[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3464 Introduced in Senate (IS)]
111th CONGRESS
2d Session
S. 3464
To establish an energy and climate policy framework to reach measurable
gains in reducing dependence on foreign oil, saving Americans money,
improving energy security, and cutting greenhouse gas emissions, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 9, 2010
Mr. Lugar (for himself, Mr. Graham, and Ms. Murkowski) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To establish an energy and climate policy framework to reach measurable
gains in reducing dependence on foreign oil, saving Americans money,
improving energy security, and cutting greenhouse gas emissions, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Practical Energy
and Climate Plan Act of 2010''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--REDUCING FOREIGN OIL DEPENDENCE
Subtitle A--Vehicle Efficiency
Sec. 101. Fuel efficiency standards.
Sec. 102. Revenue neutral fuel performance program for motor vehicles.
Subtitle B--Fuel Choice
Sec. 111. Production incentives for renewable fuels.
Sec. 112. Ensuring the availability of dual fueled automobiles and
light duty trucks.
TITLE II--ENERGY EFFICIENCY
Subtitle A--National Building Energy Performance Standards
Sec. 201. Greater energy efficiency in building codes.
Subtitle B--Federal Buildings
Sec. 211. Energy efficient Federal buildings.
Subtitle C--Homes and Buildings Energy Retrofits Program
Sec. 221. Definitions.
Sec. 222. Homes and Buildings Energy Retrofits Program.
Sec. 223. General provisions.
Sec. 224. Authorization of appropriations.
Subtitle D--Rural Energy Savings Program
Sec. 231. Rural energy savings program.
Subtitle E--Industrial Energy Efficiency
Sec. 241. State partnership industrial energy efficiency revolving loan
program.
Subtitle F--Appliance and Equipment Efficiency Standards
Sec. 251. Appliance and equipment efficiency.
Sec. 252. Federal procurement of energy efficient products.
TITLE III--DIVERSE DOMESTIC POWER
Sec. 301. Federal diverse energy standard.
Sec. 302. Fossil fuel generating facility retirement program.
Sec. 303. Funding for loan guarantees for advanced nuclear energy
facilities.
TITLE IV--MEASUREMENT AND REVIEW OF ENERGY AND CLIMATE PROGRAMS
Sec. 401. Measurement and review of energy and climate change programs.
TITLE I--REDUCING FOREIGN OIL DEPENDENCE
Subtitle A--Vehicle Efficiency
SEC. 101. FUEL EFFICIENCY STANDARDS.
(a) Standards for Light Vehicles.--Section 32902 of title 49,
United States Code, is amended--
(1) in subsection (a), by inserting ``, reflecting at least
a 4 percent annual increase beginning in model year 2017
(rounded to the nearest \1/10\ mile per gallon)'' before the
period at the end;
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) in the subparagraph heading, by
striking ``2020'' and inserting
``2016'';
(II) by striking ``2020'' and
inserting ``2016''; and
(III) by striking ``35'' and
inserting ``34.1'';
(ii) in subparagraph (B)--
(I) in the subparagraph heading, by
striking ``2021'' and inserting
``2017'';
(II) by striking ``2021'' and
inserting ``2017''; and
(III) by inserting ``, reflecting
at least a 4 percent annual increase
for each model year'' before the period
at the end; and
(iii) in subparagraph (C)--
(I) by striking ``subparagraph
(A)'' and inserting ``subparagraphs (A)
and (B)'';
(II) by striking ``and ending with
model year 2020''; and
(III) by adding at the end the
following: ``The projected aggregate
level of average fuel economy for model
year 2017 and each succeeding model
year shall reflect at least a 4 percent
increase from the level for the prior
model year (rounded to the nearest \1/
10\ mile per gallon).''; and
(B) by adding at the end the following:
``(5) Unified regulatory requirements.--Regulations under
this subsection and amendments to regulations under subsection
(c) shall, to the maximum extent practicable, be promulgated
(including through joint rulemaking), coordinated, and
implemented in conjunction with pollutant regulations
promulgated by the the Administrator of the Environmental
Protection Agency.'';
(3) in subsection (c)--
(A) by inserting ``(1)'' before ``The Secretary'';
(B) by striking ``that model year.'' and inserting
the following: ``model year, including to a level lower
than a 4 percent annual increase if the Secretary
determines the standards prescribed under subsection
(b) for each model year--
``(A) are technologically unachievable;
``(B) cannot be achieved without materially reducing the
overall safety of automobiles manufactured or sold in the
United States; or
``(C) is shown, by clear and convincing evidence, not to be
cost effective.
``(2) If a standard reflecting a level lower than a 4 percent
annual increase is prescribed for a model year under subsection (b),
such standard shall be the maximum standard that--
``(A) is technologically achievable;
``(B) can be achieved without materially reducing the
overall safety of automobiles manufactured or sold in the
United States; and
``(C) is cost effective.'';
(C) by striking ``Section 553'' and inserting the
following:
``(3) Section 553''; and
(D) by adding at the end the following:
``(4) Not later than 90 days before issuing an amended standard
that would lower the fuel economy standards below the level prescribed
under subsection (b), the Secretary shall--
``(A) provide written notification to the Committee on
Energy and Commerce of the House of Representatives, the
Committee on Commerce, Science, and Transportation of the
Senate, and the Committee on Energy and Natural Resources of
the Senate, regarding the amendments made to the fuel economy
standards prescribed in subsection (b); and
``(B) make publicly available non-proprietary documentation
regarding the amendment decision''; and
(4) in subsection (f)--
(A) by striking ``When deciding'' and inserting
``(1) In determining'';
(B) by striking ``economic practicability'' and
inserting ``cost effectiveness''; and
(C) by adding at the end the following:
``(2) In determining cost effectiveness under paragraph (1), the
Secretary of Transportation shall take into account the total value to
the Nation of reduced petroleum use, including the value of reducing
external costs of petroleum use, using a value for such costs equal to
50 percent of the value of a gallon of gasoline saved or the amount
determined in an analysis of the external costs of petroleum use that
considers--
``(A) value to consumers;
``(B) economic security;
``(C) national security;
``(D) foreign policy;
``(E) the impact of oil use on--
``(i) sustained cartel rents paid to foreign
suppliers;
``(ii) long-run potential gross domestic product
due to higher normal-market oil price levels, including
inflationary impacts;
``(iii) import costs, wealth transfers, and
potential gross domestic product due to increased trade
imbalances;
``(iv) import costs and wealth transfers during oil
shocks;
``(v) macroeconomic dislocation and adjustment
costs during oil shocks;
``(vi) the cost of existing energy security
policies, including the management of the Strategic
Petroleum Reserve;
``(vii) the timing and severity of the oil peaking
problem;
``(viii) the risk, probability, size, and duration
of oil supply disruptions;
``(ix) OPEC strategic behavior and long-run oil
pricing;
``(x) the short term elasticity of energy demand
and the magnitude of price increases resulting from a
supply shock;
``(xi) oil imports, military costs, and related
security costs, including intelligence, homeland
security, sea lane security and infrastructure, and
other military activities;
``(xii) oil imports, diplomatic and foreign policy
flexibility, and connections to geopolitical strife,
terrorism, and international development activities;
``(xiii) all relevant environmental hazards under
the jurisdiction of the Environmental Protection
Agency; and
``(xiv) well-to-wheels urban and local air
emissions of `pollutants' and their uninternalized
costs;
``(F) the impact of the oil or energy intensity of the
United States economy on the sensitivity of the economy to oil
price changes, including the magnitude of gross domestic
product losses in response to short-term price shocks or long-
term price increases;
``(G) the impact of United States payments for oil imports
on political, economic, and military developments in unstable
or unfriendly oil exporting countries;
``(H) the uninternalized costs of pipeline and storage oil
seepage, and for risk of oil spills from production, handling,
transport, and related landscape damage; and
``(I) additional relevant factors, as determined by the
Secretary in consultation with the Secretary of Energy, the
Administrator of the Environmental Protection Agency, the
Secretary of State, the Secretary of Defense, the Secretary of
Homeland Security, and the Director of National Intelligence.
``(3) In considering the value to consumers of a gallon of gasoline
saved, the Secretary of Transportation may not use a value that is less
than the greatest of--
``(A) the average national cost of a gallon of gasoline
sold in the United States during the 12-month period ending on
the date on which the new fuel economy standard is proposed;
``(B) the most recent weekly estimate by the Energy
Information Administration of the Department of Energy of the
average national cost of a gallon of gasoline (all grades) sold
in the United States; or
``(C) the gasoline prices projected by the Energy
Information Administration for the 20-year period beginning in
the year following the year in which the standards are
established.''.
(b) Standards for Medium- and Heavy-Duty Vehicles.--Section
32902(k) of title 49, United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (C), by striking ``and'' at the
end;
(B) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(E) greatest achievable fuel efficiency
improvement targets for rules pertaining to commercial
medium- and heavy-duty vehicles and work trucks, taking
into consideration the national security and economic
benefits of reduced petroleum consumption and relevant
factors in the manufacture and work accomplished of
such vehicles.'';
(2) in paragraph (2)--
(A) by striking ``Not later'' and inserting the
following:
``(A) Implementation.--Not later'';
(B) by striking ``fuel economy standards'' and
inserting ``fuel efficiency standards (taking into
consideration the national security and economic
benefits of reduced petroleum consumption)'';
(C) by striking ``The Secretary may'' and inserting
the following:
``(B) Separate standards.--The Secretary may'';
(D) in subparagraph (B), as designated by
subparagraph (C) of this paragraph, by adding at the
end the following: ``Recognizing the differentiated
level of technological development and data available
between classes, as identified by the National Academy
of Sciences report `Technologies and Approaches to
Reducing the Fuel Consumption of Medium- and Heavy-Duty
Vehicles,' the Secretary may implement regulations for
certain vehicle classes and vehicle components
authorized under this subsection, as designated by the
Secretary, on an accelerated basis.''; and
(E) by adding at the end the following:
``(C) Applicability; adjustments.--Standards issued
under this subsection--
``(i) may apply to--
``(I) vehicle components;
``(II) whole vehicles based on 1 or
more attributes; or
``(III) any combination of (I) and
(II);
``(ii) shall, subject to paragraph (3)--
``(I) be implemented for vehicles
manufactured for sale in the United
States during or before model year
2017; and
``(II) allow for fuel efficiency
regulation of vehicle components or
whole vehicles before such model year;
and
``(iii) shall periodically, but not less
frequently than every 4 model years, be
adjusted to achieve the maximum technologically
feasible fuel efficiency improvements (taking
into account considerations of oil import
dependence) which do not materially affect
vehicle safety and that are cost effective.
``(D) Cost effective criteria.--As used in
subparagraph (C)(iii), the term `cost effective' shall
be subject to considerations established under
subsection (f) and other criteria determined by the
Secretary;
``(E) Waiver; notification; review.--The Secretary
may waive adjustments to the standards issued under
this subsection if the Secretary determines that any
such adjustment is not necessary to achieve the maximum
technologically feasible fuel efficiency improvements.
