[Congressional Record Volume 153, Number 186 (Thursday, December 6, 2007)]
[House]
[Pages H14270-H14434]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
Mr. DINGELL. Mr. Speaker, pursuant to House Resolution 846 and as
designee of the majority leader, I call up from the Speaker's table the
bill (H.R. 6) to reduce our Nation's dependency on foreign oil by
investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes, with
Senate amendments thereto, and ask for its immediate consideration in
the House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. The Clerk will designate the Senate
amendments.
The text of the Senate amendments is as follows:
Senate amendments:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Renewable
Fuels, Consumer Protection, and Energy Efficiency Act of
2007''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Relationship to other law.
TITLE I--BIOFUELS FOR ENERGY SECURITY AND TRANSPORTATION
Sec. 101. Short title.
Sec. 102. Definitions.
Subtitle A--Renewable Fuel Standard
Sec. 111. Renewable fuel standard.
Sec. 112. Production of renewable fuel using renewable energy.
Sec. 113. Sense of Congress relating to the use of renewable resources
to generate energy.
Subtitle B--Renewable Fuels Infrastructure
Sec. 121. Infrastructure pilot program for renewable fuels.
Sec. 122. Bioenergy research and development.
Sec. 123. Bioresearch centers for systems biology program.
Sec. 124. Loan guarantees for renewable fuel facilities.
Sec. 125. Grants for renewable fuel production research and development
in certain States.
Sec. 126. Grants for infrastructure for transportation of biomass to
local biorefineries.
Sec. 127. Biorefinery information center.
Sec. 128. Alternative fuel database and materials.
Sec. 129. Fuel tank cap labeling requirement.
Sec. 130. Biodiesel.
Sec. 131. Transitional assistance for farmers who plant dedicated
energy crops for a local cellulosic refinery.
Sec. 132. Research and development in support of low-carbon fuels.
Subtitle C--Studies
Sec. 141. Study of advanced biofuels technologies.
Sec. 142. Study of increased consumption of ethanol-blended gasoline
with higher levels of ethanol.
Sec. 143. Pipeline feasibility study.
Sec. 144. Study of optimization of flexible fueled vehicles to use E-85
fuel.
Sec. 145. Study of credits for use of renewable electricity in electric
vehicles.
Sec. 146. Study of engine durability associated with the use of
biodiesel.
Sec. 147. Study of incentives for renewable fuels.
Sec. 148. Study of streamlined lifecycle analysis tools for the
evaluation of renewable carbon content of biofuels.
Sec. 149. Study of effects of ethanol-blended gasoline on off-road
vehicles.
Sec. 150. Study of offshore wind resources.
Subtitle D--Environmental Safeguards
Sec. 161. Grants for production of advanced biofuels.
Sec. 162. Studies of effects of renewable fuel use.
Sec. 163. Integrated consideration of water quality in determinations
on fuels and fuel additives.
Sec. 164. Anti-backsliding.
TITLE II--ENERGY EFFICIENCY PROMOTION
Sec. 201. Short title.
Sec. 202. Definition of Secretary.
Subtitle A--Promoting Advanced Lighting Technologies
Sec. 211. Accelerated procurement of energy efficient lighting.
Sec. 212. Incandescent reflector lamp efficiency standards.
Sec. 213. Bright Tomorrow Lighting Prizes.
Sec. 214. Sense of Senate concerning efficient lighting standards.
Sec. 215. Renewable energy construction grants.
Subtitle B--Expediting New Energy Efficiency Standards
Sec. 221. Definition of energy conservation standard.
Sec. 222. Regional efficiency standards for heating and cooling
products.
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Sec. 223. Furnace fan rulemaking.
Sec. 224. Expedited rulemakings.
Sec. 225. Periodic reviews.
Sec. 226. Energy efficiency labeling for consumer electronic products.
Sec. 227. Residential boiler efficiency standards.
Sec. 228. Technical corrections.
Sec. 229. Electric motor efficiency standards.
Sec. 230. Energy standards for home appliances.
Sec. 231. Improved energy efficiency for appliances and buildings in
cold climates.
Sec. 232. Deployment of new technologies for high-efficiency consumer
products.
Sec. 233. Industrial efficiency program.
Subtitle C--Promoting High Efficiency Vehicles, Advanced Batteries, and
Energy Storage
Sec. 241. Lightweight materials research and development.
Sec. 242. Loan guarantees for fuel-efficient automobile parts
manufacturers.
Sec. 243. Advanced technology vehicles manufacturing incentive program.
Sec. 244. Energy storage competitiveness.
Sec. 245. Advanced transportation technology program.
Sec. 246. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 247. Commercial insulation demonstration program.
Subtitle D--Setting Energy Efficiency Goals
Sec. 251. Oil savings plan and requirements.
Sec. 252. National energy efficiency improvement goals.
Sec. 253. National media campaign.
Sec. 254. Modernization of electricity grid system.
Sec. 255. Smart grid system report.
Sec. 256. Smart grid technology research, development, and
demonstration.
Sec. 257. Smart grid interoperability framework.
Sec. 258. State consideration of smart grid.
Sec. 259. Support for energy independence of the United States.
Sec. 260. Energy Policy Commission.
Subtitle E--Promoting Federal Leadership in Energy Efficiency and
Renewable Energy
Sec. 261. Federal fleet conservation requirements.
Sec. 262. Federal requirement to purchase electricity generated by
renewable energy.
Sec. 263. Energy savings performance contracts.
Sec. 264. Energy management requirements for Federal buildings.
Sec. 265. Combined heat and power and district energy installations at
Federal sites.
Sec. 266. Federal building energy efficiency performance standards.
Sec. 267. Application of International Energy Conservation Code to
public and assisted housing.
Sec. 268. Energy efficient commercial buildings initiative.
Sec. 269. Clean energy corridors.
Sec. 270. Federal standby power standard.
Sec. 270A. Standard relating to solar hot water heaters.
Sec. 270B. Renewable energy innovation manufacturing partnership.
Sec. 270C. Express loans for renewable energy and energy efficiency.
Sec. 270D. Small business energy efficiency.
Subtitle F--Assisting State and Local Governments in Energy Efficiency
Sec. 271. Weatherization assistance for low-income persons.
Sec. 272. State energy conservation plans.
Sec. 273. Utility energy efficiency programs.
Sec. 274. Energy efficiency and demand response program assistance.
Sec. 275. Energy and environmental block grant.
Sec. 276. Energy sustainability and efficiency grants for institutions
of higher education.
Sec. 277. Energy efficiency and renewable energy worker training
program.
Sec. 278. Assistance to States to reduce school bus idling.
Sec. 279. Definition of State.
Sec. 280. Coordination of planned refinery outages.
Sec. 281. Technical criteria for clean coal power initiative.
Sec. 282. Administration.
Sec. 283. Offshore renewable energy.
Subtitle G--Marine and Hydrokinetic Renewable Energy Promotion
Sec. 291. Definition of marine and hydrokinetic renewable energy.
Sec. 292. Research and development.
Sec. 293. National ocean energy research centers.
TITLE III--CARBON CAPTURE AND STORAGE RESEARCH, DEVELOPMENT, AND
DEMONSTRATION
Sec. 301. Short title.
Sec. 302. Carbon capture and storage research, development, and
demonstration program.
Sec. 303. Carbon dioxide storage capacity assessment.
Sec. 304. Carbon capture and storage initiative.
Sec. 305. Capitol power plant carbon dioxide emissions demonstration
program.
Sec. 306. Assessment of carbon sequestration and methane and nitrous
oxide emissions from terrestrial ecosystems.
Sec. 307. Abrupt climate change research program.
TITLE IV--COST-EFFECTIVE AND ENVIRONMENTALLY SUSTAINABLE PUBLIC
BUILDINGS
Subtitle A--Public Buildings Cost Reduction
Sec. 401. Short title.
Sec. 402. Cost-effective and geothermal heat pump technology
acceleration program.
Sec. 403. Environmental Protection Agency demonstration grant program
for local governments.
Sec. 404. Definitions.
Subtitle B--Installation of Photovoltaic System at Department of Energy
Headquarters Building
Sec. 411. Installation of photovoltaic system at Department of Energy
headquarters building.
Subtitle C--High-Performance Green Buildings
Sec. 421. Short title.
Sec. 422. Findings and purposes.
Sec. 423. Definitions.
PART I--Office of High-Performance Green Buildings
Sec. 431. Oversight.
Sec. 432. Office of High-Performance Green Buildings.
Sec. 433. Green Building Advisory Committee.
Sec. 434. Public outreach.
Sec. 435. Research and development.
Sec. 436. Budget and life-cycle costing and contracting.
Sec. 437. Authorization of appropriations.
PART II--Healthy High-Performance Schools
Sec. 441. Definition of high-performance school.
Sec. 442. Grants for healthy school environments.
Sec. 443. Model guidelines for siting of school facilities.
Sec. 444. Public outreach.
Sec. 445. Environmental health program.
Sec. 446. Authorization of appropriations.
PART III--Strengthening Federal Leadership
Sec. 451. Incentives.
Sec. 452. Federal procurement.
Sec. 453. Federal green building performance.
Sec. 454. Storm water runoff requirements for Federal development
projects.
PART IV--Demonstration Project
Sec. 461. Coordination of goals.
Sec. 462. Authorization of appropriations.
TITLE V--CORPORATE AVERAGE FUEL ECONOMY STANDARDS
Sec. 501. Short title.
Sec. 502. Average fuel economy standards for automobiles and certain
other vehicles.
Sec. 503. Amending Fuel Economy Standards.
Sec. 504. Definitions.
Sec. 505. Ensuring safety of automobiles.
Sec. 506. Credit Trading Program.
Sec. 507. Labels for fuel economy and greenhouse gas emissions.
Sec. 508. Continued applicability of existing standards.
Sec. 509. National Academy of Sciences Studies.
Sec. 510. Standards for Executive agency automobiles.
Sec. 511. Increasing Consumer Awareness of Flexible Fuel Automobiles.
Sec. 512. Periodic review of accuracy of fuel economy labeling
procedures.
Sec. 513. Tire fuel efficiency consumer information.
Sec. 514. Advanced Battery Initiative.
Sec. 515. Biodiesel standards.
Sec. 516. Use of Civil Penalties for research and development.
Sec. 517. Energy Security Fund and Alternative Fuel Grant Program.
Sec. 518. Authorization of appropriations.
Sec. 519. Application with Clean Air Act.
Sec. 520. Alternative fuel vehicle action plan.
Sec. 521. Study of the adequacy of transportation of domestically-
produced renewable fuel by railroads and other modes of
transportation.
TITLE VI--PRICE GOUGING
Sec. 601. Short title.
Sec. 602. Definitions.
Sec. 603. Prohibition on price gouging during energy emergencies.
Sec. 604. Prohibition on market manipulation.
Sec. 605. Prohibition on false information.
Sec. 606. Presidential declaration of energy emergency.
Sec. 607. Enforcement by the Federal Trade Commission.
Sec. 608. Enforcement by State Attorneys General.
Sec. 609. Penalties.
Sec. 610. Effect on other laws.
TITLE VII--ENERGY DIPLOMACY AND SECURITY
Sec. 701. Short title.
Sec. 702. Definitions.
Sec. 703. Sense of Congress on energy diplomacy and security.
Sec. 704. Strategic energy partnerships.
Sec. 705. International energy crisis response mechanisms.
Sec. 706. Hemisphere energy cooperation forum.
Sec. 707. National Security Council reorganization.
Sec. 708. Annual national energy security strategy report.
Sec. 709. Appropriate congressional committees defined.
Sec. 710. No Oil Producing and Exporting Cartels Act of 2007.
Sec. 711. Convention on Supplementary Compensation for Nuclear Damage
contingent cost allocation.
TITLE VIII--MISCELLANEOUS
Sec. 801. Study of the effect of private wire laws on the development
of combined heat and power facilities.
SEC. 2. RELATIONSHIP TO OTHER LAW.
Except to the extent expressly provided in this Act or an
amendment made by this Act, nothing
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in this Act or an amendment made by this Act supersedes,
limits the authority provided or responsibility conferred by,
or authorizes any violation of any provision of law
(including a regulation), including any energy or
environmental law or regulation.
TITLE I--BIOFUELS FOR ENERGY SECURITY AND TRANSPORTATION
SEC. 101. SHORT TITLE.
This title may be cited as the ``Biofuels for Energy
Security and Transportation Act of 2007''.
SEC. 102. DEFINITIONS.
In this title:
(1) Advanced biofuel.--
(A) In general.--The term ``advanced biofuel'' means fuel
derived from renewable biomass other than corn starch.
(B) Inclusions.--The term ``advanced biofuel'' includes--
(i) ethanol derived from cellulose, hemicellulose, or
lignin;
(ii) ethanol derived from sugar or starch, other than
ethanol derived from corn starch;
(iii) ethanol derived from waste material, including crop
residue, other vegetative waste material, animal waste, and
food waste and yard waste;
(iv) diesel-equivalent fuel derived from renewable biomass,
including vegetable oil and animal fat;
(v) biogas (including landfill gas and sewage waste
treatment gas) produced through the conversion of organic
matter from renewable biomass;
(vi) butanol or other alcohols produced through the
conversion of organic matter from renewable biomass; and
(vii) other fuel derived from cellulosic biomass.
(2) Cellulosic biomass ethanol.--The term ``cellulosic
biomass ethanol'' means ethanol derived from any cellulose,
hemicellulose, or lignin that is derived from renewable
biomass.
(3) Conventional biofuel.--The term ``conventional
biofuel'' means ethanol derived from corn starch.
(4) Renewable biomass.--The term ``renewable biomass''
means--
(A) nonmerchantable materials or precommercial thinnings
that--
(i) are byproducts of preventive treatments, such as trees,
wood, brush, thinnings, chips, and slash, that are removed--
(I) to reduce hazardous fuels;
(II) to reduce or contain disease or insect infestation; or
(III) to restore forest health;
(ii) would not otherwise be used for higher-value products;
and
(iii) are harvested from National Forest System land or
public land (as defined in section 103 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1702))--
(I) where permitted by law; and
(II) in accordance with--
(aa) applicable land management plans; and
(bb) the requirements for old-growth maintenance,
restoration, and management direction of paragraphs (2), (3),
and (4) of subsection (e) and the requirements for large-tree
retention of subsection (f) of section 102 of the Healthy
Forests Restoration Act of 2003 (16 U.S.C. 6512); or
(B) any organic matter that is available on a renewable or
recurring basis from non-Federal land or from land belonging
to an Indian tribe, or an Indian individual, that is held in
trust by the United States or subject to a restriction
against alienation imposed by the United States, including--
(i) renewable plant material, including--
(I) feed grains;
(II) other agricultural commodities;
(III) other plants and trees; and
(IV) algae; and
(ii) waste material, including--
(I) crop residue;
(II) other vegetative waste material (including wood waste
and wood residues);
(III) animal waste and byproducts (including fats, oils,
greases, and manure); and
(IV) food waste and yard waste.
(5) Renewable fuel.--
(A) In general.--The term ``renewable fuel'' means motor
vehicle fuel or home heating fuel that is--
(i) produced from renewable biomass; and
(ii) used to replace or reduce the quantity of fossil fuel
present in a fuel or fuel mixture used to operate a motor
vehicle or furnace.
(B) Inclusion.--The term ``renewable fuel'' includes--
(i) conventional biofuel; and
(ii) advanced biofuel.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy
(7) Small refinery.--The term ``small refinery'' means a
refinery for which the average aggregate daily crude oil
throughput for a calendar year (as determined by dividing the
aggregate throughput for the calendar year by the number of
days in the calendar year) does not exceed 75,000 barrels.
Subtitle A--Renewable Fuel Standard
SEC. 111. RENEWABLE FUEL STANDARD.
(a) Renewable Fuel Program.--
(1) Regulations.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, the President shall promulgate
regulations to ensure that motor vehicle fuel and home
heating oil sold or introduced into commerce in the United
States (except in noncontiguous States or territories), on an
annual average basis, contains the applicable volume of
renewable fuel determined in accordance with paragraph (2).
(B) Provisions of regulations.--Regardless of the date of
promulgation, the regulations promulgated under subparagraph
(A)--
(i) shall contain compliance provisions applicable to
refineries, blenders, distributors, and importers, as
appropriate, to ensure that--
(I) the requirements of this subsection are met; and
(II) renewable fuels produced from facilities that commence
operations after the date of enactment of this Act achieve at
least a 20 percent reduction in life cycle greenhouse gas
emissions compared to gasoline; but
(ii) shall not--
(I) restrict geographic areas in the contiguous United
States in which renewable fuel may be used; or
(II) impose any per-gallon obligation for the use of
renewable fuel.
(C) Relationship to other regulations.--Regulations
promulgated under this paragraph shall, to the maximum extent
practicable, incorporate the program structure, compliance,
and reporting requirements established under the final
regulations promulgated to implement the renewable fuel
program established by the amendment made by section
1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-
58; 119 Stat. 1067).
(2) Applicable volume.--
(A) Calendar years 2008 through 2022.--
(i) Renewable fuel.--For the purpose of paragraph (1),
subject to clause (ii), the applicable volume for any of
calendar years 2008 through 2022 shall be determined in
accordance with the following table:
Applicable volume of renewable fuel
Calendar year: (in billions of gallons):
2008..........................................................8.5....
2009.........................................................10.5....
2010.........................................................12.0....
2011.........................................................12.6....
2012.........................................................13.2....
2013.........................................................13.8....
2014.........................................................14.4....
2015.........................................................15.0....
2016.........................................................18.0....
2017.........................................................21.0....
2018.........................................................24.0....
2019.........................................................27.0....
2020.........................................................30.0....
2021.........................................................33.0....
2022........................................................36.0.....
(ii) Advanced biofuels.--For the purpose of paragraph (1),
of the volume of renewable fuel required under clause (i),
the applicable volume for any of calendar years 2016 through
2022 for advanced biofuels shall be determined in accordance
with the following table:
Applicable volume of advanced biofuels
Calendar year: (in billions of gallons):
2016.........................................................3.0 ....
2017.........................................................6.0 ....
2018.........................................................9.0 ....
2019........................................................12.0 ....
2020........................................................15.0 ....
2021........................................................18.0 ....
2022........................................................21.0.....
(B) Calendar year 2023 and thereafter.--Subject to
subparagraph (C), for the purposes of paragraph (1), the
applicable volume for calendar year 2023 and each calendar
year thereafter shall be determined by the President, in
coordination with the Secretary of Energy, the Secretary of
Agriculture, and the Administrator of the Environmental
Protection Agency, based on a review of the implementation of
the program during calendar years 2007 through 2022,
including a review of--
(i) the impact of renewable fuels on the energy security of
the United States;
(ii) the expected annual rate of future production of
renewable fuels, including advanced biofuels;
(iii) the impact of renewable fuels on the infrastructure
of the United States, including deliverability of materials,
goods, and products other than renewable fuel, and the
sufficiency of infrastructure to deliver renewable fuel; and
(iv) the impact of the use of renewable fuels on other
factors, including job creation, the price and supply of
agricultural commodities, rural economic development, and the
environment.
(C) Minimum applicable volume.--Subject to subparagraph
(D), for the purpose of paragraph (1), the applicable volume
for calendar year 2023 and each calendar year thereafter
shall be equal to the product obtained by multiplying--
(i) the number of gallons of gasoline that the President
estimates will be sold or introduced into commerce in the
calendar year; and
(ii) the ratio that--
(I) 36,000,000,000 gallons of renewable fuel; bears to
(II) the number of gallons of gasoline sold or introduced
into commerce in calendar year 2022.
(D) Minimum percentage of advanced biofuel.--For the
purpose of paragraph (1) and subparagraph (C), at least 60
percent of the minimum applicable volume for calendar year
2023 and each calendar year thereafter shall be advanced
biofuel.
(b) Applicable Percentages.--
(1) Provision of estimate of volumes of gasoline sales.--
Not later than October 31 of each of calendar years 2008
through 2021, the Administrator of the Energy Information
Administration shall provide to the President an estimate,
with respect to the following calendar year, of the volumes
of gasoline projected to be sold or introduced into commerce
in the United States.
(2) Determination of applicable percentages.--
(A) In general.--Not later than November 30 of each of
calendar years 2008 through 2022, based on the estimate
provided under paragraph (1), the President shall determine
and publish in
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the Federal Register, with respect to the following calendar
year, the renewable fuel obligation that ensures that the
requirements of subsection (a) are met.
(B) Required elements.--The renewable fuel obligation
determined for a calendar year under subparagraph (A) shall--
(i) be applicable to refineries, blenders, and importers,
as appropriate;
(ii) be expressed in terms of a volume percentage of
gasoline sold or introduced into commerce in the United
States; and
(iii) subject to paragraph (3)(A), consist of a single
applicable percentage that applies to all categories of
persons specified in clause (i).
(3) Adjustments.--In determining the applicable percentage
for a calendar year, the President shall make adjustments--
(A) to prevent the imposition of redundant obligations on
any person specified in paragraph (2)(B)(i); and
(B) to account for the use of renewable fuel during the
previous calendar year by small refineries that are exempt
under subsection (g).
(c) Volume Conversion Factors for Renewable Fuels Based on
Energy Content or Requirements.--
(1) In general.--For the purpose of subsection (a), the
President shall assign values to specific types of advanced
biofuels for the purpose of satisfying the fuel volume
requirements of subsection (a)(2) in accordance with this
subsection.
(2) Energy content relative to ethanol.--For advanced
biofuel, 1 gallon of the advanced biofuel shall be considered
to be the equivalent of 1 gallon of renewable fuel multiplied
by the ratio that--
(A) the number of British thermal units of energy produced
by the combustion of 1 gallon of the advanced biofuel (as
measured under conditions determined by the Secretary); bears
to
(B) the number of British thermal units of energy produced
by the combustion of 1 gallon of pure ethanol (as measured
under conditions determined by the Secretary to be comparable
to conditions described in subparagraph (A)).
(3) Transitional energy-related conversion factors for
cellulosic biomass ethanol.--For any of calendar years 2008
through 2015, 1 gallon of cellulosic biomass ethanol shall be
considered to be the equivalent of 2.5 gallons of renewable
fuel.
(d) Credit Program.--
(1) In general.--The President, in consultation with the
Secretary and the Administrator of the Environmental
Protection Agency, shall implement a credit program to manage
the renewable fuel requirement of this section in a manner
consistent with the credit program established by the
amendment made by section 1501(a)(2) of the Energy Policy Act
of 2005 (Public Law 109-58; 119 Stat. 1067).
(2) Market transparency.--In carrying out the credit
program under this subsection, the President shall facilitate
price transparency in markets for the sale and trade of
credits, with due regard for the public interest, the
integrity of those markets, fair competition, and the
protection of consumers and agricultural producers.
(e) Seasonal Variations in Renewable Fuel Use.--
(1) Study.--For each of calendar years 2008 through 2022,
the Administrator of the Energy Information Administration
shall conduct a study of renewable fuel blending to determine
whether there are excessive seasonal variations in the use of
renewable fuel.
(2) Regulation of excessive seasonal variations.--If, for
any calendar year, the Administrator of the Energy
Information Administration, based on the study under
paragraph (1), makes the determinations specified in
paragraph (3), the President shall promulgate regulations to
ensure that 25 percent or more of the quantity of renewable
fuel necessary to meet the requirements of subsection (a) is
used during each of the 2 periods specified in paragraph (4)
of each subsequent calendar year.
(3) Determinations.--The determinations referred to in
paragraph (2) are that--
(A) less than 25 percent of the quantity of renewable fuel
necessary to meet the requirements of subsection (a) has been
used during 1 of the 2 periods specified in paragraph (4) of
the calendar year;
(B) a pattern of excessive seasonal variation described in
subparagraph (A) will continue in subsequent calendar years;
and
(C) promulgating regulations or other requirements to
impose a 25 percent or more seasonal use of renewable fuels
will not significantly--
(i) increase the price of motor fuels to the consumer; or
(ii) prevent or interfere with the attainment of national
ambient air quality standards.
(4) Periods.--The 2 periods referred to in this subsection
are--
(A) April through September; and
(B) January through March and October through December.
(f) Waivers.--
(1) In general.--The President, in consultation with the
Secretary of Energy, the Secretary of Agriculture, and the
Administrator of the Environmental Protection Agency, may
waive the requirements of subsection (a) in whole or in part
on petition by one or more States by reducing the national
quantity of renewable fuel required under subsection (a),
based on a determination by the President (after public
notice and opportunity for comment), that--
(A) implementation of the requirement would severely harm
the economy or environment of a State, a region, or the
United States; or
(B) extreme and unusual circumstances exist that prevent
distribution of an adequate supply of domestically-produced
renewable fuel to consumers in the United States.
(2) Petitions for waivers.--The President, in consultation
with the Secretary of Energy, the Secretary of Agriculture,
and the Administrator of the Environmental Protection Agency,
shall approve or disapprove a State petition for a waiver of
the requirements of subsection (a) within 30 days after the
date on which the petition is received by the President.
(3) Termination of waivers.--A waiver granted under
paragraph (1) shall terminate after 1 year, but may be
renewed by the President after consultation with the
Secretary of Energy, the Secretary of Agriculture, and the
Administrator of the Environmental Protection Agency.
(g) Small Refineries.--
(1) Temporary exemption.--
(A) In general.--The requirements of subsection (a) shall
not apply to--
(i) small refineries (other than a small refinery described
in clause (ii)) until calendar year 2013; and
(ii) small refineries owned by a small business refiner (as
defined in section 45H(c) of the Internal Revenue Code of
1986) until calendar year 2015.
(B) Extension of exemption.--
(i) Study by secretary.--Not later than December 31, 2008,
the Secretary shall submit to the President and Congress a
report describing the results of a study to determine whether
compliance with the requirements of subsection (a) would
impose a disproportionate economic hardship on small
refineries.
(ii) Extension of exemption.--In the case of a small
refinery that the Secretary determines under clause (i) would
be subject to a disproportionate economic hardship if
required to comply with subsection (a), the President shall
extend the exemption under subparagraph (A) for the small
refinery for a period of not less than 2 additional years.
(2) Petitions based on disproportionate economic
hardship.--
(A) Extension of exemption.--A small refinery may at any
time petition the President for an extension of the exemption
under paragraph (1) for the reason of disproportionate
economic hardship.
(B) Evaluation of petitions.--In evaluating a petition
under subparagraph (A), the President, in consultation with
the Secretary, shall consider the findings of the study under
paragraph (1)(B) and other economic factors.
(C) Deadline for action on petitions.--The President shall
act on any petition submitted by a small refinery for a
hardship exemption not later than 90 days after the date of
receipt of the petition.
(3) Opt-in for small refineries.--A small refinery shall be
subject to the requirements of subsection (a) if the small
refinery notifies the President that the small refinery
waives the exemption under paragraph (1).
(h) Penalties and Enforcement.--
(1) Civil penalties.--
(A) In general.--Any person that violates a regulation
promulgated under subsection (a), or that fails to furnish
any information required under such a regulation, shall be
liable to the United States for a civil penalty of not more
than the total of--
(i) $25,000 for each day of the violation; and
(ii) the amount of economic benefit or savings received by
the person resulting from the violation, as determined by the
President.
(B) Collection.--Civil penalties under subparagraph (A)
shall be assessed by, and collected in a civil action brought
by, the Secretary or such other officer of the United States
as is designated by the President.
(2) Injunctive authority.--
(A) In general.--The district courts of the United States
shall have jurisdiction to--
(i) restrain a violation of a regulation promulgated under
subsection (a);
(ii) award other appropriate relief; and
(iii) compel the furnishing of information required under
the regulation.
(B) Actions.--An action to restrain such violations and
compel such actions shall be brought by and in the name of
the United States.
(C) Subpoenas.--In the action, a subpoena for a witness who
is required to attend a district court in any district may
apply in any other district.
(i) Voluntary Labeling Program.--
(1) In general.--The President shall establish criteria for
a system of voluntary labeling of renewable fuels based on
life cycle greenhouse gas emissions.
(2) Consumer education.--The President shall ensure that
the labeling system under this subsection provides useful
information to consumers making fuel purchases.
(3) Flexibility.--In carrying out this subsection, the
President may establish more than 1 label, as appropriate.
(j) Study of Impact of Renewable Fuel Standard.--
(1) In general.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which
the Academy shall conduct a study to assess the impact of the
requirements described in subsection (a)(2) on each industry
relating to the production of feed grains, livestock, food,
and energy.
(2) Participation.--In conducting the study under paragraph
(1), the National Academy of Sciences shall seek the
participation, and consider the input, of--
(A) producers of feed grains;
(B) producers of livestock, poultry, and pork products;
(C) producers of food and food products;
(D) producers of energy;
(E) individuals and entities interested in issues relating
to conservation, the environment, and nutrition; and
(F) users of renewable fuels.
(3) Considerations.--In conducting the study, the National
Academy of Sciences shall consider--
(A) the likely impact on domestic animal agriculture
feedstocks that, in any crop year, are significantly below
current projections; and
[[Page H14274]]
(B) policy options to alleviate the impact on domestic
animal agriculture feedstocks that are significantly below
current projections.
(4) Components.--The study shall include--
(A) a description of the conditions under which the
requirements described in subsection (a)(2) should be
suspended or reduced to prevent adverse impacts to domestic
animal agriculture feedstocks described in paragraph (3)(B);
and
(B) recommendations for the means by which the Federal
Government could prevent or minimize adverse economic
hardships and impacts.
(5) Deadline for completion of study.--Not later than 270
days after the date of enactment of this Act, the Secretary
shall submit to Congress a report that describes the results
of the study.
(6) Periodic reviews.--
(A) In general.--To allow for the appropriate adjustment of
the requirements described in subsection (a)(2), the
Secretary shall conduct periodic reviews of--
(i) existing technologies;
(ii) the feasibility of achieving compliance with the
requirements; and
(iii) the impacts of the requirements described in
subsection (a)(2) on each individual and entity described in
paragraph (2).
(k) Effective Date.--Except as otherwise specifically
provided in this section, this section takes effect on the
date on which the National Academies of Science completes the
study under subsection (j).
SEC. 112. PRODUCTION OF RENEWABLE FUEL USING RENEWABLE
ENERGY.
(a) Definitions.--In this section:
(1) Facility.--The term ``facility'' means a facility used
for the production of renewable fuel.
(2) Renewable energy.--
(A) In general.--The term ``renewable energy'' has the
meaning given the term in section 203(b) of the Energy Policy
Act of 2005 (42 U.S.C. 15852(b)).
(B) Inclusion.--The term ``renewable energy'' includes
biogas produced through the conversion of organic matter from
renewable biomass.
(b) Additional Credit.--
(1) In general.--The President shall provide a credit under
the program established under section 111(d) to the owner of
a facility that uses renewable energy to displace more than
90 percent of the fossil fuel normally used in the production
of renewable fuel.
(2) Credit amount.--The President may provide the credit in
a quantity that is not more than the equivalent of 1.5
gallons of renewable fuel for each gallon of renewable fuel
produced in a facility described in paragraph (1).
SEC. 113. SENSE OF CONGRESS RELATING TO THE USE OF RENEWABLE
RESOURCES TO GENERATE ENERGY.
(a) Findings.--Congress finds that--
(1) the United States has a quantity of renewable energy
resources that is sufficient to supply a significant portion
of the energy needs of the United States;
(2) the agricultural, forestry, and working land of the
United States can help ensure a sustainable domestic energy
system;
(3) accelerated development and use of renewable energy
technologies provide numerous benefits to the United States,
including improved national security, improved balance of
payments, healthier rural economies, improved environmental
quality, and abundant, reliable, and affordable energy for
all citizens of the United States;
(4) the production of transportation fuels from renewable
energy would help the United States meet rapidly growing
domestic and global energy demands, reduce the dependence of
the United States on energy imported from volatile regions of
the world that are politically unstable, stabilize the cost
and availability of energy, and safeguard the economy and
security of the United States;
(5) increased energy production from domestic renewable
resources would attract substantial new investments in energy
infrastructure, create economic growth, develop new jobs for
the citizens of the United States, and increase the income
for farm, ranch, and forestry jobs in the rural regions of
the United States;
(6) increased use of renewable energy is practical and can
be cost effective with the implementation of supportive
policies and proper incentives to stimulate markets and
infrastructure; and
(7) public policies aimed at enhancing renewable energy
production and accelerating technological improvements will
further reduce energy costs over time and increase market
demand.
