[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 807 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 807

     To reduce fuel prices and improve national energy security by 
   increasing domestic supply, reducing excessive speculation in the 
 markets, and promoting long-term security through alternative energy 
                    sources, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 2, 2009

 Mr. Nelson of Nebraska introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To reduce fuel prices and improve national energy security by 
   increasing domestic supply, reducing excessive speculation in the 
 markets, and promoting long-term security through alternative energy 
                    sources, 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 ``Sound Management 
of America's Resources and Technologies for Energy Act of 2009'' or the 
``SMART Energy Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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

Sec. 101. Energy Superhighway.
Sec. 102. Authorization to recover costs of incremental transfer 
                            capability to facilitate renewable energy 
                            development and deployment.
Sec. 103. Coordination of Federal authorizations for transmission 
                            facilities.
            TITLE II--INVESTING IN AMERICA'S ENERGY SECURITY

                 Subtitle A--Energy Security Trust Fund

Sec. 201. Energy Security Trust Fund.
Sec. 202. Tax on crude oil and natural gas produced from the outer 
                            Continental Shelf in the Gulf of Mexico.
                           Subtitle B--Biogas

Sec. 211. Credit for production of biogas and syngas from certain 
                            renewable feedstocks.
  Subtitle C--Investing in Biofuels and Renewable Fuel Infrastructure

Sec. 221. Definition of renewable biomass.
Sec. 222. Loan guarantees for renewable energy pipelines.
Sec. 223. Biofuels infrastructure.
Sec. 224. Definition of lifecycle greenhouse gas emissions.
Sec. 225. Biofuels Revolving Loan Fund.
                     Subtitle D--Energy Efficiency

                            Part I--Vehicles

Sec. 231. Lightweight materials research and development.
Sec. 232. Federal Government gasoline consumption.
Sec. 233. Credit for fuel-efficient motor vehicles.
               Part II--Other Energy Efficiency Programs

Sec. 241. Energy efficiency and conservation block grants.
Sec. 242. Smart growth.
           Subtitle E--Incentives for Innovative Technologies

Sec. 251. Security for loan guarantees for innovative technology 
                            projects.
            TITLE III--EXPANDING DOMESTIC ENERGY PRODUCTION

   Subtitle A--Oil and Gas Production on the Outer Continental Shelf

Sec. 301. Production of oil and gas on outer Continental Shelf.
Sec. 302. Production incentives program.
                          Subtitle B--Nuclear

Sec. 311. Sense of the Senate on scalable, modular light-water nuclear 
                            reactors and electric plants.
Sec. 312. Nuclear Regulatory Commission.
Sec. 313. Nuclear energy workforce.
Sec. 314. Interagency Working Group to promote domestic manufacturing 
                            base for nuclear components and equipment.
Sec. 315. Spent fuel recycling program.
Sec. 316. Standby support for certain nuclear plant delays.
Sec. 317. Incentives for innovative technologies.
Sec. 318. Modification of credit for production from advanced nuclear 
                            power facilities.
Sec. 319. 5-year accelerated depreciation for new nuclear power 
                            facilities.
                  TITLE IV--ENSURING MARKET INTEGRITY

Sec. 401. Definitions.
Sec. 402. Definition of energy commodity.
Sec. 403. Speculative limits and transparency of off-shore trading.
Sec. 404. Disaggregation of index funds and other data in energy and 
                            agriculture markets.
Sec. 405. Rulemaking with respect to reporting requirements of index 
                            traders and swap dealers.
Sec. 406. Transparency and recordkeeping authorities.
Sec. 407. Trading limits to prevent excessive speculation.
Sec. 408. Modifications to core principles applicable to position 
                            limits for contracts in agricultural and 
                            energy commodities.
Sec. 409. Administration of Commodity Futures Trading Commission.
Sec. 410. Review of prior actions.
Sec. 411. Review of over-the-counter markets.
Sec. 412. Studies; reports.
Sec. 413. Over-the-counter authority.
Sec. 414. Expedited procedures.
Sec. 415. Treatment of emission allowances and offset credits.
Sec. 416. Inspector General of Commodity Futures Trading Commission.
TITLE V--NATIONAL COMMISSION ON ENERGY POLICY AND GLOBAL CLIMATE CHANGE

Sec. 501. Establishment of Commission.
Sec. 502. Purposes.
Sec. 503. Composition of Commission.
Sec. 504. Functions of Commission.
Sec. 505. Powers of Commission.
Sec. 506. Reports of Commission; termination.
Sec. 507. Staff of Commission.
Sec. 508. Compensation and travel expenses.
Sec. 509. Meetings.
Sec. 510. Authorization of appropriations.
Sec. 511. Termination.

                      TITLE I--ENERGY SUPERHIGHWAY

SEC. 101. ENERGY SUPERHIGHWAY.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding at the end the following:

``SEC. 224. ENERGY SUPERHIGHWAY.

    ``(a) Purpose.--The purpose of this section is to invest in and 
construct an interstate Energy Superhighway that--
            ``(1) contains high-voltage electricity transmission lines 
        (with at least a 400-kilovolt capacity), including direct 
        current lines where appropriate;
            ``(2) has a siting preference that uses existing Federal, 
        State, or other rights-of-way (such as the Interstate System, 
        State roads, railroads, pipelines, and existing transmission 
        infrastructure or Federal land); and
            ``(3) uses smart grid technologies for monitoring, 
        reliability, operability, and security and to detect and locate 
        outage, maintenance, repair, and other similar needs.
    ``(b) Definitions.--In this section:
            ``(1) Commission.--The term `Commission' means the Federal 
        Energy Regulatory Commission, in consultation with the 
        Secretary of Transportation and the Secretary of Energy.
            ``(2) Energy superhighway.--The term `Energy Superhighway' 
        means the Energy Superhighway described in subsection (a) that 
        is established under this section.
            ``(3) Interstate system.--The term `Interstate System' has 
        the meaning given the term in section 101(a) of title 23, 
        United States Code.
            ``(4) Joint resolution.--The term `joint resolution' means 
        only a joint resolution introduced during the 30-day period 
        beginning on the date on which a report referred to in 
        subsection (d)(1) is received by Congress (excluding days 
        either House of Congress is adjourned for more than 3 days 
        during a session of Congress), the matter after the resolving 
        clause of which is as follows: `That Congress disapproves the 
        plan for establishing an Energy Superhighway described in a 
        report required under section 224(d)(1) of the Federal Power 
        Act submitted by the Federal Energy Regulatory Commission to 
        Congress on ____, and the plan for establishing the Energy 
        Superhighway shall have no force or effect.' (The blank space 
        being appropriately filled in).
            ``(5) Secondary line connection.--The term `secondary line 
        connection' means--
                    ``(A) a new transmission line built to connect to 
                the Energy Superhighway; and
                    ``(B) an existing transmission line rerouted or 
                otherwise modified to connect to the Energy 
                Superhighway.
    ``(c) Authority.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, for the exclusive purpose of using funds provided under 
        this section, the Commission shall have exclusive authority 
        over all siting, permitting, planning, and construction 
        decisions and actions necessary to establish an Energy 
        Superhighway.
            ``(2) Administration.--In establishing the Energy 
        Superhighway, the Commission shall use a siting preference that 
        utilizes existing Federal, State, or other rights-of-way (such 
        as the Interstate System, State roads, railroads, and existing 
        transmission infrastructure on Federal land), unless the 
        Commission otherwise provides notice in the plan required under 
        subsection (d).
    ``(d) Plan.--
            ``(1) Reports.--
                    ``(A) Initial plan.--Not later than 1 year after 
                the date of enactment of this section, before any plan 
                establishing an Energy Superhighway can take effect, 
                the Commission shall submit to the Committee on 
                Appropriations of the Senate, the Committee on 
                Appropriations of the House of Representatives, the 
                Committee on Energy and Natural Resources of the 
                Senate, the Committee on Energy and Commerce of the 
                House of Representatives, and the President a plan for 
                establishing the Energy Superhighway.
                    ``(B) Modified plan.--If Congress enacts a joint 
                resolution of disapproval of the plan submitted under 
                subparagraph (A), not later than 180 days after the 
                date of enactment of the joint resolution of 
                disapproval, before any plan establishing an Energy 
                Superhighway can take effect, the Commission shall 
                submit to each of the Committees described in 
                subparagraph (A) and the President a modified plan for 
                establishing the Energy Superhighway.
                    ``(C) Administration.--In developing a plan for an 
                Energy Superhighway, the Commission shall, to the 
                maximum extent practicable--
                            ``(i) conduct an open, transparent, and 
                        participatory process that considers input from 
                        all interested parties;
                            ``(ii) plan for the construction of at 
                        least 10,000 miles of high-voltage transmission 
                        lines across the United States, including the 
                        use of direct current lines where appropriate;
                            ``(iii) use existing Federal, State, or 
                        other rights-of-way (such as the Interstate 
                        System, State roads, railroads, pipelines, and 
                        existing transmission infrastructure on Federal 
                        land), to the maximum extent practicable;
                            ``(iv) plan on a national scale, or with a 
                        national focus, to seek to provide 
                        interconnections between the eastern and 
                        western areas of the United States where 
                        practical, beneficial, and feasible;
                            ``(v) maintain costs per mile that are 
                        within reasonable estimates of costs (including 
                        cost reduction through the use of smart grid 
                        technology and related communications systems);
                            ``(vi) develop a bidding process for the 
                        construction of the components of the Energy 
                        Superhighway;
                            ``(vii) examine the feasibility of burying 
                        high-voltage transmission lines (particularly 
                        in highway medians), using other options to 
                        standing towers, or taking other actions to 
                        address safety and other concerns relating to 
                        placing high-voltage transmission lines within 
                        existing rights-of-way;
                            ``(viii) include provisions to address the 
                        need for flexibility in the planning and 
                        construction process; and
                            ``(ix) allocate the costs of establishing 
                        the Energy Superhighway in a manner that 
                        ensures costs are shared by the Federal 
                        Government and among as many States and public 
                        and private entities (including among 
                        ratepayers) that the Commission determines have 
                        reasonable interests in, or would benefit from, 
                        the Energy Superhighway, except that the 
                        Federal share shall not exceed 90 percent.
            ``(2) Joint resolutions of disapproval.--
                    ``(A) In general.--The plan of the Commission for 
                establishing an Energy Superhighway shall not take 
                effect (or continue) if Congress enacts a joint 
                resolution of disapproval of each plan submitted under 
                paragraph (1).
                    ``(B) Report.--If Congress enacts a joint 
                resolution of disapproval of the plan submitted under 
                paragraph (1)(A), as soon practicable after the date of 
                enactment of the joint resolution of disapproval, the 1 
                or more of the Committees described in paragraph (1)(A) 
                shall submit to the Commission a report that--
                            ``(i) describes the concerns of the 
                        Committees with the plan; and
                            ``(ii) makes any recommendations for a 
                        modified plan for establishing the Energy 
                        Superhighway.
                    ``(C) Procedure.--
                            ``(i) In general.--Subject to clause (ii), 
                        the procedures described in subsections (b) 
                        through (g) of section 802 of title 5, United 
                        States Code, shall apply to the consideration 
                        of a joint resolution under this paragraph.
                            ``(ii) Terms.--For purposes of this 
                        paragraph--
                                    ``(I) the reference to `section 
                                801(a)(1)' in section 802(b)(2)(A) of 
                                that title shall be considered to refer 
                                to paragraph (1); and
                                    ``(II) the reference to `section 
                                801(a)(1)(A)' in section 802(e)(2) of 
                                that title shall be considered to refer 
                                to paragraph (1).
            ``(3) Implementation.--If a joint resolution of disapproval 
        of each plan submitted under paragraph (1) is not enacted in 
        accordance with paragraph (2), not later than 18 months after 
        the final date for consideration by Congress of the joint 
        resolution of disapproval of the modified plan submitted under 
        paragraph (1)(B), the Commission shall commence construction of 
        the Energy Superhighway.
    ``(e) Secondary Line Connections to Energy Superhighway.--
            ``(1) In general.--Subject to paragraph (2), the Commission 
        shall ensure that each secondary line connection to the Energy 
        Superhighway is sited and constructed in accordance with 
        applicable siting laws.
            ``(2) Backstop authority.--The Commission may site the 
        secondary line connection to the Energy Superhighway in a State 
        (including through use of eminent domain) if, not later than 1 
        year after the date of the filing of an application for the 
        siting, the State or State Commission--
                    ``(A) denies the application for siting and the 
                Commission determines that the denial is contrary to 
                the public interest (including the interest in 
                increased electricity production from renewable 
                resources) or detrimental to the Energy Superhighway; 
                or
                    ``(B) is otherwise unable to approve the siting 
                application and the Commission determines that the 
                siting is in the public interest or beneficial to the 
                Energy Superhighway.
            ``(3) Renewable energy development and deployment.--The 
        Commission may provide for secondary line connections to be 
        constructed, in conjunction with secondary line connections 
        constructed by private entities, to promote renewable energy 
        development and deployment, including through the use of 
        section 225.
    ``(f) Bulk Electric System and Reliability Standards.--The 
Commission shall ensure that the Energy Superhighway and any secondary 
transmission facilities that are constructed to support the Energy 
Superhighway--
            ``(1) are integrated into the bulk electric system of the 
        United States;
            ``(2) comply with reliability standards of the North 
        American Electric Reliability Corporation and regional entities 
        of the Corporation;
            ``(3) support an interconnection or operability among--
                    ``(A) the Western Interconnection;
                    ``(B) the Eastern Interconnection; and
                    ``(C) the Electric Reliability Council of Texas; 
                and
            ``(4) are coordinated with the procedures of regional 
        transmission organizations.
    ``(g) Rebates for Transmission on Energy Superhighway.--The 
Commission shall develop a plan for rebates for any tariff charged for 
electricity transmitted on the Energy Superhighway under which--
            ``(1) an entity that transmits electricity that is 
        generated from a renewable energy resource (including wind, 
        solar, ocean, tidal, geothermal, biomass, biogas, landfill gas, 
        or incremental hydropower) shall receive a rebate in an amount 
        equal to \1/2\ of the tariff; and
            ``(2) an entity that transmits electricity that is 
        generated from a nuclear resource shall receive a rebate in an 
        amount equal to \1/3\ of the tariff.
    ``(h) Federally Owned Utilities.--
            ``(1) In general.--The Commission shall deed ownership of a 
        facility constructed for the Energy Superhighway to--
                    ``(A) if the Federal share of the cost of the 
                facility is more than 50 percent, federally owned 
                utilities operating under regional entities of the 
                North American Electric Reliability Corporation; and
                    ``(B) if the Federal share of the cost of the 
                facility is 50 percent or less, federally owned 
                utilities described in subparagraph (A) on the basis of 
                cost allocation, an auction, or other means determined 
                appropriate by the Commission.
            ``(2) Duties.--A federally owned utility to which a 
        facility is deeded under paragraph (1) shall--
                    ``(A) operate and maintain the facility in 
                accordance with the requirements of regional entities 
                of the North American Electric Reliability Corporation; 
                and
                    ``(B) use any revenue derived from the tariff from 
                the facility to upgrade, maintain, and operate the 
                Energy Superhighway in accordance with the requirements 
                of the regional entities.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 102. AUTHORIZATION TO RECOVER COSTS OF INCREMENTAL TRANSFER 
              CAPABILITY TO FACILITATE RENEWABLE ENERGY DEVELOPMENT AND 
              DEPLOYMENT.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) (as 
amended by section 101) is amended by adding at the end the following:

``SEC. 225. AUTHORIZATION TO RECOVER COSTS OF INCREMENTAL TRANSFER 
              CAPABILITY TO FACILITATE RENEWABLE ENERGY DEVELOPMENT AND 
              DEPLOYMENT.