If such a determination is made, the Secretary shall
provide written notification to the Committee on Energy
and Commerce of the House of Representatives, the
Committee on Commerce, Science, and Transportation of
the Senate, and the Committee on Energy and Natural
Resources of the Senate, not later than 180 days before
the day that is 4 years after the day on which the most
recent standards came into effect. The Secretary shall
review any determination made under this subparagraph
every 2 years.''; and
(3) by adding at the end the following:
``(4) Unified regulatory requirements.--Regulations issued
pursuant to paragraph (2) shall, to the maximum extent
practicable, be established (including through joint
rulemaking), coordinated, and implemented in conjunction with
pollutant regulations administered by the Environmental
Protection Agency.''.
SEC. 102. REVENUE NEUTRAL FUEL PERFORMANCE PROGRAM FOR MOTOR VEHICLES.
(a) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this section or section 103 an amendment or
repeal is expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered to be
made to a section or other provision of the Internal Revenue Code of
1986.
(b) Fuel Performance Rebate.--Subpart B of part IV of subchapter A
of chapter 1 (relating to other credits) is amended by inserting after
section 30D the following new section:
``SEC. 30E. FUEL PERFORMANCE REBATE.
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to the amount determined under paragraph (2) with
respect to any new qualified fuel-efficient motor vehicle
placed in service by the taxpayer during the taxable year.
``(2) Credit amount.--With respect to each new qualified
fuel-efficient motor vehicle, the amount determined under this
paragraph shall be equal to the product of--
``(A) the absolute value of the difference between
the fuel-economy rating and the reference fuel-economy
rating for such motor vehicle for the model year, and
``(B) 100, and
``(C) the applicable amount.
``(3) Applicable amount.--For purposes of paragraph (2)(C),
the applicable amount is equal to--
``(A) in the case of model year 2011--
``(i) $1,000, or
``(ii) $2,000, if the fuel-economy rating
for such motor vehicle is at least 50 percent
more efficient than the reference fuel-economy
rating for such motor vehicle as determined
under paragraph (2)(A), and
``(B) in the case of any succeeding model year--
``(i) $1,500, or
``(ii) $2,500, if the fuel-economy rating
for such motor vehicle is at least 50 percent
more efficient than the reference fuel-economy
rating for such motor vehicle as determined
under paragraph (2)(A), or
``(iii) $3,500, if the fuel-economy rating
for such motor vehicle is at least 75 percent
more efficient than the reference fuel-economy
rating for such motor vehicle as determined
under paragraph (2)(A).
``(b) New Qualified Fuel-Efficient Motor Vehicle.--For purposes of
this section, the term `new qualified fuel-efficient motor vehicle'
means a passenger automobile or light truck--
``(1) which is treated as a motor vehicle for purposes of
title II of the Clean Air Act,
``(2) which achieves a fuel-economy rating that is more
efficient than the reference fuel-economy rating for such motor
vehicle for the model year,
``(3) for which standards are prescribed pursuant to
section 32902 of title 49, United States Code,
``(4) the original use of which commences with the
taxpayer,
``(5) which is acquired for use or lease by the taxpayer
and not for resale,
``(6) the purchase price of which, less the amount
allowable under subsection (a) with respect to such vehicle,
does not exceed $50,000, and
``(7) which is made by a manufacturer beginning with model
year 2013.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such taxable
year (and not allowed under subsection (a)).
``(2) Refundable personal credit.--
``(A) In general.--For purposes of this title, the
credit allowed under subsection (a) for any taxable
year (determined after application of paragraph (1))
shall be treated as a credit allowable under subpart C
for such taxable year (and not allowed under subsection
(a)).
``(B) Refundable credit may be transferred.--
``(i) In general.--A taxpayer may, in
connection with the purchase of a new qualified
fuel-efficient motor vehicle, transfer any
refundable credit described in subparagraph (A)
to any person who is in the trade or business
of selling new qualified fuel-efficient motor
vehicles and who sold such vehicle to the
taxpayer, but only if such person clearly
discloses to such taxpayer, through the use of
a window sticker attached to the new qualified
fuel-efficient vehicle--
``(I) the amount of the refundable
credit described in subparagraph (A)
with respect to such vehicle, and
``(II) a notification that the
taxpayer will not be eligible for any
credit under section 30, 30B, or 30D
with respect to such vehicle unless the
taxpayer elects not to have this
section apply with respect to such
vehicle.
``(ii) Certification.--A transferee of a
refundable credit described in subparagraph (A)
may not claim such credit unless such claim is
accompanied by a certification to the Secretary
that the transferee reduced the price the
taxpayer paid for the new qualified fuel-
efficient motor vehicle by the entire amount of
such refundable credit.
``(iii) Consent required for revocation.--
Any transfer under clause (i) may be revoked
only with the consent of the Secretary.
``(iv) Regulations.--The Secretary may
prescribe such regulations as necessary to
ensure that any refundable credit described in
clause (i) is claimed once and not
retransferred by a transferee.
``(d) Other Definitions.--For purposes of this section--
``(1) Fuel-economy rating.--The term `fuel-economy rating'
means, with respect to any motor vehicle, the combined fuel-
economy rating for such motor vehicle, expressed in gallons per
mile, determined in accordance with section 32904 of title 49,
United States Code.
``(2) Model year.--The term `model year' has the meaning
given such term under section 32901(a) of such title 49.
``(3) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public
streets, roads, and highways (not including a vehicle operated
exclusively on a rail or rails) and which has at least 4
wheels.
``(4) Reference fuel-economy rating.--The term `reference
fuel-economy rating' means, with respect to any motor vehicle,
the fuel economy standard for such motor vehicle, expressed in
gallons per mile, calculated by applying the relevant vehicle
attributes to the mathematical function published pursuant to
section 32902(b)(3)(A) of title 49, United States Code.
``(5) Other terms.--The terms `automobile', `passenger
automobile', `light truck', and `manufacturer' have the
meanings given such terms in regulations prescribed by the
Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air Act
(42 U.S.C. 7521 et seq.).
``(e) Special Rules.--
``(1) Basis reduction.--For purposes of this subtitle, the
basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed (determined without regard to subsection (c)).
``(2) No double benefit.--No other credit shall be
allowable under this chapter for a new qualified fuel-efficient
motor vehicle with respect to which a credit is allowed under
this section.
``(3) Property used by tax-exempt entity.--In the case of a
vehicle whose use is described in paragraph (3) or (4) of
section 50(b) and which is not subject to a lease, the person
who sold such vehicle to the person or entity using such
vehicle shall be treated as the taxpayer that placed such
vehicle in service, but only if such person clearly discloses
to such person or entity in a document the amount of any credit
allowable under subsection (a) with respect to such vehicle
(determined without regard to subsection (c)). For purposes of
subsection (c), property to which this paragraph applies shall
be treated as of a character subject to an allowance for
depreciation.
``(4) Property used outside united states, etc., not
qualified.--No credit shall be allowable under subsection (a)
with respect to any property referred to in section 50(b)(1) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(5) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit (including recapture in
the case of a lease period of less than the economic life of a
vehicle).
``(6) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(7) Interaction with air quality and motor vehicle safety
standards.--A motor vehicle shall not be considered eligible
for a credit under this section unless such vehicle is in
compliance with--
``(A) the applicable provisions of the Clean Air
Act for the applicable make and model year of the
vehicle (or applicable air quality provisions of State
law in the case of a State which has adopted such
provisions under a waiver under section 209(b) of the
Clean Air Act), and
``(B) the motor vehicle safety provisions of
sections 30101 through 30169 of title 49, United States
Code.
``(8) Inflation adjustment.--In the case of any model year
beginning in a calendar year after 2011, each dollar amount in
subsection (a)(3)(B) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the model year begins, determined by substituting
`2010' for `1992' in subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be
rounded to the nearest multiple of $100.
``(f) Regulations.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall promulgate such regulations as necessary to
carry out the provisions of this section.
``(2) Coordination in prescription of certain
regulations.--The Secretary of the Treasury, in coordination
with the Secretary of Transportation and the Administrator of
the Environmental Protection Agency, shall prescribe such
regulations as necessary to determine whether a motor vehicle
meets the requirements to be eligible for a credit under this
section.''.
(c) Credit Allowed Against Alternative Minimum Tax.--
(1) Business credit.--Section 38(c)(4)(B) is amended--
(A) by redesignating clauses (i) through (viii) as
clauses (ii) through (ix), respectively; and
(B) by inserting before clause (ii) (as so
redesignated) the following new clause:
``(i) the credit determined under section
30E,''.
(2) Personal credit.--
(A) Section 24(b)(3)(B) is amended by striking
``and 30D'' and inserting ``30D, and 30E''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30E,'' after ``30D,''.
(C) Section 25B(g)(2) is amended by striking ``and
30D'' and inserting ``30D, and 30E''.
(D) Section 26(a)(1) is amended by striking ``and
30D'' and inserting ``30D, and 30E''.
(E) Section 904(i) is amended by striking ``and
30D'' and inserting ``30D, and 30E''.
(d) Display of Credit.--Section 32908(b)(1) of title 49, United
States Code, is amended--
(1) by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G); and
(2) by inserting after subparagraph (D) the following new
subparagraph:
``(E) the amount of the fuel-efficient motor
vehicle credit allowable with respect to the sale of
the automobile under section 30E of the Internal
Revenue Code of 1986 (26 U.S.C. 30E).''.
(e) Conforming Amendments.--
(1) Section 38(a) is amended--
(A) in paragraph (34), by striking ``plus'' at the
end;
(B) in paragraph (35), by striking the period at
the end and inserting ``, plus''; and
(C) by adding at the end the following new
paragraph:
``(36) the portion of the fuel performance rebate to which
section 30E(c)(1) applies.''.
(2) Section 1016(a) is amended--
(A) in paragraph (36), by striking ``and'' at the
end;
(B) in paragraph (37), by striking the period at
the end and inserting ``, and''; and
(C) by adding at the end the following new
paragraph:
``(38) to the extent provided in section 30E(e)(1).''.
(3) Section 6501(m) is amended by inserting ``30E(e)(6),''
after ``30D(e)(4),''.
(4) The table of section for subpart C of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 30D the following new item:
``Sec. 30E. Fuel performance rebate.''.
(f) Revenue Neutrality Provisions for Fuel Performance Credit.--
Section 4064 is amended to read as follows:
``SEC. 4064. FISCAL OFFSET PROVISIONS FOR FUEL PERFORMANCE CREDIT.
``(a) Imposition of Tax.--
``(1) In general.--There is hereby imposed on the sale by
the manufacturer of each fuel guzzler motor vehicle a tax equal
to the product of--
``(A) the absolute value of the difference between
the fuel-economy rating and the reference fuel-economy
rating for such motor vehicle for the model year, and
``(B) 100, and
``(C) the applicable amount.
``(2) Applicable amount.--For purposes of paragraph (1)(C),
the applicable amount is equal to--
``(A) $1,500, or
``(B) $2,500, if the fuel-economy rating for such
motor vehicle is more than 50 percent less efficient
than the reference fuel-economy rating for such motor
vehicle as determined under paragraph (1)(A), or
``(C) $3,500, if the fuel-economy rating for such
motor vehicle is more than 75 percent less efficient
than the reference fuel-economy rating for such motor
vehicle as determined under paragraph (1)(A).