(b) Sense of Congress.--It is the sense of Congress that it
is the goal of the United States that, not later than January
1, 2025, the agricultural, forestry, and working land of the
United States should--
(1) provide from renewable resources not less than 25
percent of the total energy consumed in the United States;
and
(2) continue to produce safe, abundant, and affordable
food, feed, and fiber.
Subtitle B--Renewable Fuels Infrastructure
SEC. 121. INFRASTRUCTURE PILOT PROGRAM FOR RENEWABLE FUELS.
(a) In General.--The Secretary, in consultation with the
Secretary of Transportation and the Administrator of the
Environmental Protection Agency, shall establish a
competitive grant pilot program (referred to in this section
as the ``pilot program''), to be administered through the
Vehicle Technology Deployment Program of the Department of
Energy, to provide not more than 10 geographically-dispersed
project grants to State governments, Indian tribal
governments, local governments, metropolitan transportation
authorities, or partnerships of those entities to carry out 1
or more projects for the purposes described in subsection
(b).
(b) Grant Purposes.--A grant under this section shall be
used for the establishment of refueling infrastructure
corridors, as designated by the Secretary, for gasoline
blends that contain not less than 11 percent, and not more
than 85 percent, renewable fuel or diesel fuel that contains
at least 10 percent renewable fuel, including--
(1) installation of infrastructure and equipment necessary
to ensure adequate distribution of renewable fuels within the
corridor;
(2) installation of infrastructure and equipment necessary
to directly support vehicles powered by renewable fuels; and
(3) operation and maintenance of infrastructure and
equipment installed as part of a project funded by the grant.
(c) Applications.--
(1) Requirements.--
(A) In general.--Subject to subparagraph (B), not later
than 90 days after the date of enactment of this Act, the
Secretary shall issue requirements for use in applying for
grants under the pilot program.
(B) Minimum requirements.--At a minimum, the Secretary
shall require that an application for a grant under this
section--
(i) be submitted by--
(I) the head of a State, tribal, or local government or a
metropolitan transportation authority, or any combination of
those entities; and
(II) a registered participant in the Vehicle Technology
Deployment Program of the Department of Energy; and
(ii) include--
(I) a description of the project proposed in the
application, including the ways in which the project meets
the requirements of this section;
(II) an estimate of the degree of use of the project,
including the estimated size of fleet of vehicles operated
with renewable fuel available within the geographic region of
the corridor, measured as a total quantity and a percentage;
(III) an estimate of the potential petroleum displaced as a
result of the project (measured as a total quantity and a
percentage), and a plan to collect and disseminate petroleum
displacement and other relevant data relating to the project
to be funded under the grant, over the expected life of the
project;
(IV) a description of the means by which the project will
be sustainable without Federal assistance after the
completion of the term of the grant;
(V) a complete description of the costs of the project,
including acquisition, construction, operation, and
maintenance costs over the expected life of the project; and
(VI) a description of which costs of the project will be
supported by Federal assistance under this subsection.
(2) Partners.--An applicant under paragraph (1) may carry
out a project under the pilot program in partnership with
public and private entities.
(d) Selection Criteria.--In evaluating applications under
the pilot program, the Secretary shall--
(1) consider the experience of each applicant with
previous, similar projects; and
(2) give priority consideration to applications that--
(A) are most likely to maximize displacement of petroleum
consumption, measured as a total quantity and a percentage;
(B) are best able to incorporate existing infrastructure
while maximizing, to the extent practicable, the use of
advanced biofuels;
(C) demonstrate the greatest commitment on the part of the
applicant to ensure funding for the proposed project and the
greatest likelihood that the project will be maintained or
expanded after Federal assistance under this subsection is
completed;
(D) represent a partnership of public and private entities;
and
(E) exceed the minimum requirements of subsection
(c)(1)(B).
(e) Pilot Project Requirements.--
(1) Maximum amount.--The Secretary shall provide not more
than $20,000,000 in Federal assistance under the pilot
program to any applicant.
(2) Cost sharing.--The non-Federal share of the cost of any
activity relating to renewable fuel infrastructure
development carried out using funds from a grant under this
section shall be not less than 20 percent.
(3) Maximum period of grants.--The Secretary shall not
provide funds to any applicant under the pilot program for
more than 2 years.
(4) Deployment and distribution.--The Secretary shall seek,
to the maximum extent practicable, to ensure a broad
geographic distribution of project sites funded by grants
under this section.
(5) Transfer of information and knowledge.--The Secretary
shall establish mechanisms to ensure that the information and
knowledge gained by participants in the pilot program are
transferred among the pilot program participants and to other
interested parties, including other applicants that submitted
applications.
(f) Schedule.--
(1) Initial grants.--
(A) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register, Commerce Business Daily, and such other
publications as the Secretary considers to be appropriate, a
notice and request for applications to carry out projects
under the pilot program.
(B) Deadline.--An application described in subparagraph (A)
shall be submitted to the Secretary by not later than 180
days after the date of publication of the notice under that
subparagraph.
(C) Initial selection.--Not later than 90 days after the
date by which applications for grants are due under
subparagraph (B), the Secretary shall select by competitive,
peer-reviewed proposal up to 5 applications for projects to
be awarded a grant under the pilot program.
(2) Additional grants.--
[[Page H14275]]
(A) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register, Commerce Business Daily, and such other
publications as the Secretary considers to be appropriate, a
notice and request for additional applications to carry out
projects under the pilot program that incorporate the
information and knowledge obtained through the implementation
of the first round of projects authorized under the pilot
program.
(B) Deadline.--An application described in subparagraph (A)
shall be submitted to the Secretary by not later than 180
days after the date of publication of the notice under that
subparagraph.
(C) Initial selection.--Not later than 90 days after the
date by which applications for grants are due under
subparagraph (B), the Secretary shall select by competitive,
peer-reviewed proposal such additional applications for
projects to be awarded a grant under the pilot program as the
Secretary determines to be appropriate.
(g) Reports to Congress.--
(1) Initial report.--Not later than 60 days after the date
on which grants are awarded under this section, the Secretary
shall submit to Congress a report containing--
(A) an identification of the grant recipients and a
description of the projects to be funded under the pilot
program;
(B) an identification of other applicants that submitted
applications for the pilot program but to which funding was
not provided; and
(C) a description of the mechanisms used by the Secretary
to ensure that the information and knowledge gained by
participants in the pilot program are transferred among the
pilot program participants and to other interested parties,
including other applicants that submitted applications.
(2) Evaluation.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter until the
termination of the pilot program, the Secretary shall submit
to Congress a report containing an evaluation of the
effectiveness of the pilot program, including an assessment
of the petroleum displacement and benefits to the environment
derived from the projects included in the pilot program.
(h) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$200,000,000, to remain available until expended.
SEC. 122. BIOENERGY RESEARCH AND DEVELOPMENT.
Section 931(c) of the Energy Policy Act of 2005 (42 U.S.C.
16231(c)) is amended--
(1) in paragraph (2), by striking ``$251,000,000'' and
inserting ``$377,000,000''; and
(2) in paragraph (3), by striking ``$274,000,000'' and
inserting ``$398,000,000''.
SEC. 123. BIORESEARCH CENTERS FOR SYSTEMS BIOLOGY PROGRAM.
Section 977(a)(1) of the Energy Policy Act of 2005 (42
U.S.C. 16317(a)(1)) is amended by inserting before the period
at the end the following: ``, including the establishment of
at least 11 bioresearch centers of varying sizes, as
appropriate, that focus on biofuels, of which at least 2
centers shall be located in each of the 4 Petroleum
Administration for Defense Districts with no subdistricts and
1 center shall be located in each of the subdistricts of the
Petroleum Administration for Defense District with
subdistricts''.
SEC. 124. LOAN GUARANTEES FOR RENEWABLE FUEL FACILITIES.
(a) In General.--Section 1703 of the Energy Policy Act of
2005 (42 U.S.C. 16513) is amended by adding at the end the
following:
``(f) Renewable Fuel Facilities.--
``(1) In general.--The Secretary may make guarantees under
this title for projects that produce advanced biofuel (as
defined in section 102 of the Biofuels for Energy Security
and Transportation Act of 2007).
``(2) Requirements.--A project under this subsection shall
employ new or significantly improved technologies for the
production of renewable fuels as compared to commercial
technologies in service in the United States at the time that
the guarantee is issued.
``(3) Issuance of first loan guarantees.--The requirement
of section 20320(b) of division B of the Continuing
Appropriations Resolution, 2007 (Public Law 109-289, Public
Law 110-5), relating to the issuance of final regulations,
shall not apply to the first 6 guarantees issued under this
subsection.
``(4) Project design.--A project for which a guarantee is
made under this subsection shall have a project design that
has been validated through the operation of a continuous
process pilot facility with an annual output of at least
50,000 gallons of ethanol or the energy equivalent volume of
other advanced biofuels.
``(5) Maximum guaranteed principal.--The total principal
amount of a loan guaranteed under this subsection may not
exceed $250,000,000 for a single facility.
``(6) Amount of guarantee.--The Secretary shall guarantee
100 percent of the principal and interest due on 1 or more
loans made for a facility that is the subject of the
guarantee under paragraph (3).
``(7) Deadline.--The Secretary shall approve or disapprove
an application for a guarantee under this subsection not
later than 90 days after the date of receipt of the
application.
``(8) Report.--Not later than 30 days after approving or
disapproving an application under paragraph (7), the
Secretary shall submit to Congress a report on the approval
or disapproval (including the reasons for the action).''.
(b) Improvements to Underlying Loan Guarantee Authority.--
(1) Definition of commercial technology.--Section 1701(1)
of the Energy Policy Act of 2005 (42 U.S.C. 16511(1)) is
amended by striking subparagraph (B) and inserting the
following:
``(B) Exclusion.--The term `commercial technology' does not
include a technology if the sole use of the technology is in
connection with--
``(i) a demonstration plant; or
``(ii) a project for which the Secretary approved a loan
guarantee.''.
(2) Specific appropriation or contribution.--Section 1702
of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended
by striking subsection (b) and inserting the following:
``(b) Specific Appropriation or Contribution.--
``(1) In general.--No guarantee shall be made unless--
``(A) an appropriation for the cost has been made; or
``(B) the Secretary has received from the borrower a
payment in full for the cost of the obligation and deposited
the payment into the Treasury.
``(2) Limitation.--The source of payments received from a
borrower under paragraph (1)(B) shall not be a loan or other
debt obligation that is made or guaranteed by the Federal
Government.
``(3) 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 or loan guarantee made in accordance with
paragraph (1)(B).''.
(3) Amount.--Section 1702 of the Energy Policy Act of 2005
(42 U.S.C. 16512) is amended by striking subsection (c) and
inserting the following:
``(c) Amount.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall guarantee up to 100 percent of the principal and
interest due on 1 or more loans for a facility that are the
subject of the guarantee.
``(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.''.
(4) Subrogation.--Section 1702(g)(2) of the Energy Policy
Act of 2005 (42 U.S.C. 16512(g)(2)) is amended--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as subparagraph (B).
(5) 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. 125. GRANTS FOR RENEWABLE FUEL PRODUCTION RESEARCH AND
DEVELOPMENT IN CERTAIN STATES.
(a) In General.--The Secretary shall provide grants to
eligible entities to conduct research into, and develop and
implement, renewable fuel production technologies in States
with low rates of ethanol production, including low rates of
production of cellulosic biomass ethanol, as determined by
the Secretary.
(b) Eligibility.--To be eligible to receive a grant under
the section, an entity shall--
(1)(A) be an institution of higher education (as defined in
section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801))
located in a State described in subsection (a);
(B) be an institution--
(i) referred to in section 532 of the Equity in Educational
Land-Grant Status Act of 1994 (Public Law 103-382; 7 U.S.C.
301 note);
(ii) that is eligible for a grant under the Tribally
Controlled College or University Assistance Act of 1978 (25
U.S.C. 1801 et seq.), including Dine College; or
(iii) that is eligible for a grant under the Navajo
Community College Act (25 U.S.C. 640a et seq.); or
(C) be a consortium of such institutions of higher
education, industry, State agencies, Indian tribal agencies,
or local government agencies located in the State; and
(2) have proven experience and capabilities with relevant
technologies.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $25,000,000 for
each of fiscal years 2008 through 2010.
SEC. 126. GRANTS FOR INFRASTRUCTURE FOR TRANSPORTATION OF
BIOMASS TO LOCAL BIOREFINERIES.
(a) In General.--The Secretary shall conduct a program
under which the Secretary shall provide grants to Indian
tribal and local governments and other eligible entities (as
determined by the Secretary) (referred to in this section as
``eligible entities'') to promote the development of
infrastructure to support the separation, production,
processing, and transportation of biomass to local
biorefineries, including by portable processing equipment.
(b) Phases.--The Secretary shall conduct the program in the
following phases:
(1) Development.--In the first phase of the program, the
Secretary shall make grants to eligible entities to assist
the eligible entities in the development of local projects to
promote the development of infrastructure to support the
separation, production, processing, and transportation of
biomass to local biorefineries, including by portable
processing equipment.
(2) Implementation.--In the second phase of the program,
the Secretary shall make competitive grants to eligible
entities to implement projects developed under paragraph (1).
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
[[Page H14276]]
SEC. 127. BIOREFINERY INFORMATION CENTER.
(a) In General.--The Secretary, in cooperation with the
Secretary of Agriculture, shall establish a biorefinery
information center to make available to interested parties
information on--
(1) renewable fuel resources, including information on
programs and incentives for renewable fuels;
(2) renewable fuel producers;
(3) renewable fuel users; and
(4) potential renewable fuel users.
(b) Administration.--In administering the biorefinery
information center, the Secretary shall--
(1) continually update information provided by the center;
(2) make information available to interested parties on the
process for establishing a biorefinery; and
(3) make information and assistance provided by the center
available through a toll-free telephone number and website.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
SEC. 128. ALTERNATIVE FUEL DATABASE AND MATERIALS.
The Secretary and the Director of the National Institute of
Standards and Technology shall jointly establish and make
available to the public--
(1) a database that describes the physical properties of
different types of alternative fuel; and
(2) standard reference materials for different types of
alternative fuel.
SEC. 129. FUEL TANK CAP LABELING REQUIREMENT.
Section 406(a) of the Energy Policy Act of 1992 (42 U.S.C.
13232(a)) is amended--
(1) by striking ``The Federal Trade Commission'' and
inserting the following:
``(1) In general.--The Federal Trade Commission''; and
(2) by adding at the end the following:
``(2) Fuel tank cap labeling requirement.--Beginning with
model year 2010, the fuel tank cap of each alternative fueled
vehicle manufactured for sale in the United States shall be
clearly labeled to inform consumers that such vehicle can
operate on alternative fuel.''.
SEC. 130. BIODIESEL.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to Congress
a report on any research and development challenges inherent
in increasing to 5 percent the proportion of diesel fuel sold
in the United States that is biodiesel (as defined in section
757 of the Energy Policy Act of 2005 (42 U.S.C. 16105)).
(b) Regulations.--The President shall promulgate
regulations providing for the uniform labeling of biodiesel
blends that are certified to meet applicable standards
published by the American Society for Testing and Materials.
(c) National Biodiesel Fuel Quality Standard.--
(1) Quality regulations.--Not later than 180 days after the
date of enactment of this Act, the President shall promulgate
regulations to ensure that each diesel-equivalent fuel
derived from renewable biomass and introduced into interstate
commerce is tested and certified to comply with applicable
standards of the American Society for Testing and Materials.
(2) Enforcement.--The President shall ensure that all
biodiesel entering interstate commerce meets the requirements
of paragraph (1).
(3) Funding.--There are authorized to be appropriated to
the President to carry out this section:
(A) $3,000,000 for fiscal year 2008.
(B) $3,000,000 for fiscal year 2009.
(C) $3,000,000 for fiscal year 2010.
SEC. 131. TRANSITIONAL ASSISTANCE FOR FARMERS WHO PLANT
DEDICATED ENERGY CROPS FOR A LOCAL CELLULOSIC
REFINERY.
(a) Definitions.--In this section:
(1) Cellulosic crop.--The term ``cellulosic crop'' means a
tree or grass that is grown specifically--
(A) to provide raw materials (including feedstocks) for
conversion to liquid transportation fuels or chemicals
through biochemical or thermochemical processes; or
(B) for energy generation through combustion, pyrolysis, or
cofiring.
(2) Cellulosic refiner.--The term ``cellulosic refiner''
means the owner or operator of a cellulosic refinery.
(3) Cellulosic refinery.--The term ``cellulosic refinery''
means a refinery that processes a cellulosic crop.
(4) Qualified cellulosic crop.--The term ``qualified
cellulosic crop'' means, with respect to an agricultural
producer, a cellulosic crop that is--
(A) the subject of a contract or memorandum of
understanding between the producer and a cellulosic refiner,
under which the producer is obligated to sell the crop to the
cellulosic refiner by a certain date; and
(B) produced not more than 70 miles from a cellulosic
refinery owned or operated by the cellulosic refiner.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Transitional Assistance Payments.--The Secretary shall
make transitional assistance payments to an agricultural
producer during the first year in which the producer devotes
land to the production of a qualified cellulosic crop.
(c) Amount of Payment.--
(1) Determined by formula.--Subject to paragraph (2), the
Secretary shall devise a formula to be used to calculate the
amount of a payment to be made to an agricultural producer
under this section, based on the opportunity cost (as
determined in accordance with such standard as the Secretary
may establish, taking into consideration land rental rates
and other applicable costs) incurred by the producer during
the first year in which the producer devotes land to the
production of the qualified cellulosic crop.
(2) Limitation.--The total of the amount paid to a producer
under this section shall not exceed an amount equal to 25
percent of the amounts made available under subsection (e)
for the applicable fiscal year.
(d) Regulations.--The Secretary shall promulgate such
regulations as the Secretary determines to be necessary to
carry out this section.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $4,088,000 for
each of fiscal years 2008 through 2012, to remain available
until expended.
SEC. 132. RESEARCH AND DEVELOPMENT IN SUPPORT OF LOW-CARBON
FUELS.
(a) Declaration of Policy.--Congress declares that, in
order to achieve maximum reductions in greenhouse gas
emissions, enhance national security, and ensure the
protection of wildlife habitat, biodiversity, water quality,
air quality, and rural and regional economies throughout the
lifecycle of each low-carbon fuel, it is necessary and
desirable to undertake a combination of basic and applied
research, as well as technology development and
demonstration, involving the colleges and universities of the
United States, in partnership with the Federal Government,
State governments, and the private sector.
(b) Purpose.--The purpose of this section is to provide for
research support to facilitate the development of sustainable
markets and technologies to produce and use woody biomass and
other low-carbon fuels for the production of thermal and
electric energy, biofuels, and bioproducts.
(c) Definition of Fuel Emission Baseline.--In this section,
the term ``fuel emission baseline'' means the average
lifecycle greenhouse gas emissions per unit of energy of the
fossil fuel component of conventional transportation fuels in
commerce in the United States in calendar year 2008, as
determined by the President.
(d) Grant Program.--The President shall establish a program
to provide to eligible entities (as identified by the
President) grants for use in--
(1) providing financial support for not more than 4 nor
less than 6 demonstration facilities that--
(A) use woody biomass to deploy advanced technologies for
production of thermal and electric energy, biofuels, and
bioproducts; and
(B) are targeted at regional feedstocks and markets;
(2) conducting targeted research for the development of
cellulosic ethanol and other liquid fuels from woody or other
biomass that may be used in transportation or stationary
applications, such as industrial processes or industrial,
commercial, and residential heating;
(3) conducting research into the best scientifically-based
and periodically-updated methods of assessing and certifying
the impacts of each low-carbon fuel with respect to--
(A) the reduction in lifecycle greenhouse gas emissions of
each fuel as compared to--
(i) the fuel emission baseline; and
(ii) the greenhouse gas emissions of other sectors, such as
the agricultural, industrial, and manufacturing sectors;
(B) the contribution of the fuel toward enhancing the
energy security of the United States by displacing imported
petroleum and petroleum products;
(C) any impacts of the fuel on wildlife habitat,
biodiversity, water quality, and air quality; and
(D) any effect of the fuel with respect to rural and
regional economies;
(4) conducting research to determine to what extent the use
of low-carbon fuels in the transportation sector would impact
greenhouse gas emissions in other sectors, such as the
agricultural, industrial, and manufacturing sectors;
(5) conducting research for the development of the supply
infrastructure that may provide renewable biomass feedstocks
in a consistent, predictable, and environmentally-sustainable
manner;
(6) conducting research for the development of supply
infrastructure that may provide renewable low-carbon fuels in
a consistent, predictable, and environmentally-sustainable
manner; and
(7) conducting policy research on the global movement of
low-carbon fuels in a consistent, predictable, and
environmentally-sustainable manner.
(e) Authorization of Appropriations.--Of the funding
authorized under section 122, there are authorized to be
appropriated to carry out this section--
(1) $45,000,000 for fiscal year 2009;
(2) $50,000,000 for fiscal year 2010;
(3) $55,000,000 for fiscal year 2011;
(4) $60,000,000 for fiscal year 2012; and
(5) $65,000,000 for fiscal year 2013.
Subtitle C--Studies
SEC. 141. STUDY OF ADVANCED BIOFUELS TECHNOLOGIES.
(a) In General.--Not later than October 1, 2012, the
Secretary shall offer to enter into a contract with the
National Academy of Sciences under which the Academy shall
conduct a study of technologies relating to the production,
transportation, and distribution of advanced biofuels.
(b) Scope.--In conducting the study, the Academy shall--
(1) include an assessment of the maturity of advanced
biofuels technologies;
(2) consider whether the rate of development of those
technologies will be sufficient to meet the advanced biofuel
standards required under section 111;
(3) consider the effectiveness of the research and
development programs and activities of the
[[Page H14277]]
Department of Energy relating to advanced biofuel
technologies; and
(4) make policy recommendations to accelerate the
development of those technologies to commercial viability, as
appropriate.
(c) Report.--Not later than November 30, 2014, the
Secretary shall submit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report describing
the results of the study conducted under this section.
SEC. 142. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED
GASOLINE WITH HIGHER LEVELS OF ETHANOL.
(a) In General.--The Secretary, in cooperation with the
Secretary of Agriculture, the Administrator of the
Environmental Protection Agency, and the Secretary of
Transportation, and after providing notice and an opportunity
for public comment, shall conduct a study of the feasibility
of increasing consumption in the United States of ethanol-
blended gasoline with levels of ethanol that are not less
than 10 percent and not more than 40 percent.
(b) Study.--The study under subsection (a) shall include--
(1) a review of production and infrastructure constraints
on increasing consumption of ethanol;
(2) an evaluation of the economic, market, and energy-
related impacts of State and regional differences in ethanol
blends;
(3) an evaluation of the economic, market, and energy-
related impacts on gasoline retailers and consumers of
separate and distinctly labeled fuel storage facilities and
dispensers;
(4) an evaluation of the environmental impacts of mid-level
ethanol blends on evaporative and exhaust emissions from on-
road, off-road, and marine engines, recreational boats,
vehicles, and equipment;
(5) an evaluation of the impacts of mid-level ethanol
blends on the operation, durability, and performance of on-
road, off-road, and marine engines, recreational boats,
vehicles, and equipment; and
(6) an evaluation of the safety impacts of mid-level
ethanol blends on consumers that own and operate off-road and
marine engines, recreational boats, vehicles, or equipment.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
a report describing the results of the study conducted under
this section.
SEC. 143. PIPELINE FEASIBILITY STUDY.
(a) In General.--The Secretary, in coordination with the
Secretary of Agriculture and the Secretary of Transportation,
shall conduct a study of the feasibility of the construction
of dedicated ethanol pipelines.
(b) Factors.--In conducting the study, the Secretary shall
consider--
(1) the quantity of ethanol production that would make
dedicated pipelines economically viable;
(2) existing or potential barriers to dedicated ethanol
pipelines, including technical, siting, financing, and
regulatory barriers;
(3) market risk (including throughput risk) and means of
mitigating the risk;
(4) regulatory, financing, and siting options that would
mitigate risk in those areas and help ensure the construction
of 1 or more dedicated ethanol pipelines;
(5) financial incentives that may be necessary for the
construction of dedicated ethanol pipelines, including the
return on equity that sponsors of the initial dedicated
ethanol pipelines will require to invest in the pipelines;
(6) technical factors that may compromise the safe
transportation of ethanol in pipelines, identifying remedial
and preventative measures to ensure pipeline integrity; and
(7) such other factors as the Secretary considers
appropriate.
(c) Report.--Not later than 15 months after the date of
enactment of this Act, the Secretary shall submit to Congress
a report describing the results of the study conducted under
this section.
SEC. 144. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES
TO USE E-85 FUEL.
(a) In General.--The Secretary shall conduct a study of
methods of increasing the fuel efficiency of flexible fueled
vehicles by optimizing flexible fueled vehicles to operate
using E-85 fuel.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and
the Committee on Natural Resources of the House of
Representatives a report that describes the results of the
study, including any recommendations of the Secretary.
SEC. 145. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY
IN ELECTRIC VEHICLES.
(a) Definition of Electric Vehicle.--In this section, the
term ``electric vehicle'' means an electric motor vehicle (as
defined in section 601 of the Energy Policy Act of 1992 (42
U.S.C. 13271)) for which the rechargeable storage battery--
(1) receives a charge directly from a source of electric
current that is external to the vehicle; and
(2) provides a minimum of 80 percent of the motive power of
the vehicle.
(b) Study.--The Secretary shall conduct a study on the
feasibility of issuing credits under the program established
under section 111(d) to electric vehicles powered by
electricity produced from renewable energy sources.
(c) Report.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and
the Committee on Energy and Commerce of the House of
Representatives a report that describes the results of the
study, including a description of--
(1) existing programs and studies on the use of renewable
electricity as a means of powering electric vehicles; and
(2) alternatives for--
(A) designing a pilot program to determine the feasibility
of using renewable electricity to power electric vehicles as
an adjunct to a renewable fuels mandate;
(B) allowing the use, under the pilot program designed
under subparagraph (A), of electricity generated from nuclear
energy as an additional source of supply;
(C) identifying the source of electricity used to power
electric vehicles; and
(D) equating specific quantities of electricity to
quantities of renewable fuel under section 111(d).
SEC. 146. STUDY OF ENGINE DURABILITY ASSOCIATED WITH THE USE
OF BIODIESEL.
(a) In General.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall initiate a study
on the effects of the use of biodiesel on engine durability.
(b) Components.--The study under this section shall
include--
(1) an assessment of whether the use of biodiesel in
conventional diesel engines lessens engine durability; and
(2) an assessment of the effects referred to in subsection
(a) with respect to biodiesel blends at varying
concentrations, including--
(A) B5;
(B) B10;
(C) B20; and
(D) B30.
SEC. 147. STUDY OF INCENTIVES FOR RENEWABLE FUELS.
(a) Study.--The President shall conduct a study of the
renewable fuels industry and markets in the United States,
including--
(1) the costs to produce conventional and advanced
biofuels;
(2) the factors affecting the future market prices for
those biofuels, including world oil prices; and
(3) the financial incentives necessary to enhance, to the
maximum extent practicable, the biofuels industry of the
United States to reduce the dependence of the United States
on foreign oil during calendar years 2011 through 2030.
(b) Goals.--The study shall include an analysis of the
options for financial incentives and the advantage and
disadvantages of each option.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the President shall submit to Congress
a report that describes the results of the study.
SEC. 148. STUDY OF STREAMLINED LIFECYCLE ANALYSIS TOOLS FOR
THE EVALUATION OF RENEWABLE CARBON CONTENT OF
BIOFUELS.
(a) In General.--The Secretary, in consultation with the
Secretary of Agriculture and the Administrator of the
Environmental Protection Agency, shall conduct a study of--
(1) published methods for evaluating the lifecycle fossil
and renewable carbon content of fuels, including conventional
and advanced biofuels; and
(2) methods for performing simplified, streamlined
lifecycle analyses of the fossil and renewable carbon content
of biofuels.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and
the Committee on Energy and Commerce of the House of
Representatives a report that describes the results of the
study under subsection (a), including recommendations for a
method for performing a simplified, streamlined lifecycle
analysis of the fossil and renewable carbon content of
biofuels that includes--
(1) carbon inputs to feedstock production; and
(2) carbon inputs to the biofuel production process,
including the carbon associated with electrical and thermal
energy inputs.
SEC. 149. STUDY OF EFFECTS OF ETHANOL-BLENDED GASOLINE ON
OFF-ROAD VEHICLES.
(a) Study.--
(1) In general.--The Secretary, in consultation with the
Secretary of Transportation and the Administrator of the
Environmental Protection Agency, shall conduct a study to
determine the effects of ethanol-blended gasoline on off-road
vehicles and recreational boats.
(2) Evaluation.--The study shall include an evaluation of
the operational, safety, durability, and environmental
impacts of ethanol-blended gasoline on off-road and marine
engines, recreational boats, and related equipment.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
a report describing the results of the study.
SEC. 150. STUDY OF OFFSHORE WIND RESOURCES.
(a) Definitions.--In this section:
(1) Eligible institution.--The term ``eligible
institution'' means a college or university that--
(A) as of the date of enactment of this Act, has an
offshore wind power research program; and
(B) is located in a region of the United States that is in
reasonable proximity to the eastern outer Continental Shelf,
as determined by the Secretary.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the Minerals
Management Service.
(b) Study.--The Secretary, in cooperation with an eligible
institution, as selected by the Secretary, shall conduct a
study to assess each offshore wind resource located in the
region of the eastern outer Continental Shelf.
(c) Report.--Upon completion of the study under subsection
(b), the Secretary shall submit to Congress a report that
includes--
[[Page H14278]]
(1) a description of--
(A) the locations and total power generation resources of
the best offshore wind resources located in the region of the
eastern outer Continental Shelf, as determined by the
Secretary;
(B) based on conflicting zones relating to any
infrastructure that, as of the date of enactment of this Act,
is located in close proximity to any offshore wind resource,
the likely exclusion zones of each offshore wind resource
described in subparagraph (A);
(C) the relationship of the temporal variation of each
offshore wind resource described in subparagraph (A) with--
(i) any other offshore wind resource; and
(ii) with loads and corresponding system operator markets;
(D) the geological compatibility of each offshore wind
resource described in subparagraph (A) with any potential
technology relating to sea floor towers; and
(E) with respect to each area in which an offshore wind
resource described in subparagraph (A) is located, the
relationship of the authority under any coastal management
plan of the State in which the area is located with the
Federal Government; and
(2) recommendations on the manner by which to handle
offshore wind intermittence.
(d) Incorporation of Study.--Effective beginning on the
date on which the Secretary completes the study under
subsection (b), the Secretary shall incorporate the findings
included in the report under subsection (c) into the planning
process documents for any wind energy lease sale--
(1) relating to any offshore wind resource located in any
appropriate area of the outer Continental Shelf, as
determined by the Secretary; and
(2) that is completed on or after the date of enactment of
this Act.
(e) Effect.--Nothing in this section--
(1) delays any final regulation to be promulgated by the
Secretary of the Interior to carry out section 8(p) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(p)); or
(2) limits the authority of the Secretary to lease any
offshore wind resource located in any appropriate area of the
outer Continental Shelf, as determined by the Secretary.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000, to
remain available until expended.
Subtitle D--Environmental Safeguards
SEC. 161. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.
(a) In General.--The Secretary shall establish a grant
program to encourage the production of advanced biofuels.
(b) Requirements and Priority.--In making grants under this
section, the Secretary--
(1) shall make awards to the proposals for advanced
biofuels with the greatest reduction in lifecycle greenhouse
gas emissions compared to the comparable motor vehicle fuel
lifecycle emissions during calendar year 2007; and
(2) shall not make an award to a project that does not
achieve at least a 50-percent reduction in such lifecycle
greenhouse gas emissions.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $500,000,000 for
the period of fiscal years 2008 through 2015.
SEC. 162. STUDIES OF EFFECTS OF RENEWABLE FUEL USE.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
``(t) Studies of Effects of Renewable Fuel Use.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, the Administrator shall offer
to enter into appropriate arrangements with the National
Academy of Sciences and any other independent research
institute determined to be appropriate by the Administrator,
in consultation with appropriate Federal agencies, to conduct
2 studies on the effects of increased domestic use of
renewable fuels under the Renewable Fuels, Consumer
Protection, and Energy Efficiency Act of 2007.
