms to prepare for and respond to the impacts of climate change on public health; and (2)advise the Secretary regarding the best science available for purposes of issuing the national strategic action plan.

465.

Reports

(a)

Needs assessment

(1)

In general

The Secretary shall seek to enter into, by not later than 6 months after the date of the enactment of this Act, an agreement with the National Research Council and the Institute of Medicine to complete a report that— (A)assesses the needs for health professionals to prepare for and respond to climate change impacts on public health; and (B)recommends programs to meet those needs. (2)

Submission

The agreement under paragraph (1) shall require the completed report to be submitted to the Congress and the Secretary and made publicly available not later than 1 year after the date of the agreement. (b)

Climate change health protection and promotion reports

(1)

In general

The Secretary, in consultation with the advisory board established under section 464, shall ensure the issuance of reports to aid health professionals in preparing for and responding to the adverse health effects of climate change that— (A)review scientific developments on health impacts of climate change; and (B)recommend changes to the national strategic action plan. (2)

Submission

The Secretary shall submit the reports required by paragraph (1) to the Congress and make such reports publicly available not later than July 1, 2013, and every 4 years thereafter.

466.

Definitions

In this subpart: (1)

Health impact assessment

The term health impact assessment means a combination of procedures, methods, and tools by which a policy, program, or project may be judged as to its potential effects on the health of a population, and the distribution of those effects within the population. (2)

National strategic action plan

The term national strategic action plan means the plan issued and revised under section 463. (3)

Secretary

Unless otherwise specified, the term Secretary means the Secretary of Health and Human Services.

467.

Climate Change Health Protection and Promotion Fund

(a)

Establishment of fund

Subject to subtitle F of title IV, there is hereby established in the Treasury a separate account that shall be known as the Climate Change Health Protection and Promotion Fund. (b)

Availability of amounts

Subject to subtitle F of title IV, all amounts deposited into the Climate Change Health Protection and Promotion Fund shall be available to the Secretary to carry out this subpart subject to further appropriation. (c)

Distribution of funds by HHS

In carrying out this subpart, the Secretary may make funds deposited in the Climate Change Health Protection and Promotion Fund available to— (1)other departments, agencies, and offices of the Federal Government; (2)foreign, State, tribal, and local governments; and (3)such other entities as the Secretary determines appropriate. (d)

Supplement, not replace

It is the intent of Congress that funds made available to carry out this subpart should be used to supplement, and not replace, existing sources of funding for public health.

Natural resource adaptation

471.

Purposes

The purposes of this subpart are to— (1)establish an integrated Federal program to protect, restore, and conserve the Nation’s natural resources in response to the threats of climate change and ocean acidification; and (2)provide financial support and incentives for programs, strategies, and activities that protect, restore, and conserve the Nation’s natural resources in response to the threats of climate change and ocean acidification.

472.

Natural resources climate change adaptation policy

It is the policy of the Federal Government, in cooperation with State and local governments, Indian tribes, and other interested stakeholders to use all practicable means and measures to protect, restore, and conserve natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification.

473.

Definitions

In this subpart: (1)

Coastal state

The term coastal State has the meaning given the term in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453). (2)

Corridors

The term corridors means areas that provide connectivity, over different time scales (including seasonal or longer), of habitat or potential habitat and that facilitate the ability of terrestrial, marine, estuarine, and freshwater fish, wildlife, or plants to move within a landscape as needed for migration, gene flow, or dispersal, or in response to the impacts of climate change and ocean acidification or other impacts. (3)

Ecological processes

The term ecological processes means biological, chemical, or physical interaction between the biotic and abiotic components of an ecosystem and includes— (A)nutrient cycling; (B)pollination; (C)predator-prey relationships; (D)soil formation; (E)gene flow; (F)disease epizootiology; (G)larval dispersal and settlement; (H)hydrological cycling; (I)decomposition; and (J)disturbance regimes such as fire and flooding. (4)

Habitat

The term habitat means the physical, chemical, and biological properties that are used by fish, wildlife, or plants for growth, reproduction, survival, food, water, and cover, on a tract of land, in a body of water, or in an area or region. (5)

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). (6)

Natural resources

The term natural resources means the terrestrial, freshwater, estuarine, and marine fish, wildlife, plants, land, water, habitats, and ecosystems of the United States. (7)

Natural resources adaptation

The term natural resources adaptation means the protection, restoration, and conservation of natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification. (8)

Resilience

Each of the terms resilience and resilient means the ability to resist or recover from disturbance and preserve diversity, productivity, and sustainability. (9)

State

The term State means— (A)a State of the United States; (B)the District of Columbia; and (C)the Commonwealth of Puerto Rico, Guam, the United States Virgin Islands, the Northern Mariana Islands, and American Samoa.

474.

Council on Environmental Quality

The Chair of the Council on Environmental Quality shall— (1)advise the President on implementation and development of— (A)a Natural Resources Climate Change Adaptation Strategy required under section 476; and (B)Federal natural resource agency adaptation plans required under section 478; (2)serve as the Chair of the Natural Resources Climate Change Adaptation Panel established under section 475; and (3)coordinate Federal agency strategies, plans, programs, and activities related to protecting, restoring, and maintaining natural resources to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification.

475.

Natural Resources Climate Change Adaptation Panel

(a)

Establishment

Not later than 90 days after the date of the enactment of this subpart, the President shall establish a Natural Resources Climate Change Adaptation Panel, consisting of— (1)the head, or their designee, of each of— (A)the National Oceanic and Atmospheric Administration; (B)the Forest Service; (C)the National Park Service; (D)the United States Fish and Wildlife Service; (E)the Bureau of Land Management; (F)the United States Geological Survey; (G)the Bureau of Reclamation; (H)the Bureau of Indian Affairs; (I)the Environmental Protection Agency; and (J)the Army Corps of Engineers; (2)the Chair of the Council on Environmental Quality; and (3)the heads of such other Federal agencies or departments with jurisdiction over natural resources of the United States, as determined by the President. (b)

Functions

The Panel shall serve as a forum for interagency consultation on and the coordination of the development and implementation of a national Natural Resources Climate Change Adaptation Strategy required under section 476. (c)

Chair

The Chair of the Council on Environmental Quality shall serve as the Chair of the Panel.

476.

Natural Resources Climate Change Adaptation Strategy

(a)

In general

Not later than 1 year after the date of the enactment of this subpart, the President, through the Natural Resources Climate Change Adaptation Panel established under section 475, shall develop a Natural Resources Climate Change Adaptation Strategy to protect, restore, and conserve natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification and to identify opportunities to mitigate those impacts. (b)

Development and Revision

In developing and revising the Strategy, the Panel shall— (1)base the strategy on the best available science; (2)develop the strategy in close cooperation with States and Indian tribes; (3)coordinate with other Federal agencies as appropriate; (4)consult with local governments, conservation organizations, scientists, and other interested stakeholders; (5)provide public notice and opportunity for comment; and (6)review and revise the Strategy every 5 years to incorporate new information regarding the impacts of climate change and ocean acidification on natural resources and advances in the development of strategies for becoming more resilient and adapting to those impacts. (c)

Contents

The National Resources Adaptation Strategy shall include— (1)an assessment of the vulnerability of natural resources to climate change and ocean acidification, including the short-term, medium-term, long-term, cumulative, and synergistic impacts; (2)a description of current research, observation, and monitoring activities at the Federal, State, tribal, and local level related to the impacts of climate change and ocean acidification on natural resources, as well as identification of research and data needs and priorities; (3)identification of natural resources that are likely to have the greatest need for protection, restoration, and conservation because of the adverse effects of climate change and ocean acidification; (4)specific protocols for integrating climate change and ocean acidification adaptation strategies and activities into the conservation and management of natural resources by Federal departments and agencies to ensure consistency across agency jurisdictions and resources; (5)specific actions that Federal departments and agencies shall take to protect, conserve, and restore natural resources to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification, including a timeline to implement those actions; (6)specific mechanisms for ensuring communication and coordination among Federal departments and agencies, and between Federal departments and agencies and State natural resource agencies, United States territories, Indian tribes, private landowners, conservation organizations, and other nations that share jurisdiction over natural resources with the United States; (7)specific actions to develop and implement consistent natural resources inventory and monitoring protocols through interagency coordination and collaboration; and (8)a process for guiding the development of detailed agency- and department-specific adaptation plans required under section 478 to address the impacts of climate change and ocean acidification on the natural resources in the jurisdiction of each agency. (d)

Implementation

Consistent with its authorities under other laws and with Federal trust responsibilities with respect to Indian lands, each Federal department or agency with representation on the National Resources Climate Change Adaptation Panel shall consider the impacts of climate change and ocean acidification and integrate the elements of the strategy into agency plans, environmental reviews, programs, and activities related to the conservation, restoration, and management of natural resources.

477.

Natural resources adaptation science and information

(a)

Coordination

Not later than 90 days after the date of the enactment of this subpart, the Secretary of Commerce, acting through the Administrator of the National Oceanic and Atmospheric Administration, and the Secretary of the Interior, acting through the Director of the United States Geological Survey, shall establish a coordinated process for developing and providing science and information needed to assess and address the impacts of climate change and ocean acidification on natural resources. The process shall be led by the National Climate Change and Wildlife Science Center established within the United States Geological Survey under subsection (d) and the National Climate Service of the National Oceanic and Atmospheric Administration. (b)

Functions

The Secretaries shall ensure that such process avoids duplication and that the National Oceanic and Atmospheric Administration and the United States Geological Survey shall— (1)provide technical assistance to Federal departments and agencies, State and local governments, Indian tribes, and interested private landowners in their efforts to assess and address the impacts of climate change and ocean acidification on natural resources; (2)conduct and sponsor research and provide Federal departments and agencies, State and local governments, Indian tribes, and interested private landowners with research products, decision and monitoring tools and information, to develop strategies for assisting natural resources to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification; and (3)assist Federal departments and agencies in the development of the adaptation plans required under section 478. (c)

Survey

Not later than 1 year after the date of enactment of this subpart and every 5 years thereafter, the Secretary of Commerce and the Secretary of the Interior shall undertake a climate change and ocean acidification impact survey that— (1)identifies natural resources considered likely to be adversely affected by climate change and ocean acidification; (2)includes baseline monitoring and ongoing trend analysis; (3)uses a stakeholder process to identify and prioritize needed monitoring and research that is of greatest relevance to the ongoing needs of natural resource managers to address the impacts of climate change and ocean acidification; and (4)identifies decision tools necessary to develop strategies for assisting natural resources to become more resilient and adapt to and withstand the impacts of climate change and ocean acidification. (d)

National Climate Change and Wildlife Science Center

(1)

Establishment

The Secretary of the Interior shall establish the National Climate Change and Wildlife Science Center within the United States Geological Survey. (2)

Functions

The Center shall, in collaboration with Federal and State natural resources agencies and departments, Indian tribes, universities, and other partner organizations— (A)assess and synthesize current physical and biological knowledge and prioritize scientific gaps in such knowledge in order to forecast the ecological impacts of climate change on fish and wildlife at the ecosystem, habitat, community, population, and species levels; (B)develop and improve tools to identify, evaluate, and, where appropriate, link scientific approaches and models for forecasting the impacts of climate change and adaptation on fish, wildlife, plants, and their habitats, including monitoring, predictive models, vulnerability analyses, risk assessments, and decision support systems to help managers make informed decisions; (C)develop and evaluate tools to adaptively manage and monitor the effects of climate change on fish and wildlife at national, regional, and local scales; and (D)develop capacities for sharing standardized data and the synthesis of such data. (e)

Science Advisory Board

(1)

Establishment

Not later than 180 days after the date of enactment of this subpart, the Secretary of Commerce and the Secretary of the Interior shall establish and appoint the members of a Science Advisory Board, to be comprised of not fewer than 10 and not more than 20 members— (A)who have expertise in fish, wildlife, plant, aquatic, and coastal and marine biology, ecology, climate change, ocean acidification, and other relevant scientific disciplines; (B)who represent a balanced membership among Federal, State, Indian tribes, and local representatives, universities, and conservation organizations; and (C)at least ½ of whom are recommended by the President of the National Academy of Sciences. (2)

Duties

The Science Advisory Board shall— (A)advise the Secretaries on the state-of-the-science regarding the impacts of climate change and ocean acidification on natural resources and scientific strategies and mechanisms for protecting, restoring, and conserving natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification; and (B)identify and recommend priorities for ongoing research needs on such issues. (3)

Collaboration

The Science Advisory Board shall collaborate with other climate change and ecosystem research entities in other Federal agencies and departments. (4)

Availability to the Public

The advice and recommendations of the Science Advisory Board shall be made available to the public.

478.

Federal natural resource agency adaptation plans

(a)

Development

Not later than 1 year after the date of the development of a Natural Resources Climate Change Adaptation Strategy under section 476, each department or agency that has a representative on the Natural Resources Climate Change Adaptation Panel established under section 475 shall— (1)complete an adaptation plan for that department or agency, respectively, implementing the Natural Resources Climate Change Adaptation Strategy under section 476 and consistent with the Natural Resources Climate Change Adaptation Policy under section 472, detailing the department’s or agency’s current and projected efforts to address the potential impacts of climate change and ocean acidification on natural resources within the department’s or agency’s jurisdiction and necessary additional actions, including a timeline for implementation of those actions; (2)provide opportunities for review and comment on that adaptation plan by the public, including in the case of a plan by the Bureau of Indian Affairs, review by Indian tribes; and (3)submit such plan to the President for approval. (b)

Review by President and Submission to Congress

(1)

Review by President

The President shall— (A)approve an adaptation plan submitted under subsection (a)(3) if the plan meets the requirements of subsection (c) and is consistent with the strategy developed under section 476; (B)decide whether to approve the plan within 60 days after submission; and (C)if the President disapproves a plan, direct the department or agency to submit a revised plan to the President under subsection (a)(3) within 60 days after such disapproval. (2)

Submission to Congress

Not later than 30 days after the date of approval of such adaptation plan by the President, the department or agency shall submit the approved plan to the Committee on Natural Resources of the House of Representatives, the Committee on Energy and Natural Resources of the Senate, and the committees of the House of Representatives and the Senate with principal jurisdiction over the department or agency. (c)

Requirements

Each adaptation plan shall— (1)establish programs for assessing the current and future impacts of climate change and ocean acidification on natural resources within the department’s or agency’s, respectively, jurisdiction, including cumulative and synergistic effects, and for identifying and monitoring those natural resources that are likely to be adversely affected and that have need for conservation; (2)identify and prioritize the department’s or agency’s strategies and specific conservation actions to address the current and future impacts of climate change and ocean acidification on natural resources within the scope of the department’s or agency’s jurisdiction and to develop and implement strategies to protect, restore, and conserve such resources to become more resilient, adapt to, and better withstand those impacts, including— (A)the protection, restoration, and conservation of terrestrial, marine, estuarine, and freshwater habitats and ecosystems; (B)the establishment of terrestrial, marine, estuarine, and freshwater habitat linkages and corridors; (C)the restoration and conservation of ecological processes; (D)the protection of a broad diversity of native species of fish, wildlife, and plant populations across their range; and (E)the protection of fish, wildlife, and plant health, recognizing that climate can alter the distribution and ecology of parasites, pathogens, and vectors; (3)describe how the department or agency will integrate such strategies and conservation activities into plans, programs, activities, and actions of the department or agency, related to the conservation and management of natural resources and establish new plans, programs, activities, and actions as necessary; (4)establish methods for assessing the effectiveness of strategies and conservation actions taken to protect, restore, and conserve natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification, and for updating those strategies and actions to respond to new information and changing conditions; (5)include a description of current and proposed mechanisms to enhance cooperation and coordination of natural resources adaptation efforts with other Federal agencies, State and local governments, Indian tribes, and nongovernmental stakeholders; (6)include specific written guidance to resource managers to— (A)explain how managers are expected to address the effects of climate change and ocean acidification; (B)identify how managers are to obtain any site-specific information that may be necessary; and (C)reflect best practices shared among relevant agencies, while also recognizing the unique missions, objectives, and responsibilities of each agency; and (7)identify and assess data and information gaps necessary to develop natural resources adaptation plans and strategies. (d)

Implementation

(1)

In general

Upon approval by the President, each department or agency that serves on the Natural Resources Climate Change Adaptation Panel shall implement its adaptation plan through existing and new plans, policies, programs, activities, and actions to the extent not inconsistent with existing authority. (2)

Consideration of impacts

(A)

In general

To the maximum extent practicable and consistent with applicable law, every natural resource management decision made by the department or agency shall consider the impacts of climate change and ocean acidification on those natural resources. (B)

Guidance

The Council on Environmental Quality shall issue guidance for Federal departments and agencies for considering those impacts. (e)

Revision and review

Not less than every 5 years, each adaptation plan under this section shall be reviewed and revised to incorporate the best available science and other information regarding the impacts of climate change and ocean acidification on natural resources.