``(b) Fuel Guzzler Motor Vehicle.--For purposes of this section--
``(1) In general.--The term `fuel guzzler motor vehicle'
means a passenger automobile or light truck--
``(A) which is treated as a motor vehicle for
purposes of title II of the Clean Air Act,
``(B) which achieves a fuel-economy rating that is
less efficient than the reference fuel-economy rating
for such motor vehicle for the model year,
``(C) which has a gross vehicle weight rating of
not more than 8,500 pounds, and
``(D) which is made by a manufacturer beginning
with model year 2013.
``(2) Exception for emergency vehicles.--The term `fuel
guzzler motor vehicle' does not include any vehicle sold for
use and used--
``(A) as an ambulance or combination ambulance-
hearse,
``(B) by the United States or by a State or local
government for police or other law enforcement
purposes, or
``(C) for other emergency uses prescribed by the
Secretary by regulations.
``(c) Other Definitions.--For purposes of this section--
``(1) Fuel-economy rating.--The term `fuel-economy rating'
means, with respect to any motor vehicle, the combined fuel-
economy rating for such motor vehicle, expressed in gallons per
mile, determined in accordance with section 32904 of title 49,
United States Code.
``(2) Model year.--The term `model year' has the meaning
given such term under section 32901(a) of such title 49.
``(3) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public
streets, roads, and highways (not including a vehicle operated
exclusively on a rail or rails) and which has at least 4
wheels.
``(4) Reference fuel-economy rating.--The term `reference
fuel-economy rating' means, with respect to any motor vehicle,
the fuel economy standard for such motor vehicle, expressed in
gallons per mile, calculated by applying the relevant vehicle
attributes to the mathematical function published pursuant to
section 32902(b)(3)(A) of title 49, United States Code.
``(5) Other terms.--The terms `automobile', `passenger
automobile', `light truck', and `manufacturer' have the
meanings given such terms in regulations prescribed by the
Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air Act
(42 U.S.C. 7521 et seq.).
``(d) Inflation Adjustment.--In the case of any model year
beginning in a calendar year after 2010, each dollar amount in
subsection (a)(2) shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the model year
begins, determined by substituting `2009' for `1992' in
subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be rounded
to the nearest multiple of $100.''.
(g) Conforming Amendments.--
(1) The heading for part I of subchapter A of chapter 32 is
amended by striking ``gas'' and inserting ``fuel''.
(2) The table of parts for subchapter A of chapter 32 is
amended by striking ``Gas'' in the item relating to part I and
inserting ``Fuel''.
(3) The table of sections for part I of subchapter A of
chapter 32 is amended by striking ``Gas'' in the item relating
to section 4064 and inserting ``Fuel''.
(4) The heading for subsection (d) of section 1016 is
amended by striking ``Gas Guzzler Tax'' and inserting ``Fuel
Performance Fee''.
(5) The heading for subsection (e) of section 4217 is
amended by striking ``Gas Guzzler Tax'' and inserting ``Fuel
Performance Fee''.
(6) The heading for subparagraph (B) of section 4217(e)(3)
is amended by striking ``gas guzzler tax'' and inserting ``fuel
performance fee''.
(7) Section 4217(e) is amended by striking ``gas guzzler
tax'' each place it appears and inserting ``fuel performance
fee''.
(h) Effective Date.--The amendments made by subsections (a) through
(e) shall apply to property placed in service after the date of the
enactment of this Act. The amendments made by subsections (f) and (g)
shall apply to sales of vehicles beginning with model year 2013.
Subtitle B--Fuel Choice
SEC. 111. PRODUCTION INCENTIVES FOR RENEWABLE FUELS.
Section 942 of the Energy Policy Act of 2005 (42 U.S.C. 16251) is
amended--
(1) in the section heading, by striking ``cellulosic
biofuels'' and inserting ``renewable fuels'';
(2) by striking ``cellulosic biofuels'' each place it
appears (other than subsection (b)(1)) and inserting
``renewable fuels'';
(3) in subsection (a), by striking ``biofuels'' each place
it appears and inserting ``renewable fuels'';
(4) in subsection (b)--
(A) by striking paragraph (1);
(B) by redesignating paragraph (2) as paragraph
(1); and
(C) by inserting after paragraph (1) (as so
redesignated) the following:
``(2) Renewable fuel.--
``(A) In general.--The term `renewable fuel' has
the meaning given the term in section 211(o)(1) of the
Clean Air Act (42 U.S.C. 7545(o)(1)).
``(B) Inclusion.--The term `renewable fuel'
includes algae.
``(C) Exclusion.--The term `renewable fuel' does
not include grain.''; and
(5) in subsection (f), by inserting ``for each of fiscal
years 2011 through 2015'' before the period at the end.
SEC. 112. ENSURING THE AVAILABILITY OF DUAL FUELED AUTOMOBILES AND
LIGHT DUTY TRUCKS.
(a) In General.--Chapter 329 of title 49, United States Code, is
amended by inserting after section 32902 the following:
``Sec. 32902A. Requirement to manufacture dual fueled automobiles and
light duty trucks
``(a) In General.--For each model year listed in the following
table, each manufacturer shall ensure that the percentage of
automobiles and light duty trucks manufactured by the manufacturer for
sale in the United States that are dual fueled automobiles and light
duty trucks is not less than the percentage set forth for that model
year in the following table:
``Model Year Percentage
Model years 2013 and 2014....................... 50 percent
Model year 2015 and each subsequent model year.. 90 percent.
``(b) Exception.--Subsection (a) shall not apply to automobiles or
light duty trucks that operate only on electricity or other non-
petroleum based energy sources.''.
(b) Clerical Amendment.--The table of sections for chapter 329 of
title 49, United States Code, is amended by inserting after the item
relating to section 32902 the following:
``32902A. Requirement to manufacture dual fueled automobiles and light
duty trucks.''.
(c) Rulemaking.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Transportation shall prescribe
regulations to carry out the amendments made by this Act.
TITLE II--ENERGY EFFICIENCY
Subtitle A--National Building Energy Performance Standards
SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING CODES.
(a) In General.--Section 304 of the Energy Conservation and
Production Act (42 U.S.C. 6833) is amended to read as follows:
``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.
``(a) Updating National Model Building Energy Codes.--
``(1) Targets.--
``(A) In general.--The Secretary shall support
updating the national model building energy codes and
standards at least every 3 years to achieve overall
energy savings, compared to the 2006 IECC for
residential buildings and ASHRAE Standard 90.1-2004 for
commercial buildings.
``(B) Minimum requirements.--The targets for
overall energy savings shall be at least a--
``(i) 30 percent reduction in energy use
relative to a comparable building constructed
in compliance with the 2006 IECC by January 1,
2012;
``(ii) 30 percent reduction in energy use
relative to a comparable building constructed
in compliance with the ASHRAE Standard 90.1-
2004 by May 1, 2012;
``(iii) 50 percent reduction in energy use
relative to a comparable building constructed
in compliance with the 2006 IECC by January 1,
2015; and
``(iv) 50 percent reduction in energy use
relative to a comparable building constructed
in compliance with the ASHRAE Standard 90.1-
2004 by January 1, 2017.
``(C) Specific years.--
``(i) In general.--Targets for specific
dates subsequent to the dates established under
clauses (i) and (ii) of subparagraph (B) shall
be set by the Secretary at least 3 years in
advance of each target date, coordinated with
the IECC and ASHRAE Standard 90.1 cycles, at a
level of energy efficiency that is
technologically feasible and life-cycle cost
effective and on a path to achieving net-zero-
energy buildings.
``(ii) Different target years.--
``(I) In general.--Subject to
paragraph (2)(D), not later than 3
years prior to implementation of
clauses (iii) and (iv) of subparagraph
(B), the Secretary may set a different
target date for the targets established
under those clauses if the Secretary
determines that a 50 percent target
cannot be met by the target date.
``(II) Notice.--Not later than 15
days prior to a determination made
under subclause (I), the Secretary
shall inform the Committee on Energy
and Natural Resources of the Senate and
the Committee on Energy and Commerce of
the House of Representatives of the
determination.
``(D) Technical assistance to model code-setting
and standard development organizations.--
``(i) In general.--The Secretary shall, on
a timely basis, provide technical assistance to
model code-setting and standard development
organizations.
``(ii) Assistance.--The assistance shall,
to the maximum extent practicable, include
technical assistance identified by the
organizations such as for--
``(I) evaluating codes or standards
proposals or revisions;
``(II) building energy analysis and
design tools;
``(III) building demonstrations;
and
``(IV) design assistance and
training.
``(E) Amendment proposals.--The Secretary shall
submit codes and standards amendment proposals to the
model code-setting and standards development
organizations, with supporting evidence, sufficient to
enable the national model building energy codes and
standards to meet the targets established under
subparagraph (B).
``(2) Revision of building energy use standards.--
``(A) In general.--If the provisions of the IECC or
ASHRAE Standard 90.1 regarding building energy use are
revised, the Secretary shall make a determination not
later than 180 days after the date of the revision, on
whether the revision will--
``(i) improve energy efficiency in
buildings; and
``(ii) meet the targets under paragraph
(1).
``(B) Codes or standards not meeting targets.--
``(i) In general.--If the Secretary makes a
determination under subparagraph (A)(ii) that a
code or standard does not meet the targets
established under paragraph (1), not later than
1 year after the date of the determination, the
Secretary shall provide the model code or
standard developer with proposed changes that
would result in a model code or standard that
meets the targets.
``(ii) Incorporation of changes.--On
receipt of the proposed changes, the model code
or standard developer shall have an additional
180 days to incorporate the proposed changes
into the model code or standard.
``(iii) Establishment by secretary.--If the
proposed changes are not incorporated into the
model code or standard, the Secretary shall
establish a modified code or standard that
meets the established targets.
``(iv) Administration.--Any code or
standard modified under this subparagraph
shall--
``(I) achieve a level of energy
savings that is technologically
feasible and life-cycle cost-effective;
``(II) be based on the latest
edition of the IECC or ASHRAE Standard
90.1, including any subsequent
amendments, addenda, or additions, but
may also consider other model codes or
standards; and
``(III) serve as the baseline for
the next determination under
subparagraph (A)(i).
``(C) Codes or standards not updated for 3 years.--
``(i) In general.--If the model code or
standard is not revised by a target date under
paragraph (1)(B), the Secretary shall, not
later than 1 year after the target date,
establish a modified code or standard that
meets the targets under paragraph (1)(B).
``(ii) Requirements.--Any modified code or
standard shall--
``(I) achieve a level of energy
savings that is technologically
feasible and life-cycle cost-effective;
``(II) be based on the latest
revision of the IECC or ASHRAE Standard
90.1, including any amendments or
additions to the code or standard, but
may also consider other model codes or
standards; and
``(III) serve as the baseline for
the next determination under
subparagraph (A)(i).