    ``(a) Definitions.--In this section:
            ``(1) Core transmission facility.--The term `core 
        transmission facility' means a transmission facility--
                    ``(A) for which a project sponsor has demonstrated 
                1 or more financial or regulatory commitments to 
                construct, operate, and maintain;
                    ``(B) that the project sponsor would construct 
                regardless of Federal incentives; and
                    ``(C) that has the demonstrated ability to add 
                incremental transfer capability through--
                            ``(i) the addition of electrical circuits; 
                        or
                            ``(ii) increasing the operating voltage of 
                        the transmission facility.
            ``(2) Financial or regulatory commitment.--The term 
        `financial or regulatory commitment' means a commitment 
        through--
                    ``(A) a transmission service agreement accepted or 
                on file with the Commission;
                    ``(B) an allocation to network customers posted on 
                an open access same-time information system; or
                    ``(C) a ruling granting full future cost recovery 
                through the tariff of a regional transmission 
                organization that is on file with the Commission.
            ``(3) Fund.--The term `Fund' means the Renewable Energy 
        Incremental Transmission Fund established under subsection (d).
            ``(4) Incremental transfer capability.--The term 
        `incremental transfer capability' means--
                    ``(A) the transfer capability of additional 
                electrical transmission circuits primarily within the 
                same right-of-way as core transmission facilities and 
                traversing substantially all of its length; or
                    ``(B) the additional transfer capability that 
                results from installing a transmission line of 
                increased voltage in comparison with core transmission 
                facilities.
            ``(5) Project sponsor.--The term `project sponsor' means an 
        entity that proposes to include incremental transfer capability 
        as part of a core transmission facilities project.
            ``(6) Pro rata.--The term `pro rata', in relation to a core 
        transmission facility, means the incremental transfer 
        capability of the core transmission facility divided by the 
        total transfer capability of the core transmission facility.
            ``(7) Renewable energy resources.--The term `renewable 
        energy resource' means solar, wind, ocean, tidal, geothermal 
        energy, biomass, biogas, landfill gas, or incremental 
        hydropower.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Energy.
            ``(9) Uncommitted transfer capability.--
                    ``(A) In general.--The term `uncommitted transfer 
                capability' means transfer capability, and associated 
                transmission facilities using a pro rata calculation, 
                that is move than the needs demonstrated by the core 
                transmission facilities, that--
                            ``(i) are not paid for through long-term 
                        transmission service agreements filed with the 
                        Commission;
                            ``(ii) are not allocated through an open 
                        access same-time information system posting to 
                        network customers and recovered via embedded 
                        transmission rates; or
                            ``(iii) do not receive payment of the 
                        associated rates of the core transmission 
                        facilities through the tariff of a regional 
                        transmission organization that is on file with 
                        the Commission.
                    ``(B) Limitation.--The uncommitted transfer 
                capability financed by the Secretary shall be not more 
                than 75 percent of the total transfer capability 
                provided by the core transmission facilities.
    ``(b) Cost Recovery Authorization.--
            ``(1) In general.--Notwithstanding any provision of this 
        Act or State law relating to the rates or charges for electric 
        service or transmission of electric energy, a project sponsor 
        shall be entitled to collect payment and recover costs of the 
        incremental transfer capability in accordance with subsection 
        (d) if--
                    ``(A) the 1 or more project sponsors of the 
                incremental transfer capability have filed a cost 
                recovery plan described in subsection (c) with the 
                Commission; and
                    ``(B) the Commission finds that the project sponsor 
                has demonstrated--
                            ``(i) that the transmission project 
                        constitutes a core transmission facility;
                            ``(ii) that the core transmission facility 
                        and incremental transfer capability will 
                        facilitate development or transmission of 
                        electric energy generated from renewable energy 
                        resources;
                            ``(iii) that the process for seeking 
                        approval of siting and construction of the core 
                        transmission facilities in the 1 or more States 
                        in which the facilities will be located, or by 
                        the Commission pursuant to section 216, has 
                        been initiated by the date on which the cost 
                        recovery plan is submitted to the Commission 
                        for approval;
                            ``(iv) that the core transmission 
                        facilities include at least 100 miles of new 
                        transmission lines or constitute secondary line 
                        connections to the Energy Superhighway for 
                        electricity generated from renewable resources;
                            ``(v) that the facilities providing the 
                        incremental transfer capability will operate at 
                        a nominal voltage of at least 345 kilovolts;
                            ``(vi) that the incremental transfer 
                        capability is likely to promote the reliable 
                        and economically efficient transmission and 
                        generation of electricity or reduce 
                        transmission congestion;
                            ``(vii) that, in the case of a project 
                        sponsor that has on file with the Commission 
                        and is operating subject to an open access 
                        transmission tariff, the transfer capability of 
                        the core transmission facilities, without the 
                        incremental transfer capability, is 
                        sufficiently committed through transmission 
                        service agreements accepted by or on file with 
                        the Commission or as allocated to network or 
                        native customers pursuant to the open access 
                        transmission tariff of the project sponsor;
                            ``(viii) that, in the case of a project 
                        sponsor that must obtain approval from any 
                        regional transmission organization prior to 
                        constructing core transmission facilities, all 
                        required approvals from any regional 
                        transmission organization for the core 
                        transmission facilities have been obtained;
                            ``(ix) that the project sponsor has the 
                        ability to finance construction of the core 
                        transmission facilities absent the incremental 
                        transfer capability;
                            ``(x) a commitment to undertake all 
                        reasonable and prudent efforts to construct the 
                        core transmission facilities in a way that 
                        provides the incremental transfer capability as 
                        outlined in the plan of the project sponsor if 
                        the Commission grants the cost recovery 
                        incentives for the incremental transfer 
                        capability under subsection (c);
                            ``(xi) a commitment to provide ancillary 
                        services, including integration service, on the 
                        incremental transfer capability pursuant to 
                        Commission-approved rates; and
                            ``(xii) a commitment to maintain a 
                        Commission-approved rate, separate from the 
                        embedded transmission rate of the project 
                        sponsor, for the incremental transfer 
                        capability, unless otherwise agreed to by the 
                        project sponsor and future transmission 
                        customers and approved by the Commission.
            ``(2) Facilitating renewable energy resources.--For 
        purposes of satisfying the cost recovery authorization 
        requirements of paragraph (1), an incremental transfer 
        capability project facilitates development or transmission of 
        electric energy generated from renewable energy resources if 
        the project--
                    ``(A) is constructed in whole or in part between a 
                liquid energy market hub and an area that has been 
                determined by the Commission to have the potential to 
                generate in excess of 1 gigawatt of electricity from 
                renewable energy resources; or
                    ``(B) is consistent with transmission facilities 
                identified as needed in the transmission planning 
                initiatives associated with a regional renewable energy 
                zone identification process that is undertaken with the 
                involvement of State and Federal agencies.
            ``(3) Termination of effectiveness.--The authority provided 
        by this subsection terminates effective December 31, 2015.
    ``(c) Cost Recovery Plan.--
            ``(1) In general.--The Commission shall approve the 
        recovery of costs for incremental transfer capability added to 
        core transmission facilities pursuant to a plan submitted by 
        the project sponsor consistent with subsection (b).
            ``(2) Requirements.--
                    ``(A) In general.--A plan described in paragraph 
                (1) shall include--
                            ``(i) in accordance with paragraph (3), a 
                        proposal for rates and charges for the 
                        uncommitted transfer capability to be paid 
                        annually by the Secretary to the project 
                        sponsor for a period of 10 years beginning on 
                        the date on which the transmission facilities 
                        are placed in service; or
                            ``(ii) in accordance with paragraph (4), a 
                        proposal for the Secretary to purchase from the 
                        project sponsor and hold the rights to the 
                        uncommitted transfer capability on a pro rata 
                        basis based on the final cost of the assets 
                        providing the uncommitted transfer capability.
                    ``(B) Control of facilities.--A project sponsor 
                submitting a plan under this subsection shall own, 
                operate, and maintain the facilities providing the 
                uncommitted transfer capability.
            ``(3) Direct payment for uncommitted transfer capability.--
                    ``(A) In general.--On the request of the project 
                sponsor and if approved by the Commission, the 
                Secretary shall pay the project sponsor, on a pro rata 
                basis, for all prudently incurred costs and associated 
                returns on equity of constructing, owning, and 
                operating the uncommitted transfer capability for a 
                period of 10 years beginning on the date that the 
                transmission facilities are placed in service.
                    ``(B) Public interest.--In determining whether 
                rates and charges under this subsection for use of 
                uncommitted transfer capability are just and reasonable 
                and not unduly discriminatory or preferential, the 
                Commission shall--
                            ``(i) consider the public interest to 
                        increase transmission transfer capability to 
                        facilitate the development and transmission of 
                        renewable energy; and
                            ``(ii) account for the cost of constructing 
                        the uncommitted transfer capability separately 
                        from the cost that would have been incurred to 
                        construct the transmission facility without the 
                        uncommitted transfer capability using a pro 
                        rata calculation.
            ``(4) Direct purchase of uncommitted transfer capability.--
                    ``(A) In general.--Subject to subparagraph (B), on 
                the request of the project sponsor and if approved by 
                the Commission, the Secretary shall purchase from the 
                project sponsor and hold the rights to the uncommitted 
                transfer capability on a pro rata basis once the 
                transmission facilities are placed in service.
                    ``(B) Limitation.--The Secretary shall not purchase 
                any uncommitted transfer capability rights under this 
                section until the Secretary has deposited into the Fund 
                amounts sufficient to cover the price of the rights as 
                set forth in the plan approved by the Commission.
            ``(5) Access to uncommitted transfer capability.--The 
        Commission shall ensure, to the maximum extent practicable, 
        that--
                    ``(A) the uncommitted transfer capability made 
                available pursuant to this section is used to deliver 
                electricity generated from renewable energy resources, 
                including other resources necessary to support the 
                interconnection of renewable energy resources; and
                    ``(B) the project sponsor has preferential access 
                to purchase all or part of the right to the uncommitted 
                transfer capability held by the Secretary to serve 
                customers that purchase or sell renewable energy 
                resources developed and delivered pursuant to this 
                section for a period of 10 years, to the extent that 
                the preference does not have a negative impact on 
                electric reliability.
            ``(6) Remarketing uncommitted transfer capability.--
                    ``(A) In general.--In order to minimize Federal 
                Government outlays and reduce the amount of total 
                uncommitted transfer capability rights still held by 
                the Federal Government at the end of the 10-year 
                reservation period described in paragraph (3)(A), at 
                the end of that period the project sponsor shall be 
                required to--
                            ``(i) post on an open access same time 
                        information system and remarket the rights to 
                        the residual uncommitted transfer capability; 
                        and
                            ``(ii) repurchase the rights as new long-
                        term transmission service agreements or network 
                        commitments are made.
                    ``(B) Effect.--Nothing in this paragraph 
                establishes the project sponsor as an agent of the 
                Federal Government.
            ``(7) Resale of uncommitted transfer capability.--
                    ``(A) In general.--The Secretary may receive and 
                accept payments for the purpose of purchasing 
                uncommitted transfer capability rights held by the 
                Secretary.
                    ``(B) Price.--The price at which the rights of the 
                Secretary may be purchased shall equal the product 
                obtained by multiplying--
                            ``(i) the amount paid by the Secretary net 
                        of accumulated depreciation for the rights plus 
                        interest compounded annually at the 2-year 
                        Treasury note rate; by
                            ``(ii) the percentage of the rights of the 
                        Secretary to the uncommitted transfer 
                        capability of the project being purchased.
                    ``(C) Use of funds.--Any payments to the Secretary 
                under this paragraph shall be deposited directly into 
                the general fund of the Treasury.
    ``(d) Renewable Energy Incremental Transmission Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a revolving fund, to be known as the 
        `Renewable Energy Incremental Transmission Fund', consisting of 
        such amounts as are appropriated to the Fund under paragraph 
        (2).
            ``(2) Transfer.--There are appropriated to the Fund, out of 
        funds of the Treasury not otherwise appropriated, 
        $10,000,000,000,000, to be appropriated as soon as practicable 
        after the date of enactment of this section, but not later than 
        October 1, 2009.
            ``(3) Availability of funds.--Notwithstanding subsection 
        (b)(3), amounts in the Fund shall be available to the Secretary 
        for expenditure under this section without fiscal year 
        limitation, to remain available until expended.
            ``(4) Report.--Each year, the Secretary shall submit to the 
        appropriate committees of Congress a report describing the 
        activities of the Secretary under this section.
    ``(e) Rulemaking Requirement.--
            ``(1) In general.--The Commission shall, by 1 or more rules 
        promulgated not later than 90 days after the date of enactment 
        of this section, establish--
                    ``(A) appropriate final procedural requirements to 
                specify the process by which a project sponsor shall 
                submit and the Commission shall evaluate the cost 
                recovery plan provided for in this section; and
                    ``(B) incentive-based rate treatments for 
                investments in incremental transfer capability projects 
                authorized by the Commission under this section that 
                expand the transfer capability of core transmission 
                facilities being permitted, sited, or constructed, 
                beyond their initial planned transfer capability, to 
                accommodate increased future growth of renewable 
                energy.
            ``(2) Requirements.--Incentive-based rate treatments 
        described in paragraph (1)(B) shall take into account--
                    ``(A) the scale of investment required;
                    ``(B) the extraordinary financial and nonfinancial 
                risks and challenges impeding this investment; and
                    ``(C) the wide-ranging public interest benefits 
                provided by developing the incremental transfer 
                capability projects.
            ``(3) Relation to other incentive rates.--In establishing 
        appropriate procedural requirements under this subsection, the 
        Commission shall determine the incentive-based rate treatments 
        described in paragraph (1)(B) independently from other 
        incentive rates that the Commission is authorized to provide 
        under section 219.''.

SEC. 103. COORDINATION OF FEDERAL AUTHORIZATIONS FOR TRANSMISSION 
              FACILITIES.

    Section 216(h) of the Federal Power Act (16 U.S.C. 824p(h)) is 
amended--
            (1) in paragraph (2), by striking ``Department of Energy'' 
        and inserting ``Federal Energy Regulatory Commission (referred 
        to in this subsection as the `Commission')'';
            (2) by striking ``Secretary'' each place it appears and 
        inserting ``Commission'';
            (3) in paragraph (7)--
                    (A) in subparagraph (A), by striking ``18 months 
                after the date of enactment of this section'' and 
                inserting ``180 days after the date of enactment of the 
                SMART Energy Act''; and
                    (B) in subparagraph (B), by striking ``1 year after 
                the date of enactment of this section'' and inserting 
                ``180 days after the date of enactment of the SMART 
                Energy Act''; and
            (4) in paragraph (9), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) the Secretary of Energy;''.

            TITLE II--INVESTING IN AMERICA'S ENERGY SECURITY

                 Subtitle A--Energy Security Trust Fund

SEC. 201. ENERGY SECURITY TRUST FUND.

    (a) Establishment.--Subchapter A of chapter 98 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
section:

``SEC. 9511. ENERGY SECURITY TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Energy Security 
Trust Fund' (referred to in this section as the `Trust Fund'), 
consisting of such amounts as may be appropriated or credited to the 
Trust Fund as provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There is hereby appropriated to the 
Trust Fund an amount equivalent to the sum of--
            ``(1) the taxes received in the Treasury under section 
        5896, plus
            ``(2) any increase in the amounts received in the Treasury 
        that are attributable to leasing or other revenue from 
        increased oil and natural gas production as the result of the 
        enactment of the SMART Energy Act (as determined by the 
        Secretary of the Treasury).
    ``(c) Distribution of Amounts in Trust Fund.--
            ``(1) In general.--Subject to paragraph (2), amounts in the 
        Trust Fund shall be available to the Secretary of Energy for 
        the purposes of carrying out research, development, deployment, 
        and related activities for--
                    ``(A) advanced biofuels;
                    ``(B) renewable energy production;
                    ``(C) infrastructure needs for advanced biofuels 
                and renewable energy production; and
                    ``(D) energy conservation and efficiency, including 
                energy-efficient vehicles and conserving and making 
                more efficient transportation fuels.
            ``(2) Use of certain funds.--All funds in the Trust Fund 
        that are derived from fees collected under the production 
        incentives program established under section 302 of the SMART 
        Energy Act during the first 5 fiscal years for which funds are 
        collected under the program shall be used--
                    ``(A) to complete, as soon as practicable after the 
                date of enactment of that Act, any environmental or 
                socioeconomic impact studies or consultations for 
                prospective production areas on the outer Continental 
                Shelf;
                    ``(B) to pay the expenses of the Special Commission 
                on Offshore Oil and Gas Leasing established under 
                section 18(j) of the Outer Continental Shelf Lands Act 
                (43 U.S.C. 1344(j)); and
                    ``(C) to identify the most prospective areas for 
                recoverable oil and gas accumulations for industry 
                exploration under, and otherwise carry out, section 357 
                of the Energy Policy Act of 2005 (42 U.S.C. 15912).''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 9511. Energy Security Trust Fund.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 202. TAX ON CRUDE OIL AND NATURAL GAS PRODUCED FROM THE OUTER 
              CONTINENTAL SHELF IN THE GULF OF MEXICO.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter:

 ``CHAPTER 56--TAX ON SEVERANCE OF CRUDE OIL AND NATURAL GAS FROM THE 
             OUTER CONTINENTAL SHELF IN THE GULF OF MEXICO

``Sec. 5896. Imposition of tax.
``Sec. 5897. Taxable crude oil or natural gas and removal price.
``Sec. 5898. Special rules and definitions.

``SEC. 5896. IMPOSITION OF TAX.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed a tax equal to 18 and two-thirds percent 
of the removal price of any taxable crude oil or natural gas removed 
from the premises during any taxable period.
    ``(b) Credit for Federal Royalties Paid.--
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by subsection (a) with respect to the 
        production of any taxable crude oil or natural gas an amount 
        equal to the aggregate amount of royalties paid under Federal 
        law with respect to such production.
            ``(2) Limitation.--The aggregate amount of credits allowed 
        under paragraph (1) to any taxpayer for any taxable period 
        shall not exceed the amount of tax imposed by subsection (a) 
        for such taxable period.
    ``(c) Tax Paid by Producer.--The tax imposed by this section shall 
be paid by the producer of the taxable crude oil or natural gas.

``SEC. 5897. TAXABLE CRUDE OIL OR NATURAL GAS AND REMOVAL PRICE.

    ``(a) Taxable Crude Oil or Natural Gas.--For purposes of this 
chapter, the term `taxable crude oil or natural gas' means crude oil or 
natural gas which is produced from Federal submerged lands on the outer 
Continental Shelf in the Gulf of Mexico pursuant to a lease entered 
into with the United States which authorizes the production.
    ``(b) Removal Price.--For purposes of this chapter--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `removal price' means--
                    ``(A) in the case of taxable crude oil, the amount 
                for which a barrel of such crude oil is sold, and
                    ``(B) in the case of taxable natural gas, the 
                amount per 1,000 cubic feet for which such natural gas 
                is sold.
            ``(2) Sales between related persons.--In the case of a sale 
        between related persons, the removal price shall not be less 
        than the constructive sales price for purposes of determining 
        gross income from the property under section 613.
            ``(3) Oil or gas removed from property before sale.--If 
        crude oil or natural gas is removed from the property before it 
        is sold, the removal price shall be the constructive sales 
        price for purposes of determining gross income from the 
        property under section 613.
            ``(4) Refining begun on property.--If the manufacture or 
        conversion of crude oil into refined products begins before 
        such oil is removed from the property--
                    ``(A) such oil shall be treated as removed on the 
                day such manufacture or conversion begins, and
                    ``(B) the removal price shall be the constructive 
                sales price for purposes of determining gross income 
                from the property under section 613.
            ``(5) Property.--The term `property' has the meaning given 
        such term by section 614.

``SEC. 5898. SPECIAL RULES AND DEFINITIONS.

    ``(a) Administrative Requirements.--
            ``(1) Withholding and deposit of tax.--The Secretary shall 
        provide for the withholding and deposit of the tax imposed 
        under section 5896 on a quarterly basis.
            ``(2) Records and information.--Each taxpayer liable for 
        tax under section 5896 shall keep such records, make such 
        returns, and furnish such information (to the Secretary and to 
        other persons having an interest in the taxable crude oil or 
        natural gas) with respect to such oil as the Secretary may by 
        regulations prescribe.
            ``(3) Taxable periods; return of tax.--
                    ``(A) Taxable period.--Except as provided by the 
                Secretary, each calendar year shall constitute a 
                taxable period.
                    ``(B) Returns.--The Secretary shall provide for the 
                filing, and the time for filing, of the return of the 
                tax imposed under section 5896.
    ``(b) Definitions.--For purposes of this chapter--
            ``(1) Producer.--The term `producer' means the holder of 
        the economic interest with respect to the crude oil or natural 
        gas.
            ``(2) Crude oil.--The term `crude oil' includes crude oil 
        condensates and natural gasoline.
            ``(3) Premises and crude oil product.--The terms `premises' 
        and `crude oil product' have the same meanings as when used for 
        purposes of determining gross income from the property under 
        section 613.
    ``(c) Adjustment of Removal Price.--In determining the removal 
price of oil or natural gas from a property in the case of any 
transaction, the Secretary may adjust the removal price to reflect 
clearly the fair market value of oil or natural gas removed.
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
chapter.''.
    (b) Deductibility of Tax.--The first sentence of section 164(a) of 
the Internal Revenue Code of 1986 is amended by inserting after 
paragraph (5) the following new paragraph:
            ``(6) The tax imposed by section 5896(a) (after application 
        of section 5896(b)) on the severance of crude oil or natural 
        gas from the outer Continental Shelf in the Gulf of Mexico.''.
    (c) Clerical Amendment.--The table of chapters for subtitle E of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

                              ``Chapter 56. Tax on severance of crude 
                                        oil and natural gas from the 
                                        outer Continental Shelf in the 
                                        Gulf of Mexico.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to crude oil or natural gas removed after the date of the 
enactment of this Act.

                           Subtitle B--Biogas

SEC. 211. CREDIT FOR PRODUCTION OF BIOGAS AND SYNGAS FROM CERTAIN 
              RENEWABLE FEEDSTOCKS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 45Q the following new section:

``SEC. 45R. BIOGAS AND SYNGAS PRODUCED FROM CERTAIN RENEWABLE 
              FEEDSTOCKS.