``(2) Matters to be studied.--
``(A) In general.--The studies under this subsection shall
assess, quantify, and recommend analytical methodologies in
relation to environmental changes associated with the
increased domestic use of renewable fuels under the Renewable
Fuels, Consumer Protection, and Energy Efficiency Act of
2007, including production, handling, transportation, and use
of the fuels.
``(B) Specific matters.--The studies shall include an
assessment and quantification, to the maximum extent
practicable, of significant changes--
``(i) in air and water quality and the quality of other
natural resources;
``(ii) in land use patterns;
``(iii) in the rate of deforestation in the United States
and globally;
``(iv) to greenhouse gas emissions;
``(v) to significant geographic areas and habitats with
high biodiversity values (including species richness, the
presence of species that are exclusively native to a place,
or the presence of endangered species); or
``(vi) in the long-term capacity of the United States to
produce biomass feedstocks.
``(C) Baseline comparison.--In making an assessment or
quantifying effects of increased use of renewable fuels, the
studies shall use an appropriate baseline involving increased
use of the conventional transportation fuels, if displacement
by use of renewable fuels had not occurred.
``(3) Reports to congress.--The Administrator shall submit
to Congress a report summarizing the assessments and findings
of--
``(A) the first study, along with any recommendations by
the Administrator to mitigate adverse effects identified by
the study, not later than 3 years after the date of enactment
of this subsection; and
``(B) the second study, along with any recommendations by
the Administrator to mitigate adverse effects identified by
the study, not later December 31, 2015.''.
SEC. 163. INTEGRATED CONSIDERATION OF WATER QUALITY IN
DETERMINATIONS ON FUELS AND FUEL ADDITIVES.
Section 211(c)(1) of the Clean Air Act (42 U.S.C.
7545(c)(1)) is amended--
(1) by striking ``nonroad vehicle (A) if in the judgment of
the Administrator'' and inserting ``nonroad vehicle--
``(A) if, in the judgment of the Administrator, any fuel or
fuel additive or'';
(2) in subparagraph (A), by striking ``air pollution
which'' and inserting ``air pollution or water pollution
(including any degradation in the quality of groundwater)
that''; and
(3) by striking ``, or (B) if'' and inserting the
following: ``; or
``(B) if''.
SEC. 164. ANTI-BACKSLIDING.
Section 211 of the Clean Air Act (42 U.S.C. 7545) (as
amended by section 162) is amended by adding at the end the
following:
``(u) Prevention of Air Quality Deterioration.--
``(1) Study.--
``(A) In general.--Not later than 18 months after the date
of enactment of the Renewable Fuels, Consumer Protection, and
Energy Efficiency Act of 2007, the Administrator shall
complete a study to determine whether the renewable fuel
volumes required by that Act will adversely impact air
quality as a result of changes in vehicle and engine
emissions of air pollutants regulated under this Act.
``(B) Considerations.--The study shall include
consideration of--
``(i) different blend levels, types of renewable fuels, and
available vehicle technologies; and
``(ii) appropriate national, regional, and local air
quality control measures.
``(2) Regulations.--Not later than 3 years after the date
of enactment of the Renewable Fuels, Consumer Protection, and
Energy Efficiency Act of 2007, the Administrator shall--
``(A) promulgate regulations to implement appropriate
measures to mitigate, to the greatest extent achievable,
considering the results of the study under paragraph (1), any
adverse impacts on air quality, as the result of the
renewable volumes required by that Act; or
``(B) make a determination that no such measures are
necessary.
``(3) Other requirements.--Nothing in title I of the
Renewable Fuels, Consumer Protection, and Energy Efficiency
Act of 2007 supercedes or otherwise affects any Federal or
State requirement under any other provision of law that is
more stringent than any requirement of this title.''.
TITLE II--ENERGY EFFICIENCY PROMOTION
SEC. 201. SHORT TITLE.
This title may be cited as the ``Energy Efficiency
Promotion Act of 2007''.
SEC. 202. DEFINITION OF SECRETARY.
In this title, the term ``Secretary'' means the Secretary
of Energy.
Subtitle A--Promoting Advanced Lighting Technologies
SEC. 211. ACCELERATED PROCUREMENT OF ENERGY EFFICIENT
LIGHTING.
Section 553 of the National Energy Conservation Policy Act
(42 U.S.C. 8259b) is amended by adding the following:
``(f) Accelerated Procurement of Energy Efficient
Lighting.--
``(1) In general.--Not later than October 1, 2013, in
accordance with guidelines issued by the Secretary, all
general purpose lighting in Federal buildings shall be Energy
Star products or products designated under the Federal Energy
Management Program.
``(2) Guidelines.--
``(A) In general.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall issue
guidelines to carry out this subsection.
``(B) Replacement costs.--The guidelines shall take into
consideration the costs of replacing all general service
lighting and the reduced cost of operation and maintenance
expected to result from such replacement.''.
SEC. 212. INCANDESCENT REFLECTOR LAMP EFFICIENCY STANDARDS.
(a) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) is amended--
(1) in paragraph (30)(C)(ii)--
(A) in the matter preceding subclause (I)--
(i) by striking ``or similar bulb shapes (excluding ER or
BR)'' and inserting ``ER, BR, BPAR, or similar bulb shapes'';
and
(ii) by striking ``2.75'' and inserting ``2.25''; and
(B) by striking ``is either--'' and all that follows
through subclause (II) and inserting ``has a rated wattage
that is 40 watts or higher''; and
(2) by adding at the end the following:
``(52) BPAR incandescent reflector lamp.--The term `BPAR
incandescent reflector lamp' means a reflector lamp as shown
in figure C78.21-278 on page 32 of ANSI C78.21-2003.
``(53) BR incandescent reflector lamp; br30; br40.--
``(A) BR incandescent reflector lamp.--The term `BR
incandescent reflector lamp' means a reflector lamp that
has--
``(i) a bulged section below the major diameter of the bulb
and above the approximate baseline of the bulb, as shown in
figure 1 (RB) on page 7 of ANSI C79.1-1994, incorporated by
reference in section 430.22 of title 10, Code of Federal
Regulations (as in effect on the date of enactment of this
paragraph); and
[[Page H14279]]
``(ii) a finished size and shape shown in ANSI C78.21-1989,
including the referenced reflective characteristics in part 7
of ANSI C78.21-1989, incorporated by reference in section
430.22 of title 10, Code of Federal Regulations (as in effect
on the date of enactment of this paragraph).
``(B) BR30.--The term `BR30' means a BR incandescent
reflector lamp with a diameter of 30/8ths of an inch.
``(C) BR40.--The term `BR40' means a BR incandescent
reflector lamp with a diameter of 40/8ths of an inch.
``(54) ER incandescent reflector lamp; er30; er40.--
``(A) ER incandescent reflector lamp.--The term `ER
incandescent reflector lamp' means a reflector lamp that
has--
``(i) an elliptical section below the major diameter of the
bulb and above the approximate baseline of the bulb, as shown
in figure 1 (RE) on page 7 of ANSI C79.1-1994, incorporated
by reference in section 430.22 of title 10, Code of Federal
Regulations (as in effect on the date of enactment of this
paragraph); and
``(ii) a finished size and shape shown in ANSI C78.21-1989,
incorporated by reference in section 430.22 of title 10, Code
of Federal Regulations (as in effect on the date of enactment
of this paragraph).
``(B) ER30.--The term `ER30' means an ER incandescent
reflector lamp with a diameter of 30/8ths of an inch.
``(C) ER40.--The term `ER40' means an ER incandescent
reflector lamp with a diameter of 40/8ths of an inch.
``(55) R20 incandescent reflector lamp.--The term `R20
incandescent reflector lamp' means a reflector lamp that has
a face diameter of approximately 2.5 inches, as shown in
figure 1(R) on page 7 of ANSI C79.1-1994.''.
(b) Standards for Fluorescent Lamps and Incandescent
Reflector Lamps.--Section 325(i) of the Energy Policy and
Conservation Act (42 U.S.C. 6925(i)) is amended by striking
paragraph (1) and inserting the following:
``(1) Standards.--
``(A) Definition of effective date.--In this paragraph
(other than subparagraph (D)), the term `effective date'
means, with respect to each type of lamp specified in a table
contained in subparagraph (B), the last day of the period of
months corresponding to that type of lamp (as specified in
the table) that follows October 24, 1992.
``(B) Minimum standards.--Each of the following general
service fluorescent lamps and incandescent reflector lamps
manufactured after the effective date specified in the tables
contained in this paragraph shall meet or exceed the
following lamp efficacy and CRI standards:
``FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Effective Date
Lamp Type Nominal Lamp Minimum CRI Minimum Average Lamp (Period of
Wattage Efficacy (LPW) Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin........... >35 W 69 75.0 36
35 W 45 75.0 36
2-foot U-shaped................ >35 W 69 68.0 36
35 W 45 64.0 36
8-foot slimline................ 65 W 69 80.0 18
65 W 45 80.0 18
8-foot high output............. >100 W 69 80.0 18
100 W 45 80.0 18
----------------------------------------------------------------------------------------------------------------
``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
Effective Date
Nominal Lamp Wattage Minimum Average Lamp (Period of
Efficacy (LPW) Months)
------------------------------------------------------------------------
40-50....................... 10.5 36
51-66....................... 11.0 36
67-85....................... 12.5 36
86-115...................... 14.0 36
116-155...................... 14.5 36
156-205...................... 15.0 36
------------------------------------------------------------------------
``(C) Exemptions.--The standards specified in subparagraph
(B) shall not apply to the following types of incandescent
reflector lamps:
``(i) Lamps rated at 50 watts or less that are ER30, BR30,
BR40, or ER40 lamps.
``(ii) Lamps rated at 65 watts that are BR30, BR40, or ER40
lamps.
``(iii) R20 incandescent reflector lamps rated 45 watts or
less.
``(D) Effective dates.--
``(i) ER, br, and bpar lamps.--The standards specified in
subparagraph (B) shall apply with respect to ER incandescent
reflector lamps, BR incandescent reflector lamps, BPAR
incandescent reflector lamps, and similar bulb shapes on and
after January 1, 2008.
``(ii) Lamps between 2.25-2.75 inches in diameter.--The
standards specified in subparagraph (B) shall apply with
respect to incandescent reflector lamps with a diameter of
more than 2.25 inches, but not more than 2.75 inches, on and
after January 1, 2008.''.
SEC. 213. BRIGHT TOMORROW LIGHTING PRIZES.
(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, as part of the program carried out
under section 1008 of the Energy Policy Act of 2005 (42
U.S.C. 16396), the Secretary shall establish and award Bright
Tomorrow Lighting Prizes for solid state lighting in
accordance with this section.
(b) Prize Specifications.--
(1) 60-watt incandescent replacement lamp prize.--The
Secretary shall award a 60-Watt Incandescent Replacement Lamp
Prize to an entrant that produces a solid-state light package
simultaneously capable of--
(A) producing a luminous flux greater than 900 lumens;
(B) consuming less than or equal to 10 watts;
(C) having an efficiency greater than 90 lumens per watt;
(D) having a color rendering index greater than 90;
(E) having a correlated color temperature of not less than
2,750, and not more than 3,000, degrees Kelvin;
(F) having 70 percent of the lumen value under subparagraph
(A) exceeding 25,000 hours under typical conditions expected
in residential use;
(G) having a light distribution pattern similar to a soft
60-watt incandescent A19 bulb;
(H) having a size and shape that fits within the maximum
dimensions of an A19 bulb in accordance with American
National Standards Institute standard C78.20-2003, figure
C78.20-211;
(I) using a single contact medium screw socket; and
(J) mass production for a competitive sales commercial
market satisfied by the submission of 10,000 such units equal
to or exceeding the criteria described in subparagraphs (A)
through (I).
(2) PAR type 38 halogen replacement lamp prize.--The
Secretary shall award a Parabolic Aluminized Reflector Type
38 Halogen Replacement Lamp Prize (referred to in this
section as the ``PAR Type 38 Halogen Replacement Lamp
Prize'') to an entrant that produces a solid-state-light
package simultaneously capable of--
(A) producing a luminous flux greater than or equal to
1,350 lumens;
(B) consuming less than or equal to 11 watts;
(C) having an efficiency greater than 123 lumens per watt;
(D) having a color rendering index greater than or equal to
90;
(E) having a correlated color coordinate temperature of not
less than 2,750, and not more than 3,000, degrees Kelvin;
(F) having 70 percent of the lumen value under subparagraph
(A) exceeding 25,000 hours under typical conditions expected
in residential use;
(G) having a light distribution pattern similar to a PAR 38
halogen lamp;
(H) having a size and shape that fits within the maximum
dimensions of a PAR 38 halogen lamp in accordance with
American National Standards Institute standard C78-21-2003,
figure C78.21-238;
(I) using a single contact medium screw socket; and
(J) mass production for a competitive sales commercial
market satisfied by the submission of 10,000 such units equal
to or exceeding the criteria described in subparagraphs (A)
through (I).
(3) Twenty-first century lamp prize.--The Secretary shall
award a Twenty-First Century Lamp Prize to an entrant that
produces a solid-state-light-light capable of--
(A) producing a light output greater than 1,200 lumens;
(B) having an efficiency greater than 150 lumens per watt;
(C) having a color rendering index greater than 90;
(D) having a color coordinate temperature between 2,800 and
3,000 degrees Kelvin; and
(E) having a lifetime exceeding 25,000 hours.
(c) Private Funds.--The Secretary may accept and use
funding from private sources as part of the prizes awarded
under this section.
(d) Technical Review.--The Secretary shall establish a
technical review committee composed of non-Federal officers
to review entrant data submitted under this section to
determine whether the data meets the prize specifications
described in subsection (b).
(e) Third Party Administration.--The Secretary may
competitively select a third party to administer awards under
this section.
(f) Award Amounts.--Subject to the availability of funds to
carry out this section, the amount of--
(1) the 60-Watt Incandescent Replacement Lamp Prize
described in subsection (b)(1) shall be $10,000,000;
(2) the PAR Type 38 Halogen Replacement Lamp Prize
described in subsection (b)(2) shall be $5,000,000; and
(3) the Twenty-First Century Lamp Prize described in
subsection (b)(3) shall be $5,000,000.
(g) Federal Procurement of Solid-State-Lights.--
(1) 60-watt incandescent replacement.--Subject to paragraph
(3), as soon as practicable after the successful award of the
60-Watt Incandescent Replacement Lamp Prize under subsection
(b)(1), the Secretary (in consultation
[[Page H14280]]
with the Administrator of General Services) shall develop
governmentwide Federal purchase guidelines with a goal of
replacing the use of 60-watt incandescent lamps in Federal
Government buildings with a solid-state-light package
described in subsection (b)(1) by not later than the date
that is 5 years after the date the award is made.
(2) PAR 38 halogen replacement lamp replacement.--Subject
to paragraph (3), as soon as practicable after the successful
award of the PAR Type 38 Halogen Replacement Lamp Prize under
subsection (b)(2), the Secretary (in consultation with the
Administrator of General Services) shall develop
governmentwide Federal purchase guidelines with the goal of
replacing the use of PAR 38 halogen lamps in Federal
Government buildings with a solid-state-light package
described in subsection (b)(2) by not later than the date
that is 5 years after the date the award is made.
(3) Waivers.--
(A) In general.--The Secretary or the Administrator of
General Services may waive the application of paragraph (1)
or (2) if the Secretary or Administrator determines that the
return on investment from the purchase of a solid-state-light
package described in paragraph (1) or (2) of subsection (b),
respectively, is cost prohibitive.
(B) Report of waiver.--If the Secretary or Administrator
waives the application of paragraph (1) or (2), the Secretary
or Administrator, respectively, shall submit to Congress an
annual report that describes the waiver and provides a
detailed justification for the waiver.
(h) Report.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter, the
Administrator of General Services shall submit to the Energy
Information Agency a report describing the quantity, type,
and cost of each lighting product purchased by the Federal
Government.
(i) Bright Light Tomorrow Award Fund.--
(1) Establishment.--There is established in the United
States Treasury a Bright Light Tomorrow permanent fund
without fiscal year limitation to award prizes under
paragraphs (1), (2), and (3) of subsection (b).
(2) Sources of funding.--The fund established under
paragraph (1) shall accept--
(A) fiscal year appropriations; and
(B) private contributions authorized under subsection (c).
(j) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
SEC. 214. SENSE OF SENATE CONCERNING EFFICIENT LIGHTING
STANDARDS.
(a) Findings.--The Senate finds that--
(1) there are approximately 4,000,000,000 screw-based
sockets in the United States that contain traditional,
energy-inefficient, incandescent light bulbs;
(2) incandescent light bulbs are based on technology that
is more than 125 years old;
(3) there are radically more efficient lighting
alternatives in the market, with the promise of even more
choices over the next several years;
(4) national policy can support a rapid substitution of
new, energy-efficient light bulbs for the less efficient
products in widespread use; and,
(5) transforming the United States market to use of more
efficient lighting technologies can--
(A) reduce electric costs in the United States by more than
$18,000,000,000 annually;
(B) save the equivalent electricity that is produced by 80
base load coal-fired power plants; and
(C) reduce fossil fuel related emissions by approximately
158,000,000 tons each year.
(b) Sense of the Senate.--It is the sense of the Senate
that the Senate should--
(1) pass a set of mandatory, technology-neutral standards
to establish firm energy efficiency performance targets for
lighting products;
(2) ensure that the standards become effective within the
next 10 years; and
(3) in developing the standards--
(A) establish the efficiency requirements to ensure that
replacement lamps will provide consumers with the same
quantity of light while using significantly less energy;
(B) ensure that consumers will continue to have multiple
product choices, including energy-saving halogen,
incandescent, compact fluorescent, and LED light bulbs; and
(C) work with industry and key stakeholders on measures
that can assist consumers and businesses in making the
important transition to more efficient lighting.
SEC. 215. RENEWABLE ENERGY CONSTRUCTION GRANTS.
(a) Definitions.--In this section:
(1) Alaska small hydroelectric power.--The term ``Alaska
small hydroelectric power'' means power that--
(A) is generated--
(i) in the State of Alaska;
(ii) without the use of a dam or impoundment of water; and
(iii) through the use of--
(I) a lake tap (but not a perched alpine lake); or
(II) a run-of-river screened at the point of diversion; and
(B) has a nameplate capacity rating of a wattage that is
not more than 15 megawatts.
(2) Eligible applicant.--The term ``eligible applicant''
means any--
(A) governmental entity;
(B) private utility;
(C) public utility;
(D) municipal utility;
(E) cooperative utility;
(F) Indian tribes; and
(G) Regional Corporation (as defined in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602)).
(3) Ocean energy.--
(A) Inclusions.--The term ``ocean energy'' includes
current, wave, and tidal energy.
(B) Exclusion.--The term ``ocean energy'' excludes thermal
energy.
(4) Renewable energy project.--The term ``renewable energy
project'' means a project--
(A) for the commercial generation of electricity; and
(B) that generates electricity from--
(i) solar, wind, or geothermal energy or ocean energy;
(ii) biomass (as defined in section 203(b) of the Energy
Policy Act of 2005 (42 U.S.C. 15852(b)));
(iii) landfill gas; or
(iv) Alaska small hydroelectric power.
(b) Renewable Energy Construction Grants.--
(1) In general.--The Secretary shall use amounts
appropriated under this section to make grants for use in
carrying out renewable energy projects.
(2) Criteria.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall set forth criteria
for use in awarding grants under this section.
(3) Application.--To receive a grant from the Secretary
under paragraph (1), an eligible applicant shall submit to
the Secretary an application at such time, in such manner,
and containing such information as the Secretary may require,
including a written assurance that--
(A) all laborers and mechanics employed by contractors or
subcontractors during construction, alteration, or repair
that is financed, in whole or in part, by a grant under this
section shall be paid wages at rates not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor in accordance with
sections 3141-3144, 3146, and 3147 of title 40, United States
Code; and
(B) the Secretary of Labor shall, with respect to the labor
standards described in this paragraph, have the authority and
functions set forth in Reorganization Plan Numbered 14 of
1950 (5 U.S.C. App.) and section 3145 of title 40, United
States Code.
(4) Non-federal share.--Each eligible applicant that
receives a grant under this subsection shall contribute to
the total cost of the renewable energy project constructed by
the eligible applicant an amount not less than 50 percent of
the total cost of the project.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Fund such sums as are necessary to
carry out this section.
Subtitle B--Expediting New Energy Efficiency Standards
SEC. 221. DEFINITION OF ENERGY CONSERVATION STANDARD.
Section 321 of the Energy Policy and Conservation Act (42
U.S.C. 6291) is amended by striking paragraph (6) and
inserting the following:
``(6) Energy conservation standard.--
``(A) In general.--The term `energy conservation standard'
means 1 or more performance standards that--
``(i) for covered products (excluding clothes washers,
dishwashers, showerheads, faucets, water closets, and
urinals), prescribe a minimum level of energy efficiency or a
maximum quantity of energy use, determined in accordance with
test procedures prescribed under section 323;
``(ii) for showerheads, faucets, water closets, and
urinals, prescribe a minimum level of water efficiency or a
maximum quantity of water use, determined in accordance with
test procedures prescribed under section 323; and
``(iii) for clothes washers and dishwashers--
``(I) prescribe a minimum level of energy efficiency or a
maximum quantity of energy use, determined in accordance with
test procedures prescribed under section 323; and
``(II) may include a minimum level of water efficiency or a
maximum quantity of water use, determined in accordance with
those test procedures.
``(B) Inclusions.--The term `energy conservation standard'
includes--
``(i) 1 or more design requirements, if the requirements
were established--
``(I) on or before the date of enactment of this subclause;
or
``(II) as part of a consensus agreement under section
325(hh); and
``(ii) any other requirements that the Secretary may
prescribe under section 325(r).
``(C) Exclusion.--The term `energy conservation standard'
does not include a performance standard for a component of a
finished covered product, unless regulation of the component
is authorized or established pursuant to this title.''.
SEC. 222. REGIONAL EFFICIENCY STANDARDS FOR HEATING AND
COOLING PRODUCTS.
(a) In General.--Section 327 of the Energy Policy and
Conservation Act (42 U.S.C. 6297) is amended--
(1) by redesignating subsections (e), (f), and (g) as
subsections (f), (g), and (h), respectively; and
(2) by inserting after subsection (d) the following:
``(e) Regional Efficiency Standards for Heating and Cooling
Products.--
``(1) In general.--
``(A) Determination.--The Secretary may determine, after
notice and comment, that more stringent Federal energy
conservation standards are appropriate for furnaces, boilers,
or central air conditioning equipment than applicable Federal
energy conservation standards.
``(B) Finding.--The Secretary may determine that more
stringent standards are appropriate for up to 2 different
regions only after finding that the regional standards--
``(i) would contribute to energy savings that are
substantially greater than that of a single national energy
standard; and
``(ii) are economically justified.
[[Page H14281]]
``(C) Regions.--On making a determination described in
subparagraph (B), the Secretary shall establish the regions
so that the more stringent standards would achieve the
maximum level of energy savings that is technologically
feasible and economically justified.
``(D) Factors.--In determining the appropriateness of 1 or
more regional standards for furnaces, boilers, and central
and commercial air conditioning equipment, the Secretary
shall consider all of the factors described in paragraphs (1)
through (4) of section 325(o).
``(2) State petition.--After a determination made by the
Secretary under paragraph (1), a State may petition the
Secretary requesting a rule that a State regulation that
establishes a standard for furnaces, boilers, or central air
conditioners become effective at a level determined by the
Secretary to be appropriate for the region that includes the
State.
``(3) Rule.--Subject to paragraphs (4) through (7), the
Secretary may issue the rule during the period described in
paragraph (4) and after consideration of the petition and the
comments of interested persons.
``(4) Procedure.--
``(A) Notice.--The Secretary shall provide notice of any
petition filed under paragraph (2) and afford interested
persons a reasonable opportunity to make written comments,
including rebuttal comments, on the petition.
``(B) Decision.--Except as provided in subparagraph (C),
during the 180-day period beginning on the date on which the
petition is filed, the Secretary shall issue the requested
rule or deny the petition.
``(C) Extension.--The Secretary may publish in the Federal
Register a notice--
``(i) extending the period to a specified date, but not
longer than 1 year after the date on which the petition is
filed; and
``(ii) describing the reasons for the delay.
``(D) Denials.--If the Secretary denies a petition under
this subsection, the Secretary shall publish in the Federal
Register notice of, and the reasons for, the denial.
``(5) Finding of significant burden on manufacturing,
marketing, distribution, sale, or servicing of covered
product on national basis.--
``(A) In general.--The Secretary may not issue a rule under
this subsection if the Secretary finds (and publishes the
finding) that interested persons have established, by a
preponderance of the evidence, that the State regulation will
significantly burden manufacturing, marketing, distribution,
sale, or servicing of a covered product on a national basis.
``(B) Factors.--In determining whether to make a finding
described in subparagraph (A), the Secretary shall evaluate
all relevant factors, including--
``(i) the extent to which the State regulation will
increase manufacturing or distribution costs of
manufacturers, distributors, and others;
``(ii) the extent to which the State regulation will
disadvantage smaller manufacturers, distributors, or dealers
or lessen competition in the sale of the covered product in
the State; and
``(iii) the extent to which the State regulation would
cause a burden to manufacturers to redesign and produce the
covered product type (or class), taking into consideration
the extent to which the regulation would result in a
reduction--
``(I) in the current models, or in the projected
availability of models, that could be shipped on the
effective date of the regulation to the State and within the
United States; or
``(II) in the current or projected sales volume of the
covered product type (or class) in the State and the United
States.
``(6) Application.--No State regulation shall become
effective under this subsection with respect to any covered
product manufactured before the date specified in the
determination made by the Secretary under paragraph (1).
``(7) Petition to withdraw federal rule following amendment
of federal standard.--
``(A) In general.--If a State has issued a rule under
paragraph (3) with respect to a covered product and
subsequently a Federal energy conservation standard
concerning the product is amended pursuant to section 325,
any person subject to the State regulation may file a
petition with the Secretary requesting the Secretary to
withdraw the rule issued under paragraph (3) with respect to
the product in the State.
``(B) Burden of proof.--The Secretary shall consider the
petition in accordance with paragraph (5) and the burden
shall be on the petitioner to show by a preponderance of the
evidence that the rule received by the State under paragraph
(3) should be withdrawn as a result of the amendment to the
Federal standard.
``(C) Withdrawal.--If the Secretary determines that the
petitioner has shown that the rule issued by the Secretary
under paragraph (3) should be withdrawn in accordance with
subparagraph (B), the Secretary shall withdraw the rule.''.
(b) Conforming Amendments.--
(1) Section 327 of the Energy Policy and Conservation Act
(42 U.S.C. 6297) is amended--
(A) in subsection (b)--
(i) in paragraph (2), by striking ``subsection (e)'' and
inserting ``subsection (f)''; and
(ii) in paragraph (3)--
(I) by striking ``subsection (f)(1)'' and inserting
``subsection (g)(1)''; and
(II) by striking ``subsection (f)(2)'' and inserting
``subsection (g)(2)''; and
(B) in subsection (c)(3), by striking ``subsection (f)(3)''
and inserting ``subsection (g)(3)''.
(2) Section 345(b)(2) of the Energy Policy and Conservation
Act (42 U.S.C. 6316(b)(2)) is amended by adding at the end
the following:
``(E) Relationship to certain state regulations.--
Notwithstanding subparagraph (A), a standard prescribed or
established under section 342(a) with respect to the
equipment specified in subparagraphs (B), (C), (D), (H), (I),
and (J) of section 340 shall not supersede a State regulation
that is effective under the terms, conditions, criteria,
procedures, and other requirements of section 327(e).''.
SEC. 223. FURNACE FAN RULEMAKING.
Section 325(f)(3) of the Energy Policy and Conservation Act
(42 U.S.C. 6295(f)(3)) is amended by adding at the end the
following:
``(E) Final rule.--
``(i) In general.--The Secretary shall publish a final rule
to carry out this subsection not later than December 31,
2014.
``(ii) Criteria.--The standards shall meet the criteria
established under subsection (o).''.
SEC. 224. EXPEDITED RULEMAKINGS.
(a) Procedure for Prescribing New or Amended Standards.--
Section 325(p) of the Energy Policy and Conservation Act (42
U.S.C. 6295(p)) is amended by adding at the end the
following:
``(5) Direct final rules.--
``(A) In general.--On receipt of a statement that is
submitted jointly by interested persons that are fairly
representative of relevant points of view (including
representatives of manufacturers of covered products, States,
and efficiency advocates), as determined by the Secretary,
and contains recommendations with respect to an energy or
water conservation standard--
``(i) if the Secretary determines that the recommended
standard contained in the statement is in accordance with
subsection (o) or section 342(a)(6)(B), as applicable, the
Secretary may issue a final rule that establishes an energy
or water conservation standard and is published
simultaneously with a notice of proposed rulemaking that
proposes a new or amended energy or water conservation
standard that is identical to the standard established in the
final rule to establish the recommended standard (referred to
in this paragraph as a `direct final rule'); or
``(ii) if the Secretary determines that a direct final rule
cannot be issued based on the statement, the Secretary shall
publish a notice of the determination, together with an
explanation of the reasons for the determination.
``(B) Public comment.--The Secretary shall--
``(i) solicit public comment with respect to each direct
final rule issued by the Secretary under subparagraph (A)(i);
and
``(ii) publish a response to each comment so received.
``(C) Withdrawal of direct final rules.--
``(i) In general.--Not later than 120 days after the date
on which a direct final rule issued under subparagraph (A)(i)
is published in the Federal Register, the Secretary shall
withdraw the direct final rule if--
``(I) the Secretary receives 1 or more adverse public
comments relating to the direct final rule under subparagraph
(B)(i); and
``(II) based on the complete rulemaking record relating to
the direct final rule, the Secretary tentatively determines
that the adverse public comments are relevant under
subsection (o), section 342(a)(6)(B), or any other applicable
law.
``(ii) Action on withdrawal.--On withdrawal of a direct
final rule under clause (i), the Secretary shall--
``(I) proceed with the notice of proposed rulemaking
published simultaneously with the direct final rule as
described in subparagraph (A)(i); and
``(II) publish in the Federal Register the reasons why the
direct final rule was withdrawn.
``(iii) Treatment of withdrawn direct final rules.--A
direct final rule that is withdrawn under clause (i) shall
not be considered to be a final rule for purposes of
subsection (o).
``(D) Effect of paragraph.--Nothing in this paragraph
authorizes the Secretary to issue a direct final rule based
solely on receipt of more than 1 statement containing
recommended standards relating to the direct final rule.''.
(b) Conforming Amendment.--Section 345(b)(1) of the Energy
Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended
in the first sentence by inserting ``section 325(p)(5),''
after ``The provisions of''.
SEC. 225. PERIODIC REVIEWS.
(a) Test Procedures.--Section 323(b)(1) of the Energy
Policy and Conservation Act (42 U.S.C. 6293(b)(1)) is amended
by striking ``(1)'' and all that follows through the end of
the paragraph and inserting the following:
``(1) Test procedures.--
``(A) Amendment.--At least once every 7 years, the
Secretary shall review test procedures for all covered
products and--
``(i) amend test procedures with respect to any covered
product, if the Secretary determines that amended test
procedures would more accurately or fully comply with the
requirements of paragraph (3); or
``(ii) publish notice in the Federal Register of any
determination not to amend a test procedure.''.
(b) Energy Conservation Standards.--Section 325(m) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(m)) is
amended--
(1) by designating the first and second sentences as
paragraphs (1) and (4), respectively;
(2) by striking paragraph (1) (as so designated) and
inserting the following:
``(1) In general.--After issuance of the last final rules
required for a product under this part, the Secretary shall,
not later than 5 years after the date of issuance of a final
rule establishing or amending a standard or determining not
to amend a standard, publish a final rule to determine
whether standards for the product should or should not be
amended based on the criteria in subsection (n)(2).
``(2) Analysis.--Prior to publication of the determination,
the Secretary shall publish a notice of availability
describing the analysis of the Department and provide
opportunity for written comment.