479.

State natural resources adaptation plans

(a)

Requirement

In order to be eligible for funds under section 480, not later than 1 year after the development of a Natural Resources Climate Change Adaptation Strategy required under section 476 each State shall prepare a State natural resources adaptation plan detailing the State’s current and projected efforts to address the potential impacts of climate change and ocean acidification on natural resources and coastal areas within the State’s jurisdiction. (b)

Review or approval

(1)

In general

Each State adaptation plan shall be reviewed and approved or disapproved by the Secretary of the Interior and, as applicable, the Secretary of Commerce. Such approval shall be granted if the plan meets the requirements of subsection (c) and is consistent with the Natural Resources Climate Change Adaptation Strategy required under section 476. (2)

Approval or disapproval

Within 180 days after transmittal of such a plan, or a revision to such a plan, the Secretary of the Interior and, as applicable, the Secretary of Commerce shall approve or disapprove the plan by written notice. (3)

Resubmittal

Within 90 days after transmittal of a resubmitted adaptation plan as a result of disapproval under paragraph (3), the Secretary of the Interior and, as applicable, the Secretary of Commerce, shall approve or disapprove the plan by written notice. (c)

Contents

A State natural resources adaptation plan shall— (1)include a strategy for addressing the impacts of climate change and ocean acidification on terrestrial, marine, estuarine, and freshwater fish, wildlife, plants, habitats, ecosystems, wildlife health, and ecological processes, that— (A)describes the impacts of climate change and ocean acidification on the diversity and health of the fish, wildlife and plant populations, habitats, ecosystems, and associated ecological processes; (B)establishes programs for monitoring the impacts of climate change and ocean acidification on fish, wildlife, and plant populations, habitats, ecosystems, and associated ecological processes; (C)describes and prioritizes proposed conservation actions to assist fish, wildlife, plant populations, habitats, ecosystems, and associated ecological processes in becoming more resilient, adapting to, and better withstanding those impacts; (D)includes strategies, specific conservation actions, and a time frame for implementing conservation actions for fish, wildlife, and plant populations, habitats, ecosystems, and associated ecological processes; (E)establishes methods for assessing the effectiveness of strategies and conservation actions taken to assist fish, wildlife, and plant populations, habitats, ecosystems, and associated ecological processes in becoming more resilient, adapt to, and better withstand the impacts of climate changes and ocean acidification and for updating those strategies and actions to respond appropriately to new information or changing conditions; (F)is incorporated into a revision of the State wildlife action plan (also known as the State comprehensive wildlife strategy)— (i)that has been submitted to the United States Fish and Wildlife Service; and (ii)that has been approved by the Service or on which a decision on approval is pending; and (G)is developed— (i)with the participation of the State fish and wildlife agency, the State coastal agency, the State agency responsible for administration of Land and Water Conservation Fund grants, the State Forest Legacy program coordinator, and other State agencies considered appropriate by the Governor of such State; and (ii)in coordination with the Secretary of the Interior, and where applicable, the Secretary of Commerce and other States that share jurisdiction over natural resources with the State; and (2)include, in the case of a coastal State, a strategy for addressing the impacts of climate change and ocean acidification on the coastal zone that— (A)identifies natural resources that are likely to be impacted by climate change and ocean acidification and describes those impacts; (B)identifies and prioritizes continuing research and data collection needed to address those impacts including— (i)acquisition of high resolution coastal elevation and nearshore bathymetry data; (ii)historic shoreline position maps, erosion rates, and inventories of shoreline features and structures; (iii)measures and models of relative rates of sea level rise or lake level changes, including effects on flooding, storm surge, inundation, and coastal geological processes; (iv)habitat loss, including projected losses of coastal wetlands and potentials for inland migration of natural shoreline habitats; (v)ocean and coastal species and ecosystem migrations, and changes in species population dynamics; (vi)changes in storm frequency, intensity, or rainfall patterns; (vii)saltwater intrusion into coastal rivers and aquifers; (viii)changes in chemical or physical characteristics of marine and estuarine systems; (ix)increased harmful algal blooms; and (x)spread of invasive species; (C)identifies and prioritizes adaptation strategies to protect, restore, and conserve natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification, including— (i)protection, maintenance, and restoration of ecologically important coastal lands, coastal and ocean ecosystems, and species biodiversity and the establishment of habitat buffer zones, migration corridors, and climate refugia; and (ii)improved planning, siting policies, and hazard mitigation strategies; (D)establishes programs for the long-term monitoring of the impacts of climate change and ocean acidification on the ocean and coastal zone and to assess and adjust, when necessary, such adaptive management strategies; (E)establishes performance measures for assessing the effectiveness of adaptation strategies intended to improve resilience and the ability of natural resources in the coastal zone to adapt to and withstand the impacts of climate change and ocean acidification and of adaptation strategies intended to minimize those impacts on the coastal zone and to update those strategies to respond to new information or changing conditions; and (F)is developed with the participation of the State coastal agency and other appropriate State agencies and in coordination with the Secretary of Commerce and other appropriate Federal agencies. (d)

Public input

States shall provide for solicitation and consideration of public and independent scientific input in the development of their plans. (e)

Coordination with other plans

The State plan shall take into consideration research and information contained in, and coordinate with and integrate the goals and measures identified in, as appropriate, other natural resources conservation strategies, including— (1)the national fish habitat action plan; (2)plans under the North American Wetlands Conservation Act (16 U.S.C. 4401 et seq.); (3)the Federal, State, and local partnership known as Partners in Flight; (4)federally approved coastal zone management plans under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.); (5)federally approved regional fishery management plants and habitat conservation activities under the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.); (6)the national coral reef action plan; (7)recovery plans for threatened species and endangered species under section 4(f) of the Endangered Species Act of 1973 (16 U.S.C. 1533(f)); (8)habitat conservation plans under section 10 of that Act (16 U.S.C. 1539); (9)other Federal, State, and tribal plans for imperiled species; (10)State or tribal hazard mitigation plans; (11)State or tribal water management plans; and (12)other State-based strategies that comprehensively implement adaptation activities to remediate the effects of climate change and ocean acidification on terrestrial, marine, and freshwater fish, wildlife, plants, and other natural resources. (f)

Updating

Each State plan shall be updated not less than every 5 years. (g)

Funding

(1)

In general

Funds allocated to States under section 480 shall be used only for activities that are consistent with a State natural resources adaptation plan that has been approved by the Secretaries of Interior and Commerce. (2)

Funding prior to the approval of a State plan

Until the earlier of the date that is 3 years after the date of the enactment of this subpart or the date on which a State receives approval for the State strategy, a State shall be eligible to receive funding under section 480 for adaptation activities that are— (A)consistent with the comprehensive wildlife strategy of the State and, where appropriate, other natural resources conservation strategies; and (B)in accordance with a workplan developed in coordination with— (i)the Secretary of the Interior; and (ii)the Secretary of Commerce, for any coastal State subject to the condition that coordination with the Secretary of Commerce shall be required only for those portions of the strategy relating to activities affecting the coastal zone. (3)

Pending approval

During the period for which approval by the applicable Secretary of a State plan is pending, the State may continue receiving funds under section 480 pursuant to the workplan described in paragraph (2)(B).

480.

Natural Resources Climate Change Adaptation Fund

(a)

Allocations to States

100 percent of the emission allowances made available for each year to carry out this subpart shall be provided to States to carry out natural resources adaptation activities in accordance with State natural resources adaptation plans approved under section 479. Specifically— (1)84.4 percent shall be available to State wildlife agencies in accordance with the apportionment formula established under the second subsection (c) of section 4 of the Pittman-Robertson Wildlife Restoration Act (16 U.S.C. 669c), as added by section 902(e) of H.R. 5548 as introduced in the 106th Congress and enacted into law by section 1(a)(2) of Public Law 106–553 (114 Stat. 2762A–119); and (2)15.6 percent shall be available to State coastal agencies pursuant to the formula established by the Secretary of Commerce under section 306(c) of the Coastal Management Act of 1972 (16 U.S.C. 1455(c)). (b)

Establishment of Fund

(1)

Establishment

Subject to subtitle F of title IV, there is hereby established in the Treasury a separate account that shall be known as the Natural Resources Climate Change Adaptation Fund. (2)

Authorization of Appropriations

Subject to subtitle F of title IV, there are authorized to be appropriated for subsection (c) such sums as are deposited in the Natural Resources Climate Change Fund, and the amounts appropriated for subsection (c) shall be no less than the total estimated annual deposits in the Natural Resources Climate Change Adaptation Fund. (c)

Allocations to Federal agencies

(1)

Department of the Interior

Of the amounts made available for each fiscal year to carry out this subpart— (A)27.6 percent shall be allocated to the Secretary of the Interior for use in funding— (i)natural resources adaptation activities carried out— (I)under endangered species, migratory species, and other fish and wildlife programs administered by the National Park Service, the United States Fish and Wildlife Service, the Bureau of Indian Affairs, and the Bureau of Land Management; (II)on wildlife refuges, National Park Service land, and other public land under the jurisdiction of the United States Fish and Wildlife Service, the Bureau of Land Management, the Bureau of Indian Affairs, or the National Park Service; or (III)within Federal water managed by the Bureau of Reclamation and the National Park Service; and (ii)for the implementation of the National Fish and Wildlife Habitat and Corridors Identification Program pursuant to section 481; (B)8.1 percent shall be allocated to the Secretary of the Interior for natural resources adaptation activities carried out under cooperative grant programs, including— (i)the cooperative endangered species conservation fund authorized under section 6 of the Endangered Species Act of 1973 (16 U.S.C. 1535); (ii)programs under the North American Wetlands Conservation Act (16 U.S.C. 4401 et seq.); (iii)the Neotropical Migratory Bird Conservation Fund established by section 478(a) of the Neotropical Migratory Bird Conservation Act (16 U.S.C. 6108(a)); (iv)the Coastal Program of the United States Fish and Wildlife Service; (v)the National Fish Habitat Action Plan; (vi)the Partners for Fish and Wildlife Program; (vii)the Landowner Incentive Program; (viii)the Wildlife Without Borders Program of the United States Fish and Wildlife Service; and (ix)the Migratory Species Program and Park Flight Migratory Bird Program of the National Park Service; and (C)4.9 percent shall be allocated to the Secretary of the Interior to provide financial assistance to Indian tribes to carry out natural resources adaptation activities through the Tribal Wildlife Grants Program of the United States Fish and Wildlife Service and in accordance with the Indian Self-Determination and Educational Assistance Act (25 U.S.C. 450(f)). (2)

Land and Water Conservation Fund

(A)

Deposits

(i)

In general

Of the amounts made available for each fiscal year to carry out this subpart, 19.5 percent shall be deposited into the Land and Water Conservation Fund established under section 2 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–5). (ii)

Use of deposits

(I)Deposits into the Land and Water Conservation Fund under this paragraph shall be supplemental to authorizations provided under section 3 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–6), which shall remain available for nonadaptation needs. (II)There are authorized to be appropriated for activities in this subpart such sums as are deposited in the Land and Water Conservation Fund pursuant to section 480(c)(3)(A)(ii), and the amounts appropriated for this paragraph shall be no less than the total estimated annual deposits in the Land and Water Conservation Fund. (B)

Allocations

Of the amounts deposited under this paragraph into the Land and Water Conservation Fund— (i)1/6 shall be allocated to the Secretary of the Interior and made available on a competitive basis to carry out natural resources adaptation activities through the acquisition of land and interests in land under section 6 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–8)— (I)to States in accordance with their natural resources adaptation plans, and to Indian tribes; (II)notwithstanding section 5 of that Act (16 U.S.C. 460l–7); and (III)in addition to any funds provided pursuant to annual appropriations Acts, the Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.), or any other authorization for nonadaptation needs; (ii)1/3 shall be allocated to the Secretary of the Interior to carry out natural resources adaptation activities through the acquisition of lands and interests in land under section 7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–9); (iii)1/6 shall be allocated to the Secretary of Agriculture and made available to the States and Indian tribes to carry out natural resources adaptation activities through the acquisition of land and interests in land under section 7 of the Forest Legacy Program under the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103c); and (iv)1/3 shall be allocated to the Secretary of Agriculture to carry out natural resources adaptation activities through the acquisition of land and interests in land under section 7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–9). (C)

Expenditure of funds

In allocating funds under subparagraph (B), the Secretary of the Interior and the Secretary of Agriculture shall take into consideration factors including— (i)the availability of non-Federal contributions from State, local, or private sources; (ii)opportunities to protect fish and wildlife corridors or otherwise to link or consolidate fragmented habitats; (iii)opportunities to reduce the risk of catastrophic wildfires, drought, extreme flooding, or other climate-related events that are harmful to fish and wildlife and people; and (iv)the potential for conservation of species or habitat types at serious risk due to climate change, ocean acidification, and other stressors. (3)