    ``(a) Allowance of Credit.--
            ``(1) In general.--For purposes of section 38, the 
        qualified biogas and renewable syngas production credit for any 
        taxable year is an amount equal to the sum of the biogas 
        production amount and the renewable syngas production amount.
            ``(2) Biogas production amount.--
                    ``(A) In general.--For purposes of paragraph (1), 
                except as provided in subparagraph (B), the biogas 
                production amount is an amount equal to the product 
                of--
                            ``(i) $4.27, and
                            ``(ii) each million British thermal unit 
                        (mmBtu) of biogas--
                                    ``(I) produced by the taxpayer--
                                            ``(aa) from qualified 
                                        energy feedstock, and
                                            ``(bb) at a qualified 
                                        facility during the 10-year 
                                        period beginning on the date 
                                        the facility was originally 
                                        placed in service, and
                                    ``(II) sold or used by the taxpayer 
                                during the taxable year.
                    ``(B) Exception for biogas produced from a 
                landfill.--In the case of biogas produced from a 
                landfill, the biogas production amount is $2.00.
            ``(3) Renewable syngas production amount.--For purposes of 
        paragraph (1), the renewable syngas production amount is an 
        amount equal to the product of--
                    ``(A) $2.92, and
                    ``(B) each million British thermal unit (mmBtu) of 
                renewable syngas--
                            ``(i) produced by the taxpayer--
                                    ``(I) from qualified energy 
                                feedstock, and
                                    ``(II) at a qualified facility 
                                during the 10-year period beginning on 
                                the date the facility was originally 
                                placed in service, and
                            ``(ii) used by the taxpayer during the 
                        taxable year as a fuel at such qualified 
                        facility.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Biogas.--The term `biogas' means a gas which--
                    ``(A) is derived by processing qualified energy 
                feedstock, and
                    ``(B) contains at least 50 percent methane.
            ``(2) Renewable syngas.--The term `renewable syngas' means 
        any fuel which is derived by processing qualified energy 
        feedstock.
            ``(3) Qualified energy feedstock.--
                    ``(A) In general.--The term `qualified energy 
                feedstock' means--
                            ``(i) manure of agricultural livestock, 
                        including litter, wood shavings, straw, rice 
                        hulls, bedding material, and other materials 
                        incidentally collected with the manure,
                            ``(ii) any nonhazardous, cellulosic, or 
                        other organic agricultural or food industry by-
                        product or waste material which is derived 
                        from--
                                    ``(I) renewable biomass,
                                    ``(II) harvesting residues,
                                    ``(III) wastes or byproducts from 
                                fermentation processes, ethanol 
                                production, biodiesel production, 
                                slaughter of agricultural livestock, 
                                food production, food processing, or 
                                food service, or
                                    ``(IV) other organic wastes, 
                                byproducts, or sources,
                            ``(iii) solid wood waste materials, 
                        including waste pallets, crates, dunnage, 
                        manufacturing and construction wood wastes, and 
                        landscape or right-of-way tree trimmings, or
                            ``(iv) landfill waste, sewage waste 
                        treatment materials, or other organic 
                        materials.
                    ``(B) Renewable biomass.--The term `renewable 
                biomass' means--
                            ``(i) materials from pre-commercial 
                        thinning or invasive species from National 
                        Forest System land and public lands (as defined 
                        in section 103 of the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 1702)) 
                        which--
                                    ``(I) are byproducts of preventive 
                                treatments which are removed to reduce 
                                or contain disease or insect 
                                infestation to restore ecosystem 
                                health,
                                    ``(II) would not otherwise be used 
                                for higher-value products, and
                                    ``(III) are harvested in accordance 
                                with applicable law and land management 
                                plans and the requirements for old-
                                growth maintenance, restoration, and 
                                management direction of paragraphs (2), 
                                (3), and (4) of subsection (e) of 
                                section 102 of the Healthy Forests 
                                Restoration Act of 2003 (16 U.S.C. 
                                6512) and large tree retention of 
                                subsection (f) of that section, or
                            ``(ii) any organic matter which is 
                        available on a renewable or recurring basis 
                        from non-Federal land or land belonging to an 
                        Indian or Indian tribe which is held in trust 
                        by the United States or subject to a 
                        restriction against alienation imposed by the 
                        United States, including--
                                    ``(I) renewable plant material 
                                (such as feed grains, other 
                                agricultural commodities, other plants 
                                and trees, and algae), and
                                    ``(II) waste material (such as crop 
                                residue, other vegetative waste 
                                material (including wood waste and wood 
                                residues), animal waste and byproducts 
                                (including fats, oils, greases, and 
                                manure), food waste, and yard waste).
                    ``(C) Agricultural livestock.--The term 
                `agricultural livestock' means poultry, cattle, sheep, 
                swine, goats, horses, mules, and other equines.
    ``(c) Qualified Facility.--For purposes of this section--
            ``(1) Biogas facility.--In the case of a facility producing 
        biogas, the term `qualified facility' means a facility which--
                    ``(A) uses anaerobic digesters, gasification, or 
                other biological, chemical, or thermal processes to 
                convert qualified energy feedstock into biogas,
                    ``(B) is owned by the taxpayer,
                    ``(C) is located in the United States,
                    ``(D) is originally placed in service before 
                January 1, 2017, and
                    ``(E) the biogas output of which is--
                            ``(i) marketed through interconnection with 
                        a gas distribution or transmission pipeline, or
                            ``(ii) reasonably expected to be used in a 
                        quantity sufficient to offset the consumption 
                        of 5,000 mmBtu annually of commercially 
                        marketed fuel derived from coal, crude oil, 
                        natural gas, propane, or other fossil fuels.
            ``(2) Renewable syngas facility.--In the case of a facility 
        producing renewable syngas, the term `qualified facility' means 
        a facility which--
                    ``(A) uses anaerobic digesters, gasification, or 
                other biological, chemical, or thermal processes to 
                convert qualified energy feedstock into renewable 
                syngas,
                    ``(B) is owned by the taxpayer,
                    ``(C) is located in the United States,
                    ``(D) is originally placed in service before 
                January 1, 2017,
                    ``(E) the renewable syngas output of which is 
                reasonably expected to be used in a quantity sufficient 
                to offset the consumption of 5,000 mmBtu annually of 
                commercially marketed fuel derived from coal, crude 
                oil, natural gas, propane, or other fossil fuels, and
                    ``(F) provides for waste treatment and clean-up.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Production attributable to the taxpayer.--In the case 
        of a facility in which more than 1 person has an ownership 
        interest, except to the extent provided in regulations 
        prescribed by the Secretary, production from the qualified 
        facility shall be allocated among such persons in proportion to 
        their respective ownership interests in the gross sales from 
        such qualified facility.
            ``(2) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(3) Coordination with credit from producing fuel from a 
        nonconventional source.--The amount of biogas produced and sold 
        or used by the taxpayer during any taxable year which is taken 
        into account under this section shall be reduced by the amount 
        of biogas produced and sold by the taxpayer in such taxable 
        year which is taken into account under section 45K.
            ``(4) Credit eligibility in the case of government-owned 
        facilities.--In the case of any facility which produces biogas 
        or renewable syngas and which is owned by a governmental unit, 
        paragraphs (1)(B) and (2)(B) of subsection (c) shall each be 
        applied by substituting `is leased or operated by the taxpayer' 
        for `is owned by the taxpayer'.
            ``(5) Special rule for public-private partnerships.--
                    ``(A) In general.--In the case of a facility which 
                is owned by a public-private partnership, any qualified 
                public entity which is a member of such partnership may 
                transfer such entity's allocation of the credit under 
                subsection (a) to any non-public entity which is a 
                member of such partnership, except that the aggregate 
                allocations of such credit claimed by such non-public 
                entity shall be subject to the limitations under 
                section 38(c).
                    ``(B) Qualified public entity.--For purposes of 
                this paragraph, the term `qualified public entity' 
                means a Federal, State, or local government entity, or 
                any political subdivision thereof, or a cooperative 
                organization described in section 1381(a).
                    ``(C) Verification of transfer of allocation.--A 
                qualified public entity that makes a transfer under 
                subparagraph (A), and a non-public entity that receives 
                an allocation under such a transfer, shall provide 
                verification of such transfer in such manner and at 
                such time as the Secretary shall prescribe.
    ``(e) Adjustment Based on Inflation.--
            ``(1) In general.--The $4.27 amount under subsection 
        (a)(2)(A)(i), the $2.00 amount under subsection (a)(2)(B), and 
        the $2.92 amount under subsection (a)(3)(A) shall each be 
        adjusted by multiplying such amount by the inflation adjustment 
        factor for the calendar year in which the sale occurs. If any 
        amount as increased under the preceding sentence is not a 
        multiple of 0.1 cent, such amount shall be rounded to the 
        nearest multiple of 0.1 cent.
            ``(2) Computation of inflation adjustment factor.--
                    ``(A) In general.--The Secretary shall, not later 
                than April 1 of each calendar year, determine and 
                publish in the Federal Register the inflation 
                adjustment factor in accordance with this paragraph.
                    ``(B) Inflation adjustment factor.--The term 
                `inflation adjustment factor' means, with respect to a 
                calendar year, a fraction the numerator of which is the 
                GDP implicit price deflator for the preceding calendar 
                year and the denominator of which is the GDP implicit 
                price deflator for calendar year 2008. The term `GDP 
                implicit price deflator' means the most recent revision 
                of the implicit price deflator for the gross domestic 
                product as computed and published by the Department of 
                Commerce before March 15 of the calendar year.''.
    (b) Credit Treated as Business Credit.--
            (1) In general.--Section 38(b) of the Internal Revenue Code 
        of 1986 is amended by striking ``plus'' at the end of paragraph 
        (34), by striking the period at the end of paragraph (35) and 
        inserting ``, plus'', and by adding at the end the following 
        new paragraph:
            ``(36) the qualified biogas and renewable syngas production 
        credit under section 45R(a).''.
            (2) Coordination with partnership rules.--Subsection (c) of 
        section 38 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(6) Special rule for credit for production from biogas 
        and renewable syngas facilities.--
                    ``(A) In general.--In the case of the qualified 
                biogas and renewable syngas production credit 
                determined under section 45R(a), paragraph (1) shall 
                not apply with respect to any qualified public entity 
                (as defined in section 45R(d)(5)(B)) which transfers 
                the entity's allocation of such credit to a non-public 
                partner as provided in section 45R(d)(5)(A).
                    ``(B) Verification of transfer.--Subparagraph (A) 
                shall not apply to any qualified public entity unless 
                such entity provides verification of a transfer of 
                credit allocation as required under section 
                45R(d)(5)(C).''.
    (c) Coordination With Credit for Production of Electricity From a 
Renewable Resource.--Section 45(e) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(12) Coordination with credit for production of biogas.--
        The term `qualified facility' shall not include any facility 
        which produces electricity from biogas or renewable syngas the 
        production from which is allowed a credit under section 45R for 
        such taxable year or any prior taxable year.''.
    (d) Credit Allowed Against AMT.--Section 38(c)(4)(B) of the 
Internal Revenue Code of 1986 is amended by redesignating clauses (vi) 
through (viii) as clauses (vii) through (ix), respectively, and by 
inserting after clause (v) the following new clause:
                            ``(vi) the credit determined under section 
                        45R(a).''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 45Q the 
following new item:

``Sec. 45R. Biogas and syngas produced from certain renewable 
                            feedstocks.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to gas produced and sold or used in taxable years beginning after 
the date of the enactment of this Act.

  Subtitle C--Investing in Biofuels and Renewable Fuel Infrastructure

SEC. 221. DEFINITION OF RENEWABLE BIOMASS.

    Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) is 
amended by striking subparagraph (I) and inserting the following:
                    ``(I) Renewable biomass.--The term `renewable 
                biomass' means--
                            ``(i) materials, pre-commercial thinnings, 
                        or invasive species from National Forest System 
                        land and public lands (as defined in section 
                        103 of the Federal Land Policy and Management 
                        Act of 1976 (43 U.S.C. 1702)) that--
                                    ``(I) are byproducts of preventive 
                                treatments that are removed--
                                            ``(aa) to reduce hazardous 
                                        fuels;
                                            ``(bb) to reduce or contain 
                                        disease or insect infestation; 
                                        or
                                            ``(cc) to restore ecosystem 
                                        health;
                                    ``(II) would not otherwise be used 
                                for higher-value products; and
                                    ``(III) are harvested in accordance 
                                with--
                                            ``(aa) applicable law and 
                                        land management plans; and
                                            ``(bb) the requirements 
                                        for--

                                                    ``(AA) old-growth 
                                                maintenance, 
                                                restoration, and 
                                                management direction of 
                                                paragraphs (2), (3), 
                                                and (4) of subsection 
                                                (e) of section 102 of 
                                                the Healthy Forests 
                                                Restoration Act of 2003 
                                                (16 U.S.C. 6512); and

                                                    ``(BB) large-tree 
                                                retention of subsection 
                                                (f) of that section; or

                            ``(ii) any organic matter that is available 
                        on a renewable or recurring basis from non-
                        Federal land or land belonging to an Indian or 
                        Indian tribe that is held in trust by the 
                        United States or subject to a restriction 
                        against alienation imposed by the United 
                        States, including--
                                    ``(I) renewable plant material, 
                                including--
                                            ``(aa) feed grains;
                                            ``(bb) other agricultural 
                                        commodities;
                                            ``(cc) other plants and 
                                        trees; and
                                            ``(dd) algae; and
                                    ``(II) waste material, including--
                                            ``(aa) crop residue;
                                            ``(bb) other vegetative 
                                        waste material (including wood 
                                        waste and wood residues);
                                            ``(cc) animal waste and 
                                        byproducts (including fats, 
                                        oils, greases, and manure); and
                                            ``(dd) food waste and yard 
                                        waste.''.

SEC. 222. LOAN GUARANTEES FOR RENEWABLE ENERGY PIPELINES.

    Subtitle C of title II of the Energy Independence and Security Act 
of 2007 (42 U.S.C. 17051 et seq.) is amended by adding at the end the 
following:

``SEC. 249. LOAN GUARANTEES FOR RENEWABLE ENERGY PIPELINES.

    ``(a) Definitions.--In this section:
            ``(1) Cost.--The term `cost' has the meaning given the term 
        `cost of a loan guarantee' in section 502(5)(C) of the Federal 
        Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
            ``(2) Eligible project.--The term eligible project means a 
        project described in subsection (b)(1).
            ``(3) Guarantee.--
                    ``(A) In general.--The term `guarantee' has the 
                meaning given the term `loan guarantee' in section 502 
                of the Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a).
                    ``(B) Inclusion.--The term `guarantee' includes a 
                loan guarantee commitment (as defined in section 502 of 
                the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
            ``(4) Renewable energy pipeline.--The term `renewable 
        energy pipeline' means a common carrier pipeline for 
        transporting renewable energy.
    ``(b) Loan Guarantees.--
            ``(1) In general.--The Secretary shall make guarantees 
        under this section for projects that provide for--
                    ``(A) the construction of new renewable energy 
                pipelines; or
                    ``(B) the modification of pipelines to transport 
                renewable energy.
            ``(2) Eligibility.--In determining the eligibility of a 
        project for a guarantee under this section, the Secretary shall 
        consider--
                    ``(A) the volume of renewable energy to be moved by 
                the renewable energy pipeline;
                    ``(B) the size of the markets to be served by the 
                renewable energy pipeline;
                    ``(C) the existence of sufficient storage to 
                facilitate access to the markets served by the 
                renewable energy pipeline;
                    ``(D) the proximity of the renewable energy 
                pipeline to ethanol production facilities;
                    ``(E) the investment of the entity carrying out the 
                proposed project in terminal infrastructure;
                    ``(F) the experience of the entity carrying out the 
                proposed project in working with renewable energy;
                    ``(G) the ability of the entity carrying out the 
                proposed project to maintain the quality of the 
                renewable energy through--
                            ``(i) the terminal system of the entity; 
                        and
                            ``(ii) the dedicated pipeline system;
                    ``(H) the ability of the entity carrying out the 
                proposed project to complete the project in a timely 
                manner; and
                    ``(I) the ability of the entity carrying out the 
                proposed project to secure property rights-of-way in 
                order to move the proposed project forward in a timely 
                manner.
            ``(3) Amount.--Unless otherwise provided by law, a 
        guarantee by the Secretary under this section shall not exceed 
        an amount equal to 90 percent of the eligible project cost of 
        the renewable energy pipeline that is the subject of the 
        guarantee, as estimated at the time at which the guarantee is 
        issued or subsequently modified while the eligible project is 
        under construction.
            ``(4) Terms and conditions.--Guarantees under this section 
        shall be provided in accordance with section 1702 of the Energy 
        Policy Act of 2005 (42 U.S.C. 16512), except that subsections 
        (b) and (c) of that section shall not apply to guarantees under 
        this section.
            ``(5) Existing funding authority.--The Secretary shall make 
        a guarantee under this section under an existing funding 
        authority.
            ``(6) Final rule.--Not later than 90 days after the date of 
        enactment of this section, the Secretary shall publish in the 
        Federal Register a final rule directing the Director of the 
        Department of Energy Loan Guarantee Program Office to initiate 
        the loan guarantee program under this section in accordance 
        with this section.
    ``(c) Funding.--
            ``(1) In general.--There are authorized to be appropriated 
        such sums as are necessary to provide $5,000,000,000 in 
        guarantees under this section.
            ``(2) Use of other appropriated funds.--To the extent that 
        the amounts made available under title XVII of the Energy 
        Policy Act of 2005 (42 U.S.C. 16511 et seq.) have not been 
        disbursed to programs under that title, the Secretary may use 
        the amounts to carry out this section.''.

SEC. 223. BIOFUELS INFRASTRUCTURE.

    Section 212 of the Clean Air Act (42 U.S.C. 7546) is amended by 
adding at the end the following:
    ``(f) Biofuels Infrastructure.--
            ``(1) In general.--The Administrator shall provide grants 
        for research into, and development and implementation of--
                    ``(A) biofuels infrastructure, including for 
                pipelines that can be retrofitted to accommodate 
                biofuels; and
                    ``(B) comprehensive regional planning for biofuels, 
                including--
                            ``(i) coordination of feedstock production, 
                        harvesting, transportation, storage, logistics, 
                        and related infrastructure;
                            ``(ii) coordination of biofuel production 
                        and regional consumption infrastructure, such 
                        as blending and refueling stations; and
                            ``(iii) regional marketing and education 
                        activities.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection for each of fiscal years 2010 through 
        2015.''.

SEC. 224. DEFINITION OF LIFECYCLE GREENHOUSE GAS EMISSIONS.

    Section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)) 
is amended by striking ``(including direct emissions and significant 
indirect emissions such as significant emissions from land use 
changes)''.

SEC. 225. BIOFUELS REVOLVING LOAN FUND.