``(3) Final rule.--Not later than 3 years after a positive
determination under paragraph (1),
[[Page H14282]]
the Secretary shall publish a final rule amending the
standard for the product.''; and
(3) in paragraph (4) (as so designated), by striking ``(4)
An'' and inserting the following:
``(4) Application of amendment.--An''.
(c) Standards.--Section 342(a)(6) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(a)(6)) is amended by
striking ``(6)(A)(i)'' and all that follows through the end
of subparagraph (A) and inserting the following:
``(6) Amended energy efficiency standards.--
``(A) In general.--
``(i) Analysis of potential energy savings.--If ASHRAE/IES
Standard 90.1 is amended with respect to any small commercial
package air conditioning and heating equipment, large
commercial package air conditioning and heating equipment,
very large commercial package air conditioning and heating
equipment, packaged terminal air conditioners, packaged
terminal heat pumps, warm-air furnaces, packaged boilers,
storage water heaters, instantaneous water heaters, or
unfired hot water storage tanks, not later than 180 days
after the amendment of the standard, the Secretary shall
publish in the Federal Register for public comment an
analysis of the energy savings potential of amended energy
efficiency standards.
``(ii) Amended uniform national standard for products.--
``(I) In general.--Except as provided in subclause (II),
not later than 18 months after the date of publication of the
amendment to the ASHRAE/IES Standard 90.1 for a product
described in clause (i), the Secretary shall establish an
amended uniform national standard for the product at the
minimum level specified in the amended ASHRAE/IES Standard
90.1.
``(II) More stringent standard.--Subclause (I) shall not
apply if the Secretary determines, by rule published in the
Federal Register, and supported by clear and convincing
evidence, that adoption of a uniform national standard more
stringent than the amended ASHRAE/IES Standard 90.1 for the
product would result in significant additional conservation
of energy and is technologically feasible and economically
justified.
``(iii) Rule.--If the Secretary makes a determination
described in clause (ii)(II) for a product described in
clause (i), not later than 30 months after the date of
publication of the amendment to the ASHRAE/IES Standard 90.1
for the product, the Secretary shall issue the rule
establishing the amended standard.''.
(d) Test Procedures.--Section 343(a) of the Energy Policy
and Conservation Act (42 U.S.C. 6313(a)) is amended by
striking ``(a)'' and all that follows through the end of
paragraph (1) and inserting the following:
``(a) Prescription by Secretary; Requirements.--
``(1) Test procedures.--
``(A) Amendment.--At least once every 7 years, the
Secretary shall conduct an evaluation of each class of
covered equipment and--
``(i) if the Secretary determines that amended test
procedures would more accurately or fully comply with the
requirements of paragraphs (2) and (3), shall prescribe test
procedures for the class in accordance with this section; or
``(ii) shall publish notice in the Federal Register of any
determination not to amend a test procedure.''.
(e) Effective Date.--The amendments made by subsections (b)
and (c) take effect on January 1, 2012.
SEC. 226. ENERGY EFFICIENCY LABELING FOR CONSUMER ELECTRONIC
PRODUCTS.
(a) In General.--Section 324(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)) is amended--
(1) in paragraph (2), by adding at the end the following:
``(H) Labeling requirements.--
``(i) In general.--Subject to clauses (ii) through (iv),
not later than 18 months after the date of issuance of
applicable Department of Energy testing procedures, the
Commission, in consultation with the Secretary and the
Administrator of the Environmental Protection Agency (acting
through the Energy Star program), shall, by regulation,
promulgate labeling or other disclosure requirements for the
energy use of--
``(I) televisions;
``(II) personal computers;
``(III) cable or satellite set-top boxes;
``(IV) stand-alone digital video recorder boxes; and
``(V) personal computer monitors.
``(ii) Alternate testing procedures.--In the absence of
applicable testing procedures described in clause (i) for
products described in subclauses (I) through (V) of that
clause, the Commission may by regulation promulgate labeling
requirements for a consumer product category described in
clause (i) if the Commission--
``(I) identifies adequate non-Department of Energy testing
procedures for those products; and
``(II) determines that labeling of those products is likely
to assist consumers in making purchasing decisions.
``(iii) Deadline and requirements for labeling.--
``(I) Deadline.--Not later than 18 months after the date of
promulgation of any requirements under clause (i) or (ii),
the Commission shall require labeling of electronic products
described in clause (i).
``(II) Requirements.--The requirements promulgated under
clause (i) or (ii) may include specific requirements for each
electronic product to be labeled with respect to the
placement, size, and content of Energy Guide labels.
``(iv) Determination of feasibility.--Clause (i) or (ii)
shall not apply in any case in which the Commission
determines that labeling in accordance with this subsection--
``(I) is not technologically or economically feasible; or
``(II) is not likely to assist consumers in making
purchasing decisions.''; and
(2) by adding at the end the following:
``(6) Authority to include additional product categories.--
The Commission may require labeling in accordance with this
subsection for any consumer product not specified in this
subsection or section 322 if the Commission determines that
labeling for the product is likely to assist consumers in
making purchasing decisions.''.
(b) Content of Label.--Section 324(c) of the Energy Policy
and Conservation Act (42 U.S.C. 6924(c)) is amended by adding
at the end the following:
``(9) Discretionary application.--The Commission may apply
paragraphs (1), (2), (3), (5), and (6) of this subsection to
the labeling of any product covered by paragraph (2)(H) or
(6) of subsection (a).''.
SEC. 227. RESIDENTIAL BOILER EFFICIENCY STANDARDS.
Section 325(f) of the Energy Policy and Conservation Act
(42 U.S.C. 6295(f)) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Boilers.--
``(A) In general.--Subject to subparagraphs (B) and (C),
boilers manufactured on or after September 1, 2012, shall
meet the following requirements:
------------------------------------------------------------------------
Minimum
Annual Fuel
Boiler Type Utilization Design Requirements
Efficiency
------------------------------------------------------------------------
Gas Hot Water 82% No Constant Burning
Pilot,
Automatic Means for
Adjusting Water
Temperature
------------------------------------------------------------------------
Gas Steam 80% No Constant Burning
Pilot
------------------------------------------------------------------------
Oil Hot Water 84% Automatic Means for
Adjusting Temperature
------------------------------------------------------------------------
Oil Steam 82% None
------------------------------------------------------------------------
Electric Hot Water None Automatic Means for
Adjusting Temperature
------------------------------------------------------------------------
Electric Steam None None
------------------------------------------------------------------------
``(B) Pilots.--The manufacturer shall not equip gas hot
water or steam boilers with constant-burning pilot lights.
``(C) Automatic means for adjusting water temperature.--
``(i) In general.--The manufacturer shall equip each gas,
oil, and electric hot water boiler (other than a boiler
equipped with tankless domestic water heating coils) with an
automatic means for adjusting the temperature of the water
supplied by the boiler to ensure that an incremental change
in inferred heat load produces a corresponding incremental
change in the temperature of water supplied.
``(ii) Certain boilers.--For a boiler that fires at 1 input
rate, the requirements of this subparagraph may be satisfied
by providing an automatic means that allows the burner or
heating element to fire only when the means has determined
that the inferred heat load cannot be met by the residual
heat of the water in the system.
``(iii) No inferred heat load.--When there is no inferred
heat load with respect to a hot water boiler, the automatic
means described in clauses (i) and (ii) shall limit the
temperature of the water in the boiler to not more than 140
degrees Fahrenheit.
``(iv) Operation.--A boiler described in clause (i) or (ii)
shall be operable only when the automatic means described in
clauses (i), (ii), and (iii) is installed.''.
SEC. 228. TECHNICAL CORRECTIONS.
(a) Definition of Fluorescent Lamp.--Section
321(30)(B)(viii) of the Energy Policy and Conservation Act
(42 U.S.C. 6291(30)(B)(viii)) is amended by striking ``82''
and inserting ``87''.
(b) Standards for Commercial Package Air Conditioning and
Heating Equipment.--Section 342(a)(1) of the Energy Policy
and Conservation Act (42 U.S.C. 6313(a)(1)) is amended in the
matter preceding subparagraph (A) by striking ``but before
January 1, 2010,''.
(c) Mercury Vapor Lamp Ballasts.--
(1) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) (as amended by section
212(a)(2)) is amended--
(A) in paragraph (46)(A)--
(i) in clause (i), by striking ``bulb'' and inserting ``the
arc tube''; and
(ii) in clause (ii), by striking ``has a bulb'' and
inserting ``wall loading is'';
(B) in paragraph (47)(A), by striking ``operating at a
partial'' and inserting ``typically operating at a partial
vapor'';
(C) in paragraph (48), by inserting ``intended for general
illumination'' after ``lamps''; and
[[Page H14283]]
(D) by adding at the end the following:
``(56) The term `specialty application mercury vapor lamp
ballast' means a mercury vapor lamp ballast that--
``(A) is designed and marketed for medical use, optical
comparators, quality inspection, industrial processing, or
scientific use, including fluorescent microscopy, ultraviolet
curing, and the manufacture of microchips, liquid crystal
displays, and printed circuit boards; and
``(B) in the case of a specialty application mercury vapor
lamp ballast, is labeled as a specialty application mercury
vapor lamp ballast.''.
(2) Standard setting authority.--Section 325(ee) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(ee)) is
amended by inserting ``(other than specialty application
mercury vapor lamp ballasts)'' after ``ballasts''.
SEC. 229. ELECTRIC MOTOR EFFICIENCY STANDARDS.
(a) Definitions.--Section 340(13) of the Energy Policy and
Conservation Act (42 U.S.C. 6311(13)) is amended by striking
subparagraph (A) and inserting the following:
``(A)(i) The term `electric motor' means--
``(I) a general purpose electric motor--subtype I; and
``(II) a general purpose electric motor--subtype II.
``(ii) The term `general purpose electric motor--subtype I'
means any motor that is considered a general purpose motor
under section 431.12 of title 10, Code of Federal Regulations
(or successor regulations).
``(iii) The term `general purpose electric motor--subtype
II' means a motor that, in addition to the design elements
for a general purpose electric motor--subtype I, incorporates
the design elements (as established in National Electrical
Manufacturers Association MG-1 (2006)) for any of the
following:
``(I) A U-Frame Motor.
``(II) A Design C Motor.
``(III) A close-coupled pump motor.
``(IV) A footless motor.
``(V) A vertical solid shaft normal thrust (tested in a
horizontal configuration).
``(VI) An 8-pole motor.
``(VII) A poly-phase motor with voltage of not more than
600 volts (other than 230 or 460 volts).''.
(b) Standards.--Section 342(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(13)) is amended by striking
paragraph (1) and inserting the following:
``(1) Standards.--
``(A) General purpose electric motors--subtype i.--
``(i) In general.--Except as otherwise provided in this
subparagraph, a general purpose electric motor--subtype I
with a power rating of not less than 1, and not more than
200, horsepower manufactured (alone or as a component of
another piece of equipment) after the 3-year period beginning
on the date of enactment of this subparagraph, shall have a
nominal full load efficiency established in Table 12-12 of
National Electrical Manufacturers Association (referred to in
this paragraph as `NEMA') MG-1 (2006).
``(ii) Fire pump motors.--A fire pump motor shall have a
nominal full load efficiency established in Table 12-11 of
NEMA MG-1 (2006).
``(B) General purpose electric motors--subtype ii.--A
general purpose electric motor--subtype II with a power
rating of not less than 1, and not more than 200, horsepower
manufactured (alone or as a component of another piece of
equipment) after the 3-year period beginning on the date of
enactment of this subparagraph, shall have a nominal full
load efficiency established in Table 12-11 of NEMA MG-1
(2006).
``(C) Design b, general purpose electric motors.--A NEMA
Design B, general purpose electric motor with a power rating
of not less than 201, and not more than 500, horsepower
manufactured (alone or as a component of another piece of
equipment) after the 3-year period beginning on the date of
the enactment of this subparagraph shall have a nominal full
load efficiency established in Table 12-11 of NEMA MG-1
(2006).''.
(c) Effective Date.--The amendments made by this section
take effect on the date that is 3 years after the date of
enactment of this Act.
SEC. 230. ENERGY STANDARDS FOR HOME APPLIANCES.
(a) Definition of Energy Conservation Standard.--Section
321(6)(A) of the Energy Policy and Conservation Act (42
U.S.C. 6291(6)(A)) is amended by striking ``or, in the case
of'' and inserting ``and, in the case of residential clothes
washers, residential dishwashers,''.
(b) Refrigerators, Refrigerator-Freezers, and Freezers.--
Section 325(b) of the Energy Policy and Conservation Act (42
U.S.C. 6295(b)) is amended by adding at the end the
following:
``(4) Refrigerators, refrigerator-freezers, and freezers
manufactured on or after january 1, 2014.--Not later than
December 31, 2010, the Secretary shall publish a final rule
determining whether to amend the standards in effect for
refrigerators, refrigerator-freezers, and freezers
manufactured on or after January 1, 2014, and including any
amended standards.''.
(c) Residential Clothes Washers and Dishwashers.--Section
325(g)(4) of the Energy Policy and Conservation Act (42
U.S.C. 6295(g)(4)) is amended by adding at the end the
following:
``(D) Clothes washers.--
``(i) Clothes washers manufactured on or after january 1,
2011.--A residential clothes washer manufactured on or after
January 1, 2011, shall have--
``(I) a modified energy factor of at least 1.26; and
``(II) a water factor of not more than 9.5.
``(ii) Clothes washers manufactured on or after january 1,
2015.--Not later than January 1, 2015, the Secretary shall
publish a final rule determining whether to amend the
standards in effect for residential clothes washers
manufactured on or after January 1, 2015, and including any
amended standards.
``(E) Dishwashers.--
``(i) Dishwashers manufactured on or after january 1,
2010.--A dishwasher manufactured on or after January 1, 2010,
shall use not more than--
``(I) in the case of a standard-size dishwasher, 355 kWh
per year or 6.5 gallons of water per cycle; and
``(II) in the case of a compact-size dishwasher, 260 kWh
per year or 4.5 gallons of water per cycle.
``(ii) Dishwashers manufactured on or after january 1,
2018.--Not later than January 1, 2015, the Secretary shall
publish a final rule determining whether to amend the
standards for dishwashers manufactured on or after January 1,
2018, and including any amended standards.''.
(d) Dehumidifiers.--Section 325(cc) of the Energy Policy
and Conservation Act (42 U.S.C. 6295(cc)) is amended--
(1) in paragraph (1), by inserting ``and before October 1,
2012,'' after ``2007,''; and
(2) by striking paragraph (2) and inserting the following:
``(2) Dehumidifiers manufactured on or after october 1,
2012.--Dehumidifiers manufactured on or after October 1,
2012, shall have an Energy Factor that meets or exceeds the
following values:
------------------------------------------------------------------------
Minimum
Energy
Product Capacity (pints/day): Factor
liters/kWh
------------------------------------------------------------------------
Up to 35.00................................................ 1.35
35.01-45.00................................................ 1.50
45.01-54.00................................................ 1.60
54.01-75.00................................................ 1.70
Greater than 75.00......................................... 2.5.''.
------------------------------------------------------------------------
(e) Energy Star Program.--Section 324A(d)(2) of the Energy
Policy and Conservation Act (42 U.S.C. 6294a(d)(2)) is
amended by striking ``2010'' and inserting ``2009''.
SEC. 231. IMPROVED ENERGY EFFICIENCY FOR APPLIANCES AND
BUILDINGS IN COLD CLIMATES.
(a) Research.--Section 911(a)(2) of the Energy Policy Act
of 2005 (42 U.S.C. 16191(a)(2)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) technologies to improve the energy efficiency of
appliances and mechanical systems for buildings in cold
climates, including combined heat and power units and
increased use of renewable resources, including fuel.''.
(b) Rebates.--Section 124 of the Energy Policy Act of 2005
(42 U.S.C. 15821) is amended--
(1) in subsection (b)(1), by inserting ``, or products with
improved energy efficiency in cold climates,'' after
``residential Energy Star products''; and
(2) in subsection (e), by inserting ``or product with
improved energy efficiency in a cold climate'' after
``residential Energy Star product'' each place it appears.
SEC. 232. DEPLOYMENT OF NEW TECHNOLOGIES FOR HIGH-EFFICIENCY
CONSUMER PRODUCTS.
(a) Definitions.--In this section:
(1) Energy savings.--The term ``energy savings'' means
megawatt-hours of electricity or million British thermal
units of natural gas saved by a product, in comparison to
projected energy consumption under the energy efficiency
standard applicable to the product.
(2) High-efficiency consumer product.--The term ``high-
efficiency consumer product'' means a product that exceeds
the energy efficiency of comparable products available in the
market by a percentage determined by the Secretary to be an
appropriate benchmark for the consumer product category
competing for an award under this section.
(b) Financial Incentives Program.--Effective beginning
October 1, 2007, the Secretary shall competitively award
financial incentives under this section for the manufacture
of high-efficiency consumer products.
(c) Requirements.--
(1) In general.--The Secretary shall make awards under this
section to manufacturers of high-efficiency consumer
products, based on the bid of each manufacturer in terms of
dollars per megawatt-hour or million British thermal units
saved.
(2) Acceptance of bids.--In making awards under this
section, the Secretary shall--
(A) solicit bids for reverse auction from appropriate
manufacturers, as determined by the Secretary; and
(B) award financial incentives to the manufacturers that
submit the lowest bids that meet the requirements established
by the Secretary.
(d) Forms of Awards.--An award for a high-efficiency
consumer product under this section shall be in the form of a
lump sum payment in an amount equal to the product obtained
by multiplying--
(1) the amount of the bid by the manufacturer of the high-
efficiency consumer product; and
(2) the energy savings during the projected useful life of
the high-efficiency consumer product, not to exceed 10 years,
as determined under regulations issued by the Secretary.
SEC. 233. INDUSTRIAL EFFICIENCY PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term eligible entity means--
(A) an institution of higher education under contract or in
partnership with a nonprofit or for-profit private entity
acting on behalf of an industrial or commercial sector or
subsector;
[[Page H14284]]
(B) a nonprofit or for-profit private entity acting on
behalf on an industrial or commercial sector or subsector; or
(C) a consortia of entities acting on behalf of an
industrial or commercial sector or subsector.
(2) Energy-intensive commercial applications.--The term
``energy-intensive commercial applications'' means processes
and facilities that use significant quantities of energy as
part of the primary economic activities of the processes and
facilities, including--
(A) information technology data centers;
(B) product manufacturing; and
(C) food processing.
(3) Feedstock.--The term ``feedstock'' means the raw
material supplied for use in manufacturing, chemical, and
biological processes.
(4) Materials manufacturers.--The term ``materials
manufacturers'' means the energy-intensive primary
manufacturing industries, including the aluminum, chemicals,
forest and paper products, glass, metal casting, and steel
industries.
(5) Partnership.--The term ``partnership'' means an energy
efficiency and utilization partnership established under
subsection (c)(1)(A).
(6) Program.--The term ``program'' means the industrial
efficiency program established under subsection (b).
(b) Establishment of Program.--The Secretary shall
establish a program under which the Secretary, in cooperation
with materials manufacturers, companies engaged in energy-
intensive commercial applications, and national industry
trade associations representing the manufactures and
companies, shall support, develop, and promote the use of new
materials manufacturing and industrial and commercial
processes, technologies, and techniques to optimize energy
efficiency and the economic competitiveness of the United
States.
(c) Partnerships.--
(1) In general.--As part of the program, the Secretary
shall--
(A) establish energy efficiency and utilization
partnerships between the Secretary and eligible entities to
conduct research on, develop, and demonstrate new processes,
technologies, and operating practices and techniques to
significantly improve energy efficiency and utilization by
materials manufacturers and in energy-intensive commercial
applications, including the conduct of activities to--
(i) increase the energy efficiency of industrial and
commercial processes and facilities in energy-intensive
commercial application sectors;
(ii) research, develop, and demonstrate advanced
technologies capable of energy intensity reductions and
increased environmental performance in energy-intensive
commercial application sectors; and
(iii) promote the use of the processes, technologies, and
techniques described in clauses (i) and (ii); and
(B) pay the Federal share of the cost of any eligible
partnership activities for which a proposal has been
submitted and approved in accordance with paragraph (3)(B).
(2) Eligible activities.--Partnership activities eligible
for financial assistance under this subsection include--
(A) feedstock and recycling research, development, and
demonstration activities to identify and promote--
(i) opportunities for meeting manufacturing feedstock
requirements with more energy efficient and flexible sources
of feedstock or energy supply;
(ii) strategies to develop and deploy technologies that
improve the quality and quantity of feedstocks recovered from
process and waste streams; and
(iii) other methods using recycling, reuse, and improved
industrial materials;
(B) industrial and commercial energy efficiency and
sustainability assessments to--
(i) assist individual industrial and commercial sectors in
developing tools, techniques, and methodologies to assess--
(I) the unique processes and facilities of the sectors;
(II) the energy utilization requirements of the sectors;
and
(III) the application of new, more energy efficient
technologies; and
(ii) conduct energy savings assessments;
(C) the incorporation of technologies and innovations that
would significantly improve the energy efficiency and
utilization of energy-intensive commercial applications; and
(D) any other activities that the Secretary determines to
be appropriate.
(3) Proposals.--
(A) In general.--To be eligible for financial assistance
under this subsection, a partnership shall submit to the
Secretary a proposal that describes the proposed research,
development, or demonstration activity to be conducted by the
partnership.
(B) Review.--After reviewing the scientific, technical, and
commercial merit of a proposals submitted under subparagraph
(A), the Secretary shall approve or disapprove the proposal.
(C) Competitive awards.--The provision of financial
assistance under this subsection shall be on a competitive
basis.
(4) Cost-sharing requirement.--In carrying out this
section, the Secretary shall require cost sharing in
accordance with section 988 of the Energy Policy Act of 2005
(42 U.S.C. 16352).
(d) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary to carry out this section--
(A) $184,000,000 for fiscal year 2008;
(B) $190,000,000 for fiscal year 2009;
(C) $196,000,000 for fiscal year 2010;
(D) $202,000,000 for fiscal year 2011;
(E) $208,000,000 for fiscal year 2012; and
(F) such sums as are necessary for fiscal year 2013 and
each fiscal year thereafter.
(2) Partnership activities.--Of the amounts made available
under paragraph (1), not less than 50 percent shall be used
to pay the Federal share of partnership activities under
subsection (c).
Subtitle C--Promoting High Efficiency Vehicles, Advanced Batteries, and
Energy Storage
SEC. 241. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall establish a
research and development program to determine ways in which--
(1) the weight of vehicles may be reduced to improve fuel
efficiency without compromising passenger safety; and
(2) the cost of lightweight materials (such as steel
alloys, fiberglass, and carbon composites) required for the
construction of lighter-weight vehicles may be reduced.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $60,000,000 for
each of fiscal years 2007 through 2012.
SEC. 242. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS
MANUFACTURERS.
(a) In General.--Section 712(a) of the Energy Policy Act of
2005 (42 U.S.C. 16062(a)) is amended in the second sentence
by striking ``grants to automobile manufacturers'' and
inserting ``grants and loan guarantees under section 1703 to
automobile manufacturers and suppliers''.
(b) Conforming Amendment.--Section 1703(b) of the Energy
Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by
striking paragraph (8) and inserting the following:
``(8) Production facilities for the manufacture of fuel
efficient vehicles or parts of those vehicles, including
electric drive vehicles and advanced diesel vehicles.''.
SEC. 243. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING
INCENTIVE PROGRAM.
(a) Definitions.--In this section:
(1) Adjusted average fuel economy.--The term ``adjusted
average fuel economy'' means the average fuel economy of a
manufacturer for all light duty vehicles produced by the
manufacturer, adjusted such that the fuel economy of each
vehicle that qualifies for an award shall be considered to be
equal to the average fuel economy for vehicles of a similar
footprint for model year 2005.
(2) Advanced technology vehicle.--The term ``advanced
technology vehicle'' means a light duty vehicle that meets--
(A) the Bin 5 Tier II emission standard established in
regulations issued by the Administrator of the Environmental
Protection Agency under section 202(i) of the Clean Air Act
(42 U.S.C. 7521(i)), or a lower-numbered Bin emission
standard;
(B) any new emission standard for fine particulate matter
prescribed by the Administrator under that Act (42 U.S.C.
7401 et seq.); and
(C) at least 125 percent of the average base year combined
fuel economy, calculated on an energy-equivalent basis, for
vehicles of a substantially similar footprint.
(3) Combined fuel economy.--The term ``combined fuel
economy'' means--
(A) the combined city/highway miles per gallon values, as
reported in accordance with section 32908 of title 49, United
States Code; and
(B) in the case of an electric drive vehicle with the
ability to recharge from an off-board source, the reported
mileage, as determined in a manner consistent with the
Society of Automotive Engineers recommended practice for that
configuration or a similar practice recommended by the
Secretary, using a petroleum equivalence factor for the off-
board electricity (as defined in section 474 of title 10,
Code of Federal Regulations).
(4) Engineering integration costs.--The term ``engineering
integration costs'' includes the cost of engineering tasks
relating to--
(A) incorporating qualifying components into the design of
advanced technology vehicles; and
(B) designing new tooling and equipment and developing new
manufacturing processes and material suppliers for production
facilities that produce qualifying components or advanced
technology vehicles.
(5) Qualifying components.--The term ``qualifying
components'' means components that the Secretary determines
to be--
(A) specially designed for advanced technology vehicles;
and
(B) installed for the purpose of meeting the performance
requirements of advanced technology vehicles.
(b) Advanced Vehicles Manufacturing Facility.--The
Secretary shall provide facility funding awards under this
section to automobile manufacturers and component suppliers
to pay not more than 30 percent of the cost of--
(1) reequipping, expanding, or establishing a manufacturing
facility in the United States to produce--
(A) qualifying advanced technology vehicles; or
(B) qualifying components; and
(2) engineering integration performed in the United States
of qualifying vehicles and qualifying components.
(c) Period of Availability.--An award under subsection (b)
shall apply to--
(1) facilities and equipment placed in service before
December 30, 2017; and
(2) engineering integration costs incurred during the
period beginning on the date of enactment of this Act and
ending on December 30, 2017.
(d) Improvement.--The Secretary shall issue regulations
that require that, in order for an automobile manufacturer to
be eligible for an award under this section during a
particular year, the adjusted average fuel economy of the
manufacturer for light duty vehicles produced by the
manufacturer during the most recent year for which data are
available shall be not
[[Page H14285]]
less than the average fuel economy for all light duty
vehicles of the manufacturer for model year 2005.
(e) Set Aside for Small Automobile Manufacturers and
Component Suppliers.--
(1) Definition of covered firm.--In this subsection, the
term ``covered firm'' means a firm that--
(A) employs less than 500 individuals; and
(B) manufactures automobiles or components of automobiles.
(2) Set aside.--Of the amount of funds that are used to
provide awards for each fiscal year under this section, the
Secretary shall use not less than 30 percent of the amount to
provide awards to covered firms or consortia led by a covered
firm.
SEC. 244. ENERGY STORAGE COMPETITIVENESS.
(a) Short Title.--This section may be cited as the ``United
States Energy Storage Competitiveness Act of 2007''.
(b) Energy Storage Systems for Motor Transportation and
Electricity Transmission and Distribution.--
(1) Definitions.--In this subsection:
(A) Council.--The term ``Council'' means the Energy Storage
Advisory Council established under paragraph (3).
(B) Compressed air energy storage.--The term ``compressed
air energy storage'' means, in the case of an electricity
grid application, the storage of energy through the
compression of air.
(C) Department.--The term ``Department'' means the
Department of Energy.
(D) Flywheel.--The term ``flywheel'' means, in the case of
an electricity grid application, a device used to store
rotational kinetic energy.
(E) Ultracapacitor.--The term ``ultracapacitor'' means an
energy storage device that has a power density comparable to
conventional capacitors but capable of exceeding the energy
density of conventional capacitors by several orders of
magnitude.
(2) Program.--The Secretary shall carry out a research,
development, and demonstration program to support the ability
of the United States to remain globally competitive in energy
storage systems for motor transportation and electricity
transmission and distribution.
(3) Energy storage advisory council.--
(A) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Secretary shall establish an
Energy Storage Advisory Council.
(B) Composition.--
(i) In general.--Subject to clause (ii), the Council shall
consist of not less than 15 individuals appointed by the
Secretary, based on recommendations of the National Academy
of Sciences.
(ii) Energy storage industry.--The Council shall consist
primarily of representatives of the energy storage industry
of the United States.
(iii) Chairperson.--The Secretary shall select a
Chairperson for the Council from among the members appointed
under clause (i).
(C) Meetings.--
(i) In general.--The Council shall meet not less than once
a year.
(ii) Federal advisory committee act.--The Federal Advisory
Committee Act (5 U.S.C. App. 2) shall apply to a meeting of
the Council.
(D) Plans.--No later than 1 year after the date of
enactment of this Act, in conjunction with the Secretary, the
Council shall develop 5-year plans for integrating basic and
applied research so that the United States retains a globally
competitive domestic energy storage industry for motor
transportation and electricity transmission and distribution.
(E) Review.--The Council shall--
(i) assess the performance of the Department in meeting the
goals of the plans developed under subparagraph (D); and
(ii) make specific recommendations to the Secretary on
programs or activities that should be established or
terminated to meet those goals.
(4) Basic research program.--
(A) Basic research.--The Secretary shall conduct a basic
research program on energy storage systems to support motor
transportation and electricity transmission and distribution,
including--
(i) materials design;
(ii) materials synthesis and characterization;
(iii) electrode-active materials, including electrolytes
and bioelectrolytes;
(iv) surface and interface dynamics;
(v) modeling and simulation; and
(vi) thermal behavior and life degradation mechanisms; and
(vii) thermal behavior and life degradation mechanisms.
(B) Nanoscience centers.--The Secretary, in cooperation
with the Council, shall coordinate the activities of the
nanoscience centers of the Department to help the nanoscience
centers of the Department maintain a globally competitive
posture in energy storage systems for motor transportation
and electricity transmission and distribution.
(5) Applied research program.--The Secretary shall conduct
an applied research program on energy storage systems to
support motor transportation and electricity transmission and
distribution technologies, including--
(A) ultracapacitors;
(B) flywheels;
(C) batteries and battery systems (including flow
batteries);
(D) compressed air energy systems;
(E) power conditioning electronics;
(F) manufacturing technologies for energy storage systems;
and
(G) thermal management systems.
(6) Energy storage research centers.--
(A) In general.--The Secretary shall establish, through
competitive bids, not more than 4 energy storage research
centers to translate basic research into applied technologies
to advance the capability of the United States to maintain a
globally competitive posture in energy storage systems for
motor transportation and electricity transmission and
distribution.
(B) Program management.--The centers shall be jointly
managed by the Under Secretary for Science of the Department.
(C) Participation agreements.--As a condition of
participating in a center, a participant shall enter into a
participation agreement with the center that requires that
activities conducted by the participant for the center
promote the goal of enabling the United States to compete
successfully in global energy storage markets.
(D) Plans.--A center shall conduct activities that promote
the achievement of the goals of the plans of the Council
under paragraph (3)(D).
(E) Cost sharing.--In carrying out this paragraph, the
Secretary shall require cost-sharing in accordance with
section 988 of the Energy Policy Act of 2005 (42 U.S.C.
16352).
(F) National laboratories.--A national laboratory (as
defined in section 2 of the Energy Policy Act of 2005 (42
U.S.C. 15801)) may participate in a center established under
this paragraph, including a cooperative research and
development agreement (as defined in section 12(d) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3710a(d))).
(7) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) may apply to any project carried out
through a grant, contract, or cooperative agreement under
this section.
(8) Intellectual property.--In accordance with section
202(a)(ii) of title 35, United States Code, section 152 of
the Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9
of the Federal Nonnuclear Research and Development Act of
1974 (42 U.S.C. 5908), the Secretary may require, for any new
invention developed under paragraph (6)--
(A) that any industrial participant that is active in a
Energy Storage Research Center established under paragraph
(6) related to the advancement of energy storage technologies
carried out, in whole or in part, with Federal funding, be
granted the first option to negotiate with the invention
owner, at least in the field of energy storage technologies,
nonexclusive licenses and royalties on terms that are
reasonable, as determined by the Secretary;
(B) that, during a 2-year period beginning on the date on
which an invention is made, the patent holder shall not
negotiate any license or royalty agreement with any entity
that is not an industrial participant under paragraph (6);
(C) that, during the 2-year period described in
subparagraph (B), the patent holder shall negotiate
nonexclusive licenses and royalties in good faith with any
interested industrial participant under paragraph (6); and
(D) such other terms as the Secretary determines to be
necessary to promote the accelerated commercialization of
inventions made under paragraph (6) to advance the capability
of the United States to successfully compete in global energy
storage markets.