Forest Service

Of the amounts made available for each fiscal year to carry out this subpart, 8.1 percent shall be allocated to the Secretary of Agriculture for use in funding natural resources adaptation activities carried out on national forests and national grasslands under the jurisdiction of the Forest Service and for natural resource adaptation activities on State and private forest lands carried out under the Cooperative Forestry Assistance Act of 1978. (4)

Department of Commerce

Of the amounts made available for each fiscal year to carry out this subpart, 11.5 percent shall be allocated to the Secretary of Commerce for use in funding natural resources adaptation activities to protect, maintain, and restore coastal, estuarine, and marine resources, habitats, and ecosystems, including such activities carried out under— (A)the coastal and estuarine land conservation program; (B)the community-based restoration program; (C)the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), that are specifically designed to strengthen the ability of coastal, estuarine, and marine resources, habitats, and ecosystems to adapt to and withstand the impacts of climate change and ocean acidification; (D)the Open Rivers Initiative; (E)the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.); (F)the Marine Mammal Protection Act of 1972 (16 U.S.C. 1361 et seq.); (G)the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); (H)the Marine Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 1401 et seq.); (I)the Coral Reef Conservation Act of 2000 (16 U.S.C. 6401 et seq.); and (J)the Estuary Restoration Act of 2000 (33 U.S.C. 2901 et seq.). (5)

Environmental Protection Agency

Of the amounts made available each fiscal year to carry out this section, 12.2 percent shall be allocated to the Administrator for use in natural resources adaptation activities restoring and protecting— (A)large-scale freshwater aquatic ecosystems, such as the Everglades, the Great Lakes, Flathead Lake, the Missouri River, the Mississippi River, the Colorado River, the Sacramento-San Joaquin Rivers, the Ohio River, the Columbia-Snake River System, the Apalachicola, Chattahoochee, and Flint River System, the Connecticut River, and the Yellowstone River; (B)large-scale estuarine ecosystems, such as Chesapeake Bay, Long Island Sound, Puget Sound, the Mississippi River Delta, the San Francisco Bay Delta, Narragansett Bay, and Albemarle-Pamlico Sound; and (C)freshwater and estuarine ecosystems, watersheds, and basins identified as priorities by the Administrator, working in cooperation with other Federal agencies, States, Indian tribes, local governments, scientists, and other conservation partners. (6)

Corps of Engineers

Of the amounts made available each fiscal year to carry out this section, 8.1 percent shall be available to the Secretary of the Army for use by the Corps of Engineers to carry out natural resources adaptation activities restoring— (A)large-scale freshwater aquatic ecosystems, such as the ecosystems described in paragraph (5)(A); (B)large-scale estuarine ecosystems, such as the ecosystems described in paragraph (5)(B); (C)freshwater and estuarine ecosystems, watersheds, and basins identified as priorities by the Corps of Engineers, working in cooperation with other Federal agencies, States, Indian tribes, local governments, scientists, and other conservation partners; and (D)habitats and ecosystems through the implementation of estuary habitat restoration projects authorized by the Estuary Restoration Act of 2000 (33 U.S.C. 2901 et seq.), project modifications for improvement of the environment, aquatic restoration and protection projects authorized by section 206 of the Water Resources Development Act of 1996 (33 U.S.C. 2330), and other appropriate programs and activities. (d)

Use of funds by Federal departments and agencies

Funds allocated to Federal departments and agencies under this section shall only be used for natural resources adaptation activities that are consistent with an adaptation plan developed and approved by the President under section 478. (e)

State Cost Sharing

Notwithstanding any other provision of law, a State that receives a grant with amounts allocated under this section shall use funds from non-Federal sources to pay at least 10 percent of the costs of each activity carried out using amounts provided under the grant.

481.

National Wildlife Habitat and Corridors Information Program

(a)

Establishment

Within 6 months of the date of enactment of this subpart, the Secretary of the Interior, in cooperation with the States and Indian tribes, shall establish a National Fish and Wildlife Habitat and Corridors Information Program in accordance with the requirements of this section. (b)

Purpose

The purpose of this program is to— (1)support States and Indian tribes in the development of a geographic information system database of fish and wildlife habitat and corridors that would inform planning and development decisions within each State and Indian tribe, enable each State and Indian tribe to model climate impacts and adaptation, and provide geographically specific enhancements of State and tribal wildlife action plans; (2)ensure the collaborative development, with the States and Indian tribes, of a comprehensive, national geographic information system database of maps, models, data, surveys, informational products, and other geospatial information regarding fish and wildlife habitat and corridors, that— (A)is based on consistent protocols for sampling and mapping across landscapes that take into account regional differences; and (B)that utilizes— (i)existing and planned State- and tribal-based geographic information system databases; and (ii)existing databases, analytical tools, metadata activities, and other information products available through the National Biological Information Infrastructure maintained by the Secretary and nongovernmental organizations; and (3)facilitate the use of such databases by Federal, State, local, and tribal decisionmakers to incorporate qualitative information on fish and wildlife habitat and corridors at the earliest possible stage to— (A)prioritize and target natural resources adaptation strategies and activities; (B)avoid, minimize, and mitigate the impacts on fish and wildlife habitat and corridors in siting energy development, water, transmission, transportation, and other land use projects; (C)assess the impacts of existing development on habitats and corridors; and (D)develop management strategies to enhance the ability of fish, wildlife, and plant species to migrate or respond to shifting habitats within existing habitats and corridors. (c)

Habitat and Corridors Information System

(1)

In general

The Secretary, in cooperation with the States and Indian tribes, shall develop a Habitat and Corridors Information System. (2)

Contents

The System shall— (A)include maps, data, and descriptions of fish and wildlife habitat and corridors, that— (i)have been developed by Federal agencies, State wildlife agencies and natural heritage programs, Indian tribes, local governments, nongovernmental organizations, and industry; (ii)meet accepted Geospatial Interoperability Framework data and metadata protocols and standards; (B)include maps and descriptions of projected shifts in habitats and corridors of fish and wildlife species in response to climate change; (C)assure data quality and make the data, models, and analyses included in the System available at scales useful to decisionmakers— (i)to prioritize and target natural resources adaptation strategies and activities; (ii)to assess the impacts of proposed energy development, water, transmission, transportation, and other land use projects and avoid, minimize, and mitigate those impacts on habitats and corridors; (iii)to assess the impacts of existing development on habitats and corridors; and (iv)to develop management strategies to enhance the ability of fish, wildlife, and plant species to migrate or respond to shifting habitats within existing habitats and corridors; (D)establish a process for updating maps and other information as landscapes, habitats, corridors, and wildlife populations change or as other information becomes available; (E)encourage the development of collaborative plans by Federal and State agencies and Indian tribes to monitor and evaluate the efficacy of the System to meet the needs of decisionmakers; (F)identify gaps in habitat and corridor information, mapping, and research that should be addressed to fully understand and assess current data and metadata, and to prioritize research and future data collection activities for use in updating the System and provide support for those activities; (G)include mechanisms to support collaborative research, mapping, and planning of habitats and corridors by Federal and State agencies, Indian tribes, and other interested stakeholders; (H)incorporate biological and geospatial data on species and corridors found in energy development and transmission plans, including renewable energy initiatives, transportation, and other land use plans; (I)be based on the best scientific information available; and (J)identify, prioritize, and describe key parcels of non-Federal land located within the boundaries of units of the National Park System, National Wildlife Refuge System, National Forest System, or National Grassland System that are critical to maintenance of wildlife habitat and migration corridors. (d)

Financial and other support

The Secretary may provide support to the States and Indian tribes, including financial and technical assistance, for activities that support the development and implementation of the System. (e)

Coordination

The Secretary, in cooperation with the States and Indian tribes, shall make recommendations on how the information developed in the System may be incorporated into existing relevant State and Federal plans affecting fish and wildlife, including land management plans, the State Comprehensive Wildlife Conservation Strategies, and appropriate tribal conservation plans, to ensure that they— (1)prevent unnecessary habitat fragmentation and disruption of corridors; (2)promote the landscape connectivity necessary to allow wildlife to move as necessary to meet biological needs, adjust to shifts in habitat, and adapt to climate change; and (3)minimize the impacts of energy, development, water, transportation, and transmission projects and other activities expected to impact habitat and corridors. (f)

Definitions

In this section: (1)

Geospatial interoperability framework

The term Geospatial Interoperability Framework means the strategy utilized by the National Biological Information Infrastructure that is based upon accepted standards, specifications, and protocols adopted through the International Standards Organization, the Open Geospatial Consortium, and the Federal Geographic Data Committee, to manage, archive, integrate, analyze, and make accessible geospatial and biological data and metadata. (2)

Secretary

The term Secretary means the Secretary of the Interior.

482.

Additional provisions regarding Indian tribes

(a)

Federal trust responsibility

Nothing in this subpart is intended to amend, alter, or give priority over the Federal trust responsibility to Indian tribes. (b)

Exemption from FOIA

Information received by a Federal agency pursuant to this Act relating to the location, character, or ownership of human remains of a person of Indian ancestry; or resources, cultural items, uses, or activities identified by an Indian tribe as traditional or cultural because of the long-established significance or ceremonial nature to the Indian tribe; shall not be subject to disclosure under section 552 of title 5, United States Code, if the head of the agency, in consultation with the Secretary of the Interior and an affected Indian tribe, determines that disclosure may— (1)cause a significant invasion of privacy; (2)risk harm to the human remains or resources, cultural items, uses, or activities; or (3)impede the use of a traditional religious site by practitioners. (c)

Application of other law

The Secretary of the Interior may apply the provisions of Public Law 93–638 where appropriate in the implementation of this subpart.

International Climate Change Adaptation Program

491.

Findings and purposes

(a)

Findings

Congress finds the following: (1)Global climate change is a potentially significant national and global security threat multiplier and is likely to exacerbate competition and conflict over agricultural, vegetative, marine, and water resources and to result in increased displacement of people, poverty, and hunger within developing countries. (2)The strategic, social, political, economic, cultural, and environmental consequences of global climate change are likely to have disproportionate adverse impacts on developing countries, which have less economic capacity to respond to such impacts. (3)The countries most vulnerable to climate change, due both to greater exposure to harmful impacts and to lower capacity to adapt, are developing countries with very low industrial greenhouse gas emissions that have contributed less to climate change than more affluent countries. (4)To a much greater degree than developed countries, developing countries rely on the natural and environmental systems likely to be affected by climate change for sustenance, livelihoods, and economic growth and stability. (5)Within developing countries there may be varying climate change adaptation and resilience needs among different communities and populations, including impoverished communities, children, women, and indigenous peoples. (6)The consequences of global climate change, including increases in poverty and destabilization of economies and societies, are likely to pose long-term challenges to the national security, foreign policy, and economic interests of the United States. (7)It is in the national security, foreign policy, and economic interests of the United States to recognize, plan for, and mitigate the international strategic, social, political, cultural, environmental, health, and economic effects of climate change and to assist developing countries to increase their resilience to those effects. (8)Under Article 4 of the United Nations Framework Convention on Climate Change, developed country parties, including the United States, committed to assist the developing country parties that are particularly vulnerable to the adverse effects of climate change in meeting costs of adaptation to those adverse effects. (9)Under the Bali Action Plan, developed country parties to the United Nations Framework Convention on Climate Change, including the United States, committed to enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation, including, inter alia, consideration of improved access to adequate, predictable, and sustainable financial resources and financial and technical support, and the provision of new and additional resources, including official and concessional funding for developing country parties. (b)

Purposes

The purposes of this part are— (1)to provide new and additional assistance from the United States to the most vulnerable developing countries, including the most vulnerable communities and populations therein, in order to support the development and implementation of climate change adaptation programs and activities that reduce the vulnerability and increase the resilience of communities to climate change impacts, including impacts on water availability, agricultural productivity, flood risk, coastal resources, timing of seasons, biodiversity, economic livelihoods, health and diseases, and human migration; and (2)to provide such assistance in a manner that protects and promotes the national security, foreign policy, environmental, and economic interests of the United States to the extent such interests may be advanced by minimizing, averting, or increasing resilience to climate change impacts.

492.

Definitions

In this part: (1)

Allowance

The term allowance means an emission allowance established under section 721 of the Clean Air Act. (2)

Appropriate congressional committees

The term appropriate congressional committees means— (A)the Committees on Energy and Commerce, Financial Services, and Foreign Affairs of the House of Representatives; and (B)the Committees on Environment and Public Works and Foreign Relations of the Senate. (3)

Developing country

Most vulnerable developing countries

The term most vulnerable developing countries means, as determined by the Administrator of USAID, developing countries that are at risk of substantial adverse impacts of climate change and have limited capacity to respond to such impacts, considering the approaches included in any international treaties and agreements. (5)

Most vulnerable communities and populations

The term most vulnerable communities and populations means communities and populations that are at risk of substantial adverse impacts of climate change and have limited capacity to respond to such impacts, including impoverished communities, children, women, and indigenous peoples. (6)

Program

The term Program means the International Climate Change Adaptation Program established under section 493. (7)

USAID

The term USAID means the United States Agency for International Development. (8)

United Nations Framework Convention on Climate Change

The term United Nations Framework Convention on Climate Change or Convention means the United Nations Framework Convention on Climate Change done at New York on May 9, 1992, and entered into force on March 21, 1994.

493.

International Climate Change Adaptation Program

(a)

Establishment

The Secretary of State, in consultation with the Administrator of USAID, the Secretary of the Treasury, and the Administrator of the Environmental Protection Agency, shall establish an International Climate Change Adaptation Program in accordance with the requirements of this part. (b)

Allowance account

Allowances allocated pursuant to section 782(n) of the Clean Air Act shall be available for distribution to carry out the Program established under subsection (a). (c)

Supplement not supplant

Assistance provided under this part shall be used to supplement, and not to supplant, any other Federal, State, or local resources available to carry out activities of the type carried out under the Program.

494.