    Subtitle C of title II of the Energy Independence and Security Act 
of 2007 (42 U.S.C. 17051 et seq.) is amended by adding at the end the 
following:

``SEC. 249. BIOFUELS REVOLVING LOAN FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a revolving fund, to be known as the `Biofuels Revolving 
Loan Fund' (referred to in this section as the `Fund'), consisting of 
such amounts as are appropriated to the Fund under subsection (d).
    ``(b) Expenditures From Fund.--
            ``(1) In general.--Subject to paragraph (3), on request by 
        the Secretary, the Secretary of the Treasury shall transfer 
        from the Fund to the Secretary such amounts as the Secretary 
        determines are necessary to provide loans to eligible persons 
        (as determined by the Secretary) in accordance with this 
        subsection.
            ``(2) Loans.--
                    ``(A) In general.--Subject to subparagraphs (B) 
                through (D), the Secretary shall use amounts 
                transferred under paragraph (1) to provide loans to 
                eligible entities (as determined by the Secretary) 
                that--
                            ``(i) seek to use renewable energy 
                        resources to power a facility engaged in the 
                        production of biofuels from renewable 
                        feedstocks (including corn and renewable 
                        biomass) by--
                                    ``(I) constructing a new facility; 
                                or
                                    ``(II) retrofitting or converting 
                                an existing facility;
                            ``(ii) seek to produce advanced biofuels 
                        by--
                                    ``(I) constructing a new facility; 
                                or
                                    ``(II) retrofitting or converting 
                                an existing facility;
                            ``(iii) seek to achieve at least a 20 
                        percent reduction in the lifecycle greenhouse 
                        gas emissions by using--
                                    ``(I) feedstocks that produce 
                                reduced greenhouse gas; or
                                    ``(II) renewable energy resources 
                                (including waste sources) to provide 
                                power to the facility; and
                            ``(iv) demonstrate to the Secretary that--
                                    ``(I) as of the date of enactment 
                                of this section, the development of a 
                                biofuel facility has been suspended or 
                                is in an advanced stage of development 
                                (as demonstrated by permitting, 
                                construction, design, or other 
                                indication of development); or
                                    ``(II) not later than 3 years after 
                                the date of enactment of this section, 
                                the eligible person will commence 
                                construction of a biofuel facility.
                    ``(B) Application.--To be eligible to receive a 
                loan from the Fund, an eligible entity shall submit to 
                the Secretary an application at such time, in such 
                manner, and containing such information as the 
                Secretary may require.
                    ``(C) Administration.--In making loans under this 
                paragraph, the Secretary shall--
                            ``(i) provide to any eligible entity not 
                        more than--
                                    ``(I) $20,000,000 for any fiscal 
                                year to retrofit or convert an existing 
                                facility;
                                    ``(II) $50,000,000 for any fiscal 
                                year to construct a new biofuel 
                                facility; or
                                    ``(III) $30,000,000 for any fiscal 
                                year to carry out any other project or 
                                activity described in subparagraph (A) 
                                that is not covered by subclause (I) or 
                                (II);
                            ``(ii) ensure that loan funds are used for 
                        equity; and
                            ``(iii) establish terms and conditions for 
                        a loan that permit the loan to repaid over a 
                        long term with low or no interest, as 
                        determined by the Secretary.
                    ``(D) Refueling facilities and infrastructure.--The 
                Secretary shall use not more than $30,000,000 of the 
                amount in the Fund to make loans to eligible entities 
                for the construction or retrofitting of biofuel 
                facilities or infrastructure (including tanks, blender 
                pumps, and other types of dispensing pumps) that will 
                be constructed not later than 180 days after the date 
                the loan is made.
            ``(3) Administrative expenses.--An amount not exceeding 10 
        percent of the amounts in the Fund shall be available for each 
        fiscal year to pay the administrative expenses necessary to 
        carry out this section.
    ``(c) Transfers of Amounts.--
            ``(1) In general.--The amounts required to be transferred 
        to the Fund under this section shall be transferred at least 
        monthly from the general fund of the Treasury to the Fund on 
        the basis of estimates made by the Secretary of the Treasury.
            ``(2) Adjustments.--Proper adjustment shall be made in 
        amounts subsequently transferred to the extent prior estimates 
        were in excess of or less than the amounts required to be 
        transferred.
    ``(d) Other Assistance.--The receipt of a loan by an eligible 
entity for a facility under this section shall not preclude the 
eligible entity from receiving additional assistance from the Federal 
Government for the facility, such as grants or loan guarantees, 
provided under other provisions of law.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Fund $500,000,000 for the period of fiscal years 
2010 through 2015.''.

                     Subtitle D--Energy Efficiency

                            PART I--VEHICLES

SEC. 231. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary of Energy shall establish a research and 
development program on lightweight materials and composites and other 
innovations to increase the fuel efficiency of motor vehicles, 
including materials, composites, and innovation that will permit--
            (1) the weight of vehicles to be reduced to improve fuel 
        efficiency without compromising passenger safety; and
            (2) the cost of lightweight materials (such as steel alloys 
        and carbon fibers) required for the construction of lighter-
        weight vehicles to be reduced.
    (b) Funding.--
            (1) In general.--On October 1, 2010, and on each October 1 
        thereafter through October 1, 2015, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary to carry out this 
        section $100,000,000, to remain available until expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this subsection the funds transferred under paragraph (1), 
        without further appropriation.

SEC. 232. FEDERAL GOVERNMENT GASOLINE CONSUMPTION.

    (a) In General.--Section 303(b) of the Energy Policy Act of 1992 
(42 U.S.C. 13212(b)) (as amended by section 205) is amended by adding 
at the end the following:
            ``(5) Gasoline consumption.--The Secretary shall promulgate 
        regulations for Federal fleets subject to this title requiring 
        that, not later than fiscal year 2010, each Federal agency 
        achieve at least a 5 percent reduction in petroleum 
        consumption, as calculated from the baseline established by the 
        Secretary for fiscal year 2008.''.
    (b) Additional Gasoline Reduction Measures.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study to determine whether additional gasoline 
        reduction measures by Federal departments, agencies, and 
        Congress are technically feasible.
            (2) Report.--Not later than 180 days after the date of 
        enactment of this Act, the Comptroller General shall submit to 
        Congress a report that describes the results of the study, 
        including any recommendations.

SEC. 233. CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30E. FUEL-EFFICIENT MOTOR VEHICLE CREDIT.

    ``(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 fuel-efficient motor vehicle placed in 
        service by the taxpayer during the taxable year.
            ``(2) Credit amount.--The amount determined under this 
        paragraph shall be--
                    ``(A) $500, if the new fuel-efficient motor vehicle 
                achieves a city fuel economy which is 42 miles per 
                gallon or less,
                    ``(B) $1,000, if the new fuel-efficient motor 
                vehicle achieves a city fuel economy which is greater 
                than 42 miles per gallon but less than 45.6 miles per 
                gallon,
                    ``(C) $1,500, if the new fuel-efficient motor 
                vehicle achieves a city fuel economy which is greater 
                than 45.5 miles per gallon but less than 49.1 miles per 
                gallon,
                    ``(D) $2,000, if the new fuel-efficient motor 
                vehicle achieves a city fuel economy which is greater 
                than 49 miles per gallon but less than 52.6 miles per 
                gallon, and
                    ``(E) $2,500, if the new fuel-efficient motor 
                vehicle achieves a city fuel economy which is greater 
                than 52.5 miles per gallon.
    ``(b) New Fuel-Efficient Motor Vehicle.--For purposes of this 
section, the term `new fuel-efficient motor vehicle' means any motor 
vehicle--
            ``(1) which has a gross vehicle weight rating of not more 
        than 8,500 pounds,
            ``(2) which achieves a city fuel economy of at least 38.5 
        miles per gallon,
            ``(3) the original use of which commences with the 
        taxpayer,
            ``(4) which is acquired by the taxpayer for use or lease, 
        but not for resale, and
            ``(5) which is made by a manufacturer.
    ``(c) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) City fuel economy; manufacturer.--The terms `city 
        fuel economy' and `manufacturer' have the meanings given such 
        terms under section 30B(h).
            ``(2) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(3) Recapture; property used outside the united states; 
        election not to take credit.--For purposes of this section, 
        rules similar to the rules of paragraphs (2), (3), and (4) of 
        section 30(d) shall apply.
            ``(4) Denial of double benefit.--No credit shall be allowed 
        under this section with respect to any new fuel-efficient motor 
        vehicle if a credit is allowed with respect to such vehicle 
        under section 30, 30B, or 30D.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) (after the application of paragraph (1)) for any taxable 
        year shall not exceed the excess (if any) of--
                    ``(A) the regular tax liability (as defined in 
                section 26(b)) reduced by the sum of the credits 
                allowable under subpart A and sections 27, 30, 30B, and 
                30D, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
    ``(e) Termination.--This section shall not apply to property placed 
in service after December 31, 2011.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986, as 
        amended by this Act, is amended by striking ``plus'' at the end 
        of paragraph (35), by striking the period at the end of 
        paragraph (36) and inserting ``, plus'', and by adding at the 
        end the following new paragraph:
            ``(37) the portion of the new fuel-efficient motor vehicle 
        credit to which section 30E(d)(1) applies.''.
            (2) Section 55(c)(3) of such Code is amended by inserting 
        ``30E(d)(2),'' after ``30C(d)(2),''.
            (3) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(38) to the extent provided in section 30E(c)(2).''.
            (4) Section 6501(m) of such Code, as amended by the 
        American Recovery and Reinvestment Tax Act of 2009, is amended 
        by inserting ``30E(c)(3),'' after ``30D(e)(4),''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 30E. Fuel-efficient motor vehicle credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

               PART II--OTHER ENERGY EFFICIENCY PROGRAMS

SEC. 241. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS.

    Section 544 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17154) is amended--
            (1) in paragraph (13), by striking ``and'' at the end;
            (2) by redesignating paragraph (14) as paragraph (15); and
            (3) by inserting after paragraph (13) the following:
            ``(14) development, implementation, and installation of 
        smart grid technologies and smart grid functions (as defined in 
        section 1306(d)); and''.

SEC. 242. SMART GROWTH.

    (a) Findings.--Congress finds that--
            (1) \2/3\ of the oil consumed in the United States is used 
        in the transportation sector;
            (2) increasing vehicle miles traveled (which rose by 3 
        times the rate of the United States population since 1980) are 
        responsible in part for increasing oil consumption;
            (3) on average, people drive \1/3\ fewer miles in smart 
        growth neighborhoods, which are walkable and prioritize making 
        shops and services more conveniently located, compared to auto-
        dependent neighborhoods;
            (4) living in smart growth neighborhoods saves residents 
        $300 to $400 a month, or up to $4,800 a year, on gas expenses 
        alone, according to research by the Center for Neighborhood 
        Technology;
            (5) households with access to good transit service and in 
        smart growth areas spend only 9 percent of the income of the 
        households on transportation, while households in auto-
        dependent areas can spend up to 25 percent on transportation on 
        average;
            (6) according to a study commissioned by the American 
        Council for an Energy Efficient Economy, shifting just 10 
        percent of new United States housing starts to smart growth 
        would save 4,950,000,000 gallons of gasoline, 118,000,000 
        million barrels of oil, 59,500,000 metric tons of carbon 
        dioxide, and $220,000,000,000 in household expenses over 10 
        years;
            (7) Congress should support State and local governments in 
        promoting sustainable, smart-growth oriented communities that 
        help save energy and reduce spending on gasoline;
            (8) the Environmental Protection Agency has maintained a 
        smart growth office, the Development, Community, and 
        Environment Division, that has provided technical assistance to 
        communities that apply to promote smart growth principles; and
            (9) in 2007, the Environmental Protection Agency received 
        65 applications for the smart growth program of the Agency, but 
        had enough resources to fund only 5 applications.
    (b) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency, acting 
        through the Development, Community, and Environment Division.
            (2) Smart growth.--The term ``smart growth'' means 
        development, in an environmentally and economically sustainable 
        manner, with the goals of--
                    (A) expanding the range of transportation, housing, 
                and employment that are convenient to communities;
                    (B) promoting more energy efficient forms of 
                development and transportation;
                    (C) strengthening and directing development towards 
                existing communities, which saves open space, energy, 
                and costs;
                    (D) taking advantage of compact building design, 
                which is more energy-efficient and helps foster 
                walkable neighborhoods; and
                    (E) making development decisions predictable, fair, 
                and cost-effective while encouraging community and 
                stakeholder collaboration.
    (c) Program.--To promote smart growth, the Administrator shall--
            (1) provide technical assistance to create more energy-
        efficient communities that provide more transportation choices 
        for people;
            (2) conduct research and policy development relating to 
        smart growth and energy;
            (3) conduct public outreach and public education on best 
        practices for smart growth; and
            (4) provide matching funds for cross-agency initiatives 
        conducted by and with other Federal agencies to promote energy 
        conservation through smart growth.
    (d) Allocation of Technical Assistance Funds.--The Administrator 
shall allocate technical assistance funding under this section on the 
basis of--
            (1) the geographic diversity of communities over the course 
        of the fiscal year;
            (2) the potential impact on energy and oil savings; and
            (3) the likelihood of success and policy implementation at 
        the State or local level.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator to carry out this section $25,000,000 
for each fiscal year, of which (to the maximum extent practicable)--
            (1)(A) $15,000,000 shall be used to provide technical 
        assistance to create more energy-efficient communities that 
        provide more transportation choices for people; and
            (B) $1,500,000 shall be used to expand the staff capacity 
        to provide the technical assistance;
            (2) $3,500,000 shall be used to conduct research and policy 
        development relating to smart growth and energy;
            (3) $2,000,000 shall be used to conduct public outreach and 
        public education on best practices for smart growth; and
            (4) $3,000,000 shall be used to provide matching funds for 
        cross-agency initiatives conducted by and with other Federal 
        agencies to promote energy conservation through smart growth.

           Subtitle E--Incentives for Innovative Technologies

SEC. 251. SECURITY FOR LOAN GUARANTEES FOR INNOVATIVE TECHNOLOGY 
              PROJECTS.

    Section 1702(g)(2) of the Energy Policy Act of 2005 (42 U.S.C. 
16512(g)(2)) is amended by adding at the end the following:
                    ``(D) Security.--Notwithstanding subparagraphs (A) 
                through (C), a loan guarantee made before, on, or after 
                the date of enactment of this subparagraph for a 
                project covered by subsection (a) shall be considered 
                to be in compliance with this paragraph--
                            ``(i) regardless of whether or the extent 
                        to which the Secretary requires the loan to be 
                        secured by any project or other property; and
                            ``(ii) regardless of the priority, if any, 
                        of any such security with respect to any 
                        interest of any other creditor of the borrower 
                        in the property.''.

            TITLE III--EXPANDING DOMESTIC ENERGY PRODUCTION

   Subtitle A--Oil and Gas Production on the Outer Continental Shelf

SEC. 301. PRODUCTION OF OIL AND GAS ON OUTER CONTINENTAL SHELF.

    (a) In General.--Section 18 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1344) is amended by adding at the end the following:
    ``(i) Prohibition on Export.--All oil and natural gas produced on 
the outer Continental Shelf of the United States under this Act shall 
be made available for refining and sale solely within the United 
States.
    ``(j) Special Commission on Offshore Oil and Gas Leasing.--
            ``(1) Establishment.--
                    ``(A) In general.--There is established a 
                commission, to be known as the `Special Commission on 
                Offshore Oil and Gas Leasing' (referred to in this 
                subsection as the `Commission').
                    ``(B) Membership.--The Commission shall be composed 
                of 15 members, of whom--
                            ``(i) 3 shall be appointed by the 
                        President;
                            ``(ii) 3 shall be appointed by the majority 
                        leader of the Senate;
                            ``(iii) 3 shall be appointed by the 
                        minority leader of the Senate;
                            ``(iv) 3 shall be appointed by the Speaker 
                        of the House of Representatives; and
                            ``(v) 3 shall be appointed by the minority 
                        leader of the House of Representatives.
                    ``(C) Co-chairpersons.--
                            ``(i) In general.--The President shall 
                        designate 2 co-chairpersons from among the 
                        members of the Commission appointed.
                            ``(ii) Political affiliation.--The co-
                        chairpersons designated under clause (i) shall 
                        not both be affiliated with the same political 
                        party.
                    ``(D) Deadline for appointment.--Members of the 
                Commission shall be appointed not later than 90 days 
                after the date of enactment of the SMART Energy Act.
                    ``(E) Term; vacancies.--
                            ``(i) Term.--A member of the Commission 
                        shall be appointed for the life of the 
                        Commission.
                            ``(ii) Vacancies.--Any vacancy in the 
                        Commission--
                                    ``(I) shall not affect the powers 
                                of the Commission; and
                                    ``(II) shall be filled in the same 
                                manner as the original appointment.
            ``(2) Functions.--The Commission shall--
                    ``(A) review--
                            ``(i) the results of the comprehensive 
                        inventory of outer Continental Shelf oil and 
                        natural gas resources conducted under section 
                        357 of the Energy Policy Act of 2005 (42 U.S.C. 
                        15912);
                            ``(ii) all existing information and data on 
                        potential oil and natural gas reserves in the 
                        outer Continental Shelf;
                            ``(iii) other information relating to the 
                        environmental impact, community acceptance, 
                        existing and planned infrastructure, and other 
                        factors that are relevant to the recommendation 
                        required under subparagraph (B);
                            ``(iv) the report by the Secretary on the 
                        most prospective outer Continental Shelf oil 
                        and natural gas areas; and
                            ``(v) input from coastal States; and
                    ``(B) based on the review conducted under 
                subparagraph (A), make detailed recommendations to 
                Congress and the Secretary, beginning 1 year after the 
                date on which the Commission is established, on--
                            ``(i) the areas on the outer Continental 
                        Shelf that should immediately become available 
                        for oil and gas leasing based on the most 
                        recent 5-year plan, production potential, 
                        environmental factors, community acceptance, 
                        existing and planned infrastructure, and other 
                        relevant factors; and
                            ``(ii) the areas on the outer Continental 
                        Shelf that should be the subject of further 
                        inventory (including use of 3-dimensional 
                        seismic technology and drilling or other 
                        technology necessary for a more complete 
                        inventory analysis) and evaluation in order to 
                        determine future production.
            ``(3) Commission personnel matters.--
                    ``(A) Staff and director.--The Commission shall 
                have a staff headed by an Executive Director.
                    ``(B) Staff appointment.--The Executive Director 
                may appoint such personnel as the Executive Director 
                and the Commission determine to be appropriate.
                    ``(C) Experts and consultants.--With the approval 
                of the Commission, the Executive Director may procure 
                temporary and intermittent services under section 
                3109(b) of title 5, United States Code.
                    ``(D) Federal agencies.--
                            ``(i) Detail of government employees.--
                                    ``(I) In general.--On the request 
                                of the Commission, the head of any 
                                Federal agency may detail, without 
                                reimbursement, any of the personnel of 
                                the Federal agency to the Commission to 
                                assist in carrying out the duties of 
                                the Commission.
                                    ``(II) Nature of detail.--Any 
                                detail of a Federal employee under 
                                subclause (I) shall not interrupt or 
                                otherwise affect the civil service 
                                status or privileges of the Federal 
                                employee.
                            ``(ii) Technical assistance.--On the 
                        request of the Commission, the head of a 
                        Federal agency shall provide such technical 
                        assistance to the Commission as the Commission 
                        determines to be necessary to carry out the 
                        duties of the Commission.
            ``(4) Resources.--
                    ``(A) In general.--The Commission shall have 
                reasonable access to materials, resources, statistical 
                data, and such other information from Executive 
                agencies as the Commission determines to be necessary 
                to carry out the duties of the Commission.
                    ``(B) Form of requests.--The co-chairpersons of the 
                Commission shall make requests for access described in 
                subparagraph (A) in writing, as necessary.
            ``(5) Authorization of appropriations.--In addition to 
        funds made available from the Energy Security Trust Fund under 
        section 9511(c)(2) of the Internal Revenue Code of 1986, there 
        are authorized to be appropriated such sums as are necessary to 
        carry out this subsection.''.
    (b) Identification of Most Prospective Outer Continental Shelf Oil 
and Natural Gas Areas.--Section 357 of the Energy Policy Act of 2005 
(42 U.S.C. 15912) is amended to read as follows:

``SEC. 357. IDENTIFICATION OF MOST PROSPECTIVE OUTER CONTINENTAL SHELF 
              OIL AND NATURAL GAS AREAS.