(9) Review by national academy of sciences.--Not later than
3 years after the date of enactment of this Act, the
Secretary shall offer to enter into an arrangement with the
National Academy of Sciences to assess the performance of the
Department in carrying out this section.
(10) Authorization of appropriations.--There are authorized
to be appropriated to carry out--
(A) the basic research program under paragraph (4)
$50,000,000 for each of fiscal years 2008 through 2017;
(B) the applied research program under paragraph (5)
$80,000,000 for each of fiscal years 2008 through 2017; and;
(C) the energy storage research center program under
paragraph (6) $100,000,000 for each of fiscal years 2008
through 2017.
SEC. 245. ADVANCED TRANSPORTATION TECHNOLOGY PROGRAM.
(a) Electric Drive Vehicle Demonstration Program.--
(1) Definitions.--In this subsection--
(A) Battery.--The term ``battery'' means an electrochemical
energy storage device powered directly by electrical current.
(B) Plug-in electric drive vehicle.--The term ``plug-in
electric drive vehicle'' means a precommercial vehicle that--
(i) draws motive power from a battery with a capacity of at
least 4 kilowatt-hours;
(ii) can be recharged from an external source of
electricity for motive power; and
(iii) is a light-, medium-, or heavy-duty onroad or nonroad
vehicle.
(2) Program.--The Secretary shall establish a competitive
program to provide grants for demonstrations of plug-in
electric drive vehicles.
(3) Eligibility.--
(A) In general.--A State government, local government,
metropolitan transportation authority, air pollution control
district, private entity, and nonprofit entity shall be
eligible to receive a grant under this subsection.
(B) Certain applicants.--A battery manufacturer that
proposes to supply to an applicant for a grant under this
section a battery with a capacity of greater than 1 kilowatt-
hour for use in a plug-in electric drive vehicle shall--
(i) ensure that the applicant includes in the application a
description of the price of the battery per kilowatt-hour;
(ii) on approval by the Secretary of the application,
publish, or permit the Secretary to publish, the price
described in clause (i); and
(iii) for any order received by the battery manufacturer
for at least 1,000 batteries, offer the batteries at that
price.
(4) Priority.--In making grants under this subsection, the
Secretary shall give priority to proposals that--
(A) are likely to contribute to the commercialization and
production of plug-in electric drive vehicles in the United
States; and
[[Page H14286]]
(B) reduce petroleum usage.
(5) Scope of demonstrations.--The Secretary shall ensure,
to the extent practicable, that the program established under
this subsection includes a variety of applications,
manufacturers, and end-uses.
(6) Reporting.--The Secretary shall require a grant
recipient under this subsection to submit to the Secretary,
on an annual basis, data relating to vehicle, performance,
life cycle costs, and emissions of vehicles demonstrated
under the grant, including emissions of greenhouse gases.
(7) Cost sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a grant made under this
subsection.
(8) Authorizations of appropriations.--There are authorized
to be appropriated to carry out this subsection $60,000,000
for each of fiscal years 2008 through 2012, of which not less
than $20,000,000 shall be available each fiscal year only to
make grants local and municipal governments.
(b) Near-Term Electric Drive Transportation Deployment
Program.--
(1) Definition of qualified electric transportation
project.--
(A) In general.--In this subsection, the term ``qualified
electric transportation project'' means a project that would
simultaneously reduce emissions of criteria pollutants,
greenhouse gas emissions, and petroleum usage by at least 40
percent as compared to commercially available, petroleum-
based technologies.
(B) Inclusions.--In this subsection, the term ``qualified
electric transportation project'' includes a project relating
to--
(i) shipside or shoreside electrification for vessels;
(ii) truck-stop electrification;
(iii) electric truck refrigeration units;
(iv) battery powered auxiliary power units for trucks;
(v) electric airport ground support equipment;
(vi) electric material and cargo handling equipment;
(vii) electric or dual-mode electric freight rail;
(viii) any distribution upgrades needed to supply
electricity to the project; and
(ix) any ancillary infrastructure, including panel
upgrades, battery chargers, in-situ transformers, and
trenching.
(2) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with
the Secretary of Transportation and the Administrator of the
Environmental Protection Agency, shall establish a program to
provide grants and loans to eligible entities for the conduct
of qualified electric transportation projects.
(3) Grants.--
(A) In general.--Of the amounts made available for grants
under paragraph (2)--
(i) \2/3\ shall be made available by the Secretary on a
competitive basis for qualified electric transportation
projects based on the overall cost-effectiveness of a
qualified electric transportation project in reducing
emissions of criteria pollutants, emissions of greenhouse
gases, and petroleum usage; and
(ii) \1/3\ shall be made available by the Secretary for
qualified electric transportation projects in the order that
the grant applications are received, if the qualified
electric transportation projects meet the minimum standard
for the reduction of emissions of criteria pollutants,
emissions of greenhouse gases, and petroleum usage described
in paragraph (1)(A).
(B) Priority.--In providing grants under this paragraph,
the Secretary shall give priority to large-scale projects and
large-scale aggregators of projects.
(C) Cost sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a grant made under this
paragraph.
(4) Revolving loan program.--
(A) In general.--The Secretary shall establish a revolving
loan program to provide loans to eligible entities for the
conduct of qualified electric transportation projects under
paragraph (2).
(B) Criteria.--The Secretary shall establish criteria for
the provision of loans under this paragraph.
(C) Funding.--Of amounts made available to carry out this
subsection, the Secretary shall use any amounts not used to
provide grants under paragraph (3) to carry out the revolving
loan program under this paragraph.
(c) Market Assessment Program.--The Administrator of the
Environmental Protection Agency, in consultation with the
Secretary and private industry, shall carry out a program--
(1) to inventory and analyze existing electric drive
transportation technologies and hybrid technologies and
markets; and
(2) to identify and implement methods of removing barriers
for existing and emerging applications of electric drive
transportation technologies and hybrid transportation
technologies.
(d) Electricity Usage Program.--
(1) In general.--The Secretary, in consultation with the
Administrator of the Environmental Protection Agency and
private industry, shall carry out a program--
(A) to work with utilities to develop low-cost, simple
methods of--
(i) using off-peak electricity; or
(ii) managing on-peak electricity use;
(B) to develop systems and processes--
(i) to enable plug-in electric vehicles to enhance the
availability of emergency back-up power for consumers;
(ii) to study and demonstrate the potential value to the
electric grid to use the energy stored in the on-board
storage systems to improve the efficiency and reliability of
the grid generation system; and
(iii) to work with utilities and other interested
stakeholders to study and demonstrate the implications of the
introduction of plug-in electric vehicles and other types of
electric transportation on the production of electricity from
renewable resources.
(2) Off-peak electricity usage grants.--In carrying out the
program under paragraph (1), the Secretary shall provide
grants to assist eligible public and private electric
utilities for the conduct of programs or activities to
encourage owners of electric drive transportation
technologies--
(A) to use off-peak electricity; or
(B) to have the load managed by the utility.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out subsections (b), (c), and (d)
$125,000,000 for each of fiscal years 2008 through 2013.
(f) Electric Drive Transportation Technologies.--
(1) Definitions.--In this subsection:
(A) Battery.--The term ``battery'' means an electrochemical
energy storage device powered directly by electrical current.
(B) Electric drive transportation technology.--The term
``electric drive transportation technology'' means--
(i) technology used in vehicles that use an electric motor
for all or part of the motive power of the vehicles,
including battery electric, hybrid electric, plug-in hybrid
electric, fuel cell, and plug-in fuel cell vehicles, or rail
transportation; or
(ii) equipment relating to transportation or mobile sources
of air pollution that use an electric motor to replace an
internal combustion engine for all or part of the work of the
equipment, including--
(I) corded electric equipment linked to transportation or
mobile sources of air pollution; and
(II) electrification technologies at airports, ports, truck
stops, and material-handling facilities.
(C) Energy storage device.--
(i) In general.--The term ``energy storage device'' means
the onboard device used in an on-road or nonroad vehicle to
store energy, or a battery, ultracapacitor, compressed air
energy storage system, or flywheel used to store energy in a
stationary application.
(ii) Inclusions.--The term ``energy storage device''
includes--
(I) in the case of an electric or hybrid electric or fuel
cell vehicle, a battery, ultracapacitor, or similar device;
and
(II) in the case of a hybrid hydraulic vehicle, an
accumulator or similar device.
(D) Engine dominant hybrid vehicle.--The term ``engine
dominant hybrid vehicle'' means an on-road or nonroad vehicle
that--
(i) is propelled by an internal combustion engine or heat
engine using--
(I) any combustible fuel; and
(II) an on-board, rechargeable energy storage device; and
(ii) has no means of using an off-board source of energy.
(E) Nonroad vehicle.--The term ``nonroad vehicle'' means a
vehicle--
(i) powered by--
(I) a nonroad engine, as that term is defined in section
216 of the Clean Air Act (42 U.S.C. 7550); or
(II) fully or partially by an electric motor powered by a
fuel cell, a battery, or an off-board source of electricity;
and
(ii) that is not a motor vehicle or a vehicle used solely
for competition.
(F) Plug-in electric drive vehicle.--In this section, the
term ``plug-in electric drive vehicle'' means a precommercial
vehicle that--
(i) draws motive power from a battery with a capacity of at
least 4 kilowatt-hours;
(ii) can be recharged from an external source of
electricity for motive power; and
(iii) is a light-, medium-, or heavy-duty onroad or nonroad
vehicle.
(2) Evaluation of plug-in electric drive transportation
technology benefits.--
(A) In general.--The Secretary, in cooperation with the
Administrator of the Environmental Protection Agency, the
heads of other appropriate Federal agencies, and appropriate
interested stakeholders, shall evaluate and, as appropriate,
modify existing test protocols for fuel economy and emissions
to ensure that any protocols for electric drive
transportation technologies, including plug-in electric drive
vehicles, accurately measure the fuel economy and emissions
performance of the electric drive transportation
technologies.
(B) Requirements.--Test protocols (including any
modifications to test protocols) for electric drive
transportation technologies under subparagraph (A) shall--
(i) be designed to assess the full potential of benefits in
terms of reduction of emissions of criteria pollutants,
reduction of energy use, and petroleum reduction; and
(ii) consider--
(I) the vehicle and fuel as a system, not just an engine;
(II) nightly off-board charging, as applicable; and
(III) different engine-turn on speed control strategies.
(3) Plug-in electric drive vehicle research and
development.--The Secretary shall conduct an applied research
program for plug-in electric drive vehicle technology and
engine dominant hybrid vehicle technology, including--
(A) high-capacity, high-efficiency energy storage devices
that, as compared to existing technologies that are in
commercial service, have improved life, energy storage
capacity, and power delivery capacity;
(B) high-efficiency on-board and off-board charging
components;
(C) high-power and energy-efficient drivetrain systems for
passenger and commercial vehicles and for nonroad vehicles;
(D) development and integration of control systems and
power trains for plug-in electric vehicles, plug-in hybrid
fuel cell vehicles, and engine dominant hybrid vehicles,
including--
[[Page H14287]]
(i) development of efficient cooling systems;
(ii) analysis and development of control systems that
minimize the emissions profile in cases in which clean diesel
engines are part of a plug-in hybrid drive system; and
(iii) development of different control systems that
optimize for different goals, including--
(I) prolonging energy storage device life;
(II) reduction of petroleum consumption; and
(III) reduction of greenhouse gas emissions;
(E) application of nanomaterial technology to energy
storage devices and fuel cell systems; and
(F) use of smart vehicle and grid interconnection devices
and software that enable communications between the grid of
the future and electric drive transportation technology
vehicles.
(4) Education program.--
(A) In general.--The Secretary shall develop a nationwide
electric drive transportation technology education program
under which the Secretary shall provide--
(i) teaching materials to secondary schools and high
schools; and
(ii) assistance for programs relating to electric drive
system and component engineering to institutions of higher
education.
(B) Electric vehicle competition.--The program established
under subparagraph (A) shall include a plug-in hybrid
electric vehicle competition for institutions of higher
education, which shall be known as the ``Dr. Andrew Frank
Plug-In Electric Vehicle Competition''.
(C) Engineers.--In carrying out the program established
under subparagraph (A), the Secretary shall provide financial
assistance to institutions of higher education to create new,
or support existing, degree programs to ensure the
availability of trained electrical and mechanical engineers
with the skills necessary for the advancement of--
(i) plug-in electric drive vehicles; and
(ii) other forms of electric drive transportation
technology vehicles.
(5) Authorization of appropriations.--There are authorized
to be appropriated for each of fiscal years 2008 through
2013--
(A) to carry out paragraph (3) $200,000,000; and
(B) to carry out paragraph (4) $5,000,000.
(g) Collaboration and Merit Review.--
(1) Collaboration with national laboratories.--To the
maximum extent practicable, National Laboratories shall
collaborate with the public, private, and academic sectors
and with other National Laboratories in the design, conduct,
and dissemination of the results of programs and activities
authorized under this section.
(2) Collaboration with mobile energy storage program.--To
the maximum extent practicable, the Secretary shall seek to
coordinate the stationary and mobile energy storage programs
of the Department of the Energy with the programs and
activities authorized under this section
(3) Merit review.--Notwithstanding section 989 of the
Energy Policy Act of 2005 (42 U.S.C. 16353), of the amounts
made available to carry out this section, not more than 30
percent shall be provided to National Laboratories.
SEC. 246. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF
1992.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C.
13258) is amended--
(1) by redesignating subsections (a) through (d) as
subsections (b) through (e), respectively;
(2) by inserting before subsection (b) the following:
``(a) Definitions.--In this section:
``(1) Fuel cell electric vehicle.--The term `fuel cell
electric vehicle' means an on-road or nonroad vehicle that
uses a fuel cell (as defined in section 803 of the Spark M.
Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).
``(2) Hybrid electric vehicle.--The term `hybrid electric
vehicle' means a new qualified hybrid motor vehicle (as
defined in section 30B(d)(3) of the Internal Revenue Code of
1986).
``(3) Medium- or heavy-duty electric vehicle.--The term
`medium- or heavy-duty electric vehicle' means an electric,
hybrid electric, or plug-in hybrid electric vehicle with a
gross vehicle weight of more than 8,501 pounds.
``(4) Neighborhood electric vehicle.--The term
`neighborhood electric vehicle' means a 4-wheeled on-road or
nonroad vehicle that--
``(A) has a top attainable speed in 1 mile of more than 20
mph and not more than 25 mph on a paved level surface; and
``(B) is propelled by an electric motor and on-board,
rechargeable energy storage system that is rechargeable using
an off-board source of electricity.
``(5) Plug-in hybrid electric vehicle.--The term `plug-in
hybrid electric vehicle' means a light-duty, medium-duty, or
heavy-duty on-road or nonroad vehicle that is propelled by
any combination of--
``(A) an electric motor and on-board, rechargeable energy
storage system capable of operating the vehicle in
intermittent or continuous all-electric mode and which is
rechargeable using an off-board source of electricity; and
``(B) an internal combustion engine or heat engine using
any combustible fuel.'';
(3) in subsection (b) (as redesignated by paragraph (1))--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) Allocation.--The Secretary''; and
(B) by adding at the end the following:
``(2) Electric vehicles.--Not later than January 31, 2009,
the Secretary shall--
``(A) allocate credit in an amount to be determined by the
Secretary for--
``(i) acquisition of--
``(I) a hybrid electric vehicle;
``(II) a plug-in hybrid electric vehicle;
``(III) a fuel cell electric vehicle;
``(IV) a neighborhood electric vehicle; or
``(V) a medium- or heavy-duty electric vehicle; and
``(ii) investment in qualified alternative fuel
infrastructure or nonroad equipment, as determined by the
Secretary; and
``(B) allocate more than 1, but not to exceed 5, credits
for investment in an emerging technology relating to any
vehicle described in subparagraph (A) to encourage--
``(i) a reduction in petroleum demand;
``(ii) technological advancement; and
``(iii) a reduction in vehicle emissions.'';
(4) in subsection (c) (as redesignated by paragraph (1)),
by striking ``subsection (a)'' and inserting ``subsection
(b)''; and
(5) by adding at the end the following:
``(e) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2013.''.
SEC. 247. COMMERCIAL INSULATION DEMONSTRATION PROGRAM.
(a) Definitions.--In this section:
(1) Advanced insulation.--The term ``advanced insulation''
means insulation that has an R value of not less than R35 per
inch.
(2) Covered refrigeration unit.--The term ``covered
refrigeration unit'' means any--
(A) commercial refrigerated truck;
(B) commercial refrigerated trailer; and
(C) commercial refrigerator, freezer, or refrigerator-
freezer described in section 342(c) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(c)).
(b) Report.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to Congress
a report that includes an evaluation of--
(1) the state of technological advancement of advanced
insulation; and
(2) the projected amount of cost savings that would be
generated by implementing advanced insulation into covered
refrigeration units.
(c) Demonstration Program.--
(1) Establishment.--If the Secretary determines in the
report described in subsection (b) that the implementation of
advanced insulation into covered refrigeration units would
generate an economically justifiable amount of cost savings,
the Secretary, in cooperation with manufacturers of covered
refrigeration units, shall establish a demonstration program
under which the Secretary shall demonstrate the cost-
effectiveness of advanced insulation.
(2) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) may apply to any project carried out
under this subsection.
(3) Cost-sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to any project carried out
under this subsection.
(d) Authorization of Appropriations.--Of the funds
authorized under section 911(b) of Public Law 109-58, the
Energy Policy Act of 2005, such sums shall be allocated to
carry out this program.
Subtitle D--Setting Energy Efficiency Goals
SEC. 251. OIL SAVINGS PLAN AND REQUIREMENTS.
(a) Oil Savings Target and Action Plan.--Not later than 270
days after the date of enactment of this Act, the Director of
the Office of Management and Budget (referred to in this
section as the ``Director'') shall publish in the Federal
Register an action plan consisting of--
(1) a list of requirements proposed or to be proposed
pursuant to subsection (b) that are authorized to be issued
under law in effect on the date of enactment of this Act, and
this Act, that will be sufficient, when taken together, to
save from the baseline determined under subsection (e)--
(A) 2,500,000 barrels of oil per day on average during
calendar year 2016;
(B) 7,000,000 barrels of oil per day on average during
calendar year 2026; and
(C) 10,000,000 barrels per day on average during calendar
year 2031; and
(2) a Federal Government-wide analysis demonstrating--
(A) the expected oil savings from the baseline to be
accomplished by each requirement; and
(B) that all such requirements, taken together, will
achieve the oil savings specified in this subsection.
(b) Standards and Requirements.--
(1) In general.--On or before the date of publication of
the action plan under subsection (a), the Secretary of
Energy, the Secretary of Transportation, the Secretary of
Defense, the Secretary of Agriculture, the Secretary of the
Treasury, the Administrator of the Environmental Protection
Agency, and the head of any other agency the President
determines appropriate shall each propose, or issue a notice
of intent to propose, regulations establishing each standard
or other requirement listed in the action plan that is under
the jurisdiction of the respective agency using authorities
described in paragraph (2).
(2) Authorities.--The head of each agency described in
paragraph (1) shall use to carry out this subsection--
(A) any authority in existence on the date of enactment of
this Act (including regulations); and
(B) any new authority provided under this Act (including an
amendment made by this Act).
(3) Final regulations.--Not later than 18 months after the
date of enactment of this Act, the head of each agency
described in paragraph (1) shall promulgate final versions of
the regulations required under this subsection.
(4) Content of regulations.--Each proposed and final
regulation promulgated under this subsection shall--
(A) be sufficient to achieve at least the oil savings
resulting from the regulation under the action plan published
under subsection (a); and
(B) be accompanied by an analysis by the applicable agency
demonstrating that the regulation will achieve the oil
savings from the baseline determined under subsection (e).
(c) Initial Evaluation.--
[[Page H14288]]
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Director shall--
(A) publish in the Federal Register a Federal Government-
wide analysis of--
(i) the oil savings achieved from the baseline established
under subsection (e); and
(ii) the expected oil savings under the standards and
requirements of this Act (and amendments made by this Act);
and
(B) determine whether oil savings will meet the targets
established under subsection (a).
(2) Insufficient oil savings.--If the oil savings are less
than the targets established under subsection (a),
simultaneously with the analysis required under paragraph
(1)--
(A) the Director shall publish a revised action plan that
is sufficient to achieve the targets; and
(B) the head of each agency referred to in subsection
(b)(1) shall propose new or revised regulations that are
sufficient to achieve the targets under paragraphs (1), (2),
and (3), respectively, of subsection (b).
(3) Final regulations.--Not later than 180 days after the
date on which regulations are proposed under paragraph
(2)(B), the head of each agency referred to in subsection
(b)(1) shall promulgate final versions of those regulations
that comply with subsection (b)(1).
(d) Review and Update of Action Plan.--
(1) Review.--Not later than January 1, 2011, and every 3
years thereafter, the Director shall submit to Congress, and
publish, a report that--
(A) evaluates the progress achieved in implementing the oil
savings targets established under subsection (a);
(B) analyzes the expected oil savings under the standards
and requirements established under this Act and the
amendments made by this Act; and
(C)(i) analyzes the potential to achieve oil savings that
are in addition to the savings required by subsection (a);
and
(ii) if the President determines that it is in the national
interest, establishes a higher oil savings target for
calendar year 2017 or any subsequent calendar year.
(2) Insufficient oil savings.--If the oil savings are less
than the targets established under subsection (a),
simultaneously with the report required under paragraph (1)--
(A) the Director shall publish a revised action plan that
is sufficient to achieve the targets; and
(B) the head of each agency referred to in subsection
(b)(1) shall propose new or revised regulations that are
sufficient to achieve the targets under paragraphs (1), (2),
and (3), respectively, of subsection (b).
(3) Final regulations.--Not later than 180 days after the
date on which regulations are proposed under paragraph
(2)(B), the head of each agency referred to in subsection
(b)(1) shall promulgate final versions of those regulations
that comply with subsection (b)(1).
(e) Baseline and Analysis Requirements.--In performing the
analyses and promulgating proposed or final regulations to
establish standards and other requirements necessary to
achieve the oil savings required by this section, the
Secretary of Energy, the Secretary of Transportation, the
Secretary of Defense, the Secretary of Agriculture, the
Administrator of the Environmental Protection Agency, and the
head of any other agency the President determines to be
appropriate shall--
(1) determine oil savings as the projected reduction in oil
consumption from the baseline established by the reference
case contained in the report of the Energy Information
Administration entitled ``Annual Energy Outlook 2005'';
(2) determine the oil savings projections required on an
annual basis for each of calendar years 2009 through 2026;
and
(3) account for any overlap among the standards and other
requirements to ensure that the projected oil savings from
all the promulgated standards and requirements, taken
together, are as accurate as practicable.
(f) Nonregulatory Measures.--The action plan required under
subsection (a) and the revised action plans required under
subsections (c) and (d) shall include--
(1) a projection of the barrels of oil displaced by
efficiency and sources of energy other than oil, including
biofuels, electricity, and hydrogen; and
(2) a projection of the barrels of oil saved through
enactment of this Act and the Energy Policy Act of 2005 (42
U.S.C. 15801 et seq.).
SEC. 252. NATIONAL ENERGY EFFICIENCY IMPROVEMENT GOALS.
(a) Goals.--The goals of the United States are--
(1) to achieve an improvement in the overall energy
productivity of the United States (measured in gross domestic
product per unit of energy input) of at least 2.5 percent per
year by the year 2012; and
(2) to maintain that annual rate of improvement each year
through 2030.
(b) Strategic Plan.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in cooperation with the
Administrator of the Environmental Protection Agency and the
heads of other appropriate Federal agencies, shall develop a
strategic plan to achieve the national goals for improvement
in energy productivity established under subsection (a).
(2) Public input and comment.--The Secretary shall develop
the plan in a manner that provides appropriate opportunities
for public input and comment.
(c) Plan Contents.--The strategic plan shall--
(1) establish future regulatory, funding, and policy
priorities to ensure compliance with the national goals;
(2) include energy savings estimates for each sector; and
(3) include data collection methodologies and compilations
used to establish baseline and energy savings data.
(d) Plan Updates.--
(1) In general.--The Secretary shall--
(A) update the strategic plan biennially; and
(B) include the updated strategic plan in the national
energy policy plan required by section 801 of the Department
of Energy Organization Act (42 U.S.C. 7321).
(2) Contents.--In updating the plan, the Secretary shall--
(A) report on progress made toward implementing efficiency
policies to achieve the national goals established under
subsection (a); and
(B) verify, to the maximum extent practicable, energy
savings resulting from the policies.
(e) Report to Congress and Public.--The Secretary shall
submit to Congress, and make available to the public, the
initial strategic plan developed under subsection (b) and
each updated plan.
SEC. 253. NATIONAL MEDIA CAMPAIGN.
(a) In General.--The Secretary, acting through the
Assistant Secretary for Energy Efficiency and Renewable
Energy (referred to in this section as the ``Secretary''),
shall develop and conduct a national media campaign--
(1) to increase energy efficiency throughout the economy of
the United States over the next decade;
(2) to promote the national security benefits associated
with increased energy efficiency; and
(3) to decrease oil consumption in the United States over
the next decade.
(b) Contract With Entity.--The Secretary shall carry out
subsection (a) directly or through--
(1) competitively bid contracts with 1 or more nationally
recognized media firms for the development and distribution
of monthly television, radio, and newspaper public service
announcements; or
(2) collective agreements with 1 or more nationally
recognized institutes, businesses, or nonprofit organizations
for the funding, development, and distribution of monthly
television, radio, and newspaper public service
announcements.
(c) Use of Funds.--
(1) In general.--Amounts made available to carry out this
section shall be used for the following:
(A) Advertising costs.--
(i) The purchase of media time and space.
(ii) Creative and talent costs.
(iii) Testing and evaluation of advertising.
(iv) Evaluation of the effectiveness of the media campaign.
(B) Administrative costs.--Operational and management
expenses.
(2) Limitations.--In carrying out this section, the
Secretary shall allocate not less than 85 percent of funds
made available under subsection (e) for each fiscal year for
the advertising functions specified under paragraph (1)(A).
(d) Reports.--The Secretary shall annually submit to
Congress a report that describes--
(1) the strategy of the national media campaign and whether
specific objectives of the campaign were accomplished,
including--
(A) determinations concerning the rate of change of energy
consumption, in both absolute and per capita terms; and
(B) an evaluation that enables consideration whether the
media campaign contributed to reduction of energy
consumption;
(2) steps taken to ensure that the national media campaign
operates in an effective and efficient manner consistent with
the overall strategy and focus of the campaign;
(3) plans to purchase advertising time and space;
(4) policies and practices implemented to ensure that
Federal funds are used responsibly to purchase advertising
time and space and eliminate the potential for waste, fraud,
and abuse; and
(5) all contracts or cooperative agreements entered into
with a corporation, partnership, or individual working on
behalf of the national media campaign.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $5,000,000 for each of fiscal years
2008 through 2012.
(2) Decreased oil consumption.--The Secretary shall use not
less than 50 percent of the amount that is made available
under this section for each fiscal year to develop and
conduct a national media campaign to decrease oil consumption
in the United States over the next decade.
SEC. 254. MODERNIZATION OF ELECTRICITY GRID SYSTEM.
(a) Statement of Policy.--It is the policy of the United
States that developing and deploying advanced technology to
modernize and increase the efficiency of the electricity grid
system of the United States is essential to maintain a
reliable and secure electricity transmission and distribution
infrastructure that can meet future demand growth.
(b) Programs.--The Secretary, the Federal Energy Regulatory
Commission, and other Federal agencies, as appropriate, shall
carry out programs to support the use, development, and
demonstration of advanced transmission and distribution
technologies, including real-time monitoring and analytical
software--
(1) to maximize the capacity and efficiency of electricity
networks;
(2) to enhance grid reliability;
(3) to reduce line losses;
(4) to facilitate the transition to real-time electricity
pricing;
(5) to allow grid incorporation of more onsite renewable
energy generators;
(6) to enable electricity to displace a portion of the
petroleum used to power the national transportation system of
the United States; and
[[Page H14289]]
(7) to enable broad deployment of distributed generation
and demand side management technology.
SEC. 255. SMART GRID SYSTEM REPORT.
(a) In General.--The Secretary, acting through the Director
of the Office of Electricity Delivery and Energy Reliability
(referred to in this section as the ``Secretary''), shall,
after consulting with any interested individual or entity as
appropriate, no later than one year after enactment, report
to Congress concerning the status of smart grid deployments
nationwide and any regulatory or government barriers to
continued deployment.
SEC. 256. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION.
(a) Power Grid Digital Information Technology.--The
Secretary, in consultation with the Federal Energy Regulatory
Commission and other appropriate agencies, electric
utilities, the States, and other stakeholders, shall carry
out a program--
(1) to develop advanced techniques for measuring peak load
reductions and energy-efficiency savings from smart metering,
demand response, distributed generation, and electricity
storage systems;
(2) to investigate means for demand response, distributed
generation, and storage to provide ancillary services;
(3) to conduct research to advance the use of wide-area
measurement and control networks, including data mining,
visualization, advanced computing, and secure and dependable
communications in a highly-distributed environment;
(4) to test new reliability technologies in a grid control
room environment against a representative set of local outage
and wide area blackout scenarios;
(5) to investigate the feasibility of a transition to time-
of-use and real-time electricity pricing;
(6) to develop algorithms for use in electric transmission
system software applications;
(7) to promote the use of underutilized electricity
generation capacity in any substitution of electricity for
liquid fuels in the transportation system of the United
States; and
(8) in consultation with the Federal Energy Regulatory
Commission, to propose interconnection protocols to enable
electric utilities to access electricity stored in vehicles
to help meet peak demand loads.
(b) Smart Grid Regional Demonstration Initiative.--
(1) In general.--The Secretary shall establish a smart grid
regional demonstration initiative (referred to in this
subsection as the ``Initiative'') composed of demonstration
projects specifically focused on advanced technologies for
use in power grid sensing, communications, analysis, and
power flow control. The Secretary shall seek to leverage
existing smart grid deployments.
(2) Goals.--The goals of the Initiative shall be--
(A) to demonstrate the potential benefits of concentrated
investments in advanced grid technologies on a regional grid;
(B) to facilitate the commercial transition from the
current power transmission and distribution system
technologies to advanced technologies;
(C) to facilitate the integration of advanced technologies
in existing electric networks to improve system performance,
power flow control, and reliability;
(D) to demonstrate protocols and standards that allow for
the measurement and validation of the energy savings and
fossil fuel emission reductions associated with the
installation and use of energy efficiency and demand response
technologies and practices; and
(E) to investigate differences in each region and
regulatory environment regarding best practices in
implementing smart grid technologies.
(3) Demonstration projects.--
(A) In general.--In carrying out the initiative, the
Secretary shall carry out smart grid demonstration projects
in up to 5 electricity control areas, including rural areas
and at least 1 area in which the majority of generation and
transmission assets are controlled by a tax-exempt entity.
(B) Cooperation.--A demonstration project under
subparagraph (A) shall be carried out in cooperation with the
electric utility that owns the grid facilities in the
electricity control area in which the demonstration project
is carried out.
(C) Federal share of cost of technology investments.--The
Secretary shall provide to an electric utility described in
subparagraph (B) financial assistance for use in paying an
amount equal to not more than 50 percent of the cost of
qualifying advanced grid technology investments made by the
electric utility to carry out a demonstration project.
(4) Authorization of appropriations.--There are authorized
to be appropriated--
(A) to carry out subsection (a), such sums as are necessary
for each of fiscal years 2008 through 2012; and
(B) to carry out subsection (b), $100,000,000 for each of
fiscal years 2008 through 2012.
SEC. 257. SMART GRID INTEROPERABILITY FRAMEWORK.