``(D) Administration.--The Secretary shall--
``(i) provide an opportunity for public
comment on targets, determinations, and
modified codes and standards under this
subsection; and
``(ii) publish in the Federal Register
notice of targets, determinations, and modified
codes and standards under this subsection.
``(b) Establishing Minimum Building Efficiency Standard.--
``(1) Determination of minimum building efficiency
standard.--
``(A) In general.--If the Secretary makes an
affirmative determination or establishes a modified
code or standard under paragraph (2), the Secretary
shall establish the modified code or standard as the
Minimum Building Efficiency Standard.
``(B) State notification.--The Secretary shall
notify each State of the determination of the Minimum
Building Efficiency Standard not later than 30 days
after establishing or modifying the standard.
``(2) Initial minimum building efficiency standard.--As of
the date of enactment of the Practical Energy and Climate Plan
Act of 2010, the Minimum Building Efficiency Standard shall
be--
``(A) the 2009 IECC for residential buildings; and
``(B) the ASHRAE Standard 90.1-2007 for commercial
buildings.
``(c) State Certification of Building Energy Code Updates.--
``(1) Review and updating of codes by each state.--
``(A) In general.--Not later than 2 years after the
date on which the Minimum Building Efficiency Standard
is established under subsection (b), each State shall
certify to the Secretary whether or not the State has
reviewed and updated the provisions of the residential
and commercial building codes of the State regarding
energy efficiency.
``(B) Demonstration.--For a State to be in
compliance with this section, the certification under
subparagraph (A) shall include a demonstration that the
code provisions that are in effect throughout the
State--
``(i) meet or exceed the Minimum Building
Efficiency Standard; or
``(ii) achieve equivalent or greater energy
savings.
``(d) State Certification of Compliance With Building Codes.--
``(1) Requirement.--
``(A) In general.--Not later than 3 years after the
date of a certification under subsection (c), each
State shall certify whether or not the State has--
``(i) achieved compliance under paragraph
(3) with the certified State building energy
code or the Minimum Building Efficiency
Standard; or
``(ii) made significant progress under
paragraph (4) toward achieving compliance with
the certified State building energy code or the
Minimum Building Efficiency Standard.
``(B) Repeat certifications.--If a State certifies
progress toward achieving compliance, the State shall
repeat the certification each year until the State
certifies that the State has achieved compliance.
``(2) Measurement of compliance.--A certification under
paragraph (1) shall include documentation of the rate of
compliance based on--
``(A) independent inspections of a random sample of
the new and renovated buildings covered by the code in
the preceding year; or
``(B) an alternative method that yields an accurate
measure of compliance.
``(3) Achievement of compliance.--A State shall be
considered to achieve compliance under paragraph (1) if--
``(A) at least 90 percent of new building space
covered by the code in the preceding year substantially
meets all the requirements of the code regarding energy
efficiency, or achieves equivalent or greater energy
savings; or
``(B) the estimated excess energy use of new and
renovated buildings that did not meet the code in the
preceding year, compared to a baseline of comparable
buildings that meet the code, is not more than 5
percent of the estimated energy use of all new and
renovated buildings covered by the code during the
preceding year.
``(4) Significant progress toward achievement of
compliance.--
``(A) In general.--For purposes of paragraph (1), a
State shall be considered to have made significant
progress toward achieving compliance if the State--
``(i) has developed and is implementing a
plan for achieving compliance not later than 8
years after the date of enactment of the
Practical Energy and Climate Plan Act of 2010,
assuming continued adequate funding, including
active training and enforcement programs;
``(ii) after 1 or more years of adequate
funding, has demonstrated progress, in
conformance with the plan described in clause
(i), toward compliance;
``(iii) after 5 or more years of adequate
funding, meets the requirements of paragraph
(3) if `80 percent' is substituted for `90
percent' or `10 percent' is substituted for `5
percent'; and
``(iv) has not had more than 8 years of
adequate funding.
``(B) Adequate funding.--For purposes of this
paragraph, funding shall be considered adequate if the
Federal Government provides to the States at least
$50,000,000 for a fiscal year in funding and support
for development and implementation of State building
energy codes, including for training and enforcement.
``(C) Technical assistance to states.--The
Secretary shall make available technical assistance to
States to implement this section, including procedures
and technical analysis for States--
``(i) to demonstrate that the code
provisions of the States achieve equivalent or
greater energy savings than the Minimum
Building Efficiency Standard;
``(ii) to document the rate of compliance
with a building energy code; and
``(iii) to improve and implement State
residential and commercial building energy
efficiency codes.
``(D) Voluntary advanced codes and standards.--
``(i) In general.--The Secretary shall
support the development of voluntary advanced
model codes and standards for residential and
commercial buildings that achieve energy
savings of at least 30 percent compared to the
Minimum Building Efficiency Standard, for use
in--
``(I) building design;
``(II) voluntary and market
transformation programs;
``(III) incentive criteria; and
``(IV) voluntary adoption by
States.
``(ii) Updates.--The voluntary advanced
model codes and standards shall be updated at
least once every 3 years.
``(e) Compliance.--
``(1) Validation of certification.--
``(A) In general.--Subject to subparagraph (B), not
later than 60 days after the date of receipt of
certification required by subsection (c), the Secretary
shall inform the submitting State in writing of whether
the Secretary validates the certification and, if not
validated, the reasons for not validating the
certification as submitted.
``(B) Deferral.--On the request of the State, the
Secretary may defer the validation decision for an
additional 90 days.
``(C) Noncompliance.--Any State for which the
Secretary has not accepted a certification by a
deadline under subsection (c) or (d) shall be
considered out of compliance with this section.
``(2) Local government.--In any State that is out of
compliance with this section, a local government may be
considered in compliance with this section by meeting the
certification requirements under subsections (c) and (d).
``(3) Annual reports by secretary.--
``(A) In general.--The Secretary shall annually
submit to Congress, and publish in the Federal
Register, a report that describes--
``(i) the status of Minimum Building
Efficiency Standards;
``(ii) the status of code adoption and
compliance in the States; and
``(iii) implementation of this section.
``(B) Impacts.--The report shall include estimates
of impacts of past action under this section, and
potential impacts of further action, on lifetime energy
use by buildings and resulting energy costs to
individuals and businesses.
``(4) Consideration in grant process.--The Secretary shall
consider as a factor of any grants to be awarded by the
Department to States whether or not the State has achieved
compliance or is making significant progress towards achieving
compliance under paragraphs (3) and (4) of subsection (d).
``(f) Availability of Implementation Assistance Funding.--
``(1) In general.--
``(A) Requirement.--The Secretary shall provide
implementation assistance funding to States and local
governments to implement this section, and to improve
and implement State residential and commercial building
energy efficiency codes, including increasing and
verifying compliance with the codes and training of
State and local building code officials.
``(B) State actions.--In determining whether, and
in what amount, to provide implementation assistance
funding under this subsection, the Secretary shall
consider the actions proposed by the State--
``(i) to implement this section;
``(ii) to improve and implement residential
and commercial building energy efficiency
codes; and
``(iii) to promote building energy
efficiency through the use of the codes.
``(2) Additional funding.--Additional funding shall be
provided under this subsection for implementation of a plan to
achieve and document at least a 90-percent rate of compliance
with residential and commercial building energy efficiency
codes, based on energy performance--
``(A) to a State that has adopted and is
implementing, on a statewide basis--
``(i) a residential building energy
efficiency code that meets or exceeds the
requirements of the 2009 IECC, or any
succeeding version of that code that has
received an affirmative determination from the
Secretary under subsection (a)(2)(A)(i); and
``(ii) a commercial building energy
efficiency code that meets or exceeds the
requirements of the ASHRAE Standard 90.1-2007,
or any succeeding version of that standard that
has received an affirmative determination from
the Secretary under subsection (a)(2)(A)(i); or
``(B) in a State in which there is no statewide
energy code for either residential buildings or
commercial buildings, or in which State codes fail to
comply with subparagraph (A), to a local government
that has adopted and is implementing residential and
commercial building energy efficiency codes, as
described in subparagraph (A).
``(3) Training.--Of the amounts made available under this
subsection, the State may use amounts required, but not to
exceed $500,000 per State, to train State and local building
code officials to implement and enforce codes described in
paragraph (2).
``(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection--
``(A) $300,000,000 for each of fiscal years 2011
through 2015; and
``(B) such sums as are necessary for fiscal year
2016 and each fiscal year thereafter.''.
(b) Definition of IECC.--Section 303 of the Energy Conservation and
Production Act (42 U.S.C. 6832) is amended by adding at the end the
following:
``(17) IECC.--The term `IECC' means the International
Energy Conservation Code.''.
Subtitle B--Federal Buildings
SEC. 211. ENERGY EFFICIENT FEDERAL BUILDINGS.
Section 543 of the National Energy Conservation Policy Act (42
U.S.C. 8253) is amended--
(1) by redesignating the second subsection (f) (relating to
large capital energy investments) as subsection (g); and
(2) by adding at the end the following:
``(h) Energy Efficient Federal Buildings.--
``(1) In general.--To the maximum extent practicable, each
Federal agency shall ensure that any new Federal building is
designed in a manner to enhance energy efficiency, including--
``(A) by complying with paragraphs (2) and (3); and
``(B) by identifying and analyzing impacts from
energy usage and alternative energy sources in all
environmental impact statements or similar analyses
required under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) for proposals covering
new or expanded Federal facilities.
``(2) First stage.--To the maximum extent practicable, each
Federal agency shall ensure that any Federal building that
enters the design phase on or after January 1, 2012--
``(A) is designed to exceed national building
performance standards;
``(B) makes appropriate use of cost-effective,
innovative technologies and strategies to minimize
consumption of energy, water, and materials; and
``(C) is located in accordance with a process that
considers sites with convenient access to public
transportation alternatives.
``(3) Second stage.--To the maximum extent practicable,
each Federal agency shall ensure that any Federal building that
enters the design phase on or after January 1, 2020, is
designed to achieve net-zero energy use by January 1, 2030.''.
Subtitle C--Homes and Buildings Energy Retrofits Program
SEC. 221. DEFINITIONS.
In this subtitle:
(1) Cost.--The term ``cost'' has the meaning given the term
in section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a).
(2) Direct loan.--The term ``direct loan'' has the meaning
given the term in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(3) Loan guarantee.--The term ``loan guarantee'' has the
meaning given the term in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a).
(4) Program.--The term ``Program'' means the Homes and
Buildings Energy Retrofits Program established by section 242.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(6) Security.--The term ``security'' has the meaning given
the term in section 2 of the Securities Act of 1933 (15 U.S.C.
77b).
(7) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
SEC. 222. HOMES AND BUILDINGS ENERGY RETROFITS PROGRAM.
(a) Establishment.--There is established in the Department of
Energy a program to be known as the Homes and Buildings Energy
Retrofits Program, which shall have annual target energy efficiency
retrofit rates of--
(1) 5 percent for homes; and
(2) 2 percent for commercial buildings.
(b) Eligibility Criteria.--
(1) In general.--In administering the Program, the
Secretary shall establish eligibility criteria for applicants
for financial assistance under subsection (c) who can offer
financial products and programs consistent with the purposes of
this subtitle.