Distribution of allowances

(a)

In general

The Secretary of State, or such other Federal agency head as the President may designate, after consultation with the Secretary of the Treasury, the Administrator of USAID, and the Administrator of the Environmental Protection Agency, shall direct the distribution of allowances to carry out the Program— (1)in the form of bilateral assistance pursuant to the requirements under section 495; (2)to multilateral funds or international institutions pursuant to the Convention or an agreement negotiated under the Convention; or (3)through a combination of the mechanisms identified under paragraphs (1) and (2). (b)

Limitation

(1)

Conditional distribution to multilateral funds or international institutions

In any fiscal year, the Secretary of State, or such other Federal agency head as the President may designate, in consultation with the Administrator of USAID, the Secretary of the Treasury, and the Administrator of the Environmental Protection Agency, shall distribute at least 40 percent and up to 60 percent of the allowances available to carry out the Program to one or more multilateral funds or international institutions that meet the requirements of paragraph (2), if any such fund or institution exists, and shall annually certify in a report to the appropriate congressional committees that any multilateral fund or international institution receiving allowances under this section meets the requirements of paragraph (2) or that no multilateral fund or international institution that meets the requirements of paragraph (2) exists, as the case may be. The Secretary of State shall notify the appropriate congressional committees not less than 15 days prior to any transfer of allowances to a multilateral fund or international institution pursuant to this section. (2)

Multilateral fund or international institution eligibility

A multilateral fund or international institution is eligible to receive allowances available to carry out the Program— (A)if— (i)such fund or institution is established pursuant to— (I)the Convention; or (II)an agreement negotiated under the Convention; or (ii)the allowances are directed to one or more multilateral development banks or international development institutions, pursuant to an agreement negotiated under such Convention; and (B)if such fund or institution— (i)specifies the terms and conditions under which the United States is to provide allowances to the fund or institution, and under which the fund or institution is to provide assistance to recipient countries; (ii)ensures that assistance from the United States to the fund or institution and the principal and income of the fund or institution are disbursed only for purposes that are consistent with those described in section 491(b)(1); (iii)requires a regular meeting of a governing body of the fund or institution that includes representation from countries among the most vulnerable developing countries and provides public access; (iv)requires that local communities and indigenous peoples in areas where any activities or programs are planned are engaged through adequate disclosure of information, public participation, and consultation; and (v)prepares and makes public an annual report that— (I)describes the process and methodology for selecting the recipients of assistance from the fund or institution, including assessments of vulnerability; (II)describes specific programs and activities supported by the fund or institution and the extent to which the assistance is addressing the adaptation needs of the most vulnerable developing countries, and the most vulnerable communities and populations therein; (III)describes the performance goals for assistance authorized under the fund or institution and expresses such goals in an objective and quantifiable form, to the extent practicable; (IV)describes the performance indicators to be used in measuring or assessing the achievement of the performance goals described in subclause (III); (V)provides a basis for recommendations for adjustments to assistance authorized under this part to enhance the impact of such assistance; and (VI)describes the participation of other nations and international organizations in supporting and governing the fund or institution. (c)

Oversight

(1)

Distribution to multilateral funds or international institutions

The Secretary of State, or such other Federal agency head as the President may designate, in consultation with the Administrator of USAID, shall oversee the distribution of allowances available to carry out the Program to a multilateral fund or international institution under subsection (b). (2)

Bilateral assistance

The Administrator of USAID, in consultation with the Secretary of State, shall oversee the distribution of allowances available to carry out the Program for bilateral assistance under section 495.

495.

Bilateral assistance

(a)

Activities and foreign aid

(1)

In general

In order to achieve the purposes of this part, the Administrator of USAID may carry out programs and activities and distribute allowances to any private or public group (including international organizations and faith-based organizations), association, or other entity engaged in peaceful activities to— (A)provide assistance to the most vulnerable developing countries for— (i)the development of national or regional climate change adaptation plans, including a systematic assessment of socioeconomic vulnerabilities in order to identify the most vulnerable communities and populations; (ii)associated national policies; and (iii)planning, financing, and execution of adaptation programs and activities; (B)support investments, capacity-building activities, and other assistance, to reduce vulnerability and promote community-level resilience related to climate change and its impacts in the most vulnerable developing countries, including impacts on water availability, agricultural productivity, flood risk, coastal resources, timing of seasons, biodiversity, economic livelihoods, health, human migration, or other social, economic, political, cultural, or environmental matters; (C)support climate change adaptation research in or for the most vulnerable developing countries; (D)reduce vulnerability and provide increased resilience to climate change for local communities and livelihoods in the most vulnerable developing countries by encouraging— (i)the protection and rehabilitation of natural systems; (ii)the enhancement and diversification of agricultural, fishery, and other livelihoods; and (iii)the reduction of disaster risks; (E)support the deployment of technologies to help the most vulnerable developing countries respond to the destabilizing impacts of climate change and encourage the identification and adoption of appropriate renewable and efficient energy technologies that are beneficial in increasing community-level resilience to the impacts of global climate change in those countries; and (F)encourage the engagement of local communities through disclosure of information, consultation, and the communities’ informed participation relating to the development of plans, programs, and activities to increase community-level resilience to climate change impacts. (2)

Limitations

Not more than 10 percent of the allowances made available to carry out bilateral assistance under this part in any year shall be distributed to support activities in any single country. (3)

Prioritizing assistance

In providing assistance under this section, the Administrator of USAID shall give priority to countries, including the most vulnerable communities and populations therein, that are most vulnerable to the adverse impacts of climate change, determined by the likelihood and severity of such impacts and the country’s capacity to adapt to such impacts. (b)

Community engagement

(1)

In general

The Administrator of USAID shall ensure that local communities, including the most vulnerable communities and populations therein, in areas where any programs or activities are carried out pursuant to this section are engaged in, through disclosure of information, public participation, and consultation, the design, implementation, monitoring, and evaluation of such programs and activities. (2)

Consultation and disclosure

For each country receiving assistance under this section, the Administrator of USAID shall establish a process for consultation with, and disclosure of information to, local, national, and international stakeholders regarding any programs and activities carried out pursuant to this section. (c)

Coordination

(1)

Alignment of activities

Subject to the direction of the President and the Secretary of State, the Administrator of USAID shall, to the extent practicable, seek to align activities under this section with broader development, poverty alleviation, or natural resource management objectives and initiatives in the recipient country. (2)

Coordination of activities

The Administrator of USAID shall ensure that there is coordination among the activities under this section, subtitle D of this title, and part E of title VII of the Clean Air Act, in order to maximize the effectiveness of United States assistance to developing countries. (d)

Reporting

(1)

Initial report

Not later than 180 days after the date of enactment of this part, the Administrator of USAID, in consultation with the Secretary of State, shall submit to the President and the appropriate congressional committees an initial report that— (A)based on the most recent information available from reliable public sources or knowledge obtained by USAID on a reliable basis, as determined by the Administrator of USAID, identifies the developing countries, including the most vulnerable communities and populations therein, that are most vulnerable to climate change impacts and in which assistance may have the greatest and most sustainable benefit in reducing vulnerability to climate change; and (B)describes the process and methodology for selecting the recipients of assistance under subsection (a)(1). (2)

Annual reports

Not later than 18 months after the date on which the initial report is submitted pursuant to paragraph (1), and annually thereafter, the Administrator of USAID, in consultation with the Secretary of State, shall submit to the President and the appropriate congressional committees a report that— (A)describes the extent to which global climate change, through its potential negative impacts on sensitive populations and natural resources in the most vulnerable developing countries, may threaten, cause, or exacerbate political, economic, environmental, cultural, or social instability or international conflict in those regions; (B)describes the ramifications of any potentially destabilizing impacts climate change may have on the national security, foreign policy, and economic interests of the United States, including— (i)the creation of environmental migrants and internally displaced peoples; (ii)international or internal armed conflicts over water, food, land, or other resources; (iii)loss of agricultural and other livelihoods, cultural stability, and other causes of increased poverty and economic destabilization; (iv)decline in availability of resources needed for survival, including water; (v)increased impact of natural disasters (including droughts, flooding, and other severe weather events); (vi)increased prevalence or virulence of climate-related diseases; and (vii)intensified urban migration; (C)describes how allowances available under this section were distributed during the previous fiscal year to enhance the national security, foreign policy, and economic interests of the United States and assist in avoiding the economically, politically, environmentally, culturally, and socially destabilizing impacts of climate change in most vulnerable developing countries; (D)identifies and recommends the developing countries, including the most vulnerable communities and populations therein, that are most vulnerable to climate change impacts and in which assistance may have the greatest and most sustainable benefit in reducing vulnerability to climate change, including in the form of deploying technologies, investments, capacity-building activities, and other types of assistance for adaptation to climate change impacts and approaches to reduce greenhouse gases in ways that may also provide community-level resilience to climate change impacts; and (E)describes cooperation undertaken with other nations and international organizations to carry out this part. (e)

Monitoring and evaluation

(1)

In general

The Administrator of USAID shall establish and implement a system to monitor and evaluate the effectiveness and efficiency of assistance provided under this section in order to maximize the long-term sustainable development impact of such assistance, including the extent to which such assistance is meeting the purposes of this part and addressing the adaptation needs of developing countries. (2)

Requirements

In carrying out paragraph (1), the Administrator of USAID shall— (A)in consultation with national governments in recipient countries, establish performance goals for assistance authorized under this section and express such goals in an objective and quantifiable form, to the extent practicable; (B)establish performance indicators to be used in measuring or assessing the achievement of the performance goals described in subparagraph (A), including an evaluation of— (i)the extent to which assistance under this section provided for disclosure of information to, consultation with, and informed participation by local communities; (ii)the extent to which local communities participated in the design, implementation, and evaluation of programs and activities implemented pursuant to this section; and (iii)the impacts of such participation on the goals and objectives of the programs and activities implemented under this section; (C)provide a basis for recommendations for adjustments to assistance authorized under this section to enhance the impact of such assistance; and (D)include, in the annual report to the appropriate congressional committees and other relevant agencies required under subsection (d)(2), findings resulting from the monitoring and evaluation of programs and activities under this section.

Deficit Neutral Budgetary Treatment

496.

Deficit neutrality

(a)

Funds established

Funds established under sections 422, 467, and 480 of this Act are to be treated as separate accounts in the Treasury and shall be known as the Funds. (b)

Availability

Funds appropriated or made available pursuant to sections 422(b), 467(b), and 480(b)(2) are only available for the purposes set forth under this Act. Receipts in the Funds and appropriations therefrom shall not be available and are precluded from obligation for any other purpose. (c)

Estimation of budgetary impact

For the purposes of estimating the revenue and spending effects of this Act; (1)the revenue assumed to be deposited into the Funds established under sections 422, 467, and 480, shall be attributed to this Act; and (2)the authorization or availability of appropriations from the Funds shall be treated as new direct spending and attributed to this Act. (d)

Budgetary treatment

For the purposes of section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985, the Funds, and amounts subsequently appropriated or made available for the purposes for which such Funds were established, shall be deemed to be included on the list of appropriations referenced under section 250(c)(17) of that Act. Such appropriations from each Fund shall not be in excess of the amounts deposited into the respective Fund in the previous year.