(a) Interoperability Framework.--The Federal Energy
Regulatory Commission (referred to in this section as the
``Commission''), in cooperation with other relevant federal
agencies, shall coordinate with smart grid stakeholders to
develop protocols for the establishment of a flexible
framework for the connection of smart grid devices and
systems that would align policy, business, and technology
approaches in a manner that would enable all electric
resources, including demand-side resources, to contribute to
an efficient, reliable electricity network.
(c) Scope of Framework.--The framework developed under
subsection (b) shall be designed--
(1) to accommodate traditional, centralized generation and
transmission resources and consumer distributed resources,
including distributed generation, renewable generation,
energy storage, energy efficiency, and demand response and
enabling devices and systems;
(2) to be flexible to incorporate--
(A) regional and organizational differences; and
(B) technological innovations; and
(3) to consider include voluntary uniform standards for
certain classes of mass-produced electric appliances and
equipment for homes and businesses that enable customers, at
their election and consistent with applicable State and
federal laws, and are manufactured with the ability to
respond to electric grid emergencies and demand response
signals by curtailing all, or a portion of, the electrical
power consumed by the appliances or equipment in response to
an emergency or demand response signal, including through--
(A) load reduction to reduce total electrical demand;
(B) adjustment of load to provide grid ancillary services;
and
(C) in the event of a reliability crisis that threatens an
outage, short-term load shedding to help preserve the
stability of the grid.
(4) Such voluntary standards should incorporate appropriate
manufacturer lead time.
SEC. 258. STATE CONSIDERATION OF SMART GRID.
Section 111(d) of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the
end the following:
``(16) Consideration of smart grid investments.--Each State
shall consider requiring that, prior to undertaking
investments in nonadvanced grid technologies, an electric
utility of the State demonstrate to the State that the
electric utility considered an investment in a qualified
smart grid system based on appropriate factors, including--
``(i) total costs;
``(ii) cost-effectiveness;
``(iii) improved reliability;
``(iv) security;
``(v) system performance; and
``(vi) societal benefit.
``(B) Rate recovery.--Each State shall consider authorizing
each electric utility of the State to recover from ratepayers
any capital, operating expenditure, or other costs of the
electric utility relating to the deployment of a qualified
smart grid system, including a reasonable rate of return on
the capital expenditures of the electric utility for the
deployment of the qualified smart grid system.
``(C) Obsolete equipment.--Each State shall consider
authorizing any electric utility or other party of the State
to deploy a qualified smart grid system to recover in a
timely manner the remaining book-value costs of any equipment
rendered obsolete by the deployment of the qualified smart
grid system, based on the remaining depreciable life of the
obsolete equipment.''.
SEC. 259. SUPPORT FOR ENERGY INDEPENDENCE OF THE UNITED
STATES.
It is the policy of the United States to provide support
for projects and activities to facilitate the energy
independence of the United States so as to ensure that all
but 10 percent of the energy needs of the United States are
supplied by domestic energy sources.
SEC. 260. ENERGY POLICY COMMISSION.
(a) Establishment.--
(1) In general.--There is established a commission, to be
known as the ``National Commission on Energy Independence''
(referred to in this section as the ``Commission'').
(2) Membership.--The Commission shall be composed of 15
members, of whom--
(A) 3 shall be appointed by the President;
(B) 3 shall be appointed by the majority leader of the
Senate;
(C) 3 shall be appointed by the minority leader of the
Senate;
(D) 3 shall be appointed by the Speaker of the House of
Representatives; and
(E) 3 shall be appointed by the minority leader of the
House of Representatives.
(3) Co-chairpersons.--
(A) In general.--The President shall designate 2 co-
chairpersons from among the members of the Commission
appointed.
(B) Political affiliation.--The co-chairpersons designated
under subparagraph (A) shall not both be affiliated with the
same political party.
(4) Deadline for appointment.--Members of the Commission
shall be appointed not later than 90 days after the date of
enactment of this Act.
(5) Term; vacancies.--
(A) Term.--A member of the Commission shall be appointed
for the life of the Commission.
(B) 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.
(b) Purpose.--The Commission shall conduct a comprehensive
review of the energy policy of the United States by--
(1) reviewing relevant analyses of the current and long-
term energy policy of, and conditions in, the United States;
(2) identifying problems that may threaten the achievement
by the United States of long-term energy policy goals,
including energy independence;
(3) analyzing potential solutions to problems that threaten
the long-term ability of the United States to achieve those
energy policy goals; and
(4) providing recommendations that will ensure, to the
maximum extent practicable, that
[[Page H14290]]
the energy policy goals of the United States are achieved.
(c) Report and Recommendations.--
(1) In general.--Not later than December 31 of each of
calendar years 2009, 2011, 2013, and 2015, the Commission
shall submit to Congress and the President a report on the
progress of United States in meeting the long-term energy
policy goal of energy independence, including a detailed
statement of the consensus findings, conclusions, and
recommendations of the Commission.
(2) Legislative language.--If a recommendation submitted
under paragraph (1) involves legislative action, the report
shall include proposed legislative language to carry out the
action.
(d) Commission Personnel Matters.--
(1) Staff and director.--The Commission shall have a staff
headed by an Executive Director.
(2) Staff appointment.--The Executive Director may appoint
such personnel as the Executive Director and the Commission
determine to be appropriate.
(3) 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.
(4) Federal agencies.--
(A) Detail of government employees.--
(i) In general.--Upon 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 clause (i) shall not interrupt or otherwise affect the
civil service status or privileges of the Federal employee.
(B) Technical assistance.--Upon 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.
(e) Resources.--
(1) 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.
(2) Form of requests.--The co-chairpersons of the
Commission shall make requests for access described in
paragraph (1) in writing, as necessary.
Subtitle E--Promoting Federal Leadership in Energy Efficiency and
Renewable Energy
SEC. 261. FEDERAL FLEET CONSERVATION REQUIREMENTS.
(a) Federal Fleet Conservation Requirements.--
(1) In general.--Part J of title III of the Energy Policy
and Conservation Act (42 U.S.C. 6374 et seq.) is amended by
adding at the end the following:
``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.
``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) In general.--The Secretary shall issue regulations
(including provisions for waivers from the requirements of
this section) for Federal fleets subject to section 400AA
requiring that not later than October 1, 2015, each Federal
agency achieve at least a 20 percent reduction in petroleum
consumption, and that each Federal agency increase
alternative fuel consumption by 10 percent annually, as
calculated from the baseline established by the Secretary for
fiscal year 2005.
``(2) Plan.--
``(A) Requirement.--The regulations shall require each
Federal agency to develop a plan to meet the required
petroleum reduction levels and the alternative fuel
consumption increases.
``(B) Measures.--The plan may allow an agency to meet the
required petroleum reduction level through--
``(i) the use of alternative fuels;
``(ii) the acquisition of vehicles with higher fuel
economy, including hybrid vehicles, neighborhood electric
vehicles, electric vehicles, and plug-in hybrid vehicles if
the vehicles are commercially available;
``(iii) the substitution of cars for light trucks;
``(iv) an increase in vehicle load factors;
``(v) a decrease in vehicle miles traveled;
``(vi) a decrease in fleet size; and
``(vii) other measures.
``(b) Federal Employee Incentive Programs for Reducing
Petroleum Consumption.--
``(1) In general.--Each Federal agency shall actively
promote incentive programs that encourage Federal employees
and contractors to reduce petroleum usage through the use of
practices such as--
``(A) telecommuting;
``(B) public transit;
``(C) carpooling; and
``(D) bicycling and the use of 2-wheeled electric drive
devices.
``(2) Monitoring and support for incentive programs.--The
Administrator of General Services, the Director of the Office
of Personnel Management, and the Secretary of Energy shall
monitor and provide appropriate support to agency programs
described in paragraph (1).
``(3) Recognition.--The Secretary may establish a program
under which the Secretary recognizes private sector employers
and State and local governments for outstanding programs to
reduce petroleum usage through practices described in
paragraph (1).
``(c) Replacement Tires.--
``(1) In general.--Except as provided in paragraph (2), the
regulations issued under subsection (a)(1) shall include a
requirement that, to the maximum extent practicable, each
Federal agency purchase energy-efficient replacement tires
for the respective fleet vehicles of the agency.
``(2) Exceptions.--This section does not apply to--
``(A) law enforcement motor vehicles;
``(B) emergency motor vehicles; or
``(C) motor vehicles acquired and used for military
purposes that the Secretary of Defense has certified to the
Secretary must be exempt for national security reasons.
``(d) Annual Reports on Compliance.--The Secretary shall
submit to Congress an annual report that summarizes actions
taken by Federal agencies to comply with this section.''.
(2) Table of contents amendment.--The table of contents of
the Energy Policy and Conservation Act (42 U.S.C. prec. 6201)
is amended by adding at the end of the items relating to part
J of title III the following:
``Sec. 400FF. Federal fleet conservation requirements.''.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out the amendment made by this
section $10,000,000 for the period of fiscal years 2008
through 2013.
SEC. 262. FEDERAL REQUIREMENT TO PURCHASE ELECTRICITY
GENERATED BY RENEWABLE ENERGY.
Section 203 of the Energy Policy Act of 2005 (42 U.S.C.
15852) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Requirement.--
``(1) In general.--The President, acting through the
Secretary, shall require that, to the extent economically
feasible and technically practicable, of the total quantity
of domestic electric energy the Federal Government consumes
during any fiscal year, the following percentages shall be
renewable energy from facilities placed in service after
January 1, 1999:
``(A) Not less than 10 percent in fiscal year 2010.
``(B) Not less than 15 percent in fiscal year 2015.
``(2) Capitol complex.--The Architect of the Capitol, in
consultation with the Secretary, shall ensure that, of the
total quantity of electric energy the Capitol complex
consumes during any fiscal year, the percentages prescribed
in paragraph (1) shall be renewable energy.
``(3) Waiver authority.--The President may reduce or waive
the requirement under paragraph (1) on a fiscal-year basis if
the President determines that complying with paragraph (1)
for a fiscal year would result in--
``(A) a negative impact on military training or readiness
activities conducted by the Department of Defense;
``(B) a negative impact on domestic preparedness activities
conducted by the Department of Homeland Security; or
``(C) a requirement that a Federal agency provide emergency
response services in the event of a natural disaster or
terrorist attack.''; and
(2) by adding at the end the following:
``(e) Contracts for Renewable Energy From Public Utility
Services.--Notwithstanding section 501(b)(1)(B) of title 40,
United States Code, a contract for renewable energy may be
made for a period of not more than 50 years.''.
SEC. 263. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Retention of Savings.--Section 546(c) of the National
Energy Conservation Policy Act (42 U.S.C. 8256(c)) is amended
by striking paragraph (5).
(b) Sunset and Reporting Requirements.--Section 801 of the
National Energy Conservation Policy Act (42 U.S.C. 8287) is
amended by striking subsection (c).
(c) Definition of Energy Savings.--Section 804(2) of the
National Energy Conservation Policy Act (42 U.S.C. 8287c(2))
is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and indenting
appropriately;
(2) by striking ``means a reduction'' and inserting
``means--
``(A) a reduction'';
(3) by striking the period at the end and inserting a
semicolon; and
(4) by adding at the end the following:
``(B) the increased efficient use of an existing energy
source by cogeneration or heat recovery, and installation of
renewable energy systems;
``(C) if otherwise authorized by Federal or State law
(including regulations), the sale or transfer of electrical
or thermal energy generated on-site from renewable energy
sources or cogeneration, but in excess of Federal needs, to
utilities or non-Federal energy users; and
``(D) the increased efficient use of existing water sources
in interior or exterior applications.''.
(d) Notification.--
(1) Authority to enter into contracts.--Section
801(a)(2)(D) of the National Energy Conservation Policy Act
(42 U.S.C. 8287(a)(2)(D)) is amended--
(A) in clause (ii), by inserting ``and'' after the
semicolon at the end;
(B) by striking clause (iii); and
(C) by redesignating clause (iv) as clause (iii).
(2) Reports.--Section 548(a)(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8258(a)(2)) is amended by
inserting ``and any termination penalty exposure'' after
``the energy and cost savings that have resulted from such
contracts''.
(3) Conforming amendment.--Section 2913 of title 10, United
States Code, is amended by striking subsection (e).
(e) Energy and Cost Savings in Nonbuilding Applications.--
(1) Definitions.--In this subsection:
(A) Nonbuilding application.--The term ``nonbuilding
application'' means--
[[Page H14291]]
(i) any class of vehicles, devices, or equipment that is
transportable under the power of the applicable vehicle,
device, or equipment by land, sea, or air and that consumes
energy from any fuel source for the purpose of--
(I) that transportation; or
(II) maintaining a controlled environment within the
vehicle, device, or equipment; and
(ii) any federally-owned equipment used to generate
electricity or transport water.
(B) Secondary savings.--
(i) In general.--The term ``secondary savings'' means
additional energy or cost savings that are a direct
consequence of the energy savings that result from the energy
efficiency improvements that were financed and implemented
pursuant to an energy savings performance contract.
(ii) Inclusions.--The term ``secondary savings'' includes--
(I) energy and cost savings that result from a reduction in
the need for fuel delivery and logistical support;
(II) personnel cost savings and environmental benefits; and
(III) in the case of electric generation equipment, the
benefits of increased efficiency in the production of
electricity, including revenues received by the Federal
Government from the sale of electricity so produced.
(2) Study.--
(A) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary and the Secretary of
Defense shall jointly conduct, and submit to Congress and the
President a report of, a study of the potential for the use
of energy savings performance contracts to reduce energy
consumption and provide energy and cost savings in
nonbuilding applications.
(B) Requirements.--The study under this subsection shall
include--
(i) an estimate of the potential energy and cost savings to
the Federal Government, including secondary savings and
benefits, from increased efficiency in nonbuilding
applications;
(ii) an assessment of the feasibility of extending the use
of energy savings performance contracts to nonbuilding
applications, including an identification of any regulatory
or statutory barriers to such use; and
(iii) such recommendations as the Secretary and Secretary
of Defense determine to be appropriate.
SEC. 264. ENERGY MANAGEMENT REQUIREMENTS FOR FEDERAL
BUILDINGS.
Section 543(a)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(a)(1)) is amended by striking the
table and inserting the following:
``Fiscal Year Percentage reduction
2006...............................................................2
2007...............................................................4
2008...............................................................9
2009..............................................................12
2010..............................................................15
2011..............................................................18
2012..............................................................21
2013..............................................................24
2014..............................................................27
2015...........................................................30.''.
SEC. 265. COMBINED HEAT AND POWER AND DISTRICT ENERGY
INSTALLATIONS AT FEDERAL SITES.
Section 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253) is amended by adding at the end the
following:
``(f) Combined Heat and Power and District Energy
Installations at Federal Sites.--
``(1) In general.--Not later than 18 months after the date
of enactment of this subsection, the Secretary, in
consultation with the Administrator of General Services and
the Secretary of Defense, shall identify Federal sites that
could achieve significant cost-effective energy savings
through the use of combined heat and power or district energy
installations.
``(2) Information and technical assistance.--The Secretary
shall provide agencies with information and technical
assistance that will enable the agencies to take advantage of
the energy savings described in paragraph (1).
``(3) Energy performance requirements.--Any energy savings
from the installations described in paragraph (1) may be
applied to meet the energy performance requirements for an
agency under subsection (a)(1).''.
SEC. 266. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE
STANDARDS.
Section 305(a)(3)(A) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(A)) is amended--
(1) in the matter preceding clause (i), by striking ``this
paragraph'' and by inserting ``the Energy Efficiency
Promotion Act of 2007''; and
(2) in clause (i)--
(A) in subclause (I), by striking ``and'' at the end;
(B) by redesignating subclause (II) as subclause (III); and
(C) by inserting after subclause (I) the following:
``(II) the buildings be designed, to the extent
economically feasible and technically practicable, so that
the fossil fuel-generated energy consumption of the buildings
is reduced, as compared with the fossil fuel-generated energy
consumption by a similar Federal building in fiscal year 2003
(as measured by Commercial Buildings Energy Consumption
Survey or Residential Energy Consumption Survey data from the
Energy Information Agency), by the percentage specified in
the following table:
``Fiscal Year Percentage reduction
2007..............................................................50
2010..............................................................60
2015..............................................................70
2020..............................................................80
2025..............................................................90
2030.............................................................100;
and''.
SEC. 267. APPLICATION OF INTERNATIONAL ENERGY CONSERVATION
CODE TO PUBLIC AND ASSISTED HOUSING.
Section 109 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12709) is amended--
(1) in subsection (a)(1)(C), by striking, ``, where such
standards are determined to be cost effective by the
Secretary of Housing and Urban Development'';
(2) in subsection (a)(2)--
(A) by striking ``the Council of American Building
Officials Model Energy Code, 1992'' and inserting ``2006
International Energy Conservation Code''; and
(B) by striking ``, and, with respect to rehabilitation and
new construction of public and assisted housing funded by
HOPE VI revitalization grants under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'';
(3) in subsection (b)--
(A) in the heading, by striking ``Model Energy Code.--''
and inserting ``International Energy Conservation Code.--'';
(B) after ``all new construction'' in the first sentence
insert ``and rehabilitation''; and
(C) by striking ``, and, with respect to rehabilitation and
new construction of public and assisted housing funded by
HOPE VI revitalization grants under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'';
(4) in subsection (c)--
(A) in the heading, by striking ``Model Energy Code and'';
and
(B) by striking ``, or, with respect to rehabilitation and
new construction of public and assisted housing funded by
HOPE VI revitalization grants under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'';
(5) by adding at the end the following:
``(d) Failure To Amend the Standards.--If the Secretaries
have not, within 1 year after the requirements of the 2006
IECC or the ASHRAE Standard 90.1-2004 are revised, amended
the standards or made a determination under subsection (c) of
this section, the Secretary of Housing and Urban Development
or the Secretary of Agriculture make a determination that the
revised codes do not negatively affect the availability or
affordability of new construction of assisted housing and
single family and multifamily residential housing (other than
manufactured homes) subject to mortgages insured under the
National Housing Act (12 U.S.C. 1701 et seq.) or insured,
guaranteed, or made by the Secretary of Agriculture under
title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.),
respectively, and the Secretary of Energy has made a
determination under section 304 of the Energy Conservation
and Production Act (42 U.S.C. 6833) that the revised code or
standard would improve energy efficiency, all new
construction and rehabilitation of housing specified in
subsection (a) shall meet the requirements of the revised
code or standard.'';
(6) by striking ``CABO Model Energy Code, 1992'' each place
it appears and inserting ``the 2006 IECC''; and
(7) by striking ``1989'' each place it appears and
inserting ``2004''.
SEC. 268. ENERGY EFFICIENT COMMERCIAL BUILDINGS INITIATIVE.
(a) Definitions.--In this section:
(1) Consortium.--The term ``consortium'' means a working
group that is comprised of--
(A) individuals representing--
(i) 1 or more businesses engaged in--
(I) commercial building development;
(II) construction; or
(III) real estate;
(ii) financial institutions;
(iii) academic or research institutions;
(iv) State or utility energy efficiency programs;
(v) nongovernmental energy efficiency organizations; and
(vi) the Federal Government;
(B) 1 or more building designers; and
(C) 1 or more individuals who own or operate 1 or more
buildings.
(2) Energy efficient commercial building.--The term
``energy efficient commercial building'' means a commercial
building that is designed, constructed, and operated--
(A) to require a greatly reduced quantity of energy;
(B) to meet, on an annual basis, the balance of energy
needs of the commercial building from renewable sources of
energy; and
(C) to be economically viable.
(3) Initiative.--The term ``initiative'' means the Energy
Efficient Commercial Buildings Initiative.
(b) Initiative.--
(1) In general.--The Secretary shall enter into an
agreement with the consortium to develop and carry out the
initiative--
(A) to reduce the quantity of energy consumed by commercial
buildings located in the United States; and
(B) to achieve the development of energy efficient
commercial buildings in the United States.
(2) Goal of initiative.--The goal of the initiative shall
be to develop technologies and practices and implement
policies that lead to energy efficient commercial buildings
for--
(A) any commercial building newly constructed in the United
States by 2030;
(B) 50 percent of the commercial building stock of the
United States by 2040; and
(C) all commercial buildings in the United States by 2050.
(3) Components.--In carrying out the initiative, the
Secretary, in collaboration with the consortium, may--
(A) conduct research and development on building design,
materials, equipment and controls, operation and other
practices, integration,
[[Page H14292]]
energy use measurement and benchmarking, and policies;
(B) conduct demonstration projects to evaluate replicable
approaches to achieving energy efficient commercial buildings
for a variety of building types in a variety of climate
zones;
(C) conduct deployment activities to disseminate
information on, and encourage widespread adoption of,
technologies, practices, and policies to achieve energy
efficient commercial buildings; and
(D) conduct any other activity necessary to achieve any
goal of the initiative, as determined by the Secretary, in
collaboration with the consortium.
(c) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated
such sums as are necessary to carry out this section.
(2) Additional funding.--In addition to amounts authorized
to be appropriated under paragraph (1), the Secretary may
allocate funds from other appropriations to the initiative
without changing the purpose for which the funds are
appropriated.
SEC. 269. CLEAN ENERGY CORRIDORS.
Section 216 of the Federal Power Act (16 U.S.C. 824p) is
amended--
(1) in subsection (a)--
(A) by striking ``(1) Not later than'' and inserting the
following:
``(1) In general.--Not later than'';
(B) by striking paragraph (2) and inserting the following:
``(2) Report and designations.--
``(A) In general.--After considering alternatives and
recommendations from interested parties (including an
opportunity for comment from affected States), the Secretary
shall issue a report, based on the study conducted under
paragraph (1), in which the Secretary may designate as a
national interest electric transmission corridor any
geographic area experiencing electric energy transmission
capacity constraints or congestion that adversely affects
consumers, including constraints or congestion that--
``(i) increases costs to consumers;
``(ii) limits resource options to serve load growth; or
``(iii) limits access to sources of clean energy, such as
wind, solar energy, geothermal energy, and biomass.
``(B) Additional designations.--In addition to the corridor
designations made under subparagraph (A), the Secretary may
designate additional corridors in accordance with that
subparagraph upon the application by an interested person, on
the condition that the Secretary provides for an opportunity
for notice and comment by interested persons and affected
States on the application.'';
(C) in paragraph (3), the striking ``(3) The Secretary''
and inserting the following:
``(3) Consultation.--The Secretary''; and
(D) in paragraph (4)--
(i) by striking ``(4) In determining'' and inserting the
following:
``(4) Basis for determination.--In determining''; and
(ii) by striking subparagraphs (A) through (E) and
inserting the following:
``(A) the economic vitality and development of the
corridor, or the end markets served by the corridor, may be
constrained by lack of adequate or reasonably priced
electricity;
``(B)(i) economic growth in the corridor, or the end
markets served by the corridor, may be jeopardized by
reliance on limited sources of energy; and
``(ii) a diversification of supply is warranted;
``(C) the energy independence of the United States would be
served by the designation;
``(D) the designation would be in the interest of national
energy policy; and
``(E) the designation would enhance national defense and
homeland security.''; and
(2) by adding at the end the following:
``(l) Rates and Recovery of Costs.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, the Commission shall promulgate
regulations providing for the allocation and recovery of
costs prudently incurred by public utilities in building and
operating facilities authorized under this section for
transmission of electric energy generated from clean sources
(such as wind, solar energy, geothermal energy, and biomass).
``(2) Applicable provisions.--All rates approved under the
regulations promulgated under paragraph (1), including any
revisions to the regulations, shall be subject to the
requirements under sections 205 and 206 that all rates,
charges, terms, and conditions be just and reasonable and not
unduly discriminatory or preferential.''.
SEC. 270. FEDERAL STANDBY POWER STANDARD.
(a) Definitions.--In this section:
(1) Agency.--
(A) In general.--The term ``Agency'' has the meaning given
the term ``Executive agency'' in section 105 of title 5,
United States Code.
(B) Inclusions.--The term ``Agency'' includes military
departments, as the term is defined in section 102 of title
5, United States Code.
(2) Eligible product.--The term ``eligible product'' means
a commercially available, off-the-shelf product that--
(A)(i) uses external standby power devices; or
(ii) contains an internal standby power function; and
(B) is included on the list compiled under subsection (d).
(b) Federal Purchasing Requirement.--Subject to subsection
(c), if an Agency purchases an eligible product, the Agency
shall purchase--
(1) an eligible product that uses not more than 1 watt in
the standby power consuming mode of the eligible product; or
(2) if an eligible product described in paragraph (1) is
not available, the eligible product with the lowest available
standby power wattage in the standby power consuming mode of
the eligible product.
(c) Limitation.--The requirements of subsection (b) shall
apply to a purchase by an Agency only if--
(1) the lower-wattage eligible product is--
(A) lifecycle cost-effective; and
(B) practicable; and
(2) the utility and performance of the eligible product is
not compromised by the lower wattage requirement.
(d) Eligible Products.--The Secretary of Energy, in
consultation with the Secretary of Defense, the Administrator
of the Environmental Protection Agency, and the Administrator
of General Services, shall compile a publicly accessible list
of cost-effective eligible products that shall be subject to
the purchasing requirements of subsection (b).
SEC. 270A. STANDARD RELATING TO SOLAR HOT WATER HEATERS.
Section 305(a)(3)(A) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(A)) (as amended by
section 266) is amended--
(1) in clause (i)(III), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(iii) if life-cycle cost-effective, as compared to other
reasonably available technologies, not less than 30 percent
of the hot water demand for each new or substantially
modified Federal building be met through the installation and
use of solar hot water heaters.''.
SEC. 270B. RENEWABLE ENERGY INNOVATION MANUFACTURING
PARTNERSHIP.
(a) Establishment.--The Secretary shall carry out a
program, to be known as the Renewable Energy Innovation
Manufacturing Partnership Program (referred to in this
section as the ``Program''), to make assistance awards to
eligible entities for use in carrying out research,
development, and demonstration relating to the manufacturing
of renewable energy technologies.
(b) Solicitation.--To carry out the Program, the Secretary
shall annually conduct a competitive solicitation for
assistance awards for an eligible project described in
subsection (e).
(c) Program Purposes.--The purposes of the Program are--
(1) to develop, or aid in the development of, advanced
manufacturing processes, materials, and infrastructure;
(2) to increase the domestic production of renewable energy
technology and components; and
(3) to better coordinate Federal, State, and private
resources to meet regional and national renewable energy
goals through advanced manufacturing partnerships.
(d) Eligible Entities.--An entity shall be eligible to
receive an assistance award under the Program to carry out an
eligible project described in subsection (e) if the entity is
composed of--
(1) 1 or more public or private nonprofit institutions or
national laboratories engaged in research, development,
demonstration, or technology transfer, that would participate
substantially in the project; and
(2) 1 or more private entities engaged in the manufacturing
or development of renewable energy system components
(including solar energy, wind energy, biomass, geothermal
energy, energy storage, or fuel cells).
(e) Eligible Projects.--An eligible entity may use an
assistance award provided under this section to carry out a
project relating to--
(1) the conduct of studies of market opportunities for
component manufacturing of renewable energy systems;
(2) the conduct of multiyear applied research, development,
demonstration, and deployment projects for advanced
manufacturing processes, materials, and infrastructure for
renewable energy systems; and
(3) other similar ventures, as approved by the Secretary,
that promote advanced manufacturing of renewable
technologies.
(f) Criteria and Guidelines.--The Secretary shall establish
criteria and guidelines for the submission, evaluation, and
funding of proposed projects under the Program.
(g) Cost Sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a project carried out
under this section.
(h) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) shall apply to a project carried out
under this subsection.
(i) Sense of the Senate.--It is the sense of the Senate
that the Secretary should ensure that small businesses
engaged in renewable manufacturing be considered for loan
guarantees authorized under title XVII of the Energy Policy
Act of 2005 (42 U.S.C. 16511 et seq.).
(j) Authorization of Appropriations.--There is authorized
to be appropriated out of funds already authorized to carry
out this section $25,000,000 for each of fiscal years 2008
through 2013, to remain available until expended.
SEC. 270C. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY
EFFICIENCY.
Section 7(a)(31) of the Small Business Act (15 U.S.C.
636(a)(31)) is amended by adding at the end the following:
``(F) Express loans for renewable energy and energy
efficiency.--
``(i) Definitions.--In this subparagraph--
``(I) the term `biomass'--
``(aa) means any organic material that is available on a
renewable or recurring basis, including--
``(AA) agricultural crops;
``(BB) trees grown for energy production;
``(CC) wood waste and wood residues;
``(DD) plants (including aquatic plants and grasses);
``(EE) residues;
``(FF) fibers;
``(GG) animal wastes and other waste materials; and
``(HH) fats, oils, and greases (including recycled fats,
oils, and greases); and
``(bb) does not include--
``(AA) paper that is commonly recycled; or
``(BB) unsegregated solid waste;
``(II) the term `energy efficiency project' means the
installation or upgrading of equipment that results in a
significant reduction in energy usage; and
[[Page H14293]]
``(III) the term `renewable energy system' means a system
of energy derived from--
``(aa) a wind, solar, biomass (including biodiesel), or
geothermal source; or
``(bb) hydrogen derived from biomass or water using an
energy source described in item (aa).
``(ii) Loans.--Loans may be made under the `Express Loan
Program' for the purpose of--
``(I) purchasing a renewable energy system; or
``(II) an energy efficiency project for an existing
business.''.
SEC. 270D. SMALL BUSINESS ENERGY EFFICIENCY.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``association'' means the association of small
business development centers established under section
21(a)(3)(A) of the Small Business Act (15 U.S.C.
648(a)(3)(A));
(3) the term ``disability'' has the meaning given that term
in section 3 of the Americans with Disabilities Act of 1990
(42 U.S.C. 12102);
(4) the term ``electric utility'' has the meaning given
that term in section 3 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2602);
(5) the term ``on-bill financing'' means a low interest or
no interest financing agreement between a small business
concern and an electric utility for the purchase or
installation of equipment, under which the regularly
scheduled payment of that small business concern to that
electric utility is not reduced by the amount of the
reduction in cost attributable to the new equipment and that
amount is credited to the electric utility, until the cost of
the purchase or installation is repaid;
(6) the term ``small business concern'' has the meaning
given that term in section 3 of the Small Business Act (15
U.S.C. 636);
(7) the term ``small business development center'' means a
small business development center described in section 21 of
the Small Business Act (15 U.S.C. 648);
(8) the term ``telecommuting'' means the use of
telecommunications to perform work functions under
circumstances which reduce or eliminate the need to commute;
and
(9) the term ``veteran'' has the meaning given that term in
section 101 of title 38, United States Code.
(b) Implementation of Small Business Energy Efficiency
Program.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall promulgate
final rules establishing the Government-wide program
authorized under subsection (d) of section 337 of the Energy
Policy and Conservation Act (42 U.S.C. 6307) that ensure
compliance with that subsection by not later than 6 months
after such date of enactment.
(2) Plan.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall publish a
detailed plan regarding how the Administrator will--
(A) assist small business concerns in becoming more energy
efficient; and
(B) build on the Energy Star for Small Business Program of
the Department of Energy and the Environmental Protection
Agency.
(3) Assistant administrator for small business energy
policy.--
(A) In general.--There is in the Administration an
Assistant Administrator for Small Business Energy Policy, who
shall be appointed by, and report to, the Administrator.
(B) Duties.--The Assistant Administrator for Small Business
Energy Policy shall--
(i) oversee and administer the requirements under this
subsection and section 337(d) of the Energy Policy and
Conservation Act (42 U.S.C. 6307(d)); and
(ii) promote energy efficiency efforts for small business
concerns and reduce energy costs of small business concerns.
(4) Reports.--The Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives an annual report on the progress of the
Administrator in encouraging small business concerns to
become more energy efficient, including data on the rate of
use of the Small Business Energy Clearinghouse established
under section 337(d)(4) of the Energy Policy and Conservation
Act (42 U.S.C. 6307(d)(4)).
(c) Small Business Energy Efficiency.--
(1) Authority.--The Administrator shall establish a Small
Business Energy Efficiency Pilot Program (in this subsection
referred to as the ``Efficiency Pilot Program'') to provide
energy efficiency assistance to small business concerns
through small business development centers.