    ``(a) Definitions.--In this section:
            ``(1) Prospective area.--The term `prospective area' means 
        a portion of any area of the outer Continental Shelf that may 
        contain recoverable oil or gas in accordance with the most 
        recent 5-year plan.
            ``(2) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(3) Special commission.--The term `Special Commission' 
        means the Special Commission on Offshore Oil and Gas Leasing 
        established under section 18(j) of the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1344(j)).
    ``(b) Inventory.--
            ``(1) In general.--The Secretary shall identify the most 
        prospective areas for recoverable oil and gas accumulations for 
        industry exploration.
            ``(2) Information.--In identifying the prospective areas, 
        the Secretary shall take into account any existing information 
        on the geological potential for oil and gas or acquire new data 
        as appropriate to assist in narrowing down prospective areas.
            ``(3) Technology.--The Secretary may use any available 
        geological, geophysical, economic, engineering, and other 
        scientific technology to obtain accurate estimates of resource 
        potential.
            ``(4) Other factors.--In identifying the prospective areas, 
        the Secretary shall consider--
                    ``(A) the political acceptability of new production 
                in the coastal area;
                    ``(B) the willingness of the State or region for 
                new production off of the coasts of the State or region 
                and other matters that may affect the speed with which 
                a prospective area can be leased, developed, and used 
                to produce oil or natural gas; and
                    ``(C) other factors determined by the Secretary.
    ``(c) Acquisition of Geological and Geophysical Data.--
            ``(1) In general.--The Secretary may acquire and process 
        new geological and geophysical data or use existing geological 
        and geophysical data for any area of the outer Continental 
        Shelf if the Secretary determines that additional information 
        is needed to identify and assess potential prospective areas.
            ``(2) Technology.--In carrying out this subsection, the 
        Secretary shall use any available technology (other than 
        drilling), including 3-dimensional seismic technology, to 
        obtain an accurate estimate of resource potential.
            ``(3) Availability of data.--In the case of newly acquired 
        geological and geophysical data under this subsection, the 
        Secretary--
                    ``(A) may make the data available on a cost 
                recovery basis to recover the full costs expended for 
                acquisition and processing of new geological and 
                geophysical data; and
                    ``(B) shall make the data available to the Special 
                Commission.
    ``(d) Administration.--
            ``(1) In general.--As soon as practicable, but not later 
        than 1 year, after the date of enactment of the SMART Energy 
        Act, to expedite collection of geological and geophysical data 
        under this section, each Federal agency shall conduct and 
        complete any analyses or consultations that are required to 
        carry out this section.
            ``(2) Protected species.--Before conducting any geological 
        and geophysical survey required under this section in any 
        prospective area, the Secretary shall, at a minimum, implement 
        the mitigation, monitoring, and reporting measures that are 
        used for protected species in the Gulf of Mexico region.
    ``(e) Environmental and Socioeconomic Studies.--
            ``(1) In general.--The Secretary shall conduct, directly or 
        by contract, environmental or socioeconomic studies for any 
        prospective area identified under subsection (b) immediately on 
        identifying the prospective area.
            ``(2) Interagency action.--The Secretary, acting through 
        the Minerals Management Service, may work jointly with the 
        United States Fish and Wildlife Service, the National Oceanic 
        and Atmospheric Administration, or other relevant agencies--
                    ``(A) to compile existing environmental and 
                socioeconomic information on prospective areas; or
                    ``(B) obtain new environmental or socioeconomic 
                studies for identified prospective areas.
    ``(f) Sharing Information With States and Other Stakeholders.--
            ``(1) In general.--The Secretary shall--
                    ``(A) share the information with the Special 
                Commission; and
                    ``(B) establish a process--
                            ``(i) to share information identified by 
                        actions taken under this section to identify 
                        the most prospective areas; and
                            ``(ii) to obtain input from States or other 
                        stakeholders on the prospective areas.
            ``(2) Process.--The process shall include workshops or 
        meetings with--
                    ``(A) the public;
                    ``(B) Governors or designated officials from 
                appropriate States; and
                    ``(C) other relevant user groups.
    ``(g) Reports.--
            ``(1) Identification of prospective areas.--Not later than 
        180 days after the date of enactment of the SMART Energy Act, 
        the Secretary shall submit to Congress and the Special 
        Commission a report that includes--
                    ``(A) an identification of the most prospective oil 
                and gas areas within areas of the outer Continental 
                Shelf using existing information;
                    ``(B) a summary of environmental and socioeconomic 
                information relating to the prospective areas; and
                    ``(C) a schedule for completion of any 
                environmental or socioeconomic impact studies or 
                consultations planned for those prospective areas.
            ``(2) Potential of prospective areas.--Not later than 90 
        days after the date which the Special Commission submits 
        recommendations to Congress and the Secretary under section 
        18(j)(2)(B) of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1344(j)(2)(B)), the Secretary shall submit to Congress a plan 
        to commence leasing activities in the most prospective areas 
        that includes--
                    ``(A) the recommendations of the Special Commission 
                and an explanation for any recommendations that are not 
                followed;
                    ``(B) a description of the consultation process 
                under subsection (f) used to share information and 
                obtain input from stakeholders and a report on the 
                results of the process; and
                    ``(C) recommendations on approaches for recovery of 
                costs expended for acquisition and processing of new 
                geological and geophysical data or conducting other 
                studies for the report.
    ``(h) Authorization of Appropriations.--In addition to funds made 
available from the Energy Security Trust Fund under section 9511(c)(2) 
of the Internal Revenue Code of 1986, there are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 302. PRODUCTION INCENTIVES PROGRAM.

    (a) Production Incentive Fee.--
            (1) In general.--Subject to paragraphs (2) and (3), 
        effective beginning on the date that is 1 year after the date a 
        lease is entered into with the Secretary for the production of 
        oil or natural gas on Federal land, the Secretary shall impose 
        an annual production incentive fee on the lessee if oil or 
        natural gas is not being produced under the lease in a quantity 
        for which the lessee is responsible for paying a royalty under 
        Federal law.
            (2) Amount.--The amount of the production incentive fee 
        shall be $3.00 per acre.
            (3) Waiver.--The Secretary may waive the requirement that a 
        lessee pay a production incentive fee for a year under 
        paragraph (1) if the lessee applies to the Secretary for a 
        waiver and demonstrates to the Secretary that, during the 1-
        year period covered by the fee, the lessee--
                    (A) made significant efforts to produce oil or 
                natural gas, as determined by the Secretary; or
                    (B) was unable to make significant efforts to 
                produce oil or natural gas due to circumstance beyond 
                the control of the lessee.
    (b) Annual Reports.--In the case of leases entered into with the 
Secretary for the production of oil or natural gas on Federal land that 
are in effect as of the date of the report, the Secretary shall submit 
to Congress an annual report that describes--
            (1) the number of the leases;
            (2) the number of the leases that are producing oil or 
        natural gas and the quantity produced;
            (3) the number of production incentive fee waivers that are 
        applied for and granted under subsection (a)(3);
            (4) the number of leases under which significant efforts 
        have been made to produce oil or natural gas; and
            (5) the number of leases under which significant efforts 
        have not been made to produce oil or natural gas.
    (c) Disposition of Fees.--All funds collected under this section 
shall be deposited in the Energy Security Trust Fund established under 
section 9511 of the Internal Revenue Code of 1986.
    (d) Definition of Proved Undeveloped Reserves.--As soon as 
practicable after the date of enactment of this Act, the Securities and 
Exchange Commission shall adopt a definition of ``proved undeveloped 
reserves'' that would prohibit a covered entity from assigning proved 
status to undrilled locations if the reserves are not scheduled to be 
drilled within 5 years, unless the covered entity demonstrates to the 
Commission unusual circumstances that justify a longer period, as 
determined by the Commission.

                          Subtitle B--Nuclear

SEC. 311. SENSE OF THE SENATE ON SCALABLE, MODULAR LIGHT-WATER NUCLEAR 
              REACTORS AND ELECTRIC PLANTS.

    (a) Findings.--Congress finds that--
            (1) civilian nuclear electric power technologies operate in 
        31 States and have provided the United States with safe, 
        reliable, and competitively priced electricity for over 3 
        decades, currently supplying consumers with nearly 20 percent 
        of the entire electricity needs of the consumers;
            (2) civilian nuclear electric power technologies reduce the 
        annual greenhouse gas emission of the United States by nearly 
        700,000,000 metric tons, according to the energy information 
        voluntary reporting greenhouse gas program of the Department of 
        Energy, an effective emission control program of the United 
        States;
            (3) innovations in civilian nuclear electric power 
        technologies (such as high temperature gas reactors and 
        scalable, modular light water reactors) are--
                    (A) attracting public and private sector funding; 
                and
                    (B) poised--
                            (i) to meet changing market conditions here 
                        in the United States; and
                            (ii) to contribute significantly to 
                        domestic job growth in the basic manufacturing 
                        industries of the United States;
            (4) scalable, modular light-water nuclear reactors 
        represent an important and promising technology for the future; 
        and
            (5) the designs of the plants described in paragraph (4) 
        maximize domestic manufacturing capabilities and enable plant 
        owners to add power to the grid and incur costs incrementally 
        over a period of years, according to--
                    (A) market conditions; and
                    (B) the pace of electrical demand growth of the 
                consumers of electricity generated by the plants.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
Chairman of the Nuclear Regulatory Commission should continue to 
complete the design certification phase for scalable, modular light-
water nuclear reactors and electric plants, in particular for 
applications with respect to which vendors have provided appropriate 
and timely information.

SEC. 312. NUCLEAR REGULATORY COMMISSION.

    There are authorized to be appropriated to the Nuclear Regulatory 
Commission such sums as are necessary for the Commission to establish 
an additional 40 full-time equivalent positions to--
            (1) expedite the processing of applications for new nuclear 
        plants; and
            (2) streamline the licensing process.

SEC. 313. NUCLEAR ENERGY WORKFORCE.

    Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is 
amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) nuclear utility and nuclear energy product 
                and service industries.'';
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by inserting after subsection (c) the following:
    ``(d) Workforce Training.--
            ``(1) In general.--The Secretary of Labor, in cooperation 
        with the Secretary, shall promulgate regulations to implement a 
        program to provide grants to enhance workforce training for any 
        occupation in the workforce of the nuclear utility and nuclear 
        energy products and services industries for which a shortage is 
        identified or predicted in the report under subsection (b)(2).
            ``(2) Consultation.--In carrying out this subsection, the 
        Secretary of Labor shall consult with representatives of the 
        nuclear utility and nuclear energy products and services 
        industries, including organized labor organizations and 
        multiemployer associations that jointly sponsor apprenticeship 
        programs that provide training for skills needed in those 
        industries.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of Labor, 
        working in coordination with the Secretary and the Secretary of 
        Education, $20,000,000 for each of fiscal years 2009 through 
        2015 to carry out this subsection.''.

SEC. 314. INTERAGENCY WORKING GROUP TO PROMOTE DOMESTIC MANUFACTURING 
              BASE FOR NUCLEAR COMPONENTS AND EQUIPMENT.

    (a) Purposes.--The purposes of this section are--
            (1) to increase the competitiveness of the United States 
        nuclear energy products and services industries;
            (2) to identify the stimulus or incentives necessary to 
        cause United States manufacturers of nuclear energy products to 
        expand manufacturing capacity;
            (3) to facilitate the export of United States nuclear 
        energy products and services;
            (4) to reduce the trade deficit of the United States 
        through the export of United States nuclear energy products and 
        services;
            (5) to retain and create nuclear energy manufacturing and 
        related service jobs in the United States;
            (6) to integrate the objectives described in paragraphs (1) 
        through (5), in a manner consistent with the interests of the 
        United States, into the foreign policy of the United States; 
        and
            (7) to authorize funds for increasing United States 
        capacity to manufacture nuclear energy products and supply 
        nuclear energy services.
    (b) Establishment.--
            (1) In general.--There is established an interagency 
        working group (referred to in this section as the ``Working 
        Group'') that, in consultation with representative industry 
        organizations and manufacturers of nuclear energy products, 
        shall make recommendations to coordinate the actions and 
        programs of the Federal Government in order to promote 
        increasing domestic manufacturing capacity and export of 
        domestic nuclear energy products and services.
            (2) Composition.--The Working Group shall be composed of--
                    (A) the Secretary of Energy (or a designee), who 
                shall serve as Chairperson of the Working Group; and
                    (B) representatives of--
                            (i) the Department of Energy;
                            (ii) the Department of Commerce;
                            (iii) the Department of Defense;
                            (iv) the Department of Treasury;
                            (v) the Department of State;
                            (vi) the Environmental Protection Agency;
                            (vii) the United States Agency for 
                        International Development;
                            (viii) the Export-Import Bank of the United 
                        States;
                            (ix) the Trade and Development Agency;
                            (x) the Small Business Administration;
                            (xi) the Office of the United States Trade 
                        Representative; and
                            (xii) other Federal agencies, as determined 
                        by the President.
    (c) Duties of Working Group.--The Working Group shall--
            (1) not later than 180 days after the date of enactment of 
        this Act, identify the actions necessary to promote the safe 
        development and application in foreign countries of nuclear 
        energy products and services--
                    (A) to increase electricity generation from nuclear 
                energy sources through development of new generation 
                facilities;
                    (B) to improve the efficiency, safety, and 
                reliability of existing nuclear generating facilities 
                through modifications; and
                    (C) enhance the safe treatment, handling, storage, 
                and disposal of used nuclear fuel;
            (2) not later than 180 days after the date of enactment of 
        this Act, identify--
                    (A) mechanisms (including tax stimuli for 
                investment, loans and loan guarantees, and grants) 
                necessary for United States companies to increase--
                            (i) the capacity of the companies to 
                        produce or provide nuclear energy products and 
                        services; and
                            (ii) exports of nuclear energy products and 
                        services; and
                    (B) administrative or legislative initiatives that 
                are necessary--
                            (i) to encourage United States companies to 
                        increase the manufacturing capacity of the 
                        companies for nuclear energy products;
                            (ii) to provide technical and financial 
                        assistance and support to small and mid-sized 
                        businesses to establish quality assurance 
                        programs in accordance with domestic and 
                        international nuclear quality assurance code 
                        requirements;
                            (iii) to encourage, through financial 
                        incentives, private sector capital investment 
                        to expand manufacturing capacity; and
                            (iv) to provide technical assistance and 
                        financial incentives to small and mid-sized 
                        businesses to develop the workforce necessary 
                        to increase manufacturing capacity and meet 
                        domestic and international nuclear quality 
                        assurance code requirements;
            (3) not later than 270 days after the date of enactment of 
        this Act, submit to Congress a report that describes the 
        findings of the Working Group under paragraphs (1) and (2), 
        including recommendations for new legislative authority, as 
        necessary; and
            (4) encourage the agencies represented by membership in the 
        Working Group--
                    (A) to provide technical training and education for 
                international development personnel and local users in 
                other countries;
                    (B) to provide financial and technical assistance 
                to nonprofit institutions that support the marketing 
                and export efforts of domestic companies that provide 
                nuclear energy products and services;
                    (C) to develop nuclear energy projects in foreign 
                countries;
                    (D) to provide technical assistance and training 
                materials to loan officers of the World Bank, 
                international lending institutions, commercial and 
                energy attaches at embassies of the United States, and 
                other appropriate personnel in order to provide 
                information about nuclear energy products and services 
                to foreign governments or other potential project 
                sponsors;
                    (E) to support, through financial incentives, 
                private sector efforts to commercialize and export 
                nuclear energy products and services in accordance with 
                the subsidy codes of the World Trade Organization; and
                    (F) to augment budgets for trade and development 
                programs in order to support prefeasibility or 
                feasibility studies for projects that use nuclear 
                energy products and services.
    (d) Personnel and Service Matters.--The Secretary and the heads of 
agencies represented by membership in the Working Group shall detail 
such personnel and furnish such services to the Working Group, with or 
without reimbursement, as are necessary to carry out the functions of 
the Working Group.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $20,000,000 for 
each of fiscal years 2009 through 2015.

SEC. 315. SPENT FUEL RECYCLING PROGRAM.

    (a) In General.--The Secretary of Energy shall--
            (1) begin construction of a spent fuel recycling research 
        and development facility not later than 1 year after the date 
        of enactment of this Act; and
            (2) conduct research and development activities to develop 
        spent fuel processes that reduces the quantity of waste in a 
        manner that ensures adequate protection against proliferation 
        and is in accordance with the defense, security, national 
        interests, and treaty obligations of the United States.
    (b) Spent Fuel Recycling Research and Development Facility.--
            (1) Policy.--It shall be the policy of the United States to 
        recycle spent nuclear fuel to advance energy independence by 
        maximizing the energy potential of nuclear fuel in a 
        proliferation resistant-manner that reduces the quantity of 
        waste deposited in a Federal repository.
            (2) Purpose.--The facility described in subsection (a)(1) 
        shall serve as the lead site for continuing research and 
        development of advanced nuclear fuel cycles and separation 
        technologies.
            (3) Site selection.--In selecting a site for the facility, 
        the Secretary shall give preference to a site that has--
                    (A) the most technically sound bid;
                    (B) a demonstrated technical expertise in spent 
                fuel recycling; and
                    (C) community support.
            (4) Competitive selection.--Funds for a facility described 
        in subsection (a)(1) shall be awarded on the basis of a 
        competitive bidding process that--
                    (A) maximizes the competitive efficiency of the 
                projects funded;
                    (B) best serves the goal of reducing the quantity 
                of waste requiring disposal under this Act and other 
                laws; and
                    (C) ensures adequate protection against the 
                proliferation of nuclear materials that could be used 
                in the manufacture of nuclear weapons.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 316. STANDBY SUPPORT FOR CERTAIN NUCLEAR PLANT DELAYS.