<enum>V</enum><header>Agricultural and Forestry Related Offsets</header> <subtitle id="H4E6568A9187947B786991B7D07C183A6"><enum>A</enum><header>Offset Credit Program From Domestic Agricultural and Forestry Sources</header> <section id="H6FA1C15A8CD94E1F93180E46FAB68CA1"><enum>501.</enum><header>Definitions</header> <subsection id="H2A2443DCB29748669BB9ED86C4DAAB1A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In this title:</text> <paragraph display-inline="no-display-inline" id="H3558456BA73A47D09EA42311733E6178"><enum>(1)</enum><header>Additional</header><text display-inline="yes-display-inline">The term <quote>additional</quote>, when used with respect to reductions or avoidance of greenhouse gas emissions, or to sequestration of greenhouse gases, means reductions, avoidance, or sequestration that result in a lower level of net greenhouse gas emissions or atmospheric concentrations than would occur in the absence of an offset project.</text> </paragraph><paragraph id="HABD8DB2753E14B3AA9DF9B54103FFB24"><enum>(2)</enum><header>Additionality</header><text display-inline="yes-display-inline">The term <quote>additionality</quote> means the extent to which reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, are additional.</text> </paragraph><paragraph id="H1EA73C2AB5E446AAA67AD54C9C5424CA"><enum>(3)</enum><header>Administrator</header><text display-inline="yes-display-inline">The term <quote>Administrator</quote> means the Administrator of the Environmental Protection Agency.</text> </paragraph><paragraph id="H50B6CC052D9244E790B719F1F6625A1E"><enum>(4)</enum><header>Advisory Committee</header><text>The term <term>Advisory Committee</term> means the USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee established under section 1245(f) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3845">16 U.S.C. 3845</external-xref>).</text> </paragraph><paragraph display-inline="no-display-inline" id="HD073ABD8FBF4435788BDB7ABDE08CFF4"><enum>(5)</enum><header>Greenhouse gas</header><text>The term <quote>greenhouse gas</quote> means any of the following:</text> <subparagraph id="HC83BC8A931564005B68A546A7EC493EB"><enum>(A)</enum><text>Carbon dioxide.</text> </subparagraph><subparagraph id="HED049649C7504B928CE459C3234DA0D3"><enum>(B)</enum><text>Methane.</text> </subparagraph><subparagraph id="HBE0A8E28DE1645599F699744A7D34E18"><enum>(C)</enum><text>Nitrous oxide.</text> </subparagraph><subparagraph id="H5D516F4699404CA1AEAAF06025306579"><enum>(D)</enum><text>Sulfur hexafluoride.</text> </subparagraph><subparagraph commented="no" id="H116A45400EB8435F94751B93A89CAB2E"><enum>(E)</enum><text>Hydrofluorocarbons from a chemical manufacturing process at an industrial stationary source.</text> </subparagraph><subparagraph id="H3ECD54E33B2540B2AAB8016A18D5C103"><enum>(F)</enum><text>Any perfluorocarbon.</text> </subparagraph><subparagraph id="H24A4EE4B7F4D4833AAF59696F8E01D9E"><enum>(G)</enum><text>Nitrogen trifluoride.</text> </subparagraph><subparagraph id="H734E34680CAD4DF6B1751A5184B1FCFF"><enum>(H)</enum><text>Any other anthropogenic gas designated as a greenhouse gas by the Administrator.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H8626B0FA46EF4C708F46ABC42F546DE0"><enum>(6)</enum><header>Leakage</header><text display-inline="yes-display-inline">The term <quote>leakage</quote> means a significant and quantifiable increase in greenhouse gas emissions, or a significant and quantifiable decrease in sequestration, which is caused by an offset practice and occurs outside the boundaries of the offset practice.</text> </paragraph><paragraph id="HA64DAB24A8304B7E9569E0F4C3B8F525"><enum>(7)</enum><header>Offset credit</header><text display-inline="yes-display-inline">The term <quote>offset credit</quote> means a tradeable compliance instrument that—</text> <subparagraph id="H3C8426A145C54AAA81CDE50696ABA22E"><enum>(A)</enum><text>represents the reduction, avoidance, or sequestration of 1 ton of carbon dioxide equivalent; and</text> </subparagraph><subparagraph id="HF751DCEDE1A74A85AD255EE706AAEFB6"><enum>(B)</enum><text>is issued pursuant to this title.</text> </subparagraph></paragraph><paragraph id="H89DA2B862BD34D708AD7D07608AADCF5"><enum>(8)</enum><header>Offset practice</header><text display-inline="yes-display-inline">The term <term>offset practice</term> means an activity that reduces, avoids, or sequesters greenhouse gas emissions, and for which offset credits may be issued pursuant to this title.</text> </paragraph><paragraph id="HE5F147C8AC044BBB9A6156BDEBCA5319"><enum>(9)</enum><header>Offset producer</header><text display-inline="yes-display-inline">The term <quote>offset producer</quote> means an owner, operator, landlord, tenant, or sharecropper who has or shares responsibility for ensuring that an offset practice is established and maintained during the crediting period for purposes of an offset credit.</text> </paragraph><paragraph id="HC5BA1AD9BDED41E99ABA72EA6DC1BAF7"><enum>(10)</enum><header>Offset project</header><text display-inline="yes-display-inline">The term <quote>offset project</quote> means a practice or set of practices that reduce or avoid greenhouse gas emissions, or sequester greenhouse gases as implemented by an offset producer.</text> </paragraph><paragraph id="H89BD88DEC11A4063BC822905992EF386"><enum>(11)</enum><header>Offset project developer</header><text display-inline="yes-display-inline">The term <quote>offset project developer</quote> means the offset producer or designee of the offset producer.</text> </paragraph><paragraph commented="no" id="H5225440367524FAA8F4517AAF9D7FB1D"><enum>(12)</enum><header>Practice type</header><text display-inline="yes-display-inline">The term <quote>practice type</quote> means a discrete category of offset practices for which the Secretary develops a standardized methodology to accurately estimate the amount of greenhouse gas emissions reduced or avoided or greenhouse gases sequestered.</text> </paragraph><paragraph display-inline="no-display-inline" id="HCD1EA4AA31CF4EE7901CDBF4D87B36D5"><enum>(13)</enum><header>Reversal</header><text display-inline="yes-display-inline">The term <quote>reversal</quote> means an intentional or unintentional loss of sequestered greenhouse gases to the atmosphere.</text> </paragraph><paragraph id="H378C65F8FFA948148B625CED1E74F9C9"><enum>(14)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Agriculture.</text> </paragraph><paragraph id="H29F099661FFF475E9AAA66487B709344"><enum>(15)</enum><header>Sequestration and sequestered</header><text display-inline="yes-display-inline">The terms <quote>sequestered</quote> and <quote>sequestration</quote> mean the separation, isolation, or removal of greenhouse gases from the atmosphere, as determined by the Secretary. The terms include biological sequestration, but do not include ocean fertilization techniques.</text> </paragraph><paragraph commented="no" id="H64FDEC8A22B449B4BDC5EA276D03EE48"><enum>(16)</enum><header>Term offset credit</header><text display-inline="yes-display-inline">The term <quote>term offset credit</quote> means a compliance instrument authorized under section 504(d).</text> </paragraph></subsection><subsection id="HD7E95AB1A7B049F58CBA92C15E1A0358"><enum>(b)</enum><header>Agricultural and forestry exception to definition of capped sector</header><text display-inline="yes-display-inline">For purposes of this title and title III of this Act, and amendments made by such titles, the term <quote>capped sector</quote> means a sector of economic activity that directly emits capped emissions, including the industrial sector, the electricity generation sector, the transportation sector, and the residential and commercial sectors (to the extent they burn oil or natural gas), but not including the agricultural or forestry sectors.</text> </subsection></section><section id="HD1FCE88D9ABF450EA118B860D108C1CA"><enum>502.</enum><header>Establishment of offset credit program from domestic agricultural and forestry sources</header> <subsection id="H7B446D8F8777435C8D821F1A87A32E5C"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this title, the Secretary shall establish a program governing the generation of offset credits from domestic agricultural and forestry sources.</text> </subsection><subsection id="H43301945BD0E4157B534F09A7B8FA822"><enum>(b)</enum><header>Requirements</header><text display-inline="yes-display-inline">The program described in subsection (a) shall—</text> <paragraph id="H7E00F0AC627C495DA78234A53D0632C2"><enum>(1)</enum><text>ensure that offset credits represent verifiable and additional greenhouse gas emission reductions or avoidance, or increases in sequestration; and</text> </paragraph><paragraph id="HDED58F0882874B569BE876251864C0EB"><enum>(2)</enum><text>ensure that offset credits issued for sequestration offset projects are only issued for greenhouse gas reductions that result in a permanent net reduction in atmospheric greenhouse gases.</text> </paragraph></subsection><subsection id="HACF4AD30042F4809867E11204F9CCB85"><enum>(c)</enum><header>Duties of secretary</header><text display-inline="yes-display-inline">In addition to the duties described in subsection (a) and section 1245 of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3845">16 U.S.C. 3845</external-xref>), the Secretary shall, with respect to practices relating to offset credits from agricultural and forestry sources—</text> <paragraph id="HBCF90922EE1943C0A6ADEA158BE125C5"><enum>(1)</enum><text display-inline="yes-display-inline">establish by rule methodologies by practice types for quantifying greenhouse gas benefits;</text> </paragraph><paragraph id="H83FBCE131AC24EEFA4A16C09F4CCC47D"><enum>(2)</enum><text display-inline="yes-display-inline">establish by rule methodologies for each practice type for establishing activity baselines and determining additionality;</text> </paragraph><paragraph id="H1D010A623F8B4B9AB5CAC7BAE47F7536"><enum>(3)</enum><text display-inline="yes-display-inline">establish by rule methodologies by practice types for accounting for and mitigating potential leakage;</text> </paragraph><paragraph id="H5241BD8AC9154AC3922F2B484A8183E6"><enum>(4)</enum><text display-inline="yes-display-inline">establish rules to account for and address reversals;</text> </paragraph><paragraph id="HFD61BD9E081E46B7927199EB68155142"><enum>(5)</enum><text>establish rules to require third-party verification;</text> </paragraph><paragraph id="H8F2436CBABD54BF0BF09E715D0B037BE"><enum>(6)</enum><text display-inline="yes-display-inline">provide technical assistance to offset project developers using funds appropriated to the Conservation Operations account;</text> </paragraph><paragraph id="HE8418F7DB4FE4D05BEA6F96303D4DBBB"><enum>(7)</enum><text display-inline="yes-display-inline">establish rules for approval of offset project plans;</text> </paragraph><paragraph id="H36F3D808402C4E19BCFDFFE83E8F489C"><enum>(8)</enum><text display-inline="yes-display-inline">establish rules for certification of implementation of offset project plans;</text> </paragraph><paragraph id="HEC151985F9E8469DAB79B109AAC7DE59"><enum>(9)</enum><text display-inline="yes-display-inline">establish by rule requirements for reporting and record keeping; and</text> </paragraph><paragraph id="HA0C88801639D46EEB35F4DA55D398075"><enum>(10)</enum><text>conduct audits.</text> </paragraph></subsection></section><section id="HFEDE8FDC6B4B4F70B834396624DE8C74"><enum>503.</enum><header>List of eligible domestic agricultural and forestry offset practice types</header> <subsection id="HB5792718CCB64AC1971F92A38B8A3FBA"><enum>(a)</enum><header>List required</header> <paragraph id="HDF699489A43E44AC822EE28370290F08"><enum>(1)</enum><header>Preparation and publication</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this title, the Secretary shall prepare and publish in the Federal Register a list of domestic agricultural and forestry practice types that are eligible to generate offset credits under this title because the practices avoid or reduce greenhouse gas emissions or sequester greenhouse gases.</text> </paragraph><paragraph id="H250B162B019741A5A7C1F6C91CC427CB"><enum>(2)</enum><header>Recommendations</header><text>In preparing the list under paragraph (1), the Secretary shall take into consideration the recommendations of the Advisory Committee.</text> </paragraph></subsection><subsection id="HEA10E8401B274D26A3F225A53E914DE4"><enum>(b)</enum><header>Initial list</header><text display-inline="yes-display-inline">At a minimum, the list prepared under this section shall include those practices that avoid or reduce greenhouse gas emissions or sequester greenhouse gases, such as—</text> <paragraph id="HADA97553D09243D8A38773FBBDEDAAC9"><enum>(1)</enum><text>agricultural, grassland, and rangeland sequestration and management practices, including—</text> <subparagraph id="HCED7AD0472614B31B9DC3F729314539B"><enum>(A)</enum><text>altered tillage practices;</text> </subparagraph><subparagraph id="HEB26DD52B1BD438BBDF388DB30792E4A"><enum>(B)</enum><text>winter cover cropping, continuous cropping, and other means to increase biomass returned to soil in lieu of planting followed by fallowing;</text> </subparagraph><subparagraph id="HA7E0B5DE30234276AACDF417D6EC06F3"><enum>(C)</enum><text>reduction of nitrogen fertilizer use or increase in nitrogen use efficiency;</text> </subparagraph><subparagraph id="H1906E4E18CD14196BD0A9A5E00727022"><enum>(D)</enum><text>reduction in the frequency and duration of flooding of rice paddies;</text> </subparagraph><subparagraph id="H0B4F33F4810C43E38366156B2B8B9091"><enum>(E)</enum><text>reduction in carbon emissions from organic soils;</text> </subparagraph><subparagraph id="H8C6A6C32F29F482A9C22D758A0210474"><enum>(F)</enum><text>reduction in greenhouse gas emissions from manure and effluent; and</text> </subparagraph><subparagraph id="HA5C6ED855AEE4B6D996653AF132EF5C8"><enum>(G)</enum><text>reduction in greenhouse gas emissions due to changes in animal management practices, including dietary modifications;</text> </subparagraph></paragraph><paragraph id="HBA98F715085E4D6CB22D3DBD2943C90E"><enum>(2)</enum><text>changes in carbon stocks attributed to land use change and forestry activities, including—</text> <subparagraph id="H5297A8347BBB4667AE5B1BD5D6128F16"><enum>(A)</enum><text>afforestation or reforestation of acreage that is not forested;</text> </subparagraph><subparagraph id="H0C7E3CF1E1C14AC8B814D20FCC9ED41A"><enum>(B)</enum><text>forest management resulting in an increase in forest carbon stores including but not limited to harvested wood products;</text> </subparagraph><subparagraph id="H2BA375B831724F9CA45AA8B622017C18"><enum>(C)</enum><text>management of peatland or wetland;</text> </subparagraph><subparagraph id="H9399396E39F74E7C808E1D972ECF6175"><enum>(D)</enum><text>conservation of grassland and forested land;</text> </subparagraph><subparagraph id="HE8B815A04BE949F4A4D51AB2756A7FA4"><enum>(E)</enum><text>improved forest management, including accounting for carbon stored in wood products;</text> </subparagraph><subparagraph id="HEE0D78BC40AF4961906CE0B93CB53013"><enum>(F)</enum><text>reduced deforestation or avoided forest conversion;</text> </subparagraph><subparagraph id="HD732A23AA5EA42C5B0D45CAC6B0A0BE2"><enum>(G)</enum><text>urban tree-planting and maintenance;</text> </subparagraph><subparagraph id="H87D469FB352B4C1497BA87FF2DE2C869"><enum>(H)</enum><text>agroforestry; and</text> </subparagraph><subparagraph id="H8545150605A1417AB3B82F380A47FEF7"><enum>(I)</enum><text>adaptation of plant traits or new technologies that increase sequestration by forests; and</text> </subparagraph></paragraph><paragraph id="H90B8B27B93DD476BAFD9A6B16C29F3BF"><enum>(3)</enum><text>manure management and disposal, including—</text> <subparagraph id="H774E8F203B3B4DC4943CB5524273C1E3"><enum>(A)</enum><text>waste aeration;</text> </subparagraph><subparagraph id="HB865D156C71A49209200A2C889733E7D"><enum>(B)</enum><text>biogas capture and combustion; and</text> </subparagraph><subparagraph id="HE48894C205E94661B49190570A1C6F85"><enum>(C)</enum><text display-inline="yes-display-inline">application to fields as a substitute for commercial fertilizer.</text> </subparagraph></paragraph></subsection><subsection id="H44643FDB333346A29608A9E76E02DF08"><enum>(c)</enum><header>Additions and revisions to list</header> <paragraph id="HF7CE2076D0E4491D97B37178CF8E179A"><enum>(1)</enum><header>Periodic revision</header><text display-inline="yes-display-inline">Not later than 2 years after the date of enactment of this title, and every 2 years thereafter, the Secretary, after public notice and opportunity for comment, shall add to and revise the types of offset practices to the list established under subsection (a) if those types of practices meet the standards for environmental integrity that are consistent with the purposes of this title.</text> </paragraph><paragraph id="H0EFA1E7253594B4C9DCC0FDF32DF1D61"><enum>(2)</enum><header>Consideration of petitions</header><text>The Secretary shall—</text> <subparagraph id="H4BCA079CC8DF41369CA1EBEBB9A29FCC"><enum>(A)</enum><text display-inline="yes-display-inline">consider petitions to add types of offset practices to the list established under subsection (a); and</text> </subparagraph><subparagraph id="H88BC0566E45943329FCD25C669D23399"><enum>(B)</enum><text display-inline="yes-display-inline">add those types of offset practices to the list if the types of offset practices meet standards for environmental integrity consistent with the purposes of this title.