(2) Criteria.--Criteria for applicants shall--
(A) take into account--
(i) expected energy savings;
(ii) percentage electricity rate increases
in areas to be served by the applicant that are
attributable to implementation of the Federal
diverse energy standard;
(iii) the number and type of buildings that
can be served by the applicant, the size of the
potential market, and the scope of the program
(in terms of measures or technologies to be
used);
(iv) the ability of the applicant to
successfully execute the proposed program and
maintain the performance of the proposed
projects and investments;
(v) financial criteria, as applicable,
including the ability of the applicant to raise
private capital or other sources of funds for
the proposed program;
(vi) criteria that enable the Secretary to
determine sound program design, including--
(I) an assurance of credible energy
efficiency or renewable energy
generation performance; and
(II) financial product or program
design that effectively reduces
barriers posed by traditional financing
programs;
(vii) such criteria, standards, guidelines,
and mechanisms as will enable the Secretary, to
the maximum extent practicable, to communicate
to program sponsors and originators, servicers,
and sellers of financial obligations the
eligibility of loans for resale;
(viii) the ability of the applicant to
report relevant data on program performance;
and
(ix) the ability of the applicant to use
incentives or marketing techniques that are
likely to result in successful market
penetration; and
(B) encourage--
(i) use of technologies that are either
well-established or new, but demonstrated to be
reliable;
(ii) applicants that can offer building
owners or lessees payment plans generally
designed to permit the combination of energy
payments and assessments or charges from the
installation or payments associated with
financing to be lower than the energy payments
prior to installing energy efficiency measures
or on-site renewable energy technologies;
(iii) applicants that will use repayment
mechanisms convenient for building owners, such
as tax-increment financing, special tax
districts, on-utility-bill repayment, or other
mechanisms;
(iv) applicants that can provide
convenience for building owners by combining
participation in the lending program with--
(I) processing for tax credits and
other incentives; and
(II) technical assistance in
selecting and working with vendors to
provide energy efficiency measures or
on-site renewable energy generation
systems;
(v) applicants the projects of which will
use contractors that hire within a 50-mile
radius of the project, or as close as is
practicable;
(vi) applicants that will use materials and
technologies manufactured in the United States;
(vii) partnerships with or other
involvement of State workforce investment
boards, labor organizations, community-based
organizations, State-approved apprenticeship
programs, and other job training entities; and
(viii) applicants that can provide
financing programs or financial products that
mitigate barriers other than the initial
expense of installing measures or technologies,
such as unfavorable lease terms.
(3) Diverse portfolio.--In establishing criteria and
selecting applicants to receive financial assistance under
subsection (c), the Secretary shall select a portfolio of
investments that reaches a diversity of building owners and
lessees, including--
(A) individual homeowners or lessees;
(B) multifamily apartment building owners or
lessees;
(C) condominium owners associations;
(D) commercial building owners or lessees,
including multi-tenant commercial properties;
(E) industrial building owners or lessees; and
(F) schools, hospitals, and other buildings
designated by the Secretary.
(c) Financial Assistance.--
(1) In general.--For applicants determined to be eligible
under criteria established under subsection (b), the Secretary
may provide financial assistance in the form of direct loans,
letters of credit, loan guarantees, insurance products, other
credit enhancements or debt instruments (including
securitization or indirect credit support), or other financial
products to promote the widespread deployment of, and mobilize
private sector support of credit and investment institutions
for, energy efficiency measures and on-site renewable energy
generation systems in buildings.
(2) Financial products.--The Secretary--
(A) in cooperation with Federal, State, local, and
private sector entities, shall develop debt instruments
that provide for the aggregation of, or directly
aggregate, programs for the deployment of energy
efficiency measures and on-site renewable energy
generation systems on a scale appropriate for
residential, commercial, or industrial applications;
and
(B) may insure, guarantee, purchase, and make
commitments to purchase any debt instrument associated
with the deployment of clean energy technologies
(including subordinated securities) for the purpose of
enhancing the availability of private financing for the
deployment of energy efficiency measures and on-site
renewable energy generation systems.
(3) Application review.--
(A) In general.--To the maximum extent practicable
and consistent with sound business practices, the
Secretary shall seek to expedite reviews of
applications for credit support under this subtitle in
order to communicate to applicants in a timely manner
the likelihood of support so that the applicants can
seek private capital in order to receive final
approval.
(B) Mechanisms.--In carrying out this paragraph,
the Secretary shall consider using mechanisms such as--
(i) a system for conditional pre-approval
that informs applicants that final applicants
will be approved, if established conditions are
met;
(ii) clear guidelines that communicate to
applicants what level of performance on
eligibility criteria will ensure approval for
credit support or resale;
(iii) in the case of an applicant portfolio
of more than 300 loans or other financial
arrangement, an expedited review based on
statistical sampling to ensure that the loan or
other financial arrangement meets the
eligibility criteria; and
(iv) in the case of an applicant with a
demonstrated track record with respect to
successfully originating eligible loans or
other financial arrangements and who meets
appropriate other criteria determined by the
Secretary, a system for delegating
responsibility for meeting eligibility criteria
that includes appropriate protections such as
buy-back mechanisms in the event criteria are
determined not to have been met.
(C) Disposition of debt or interest.--The Secretary
may acquire, hold, and sell or otherwise dispose of,
pursuant to commitments or otherwise, any debt
associated with the deployment of clean energy
technologies or interest in the debt.
(D) Pricing.--
(i) In general.--The Secretary may
establish requirements, and impose charges or
fees, which may be regarded as elements of
pricing, for different classes of applicants,
originators, sellers, servicers, or services.
(ii) Classification of applicants,
originators, sellers and servicers.--For the
purpose of clause (i), the Secretary may
classify applicants, originators, sellers and
servicers as necessary to promote transparency
and liquidity and properly characterize the
risk of default.
(E) Secondary market support.--
(i) In general.--The Secretary may lend on
the security of, and make commitments to lend
on the security of, any debt that the Secretary
has insured, guaranteed, issued or is
authorized to purchase under this section.
(ii) Authorized actions.--On such terms and
conditions as the Secretary may prescribe, the
Secretary may--
(I) give security;
(II) insure;
(III) guarantee;
(IV) purchase;
(V) sell;
(VI) pay interest or other return;
and
(VII) issue notes, debentures,
bonds, or other obligations or
securities.
(F) Lending activities.--
(i) In general.--The Secretary shall
determine--
(I) the volume of the lending
activities of the Program; and
(II) the types of loan ratios, risk
profiles, interest rates, maturities,
and charges or fees in the secondary
market operations of the Program.
(ii) Objectives.--Determinations under
clause (i) shall be consistent with the
objectives of--
(I) providing an attractive
investment environment for programs
that install energy efficiency measures
or on-site renewable energy generation
technologies;
(II) making the operations of the
Program self-supporting over a
reasonable time frame;
(III) encouraging, and not crowding
out, reasonably priced private
financing mechanisms and institutions;
and
(IV) advancing the goals
established under this subtitle.
(G) Exempt securities.--All securities issued,
insured, or guaranteed by the Secretary shall, to the
same extent as securities that are direct obligations
of or obligations guaranteed as to 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.
SEC. 223. GENERAL PROVISIONS.
(a) Periodic Reports.--Not later than 1 year after commencement of
operation of the Program and at least biannually thereafter, the
Secretary shall submit to the Committee on Energy and Natural Resources
of the Senate and the Committee on Energy and Commerce of the House of
Representatives a report that includes a description of the Program in
meeting the purpose and goals established by or pursuant to this
subtitle.
(b) Audits by the Comptroller General.--
(1) In general.--The programs, activities, receipts,
expenditures, and financial transactions of the Program 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.
(2) Access.--The representatives of the Government
Accountability Office shall--
(A) 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 Program, or any agent,
representative, attorney, advisor, or consultant
retained by the Program, and necessary to facilitate
the audit;
(B) be afforded full facilities for verifying
transactions with the balances or securities held by
depositories, fiscal agents, and custodians;
(C) 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
(D) have the right of access of the Comptroller
General to such information pursuant to section 716(c)
of title 31, United States Code.
(3) Assistance and cost.--
(A) In general.--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 (41 U.S.C. 5), professional
services of firms and organizations of certified public
accountants for temporary periods or for special
purposes.
(B) Reimbursement.--
(i) In general.--On the request of the
Comptroller General, the Secretary shall
reimburse the General Accountability Office for
the full cost of any audit conducted by the
Comptroller General under this subsection.
(ii) Crediting.--Such reimbursements
shall--
(I) be credited to the
appropriation account entitled
``Salaries and Expenses, Government
Accountability Office'' at the time at
which the payment is received; and
(II) remain available until
expended.
SEC. 224. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this subtitle
$2,000,000,000.
Subtitle D--Rural Energy Savings Program
SEC. 231. RURAL ENERGY SAVINGS PROGRAM.
Title VI of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7901 note et seq.) is amended by adding at the end the
following:
``SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any public power district, public utility
district, or similar entity, or any electric
cooperative described in sections 501(c)(12) or
1381(a)(2)(C) of the Internal Revenue Code of 1986,
that borrowed and repaid, prepaid, or is paying an
electric loan made or guaranteed by the Rural Utilities
Service (or any predecessor agency); or
``(B) any entity primarily owned or controlled by
an entity or entities described in subparagraph (A).
``(2) Energy efficiency measures.--The term `energy
efficiency measures' means, for or at property served by an
eligible entity, structural improvements and investments in
cost-effective, commercial off-the-shelf technologies to reduce
home, barn, and permanent farm structure energy use.
``(3) Qualified consumer.--The term `qualified consumer'
means a consumer served by an eligible entity that has the
ability to repay a loan made under subsection (c), as
determined by an eligible entity.
``(4) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Rural Utilities Service.
``(b) Loans and Grants to Eligible Entities.--
``(1) Loans authorized.--Subject to paragraph (2), the
Secretary shall make loans to eligible entities that agree to
use the loan funds to make loans to qualified consumers as
described in subsection (c) for the purpose of implementing
energy efficiency measures.
``(2) List, plan, and measurement and verification
required.--
``(A) In general.--As a condition to receiving a
loan or grant under this subsection, an eligible entity
shall--
``(i) establish a list of energy efficiency
measures that is expected to decrease energy
use or costs of qualified consumers;
``(ii) prepare an implementation plan for
use of the loan funds; and
``(iii) provide for appropriate measurement
and verification to ensure the effectiveness of
the energy efficiency loans made by the
eligible entity and that there is no conflict
of interest in the carrying out of this
section.
``(B) Revision of list of energy efficiency
measures.--An eligible entity may update the list
required under subparagraph (A)(i) to account for newly
available efficiency technologies, subject to the
approval of the Secretary.
``(C) Existing energy efficiency programs.--An
eligible entity that, on or before the date of the
enactment of this section or within 60 days after such
date, has already established an energy efficiency
program for qualified consumers may use an existing
list of energy efficiency measures, implementation
plan, or measurement and verification system of that
program to satisfy the requirements of subparagraph (A)
if the Secretary determines the list, plans, or systems
are consistent with the purposes of this section.