    (a) Definitions.--Section 638(a) of the Energy Policy Act of 2005 
(42 U.S.C. 16014(a)) is amended--
            (1) by redesignating paragraph (4) as paragraph (7); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Full power operation.--The term `full power 
        operation', with respect to a facility, means the earlier of--
                    ``(A) the commercial operation date (or the 
                equivalent under the terms of the financing documents 
                for the facility); and
                    ``(B) the date on which the facility achieves 
                operation at an average nameplate capacity of 50 
                percent or more during any consecutive 30-day period 
                after the completion of startup testing for the 
                facility.
            ``(5) Increased project costs.--The term `increased project 
        costs' means the increased cost of constructing, commissioning, 
        testing, operating, or maintaining a reactor prior to full-
        power operation incurred as a result of a delay covered by the 
        contract, including costs of demobilization and remobilization, 
        increased costs of equipment, materials and labor due to delay 
        (including idle time), increased general and administrative 
        costs, and escalation costs for completing construction.
            ``(6) Litigation.--The term `litigation' means any--
                    ``(A) adjudication in Federal, State, local, or 
                tribal court; and
                    ``(B) any administrative proceeding or hearing 
                before a Federal, State, local, or tribal agency or 
                administrative entity.''.
    (b) Contract Authority.--Section 638(b) of the Energy Policy Act of 
2005 (42 U.S.C. 16014(b)) is amended by striking paragraph (1) and 
inserting the following:
            ``(1) Contracts.--
                    ``(A) In general.--The Secretary may enter into 
                contracts under this section with sponsors of an 
                advanced nuclear facility that cover at any 1 time a 
                total of not more than 12 reactors, which shall consist 
                of not less than 2 nor more than 4 different reactor 
                designs, in accordance with paragraph (2).
                    ``(B) Replacement contracts.--If any contract 
                entered into under this section terminates or expires 
                without a claim being paid by the Secretary under the 
                contract, the Secretary may enter into a new contract 
                under this section in replacement of the contract.''.
    (c) Covered Costs.--Section 638(d) of the Energy Policy Act of 2005 
(42. U.S.C. 16014(d)) is amended by striking paragraphs (2) and (3) and 
inserting the following:
            ``(2) Coverage.--In the case of reactors that receive 
        combined licenses and on which construction is commenced, the 
        Secretary shall pay--
                    ``(A) 100 percent of the covered costs of delay 
                that occur after the initial 30-day period of covered 
                delay; but
                    ``(B) not more than $500,000,000 per contract.
            ``(3) Covered debt obligations.--Debt obligations covered 
        under subparagraph (A) of paragraph (5) shall include debt 
        obligations incurred to pay increased project costs.''.
    (d) Dispute Resolution.--Section 638 of the Energy Policy Act of 
2005 (42 U.S.C. 16014) is amended--
            (1) by redesignating subsections (f) through (h) as 
        subsections (g) through (i), respectively; and
            (2) by inserting after subsection (e) the following:
    ``(f) Dispute Resolution.--
            ``(1) In general.--Any controversy or claim arising out of 
        or relating to any contract entered into under this section 
        shall be determined by arbitration in Washington, DC, in 
        accordance with the applicable Commercial Arbitration Rules of 
        the American Arbitration Association.
            ``(2) Treatment of decision.--A decision by an arbitrator 
        shall be final and binding, and the United district court for 
        Washington, DC, or the district in which the project is located 
        shall have jurisdiction to enter judgment on the decision.''.

SEC. 317. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.

    (a) Definition of Project Cost.--Section 1701(1) of the Energy 
Policy Act of 2005 (42 U.S.C. 16511(1)) is amended by adding at the end 
the following:
            ``(6) Project cost.--The term `project cost' means all 
        costs associated with the development, planning, design, 
        engineering, permitting and licensing, construction, 
        commissioning, startup, shakedown, and financing of a facility, 
        including reasonable escalation and contingencies, the cost of 
        and fees for the guarantee, reasonably required reserve funds, 
        initial working capital, and interest during construction.''.
    (b) Terms and Conditions.--Section 1702 of the Energy Policy Act of 
2005 (42 U.S.C. 16512) is amended by striking subsections (b) and (c) 
and inserting the following:
    ``(b) Specific Appropriation or Contribution.--
            ``(1) In general.--No guarantee shall be made unless--
                    ``(A) sufficient amounts have been appropriated to 
                cover the cost of the guarantee;
                    ``(B) the Secretary has--
                            ``(i) received from the borrower payment in 
                        full for the cost of the obligation; and
                            ``(ii) deposited the payment into the 
                        Treasury; or
                    ``(C) any combination of subparagraphs (A) and (B) 
                that is sufficient to cover the cost of the obligation.
            ``(2) Relation to other laws.--Section 504(b) of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661c (b)) shall not 
        apply to a loan guarantee made in accordance with paragraph 
        (1).
    ``(c) Amount.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall guarantee--
                    ``(A) 100 percent of the obligation for a facility 
                that is the subject of a guarantee; or
                    ``(B) a lesser amount, if requested by the 
                borrower.
            ``(2) Limitation.--The total amount of loans guaranteed for 
        a facility by the Secretary shall not exceed 80 percent of the 
        total cost of the facility, as estimated at the time at which 
        the guarantee is issued.''.
    (c) Fees.--Section 1702(h) of the Energy Policy Act of 2005 (42 
U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Availability.--Fees collected under this subsection 
        shall--
                    ``(A) be deposited by the Secretary into a special 
                fund in the Treasury to be known as the `Incentives For 
                Innovative Technologies Fund'; and
                    ``(B) remain available to the Secretary for 
                expenditure, without further appropriation or fiscal 
                year limitation, for administrative expenses incurred 
                in carrying out this title.''.

SEC. 318. MODIFICATION OF CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR 
              POWER FACILITIES.

    (a) In General.--Paragraph (2) of section 45J(b) of the Internal 
Revenue Code of 1986 is amended by striking ``6,000 megawatts'' and 
inserting ``8,000 megawatts''.
    (b) Allocation of Credit to Private Partners of Tax-Exempt 
Entities.--
            (1) In general.--Section 45J of the Internal Revenue Code 
        of 1986 is amended--
                    (A) by redesignating subsection (e) as subsection 
                (f), and
                    (B) by inserting after subsection (d) the following 
                new subsection:
    ``(e) Special Rule for Public-Private Partnerships.--
            ``(1) In general.--In the case of an advanced nuclear power 
        facility which is owned by a public-private partnership, any 
        qualified public entity which is a member of such partnership 
        may transfer such entity's allocation of the credit under 
        subsection (a) to any non-public entity which is a member of 
        such partnership, except that the aggregate allocations of such 
        credit claimed by such non-public entity shall be subject to 
        the limitations under subsections (b) and (c) and section 
        38(c).
            ``(2) Qualified public entity.--For purposes of this 
        subsection, the term `qualified public entity' means a Federal, 
        State, or local government entity, or any political subdivision 
        thereof, or a cooperative organization described in section 
        1381(a).
            ``(3) Verification of transfer of allocation.--A qualified 
        public entity that makes a transfer under paragraph (1), and a 
        non-public entity that receives an allocation under such a 
        transfer, shall provide verification of such transfer in such 
        manner and at such time as the Secretary shall prescribe.''.
            (2) Coordination with general business credit.--Subsection 
        (c) of section 38 of such Code, as amended by this Act, is 
        amended by adding at the end the following new paragraph:
            ``(7) Special rule for credit for production from advanced 
        nuclear power facilities.--
                    ``(A) In general.--In the case of the credit for 
                production from advanced nuclear power facilities 
                determined under section 45J(a), paragraph (1) shall 
                not apply with respect to any qualified public entity 
                (as defined in section 45J(e)(2)(B)) which transfers 
                the entity's allocation of such credit to a non-public 
                partner as provided in section 45J(e)(2)(A).
                    ``(B) Verification of transfer.--Subparagraph (A) 
                shall not apply to any qualified public entity unless 
                such entity provides verification of a transfer of 
                credit allocation as required under section 
                45J(e)(2)(C).''.
    (c) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to electricity produced in taxable years beginning after 
        the date of the enactment of this Act.
            (2) Allocation of credit.--The amendments made by 
        subsection (b) shall apply to taxable years beginning after the 
        date of the enactment of this Act.

SEC. 319. 5-YEAR ACCELERATED DEPRECIATION FOR NEW NUCLEAR POWER 
              FACILITIES.

    (a) In General.--Subparagraph (B) of section 168(e)(3) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of clause (v);
            (2) by striking the period at the end of clause (vi) and 
        inserting ``, and''; and
            (3) by inserting after clause (vi) the following new 
        clause:
                            ``(vii) any qualified nuclear power 
                        facility the original use of which commences 
                        with the taxpayer.''.
    (b) Qualified Nuclear Power Facility.--Section 168(e) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(9) Qualified nuclear power facility.--The term 
        `qualified nuclear power facility' means an advanced nuclear 
        facility (as defined in section 45J(d)(2))--
                    ``(A) which, when placed in service, will use 
                nuclear power to produce electricity,
                    ``(B) the construction of which is approved by the 
                Nuclear Regulatory Commission on or before December 31, 
                2013, and
                    ``(C) which is placed in service before January 1, 
                2021.''.
    (c) Conforming Amendment.--Section 168(e)(3)(E)(vii) of the 
Internal Revenue Code of 1986 is amended by inserting ``and not 
described in subparagraph (B)(vii) of this paragraph'' after ``section 
1245(a)(3)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
the date of the enactment of this Act.

                  TITLE IV--ENSURING MARKET INTEGRITY

SEC. 401. DEFINITIONS.

    In this title:
            (1) Commission.--The term ``Commission'' means the 
        Commodity Futures Trading Commission.
            (2) Comptroller general.--The term ``Comptroller General'' 
        means the Comptroller General of the United States.

SEC. 402. DEFINITION OF ENERGY COMMODITY.

    (a) Definition of Energy Commodity.--Section 1a of the Commodity 
Exchange Act (7 U.S.C. 1a) is amended--
            (1) by redesignating paragraphs (13) through (34) as 
        paragraphs (14) through (35), respectively; and
            (2) by inserting after paragraph (12) the following:
            ``(13) Energy commodity.--The term `energy commodity' 
        means--
                    ``(A) coal;
                    ``(B) crude oil;
                    ``(C) gasoline;
                    ``(D) diesel fuel;
                    ``(E) jet fuel;
                    ``(F) heating oil;
                    ``(G) propane;
                    ``(H) electricity;
                    ``(I) natural gas; and
                    ``(J) any other substance that is used as a source 
                of energy, as determined to be appropriate by the 
                Commission.''.
    (b) Conforming Amendments.--
            (1) Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange 
        Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended--
                    (A) in subitem (AA), by striking ``section 1a(20)'' 
                and inserting ``section 1a(21)''; and
                    (B) in subitem (BB), by striking ``section 1a(20)'' 
                and inserting ``section 1a(21)''.
            (2) Section 13106(b)(1) of the Food, Conservation, and 
        Energy Act of 2008 (7 U.S.C. 2 note; Public Law 110-246) is 
        amended by striking ``section 1a(32)'' and inserting ``section 
        1a''.
            (3) Section 402 of the Legal Certainty for Bank Products 
        Act of 2000 (7 U.S.C. 27) is amended--
                    (A) in subsection (a)(7), by striking ``section 
                1a(20)'' and inserting ``section 1a''; and
                    (B) in subsection (d)--
                            (i) in paragraph (1)(B), by striking 
                        ``section 1a(33)'' and inserting ``section 
                        1a''; and
                            (ii) in paragraph (2)(D), by striking 
                        ``section 1a(13)'' and inserting ``section 
                        1a''.

SEC. 403. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE TRADING.

    (a) In General.--Section 4 of the Commodity Exchange Act (7 U.S.C. 
6) is amended by adding at the end the following:
    ``(e) Foreign Boards of Trade.--
            ``(1) In general.--The Commission may not permit a foreign 
        board of trade to provide to the members of the foreign board 
        of trade or other participants located in the United States 
        direct access to the electronic trading and order matching 
        system of the foreign board of trade with respect to an 
        agreement, contract, or transaction in an energy or 
        agricultural commodity that settles against any price 
        (including the daily or final settlement price) of 1 or more 
        contracts listed for trading on a registered entity, unless--
                    ``(A) the foreign board of trade makes public daily 
                trading information regarding the agreement, contract, 
                or transaction that is comparable to the daily trading 
                information published by the registered entity for the 
                1 or more contracts against which the agreement, 
                contract, or transaction traded on the foreign board of 
                trade settles; and
                    ``(B) the foreign board of trade (or the foreign 
                futures authority that oversees the foreign board of 
                trade)--
                            ``(i) adopts position limits (including 
                        related hedge exemption provisions) for the 
                        agreement, contract, or transaction that are 
                        comparable, taking into consideration the 
                        relative sizes of the respective markets, to 
                        the position limits (including related hedge 
                        exemption provisions) adopted by the registered 
                        entity for the 1 or more contracts against 
                        which the agreement, contract, or transaction 
                        traded on the foreign board of trade settles;
                            ``(ii) has the authority to require or 
                        direct market participants to limit, reduce, or 
                        liquidate any position the foreign board of 
                        trade (or the foreign futures authority that 
                        oversees the foreign board of trade) determines 
                        to be necessary to prevent or reduce the threat 
                        of price manipulation, excessive speculation 
                        (as described in section 4a(a)), price 
                        distortion, or disruption of delivery or the 
                        cash settlement process;
                            ``(iii) agrees to promptly notify the 
                        Commission of any change regarding--
                                    ``(I) the information that the 
                                foreign board of trade will make 
                                publicly available;
                                    ``(II) the position limits that the 
                                foreign board of trade or foreign 
                                futures authority will adopt and 
                                enforce;
                                    ``(III) the position reductions 
                                required to prevent manipulation, 
                                excessive speculation (as described in 
                                section 4a(a)), price distortion, or 
                                disruption of delivery or the cash 
                                settlement process; and
                                    ``(IV) any other area of interest 
                                communicated by the Commission to the 
                                foreign board of trade or foreign 
                                futures authority;
                            ``(iv) provides information to the 
                        Commission regarding large trader positions in 
                        the agreement, contract, or transaction that is 
                        comparable to the large trader position 
                        information collected by the Commission for the 
                        1 or more contracts against which the 
                        agreement, contract, or transaction traded on 
                        the foreign board of trade settles; and
                            ``(v) provides to the Commission 
                        information necessary to publish reports on 
                        aggregate trader positions for the agreement, 
                        contract, or transaction traded on the foreign 
                        board of trade that are comparable to the 
                        reports for the 1 or more contracts against 
                        which the agreement, contract, or transaction 
                        traded on the foreign board of trade settles.
            ``(2) Existing foreign boards of trade.--Paragraph (1) 
        shall not be effective with respect to any agreement, contract, 
        or transaction in an energy commodity executed on a foreign 
        board of trade to which the Commission had granted direct 
        access permission before the date of enactment of this 
        subsection until the date that is 180 days after the date of 
        enactment of this subsection.''.
    (b) Liability of Registered Persons Trading on a Foreign Board of 
Trade.--
            (1) In general.--Section 4(a) of the Commodity Exchange Act 
        (7 U.S.C. 6(a)) is amended in the matter preceding paragraph 
        (1) by inserting ``or subsection (f)'' after ``pursuant to 
        subsection (c)''.
            (2) Violations with respect to certain persons.--Section 4 
        of the Commodity Exchange Act (7 U.S.C. 6) (as amended by 
        subsection (a)) is amended by adding at the end the following:
    ``(f) Violations With Respect to Certain Persons.--A person 
registered with the Commission, or exempt from registration by the 
Commission, under this Act may not be found to have violated subsection 
(a) with respect to a transaction in, or in connection with, a contract 
of sale of a commodity for future delivery if the person has reason to 
believe that the transaction and the contract are made on or subject to 
the rules of a board of trade that--
            ``(1) is legally organized under the laws of a foreign 
        country;
            ``(2) is authorized to act as a board of trade by the 
        appropriate foreign futures authority;
            ``(3) is subject to regulation by the appropriate foreign 
        futures authority; and
            ``(4) has not been determined by the Commission to be 
        operating in violation of subsection (a).''.
    (c) Contract Enforcement With Respect to Foreign Futures 
Contracts.--Section 22(a) of the Commodity Exchange Act (7 U.S.C. 
25(a)) is amended by adding at the end the following:
            ``(5) Effect on contracts of sale; authority of parties to 
        contracts of sale.--
                    ``(A) Effect on contracts of sale.--For purposes of 
                section 4(a), a contract of sale of a commodity for 
                future delivery traded or executed on or through the 
                facilities of a board of trade, exchange, or market 
                located outside of the United States (including the 
                territories and possessions of the United States) shall 
                not be void, voidable, or unenforceable.
                    ``(B) Authority of parties to contracts of sale.--A 
                party to a contract of sale of a commodity for future 
                delivery described in subparagraph (A) shall not be 
                entitled to rescind or recover any payment made with 
                respect to the contract based on the failure of the 
                foreign board of trade on which the contract is traded 
                or executed to comply with any provision of this 
                Act.''.

SEC. 404. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN ENERGY AND 
              AGRICULTURE MARKETS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by 
section 403(b)(2)) is amended by adding at the end the following:
    ``(g) Disaggregation of Index Funds and Other Data in Energy and 
Agriculture Markets.--Subject to section 8, not later than 30 days 
after the date on which the final rule required under section 4(h) is 
issued, the Commission shall disaggregate and make public weekly--
            ``(1) the number of positions and total value of index 
        funds and other passive, long-only and short-only positions (as 
        defined by the Commission) in each energy and agriculture 
        market; and
            ``(2) data regarding speculative positions relative to bona 
        fide physical hedgers in those markets.''.

SEC. 405. RULEMAKING WITH RESPECT TO REPORTING REQUIREMENTS OF INDEX 
              TRADERS AND SWAP DEALERS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by 
section 404) is amended by adding at the end the following:
    ``(h) Rulemaking With Respect to Reporting Requirements of Index 
Traders and Swap Dealers.--
            ``(1) Proposed rulemaking.--Not later than 60 days after 
        the date of enactment of this subsection, the Commission shall 
        issue a notice of proposed rulemaking--
                    ``(A) to define and classify index traders and swap 
                dealers (as each term is defined by the Commission); 
                and
                    ``(B) to specify data reporting requirements, and 
                establish routine detailed reporting requirements, with 
                respect to significant price discovery contracts 
                relating to exempt and agricultural commodities for 
                index traders and swap dealers in--
                            ``(i) designated contract markets;
                            ``(ii) derivatives transaction execution 
                        facilities;
                            ``(iii) foreign boards of trade subject to 
                        subsection (e); and
                            ``(iv) electronic trading facilities.
            ``(2) Final rule.--Not later than 120 days after the date 
        of enactment of this subsection, the Commission shall 
        promulgate a final rule to accomplish the purposes described in 
        paragraph (1).''.