</text> </subparagraph></paragraph><paragraph id="H11E2C60F7ACF4C4DAA2A125164E7ED1D"><enum>(3)</enum><header>Time for consideration of petitions</header><text display-inline="yes-display-inline">Not later than 1 year after the receipt of a petition under paragraph (2), the Secretary shall make a decision to either grant or deny the petition and publish a written explanation of the reasons for the Secretary’s decision. The Secretary may not deny a petition under this subsection on the basis of inadequate Department of Agriculture resources at the time of the review.</text> </paragraph></subsection></section><section id="H169619CF7E3B4637BEE349420F209A17"><enum>504.</enum><header>Requirements for domestic agricultural and forestry practices</header> <subsection id="H95107F43E0F846F9A02D1F1FD575D605"><enum>(a)</enum><header>Methodologies</header> <paragraph id="H432DF808C6D7421291247C8EB9495964"><enum>(1)</enum><header>In general; condition</header><text display-inline="yes-display-inline">In promulgating regulations under section 502, the Secretary shall establish methodologies for domestic agricultural and forestry practices listed under section 503, if the Secretary determines that methodologies can be established for such practices that meet each of the requirements of this section. The Secretary shall only issue offset credits under this title pursuant to promulgated methodologies applicable to the offset practice that avoided or reduced greenhouse gas emissions or sequestered greenhouse gases.</text> </paragraph><paragraph id="H47C81DF8DF6B497AAF43F4183FC3990F"><enum>(2)</enum><header>Specified methodologies</header><text display-inline="yes-display-inline">The Secretary shall establish the following methodologies under this section:</text> <subparagraph id="H9B95F72F5EC14B519D78FEF0C2AE1185"><enum>(A)</enum><header>Activity baselines</header><text display-inline="yes-display-inline">A standardized methodology for establishing activity baselines for an offset practice of that type. The Secretary shall set activity baselines to reflect a conservative estimate of performance or activities for the relevant type of practice (excluding changes in performance or activities due to the availability of offset credits) such that the baseline provides an adequate margin of safety to ensure the environmental integrity of offset credits calculated in reference to such baseline.</text> </subparagraph><subparagraph id="H48F5CE98D68B4ACE8FE04873CE4B48A5"><enum>(B)</enum><header>Additionality</header><text display-inline="yes-display-inline">A standardized methodology for determining the additionality of greenhouse gas emissions reduction or avoidance, or greenhouse gas sequestration, achieved by an offset practice of that type. Such methodology shall ensure, at a minimum, that any greenhouse gas emission reduction or avoidance, or any greenhouse gas sequestration, is considered additional only to the extent that it results from activities that—</text> <clause commented="no" id="H987243AA2F284539A56261B9B3C82A20"><enum>(i)</enum><text>are not required by existing government regulations, as determined by the Secretary;</text> </clause><clause id="HFC482C25213846B183EC0FD3A5D3375A"><enum>(ii)</enum><text>were not commenced prior to January 1, 2009, except in the case of—</text> <subclause id="H7242E6E4CE1941289B67FDE3E6A5E883"><enum>(I)</enum><text>offset project activities that commenced after January 1, 2001, and were registered as of the date of enactment of this title under an offset program with respect to which an affirmative determination has been made under section 740 of the Clean Air Act; or</text> </subclause><subclause id="H91D1684DFCF34EBEA157185788A3279B"><enum>(II)</enum><text>activities that are readily reversible, with respect to which the Secretary may set an alternative earlier date under this subparagraph that is not earlier than January 1, 2001, where the Secretary determines that setting such an alternative date may produce an environmental benefit by removing an incentive to cease and then reinitiate activities that began prior to January 1, 2009; and</text> </subclause></clause><clause id="HAE6F0D7D4142488582491C8A4A25A808"><enum>(iii)</enum><text>exceed the applicable activity baseline established under paragraph (2).</text> </clause></subparagraph><subparagraph id="H47F87C89A0EA4FEDB5B8333823108B6D"><enum>(C)</enum><header>Quantification methods</header><text display-inline="yes-display-inline">A standardized methodology for determining the extent to which greenhouse gas emission reductions or avoidance, or greenhouse gas sequestration, achieved by an offset practice of that type exceeded a relevant activity baseline, including methods for monitoring and accounting for uncertainty.</text> </subparagraph><subparagraph id="H094BA123895A4C41A95C3B0D7B00BE17"><enum>(D)</enum><header>Leakage</header><text display-inline="yes-display-inline">A standardized methodology for accounting for and mitigating potential leakage, if any, from an offset practice of that type, taking uncertainty into account, excluding international indirect land use changes unless a positive determination is made under section 211(o)(13)(C)(iii) of the Clean Air Act.</text> </subparagraph></paragraph></subsection><subsection id="HDA397D15A2DC4C2B98128AB8946AC5C0"><enum>(b)</enum><header>Special considerations</header> <paragraph id="H50914290B706435FA4A398FD5094917D"><enum>(1)</enum><header>Existing offset practices</header><text>In establishing the methodologies under subsection (a), the Secretary shall give due consideration to methodologies for offset practices existing as of the date of the enactment of this title.</text> </paragraph><paragraph id="H59E08DFC9EEB4B19961862833B147455"><enum>(2)</enum><header>Certain factors</header><text>As part of the methodologies established under subsection (a), the Secretary shall establish a formula that takes into account the components of the practice, the characteristics of the land on which the practice is applied, the crop produced, and such other factors as determined appropriate by the Secretary.</text> </paragraph></subsection><subsection id="H9D11903A39CE413087B269E7F36E243B"><enum>(c)</enum><header>Accounting for reversals</header> <paragraph id="H71EE351A666240E2A62A2EDC98C60D0A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in subsection (d) with respect to issuance of a term offset credit, for each type of practice listed under section 503, the Secretary shall establish requirements to account for and address reversals, including—</text> <subparagraph id="H78FEBDA4CE674BF992BE09715EF665F1"><enum>(A)</enum><text>a requirement to report any reversal with respect to an offset practice for which offset credits have been issued under this title;</text> </subparagraph><subparagraph id="HF5E67616150E495DAB55001473E706F8"><enum>(B)</enum><text display-inline="yes-display-inline">provisions to require emission allowances or offset credits to be held in amounts to fully compensate for greenhouse gas emissions attributable to reversals, and to assign responsibility for holding such emission allowances; and</text> </subparagraph><subparagraph id="H35FB8074417D48E38EC77AEF3985AF07"><enum>(C)</enum><text>any other provisions that the Secretary determines to be necessary to account for and address reversals.</text> </subparagraph></paragraph><paragraph id="H2B29E6E10D3C42EBA3FDCF381B17E3CE"><enum>(2)</enum><header>Mechanisms</header> <subparagraph id="H07D9992184CE48E395A0444E8C41D087"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall prescribe mechanisms to ensure that any sequestration of greenhouse gases, with respect to which an offset credit is issued under this title, results in a permanent net increase in sequestration of greenhouse gases, and that full account is taken of any actual or potential reversal of such sequestration, with an adequate margin of safety.</text> </subparagraph><subparagraph id="HEF1C0ED4987542B08C56DFF7D125F7C8"><enum>(B)</enum><header>Specific mechanisms</header><text display-inline="yes-display-inline">The Secretary shall make available one or more of the following mechanisms to meet the requirements of this paragraph:</text> <clause commented="no" id="HE85B7FC30E0E43FAB3BCACAF1AAAEDC5"><enum>(i)</enum><text>An offsets reserve, pursuant to paragraph (3).</text> </clause><clause commented="no" id="HD55912D7F01947B98AF877D6CFD5D169"><enum>(ii)</enum><text display-inline="yes-display-inline">Insurance that provides for purchase and provision to the Secretary for retirement of a quantity of offset credits or emission allowances equal in number to the tons of carbon dioxide equivalents of greenhouse gas emissions released due to reversal.</text> </clause><clause id="H9AA12754B3874D9187A935BD14B16FD6"><enum>(iii)</enum><text>Another mechanism if the Secretary determines it is necessary to satisfy the requirements of this title, taking into account whether the reversal was intentional or unintentional.</text> </clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H2C27129878FB4F11B68B8837DD061D75"><enum>(3)</enum><header>Offsets reserve</header> <subparagraph id="HFC068F46C0794ABA8186CD68EE55005A"><enum>(A)</enum><header>In general</header><text>An offsets reserve referred to in paragraph (2)(B)(i) is a program under which, before issuance of offset credits under this title, the Secretary shall—</text> <clause id="HC3D06788067E455A9ADB9E1C366D8B76"><enum>(i)</enum><text>subtract and reserve from the quantity to be issued a quantity of offset credits based on the risk of reversal;</text> </clause><clause id="HBF60C65F46D44149973880EACE164D26"><enum>(ii)</enum><text>hold those reserved offset credits in the offsets reserve; and</text> </clause><clause id="H52F8C7FA0B1B4CC7B17C9003FFDBEFFF"><enum>(iii)</enum><text>register the holding of the reserved offset credits in an offset registry.</text> </clause></subparagraph><subparagraph id="H2C8B02503C6343C7ADE6FA8948E97A7F"><enum>(B)</enum><header>Practice reversal</header> <clause id="H3B1FA1C2A2C042FC9699665928D6CEED"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">If a reversal has occurred with respect to an offset practice within an offset project, for which offset credits are reserved under this paragraph, the Secretary shall retire offset credits from the offsets reserve to fully account for the tons of carbon dioxide equivalent that are no longer sequestered.</text> </clause><clause id="HB8BBC78D94B045F5A24838B6F7D9E6F4"><enum>(ii)</enum><header>Intentional reversals</header><text display-inline="yes-display-inline">If the Secretary determines that a reversal was intentional, the offset practice developer for the relevant offset practice shall place into the offsets reserve a quantity of offset credits, or combination of offset credits and emission allowances, equal in number to the number of reserve offset credits that were retired pursuant to clause (i).</text> </clause><clause id="H9B9DE8EC340C4246840FA1DC1676BA38"><enum>(iii)</enum><header>Unintentional reversals</header><text display-inline="yes-display-inline">If the Secretary determines that a reversal was unintentional, the offset project developer for the relevant offset project shall place into the offsets reserve a quantity of offset credits, or combination of offset credits and emission allowances, equal in number to half the number of offset credits that were reserved for that offset project, or half the number of reserve offset credits that were canceled due to the reversal pursuant to clause (i), whichever is less, except that the Secretary may lower this amount based on undue hardship in the event of a catastrophic occurrence.</text> </clause></subparagraph><subparagraph id="HF926FB94020A4C28A8213921F668F9E7"><enum>(C)</enum><header>Use of reserved offset credits</header><text display-inline="yes-display-inline">Offset credits placed into the offsets reserve under this paragraph may not be used to comply with section 722 of the Clean Air Act.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H2E94E0B726AC4C41B9DE7F6638A91AD0"><enum>(d)</enum><header>Term Offset Credits</header> <paragraph commented="no" id="HFC02D1F7FB794030A8D55C6147BDD0D9"><enum>(1)</enum><header>Applicability</header><text display-inline="yes-display-inline">With respect to a practice listed under section 503 that sequesters greenhouse gases and has a crediting period of no more than 5 years, the Secretary may address reversals pursuant to this subsection in lieu of permanently accounting for reversals pursuant to subsection (c).</text> </paragraph><paragraph commented="no" id="H2007B67DA3954B658746392A4F9447A5"><enum>(2)</enum><header>Accounting for reversals</header><text>For such practices or projects implementing such practices, the Secretary shall require only reversals that occur during the crediting period to be accounted for and addressed pursuant to subsection (c).</text> </paragraph><paragraph commented="no" id="H761C410B44F84EE28D98A796C6DB0ECF"><enum>(3)</enum><header>Credits issued</header><text>For practices or projects regulated pursuant to paragraph (2), the Secretary shall issue under section 507 a term offset credit, in lieu of an offset credit, for each ton of carbon dioxide equivalent that has been sequestered.</text> </paragraph></subsection><subsection commented="no" id="HA0F06CB9892B4039AEB38C6C7D32BE54"><enum>(e)</enum><header>Crediting periods</header> <paragraph commented="no" id="H82C78FB1EE7D4454A263E1741381312B"><enum>(1)</enum><header>In general</header><text>For each offset practice type within an offset project, the Secretary shall specify a crediting period, and establish provisions for reenrollment for a subsequent crediting period, in accordance with this subsection.</text> </paragraph><paragraph commented="no" id="HE534CD2599C04D1292C10485732B6B7C"><enum>(2)</enum><header>Duration</header><text>The crediting period shall have a term of up to—</text> <subparagraph id="HAB9914A886464D41939AEB92F43357FF"><enum>(A)</enum><text display-inline="yes-display-inline">5 years for agricultural sequestration practices;</text> </subparagraph><subparagraph id="H4CE7D6461FF8434F93C35934140D8F79"><enum>(B)</enum><text>20 years for forestry sequestration practices; and</text> </subparagraph><subparagraph id="H1FE4638F25A74C358576B4B4CB7EA0C6"><enum>(C)</enum><text display-inline="yes-display-inline">10 years for other practice types that reduce or avoid greenhouse gas emissions or sequester greenhouse gases.</text> </subparagraph></paragraph><paragraph commented="no" id="H95933B804AAC40F78C38645E4E5E17D6"><enum>(3)</enum><header>Eligibility</header><text display-inline="yes-display-inline">An offset practice, within an offset project, shall—</text> <subparagraph id="H69C30DB9381C4271B7F7BA4257D2E054"><enum>(A)</enum><text display-inline="yes-display-inline">be eligible to generate offset credits under this title only during the crediting period of the offset practice; and</text> </subparagraph><subparagraph id="HFA686C469E0440EE8307E8B526ABB06D"><enum>(B)</enum><text>remain eligible to generate offset credits, only during the crediting period, subject to the methodologies and practice type eligibility list that applied as of the date of the project approval.</text> </subparagraph></paragraph><paragraph commented="no" id="H88F6A1B1A78640C5BD6DA0227BC56427"><enum>(4)</enum><header>Reenrollment for subsequent crediting period</header> <subparagraph commented="no" id="HB88276ED36BB4943B83B5ED74202E22D"><enum>(A)</enum><header>Reenrollment authorized; time for reenrollment</header><text display-inline="yes-display-inline">An offset project developer may reenroll for a subsequent crediting period, to commence after termination of the current crediting period, subject to the methodologies and practice type eligibility list in effect at the time of reenrollment. Reenrollment may not occur more than 18 months before the end of the crediting period then in effect.</text> </subparagraph><subparagraph commented="no" id="H2F7F4E25BF69474C8E9AFF0756872912"><enum>(B)</enum><header>Limitation</header><text>The Secretary may limit the number of subsequent crediting periods available for a particular practice type.</text> </subparagraph></paragraph></subsection><subsection id="H52694627925943C8BF043010C901B811"><enum>(f)</enum><header>Environmental integrity</header><text display-inline="yes-display-inline">In establishing the requirements under this section, the Secretary shall apply conservative assumptions or methods to ensure the environmental integrity of the cap established under section 703 of the Clean Air Act is not compromised.</text> </subsection></section><section id="H439BB50C649149248078D23D6CFC3660"><enum>505.</enum><header>Project plan submission and approval</header> <subsection id="H81E9C4F2437645FAA48526EC5F3D8E47"><enum>(a)</enum><header>Project plan required</header><text>An offset project developer shall submit to the Secretary an offset project plan for approval.