``(3) No interest.--A loan under this subsection shall bear
no interest.
``(4) Repayment.--A loan under this subsection shall be
repaid not more than 10 years from the date on which an advance
on the loan is first made to the eligible entity.
``(5) Loan fund advances.--The Secretary may provide
eligible entities with a schedule of not more than 10 years for
advances of loan funds, except that any advance of loan funds
to an eligible entity in any single year shall not exceed 50
percent of the approved loan amount.
``(6) Jump-start grants.--The Secretary may make grants
available to eligible entities selected to receive a loan under
this subsection in order to assist an eligible entity to defray
costs, including costs of contractors for equipment and labor,
except that no eligible entity may receive a grant amount that
is greater than four percent of the loan amount.
``(c) Loans to Qualified Consumers.--
``(1) Terms of loans.--Loans made by an eligible entity to
qualified consumers using loan funds provided by the Secretary
under subsection (b)--
``(A) may bear interest, not to exceed 3 percent,
to be used for purposes that include establishing a
loan loss reserve and to offset personnel and program
costs of eligible entities to provide the loans;
``(B) shall finance energy efficiency measures for
the purpose of decreasing energy usage or costs of the
qualified consumer by an amount such that a loan term
of not more than 10 years will not pose an undue
financial burden on the qualified consumer, as
determined by the eligible entity;
``(C) shall not be used to fund energy efficiency
measures made to personal property unless the personal
property--
``(i) is or becomes attached to real
property as a fixture; or
``(ii) is a manufactured home;
``(D) shall be repaid through charges added to the
electric bill of the qualified consumer; and
``(E) shall require an energy audit by an eligible
entity to determine the impact of proposed energy
efficiency measures on the energy costs and consumption
of the qualified consumer.
``(2) Contractors.--In addition to any other qualified
general contractor, eligible entities may serve as general
contractors.
``(d) Measurement and Verification, Training, and Technical
Assistance.--
``(1) Contract authorized.--Not later than 90 days after
the date of enactment of this section, the Secretary--
``(A) shall establish a plan for measurement and
verification, training, and technical assistance of the
program; and
``(B) may enter into 1 or more contracts for the
purposes of--
``(i) providing measurement and
verification activities; and
``(ii) developing a program to provide
technical assistance and training to the
employees of eligible entities to carry out
this section.
``(2) Use of subcontractors authorized.--A qualified entity
that enters into a contract under paragraph (1) may use
subcontractors to assist the qualified entity in performing the
contract.
``(e) Fast Start Demonstration Projects.--
``(1) Demonstration projects required.--The Secretary shall
enter into agreements with eligible entities (or groups of
eligible entities) that have energy efficiency programs
described in subsection (b)(2)(C) to establish energy
efficiency loan demonstration projects consistent with the
purposes of this section.
``(2) Evaluation criteria.--In determining which eligible
entities to award loans under this section, the Secretary shall
take into consideration entities that--
``(A) implement approaches to energy audits or
investments in energy efficiency measures that yield
measurable and predictable savings;
``(B) use measurement and verification processes to
determine the effectiveness of energy efficiency loans
made by eligible entities;
``(C) include training for employees of eligible
entities, including any contractors of such entities,
to implement or oversee the activities described in
subparagraphs (A) and (B);
``(D) provide for the participation of a majority
of eligible entities in a State;
``(E) reduce the need for generating capacity;
``(F) provide efficiency loans to--
``(i) not fewer than 20,000 consumers, in
the case of a single eligible entity; or
``(ii) not fewer than 80,000 consumers, in
the case of a group of eligible entities; and
``(G) serve areas where a large percentage of
consumers reside--
``(i) in manufactured homes; or
``(ii) in housing units that are more than
50 years old.
``(3) Deadline for implementation.--The agreements required
by paragraph (1) shall be entered into not later than 90 days
after the date of enactment of this section.
``(4) Effect on availability of loans nationally.--Nothing
in this subsection shall delay the availability of loans to
eligible entities on a national basis beginning not later than
180 days after the date of enactment of this section.
``(5) Additional demonstration project authority.--
``(A) In general.--The Secretary may conduct
demonstration projects in addition to the project
required by paragraph (1).
``(B) Inapplicability of certain criteria.--The
additional demonstration projects may be carried out
without regard to subparagraphs (D), (F), or (G) of
paragraph (2).
``(f) Additional Authority.--The authority provided in this section
is in addition to any authority of the Secretary to offer loans or
grants under any other law.
``(g) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to the Secretary for fiscal year 2010 $993,000,000 to carry out
this section, to remain available until expended.
``(2) Amounts for loans, grants, staffing.--Of the amounts
appropriated pursuant to the authorization of appropriations in
paragraph (1), the Secretary shall make available--
``(A) $755,000,000 for the purpose of covering the
cost of direct loans to eligible entities under
subsection (b) to subsidize gross obligations in the
principal amount of not to exceed $4,900,000,000;
``(B) $27,000,000 for activities under subsection
(d);
``(C) $200,000,000 for jump-start grants authorized
by subsection (b)(6); and
``(D) $1,100,000 for each of fiscal years 2010
through 2019 for 10 additional employees of the Rural
Utilities Service to carry out this section.
``(h) Effective Period.--Subject to subsection (h)(1) and except as
otherwise provided in this section, the loans, grants, and other
expenditures required to be made under this section are authorized to
be made during each of fiscal years 2010 through 2015.
``(i) Regulations.--
``(1) In general.--Except as otherwise provided in this
subsection, not later than 180 days after the date of enactment
of this section, the Secretary shall promulgate such
regulations as are necessary to implement this section.
``(2) Procedure.--The promulgation of the regulations and
administration of this section shall be made without regard
to--
``(A) chapter 35 of title 44, United States Code
(commonly known as the `Paperwork Reduction Act'); and
``(B) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804), relating to notices of proposed rulemaking and
public participation in rulemaking.
``(3) Congressional review of agency rulemaking.--In
carrying out this section, the Secretary shall use the
authority provided under section 808 of title 5, United States
Code.
``(4) Interim regulations.--Notwithstanding paragraphs (1)
and (2), to the extent regulations are necessary to carry out
any provision of this section, the Secretary shall implement
such regulations through the promulgation of an interim
rule.''.
Subtitle E--Industrial Energy Efficiency
SEC. 241. STATE PARTNERSHIP INDUSTRIAL ENERGY EFFICIENCY REVOLVING LOAN
PROGRAM.
Section 399A of the Energy Policy and Conservation Act (42 U.S.C.
6371h-1) is amended--
(1) in the section heading, by inserting ``and industry''
before the period at the end;
(2) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively; and
(3) by inserting after subsection (g) the following:
``(h) State Partnership Industrial Energy Efficiency Revolving Loan
Program.--
``(1) In general.--The Secretary shall carry out a program
under which the Secretary shall provide grants to eligible
lenders to pay the Federal share of creating a revolving loan
program under which loans are provided to commercial and
industrial manufacturers to implement commercially available
technologies or processes that significantly--
``(A) reduce systems energy intensity, including
the use of energy intensive feedstocks; and
``(B) improve the industrial competitiveness of the
United States.
``(2) Eligible lenders.--To be eligible to receive cost-
matched Federal funds under this subsection, a lender shall--
``(A) be a community and economic development
lender that the Secretary certifies meets the
requirements of this subsection;
``(B) lead a partnership that includes
participation by, at a minimum--
``(i) a State government agency; and
``(ii) a private financial institution or
other provider of loan capital;
``(C) submit an application to the Secretary, and
receive the approval of the Secretary, for cost-matched
Federal funds to carry out a loan program described in
paragraph (1); and
``(D) ensure that non-Federal funds are provided to
match, on at least a dollar-for-dollar basis, the
amount of Federal funds that are provided to carry out
a revolving loan program described in paragraph (1).
``(3) Award.--The amount of cost-matched Federal funds
provided to an eligible lender shall not exceed $100,000,000
for any fiscal year.
``(4) Recapture of awards.--
``(A) In general.--An eligible lender that receives
an award under paragraph (1) shall be required to repay
to the Secretary an amount of cost-match Federal funds,
as determined by the Secretary under subparagraph (B),
if the eligible lender is unable or unwilling to
operate a program described in this subsection for a
period of not less than 10 years beginning on the date
on which the eligible lender first receives funds made
available through the award.
``(B) Determination by secretary.--The Secretary
shall determine the amount of cost-match Federal funds
that an eligible lender shall be required to repay to
the Secretary under subparagraph (A) based on the
consideration by the Secretary of--
``(i) the amount of non-Federal funds
matched by the eligible lender;
``(ii) the amount of loan losses incurred
by the revolving loan program described in
paragraph (1); and
``(iii) any other appropriate factor, as
determined by the Secretary.
``(C) Use of recaptured cost-match federal funds.--
The Secretary may distribute to eligible lenders under
this subsection each amount received by the Secretary
under this paragraph.
``(5) Eligible projects.--A program for which cost-matched
Federal funds are provided under this subsection shall be
designed to accelerate the implementation of industrial and
commercial applications of technologies or processes that--
``(A) improve energy efficiency;
``(B) enhance the industrial competitiveness of the
United States; and
``(C) achieve such other goals as the Secretary
determines to be appropriate.
``(6) Evaluation.--The Secretary shall, to the maximum
extent practicable, evaluate applications for cost-matched
Federal funds under this subsection taking into consideration--
``(A) the description of the program to be carried
out with the cost-matched Federal funds;
``(B) the commitment to provide non-Federal funds
in accordance with paragraph (2)(D);
``(C) program sustainability;
``(D) the capability of the applicant;
``(E) the quantity of energy savings or energy
feedstock minimization;
``(F) percentage electricity rate increases in
areas to be served by the applicant that are
attributable to implementation of the Federal diverse
energy standard established under section 610 of the
Public Utility Regulatory Policies Act of 1978;
``(G) the ability to fund energy efficient projects
on a timely basis after the date of the grant award;
and
``(H) such other factors as the Secretary
determines appropriate.
``(7) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $500,000,000
for each of fiscal years 2010 through 2014.''.
Subtitle F--Appliance and Equipment Efficiency Standards
SEC. 251. APPLIANCE AND EQUIPMENT EFFICIENCY.
(a) Coverage.--Section 322(a) of the Energy Policy and Conservation
Act (42 U.S.C. 6292(a)) is amended--
(1) by designating paragraph (20) as paragraph (21); and
(2) by inserting after paragraph (19) the following:
``(20) Computer monitors and displays.''.
(b) Energy Conservation Standards.--Section 325(l) of the Energy
Policy and Conservation Act (42 U.S.C. 6295(l)) is amended--
(1) by striking ``paragraph (19)'' each place it appears
and inserting ``paragraph (21)'';
(2) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``may'' and inserting ``shall''; and
(3) in paragraph (3), insert ``and computer monitors and
displays'' after ``television sets''.
(c) Definition of Industrial Equipment.--Section 340(2)(B) of the
Energy Policy and Conservation Act (42 U.S.C. 6311(2)(B)) is amended--
(1) in clause (xi), by striking ``and'' at the end;
(2) in clause (xii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(xiii) other equipment.''.