(2) Small business development centers.--
(A) In general.--In carrying out the Efficiency Pilot
Program, the Administrator shall enter into agreements with
small business development centers under which such centers
shall--
(i) provide access to information and resources on energy
efficiency practices, including on-bill financing options;
(ii) conduct training and educational activities;
(iii) offer confidential, free, one-on-one, in-depth energy
audits to the owners and operators of small business concerns
regarding energy efficiency practices;
(iv) give referrals to certified professionals and other
providers of energy efficiency assistance who meet such
standards for educational, technical, and professional
competency as the Administrator shall establish; and
(v) act as a facilitator between small business concerns,
electric utilities, lenders, and the Administration to
facilitate on-bill financing arrangements.
(B) Reports.--Each small business development center
participating in the Efficiency Pilot Program shall submit to
the Administrator and the Administrator of the Environmental
Protection Agency an annual report that includes--
(i) a summary of the energy efficiency assistance provided
by that center under the Efficiency Pilot Program;
(ii) the number of small business concerns assisted by that
center under the Efficiency Pilot Program;
(iii) statistics on the total amount of energy saved as a
result of assistance provided by that center under the
Efficiency Pilot Program; and
(iv) any additional information determined necessary by the
Administrator, in consultation with the association.
(C) Reports to congress.--Not later than 60 days after the
date on which all reports under subparagraph (B) relating to
a year are submitted, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives a report summarizing the information
regarding the Efficiency Pilot Program submitted by small
business development centers participating in that program.
(3) Eligibility.--A small business development center shall
be eligible to participate in the Efficiency Pilot Program
only if that center is certified under section 21(k)(2) of
the Small Business Act (15 U.S.C. 648(k)(2)).
(4) Selection of participating state programs.--
(A) Groupings.--
(i) Selection of programs.--The Administrator shall select
the small business development center programs of 2 States
from each of the groupings of States described in clauses
(ii) through (xi) to participate in the pilot program
established under this subsection.
(ii) Group 1.--Group 1 shall consist of Maine,
Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode
Island.
(iii) Group 2.--Group 2 shall consist of New York, New
Jersey, Puerto Rico, and the Virgin Islands.
(iv) Group 3.--Group 3 shall consist of Pennsylvania,
Maryland, West Virginia, Virginia, the District of Columbia,
and Delaware.
(v) Group 4.--Group 4 shall consist of Georgia, Alabama,
North Carolina, South Carolina, Mississippi, Florida,
Kentucky, and Tennessee.
(vi) Group 5.--Group 5 shall consist of Illinois, Ohio,
Michigan, Indiana, Wisconsin, and Minnesota.
(vii) Group 6.--Group 6 shall consist of Texas, New Mexico,
Arkansas, Oklahoma, and Louisiana.
(viii) Group 7.--Group 7 shall consist of Missouri, Iowa,
Nebraska, and Kansas.
(ix) Group 8.--Group 8 shall consist of Colorado, Wyoming,
North Dakota, South Dakota, Montana, and Utah.
(x) Group 9.--Group 9 shall consist of California, Guam,
American Samoa, Hawaii, Nevada, and Arizona.
(xi) Group 10.--Group 10 shall consist of Washington,
Alaska, Idaho, and Oregon.
(5) Matching requirement.--Subparagraphs (A) and (B) of
section 21(a)(4) of the Small Business Act (15 U.S.C.
648(a)(4)) shall apply to assistance made available under the
Efficiency Pilot Program.
(6) Grant amounts.--Each small business development center
selected to participate in the Efficiency Pilot Program under
paragraph (4) shall be eligible to receive a grant in an
amount equal to--
(A) not less than $100,000 in each fiscal year; and
(B) not more than $300,000 in each fiscal year.
(7) Evaluation and report.--The Comptroller General of the
United States shall--
(A) not later than 30 months after the date of disbursement
of the first grant under the Efficiency Pilot Program,
initiate an evaluation of that pilot program; and
(B) not later than 6 months after the date of the
initiation of the evaluation under subparagraph (A), submit
to the Administrator, the Committee on Small Business and
Entrepreneurship of the Senate, and the Committee on Small
Business of the House of Representatives, a report
containing--
(i) the results of the evaluation; and
(ii) any recommendations regarding whether the Efficiency
Pilot Program, with or without modification, should be
extended to include the participation of all small business
development centers.
(8) Guarantee.--The Administrator may guarantee the timely
payment of a loan made to a small business concern through an
on-bill financing agreement on such terms and conditions as
the Administrator shall establish through a formal rule
making, after providing notice and an opportunity for
comment.
(9) Authorization of appropriations.--
(A) In general.--There are authorized to be appropriated
from such sums as are already authorized under section 21 of
the Small Business Act to carry out this subsection--
(i) $5,000,000 for the first fiscal year beginning after
the date of enactment of this Act; and
(ii) $5,000,000 for each of the 3 fiscal years following
the fiscal year described in clause (i).
(B) Limitation on use of other funds.--The Administrator
may carry out the Efficiency Pilot Program only with amounts
appropriated in advance specifically to carry out this
subsection.
(10) Termination.--The authority under this subsection
shall terminate 4 years after the date of disbursement of the
first grant under the Efficiency Pilot Program.
(d) Small Business Telecommuting.--
(1) Pilot program.--
(A) In general.--In accordance with this subsection, the
Administrator shall conduct, in not more than 5 of the
regions of the Administration, a pilot program to provide
information regarding telecommuting to employers that are
small business concerns and to encourage such employers to
offer telecommuting options to employees (in this subsection
referred to as the ``Telecommuting Pilot Program'').
[[Page H14294]]
(B) Special outreach to individuals with disabilities.--In
carrying out the Telecommuting Pilot Program, the
Administrator shall make a concerted effort to provide
information to--
(i) small business concerns owned by or employing
individuals with disabilities, particularly veterans who are
individuals with disabilities;
(ii) Federal, State, and local agencies having knowledge
and expertise in assisting individuals with disabilities,
including veterans who are individuals with disabilities; and
(iii) any group or organization, the primary purpose of
which is to aid individuals with disabilities or veterans who
are individuals with disabilities.
(C) Permissible activities.--In carrying out the
Telecommuting Pilot Program, the Administrator may--
(i) produce educational materials and conduct presentations
designed to raise awareness in the small business community
of the benefits and the ease of telecommuting;
(ii) conduct outreach--
(I) to small business concerns that are considering
offering telecommuting options; and
(II) as provided in subparagraph (B); and
(iii) acquire telecommuting technologies and equipment to
be used for demonstration purposes.
(D) Selection of regions.--In determining which regions
will participate in the Telecommuting Pilot Program, the
Administrator shall give priority consideration to regions in
which Federal agencies and private-sector employers have
demonstrated a strong regional commitment to telecommuting.
(2) Report to congress.--Not later than 2 years after the
date on which funds are first appropriated to carry out this
subsection, the Administrator shall transmit to the Committee
on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a
report containing the results of an evaluation of the
Telecommuting Pilot Program and any recommendations regarding
whether the pilot program, with or without modification,
should be extended to include the participation of all
regions of the Administration.
(3) Termination.--The Telecommuting Pilot Program shall
terminate 4 years after the date on which funds are first
appropriated to carry out this subsection.
(4) Authorization of appropriations.--There is authorized
to be appropriated to the Administration $5,000,000 to carry
out this subsection.
(e) Encouraging Innovation in Energy Efficiency.--Section 9
of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(z) Encouraging Innovation in Energy Efficiency.--
``(1) Federal agency energy-related priority.--In carrying
out its duties under this section to SBIR and STTR
solicitations by Federal agencies, the Administrator shall--
``(A) ensure that such agencies give high priority to small
business concerns that participate in or conduct energy
efficiency or renewable energy system research and
development projects; and
``(B) include in the annual report to Congress under
subsection (b)(7) a determination of whether the priority
described in subparagraph (A) is being carried out.
``(2) Consultation required.--The Administrator shall
consult with the heads of other Federal agencies and
departments in determining whether priority has been given to
small business concerns that participate in or conduct energy
efficiency or renewable energy system research and
development projects, as required by this section.
``(3) Guidelines.--The Administrator shall, as soon as is
practicable after the date of enactment of this subsection,
issue guidelines and directives to assist Federal agencies in
meeting the requirements of this section.
``(4) Definitions.--In this subsection--
``(A) the term `biomass'--
``(i) means any organic material that is available on a
renewable or recurring basis, including--
``(I) agricultural crops;
``(II) trees grown for energy production;
``(III) wood waste and wood residues;
``(IV) plants (including aquatic plants and grasses);
``(V) residues;
``(VI) fibers;
``(VII) animal wastes and other waste materials; and
``(VIII) fats, oils, and greases (including recycled fats,
oils, and greases); and
``(ii) does not include--
``(I) paper that is commonly recycled; or
``(II) unsegregated solid waste;
``(B) the term `energy efficiency project' means the
installation or upgrading of equipment that results in a
significant reduction in energy usage; and
``(C) the term `renewable energy system' means a system of
energy derived from--
``(i) a wind, solar, biomass (including biodiesel), or
geothermal source; or
``(ii) hydrogen derived from biomass or water using an
energy source described in clause (i).''.
Subtitle F--Assisting State and Local Governments in Energy Efficiency
SEC. 271. WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS.
Section 422 of the Energy Conservation and Production Act
(42 U.S.C. 6872) is amended by striking ``$700,000,000 for
fiscal year 2008'' and inserting ``$750,000,000 for each of
fiscal years 2008 through 2012''.
SEC. 272. STATE ENERGY CONSERVATION PLANS.
Section 365(f) of the Energy Policy and Conservation Act
(42 U.S.C. 6325(f)) is amended by striking ``fiscal year
2008'' and inserting ``each of fiscal years 2008 through
2012''.
SEC. 273. UTILITY ENERGY EFFICIENCY PROGRAMS.
(a) Electric Utilities.--Section 111(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))
is amended by adding at the end the following:
``(16) Integrated resource planning.--Each electric utility
shall--
``(A) integrate energy efficiency resources into utility,
State, and regional plans; and
``(B) adopt policies establishing cost-effective energy
efficiency as a priority resource.
``(17) Rate design modifications to promote energy
efficiency investments.--
``(A) In general.--The rates allowed to be charged by any
electric utility shall--
``(i) align utility incentives with the delivery of cost-
effective energy efficiency; and
``(ii) promote energy efficiency investments.
``(B) Policy options.--In complying with subparagraph (A),
each State regulatory authority and each nonregulated utility
shall consider--
``(i) removing the throughput incentive and other
regulatory and management disincentives to energy efficiency;
``(ii) providing utility incentives for the successful
management of energy efficiency programs;
``(iii) including the impact on adoption of energy
efficiency as 1 of the goals of retail rate design,
recognizing that energy efficiency must be balanced with
other objectives;
``(iv) adopting rate designs that encourage energy
efficiency for each customer class; and
``(v) allowing timely recovery of energy efficiency-related
costs.''.
(b) Natural Gas Utilities.--Section 303(b) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 3203(b))
is amended by adding at the end the following:
``(5) Energy efficiency.--Each natural gas utility shall--
``(A) integrate energy efficiency resources into the plans
and planning processes of the natural gas utility; and
``(B) adopt policies that establish energy efficiency as a
priority resource in the plans and planning processes of the
natural gas utility.
``(6) Rate design modifications to promote energy
efficiency investments.--
``(A) In general.--The rates allowed to be charged by a
natural gas utility shall align utility incentives with the
deployment of cost-effective energy efficiency.
``(B) Policy options.--In complying with subparagraph (A),
each State regulatory authority and each nonregulated utility
shall consider--
``(i) separating fixed-cost revenue recovery from the
volume of transportation or sales service provided to the
customer;
``(ii) providing to utilities incentives for the successful
management of energy efficiency programs, such as allowing
utilities to retain a portion of the cost-reducing benefits
accruing from the programs;
``(iii) promoting the impact on adoption of energy
efficiency as 1 of the goals of retail rate design,
recognizing that energy efficiency must be balanced with
other objectives; and
``(iv) adopting rate designs that encourage energy
efficiency for each customer class.''.
SEC. 274. ENERGY EFFICIENCY AND DEMAND RESPONSE PROGRAM
ASSISTANCE.
The Secretary shall provide technical assistance regarding
the design and implementation of the energy efficiency and
demand response programs established under this title, and
the amendments made by this title, to State energy offices,
public utility regulatory commissions, and nonregulated
utilities through the appropriate national laboratories of
the Department of Energy.
SEC. 275. ENERGY AND ENVIRONMENTAL BLOCK GRANT.
Title I of the Housing and Community Development Act of
1974 (42 U.S.C. 5301 et seq.) is amended by adding at the end
the following:
``SEC. 123. ENERGY AND ENVIRONMENTAL BLOCK GRANT.
``(a) Definitions.--In this section
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a State;
``(B) an eligible unit of local government within a State;
and
``(C) an Indian tribe.
``(2) Eligible unit of local government.--The term
`eligible unit of local government' means--
``(A) a city with a population--
``(i) of at least 35,000; or
``(ii) that causes the city to be 1 of the top 10 most
populous cities of the State in which the city is located;
and
``(B) a county with a population--
``(i) of at least 200,000; or
``(ii) that causes the county to be 1 of the top 10 most
populous counties of the State in which the county is
located.
``(3) Secretary.--The term `Secretary' means the Secretary
of Energy.
``(4) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of the United
States.
``(b) Purpose.--The purpose of this section is to assist
State, Indian tribal, and local governments in implementing
strategies--
``(1) to reduce fossil fuel emissions created as a result
of activities within the boundaries of the States or units of
local government in an environmentally sustainable way that,
to the maximum extent practicable, maximizes benefits for
local and regional communities;
[[Page H14295]]
``(2) to reduce the total energy use of the States, Indian
tribes, and units of local government; and
``(3) to improve energy efficiency in the transportation
sector, building sector, and any other appropriate sectors.
``(c) Program.--
``(1) In general.--The Secretary shall provide to eligible
entities block grants to carry out eligible activities (as
specified under paragraph (2)) relating to the implementation
of environmentally beneficial energy strategies.
``(2) Eligible activities.--The Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, the Secretary of Transportation, and the Secretary of
Housing and Urban Development, shall establish a list of
activities that are eligible for assistance under the grant
program.
``(3) Allocation to states, indian tribes, and eligible
units of local government.--
``(A) In general.--Of the amounts made available to provide
grants under this subsection, the Secretary shall allocate--
``(i) 68 percent to eligible units of local government;
``(ii) 28 percent to States; and
``(iii) 4 percent to Indian tribes.
``(B) Distribution to eligible units of local government.--
``(i) In general.--The Secretary shall establish a formula
for the distribution of amounts under subparagraph (A)(i) to
eligible units of local government, taking into account any
factors that the Secretary determines to be appropriate,
including the residential and daytime population of the
eligible units of local government.
``(ii) Criteria.--Amounts shall be distributed to eligible
units of local government under clause (i) only if the
eligible units of local government meet the criteria for
distribution established by the Secretary for units of local
government.
``(C) Distribution to states.--
``(i) In general.--Of the amounts provided to States under
subparagraph (A)(ii), the Secretary shall distribute--
``(I) at least 1.25 percent to each State; and
``(II) the remainder among the States, based on a formula,
to be determined by the Secretary, that takes into account
the population of the States and any other criteria that the
Secretary determines to be appropriate.
``(ii) Criteria.--Amounts shall be distributed to States
under clause (i) only if the States meet the criteria for
distribution established by the Secretary for States.
``(iii) Limitation on use of state funds.--At least 40
percent of the amounts distributed to States under this
subparagraph shall be used by the States for the conduct of
eligible activities in nonentitlement areas in the States, in
accordance with any criteria established by the Secretary.
``(D) Distribution to indian tribes.--
``(i) In general.--The Secretary shall establish a formula
for the distribution of amounts under subparagraph (A)(iii)
to eligible Indian tribes, taking into account any factors
that the Secretary determines to be appropriate, including
the residential and daytime population of the eligible Indian
tribes.
``(ii) Criteria.--Amounts shall be distributed to eligible
Indian tribes under clause (i) only if the eligible Indian
tribes meet the criteria for distribution established by the
Secretary for Indian tribes.
``(4) Report.--Not later than 2 years after the date on
which an eligible entity first receives a grant under this
section, and every 2 years thereafter, the eligible entity
shall submit to the Secretary a report that describes any
eligible activities carried out using assistance provided
under this subsection.
``(5) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection for each of fiscal years 2008
through 2012.
``(d) Environmentally Beneficial Energy Strategies
Supplemental Grant Program.--
``(1) In general.--The Secretary shall provide to each
eligible entity that meets the applicable criteria under
subparagraph (B)(ii), (C)(ii), or (D)(ii) of subsection
(c)(3) a supplemental grant to pay the Federal share of the
total costs of carrying out an activity relating to the
implementation of an environmentally beneficial energy
strategy.
``(2) Requirements.--To be eligible for a grant under
paragraph (1), an eligible entity shall--
``(A) demonstrate to the satisfaction of the Secretary that
the eligible entity meets the applicable criteria under
subparagraph (B)(ii), (C)(ii), or (D)(ii) of subsection
(c)(3); and
``(B) submit to the Secretary for approval a plan that
describes the activities to be funded by the grant.
``(3) Cost-sharing requirement.--
``(A) Federal share.--The Federal share of the cost of
carrying out any activities under this subsection shall be 75
percent.
``(B) Non-federal share.--
``(i) Form.--Not more than 50 percent of the non-Federal
share may be in the form of in-kind contributions.
``(ii) Limitation.--Amounts provided to an eligible entity
under subsection (c) shall not be used toward the non-Federal
share.
``(4) Maintenance of effort.--An eligible entity shall
provide assurances to the Secretary that funds provided to
the eligible entity under this subsection will be used only
to supplement, not to supplant, the amount of Federal, State,
tribal, and local funds otherwise expended by the eligible
entity for eligible activities under this subsection.
``(5) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection for each of fiscal years 2008
through 2012.
``(e) Grants to Other States and Communities.--
``(1) In general.--Of the total amount of funds that are
made available each fiscal year to carry out this section,
the Secretary shall use 2 percent of the amount to make
competitive grants under this section to States, Indian
tribes, and units of local government that are not eligible
entities or to consortia of such units of local government.
``(2) Applications.--To be eligible for a grant under this
subsection, a State, Indian tribe, unit of local government,
or consortia described in paragraph (1) shall apply to the
Secretary for a grant to carry out an activity that would
otherwise be eligible for a grant under subsection (c) or
(d).
``(3) Priority.--In awarding grants under this subsection,
the Secretary shall give priority to--
``(A) States with populations of less than 2,000,000; and
``(B) projects that would result in significant energy
efficiency improvements, reductions in fossil fuel use, or
capital improvements.''.
SEC. 276. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS FOR
INSTITUTIONS OF HIGHER EDUCATION.
Part G of title III of the Energy Policy and Conservation
Act is amended by inserting after section 399 (42 U.S.C.
371h) the following:
``SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS FOR
INSTITUTIONS OF HIGHER EDUCATION.
``(a) Definitions.--In this section:
``(1) Energy sustainability.--The term `energy
sustainability' includes using a renewable energy resource
and a highly efficient technology for electricity generation,
transportation, heating, or cooling.
``(2) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 2 of the Energy Policy Act of 2005 (42 U.S.C.
15801).
``(b) Grants for Energy Efficiency Improvement.--
``(1) In general.--The Secretary shall award not more than
100 grants to institutions of higher education to carry out
projects to improve energy efficiency on the grounds and
facilities of the institution of higher education, including
not less than 1 grant to an institution of higher education
in each State.
``(2) Condition.--As a condition of receiving a grant under
this subsection, an institution of higher education shall
agree to--
``(A) implement a public awareness campaign concerning the
project in the community in which the institution of higher
education is located; and
``(B) submit to the Secretary, and make available to the
public, reports on any efficiency improvements, energy cost
savings, and environmental benefits achieved as part of a
project carried out under paragraph (1).
``(c) Grants for Innovation in Energy Sustainability.--
``(1) In general.--The Secretary shall award not more than
250 grants to institutions of higher education to engage in
innovative energy sustainability projects, including not less
than 2 grants to institutions of higher education in each
State.
``(2) Innovation projects.--An innovation project carried
out with a grant under this subsection shall--
``(A) involve--
``(i) an innovative technology that is not yet commercially
available; or
``(ii) available technology in an innovative application
that maximizes energy efficiency and sustainability;
``(B) have the greatest potential for testing or
demonstrating new technologies or processes; and
``(C) ensure active student participation in the project,
including the planning, implementation, evaluation, and other
phases of the project.
``(3) Condition.--As a condition of receiving a grant under
this subsection, an institution of higher education shall
agree to submit to the Secretary, and make available to the
public, reports that describe the results of the projects
carried out under paragraph (1).
``(d) Awarding of Grants.--
``(1) Application.--An institution of higher education that
seeks to receive a grant under this section may submit to the
Secretary an application for the grant at such time, in such
form, and containing such information as the Secretary may
prescribe.
``(2) Selection.--The Secretary shall establish a committee
to assist in the selection of grant recipients under this
section.
``(e) Allocation to Institutions of Higher Education With
Small Endowments.--Of the amount of grants provided for a
fiscal year under this section, the Secretary shall provide
not less 50 percent of the amount to institutions of higher
education that have an endowment of not more than
$100,000,000, with 50 percent of the allocation set aside for
institutions of higher education that have an endowment of
not more than $50,000,000.
``(f) Grant Amounts.--The maximum amount of grants for a
project under this section shall not exceed--
``(1) in the case of grants for energy efficiency
improvement under subsection (b), $1,000,000; or
``(2) in the case of grants for innovation in energy
sustainability under subsection (c), $500,000.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.''.
SEC. 277. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER
TRAINING PROGRAM.
Section 1101 of the Energy Policy Act of 2005 (42 U.S.C.
16411) is amended--
[[Page H14296]]
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c), the following:
``(d) Energy Efficiency and Renewable Energy Worker
Training Program.--
``(1) Purpose.--It is the purpose of this subsection to--
``(A) create a sustainable, comprehensive public program
that provides quality training that is linked to jobs that
are created through renewable energy and energy efficiency
initiatives;
``(B) satisfy industry demand for a skilled workforce, to
support economic growth, to boost America's global
competitiveness in the expanding energy efficiency and
renewable energy industries, and to provide economic self-
sufficiency and family-sustaining jobs for America's workers,
including low wage workers, through quality training and
placement in job opportunities in the growing energy
efficiency and renewable energy industries;
``(C) provide grants for the safety, health, and skills
training and education of workers who are, or may be engaged
in, activities related to the energy efficiency and renewable
energy industries; and
``(D) provide funds for national and State industry-wide
research, labor market information and labor exchange
programs, and the development of nationally and State
administered training programs.
``(2) Grant program.--
``(A) In general.--Not later than 6 months after the date
of enactment of this Act, the Secretary of Labor (referred to
in this subsection as the `Secretary'), in consultation with
the Secretary of Energy, shall establish an energy efficiency
and renewable energy worker training program under which the
Secretary shall carry out the activities described in
paragraph (3) to achieve the purposes of this subsection.
``(B) Eligibility.--For purposes of providing assistance
and services under the program established under this
subsection--
``(i) target populations of individuals eligible for
training and other services shall include, but not be limited
to--
``(I) veterans, or past and present members of the reserve
components of the Armed Forces;
``(II) workers affected by national energy and
environmental policy;
``(III) workers displaced by the impacts of economic
globalization;
``(IV) individuals, including at-risk youth, seeking
employment pathways out of poverty and into economic self-
sufficiency;
``(V) formerly incarcerated, adjudicated, non-violent
offenders; and
``(VI) individuals in need of updated training related to
the energy efficiency and renewable energy industries; and
``(ii) energy efficiency and renewable energy industries
eligible for such assistance and services shall include--
``(I) the energy-efficient building, construction, and
retrofits industries;
``(II) the renewable electric power industry;
``(III) the energy efficient and advanced drive train
vehicle industry;
``(IV) the bio-fuels industry; and
``(V) the deconstruction and materials use industries.
``(3) Activities.--
``(A) National research program.--Under the program
established under paragraph (2), the Secretary, acting
through the Bureau of Labor Statistics, shall provide
assistance to support national research to develop labor
market data and to track future workforce trends resulting
from energy-related initiatives carried out under this
section. Activities carried out under this paragraph shall
include--
``(i) linking research and development in renewable energy
and energy efficiency technology with the development of
standards and curricula for current and future jobs;
``(ii) the tracking and documentation of academic and
occupational competencies as well as future skill needs with
respect to renewable energy and energy efficiency technology;
``(iii) tracking and documentation of occupational
information and workforce training data with respect to
renewable energy and energy efficiency technology;
``(iv) assessing new employment and work practices
including career ladder and upgrade training as well as high
performance work systems; and
``(v) collaborating with State agencies, industry,
organized labor, and community and nonprofit organizations to
disseminate successful innovations for labor market services
and worker training with respect to renewable energy and
energy efficiency technology.
``(B) National energy training partnership grants.--
``(i) In general.--Under the program established under
paragraph (2), the Secretary shall award National Energy
Training Partnerships Grants on a competitive basis to
eligible entities to enable such entities to carry out
national training that leads to economic self-sufficiency and
to develop an energy efficiency and renewable energy
industries workforce. Grants shall be awarded under this
subparagraph so as to ensure geographic diversity with at
least 2 grants awarded to entities located in each of the 4
Petroleum Administration for Defense Districts with no
subdistricts and at least 1 grant awarded to an entity
located in each of the subdistricts of the Petroleum
Administration for Defense District with subdistricts.
``(ii) Eligibility.--To be eligible to receive a grant
under clause (i), an entity shall be a non-profit partnership
that--
``(I) includes the equal participation of industry,
including public or private employers, and labor
organizations, including joint labor-management training
programs, and may include community-based organizations,
educational institutions, small businesses, cooperatives,
State and local veterans agencies, and veterans service
organizations; and
``(II) demonstrates--
``(aa) experience in implementing and operating worker
skills training and education programs;
``(bb) the ability to identify and involve in training
programs carried out under this grant, target populations of
workers who are, or will be engaged in, activities related to
energy efficiency and renewable energy industries; and
``(cc) the ability to help workers achieve economic self-
sufficiency.
``(iii) Activities.--Activities to be carried out under a
grant under this subparagraph may include--
``(I) the provision of occupational skills training,
including curriculum development, on-the-job training, and
classroom training;
``(II) the provision of safety and health training;
``(III) the provision of basic skills, literacy, GED,
English as a second language, and job readiness training;
``(IV) individual referral and tuition assistance for a
community college training program;
``(V) the provision of customized training in conjunction
with an existing registered apprenticeship program or labor-
management partnership;
``(VI) the provision of career ladder and upgrade training;
and
``(VII) the implementation of transitional jobs strategies.
``(C) State labor market research, information, and labor
exchange research program.--
``(i) In general.--Under the program established under
paragraph (2), the Secretary shall award competitive grants
to States to enable such States to administer labor market
and labor exchange informational programs that include the
implementation of the activities described in clause (ii).
``(ii) Activities.--A State shall use amounts awarded under
a grant under this subparagraph to provide funding to the
State agency that administers the Wagner-Peyser Act and State
unemployment compensation programs to carry out the following
activities using State agency merit staff:
``(I) The identification of job openings in the renewable
energy and energy efficiency sector.
``(II) The administration of skill and aptitude testing and
assessment for workers.
``(III) The counseling, case management, and referral of
qualified job seekers to openings and training programs,
including energy efficiency and renewable energy training
programs.
``(D) State energy training partnership program.--
``(i) In general.--Under the program established under
paragraph (2), the Secretary shall award competitive grants
to States to enable such States to administer renewable
energy and energy efficiency workforce development programs
that include the implementation of the activities described
in clause (ii).
``(ii) Activities.--
``(I) In general.--A State shall use amounts awarded under
a grant under this subparagraph to award competitive grants
to eligible State Energy Sector Partnerships to enable such
Partnerships to coordinate with existing apprenticeship and
labor management training programs and implement training
programs that lead to the economic self-sufficiency of
trainees.
``(II) Eligibility.--To be eligible to receive a grant
under this subparagraph, a State Energy Sector Partnership
shall--
``(aa) consist of non-profit organizations that include
equal participation from industry, including public or
private nonprofit employers, and labor organizations,
including joint labor-management training programs, and may
include representatives from local governments, worker
investment agency one-stop career centers, community based
organizations, community colleges, other post-secondary
institutions, small businesses, cooperatives, State and local
veterans agencies, and veterans service organizations;
``(bb) demonstrate experience in implementing and operating
worker skills training and education programs; and
``(cc) demonstrate the ability to identify and involve in
training programs, target populations of workers who are, or
will be engaged in, activities related to energy efficiency
and renewable energy industries.
``(iii) Priority.--In awarding grants under this
subparagraph, the Secretary shall give priority to States
that demonstrate linkages of activities under the grant
with--
``(I) meeting national energy policies associated with
energy efficiency, renewable energy, and the reduction of
emissions of greenhouse gases; and
``(II) meeting State energy policies associated with energy
efficiency, renewable energy, and the reduction of emissions
of greenhouse gases.
``(iv) Coordination.--A grantee under this subparagraph
shall coordinate activities carried out under the grant with
existing apprenticeship and labor management training
programs and implement training programs that lead to the
economic self-sufficiency of trainees, including providing--
``(I) outreach and recruitment services, in coordination
with the appropriate State agency;
``(II) occupational skills training, including curriculum
development, on-the-job training, and classroom training;
``(III) safety and health training;
``(IV) basic skills, literacy, GED, English as a second
language, and job readiness training;
``(V) individual referral and tuition assistance for a
community college training program;
``(VI) customized training in conjunction with an existing
registered apprenticeship program or labor-management
partnership;
``(VII) career ladder and upgrade training; and
``(VIII) services under transitional jobs strategies.
[[Page H14297]]
``(4) Worker protections and nondiscrimination
requirements.--
``(A) Application of wia.--The provisions of sections 181
and 188 of the Workforce Investment Act of 1998 (29 U.S.C.
2931 and 2938) shall apply to all programs carried out with
assistance under this subsection.
``(B) Consultation with labor organizations.--If a labor
organization represents a substantial number of workers who
are engaged in similar work or training in an area that is
the same as the area that is proposed to be funded under this
subsection, the labor organization shall be provided an
opportunity to be consulted and to submit comments in regard
to such a proposal.
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection, $100,000,000
for each fiscal year, of which--
``(A) not to exceed 20 percent of the amount appropriated
in each fiscal year shall be made available for, and shall be
equally divided between, national labor market research and
information under paragraph (3)(A) and State labor market
information and labor exchange research under paragraph
(3)(C); and
``(B) the remainder shall be divided equally between
National Energy Partnership Training Grants under paragraph
(3)(B) and State energy training partnership grants under
paragraph (3)(D).
``(6) Definition.--In this subsection, the term `renewable
electric power' has the meaning given the term `renewable
energy' in section 203(b)(2) of the Energy Policy Act of 2005
(Public Law 109-58).''.
SEC. 278. ASSISTANCE TO STATES TO REDUCE SCHOOL BUS IDLING.
(a) Statement of Policy.--Congress encourages each local
educational agency (as defined in section 9101(26) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801(26))) that receives Federal funds under the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
to develop a policy to reduce the incidence of school bus
idling at schools while picking up and unloading students.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary, working in coordination
with the Secretary of Education, $5,000,000 for each of
fiscal years 2007 through 2012 for use in educating States
and local education agencies about--
(1) benefits of reducing school bus idling; and
(2) ways in which school bus idling may be reduced.
SEC. 279. DEFINITION OF STATE.
Section 412 of the Energy Conservation and Production Act
(42 U.S.C. 6862) is amended by striking paragraph (8) and
inserting the following:
``(8) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia; and
``(C) the Commonwealth of Puerto Rico.''.
SEC. 280. COORDINATION OF PLANNED REFINERY OUTAGES.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Energy Information Administration.
(2) Planned refinery outage.--
(A) In general.--The term ``planned refinery outage'' means
a removal, scheduled before the date on which the removal
occurs, of a refinery, or any unit of a refinery, from
service for maintenance, repair, or modification.
(B) Exclusion.--The term ``planned refinery outage'' does
not include any necessary and unplanned removal of a
refinery, or any unit of a refinery, from service as a result
of a component failure, safety hazard, emergency, or action
reasonably anticipated to be necessary to prevent such
events.