</text> </subsection><subsection id="HE37FC376D1F54FE3A1D14D4977B63CD7"><enum>(b)</enum><header>Requirements</header><text>As part of the regulations promulgated under this title, the Secretary shall include provisions for, and shall specify, the required components of an offset project plan, including—</text> <paragraph id="HA62A53A386864030AA4419BB0875607B"><enum>(1)</enum><text>designation of an offset project developer;</text> </paragraph><paragraph id="H23D9D8D9F68248D184283FAF75CE8769"><enum>(2)</enum><text display-inline="yes-display-inline">a list and schedule of the practices to be implemented;</text> </paragraph><paragraph id="HBE3246632A3C4D64A1C97CB34343082D"><enum>(3)</enum><text>any other information that the Secretary considers to be necessary—</text> <subparagraph id="HEB425C5D60EE45D1A2712ED68BFE65B8"><enum>(A)</enum><text>to determine whether the offset practice, within the offset project, is eligible for issuance of offset credits under regulations promulgated under this title; and</text> </subparagraph><subparagraph id="HF807FB9C76B145C7A7DD5B503A6A2281"><enum>(B)</enum><text>to achieve the purposes of this title.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H98C120C995EA4B9481B4974C313053D6"><enum>(c)</enum><header>Time for consideration; notification</header><text>Not later than 90 days after receiving a complete offset project plan under subsection (a), the Secretary shall—</text> <paragraph commented="no" id="HA0BC7E2450FC4EE0BE01D6A965A0ACB3"><enum>(1)</enum><text display-inline="yes-display-inline">approve the plan in writing and include an estimate of the offset project credits that will be earned if the plan is implemented, subject to verification of all project-specific variables; or</text> </paragraph><paragraph commented="no" id="HA6C50B99CDD34BAA97D20E968C65EE47"><enum>(2)</enum><text>if the plan is denied, provide the reasons for denial in writing.</text> </paragraph></subsection><subsection commented="no" id="H0FF3FE404C2142A78588752EC19AA1AF"><enum>(d)</enum><header>Appeal</header><text>The Secretary shall establish procedures for appeal and review of determinations made under this section.</text> </subsection><subsection commented="no" id="H48210129060D4A2BBC4CA348F4E359F1"><enum>(e)</enum><header>Resubmission</header><text>After an offset project plan is approved, the offset project developer shall not be required to resubmit a project plan during the crediting period.</text> </subsection></section><section id="H13BFAF915A7F4CEA8824CB219474D865"><enum>506.</enum><header>Verification of offset practices</header> <subsection id="H95F89B64DAAA4EF1AEA195307196177E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">As part of the regulations promulgated under this title, the Secretary shall establish requirements to verify—</text> <paragraph id="HA2E2EA446398499185FC5439396A90A2"><enum>(1)</enum><text>that offset practices in an approved offset project plan have been implemented; and</text> </paragraph><paragraph id="HA1AEEC4672174741B4541971A5C7FBB8"><enum>(2)</enum><text display-inline="yes-display-inline">the quantity of greenhouse gas emission reductions or avoidance, or sequestration of greenhouse gases, resulting from an offset practice and project.</text> </paragraph></subsection><subsection id="HA4C263DB7AE34D25A2E3C59115A34A1B"><enum>(b)</enum><header>Verification reports</header> <paragraph id="HC9D5BC1046684658B69452F0BC5F3DEC"><enum>(1)</enum><header>In general</header><text>The regulations described in subsection (a) shall require an offset project developer to submit a report, prepared by a third-party verifier accredited under subsection (c).</text> </paragraph><paragraph id="H1B89D414DF764521B02C27DD9610D365"><enum>(2)</enum><header>Requirements</header><text>The Secretary shall specify the components of a verification report required under paragraph (1), including—</text> <subparagraph id="H6CBB29DA7221457483C2319692F9EF3B"><enum>(A)</enum><text>the name and contact information for the offset project developer;</text> </subparagraph><subparagraph id="HFBE616D3C45E48BF910BD141D633DC5A"><enum>(B)</enum><text>a certification that the project plan has been implemented;</text> </subparagraph><subparagraph id="H2D6664380C2643CF8C104EF8F78180C9"><enum>(C)</enum><text display-inline="yes-display-inline">the quantity of greenhouse gases reduced, avoided, or sequestered;</text> </subparagraph><subparagraph id="H238C694345274D9FA8209D74B54A6BA1"><enum>(D)</enum><text>a certification establishing that the conflict of interest requirements in the regulations promulgated under this title have been complied with;</text> </subparagraph><subparagraph id="H5E945BD10AD74EEF9D51B72B850866EA"><enum>(E)</enum><text display-inline="yes-display-inline">any other information that the Secretary requires to determine the quantity of greenhouse gas emission reduction or avoidance, or sequestration of greenhouse gases, resulting from the offset practice and project; and</text> </subparagraph><subparagraph id="H7EACDB1DCFDA41FAA693B360C985C8AD"><enum>(F)</enum><text>any other information that the Secretary considers to be necessary to achieve the purposes of this title.</text> </subparagraph></paragraph></subsection><subsection id="HD901999EE7224339AD8F8B6C74827E2B"><enum>(c)</enum><header>Verifier accreditation</header> <paragraph id="HBF9445CDE28C45E6A15D76CBB6F4F49D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">As part of the regulations promulgated under this title, the Secretary shall establish a process and requirements for periodic accreditation of third-party verifiers for offset credits under this program to ensure that those verifiers are professionally qualified and have no conflicts of interest.</text> </paragraph><paragraph id="H25E0DA1BB9A64B659184396E1F993C06"><enum>(2)</enum><header>Public accessibility</header><text>Each verifier meeting the requirements for accreditation in accordance with this subsection shall be listed in a publicly accessible database, which shall be maintained and updated by the Secretary.</text> </paragraph></subsection></section><section id="HEEF5EBC28BB246D48377B4311276B4F5"><enum>507.</enum><header>Certification of offset credits</header> <subsection id="H49309432276946AF89E1D3C47719ECFE"><enum>(a)</enum><header>Determination and notification</header><text>Not later than 90 days after receiving a complete verification report, the Secretary shall—</text> <paragraph id="H4DCE03EAE70D437686657720FEA9D6F5"><enum>(1)</enum><text display-inline="yes-display-inline">make a determination of the quantity of greenhouse gas emissions that have been reduced or avoided, or greenhouse gases that have been sequestered, by the offset practice in an approved and verified offset project plan; and</text> </paragraph><paragraph id="HFA6F1987D48C4FC7B263C9B8E68725E0"><enum>(2)</enum><text>notify the offset project developer in writing of the determination.</text> </paragraph></subsection><subsection commented="no" id="H2B5BB5DEC0A24130A052A1E476DD8C35"><enum>(b)</enum><header>Issuance of offset credits</header><text display-inline="yes-display-inline">The Secretary shall issue 1 offset credit to an offset project developer for each ton of carbon dioxide equivalent that the Secretary determines has been reduced, avoided, or sequestered during the crediting period. Offset credits may be issued only for greenhouse gas emissions reduced, avoided, or sequestered after January 1, 2009.</text> </subsection><subsection id="H8F4626866CAC46B7A8B3C7EA0CC86AF1"><enum>(c)</enum><header>Appeal</header><text>The Secretary shall establish procedures for appeal and review of determinations made under subsection (a).</text> </subsection><subsection id="H6B4B7F5911E34D6F9E598FF7F4CBB22B"><enum>(d)</enum><header>Timing</header><text>Offset credits meeting the criteria described in subsection (b) shall be issued by the Secretary not later than 14 days after the date on which the Secretary makes a determination under subsection (a).</text> </subsection><subsection id="HF9570744A6224CADBEDC445DD17F46D1"><enum>(e)</enum><header>Registration</header><text display-inline="yes-display-inline">The Secretary shall obtain from the Administrator a unique serial number to allow for the registration of each offset credit to be issued under this title.</text> </subsection></section><section id="H9B307BD35DC34C548599C2ED7DDCE90A"><enum>508.</enum><header>Ownership and transfer of offset credits</header> <subsection id="HEB70C07690CB444BA1EE7590CAB784EC"><enum>(a)</enum><header>Ownership</header><text display-inline="yes-display-inline">Initial ownership of an offset credit shall lie with the offset project developer, unless otherwise specified in a legally binding contract or agreement.</text> </subsection><subsection id="HED7F89B4193243919562C88B19B01235"><enum>(b)</enum><header>Transferability</header><text>An offset credit issued under this title may be sold, traded, or transferred, unless the offset credit has expired or been retired.</text> </subsection></section><section id="H186666C725DA40C1ACD9FB9F486C3B66"><enum>509.</enum><header>Program review and revision</header><text display-inline="no-display-inline">At least once every 5 years, the Secretary shall review and, based on new or updated information and taking into consideration the recommendations of the Advisory Board, update and revise—</text> <paragraph id="HFB951A510D9C4422B3DD3632074C9A99"><enum>(1)</enum><text>the list of eligible practice types established under section 503;</text> </paragraph><paragraph id="H52A135E0ED7A4BC995E6EFD91AEC666E"><enum>(2)</enum><text>the methodologies established, including specific activity baselines, under section 504(a);</text> </paragraph><paragraph id="HC71AFB2294224C13A1D597C521EDD965"><enum>(3)</enum><text>the reversal requirements and mechanisms established or prescribed under subsections (c) and (d) of section 504;</text> </paragraph><paragraph id="HBB314DB0A4E847EE9F535E36E315DAD2"><enum>(4)</enum><text>measures to improve the accountability of the offsets program; and</text> </paragraph><paragraph id="H9C95604246054A4F86432FB4F52F6581"><enum>(5)</enum><text>any other requirements established under this title to ensure the environmental integrity and effective operation of this title.</text> </paragraph></section><section display-inline="no-display-inline" id="HFA677EE5B2EB4545BB52F80A7B491357" section-type="subsequent-section"><enum>510.</enum><header>Environmental considerations</header><text display-inline="no-display-inline">If the Secretary lists forestry practices as eligible offset practice types under section 503, the Secretary, in consultation with appropriate Federal agencies, shall promulgate regulations for the selection and use of species in forestry and other relevant land management-related offset practices—</text> <paragraph id="HCFCA05B50B48433F97EF6A4C5A24506C"><enum>(1)</enum><text>to ensure that native species are given primary consideration in such practices;</text> </paragraph><paragraph id="HA5050419B186464098FE8FDBD41CF6AD"><enum>(2)</enum><text>to encourage the conservation of biological diversity in such practices;</text> </paragraph><paragraph id="H3EC27D20FC054890BCA9E4EEAF8C5078"><enum>(3)</enum><text>to prohibit the use of federally designated or State-designated noxious weeds;</text> </paragraph><paragraph id="HD2BF3D3DA9C34EABBFEE40B7DD269E49"><enum>(4)</enum><text>to prohibit the use of a species listed by a regional or State invasive plant authority within the applicable region or State; and</text> </paragraph><paragraph id="HADA195F1503948A380EEC10A3156AF50"><enum>(5)</enum><text>in accordance with widely accepted, environmentally sustainable forestry practices.</text> </paragraph></section><section display-inline="no-display-inline" id="H719F0F1831234BB4A5A9F233D79BEFA5" section-type="subsequent-section"><enum>511.</enum><header>Audits</header> <subsection id="H66144ACC51274B04925A3B7032D4D5D3"><enum>(a)</enum><header>Audits required</header><text display-inline="yes-display-inline">The Secretary shall conduct, on an annual basis, random audits of offset projects, offset credits, and the practices of third-party verifiers. At a minimum, the Secretary shall conduct audits each year for a representative sample of practice types and geographical areas.</text> </subsection><subsection id="HB061FF9A4154411792CF24EFB34B5C4E"><enum>(b)</enum><header>Additional Authority</header><text>Nothing in this section prevents the Secretary from conducting any audit the Secretary considers to be necessary.</text> </subsection></section></subtitle><subtitle id="HC4491446F7A8435E8944D291B2612D5B"><enum>B</enum><header>USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee</header> <section id="H6BCC2238F4D14FFE868457058D9F6F3D"><enum>531.</enum><header>Establishment of USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee</header><text display-inline="no-display-inline">Section 1245 of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3854">16 U.S.C. 3854</external-xref>), as added by section 2709 of the Food, Conservation, and Energy Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/246">Public Law 110–246</external-xref>; 122 Stat. 1809), is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H835BBED3835D4CC284717D51CFE703A5" style="OLC"> <subsection id="HE1A2B5535DCB4111914CEB575688EADC"><enum>(f)</enum><header>USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee</header> <paragraph id="HAD389989637A4D7ABC38A45B50447F95"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">Not later than 30 days after the date of the enactment of the American Clean Energy and Security Act of 2009, the Secretary shall establish an independent advisory committee, to be known as the <quote>USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee</quote>, to provide scientific and technical advice on establishing, implementing, and ensuring the overall environmental integrity of an offset program for domestic agricultural and forestry practices that reduce or avoid greenhouse gas emissions, or sequester greenhouse gases.</text> </paragraph><paragraph id="HE0D1A76664354EABA68B31BAE58311BB"><enum>(2)</enum><header>Membership</header><text display-inline="yes-display-inline">The Advisory Committee shall be comprised of nine members, including a chairperson and vice-chairperson, appointed by the Secretary. Each member shall be qualified by education, training, and experience to evaluate scientific and technical information for domestic agricultural and forestry offset practices that reduce or avoid greenhouse gas emissions or sequester greenhouse gases.</text> </paragraph><paragraph id="H72A4434FE11A4107A98B40CD6F92A01B"><enum>(3)</enum><header>Terms</header><text>Terms shall be 3 years in length, except for the initial terms, which may be up to 5 years in length to allow staggered terms. Members may be reappointed only once for an additional 3-year term, and such term may follow directly after a first term.</text> </paragraph><paragraph id="H4ADBEB6F11474007A3EFB67712FF9219"><enum>(4)</enum><header>Duties</header><text>The Advisory Committee shall—</text> <subparagraph id="HEB47A23646344BFC880375B04E3893E5"><enum>(A)</enum><text>provide options and recommendations, not later than 180 days after the date of the enactment of the American Clean Energy and Security Act of 2009, to the Secretary regarding the establishment of methodologies as described in section 504 of such Act, taking into account relevant scientific information, including—</text> <clause id="HC551470F2CE64F4192200281DA072EE6"><enum>(i)</enum><text>the availability of representative data for use in developing an activity baseline for a land area, forest, soil, industry sector, and facility type;</text> </clause><clause id="HFDF282F3AF7547B38EA4CA007D31B335"><enum>(ii)</enum><text>the potential for accurate quanitification of greenhouse gas reduction, or sequestration for an offset practice type;</text> </clause><clause id="HED2D946BE4EB45D9880AA34D454A590E"><enum>(iii)</enum><text>the potential level of scientific and measurement uncertainty associated with an offset practice type; and</text> </clause><clause commented="no" id="H40703008867A47258990C07AA0B597C2"><enum>(iv)</enum><text>the use of practice methodologies that account for common practice or other direct comparisons within a relevant land area, industry sector, forest, soil, or facility type;</text> </clause></subparagraph><subparagraph id="HE463156E0FC7480F9726F474B50A2E1E"><enum>(B)</enum><text display-inline="yes-display-inline">make available to the Secretary options and recommendations for the program as a whole and on offset methodologies for each practice type that should be considered under regulations promulgated pursuant to section 504 of the American Clean Energy and Security Act of 2009, including methodologies to address the issues of additionality, activity baselines, measurement, leakage, including the application of sector specific leakage factors, uncertainty, permanence, and environmental integrity;</text> </subparagraph><subparagraph id="H9332B4FC79954A4B893210DD545F660A"><enum>(C)</enum><text>make available to the Secretary advice and comment on areas where further knowledge is required to appraise the adequacy of existing, revised, or proposed methodologies and describe the research efforts necessary to provide the required information;</text> </subparagraph><subparagraph id="HA5FBA14D4F84437AACEB21629D89D172"><enum>(D)</enum><text display-inline="yes-display-inline">make available to the Secretary advice and comments on other ways to improve or safeguard the environmental integrity of the offset practice types listed under section 503 of the American Clean Energy and Security Act of 2009; and</text> </subparagraph><subparagraph id="H3E2249D0C0414242A3524182B8D71996"><enum>(E)</enum><text>provide options and recommendations regarding new practice types.