SEC. 406. TRANSPARENCY AND RECORDKEEPING AUTHORITIES.

    (a) In General.--Section 4g(a) of the Commodity Exchange Act (7 
U.S.C. 6g(a)) is amended--
            (1) by striking ``as futures commission'' and inserting 
        ``as a futures commission''; and
            (2) by inserting ``and transactions and positions traded 
        pursuant to subsection (g), (h)(1), or (h)(2) of section 2, or 
        any exemption issued by the Commission by rule, regulation, or 
        order,'' after ``United States or elsewhere,''.
    (b) Reports of Deals Equal To or In Excess of Trading Limits.--
Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) is amended--
            (1) by striking ``sec. 4i. It shall be'' and inserting the 
        following:

``SEC. 4I. REPORTS REGARDING DEALS EQUAL TO OR IN EXCESS OF TRADING 
              LIMITS.

    ``(a) In General.--It shall be'';
            (2) in subsection (a) (as designated by paragraph (1)), in 
        the first sentence, in the matter following clause (2), by 
        inserting before ``, and of cash or spot'' the following: 
        ``located in the United States or elsewhere, and of 
        transactions and positions in any such commodity entered into 
        pursuant to subsection (g), (h)(1), or (h)(2) of section 2, or 
        any exemption issued by the Commission by rule, regulation, or 
        order''; and
            (3) by striking the second and third sentences and 
        inserting the following:
    ``(b) Documentation Requirements of Certain Persons.--With respect 
to agricultural and energy commodities, upon special call by the 
Commission, a person shall provide to the Commission, in such form, in 
such manner, and within such period as is required under the special 
call, and in accordance with subsection (d), books and records of each 
transaction and position traded by the person on or subject to the 
rules of any board of trade or electronic trading facility located in 
the United States or elsewhere, pursuant to subsection (g), (h)(1), or 
(h)(2) of section 2, or any exemption issued by the Commission by rule, 
regulation, or order, as the Commission determines to be appropriate--
            ``(1) to deter and prevent price manipulation or any other 
        disruption to market integrity; or
            ``(2) to diminish, eliminate, or prevent excessive 
        speculation (as described in section 4a(a)).
    ``(c) Requirements Relating to Books and Records.--
            ``(1) In general.--The books and records described in 
        subsections (a) and (b) shall contain complete descriptions of 
        each transaction, position, inventory, and commitment 
        (including the name and address of each person that has an 
        interest in each transaction, position, inventory, and 
        commitment) of the person covered by the books and records.
            ``(2) Maintenance.--The books and records of a person 
        described in subsections (a) and (b) shall be--
                    ``(A) maintained for a period of 5 years; and
                    ``(B) during the period described in subparagraph 
                (A), available for inspection by any representative of 
                the Commission or the Department of Justice.
    ``(d) Inclusions With Respect to Futures and Cash or Spot 
Transactions and Positions.--For the purposes of this section, the 
futures and cash or spot transactions and positions of any person shall 
include each transaction and position of any person directly or 
indirectly controlled by the person.''.
    (c) Conforming Amendments.--
            (1) Section 2(g) of the Commodity Exchange Act (7 U.S.C. 
        2(g)) is amended in the matter preceding paragraph (1)--
                    (A) by striking ``than section 5a'' and inserting 
                ``than subsection (j), section 4g(a), 4i, 5a''; and
                    (B) by inserting ``(including any regulation 
                promulgated by the Commission pursuant to section 4c(b) 
                requiring reports with respect to commodity option 
                transactions)'' before ``shall apply''.
            (2) Section 2(h)(2) of the Commodity Exchange Act (7 U.S.C. 
        2(h)(2)) is amended by striking subparagraph (A) and inserting 
        the following:
                    ``(A) sections 4g(a), 4i, 5b, and 12(e)(2)(B) 
                (including any regulation promulgated by the Commission 
                pursuant to section 4c(b) requiring reports with 
                respect to commodity option transactions);''.

SEC. 407. TRADING LIMITS TO PREVENT EXCESSIVE SPECULATION.

    (a) In General.--Section 4a of the Commodity Exchange Act (7 U.S.C. 
6a) is amended--
            (1) by striking ``sec. 4a. (a) Excessive speculation'' and 
        inserting the following:

``SEC. 4A. EXCESSIVE SPECULATION.

    ``(a) Burden on Interstate Commerce; Establishment of Position 
Limits.--
            ``(1) In general.--Excessive speculation'';
            (2) in subsection (a) (as amended by paragraph (1)), by 
        adding at the end the following:
            ``(2) Establishment of position limits.--Not later than 60 
        days after the date of enactment of this paragraph, in 
        accordance with each standard described in paragraph (1), and 
        consistent with the good faith exception described in 
        subsection (b)(2), with respect to agricultural and energy 
        commodities, the Commission shall by rule, regulation, or order 
        establish limits on the amount of positions that may be held by 
        any person with respect to contracts of sale for future 
        delivery (including options on the contracts or commodities)--
                    ``(A) traded on or subject to the rules of a 
                contract market or derivatives transaction execution 
                facility; or
                    ``(B) traded on an electronic trading facility as a 
                significant price discovery contract.
            ``(3) Requirements with respect to position limits.--In 
        establishing position limits under paragraph (2), the 
        Commission shall set limits--
                    ``(A) on the number of positions that may be held 
                by any person during--
                            ``(i) a spot month; and
                            ``(ii) each month other than a spot month;
                    ``(B) on the aggregate number of positions that may 
                be held by any person during each month; and
                    ``(C) to the maximum extent practicable--
                            ``(i) to diminish, eliminate, or prevent 
                        excessive speculation;
                            ``(ii) to deter and prevent market 
                        manipulation, squeezes, and corners;
                            ``(iii) to ensure sufficient market 
                        liquidity for bona fide hedgers;
                            ``(iv) to ensure that the price discovery 
                        function of the underlying market is not 
                        disrupted; and
                            ``(v) to take into account the total number 
                        of positions in fungible agreements, contracts, 
                        or transactions that a person can hold in 
                        agricultural and energy commodities in other 
                        markets.
            ``(4) Advisory groups.--
                    ``(A) In general.--Not later than 150 days after 
                the date of enactment of this paragraph, the Commission 
                shall convene--
                            ``(i) an advisory group to be known as the 
                        `Position Limit Agricultural Advisory Group'; 
                        and
                            ``(ii) an advisory group to be known as the 
                        `Position Limit Energy Advisory Group'.
                    ``(B) Composition.--Each advisory group convened by 
                the Commission under subparagraph (A) shall be 
                comprised of--
                            ``(i) 5 predominantly commercial short 
                        hedgers of the actual physical commodity for 
                        future delivery;
                            ``(ii) 5 predominantly commercial long 
                        hedgers of the actual physical commodity for 
                        future delivery;
                            ``(iii) 4 noncommercial participants in 
                        markets for commodities for future delivery; 
                        and
                            ``(iv) a representative of--
                                    ``(I) each designated contract 
                                market or derivatives transaction 
                                execution facility upon which a 
                                contract in the commodity for future 
                                delivery is traded; and
                                    ``(II) each electronic trading 
                                facility that has a significant price 
                                discovery contract in the commodity 
                                described in subclause (I).
                    ``(C) Annual reports.--Not later than 60 days after 
                the date on which each advisory group is convened under 
                subparagraph (A), and annually thereafter, each 
                advisory group shall submit to the Commission a report 
                containing recommendations regarding--
                            ``(i) the position limits established under 
                        paragraph (2); and
                            ``(ii) whether the position limits 
                        established under paragraph (2) should be 
                        administered--
                                    ``(I) directly by the Commission; 
                                or
                                    ``(II) by the registered entity on 
                                which the commodity is listed, with 
                                enforcement carried out by the 
                                registered entity and the 
                                Commission.''; and
            (3) in subsection (c)--
                    (A) by striking ``(c) No rule'' and inserting the 
                following:
    ``(c) Applicability of Rules, Regulations, and Orders.--
            ``(1) In general.--No rule''; and
                    (B) by adding at the end the following:
            ``(2) Definition of bona fide hedging transaction or 
        position.--With respect to agricultural and energy commodities, 
        for the purposes of contracts of sale for future delivery 
        (including an option on any contract or commodity), the term 
        `bona fide hedging transaction or position' means a transaction 
        or position that--
                    ``(A)(i) represents a substitute for a transaction 
                to be made or a position to be taken at a later time in 
                a physical marketing channel;
                            ``(ii) is economically appropriate for the 
                        reduction of risks in the conduct and 
                        management of a commercial enterprise; and
                            ``(iii) arises from the potential change in 
                        the value of--
                                    ``(I) assets that a person owns, 
                                produces, manufactures, processes, or 
                                merchandises (or anticipates owning, 
                                producing, manufacturing, processing, 
                                or merchandising);
                                    ``(II) liabilities that a person 
                                owns or anticipates incurring; or
                                    ``(III) services that a person 
                                provides or purchases (or anticipates 
                                providing or purchasing); or
                    ``(B) reduces risks attendant to a position 
                resulting from a transaction that was--
                            ``(i) executed--
                                    ``(I) pursuant to--
                                            ``(aa) subsection (g), 
                                        (h)(1), or (h)(2) of section 2; 
                                        or
                                            ``(bb) an exemption issued 
                                        by the Commission by rule, 
                                        regulation, or order; and
                                    ``(II) opposite to a counterparty 
                                for which the transaction would qualify 
                                as a bona fide hedging transaction 
                                pursuant to subparagraph (A); or
                            ``(ii) in accordance with each position 
                        level and procedure established by any rule, 
                        regulation, or order of the Commission, 
                        executed by a person that--
                                    ``(I) reports to the Commission in 
                                the event that any counterparty of the 
                                person reaches a specified futures-
                                equivalent position level; and
                                    ``(II) certifies to the Commission 
                                that no counterparty has reached a 
                                specified futures-equivalent position 
                                level.''.

SEC. 408. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE TO POSITION 
              LIMITS FOR CONTRACTS IN AGRICULTURAL AND ENERGY 
              COMMODITIES.

    (a) Contracts Traded on Contract Markets.--Section 5(d)(5) of the 
Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended by striking 
``adopt position'' and all that follows through ``and appropriate'' and 
inserting ``adopt, for speculators, position limitations with respect 
to agricultural commodities or energy commodities, and position 
limitations or position accountability with respect to other 
commodities, where necessary and appropriate.''.
    (b) Contracts Traded on Derivatives Transaction Execution 
Facilities.--Section 5a(d)(4) of the Commodity Exchange Act (7 U.S.C. 
7a(d)(4)) is amended by striking ``adopt position'' and all that 
follows through ``deliverable supply'' and inserting ``adopt, for 
speculators, position limitations with respect to energy commodities, 
and position limitations or position accountability with respect to 
other commodities, where necessary and appropriate for a contract, 
agreement, or transaction with an underlying commodity that has a 
physically deliverable supply.''.
    (c) Significant Price Discovery Contracts.--Section 
2(h)(7)(C)(ii)(IV) of the Commodity Exchange Act (7 U.S.C. 
2(h)(7)(C)(ii)(IV)) is amended by striking ``where necessary'' and all 
that follows through ``in significant price discovery contracts'' and 
inserting ``for speculators, position limitations with respect to 
significant price discovery contracts in energy commodities, and 
position limitations or position accountability with respect to 
significant price discovery contracts in other commodities''.

SEC. 409. ADMINISTRATION OF COMMODITY FUTURES TRADING COMMISSION.

    (a) Additional Commodity Futures Trading Commission Employees for 
Improved Enforcement.--Section 2(a)(7) of the Commodity Exchange Act (7 
U.S.C. 2(a)(7)) is amended by adding at the end the following:
                    ``(D) Additional employees.--As soon as practicable 
                after the date of enactment of this subparagraph, 
                subject to the availability of appropriations, the 
                Commission shall appoint at least 100 full-time 
                employees (in addition to the employees employed by the 
                Commission as of the date of enactment of this 
                subparagraph)--
                            ``(i) to increase the public transparency 
                        of operations in agriculture and energy 
                        markets;
                            ``(ii) to improve the enforcement of this 
                        Act in those markets; and
                            ``(iii) to carry out such other duties as 
                        are prescribed by the Commission.''.
    (b) Inspector General of Commodity Futures Trading Commission.--
            (1) In general.--Section 2(a) of the Commodity Exchange Act 
        (7 U.S.C. 2(a)) is amended by adding at the end the following:
            ``(13) Inspector general.--
                    ``(A) Office.--There shall be in the Commission, as 
                an independent office, an Office of the Inspector 
                General.
                    ``(B) Appointment.--The Office shall be headed by 
                an Inspector General, appointed in accordance with the 
                Inspector General Act of 1978 (5 U.S.C. App.).
                    ``(C) Compensation.--The Inspector General shall be 
                compensated at the rate provided for level IV of the 
                Executive Schedule under section 5315 of title 5, 
                United States Code.
                    ``(D) Transition.--Until the date on which the 
                Inspector General is appointed under subparagraph (B), 
                the Inspector General of the Commission shall continue 
                to carry out the responsibilities of the Inspector 
                General of the Commission.''.
            (2) Conforming amendments.--
                    (A) Section 8G(a)(2) of the Inspector General Act 
                of 1978 (5 U.S.C. App.) is amended by striking ``the 
                Commodity Futures Trading Commission,''.
                    (B) Section 11(2) of the Inspector General Act of 
                1978 (5 U.S.C. App.) is amended by striking ``or the 
                Export-Import Bank'' and inserting ``, the Export-
                Import Bank, or the Commodity Futures Trading 
                Commission''.

SEC. 410. REVIEW OF PRIOR ACTIONS.

    Notwithstanding any other provision of the Commodity Exchange Act 
(7 U.S.C. 1 et seq.), to ensure the compliance of each prior action 
described in paragraphs (1) and (2) with the Commodity Exchange Act (7 
U.S.C. 1 et seq.), the Commission shall review, as appropriate--
            (1) each regulation, rule, exemption, exclusion, guidance, 
        no action letter, order, and other action taken by or on behalf 
        of the Commission that is in effect as of the date of enactment 
        of this Act; and
            (2) each action taken pursuant to the Commodity Exchange 
        Act (7 U.S.C. 1 et seq.) by an exchange, self-regulatory 
        organization, or any other registered entity that is in effect 
        as of the date of enactment of this Act.

SEC. 411. REVIEW OF OVER-THE-COUNTER MARKETS.

    (a) Study.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Commission shall conduct a study--
                    (A) to deter and prevent price manipulation or any 
                other disruption to market integrity; and
                    (B) to diminish, eliminate, or prevent excessive 
                speculation (as described in section 4a(a) of the 
                Commodity Exchange Act (7 U.S.C. 6a(a))) for physical-
                based commodities.
            (2) Scope.--In conducting the study under paragraph (1), 
        the Commission shall determine the efficacy, practicality, and 
        consequences of establishing--
                    (A) position limits for agreements, contracts, or 
                transactions conducted in reliance on subsections (g) 
                and (h) of section 2 of the Commodity Exchange Act (7 
                U.S.C. 2), and any exemption issued by the Commission 
                by rule, regulation, or order--
                            (i) to deter and prevent price manipulation 
                        or any other disruption to market integrity; or
                            (ii) to diminish, eliminate, or prevent 
                        excessive speculation (as described in section 
                        4a(a) of the Commodity Exchange Act (7 U.S.C. 
                        6a(a))) for physical-based commodities; and
                    (B) aggregate position limits for similar 
                agreements, contracts, or transactions for physical-
                based commodities traded--
                            (i) on designated contract markets;
                            (ii) on derivatives transaction execution 
                        facilities; and
                            (iii) in reliance on subsections (g) and 
                        (h) of section 2 of the Commodity Exchange Act 
                        (7 U.S.C. 2), and any exemption issued by the 
                        Commission by rule, regulation, or order.
            (3) Public hearings.--To gather information to prepare the 
        report under paragraph (1), the Commission shall provide not 
        less than 2 public hearings at which the testimony provided at 
        each hearing shall be recorded.
    (b) Report.--Not earlier than 1 year after the date of enactment of 
this Act, the Commission shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that contains--
            (1) a description of the results of the study carried out 
        under subsection (a)(1); and
            (2) recommendations regarding any action that the 
        Commission determines to be necessary to deter and prevent 
        price manipulation or any other disruption to market integrity, 
        or to diminish, eliminate, or prevent excessive speculation (as 
        described in section 4a(a) of the Commodity Exchange Act (7 
        U.S.C. 6a(a))) for physical-based commodities, including--
                    (A) any additional statutory authority that the 
                Commission determines to be necessary to implement each 
                recommendation; and
                    (B) a description of the resources that the 
                Commission considers to be necessary to implement each 
                recommendation.

SEC. 412. STUDIES; REPORTS.

    (a) Study Relating to International Regulation of Energy Commodity 
Markets.--
            (1) In general.--The Comptroller General shall conduct a 
        study of the international regime for regulating the trading of 
        energy commodity futures and derivatives.
            (2) Analysis.--The study shall include an analysis of, at a 
        minimum--
                    (A) key common features and differences among 
                countries in the regulation of energy commodity 
                trading, including with respect to market oversight and 
                enforcement standards and activities;
                    (B) variations among countries with respect to the 
                use of position limits, position accountability levels, 
                or other thresholds to detect and prevent price 
                manipulation, excessive speculation (as described in 
                section 4a(a) of the Commodity Exchange Act (7 U.S.C. 
                6a(a))), or other unfair trading practices;
                    (C) variations in practices regarding the 
                differentiation of commercial and noncommercial 
                trading;
                    (D) agreements and practices for sharing market and 
                trading data among futures authorities and the entities 
                that the futures authorities oversee; and
                    (E) agreements and practices for facilitating 
                international cooperation on market oversight, 
                compliance, and enforcement.
            (3) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General shall submit to 
        the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report that--
                    (A) contains--
                            (i) a description of the results of the 
                        study carried out under paragraph (1); and
                            (ii) recommendations to improve openness, 
                        transparency, and other necessary elements of a 
                        properly functioning market in a manner that 
                        protects consumers in the United States; and
                    (B) addresses whether there is excessive 
                speculation, and if so, the effects of the speculation 
                and energy price volatility on energy futures.
    (b) Study Relating to Effects of Speculators on Agriculture and 
Energy Futures Markets and Agriculture and Energy Prices.--
            (1) Study.--The Comptroller General shall conduct a study 
        of the effects of speculators on agriculture and energy futures 
        markets and agriculture and energy prices.
            (2) Analysis.--The study shall include an analysis of, at a 
        minimum--
                    (A) the effect of increased amounts of capital in 
                agriculture and energy futures markets;
                    (B) the impact of the roll-over of positions by 
                index fund traders and swap dealers on--
                            (i) agriculture and energy futures markets; 
                        and
                            (ii) agriculture and energy prices; and
                    (C) the extent to which each factor described in 
                subparagraphs (A) and (B) and speculators--
                            (i) affect--
                                    (I) the pricing of agriculture and 
                                energy commodities; and
                                    (II) risk management functions; and
                            (ii) contribute to economically efficient 
                        price discovery.
            (3) Report.--Not later than 2 years after the date of 
        enactment of this Act, the Comptroller General shall submit to 
        the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report that contains a description of the results 
        of the study carried out under paragraph (1).