(d) Covered Equipment.--Section 342 of the Energy Policy and
Conservation Act (42 U.S.C. 6313) is amended by adding at the end the
following:
``(g) Covered Equipment.--The Secretary shall establish an energy
conservation standard for each type or class of covered equipment.''.
(e) Report on Efficiency Standards for Additional Consumer Products
and Commercial and Industrial Equipment.--Not later than 1 year after
the date of enactment of this Act, the Secretary of Energy shall submit
to the Committee on Energy and Commerce of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate a
report that identifies--
(1) consumer products and commercial and industrial
equipment not covered by efficiency standards (as of the date
of enactment of this Act) that have significant national energy
savings potential, as determined by the Secretary;
(2) levels of potential energy savings for products and
equipment identified under paragraph (1);
(3) which of the products and equipment identified under
paragraph (1) are likely, prima facie, to qualify as covered
under authority of the Secretary in existence on the date of
enactment of this Act, and a plan for formal review of those
products and equipment under existing authority; and
(4) which of the products identified under paragraph (1)
require additional authority for the Secretary to be covered.
SEC. 252. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
Section 553(b) of the National Energy Conservation Policy Act (42
U.S.C. 8259b(b)) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Requirement.--Except as provided in paragraph (2),
beginning on the date of enactment of the Practical Energy and
Climate Plan Act of 2010, the head of an agency shall procure,
for not less than 95 percent of the new contract actions, task
orders, and delivery orders for products and services (other
than for weapon systems) for the agency--
``(A) an Energy Star rated product or product with
better energy efficiency than an Energy Star rated
product;
``(B) a FEMP designated product;
``(C) if neither an Energy Star product nor a FEMP
designated product exist, a similarly designated
product, as determined by the head of the agency; or
``(D) a designated innovative product to enhance
energy savings or production of on-site energy in
furtherance of technology demonstration and
commercialization, as determined by the head of the
agency.''; and
(2) by adding at the end the following:
``(4) Best management practices.--The head of an agency
shall implement best management practices for the energy-
efficient management of servers and Federal data centers of the
agency.''.
TITLE III--DIVERSE DOMESTIC POWER
SEC. 301. FEDERAL DIVERSE ENERGY STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end
the following:
``SEC. 610. FEDERAL DIVERSE ENERGY STANDARD.
``(a) Definitions.--In this section:
``(1) Advanced coal generation.--The term `advanced coal
generation' means the generation of electricity produced from
coal by a new or existing coal generating facility that
captures and permanently sequesters, stores (including for
enhanced oil recovery), or reuses (in a manner so that reuse
provides equivalent long-term sequestration as from
sequestration or storage) at least 80 percent of greenhouse
gases produced by the facility.
``(2) Base quantity of electricity.--
``(A) In general.--The term `base quantity of
electricity' means the total quantity of electricity
sold by an electric utility to electric consumers in a
calendar year.
``(B) Exclusion.--The term `base quantity of
electricity' does not include electricity generated by
a hydroelectric facility (but excluding qualified
hydropower) owned by an electric utility or sold under
contract or rate order to an electric utility to meet
the needs of the retail customers of the utility.
``(3) Distributed generation facility.--The term
`distributed generation facility' means a facility at or near a
customer site that provides electric energy to 1 or more
customers for purposes other than resale other than to a
utility through a net metering arrangement.
``(4) Diverse energy.--The term `diverse energy' means
electric energy generated at a facility (including a
distributed generation facility) from--
``(A) advanced coal generation;
``(B) biomass;
``(C) coal mine methane;
``(D) end-user efficiency savings;
``(E) efficiency savings in power generation;
``(F) geothermal energy;
``(G) landfill and biogas;
``(H) marine and hydrokinetic renewable energy (as
defined in section 632 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17211));
``(I) qualified hydropower;
``(J) qualified nuclear energy;
``(K) solar energy;
``(L) waste-to-energy;
``(M) wind energy; and
``(N) any other energy source that will result in
at least a 80-percent reduction in greenhouse gas
emissions compared to average emissions of freely
emitting sources in the calendar year prior to
certification of the Secretary, as determined by the
Secretary through rulemaking.
``(5) End-user efficiency savings.--
``(A) In general.--The term `end-user efficiency
savings' means--
``(i) the quantity of electricity
consumption avoided at a facility of an end-use
consumer of electricity served by an electric
utility that results from energy savings
programs implemented by the electric utility;
as compared to
``(ii) the average electricity consumption
during the preceding 5-year period.
``(B) Regulations.--Not later than 180 days after
the date of enactment of this section, the Secretary
shall issue regulations to establish--
``(i) procedures and standards for defining
and measuring electricity savings that will be
eligible for meeting requirements of the
Federal diverse energy standard established
under this subsection;
``(ii) procedures to exclude erroneous
attribution of energy savings, such as savings
primarily due to factors exogenous to electric
utility programs; and
``(iii) procedures for independent
monitoring and verification of energy
efficiency savings.
``(C) Retrofit programs.--The Secretary shall, to
the maximum extent practicable, consider actions taken
to obtain end-user efficiency savings as actions for
which assistance may be provided under the programs
established under sections 222 and 231 of the Practical
Energy and Climate Plan Act of 2010.
``(D) Measurement, verification, and
certification.--Efficiency improvements described in
subparagraph (A) shall be certified by the Secretary
and subject to measurement and verification procedures
established under subparagraph (B).
``(6) Efficiency savings in power generation.--
``(A) In general.--The term `energy savings in
power generation' means the quantity of electricity
generated for sale at an existing fossil fuel
generation facility that is greater than the average
quantity of electricity generated at the facility
during the preceding 5-year period that is attributable
to permanent efficiency improvements (such as the
increment of electricity output of permanent facility
upgrades to improve heat rate and resulting from a new
combined heat and power system that is attributable to
the facility improvements) made on or after the date of
enactment of this section, if there is no increase in
greenhouse gas emissions associated with the operation
of the efficiency improvements as compared to the
average greenhouse gas emissions during the preceding
3-year period.
``(B) Measurement and certification.--Efficiency
improvements described in subparagraph (A) shall be
certified by the Secretary or the Commission.
``(7) Qualified hydropower.--
``(A) In general.--The term `qualified hydropower'
means--
``(i) additional energy generated as a
result of permanent efficiency improvements or
capacity additions made during the preceding 3-
year period beginning on or after the date of
enactment of this section;
``(ii) additions of capacity made to
existing nonhydroelectric dams; and
``(iii) new hydroelectric dams.
``(B) Exclusion.--The term `qualified hydropower'
does not include additional energy generated as a
result of operational changes not directly associated
with efficiency improvements or capacity additions.
``(C) Measurement and certification.--Efficiency
improvements and capacity additions described in
subparagraph (A) shall be--
``(i) in the case of existing hydroelectric
facilities, measured on the basis of the same
water flow information used to determine a
historic average annual generation baseline;
and
``(ii) in the case of existing
hydroelectric and nonhydroelectric facilities,
certified by the Secretary or the Commission.
``(8) Qualified nuclear energy.--The term `qualified
nuclear energy' means energy from a nuclear generating unit
placed in service on or after the date of enactment of this
section.
``(b) Diverse Energy Requirement.--
``(1) Requirement.--
``(A) In general.--Subject to subparagraph (B),
each electric utility that sells electricity to
electric consumers for a purpose other than resale
shall obtain a percentage of the base quantity of
electricity the electric utility sells to electric
consumers in any calendar year from diverse energy.
``(B) Percentage.--Except as provided in section
611, the percentage obtained in a calendar year under
subparagraph (A) shall not be less than the amount
specified in the following table:
``Calendar year: Minimum annual percentage:
2015 through 2019.................... 15
2020 through 2024.................... 20
2025 through 2029.................... 25
2030 through 2049.................... 30
2050................................. 50.
``(C) Interim reports.--The Secretary shall make
periodic interim reports on deployment of diverse
energy sources, including recommendations to utilities.
``(2) Means of compliance.--An electric utility shall meet
the requirements of paragraph (1) by--
``(A) submitting to the Secretary diverse energy
credits issued under subsection (c);
``(B) making alternative compliance payments to the
Secretary at a rate determined by the Secretary but not
less than 5.0 cents per kilowatt hour (as adjusted for
inflation under subsection (f)) if the electric utility
does not elect to petition the Secretary to waive the
requirements under subsection (d)(3)(C); or
``(C) a combination of activities described in
subparagraphs (A) and (B).
``(3) Phase-in.--The Secretary shall prescribe, by
regulation, a reasonable phase-in of the requirements of
paragraph (1) as the requirements apply to an electric utility
that becomes subject to this section on or after January 1,
2013.
``(c) Federal Diverse Energy Credit Trading Program.--
``(1) In general.--Not later than January 1, 2011, the
Secretary shall establish a Federal diverse energy credit
trading program under which electric utilities shall submit to
the Secretary Federal diverse energy credits to certify the
compliance of the electric utilities with subsection (b)(1).
``(2) Administration.--As part of the program, the
Secretary shall--
``(A) issue diverse energy credits to generators of
electric energy from diverse energy;
``(B) to the extent that diverse sources of
electricity are used in combination with other sources
of energy, issue credits only to the extent that the
electricity generated is from diverse energy resources;
``(C) issue diverse energy credits to electric
utilities associated with substantially similar State
diverse energy standard compliance mechanisms pursuant
to subsection (g);
``(D) ensure that a kilowatt hour, including the
associated diverse energy credit shall be used only
once for purposes of compliance with this Act;
``(E) ensure that, with respect to a purchaser
that, as of the date of enactment of this section, has
a purchase agreement from a diverse energy facility
placed in service before that date, the credit
associated with the generation of diverse energy under
the contract is issued to the purchaser of the electric
energy to the extent that the contract does not already
provide for the allocation of the Federal credit; and
``(F) during any of calendar years 2015 through
2029, issue credits per kilowatt hour for demonstration
coal generation of electricity produced from coal by a
new or existing coal generating facility that captures
and permanently sequesters, stores, or reuses at least
65 percent of greenhouse gases produced by the
facility, which shall be equal to the product obtained
by multiplying--
``(i) the kilowatt hours of electricity
generated by a facility and supplied to the
grid during the prior year; by
``(ii) during the same year, the ratio of--
``(I) the quantity of carbon
dioxide captured from the facility and
sequestered; bears to
``(II) the sum of--
``(aa) the quantity of
carbon dioxide captured from
the facility and sequestered;
and
``(bb) the quantity of
carbon dioxide emitted from the
facility.
``(G) Temporary waiver.--Subject to approval by the
Secretary, grant deferrals for a maximum of 3 years for
submission of diverse energy credits to comply with
subsection (b) upon approval of a plan--
``(i) submitted by the Governor of a State
that demonstrates a State program will achieve
equivalent levels of diverse energy deployment
and usage by the end of the deferral period; or
``(ii) submitted by a utility that
demonstrates, as a consequence of having
facilities under construction at the time the
plan is submitted, will achieve required levels
of diverse energy deployment by the end of the
deferral period.