</text> </subparagraph></paragraph><paragraph id="H16F663B5E1994301BC59318165D22476"><enum>(5)</enum><header>Scientific review of offset program</header><text display-inline="yes-display-inline">Not later than January 1, 2017, and at 5-year intervals thereafter, the Advisory Committee shall—</text> <subparagraph id="HDF9F53C1F0484F0A8173755C6F561FFF"><enum>(A)</enum><text display-inline="yes-display-inline">submit to the Secretary and make available to the public an analysis of relevant scientific and technical information regarding agricultural and forestry offset practices that reduce or avoid greenhouse gas emissions or sequester greenhouse gases;</text> </subparagraph><subparagraph id="H305C431F50B5493D9BB2CF9CAD5AF4DD"><enum>(B)</enum><text display-inline="yes-display-inline">review approved and potential practice types, methodologies, scientific studies, offset project monitoring, offset project verification reports, reporting of reversals, audits related to the offset program, and other relevant information needed to evaluate the offset program;</text> </subparagraph><subparagraph id="H5DA5AF2D642E4C7C8DA0B50897EBE55A"><enum>(C)</enum><text display-inline="yes-display-inline">evaluate the net emission effects of implemented offset projects; and</text> </subparagraph><subparagraph id="HFD39342BE9B84D5A90A4ED13B9DDC115"><enum>(D)</enum><text display-inline="yes-display-inline">recommend changes to offset methodologies, procedures, practice types, or the overall program to ensure that—</text> <clause id="H429E3875A7A149C7B11655824623D5B8"><enum>(i)</enum><text>the offset practices result in reduced or avoided greenhouse gas emissions or sequestration of greenhouse gases;</text> </clause><clause id="H347B3EAAEBF74D7AA28E09369169B2C6"><enum>(ii)</enum><text>the offset credits issued by the Secretary do not compromise the integrity of the annual emissions reductions established under section 703 of the Clean Air Act; and</text> </clause><clause id="HCE21F796A7C94830AD287009D87E8E92"><enum>(iii)</enum><text>the offset program avoids or minimizes adverse affects to human health and the environment.</text> </clause></subparagraph></paragraph><paragraph id="H526250236AF0451282C513F524588D90"><enum>(6)</enum><header>Coordination</header><text display-inline="yes-display-inline">To avoid duplication, the Advisory Committee shall coordinate its activities with those of any other Federal advisory committees working in related areas, and shall to the maximum extent possible use research data and services of the research, education, extension agencies of the Department of Agriculture.</text> </paragraph><paragraph id="HAE7FB1E59B9F4EFDB983BA5E1FC5530A"><enum>(7)</enum><header>Consultation</header><text display-inline="yes-display-inline">On a periodic basis, the Advisory Committee shall consult with, and be informed by the views of, the Offsets Integrity Advisory Board established under section 731 of the Clean Air Act.</text> </paragraph><paragraph id="HBF68AD52374D4F9E90E1688CA0B7963F"><enum>(8)</enum><header>Meeting</header><text>The Advisory Committee shall meet on at least a quarterly basis each year.</text> </paragraph><paragraph id="HAF33372B7549441A9FB611DFE33B925E"><enum>(9)</enum><header>Administrative support and funding</header><text>The Secretary may provide such administrative and funding support as necessary to enable the Advisory Committee to carry out its duties under this section.</text> </paragraph><paragraph id="HA176919576484A26A494BEB681A3A703"><enum>(10)</enum><header>Report</header><text>For each fiscal year, the Secretary shall submit to Congress a report on—</text> <subparagraph id="H047C73F524EB490FB6F68918D22BDDE4"><enum>(A)</enum><text>the status and progress on the offset practices;</text> </subparagraph><subparagraph id="HB306788E7C794E9CB9E362ADBE1827E5"><enum>(B)</enum><text>the general status of cooperation and research and development; and</text> </subparagraph><subparagraph id="HD7BE76065BD240A58239E04EEDC5CB6F"><enum>(C)</enum><text>the plans for addressing future issues and concerns.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle><subtitle id="H3F53DDF5C4F14C95971A60F91B180284"><enum>C</enum><header>Miscellaneous </header> <section id="HF6201CEA37464A6891EFFA1A90EDF5C4" section-type="subsequent-section"><enum>551.</enum><header>International indirect land use changes</header><text display-inline="no-display-inline">Section 211(o) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)</external-xref>) is amended by adding at the end the following</text> <quoted-block display-inline="no-display-inline" id="H8148DFA763664805887494A9CCA9DADB" style="OLC"> <paragraph id="H97A0DDF18F584E6B993D49FDF1799F6A"><enum>(13)</enum><header>International indirect land use changes</header> <subparagraph id="H9DA576376AEB43B2A159D1A9F087694D"><enum>(A)</enum><header>Exclusion from regulatory requirements regarding lifecycle greenhouse gas emissions</header><text>Notwithstanding the definition of <quote>lifecycle greenhouse gas emissions</quote> in paragraph (1)(H), for purposes of determining whether the fuel meets a definition in paragraph (1) or complies with paragraph (2)(A)(i), the Administrator shall exclude emissions from indirect land use changes outside the renewable fuel’s feedstock’s country of origin.</text> </subparagraph><subparagraph id="H9E84A1F7B8B04AF08D4AC2715B4E3B26"><enum>(B)</enum><header>National academies of science report</header><clause commented="no" display-inline="yes-display-inline" id="HC9C54F2A349D4DDBAE3627ACBC61EAF8"><enum>(i)</enum><text>Not later than 6 months after the date of enactment of this paragraph, the Administrator and the Secretary of Agriculture shall jointly arrange for the National Academies of Science to review and report on specified issues related to indirect greenhouse gas emissions related to transportation fuels.</text> </clause><clause id="H81E58759DD1F4272971511526980BE7C" indent="up1"><enum>(ii)</enum><text>The report shall evaluate and report on whether there are economic and environmental models and methodologies that individually, or as a system, can project with reliability, predictability, and confidence—</text> <subclause id="H768F1F461F62474E8276B71BF36CFF11"><enum>(I)</enum><text>for purposes of determining whether the fuel meets a definition in paragraph (1) or complies with paragraph (2)(A)(i), indirect land use changes that are related to the production of renewable fuels and that may occur outside the country in which the feedstocks are grown, and the impacts of these changes on greenhouse gas emissions; and</text> </subclause><subclause id="H2881E909F57A4DE887A0D783B91E9B79"><enum>(II)</enum><text>indirect effects, both domestic and international, related to the production and importation of non-renewable transportation fuels that have significant greenhouse gas emissions, and the impact of these effects on greenhouse gas emissions.</text> </subclause></clause><clause id="H3B15CD3577DB4508BCFD162CF28727FE" indent="up1"><enum>(iii)</enum><text>The report shall include a review and assessment of all pertinent scientific studies, methodologies and data, shall evaluate potential methodologies for calculating such emissions (including an evaluation of methods for annualizing emissions associated with forest degradation or land conversion), and shall make appropriate recommendations. The recommendations shall address indirect effects, both domestic and international, related to the production and importation of non-renewable transportation fuels that have significant greenhouse gas emissions. The report shall use appropriate validation procedures, including sensitivity analyses, of how results change as assumptions change. The evaluation shall include for a model, a methodology, or a system of models—</text> <subclause id="H18AFE811AAD64666A209A06265F090C8"><enum>(I)</enum><text>an assessment of how reliably the models, methodologies, or systems track actual outcomes over historical periods using available historical data; and</text> </subclause><subclause id="HC58F631F3A26455985AE7B54AED4F765"><enum>(II)</enum><text>an assessment of how reliably the models, methodologies or systems will project future outcomes.</text> </subclause></clause><clause id="H427BF73840CE42BEAF214B5FA1863572" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">The report shall be publicly available and shall include sufficient information and data such that economists and other scientists with relevant expertise that are not on the National Academies of Science panel can fully evaluate the conclusions of the report.</text> </clause><clause id="H62F66B58E6004CCEAE5068994EE31958" indent="up1"><enum>(v)</enum><text>The report shall be completed within 3 years of the date of enactment of this paragraph.</text> </clause></subparagraph><subparagraph id="H858A2076A41E4C3FA399017B5988767A"><enum>(C)</enum><header>Determination</header><clause commented="no" display-inline="yes-display-inline" id="HEBCDA87AD1AB43F8B96C1743BAE6E812"><enum>(i)</enum><text display-inline="yes-display-inline">The Administrator and the Secretary of Agriculture shall, after notice and an opportunity for public comment, determine whether, for purposes of determining compliance with the percent reductions in lifecycle greenhouse gas emissions specified in paragraph (1) for various renewable fuels, scientifically valid models and methodologies exist to project indirect land use changes that are related to the production of renewable fuels and that occur outside the country in which the feedstocks are grown, and the impact of these changes on greenhouse gas emissions.</text> </clause><clause id="H7F5A68FED1E949B0B9A57C59A9EB47BA" indent="up1"><enum>(ii)</enum><text>The determination shall take into account the findings and recommendations of the report required under subparagraph (B), as well as other available scientific, economic, and other relevant information. The Administrator and the Secretary may also consider methods used by the Environmental Protection Agency, the Department of Agriculture, and other Federal agencies to assess or guide their related policies.</text> </clause><clause id="HE9622155938049B98ECD4ABCC768B16C" indent="up1"><enum>(iii)</enum><text>The Administrator and the Secretary of Agriculture shall publish a proposed determination not later than 4 years after date of enactment of this paragraph, and shall publish a final determination not later than 5 years after date of enactment of this paragraph. An explanation and justification of the determination shall be included in the proposed and final actions, together with a response to comments received.</text> </clause></subparagraph><subparagraph id="HCBCD679B4A314580BBAC2AD31EF545D6"><enum>(D)</enum><header>Response to determination</header><clause commented="no" display-inline="yes-display-inline" id="HF7609CDB0A954C07A1C8E80D9AE19A80"><enum>(i)</enum><text>In the event of a positive determination under subparagraph (C), the Administrator and the Secretary of Agriculture shall, after notice and an opportunity for public comment, by the same date jointly establish a methodology (or methodologies) to calculate greenhouse gas emissions from indirect land use changes that are attributable to the production of renewable fuels and that occur outside the country in which feedstocks are grown for purposes of calculating a renewable fuel’s lifecycle greenhouse gas emissions to determine whether the fuel meets a definition in paragraph (1) or complies with paragraph (2)(A)(i). The exclusion in subparagraph (A) shall end, and the Administrator shall issue a regulation by the same date that shall include emissions from indirect land use changes outside the renewable fuel’s feedstock’s country of origin for purposes of calculating a renewable fuel’s lifecycle greenhouse gas emissions to determine whether the fuel meets a definition in paragraph (1) or complies with paragraph (2)(A)(i) for renewable fuels sold in the calendar year following the year of the positive determination. The effective date of the regulation shall be 6 years after the date of enactment of this paragraph.</text> </clause><clause id="H17FCFE3E542B48BCAAB7C82AD7920287" indent="up1"><enum>(ii)</enum><text>A negative determination under subparagraph (C) shall include a statement of the basis for the determination.</text> </clause></subparagraph><subparagraph id="HBFAA9FD4641141C2A122B48566EA7CDE"><enum>(E)</enum><header>Accountability</header><text>The joint duties and actions of the Administrator and the Secretary of Agriculture shall be subject to sections 304 and 307 of this Act as if they were the duties and actions of the Administrator alone.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HFDADB48BB1304D60BBC6B574D7B2435B"><enum>552.</enum><header>Biomass-based diesel</header><text display-inline="no-display-inline">Section 211(o)(2)(A) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(2)(A)</external-xref>) is amended by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H4EA919D5C3D546408BDCDCF5349ABAFB" style="OLC"> <clause id="H3D7983D9C3264B76ADD3216125EF0817"><enum>(v)</enum><header>Grandfathering biomass-based diesel</header><text display-inline="yes-display-inline">The Administrator shall promulgate regulations exempting from the lifecycle greenhouse gas requirements in subparagraphs (B) and (D) of paragraph (1) up to the greater of 1 billion gallons or the volume mandate adopted pursuant to subparagraph (B)(ii) of biomass-based diesel annually from facilities that commenced construction before the date of enactment of the Energy Independence and Security Act of 2007.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HC0D50854BB4B4D5E9233D4C0EA4A5507"><enum>553.</enum><header>Modification of definition of renewable biomass</header> <subsection id="H7B7C00C7D6844094B29923EA612962C2"><enum>(a)</enum><header>National academy of sciences report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Administrator of the Environmental Protection Agency, the Secretary of Agriculture, and the Federal Energy Regulatory Commission shall jointly arrange for the National Academy of Sciences to evaluate how sources of renewable biomass contribute to the goals of increasing America’s energy independence, protecting the environment, and reducing global warming pollution.</text> </subsection><subsection id="H2F18EF279B60405E817039329D0CA009"><enum>(b)</enum><header>Modification</header> <paragraph id="HBD373D43972D46C08C45A00A1FA0A419"><enum>(1)</enum><header>EPA modification authority</header><text display-inline="yes-display-inline">After reviewing the report required by subsection (a), the Administrator of the Environmental Protection Agency, in concurrence with the Secretary of Agriculture, may, by regulation and after public notice and comment, modify the non-Federal lands portion of the definition of <quote>renewable biomass</quote> in sections 211(o)(1)(I) and 700 of the Clean Air Act in order to advance the goals of increasing America’s energy independence, protecting the environment, and reducing global warming pollution.</text> </paragraph><paragraph id="H6CDEEE3EE77A4094A5008394B4C489D3"><enum>(2)</enum><header>FERC modification authority</header><text display-inline="yes-display-inline">After reviewing the report required by subsection (a), the Federal Energy Regulatory Commission, in concurrence with the Secretary of Agriculture, may, by regulation and after public notice and comment, modify the non-Federal lands portion of the definition of <quote>renewable biomass</quote> in section 610 of the Public Utility Regulatory Policies Act of 1978 in order to advance the goals of increasing America’s energy independence, protecting the environment, and reducing global warming pollution.</text> </paragraph></subsection><subsection id="HC485EF6ABF8349EB845781C707666220"><enum>(c)</enum><header>Federal lands</header> <paragraph id="HBE387CEC712D4FCA8B17485E0799A2A5"><enum>(1)</enum><header>Scientific review</header><text display-inline="yes-display-inline">The Secretary of the Interior, the Secretary of Agriculture, and the Administrator of the Environmental Protection Agency shall conduct a joint scientific review, within 1 year after the date of enactment of this Act, to evaluate how sources of biomass from Federal lands could contribute to the goals of increasing America’s energy independence, protecting the environment, and reducing global warming pollution.</text> </paragraph><paragraph id="H0AC2E9C7D3A9414EA8DC2577AD2B3B13"><enum>(2)</enum><header>Modification authority</header><text>Based on the scientific review, the agencies may, by rule, modify the definition of <quote>renewable biomass</quote> from Federal lands in sections 211(o)(1)(I) and 700 of the Clean Air Act and section 610 of the Public Utility Regulatory Policies Act of 1978 as appropriate to advance the goals of increasing America’s energy independence, protecting the environment, and reducing global warming pollution.</text> </paragraph></subsection></section></subtitle>

Passed the House of Representatives June 26, 2009.

Lorraine C. Miller, Clerk.

July 7, 2009

Read the second time and placed on the calendar