SEC. 413. OVER-THE-COUNTER AUTHORITY.

    (a) In General.--Section 2 of the Commodity Exchange Act (7 U.S.C. 
2) is amended by adding at the end the following:
    ``(j) Over-the-Counter Authority.--
            ``(1) Agricultural and energy commodities.--Not later than 
        60 days after the date of enactment of this subsection, the 
        Commission shall, by rule, regulation, or order, require, on 
        not less than a monthly basis, the periodic reporting of 
        agreements, contracts, or transactions, with regard to any--
                    ``(A) agricultural or energy commodity entered into 
                in reliance on subsection (g), (h)(1), or (h)(2); or
                    ``(B) exemption issued by the Commission by rule, 
                regulation, or order that is fungible (as defined by 
                the Commission) with agreements, contracts, or 
                transactions traded on or subject to the rules of any 
                board of trade or of any electronic trading facility 
                with respect to a significant price discovery contract.
            ``(2) Duty of commission to issue findings.--
        Notwithstanding subsections (g), (h)(1), and (h)(2), and any 
        exemption issued by the Commission by rule, regulation, or 
        order, the Commission shall assess and issue a finding on 
        whether each agreement, contract, or transaction reported 
        pursuant to paragraph (1), alone or in conjunction with other 
        similar agreements, contracts, or transactions, has the 
        potential--
                    ``(A) to disrupt the liquidity or price discovery 
                function on a registered entity;
                    ``(B) to cause a severe market disturbance in the 
                underlying cash or futures market for an agricultural 
                or energy commodity; or
                    ``(C) to prevent or otherwise impair the price of a 
                contract listed for trading on a registered entity from 
                reflecting the forces of supply and demand in any 
                market for an agricultural commodity or an energy 
                commodity.
            ``(3) Authority of commission.--If the Commission makes a 
        finding under paragraph (2), the Commission, in accordance with 
        section 8a(9), may--
                    ``(A) impose position limits for speculators on the 
                agreements, contracts, or transactions involved; and
                    ``(B) take corrective actions to enforce the 
                position limits described in subparagraph (A).''.
    (b) Conforming Amendments.--
            (1) Section 2(h)(2)(A) of the Commodity Exchange Act (7 
        U.S.C. 2(h)(2)(A)) is amended by inserting ``subsection (j), 
        and'' before ``sections''.
            (2) Section 8a(9) of the Commodity Exchange Act (7 U.S.C. 
        12a(9)) is amended in the matter preceding the first sentence 
        by striking ``of the Commission's action'' and inserting the 
        following: ``the action of the Commission, and to fix and 
        enforce limits to any agreement, contract, or transaction 
        subject to section 2(j)(1) pursuant to a finding made under 
        section 2(j)(2)''.

SEC. 414. EXPEDITED PROCEDURES.

    The Commission may use emergency and expedited procedures 
(including any administrative or other procedure as appropriate) to 
carry out this Act (including the amendments made by this Act) if the 
Commission determines that the use of emergency and expedited 
procedures is necessary.

SEC. 415. TREATMENT OF EMISSION ALLOWANCES AND OFFSET CREDITS.

    (a) Exempt Commodity.--Section 1a of the Commodity Exchange Act (7 
U.S.C. 1a) is amended by striking paragraph (15) (as redesignated by 
section 402(a)(1)) and inserting the following:
            ``(15) Exempt commodity.--The term `exempt commodity' means 
        a commodity that is not--
                    ``(A) an agricultural commodity;
                    ``(B) an excluded commodity;
                    ``(C) an allowance authorized under any law 
                (including regulations) to emit a greenhouse gas; or
                    ``(D) a credit authorized under any law (including 
                regulations) for--
                            ``(i) a reduction in greenhouse gas 
                        emissions; or
                            ``(ii) an increase in carbon 
                        sequestration.''.
    (b) Memorandum of Understanding.--Not later than 180 days after the 
date of enactment of this Act, the Commodity Futures Trading Commission 
shall enter into a memorandum of understanding with the Secretary of 
Agriculture, which shall include provisions--
            (1) consistent with section 1245 of the Food Security Act 
        of 1985 (16 U.S.C. 3845); and
            (2) to ensure that the development of any procedures and 
        protocols for a market-based greenhouse gas program are 
        properly constructed and coordinated to maximize credits for 
        carbon sequestration.

SEC. 416. INSPECTOR GENERAL OF COMMODITY FUTURES TRADING COMMISSION.

    (a) Office of Inspector General.--
            (1) Head of the establishment.--Section 12(1) of the 
        Inspector General Act of 1978 (5 U.S.C. App.) is amended by 
        inserting ``the Chairman of the Commodity Futures Trading 
        Commission;'' after ``Export-Import Bank;''.
            (2) Establishment.--Section 12(2) of the Inspector General 
        Act of 1978 (5 U.S.C. App.) is amended by inserting ``the 
        Commodity Futures Trading Commission,'' after ``Export-Import 
        Bank,''.
            (3) Designated federal entity.--Section 8G(a)(2) of the 
        Inspector General Act of 1978 (5 U.S.C. App.) is amended by 
        striking ``the Commodity Futures Trading Commission,''.
    (b) Effective Date; Transition.--
            (1) Effective date.--The amendments made by subsection (a) 
        take effect on the date that is 30 days after the date of 
        enactment of this Act.
            (2) Transition.--An individual serving as Inspector General 
        of the Commodity Futures Trading Commission as of the date 
        described in paragraph (1) may continue to serve as Inspector 
        General of the Commodity Futures Trading Commission until the 
        date on which the President appoints an Inspector General for 
        the Commodity Futures Trading Commission under section 3(a) the 
        Inspector General Act of 1978 (5 U.S.C. App.).

TITLE V--NATIONAL COMMISSION ON ENERGY POLICY AND GLOBAL CLIMATE CHANGE

SEC. 501. ESTABLISHMENT OF COMMISSION.

    There is established in the legislative branch the National 
Commission on Energy Policy and Global Climate Change (referred to in 
this title as the ``Commission'').

SEC. 502. PURPOSES.

    The purposes of the Commission are--
            (1) to advise and assist Congress in developing a 
        comprehensive energy policy that ensures national energy 
        security and significantly reduces greenhouse gas emissions in 
        order to address global climate change without damaging the 
        economy;
            (2) to examine all aspects of the energy situation of the 
        United States and related policies in order to develop a 
        comprehensive, economy-wide policy approach to energy issues;
            (3) to examine the relevant facts and science related to 
        global climate change, including impacts from human activities; 
        and
            (4) to report to Congress and the President on the 
        findings, conclusions, and recommendations of the Commission 
        for legislation creating a comprehensive energy policy for the 
        United States that ensures national energy security and 
        significantly reduces greenhouse gas emissions in order to 
        address global climate change without damaging the economy.

SEC. 503. COMPOSITION OF COMMISSION.

    (a) Members.--The Commission shall be composed of 12 members, of 
whom--
            (1) 1 member shall be jointly appointed by the majority 
        leader of the Senate and the Speaker of the House of 
        Representatives, who shall serve as Chairperson of the 
        Commission;
            (2) 1 member shall be jointly appointed by the minority 
        leader of the Senate and the minority leader of the House of 
        Representatives, who shall serve as Vice-Chairperson of the 
        Commission;
            (3)(A) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on the Environment and Public 
        Works of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on Natural Resources of the 
        House of Representatives, in consultation with the Select 
        Committee on Energy Independence and Global Warming of the 
        House of Representatives;
            (4)(A) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on Energy and Natural Resources 
        of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on Energy and Commerce of the 
        House of Representatives;
            (5)(A) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on Commerce, Science and 
        Transportation of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on Science and Technology of 
        the House of Representatives and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives;
            (6)(A) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on Agriculture, Nutrition and 
        Forestry of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on Agriculture of the House of 
        Representatives; and
            (7)(A) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on Finance of the Senate; and
            (B) 1 member shall be jointly appointed by the Chair and 
        Ranking Member of the Committee on Ways and Means of the House 
        of Representatives.
    (b) Qualifications; Initial Meeting.--
            (1) Political party affiliation.--Each appointment to the 
        Commission shall be made without regard to political party 
        affiliation and on a nonpartisan basis.
            (2) Nongovernmental appointees.--An individual appointed to 
        the Commission may not be an officer or employee of the Federal 
        Government or any State or local government.
            (3) Other qualifications.--It is the sense of Congress that 
        individuals appointed to the Commission should be prominent 
        United States citizens, with national recognition and 
        significant depth of experience in such professions as 
        governmental service, science, energy, economics, environment, 
        agriculture, manufacturing, public administration, and commerce 
        (including aviation matters).
            (4) Deadline for appointment.--Each member of the 
        Commission shall be appointed not later than 90 days after the 
        date of enactment of this Act.
    (c) Meetings.--
            (1) Initial meeting.--The Commission shall hold the initial 
        meeting of the Commission as soon as practicable, and not later 
        than 60 days, after the date on which all members of the 
        Commission are appointed.
            (2) Subsequent meetings.--After the initial meeting under 
        paragraph (1), the Commission shall meet at the call of--
                    (A) the Chairperson; or
                    (B) a majority of the members of the Commission.
    (d) Quorum.--7 members of the Commission shall constitute a quorum.
    (e) Vacancies.--A vacancy on the Commission--
            (1) shall not affect the powers of the Commission; and
            (2) shall be filled in the same manner in which the 
        original appointment was made.

SEC. 504. FUNCTIONS OF COMMISSION.

    (a) In General.--The functions of the Commission are--
            (1) to examine, study, and evaluate the relevant facts, 
        studies, and proposals relating to national energy policies and 
        policies to address global climate change, including to any 
        relevant legislation, Executive order, regulation, plan, 
        policy, practice, procedure relating to--
                    (A) domestic production and consumption of energy 
                from all sources and imported sources of energy, 
                particularly oil and natural gas;
                    (B) domestic and international oil and gas 
                exploration, production, refining, oil and gas 
                pipelines, and other forms of infrastructure and 
                transportation;
                    (C) energy markets, including market speculation, 
                transparency, and oversight;
                    (D) the structure of the energy industry including 
                the impacts of consolidation, antitrust and 
                oligopolistic concerns, market manipulation and 
                collusion concerns, and other similar matters;
                    (E) electricity production and transmission issues, 
                including fossil fuels, renewable energy, energy 
                efficiency and energy conservation matters;
                    (F) transportation fuels, biofuels and other 
                renewable fuels, fuel cells, motor vehicle power 
                systems, efficiency and conservation;
                    (G) nuclear energy, including matters pertaining to 
                permitting, regulation, and legal liability;
            (2) to examine the relevant facts and science related to 
        global climate change and the national and global environment, 
        including--
                    (A) the impacts on the global climate system and 
                environment from human activities, particularly 
                greenhouse gas emissions and pollution;
                    (B) the consequences to the global climate system 
                and environment; and
                    (C) the consequences of global climate change on 
                humans and other species, particularly consequences to 
                the national security, economy, public health and well-
                being of the United States, including the citizens and 
                residents of the United States;
            (3) to identify, review, and evaluate the lessons learned 
        from previous energy policies, energy crises, environmental 
        problems, and attempts to address global climate change;
            (4) to evaluate proposals for energy and global climate 
        change policies, including proposals developed by Members of 
        Congress, congressional Committees, all relevant Federal, 
        State, and regional governmental agencies, nongovernmental 
        organizations, independent organizations, and international 
        organizations, with a focus to build on proposals for 
        developing a blueprint for comprehensive energy and global 
        climate change legislation; and
            (5) to submit to Congress and the President such reports as 
        are required by section 506 containing such findings, 
        conclusions, and recommendations as the Commission shall 
        determine necessary to advise and assist Congress and the 
        President in developing energy and climate change legislation, 
        procedures, rules, and regulations.
    (b) Relationship to the Efforts of Congressional Committees.--The 
Commission shall--
            (1) review the information compiled by, and the findings, 
        conclusions, and recommendations of, all congressional 
        Committees of relevant jurisdiction; and
            (2) after that review, pursue any appropriate area of 
        inquiry that the Commission determines necessary to carry out 
        this title.

SEC. 505. POWERS OF COMMISSION.

    (a) In General.--
            (1) Rules.--The Commission may establish such rules and 
        regulations relating to administrative procedures as are 
        reasonably necessary to enable the Commission to carry out this 
        title.
            (2) Hearings and evidence.--The Commission or, on the 
        authority of the Commission, any subcommittee or member of the 
        Commission may, for the purpose of carrying out this title hold 
        such hearings and sit and act at such times and places, take 
        such testimony, receive such evidence, administer such oaths as 
        the Commission determines to be appropriate.
    (b) Contracting.--To the extent amounts are made available in 
appropriations Acts, the Commission may enter into contracts to assist 
the Commission in carrying out the duties of the Commission under this 
title.
    (c) Information From Federal Agencies.--
            (1) In general.--The Commission may secure directly from a 
        Federal agency such information, suggestions, estimates, and 
        statistics as the Commission considers to be necessary to carry 
        out this title.
            (2) Provision of information.--On request of the 
        Commission, the head of the agency shall provide the 
        information, suggestions, estimates, and statistics to the 
        Commission.
            (3) Treatment.--Information provided to the Commission 
        under this paragraph shall be received, handled, stored, and 
        disseminated by members and staff of the Commission in 
        accordance with applicable law (including regulations) and 
        Executive orders.
    (d) Assistance From Federal Agencies.--
            (1) General services administration.--The Administrator of 
        General Services shall provide to the Commission, on a 
        reimbursable basis, administrative support and other services 
        to assist the Commission in carrying out the duties of the 
        Commission under this title.
            (2) Other departments and agencies.--In addition to the 
        assistance described in paragraph (1), any other Federal 
        department or agency may provide to the Commission such 
        services, funds, facilities, staff, and other support as the 
        head of the department or agency determines to be appropriate.
    (e) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property only in accordance with the ethical 
rules applicable to congressional officers and employees.
    (f) Volunteer Services.--
            (1) In general.--Notwithstanding section 1342 of title 31, 
        United States Code, the Commission may accept and use the 
        services of volunteers serving without compensation.
            (2) Reimbursement.--The Commission may reimburse a 
        volunteer for office supplies, local travel expenses, and other 
        travel expenses, including per diem in lieu of subsistence, in 
        accordance with section 5703 of title 5, United States Code.
            (3) Treatment.--A volunteer of the Commission shall be 
        considered to be an employee of the Federal Government in 
        carrying out activities for the Commission, for purposes of--
                    (A) chapter 81 of title 5, United States Code;
                    (B) chapter 11 of title 18, United States Code; and
                    (C) chapter 171 of title 28, United States Code.
    (g) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
agencies of the Federal Government.

SEC. 506. REPORTS OF COMMISSION; TERMINATION.

    (a) Interim Reports.--The Commission shall submit to Congress and 
the President such interim reports as the Commission considers 
necessary, containing such findings, conclusions, and recommendations 
as have been agreed to by a majority of the members of the Commission.
    (b) Final Report.--Not later than 1 year after the date on which 
all members of the Commission are appointed under section 503, the 
Commission shall submit to Congress and the President a final report 
that contains a legislative blueprint for a comprehensive national 
policy for energy security that--
            (1) addresses global climate change; and
            (2) contains all findings, conclusions, and recommendations 
        agreed to by a majority of members of the Commission.

SEC. 507. STAFF OF COMMISSION.

    (a) In General.--The Chairperson of the Commission (in consultation 
with the Vice-Chairperson of the Commission) may, without regard to the 
civil service laws (including regulations), appoint and terminate a 
staff director and such other additional personnel as are necessary to 
enable the Commission to perform the duties of the Commission.
    (b) Compensation.--
            (1) In general.--Except as provided in clause (ii), the 
        Chairperson of the Commission may fix the compensation of the 
        staff director and other personnel without regard to the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        title 5, United States Code, relating to classification of 
        positions and General Schedule pay rates.
            (2) Maximum rate of pay.--The rate of pay for the staff 
        director and other personnel shall not exceed the rate payable 
        for level IV of the Executive Schedule under section 5316 of 
        title 5, United States Code.
    (c) Status.--The staff director and any employee (not including any 
member) of the Commission shall be considered to be employees under 
section 2105 of title 5, United States Code, for purposes of chapters 
63, 81, 83, 84, 85, 87, 89, and 90 of that title.
    (d) Consultant Services.--The Commission may procure the services 
of experts and consultants in accordance with section 3109 of title 5, 
United States Code, at rates not to exceed the daily rate paid to an 
individual occupying a position at level IV of the Executive Schedule 
under section 5315 of title 5, United States Code.

SEC. 508. COMPENSATION AND TRAVEL EXPENSES.

    (a) Compensation of Members.--A member of the Commission shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which the member is engaged in the performance of 
the duties of the Commission.
    (b) Travel Expenses.--A member of the Commission shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for an employee of an agency under subchapter I of chapter 
57 of title 5, United States Code, while away from the home or regular 
place of business of the member in the performance of the duties of the 
Commission.

SEC. 509. MEETINGS.

    (a) In General.--The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to the Commission.
    (b) Public Meetings and Release of Public Versions of Reports.--The 
Commission shall ensure, to the maximum extent practicable, that--
            (1) all hearings of the Commission are available to the 
        public, including by--
                    (A) providing live and recorded public access to 
                hearings on the Internet; and
                    (B) publishing all transcripts and records of 
                hearings at such time and in such manner as is agreed 
                to by the majority of members of the Commission; and
            (2) transcripts and records of all meetings of the 
        Commission are published in a time and manner agreed to by a 
        majority of the members of the Commission; and
            (3) all reports, findings, and conclusions are made public.
    (c) Public Hearings.--Public hearings of the Commission shall be 
conducted in a manner consistent with the protection of information 
provided to or developed for or by the Commission as required by any 
applicable law (including regulations) or Executive order.

SEC. 510. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission such sums 
as are necessary to carry out this title, to remain available until the 
later of--
            (1) the date on which the funds are expended; or
            (2) the date of termination of the Commission under section 
        511.

SEC. 511. TERMINATION.

    (a) In General.--The Commission shall terminate on the date that is 
60 days after the date on which the final report is submitted under 
section 506(b).
    (b) Administrative Activities Before Termination.--During the 60-
day period described in subsection (a), the Commission may conclude the 
activities of the Commission, including--
            (1) providing testimony to appropriate committees of 
        Congress regarding the reports of the Commission; and
            (2) disseminating the final report of the Commission.
                                 <all>