``(3) Credit trading.--
``(A) In general.--Subject to subparagraph (B), an
electric utility that holds clean diverse credits in
excess of the quantity of credits needed to comply with
subsection (b) may transfer or sell the credits to
another electric utility in the same utility holding
company system or another electric utility.
``(B) Limitations.--
``(i) End-user energy savings.--Credits
issued for end-user energy savings may not be
transferred or sold outside the State in which
qualified electricity savings occur.
``(ii) Efficiency savings in power
generation.--Credits issued for efficiency
savings in power generation may not be
transferred or sold outside the State in which
the electricity is generated or the State in
which the electricity is sold.
``(iii) Intrastate trading.--Nothing in
this subparagraph prohibits the trading or sale
of credits within the jurisdiction of a State.
``(4) Delegation of market function.--
``(A) In general.--The Secretary may delegate to--
``(i) an appropriate market-making entity
the administration of a national diverse energy
credit market for purposes of creating a
transparent national market for the sale or
trade of diverse energy credits; and
``(ii) regional entities the tracking of
dispatch of diverse energy generation.
``(B) Administration.--Any delegation under
subparagraph (A) shall ensure that the tracking and
reporting of information concerning the dispatch of
diverse energy generation is transparent, verifiable,
and independent of any generation or load interests
with obligations under this section.
``(d) Enforcement.--
``(1) Civil penalties.--Any electric utility that fails to
meet the requirements of subsection (b) shall be subject to a
civil penalty.
``(2) Amount of penalty.--The amount of the civil penalty
shall be equal to the product obtained by multiplying--
``(A) the number of kilowatt-hours of electric
energy sold to electric consumers in violation of
subsection (b); by
``(B) 200 percent of the value of the alternative
compliance payment, as adjusted for inflation under
subsection (f).
``(3) Mitigation or waiver.--
``(A) Penalty.--
``(i) In general.--The Secretary may
mitigate or waive a civil penalty under this
subsection if the electric utility is unable to
comply with subsection (b) due to a reason
outside of the reasonable control of the
electric utility.
``(ii) Amount.--The Secretary shall reduce
the amount of any penalty determined under
paragraph (2) by the amount paid by the
electric utility to a State for failure to
comply with the requirement of a State clean or
renewable energy program if the State
requirement is greater than the applicable
requirement of subsection (b).
``(B) Requirement.--The Secretary may waive the
requirements of subsection (b) for a period of up to 5
years with respect to an electric utility if the
Secretary determines that the electric utility cannot
meet the requirements due to a hurricane, tornado,
fire, flood, earthquake, ice storm, or other natural
disaster or act of God beyond the reasonable control of
the utility.
``(4) Procedure for assessing penalty.--The Secretary shall
assess a civil penalty under this subsection in accordance with
the procedures prescribed by section 333(d) of the Energy
Policy and Conservation Act (42 U.S.C. 6303(d)).
``(e) Alternative Compliance Payments.--
``(1) In general.--An electric utility may satisfy the
requirements of subsection (b), in whole or in part, by
submitting in accordance with this subsection, in lieu of each
Federal diverse energy credit or megawatt hour of demonstrated
total annual electricity savings that would otherwise be due, a
payment equal to the amount required under subsection (b) in
accordance with such regulations as the Secretary may
promulgate.
``(2) Payment to state funds.--Payments made under this
subsection shall be made directly to the State in which the
electric utility is located, if the payments are deposited
directly into a fund within the treasury of the State for use
in accordance with paragraph (3).
``(3) Use of grants.--The Governor of any State may expend
amounts in a State diverse energy escrow account solely for
purposes of--
``(A) increasing the quantity of electric energy
produced from a diverse energy source in the State; and
``(B) offsetting the costs of carrying out this
section paid by electric consumers in the State through
energy efficiency investments.
``(4) Information and reports.--As a condition of providing
payments to a State under this subsection, the Secretary may
require the Governor to keep such accounts or records, and
furnish such information and reports, as the Secretary
determines are necessary and appropriate for determining
compliance with this subsection.
``(f) Inflation Adjustment.--Not later than December 31 of each
year beginning in 2011, the Secretary shall adjust for inflation the
rate of the alternative compliance payment under subsection (b)(2)(B).
``(g) State Programs.--
``(1) In general.--Subject to paragraph (2), nothing in
this section diminishes any authority of a State or political
subdivision of a State to adopt or enforce any law or
regulation respecting diverse energy or energy efficiency, or
the regulation of electric utilities.
``(2) Compliance.--Except as provided in subsection (d)(3),
no such law or regulation shall relieve any person of any
requirement otherwise applicable under this section.
``(3) Coordination.--The Secretary, in consultation with
States having such diverse energy programs, shall, to the
maximum extent practicable, facilitate coordination between the
Federal program and State programs.
``(4) Regulations.--
``(A) In general.--The Secretary, in consultation
with States, shall promulgate regulations to ensure
that an electric utility that is subject to the
requirements of this section and is subject to a State
renewable energy or diverse energy standard receives
diverse energy credits if--
``(i) the electric utility complies with
the State standard by generating or purchasing
diverse energy or renewable energy certificates
or credits representing diverse energy; or
``(ii) the State imposes or allows other
mechanisms for achieving the State standard,
including the payment of taxes, fees,
surcharges, or other financial obligations.
``(B) Amount of credits.--The amount of credits
received by an electric utility under this subsection
shall equal--
``(i) in the case of subparagraph (A)(i),
the quantity of diverse energy resulting from
the generation or purchase by the electric
utility of diverse energy; and
``(ii) in the case of subparagraph (A)(ii),
the pro rata share of the electric utility,
based on the contributions to the mechanism
made by the electric utility or customers of
the electric utility, in the State, of the
quantity of diverse energy resulting from those
mechanisms.
``(C) Prohibition on double counting.--The
regulations promulgated under this paragraph shall
ensure that a kilowatt-hour associated with a diverse
energy credit issued pursuant to this subsection shall
not be used for compliance with this section more than
once.
``(h) Reconsideration.--Not later than January 15, 2017, and every
5 years thereafter, the Secretary shall review and make recommendations
to Congress on the program established under this section.
``(i) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall promulgate regulations
implementing this section.
``(j) Termination of Authority.--This section and the authority
provided by this section terminate on December 31, 2051.''.
(b) Table of Contents Amendment.--The table of contents of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601)
is amended by adding at the end of the items relating to title VI the
following:
``Sec. 610. Federal diverse energy standard.''.
SEC. 302. FOSSIL FUEL GENERATING FACILITY RETIREMENT PROGRAM.
(a) In General.--The Administrator of the Environmental Protection
Agency (referred to in this section as the ``Administrator''), in
consultation with the Secretary of Energy, shall establish an incentive
program to permanently retire conventional coal plants with the largest
pollution-related liabilities.
(b) Retirement Agreement.--
(1) In general.--Any electric generating unit that
voluntarily enters into a binding retirement agreement with the
Administrator to permanently retire the unit not later than
December 31, 2018, shall be eligible for regulatory relief
described in subsection (c).
(2) Requirements.--The Administrator shall establish such
requirements as are necessary to ensure that a retirement
agreement described in paragraph (1) establishes a legally
binding requirement that the electric generating unit subject
to the agreement does not operate after January 1, 2019.
(3) Prohibitions.--It shall be unlawful for any person to
operate an electric generating unit subject to a retirement
agreement under this section--
(A) after January 1, 2019; or
(B) in excess of the average annual electrical
production of the electric generating unit during the
3-year period ending on the date of enactment of this
Act.
(4) Waiver.--The Administrator may temporarily waive any
provision of this subsection if the Administrator determines
that national or regional energy disruptions will occur if a
waiver is not provided.
(c) Regulatory Relief.--The early retirement incentive program
established under this section shall authorize an alternative
compliance mechanism for any regulation of electric generating units
pursuant to--
(1) new source review requirements under the Clean Air Act
(42 U.S.C. 7401 et seq.);
(2) existing unit performance standards for greenhouse gas
emissions under section 111(d) of the Clean Air Act (42 U.S.C.
7411(d));
(3) regulation of hazardous air pollutants under section
112 of the Clean Air Act (42 U.S.C. 7412);
(4) the final rule entitled ``Regional Haze Regulations and
Guidelines for Best Available Retrofit Technology (BART)
Determinations'' (70 Fed. Reg. 39104 (July 6, 2005));
(5) regulation of coal combustion waste water discharges
from thermal generating units under title III of the Federal
Water Pollution Control Act (33 U.S.C. 1311 et seq.); and
(6) regulation of cooling water intake structures under
section 316(b) of the Federal Water Pollution Control Act (33
U.S.C. 1326(b)).
SEC. 303. FUNDING FOR LOAN GUARANTEES FOR ADVANCED NUCLEAR ENERGY
FACILITIES.
(a) In General.--Section 1704 of the Energy Policy Act of 2005 (42
U.S.C. 16514) is amended--
(1) in the section heading, by striking ``authorization of
appropriations'' and inserting ``funding'';
(2) in subsection (a), in the subsection heading, by
striking ``In General'' and inserting ``Authorization of
Appropriations''; and
(3) by adding at the end the following:
``(c) Funding for Loan Guarantees for Advanced Nuclear Energy
Facilities.--
``(1) In general.--On October 1, 2010, out of any funds in
the Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary for the cost of loan
guarantees to promote the development of advanced nuclear
energy facilities described in section 1703(b)(4) $360,000,000,
to remain available until expended.
``(2) Additionality.--Funds provided under this subsection
are in addition to authorities provided in any other Act.
``(3) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use for the cost
of the loan guarantees described in paragraph (1) the funds
transferred under that paragraph, without further
appropriation.''.
(b) Conforming Amendment.--The table of contents in section 1(b) of
the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 594) is
amended by striking the item relating to section 1704 and inserting the
following:
``Sec. 1704. Funding.''.
TITLE IV--MEASUREMENT AND REVIEW OF ENERGY AND CLIMATE PROGRAMS
SEC. 401. MEASUREMENT AND REVIEW OF ENERGY AND CLIMATE CHANGE PROGRAMS.
(a) In General.--Not later than 90 days after the date of enactment
of this Act, the Secretary of Energy, in consultation with the
Administrator of the Environmental Protection Agency and the Secretary
of Transportation, shall submit to the appropriate committees of
Congress a list of Federal programs for which the Comptroller General
of the United States shall carry out a study that monitors the progress
of the programs in meeting the energy security and greenhouse gas
reduction goals under this Act.
(b) Study.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act and every 2 years thereafter, the
Comptroller General of the United States shall--
(A) carry out a study that monitors the progress of
the programs described in subsection (a); and
(B) submit to the appropriate committees of
Congress a report containing the findings of the study
carried out under this subsection.
(2) Contents.--A study and report carried out under
paragraph (1) shall include--
(A) an examination of the effects the programs
described in subsection (a) have had on--
(i) the consumption, production, and import
of oil and petroleum products;
(ii) national energy production and demand;
(iii) greenhouse gas emissions; and
(iv) the advancement and deployment of
technology; and
(B) any recommendations of the Comptroller General
on improving the performance of the programs.
<all>