(3) Refined petroleum product.--The term ``refined
petroleum product'' means any gasoline, diesel fuel, fuel
oil, lubricating oil, liquid petroleum gas, or other
petroleum distillate that is produced through the refining or
processing of crude oil or an oil derived from tar sands,
shale, or coal.
(4) Refinery.--The term ``refinery'' means a facility used
in the production of a refined petroleum product through
distillation, cracking, or any other process.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Review and Analysis of Available Information.--The
Administrator shall, on an ongoing basis--
(1) review information on planned refinery outages that is
available from commercial reporting services;
(2) analyze that information to determine whether the
scheduling of a planned refinery outage may nationally or
regionally affect the price or supply of any refined
petroleum product by--
(A) decreasing the production of the refined petroleum
product; and
(B) causing or contributing to a retail or wholesale supply
shortage or disruption;
(3) not less frequently than twice each year, submit to the
Secretary a report describing the results of the review and
analysis under paragraphs (1) and (2); and
(4) specifically alert the Secretary of any planned
refinery outage that the Administrator determines may
nationally or regionally affect the price or supply of a
refined petroleum product.
(c) Action by Secretary.--On a determination by the
Secretary, based on a report or alert under paragraph (3) or
(4) of subsection (b), that a planned refinery outage may
affect the price or supply of a refined petroleum product,
the Secretary shall make available to refinery operators
information on planned refinery outages to encourage
reductions of the quantity of refinery capacity that is out
of service at any time.
(d) Limitation.--Nothing in this section shall alter any
existing legal obligation or responsibility of a refinery
operator, or create any legal right of action, nor shall this
section authoirze the Secretary--
(1) to prohibit a refinery operator from conducting a
planned refinery outage; or
(2) to require a refinery operator to continue to operate a
refinery.
SEC. 281. TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE.
Section 402(b)(1)(B)(ii) of the Energy Policy Act of 2005
(42 U.S.C. 15962(b)(1)(B)(ii)) is amended by striking
subclause (I) and inserting the following:
``(I)(aa) to remove at least 99 percent of sulfur dioxide;
or
``(bb) to emit not more than 0.04 pound SO2 per
million Btu, based on a 30-day average;''.
SEC. 282. ADMINISTRATION.
Section 106 of the Alaska Natural Gas Pipeline Act (15
U.S.C. 720d) is amended by adding at the end the following:
``(h) Administration.--
``(1) Personnel appointments.--
``(A) In general.--The Federal Coordinator may appoint and
terminate such personnel as the Federal Coordinator
determines to be appropriate.
``(B) Authority of federal coordinator.--Personnel
appointed by the Federal Coordinator under subparagraph (A)
shall be appointed without regard to the provisions of title
5, United States Code, governing appointments in the
competitive service.
``(2) Compensation.--
``(A) In general.--Subject to subparagraph (B), personnel
appointed by the Federal Coordinator under paragraph (1)(A)
shall be paid without regard to the provisions of chapter 51
and subchapter III of chapter 53 of title 5, United States
Code (relating to classification and General Schedule pay
rates).
``(B) Maximum level of compensation.--The rate of pay for
personnel appointed by the Federal Coordinator under
paragraph (1)(A) shall not exceed the maximum level of rate
payable for level III of the Executive Schedule.
``(C) Applicability of section 5941.--Section 5941 of title
5, United States Code, shall apply to personnel appointed by
the Federal Coordinator under paragraph (1)(A).
``(3) Temporary services.--
``(A) In general.--The Federal Coordinator may procure
temporary and intermittent services in accordance with
section 3109(b) of title 5, United States Code.
``(B) Maximum level of compensation.--The level of
compensation of an individual employed on a temporary or
intermittent basis under subparagraph (A) shall not exceed
the maximum level of rate payable for level III of the
Executive Schedule.
``(4) Fees, charges, and commissions.--
``(A) In general.--The Federal Coordinator shall have the
authority to establish, change, and abolish reasonable filing
and service fees, charges, and commissions, require deposits
of payments, and provide refunds as provided to the Secretary
of the Interior in section 304 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1734), except that the
authority shall be with respect to the duties of the Federal
Coordinator, as delineated in the Alaska Natural Gas Pipeline
Act (15 U.S.C. 720 et seq.), as amended.
``(B) Authority of secretary of the interior.--Subparagraph
(A) shall not affect the authority of the Secretary of the
Interior to establish, change, and abolish reasonable filing
and service fees, charges, and commissions, require deposits
of payments, and provide refunds under section 304 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C.
1734).
``(C) Use of funds.--The Federal Coordinator is authorized
to use, without further appropriation, amounts collected
under subparagraph (A) to carry out this section.''.
SEC. 283. OFFSHORE RENEWABLE ENERGY.
(a) Leases, Easements, or Rights-of-Way for Energy and
Related Purposes.--Section 8(p) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(p)) is amended--
(1) by inserting after ``Secretary of the Department in
which the Coast Guard is operating'' the following: ``, the
Secretary of Commerce,'';
(2) by striking paragraph (3) and inserting the following:
``(3) Competitive or noncompetitive basis.--Any lease,
easement, or right-of-way under paragraph (1) shall be issued
on a competitive basis, unless--
``(A) the lease, easement, or right-of-way relates to a
project that meets the criteria established under section
388(d) of the Energy Policy Act of 2005 (43 U.S.C. 1337 note;
Public Law 109-58);
``(B) the lease, easement, or right-of-way--
``(i) is for the placement and operation of a
meteorological or marine data collection facility; and
``(ii) has a term of not more than 5 years; or
``(C) the Secretary determines, after providing public
notice of a proposed lease, easement, or right-of-way, that
no competitive interest exists.''; and
(3) by adding at the end the following:
``(11) Clarification.--
``(A) In general.--Subject to subparagraph (B), the Federal
Energy Regulatory Commission shall not have authority to
approve or license a wave or current energy project on the
outer Continental Shelf under part I of the Federal Power Act
(16 U.S.C. 792 et seq.)
``(B) Transmission of power.--Subparagraph (A) shall not
affect any authority of the
[[Page H14298]]
Commission with respect to the transmission of power
generated from a project described in subparagraph (A).''.
(b) Consideration of Certain Requests for Authorization.--
In considering a request for authorization of a project
pending before the Commission on the outer Continental Shelf
as of the date of enactment of this Act, the Secretary of the
Interior shall rely, to the maximum extent practicable, on
the materials submitted to the Commission before that date.
(c) Savings Provision.--Nothing in this section or an
amendment made by this section requires the resubmission of
any document that was previously submitted, or the
reauthorization of any action that was previously authorized,
with respect to a project on the outer Continental Shelf, for
which a preliminary permit was issued by the Commission
before the date of enactment of this Act.
Subtitle G--Marine and Hydrokinetic Renewable Energy Promotion
SEC. 291. DEFINITION OF MARINE AND HYDROKINETIC RENEWABLE
ENERGY.
(a) In General.--In this subtitle, the term ``marine and
hydrokinetic renewable energy'' means electrical energy
from--
(1) waves, tides, and currents in oceans, estuaries, and
tidal areas;
(2) free flowing water in rivers, lakes, and streams;
(3) free flowing water in man-made channels, including
projects that utilize nonmechanical structures to accelerate
the flow of water for electric power production purposes; and
(4) differentials in ocean temperature (ocean thermal
energy conversion).
(b) Exclusion.--Except as provided in subsection (a)(3),
the term ``marine and hydrokinetic renewable energy'' does
not include energy from any source that uses a dam,
diversionary structure, or impoundment for electric power
purposes.
SEC. 292. RESEARCH AND DEVELOPMENT.
(a) Program.--The Secretary, in consultation with the
Secretary of Commerce and the Secretary of the Interior,
shall establish a program of marine and hydrokinetic
renewable energy research, including--
(1) developing and demonstrating marine and hydrokinetic
renewable energy technologies;
(2) reducing the manufacturing and operation costs of
marine and hydrokinetic renewable energy technologies;
(3) increasing the reliability and survivability of marine
and hydrokinetic renewable energy facilities;
(4) integrating marine and hydrokinetic renewable energy
into electric grids;
(5) identifying opportunities for cross fertilization and
development of economies of scale between offshore wind and
marine and hydrokinetic renewable energy sources;
(6) identifying, in conjunction with the Secretary of
Commerce and the Secretary of the Interior, the potential
environmental impacts of marine and hydrokinetic renewable
energy technologies and measures to minimize or prevent
adverse impacts, and technologies and other means available
for monitoring and determining environmental impacts;
(7) identifying, in conjunction with the Commandant of the
United States Coast Guard, the potential navigational impacts
of marine and hydrokinetic renewable energy technologies and
measures to minimize or prevent adverse impacts;
(8) standards development, demonstration, and technology
transfer for advanced systems engineering and system
integration methods to identify critical interfaces; and
(9) providing public information and opportunity for public
comment concerning all technologies.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the Secretary, in consultation with
the Secretary of Commerce and the Secretary of the Interior,
shall provide to the appropriate committees of Congress a
report that addresses--
(1) the potential environmental impacts of hydrokinetic
renewable energy technologies in free-flowing water in
rivers, lakes, and streams;
(2) the means by which to minimize or prevent any adverse
environmental impacts;
(3) the potential role of monitoring and adaptive
management in addressing any adverse environmental impacts;
and
(4) the necessary components of such an adaptive management
program.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$50,000,000 for each of the fiscal years 2008 through 2017.
SEC. 293. NATIONAL OCEAN ENERGY RESEARCH CENTERS.
(a) In General.--Subject to the availability of
appropriations under subsection (e), the Secretary shall
establish not less than 1, and not more than 6, national
ocean energy research centers at institutions of higher
education for the purpose of conducting research,
development, demonstration, and testing of ocean energy
technologies and associated equipment.
(b) Evaluations.--Each Center shall (in consultation with
developers, utilities, and manufacturers) conduct evaluations
of technologies and equipment described in subsection (a).
(c) Location.--In establishing centers under this section,
the Secretary shall locate the centers in coastal regions of
the United State in a manner that, to the maximum extent
practicable, is geographically dispersed.
(d) Coordination.--Prior to carrying out any activity under
this section in waters subject to the jurisdiction of the
United States, the Secretary shall identify, in conjunction
with the Secretary of Commerce and the Secretary of Interior,
the potential environmental impacts of such activity and
measures to minimize or prevent adverse impacts.
(e) Authorization of Appropriations.--There are authorized
to be appropriate such sums as are necessary to carry out
this section.
TITLE III--CARBON CAPTURE AND STORAGE RESEARCH, DEVELOPMENT, AND
DEMONSTRATION
SEC. 301. SHORT TITLE.
This title may be cited as the ``Carbon Capture and
Sequestration Act of 2007''.
SEC. 302. CARBON CAPTURE AND STORAGE RESEARCH, DEVELOPMENT,
AND DEMONSTRATION PROGRAM.
Section 963 of the Energy Policy Act of 2005 (42 U.S.C.
16293) is amended--
(1) in the section heading, by striking ``RESEARCH AND
DEVELOPMENT'' and inserting ``AND STORAGE RESEARCH,
DEVELOPMENT, AND DEMONSTRATION'';
(2) in subsection (a)--
(A) by striking ``research and development'' and inserting
``and storage research, development, and demonstration''; and
(B) by striking ``capture technologies on combustion-based
systems'' and inserting ``capture and storage technologies
related to energy systems'';
(3) in subsection (b)--
(A) in paragraph (3), by striking ``and'' at the end;
(B) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) to expedite and carry out large-scale testing of
carbon sequestration systems in a range of geological
formations that will provide information on the cost and
feasibility of deployment of sequestration technologies.'';
and
(4) by striking subsection (c) and inserting the following:
``(c) Programmatic Activities.--
``(1) Energy research and development underlying carbon
capture and storage technologies and carbon use activities.--
``(A) In general.--The Secretary shall carry out
fundamental science and engineering research (including
laboratory-scale experiments, numeric modeling, and
simulations) to develop and document the performance of new
approaches to capture and store, recycle, or reuse carbon
dioxide.
``(B) Program integration.--The Secretary shall ensure that
fundamental research carried out under this paragraph is
appropriately applied to energy technology development
activities, the field testing of carbon sequestration, and
carbon use activities, including--
``(i) development of new or improved technologies for the
capture and storage of carbon dioxide;
``(ii) development of new or improved technologies that
reduce the cost and increase the efficacy of advanced
compression of carbon dioxide required for the storage of
carbon dioxide;
``(iii) modeling and simulation of geological sequestration
field demonstrations;
``(iv) quantitative assessment of risks relating to
specific field sites for testing of sequestration
technologies;
``(v) research and development of new and improved
technologies for--
``(I) carbon use, including recycling and reuse of carbon
dioxide; and
``(II) the containment of carbon dioxide in the form of
solid materials or products derived from a gasification
technology that does not involve geologic containment or
injection; and
``(vi) research and development of new and improved
technologies for oxygen separation from air.
``(2) Field validation testing activities.--
``(A) In general.--The Secretary shall promote, to the
maximum extent practicable, regional carbon sequestration
partnerships to conduct geologic sequestration tests
involving carbon dioxide injection and monitoring,
mitigation, and verification operations in a variety of
candidate geological settings, including--
``(i) operating oil and gas fields;
``(ii) depleted oil and gas fields;
``(iii) unmineable coal seams;
``(iv) deep saline formations;
``(v) deep geological systems that may be used as
engineered reservoirs to extract economical quantities of
heat from geothermal resources of low permeability or
porosity;
``(vi) deep geologic systems containing basalt formations;
and
``(vii) coal-bed methane recovery.
``(B) Objectives.--The objectives of tests conducted under
this paragraph shall be--
``(i) to develop and validate geophysical tools, analysis,
and modeling to monitor, predict, and verify carbon dioxide
containment;
``(ii) to validate modeling of geological formations;
``(iii) to refine storage capacity estimated for particular
geological formations;
``(iv) to determine the fate of carbon dioxide concurrent
with and following injection into geological formations;
``(v) to develop and implement best practices for
operations relating to, and monitoring of, injection and
storage of carbon dioxide in geologic formations;
``(vi) to assess and ensure the safety of operations
related to geological storage of carbon dioxide; and
``(vii) to allow the Secretary to promulgate policies,
procedures, requirements, and guidance to ensure that the
objectives of this subparagraph are met in large-scale
testing and deployment activities for carbon capture and
storage that are funded by the Department of Energy.
``(3) Large-scale testing and deployment.--
``(A) In general.--The Secretary shall conduct not less
than 7 initial large-volume sequestration tests involving at
least 1,000,000 tons of carbon dioxide per year for
geological containment of carbon dioxide (at least 1 of which
shall be international in scope) to collect and validate
[[Page H14299]]
information on the cost and feasibility of commercial
deployment of technologies for geological containment of
carbon dioxide.
``(B) Diversity of formations to be studied.--In selecting
formations for study under this paragraph, the Secretary
shall consider a variety of geological formations across the
United States, and require characterization and modeling of
candidate formations, as determined by the Secretary.
``(4) Preference in project selection from meritorious
proposals.--In making competitive awards under this
subsection, subject to the requirements of section 989, the
Secretary shall give preference to proposals from
partnerships among industrial, academic, and government
entities.
``(5) Cost sharing.--Activities under this subsection shall
be considered research and development activities that are
subject to the cost-sharing requirements of section 988(b).
``(6) Program review and report.--During fiscal year 2011,
the Secretary shall--
``(A) conduct a review of programmatic activities carried
out under this subsection; and
``(B) make recommendations with respect to continuation of
the activities.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) $150,000,000 for fiscal year 2008;
``(2) $200,000,000 for fiscal year 2009;
``(3) $200,000,000 for fiscal year 2010;
``(4) $180,000,000 for fiscal year 2011; and
``(5) $165,000,000 for fiscal year 2012.''.
SEC. 303. CARBON DIOXIDE STORAGE CAPACITY ASSESSMENT.
(a) Definitions.--In this section
(1) Assessment.--The term ``assessment'' means the national
assessment of capacity for carbon dioxide completed under
subsection (f).
(2) Capacity.--The term ``capacity'' means the portion of a
storage formation that can retain carbon dioxide in
accordance with the requirements (including physical,
geological, and economic requirements) established under the
methodology developed under subsection (b).
(3) Engineered hazard.--The term ``engineered hazard''
includes the location and completion history of any well that
could affect potential storage.
(4) Risk.--The term ``risk'' includes any risk posed by
geomechanical, geochemical, hydrogeological, structural, and
engineered hazards.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the United
States Geological Survey.
(6) Storage formation.--The term ``storage formation''
means a deep saline formation, unmineable coal seam, or oil
or gas reservoir that is capable of accommodating a volume of
industrial carbon dioxide.
(b) Methodology.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop a
methodology for conducting an assessment under subsection
(f), taking into consideration--
(1) the geographical extent of all potential storage
formations in all States;
(2) the capacity of the potential storage formations;
(3) the injectivity of the potential storage formations;
(4) an estimate of potential volumes of oil and gas
recoverable by injection and storage of industrial carbon
dioxide in potential storage formations;
(5) the risk associated with the potential storage
formations; and
(6) the work done to develop the Carbon Sequestration Atlas
of the United States and Canada that was completed by the
Department of Energy.
(c) Coordination.--
(1) Federal coordination.--
(A) Consultation.--The Secretary shall consult with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency on issues of data sharing,
format, development of the methodology, and content of the
assessment required under this title to ensure the maximum
usefulness and success of the assessment.
(B) Cooperation.--The Secretary of Energy and the
Administrator shall cooperate with the Secretary to ensure,
to the maximum extent practicable, the usefulness and success
of the assessment.
(2) State coordination.--The Secretary shall consult with
State geological surveys and other relevant entities to
ensure, to the maximum extent practicable, the usefulness and
success of the assessment.
(d) External Review and Publication.--On completion of the
methodology under subsection (b), the Secretary shall--
(1) publish the methodology and solicit comments from the
public and the heads of affected Federal and State agencies;
(2) establish a panel of individuals with expertise in the
matters described in paragraphs (1) through (5) of subsection
(b) composed, as appropriate, of representatives of Federal
agencies, institutions of higher education, nongovernmental
organizations, State organizations, industry, and
international geoscience organizations to review the
methodology and comments received under paragraph (1); and
(3) on completion of the review under paragraph (2),
publish in the Federal Register the revised final
methodology.
(e) Periodic Updates.--The methodology developed under this
section shall be updated periodically (including at least
once every 5 years) to incorporate new data as the data
becomes available.
(f) National Assessment.--
(1) In general.--Not later than 2 years after the date of
publication of the methodology under subsection (d)(1), the
Secretary, in consultation with the Secretary of Energy and
State geological surveys, shall complete a national
assessment of capacity for carbon dioxide in accordance with
the methodology.
(2) Geological verification.--As part of the assessment
under this subsection, the Secretary shall carry out a
drilling program to supplement the geological data relevant
to determining storage capacity of carbon dioxide in
geological storage formations, including--
(A) well log data;
(B) core data; and
(C) fluid sample data.
(3) Partnership with other drilling programs.--As part of
the drilling program under paragraph (2), the Secretary shall
enter, as appropriate, into partnerships with other entities
to collect and integrate data from other drilling programs
relevant to the storage of carbon dioxide in geologic
formations.
(4) Incorporation into natcarb.--
(A) In general.--On completion of the assessment, the
Secretary of Energy and the Secretary of the Interior shall
incorporate the results of the assessment using--
(i) the NatCarb database, to the maximum extent
practicable; or
(ii) a new database developed by the Secretary of Energy,
as the Secretary of Energy determines to be necessary.
(B) Ranking.--The database shall include the data necessary
to rank potential storage sites for capacity and risk, across
the United States, within each State, by formation, and
within each basin.
(5) Report.--Not later than 180 days after the date on
which the assessment is completed, the Secretary shall submit
to the Committee on Energy and Natural Resources of the
Senate and the Committee on Science and Technology of the
House of Representatives a report describing the findings
under the assessment.
(6) Periodic updates.--The national assessment developed
under this section shall be updated periodically (including
at least once every 5 years) to support public and private
sector decisionmaking.
(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $30,000,000 for
the period of fiscal years 2008 through 2012.
SEC. 304. CARBON CAPTURE AND STORAGE INITIATIVE.
(a) Definitions.--In this section:
(1) Industrial sources of carbon dioxide.--The term
``industrial sources of carbon dioxide'' means one or more
facilities to--
(A) generate electric energy from fossil fuels;
(B) refine petroleum;
(C) manufacture iron or steel;
(D) manufacture cement or cement clinker;
(E) manufacture commodity chemicals (including from coal
gasification);
(F) manufacture transportation fuels from coal; or
(G) manufacture biofuels.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Program Establishment.--
(1) In general.--The Secretary shall carry out a program to
demonstrate technologies for the large-scale capture of
carbon dioxide from industrial sources of carbon dioxide.
(2) Scope of award.--An award under this section shall be
only for the portion of the project that--
(A) carries out the large-scale capture (including
purification and compression) of carbon dioxide;
(B) provides for the cost of transportation and injection
of carbon dioxide; and
(C) incorporates a comprehensive measurement, monitoring,
and validation program.
(3) Qualifications for award.--To be eligible for an award
under this section, a project proposal must include the
following:
(A) Capacity.--The capture of not less than eighty-five
percent of the produced carbon dioxide at the facility, and
not less than 500,000 short tons of carbon dioxide per year.
(B) Storage agreement.--A binding agreement for the storage
of all of the captured carbon dioxide in--
(i) a field testing validation activity under section 963
of the Energy Policy Act of 2005, as amended by this Act; or
(ii) other geological storage projects approved by the
Secretary.
(C) Purity level.--A purity level of at least 95 percent
carbon dioxide by volume for the captured carbon dioxide
delivered for storage.
(D) Commitment to continued operation of successful unit.--
If the project successfully demonstrates capture and storage
of carbon dioxide, a commitment to continued capture and
storage of carbon dioxide after the conclusion of the
demonstration.
(4) Cost-sharing.--The cost-sharing requirements of section
988 of the Energy Policy Act of 2005 shall apply to this
section.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$100,000,000 per year for fiscal years 2009 through 2013.
SEC. 305. CAPITOL POWER PLANT CARBON DIOXIDE EMISSIONS
DEMONSTRATION PROGRAM.
The first section of the Act of March 4, 1911 (2 U.S.C.
2162; 36 Stat. 1414, chapter 285), is amended in the seventh
undesignated paragraph (relating to the Capitol power plant),
under the heading ``Public buildings'', under the heading
``Under the Department of the Interior''--
(1) by striking ``ninety thousand dollars:'' and inserting
``$90,000.''; and
(2) by striking ``Provided, That hereafter the'' and all
that follows through the end of the proviso and inserting the
following:
``(a) Designation.--The heating, lighting, and power plant
constructed under the terms of the Act approved April 28,
1904 (33 Stat. 479, chapter 1762), shall be known as the
`Capitol
[[Page H14300]]
power plant', and all vacancies occurring in the force
operating that plant and the substations in connection with
the plant shall be filled by the Architect of the Capitol,
with the approval of the commission in control of the House
Office Building appointed under the first section of the Act
of March 4, 1907 (2 U.S.C. 2001).
``(b) Capitol Power Plant Carbon Dioxide Emissions
Demonstration Program.--
``(1) Definitions.--In this subsection:
``(A) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(B) Carbon dioxide energy efficiency.--The term `carbon
dioxide energy efficiency', with respect to a project, means
the quantity of electricity used to power equipment for
carbon dioxide capture and storage or use.
``(C) Program.--The term `program' means the competitive
grant demonstration program established under paragraph
(2)(B).
``(2) Establishment of program.--
``(A) Feasibility study.--Not later than 180 days after the
date of enactment of this section, the Architect of the
Capitol, in cooperation with the Administrator, shall
complete a feasibility study evaluating the available methods
to proceed with the project and program established under
this section, taking into consideration--
``(i) the availability of carbon capture technologies;
``(ii) energy conservation and carbon reduction strategies;
and
``(iii) security of operations at the Capitol power plant.
``(B) Competitive grant program.--The Architect of the
Capitol, in cooperation with the Administrator, shall
establish a competitive grant demonstration program under
which the Architect of the Capitol shall, subject to the
availability of appropriations, provide to eligible entities,
as determined by the Architect of the Capitol, in cooperation
with the Administrator, grants to carry out projects to
demonstrate, during the 2-year period beginning on the date
of enactment of this subsection, the capture and storage or
use of carbon dioxide emitted from the Capitol power plant as
a result of burning coal.
``(3) Requirements.--
``(A) Provision of grants.--
``(i) In general.--The Architect of the Capitol, in
cooperation with the Administrator, shall provide the grants
under the program on a competitive basis.
``(ii) Factors for consideration.--In providing grants
under the program, the Architect of the Capitol, in
cooperation with the Administrator, shall take into
consideration--
``(I) the practicability of conversion by the proposed
project of carbon dioxide into useful products, such as
transportation fuel;
``(II) the carbon dioxide energy efficiency of the proposed
project; and
``(III) whether the proposed project is able to reduce more
than 1 air pollutant regulated under this Act.
``(B) Requirements for entities.--An entity that receives a
grant under the program shall--
``(i) use to carry out the project of the entity a
technology designed to reduce or eliminate emission of carbon
dioxide that is in existence on the date of enactment of this
subsection that has been used--
``(I) by not less than 3 other facilities (including a
coal-fired power plant); and
``(II) on a scale of not less than 5 times the size of the
proposed project of the entity at the Capitol power plant;
and
``(ii) carry out the project of the entity in consultation
with, and with the concurrence of, the Architect of the
Capitol and the Administrator.
``(C) Consistency with capitol power plant modifications.--
The Architect of the Capitol may require changes to a project
under the program that are necessary to carry out any
modifications to be made to the Capitol power plant.
``(4) Incentive.--In addition to the grant under this
subsection, the Architect of the Capitol may provide to an
entity that receives such a grant an incentive award in an
amount equal to not more than $50,000, of which--
``(A) $15,000 shall be provided after the project of the
entity has sustained operation for a period of 100 days, as
determined by the Architect of the Capitol;
``(B) $15,000 shall be provided after the project of the
entity has sustained operation for a period of 200 days, as
determined by the Architect of the Capitol; and
``(C) $20,000 shall be provided after the project of the
entity has sustained operation for a period of 300 days, as
determined by the Architect of the Capitol.
``(5) Termination.--The program shall terminate on the date
that is 2 years after the date of enactment of this
subsection.
``(6) Authorization of appropriations.--There is authorized
to be appropriated to carry out the program $3,000,000.''.
SEC. 306. ASSESSMENT OF CARBON SEQUESTRATION AND METHANE AND
NITROUS OXIDE EMISSIONS FROM TERRESTRIAL
ECOSYSTEMS.
(a) Definitions.--In this section:
(1) Adaptation strategy.--The term ``adaptation strategy''
means a land use and management strategy that can be used to
increase the sequestration capabilities of any terrestrial
ecosystem.
(2) Assessment.--The term ``assessment'' means the national
assessment authorized under subsection (b).
(3) Covered greenhouse gas.--The term ``covered greenhouse
gas'' means carbon dioxide, nitrous oxide, and methane gas.
(4) Native plant species.--The term ``native plant
species'' means any noninvasive, naturally occurring plant
species within a terrestrial ecosystem.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(6) Federal land--The term ``Federal land'' means--
(A) land of the National Forest System (as defined in
section 11(a) of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the
Secretary of Agriculture, acting through the Chief of the
Forest Service; and
(B) public lands (as defined in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1702)), the
surface of which is administered by the Secretary of the
Interior, acting through the Director of the Bureau of Land
Management.
(7) Terrestrial ecosystem.--
(A) In general.--The term ``terrestrial ecosystem'' means
any ecological and surficial geological system on Federal
land.
(B) Inclusions.--The term ``terrestrial ecosystem''
includes--
(i) forest land;
(ii) grassland; and
(iii) freshwater aquatic ecosystems.
(b) Authorization of Assessment.--Not later than 2 years
after the date on which the final methodology is published
under subsection (f)(3)(D), the Secretary shall complete a
national assessment of--
(1) the quantity of carbon stored in and released from
terrestrial ecosystems; including from man-caused and natural
fires; and
(2) the annual flux of covered greenhouse gases in and out
of terrestrial ecosystems.
(c) Components.--In conducting the assessment under
subsection (b), the Secretary shall--
(1) determine the processes that control the flux of
covered greenhouse gases in and out of each terrestrial
ecosystem;
(2) estimate the technical and economic potential for
increasing carbon sequestration in natural and managed
terrestrial ecosystems through management activities or
restoration activities in each terrestrial ecosystem;
(3) develop near-term and long-term adaptation strategies
or mitigation strategies that can be employed--
(A) to enhance the sequestration of carbon in each
terrestrial ecosystem;
(B) to reduce emissions of covered greenhouse gases; and
(C) to adapt to climate change; and
(4) estimate annual carbon sequestration capacity of
terrestrial ecosystems under a range of policies in support
of management activities to optimize sequestration.
(d) Use of Native Plant Species.--In developing restoration
activities under subsection (c)(2) and management strategies
and adaptation strategies under subsection (c)(3), the
Secretary shall emphasize the use of native plant species
(including mixtures of many native plant species) for
sequestering covered greenhouse gas in each terrestrial
ecosystem.
(e) Consultation.--In conducting the assessment under
subsection (b) and developing the methodology under
subsection (f), the Secretary shall consult with--
(1) the Secretary of Energy;
(2) the Secretary of Agriculture;
(3) the Administrator of the Environmental Protection
Agency;
(4) the heads of other relevant agencies;
(5) consortia based at institutions of higher education and
with research corporations; and
(6) Federal forest and grassland managers.
(f) Methodology.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop a
methodology for conducting the assessment.
(2) Requirements.--The methodology developed under
paragraph (1)--
(A) shall--
(i) determine the method for measuring, monitoring,
quantifying, and monetizing covered greenhouse gas emissions
and reductions, including methods for allocating and managing
offsets or credits; and
(ii) estimate the total capacity of each terrestrial
ecosystem to--
(I) sequester carbon; and
(II) reduce emissions of covered greenhouse gases; and
(B) may employ economic and other systems models, analyses,
and estimations, to be developed in consultation with each of
the individuals described in subsection (e).
(3) External review and publication.--On completion of a
proposed methodology, the Secretary shall--
(A) publish the proposed methodology;
(B) at least 60 days before the date on which the final
methodology is published, solicit comments from--
(i) the public; and
(ii) heads of affected Federal and State agencies;
(C) establish a panel to review the proposed methodology
published under subparagraph (A) and any comments received
under subparagraph (B), to be composed of members--
(i) with expertise in the matters described in subsections
(c) and (d); and
(ii) that are, as appropriate, representatives of Federal
agencies, institutions of higher education, nongovernmental
organizations, State organizations, industry, and
international organizations; and
(D) on completion of the review under subparagraph (C),
publish in the Federal register the revised final
methodology.
(g) Estimate; Review.--The Secretary shall--
(1) based on the assessment, prescribe the data,
information, and analysis needed to establish a
scientifically sound estimate of--
(A) the carbon sequestration capacity of relevant
terrestrial ecosystems;
(B) a national inventory of covered greenhouse gas sources
that is consistent with the inventory prepared by the
Environmental Protection Agency entitled the ``Inventory of
U.S. Greenhouse Gas Emissions and Sinks: 1990-2005''; and
(C) the willingness of covered greenhouse gas emitters to
pay to sequester the covered greenhouse gases emitted by the
applicable emitters in designated terrestrial ecosystems; and
[[Page H14301]]
(2) not later than 180 days after the date on which the
assessment is completed, submit to the heads of applicable
Federal agencies and the appropriate committees of Congress a
report that describes the results of the assessment.
(h) Data and Report Availability.--On completion of the
assessment, the Secretary shall incorporate the results of
the assessment into a web-accessible database for public use.
SEC. 307. ABRUPT CLIMATE CHANGE RESEARCH PROGRAM.
(a) Establishment of Program.--The Secretary of Commerce
shall establish within the Office of Oceanic and Atmospheric
Research of the National Oceanic and Atmospheric
Administration, and shall carry out, a program of scientific
research on abrupt climate change.
(b) Purposes of Program.--The purposes of the program are
as follows:
(1) To develop a global array of terrestrial and
oceanographic indicators of paleoclimate in order to
sufficiently identify and describe past instances of abrupt
climate change.
(2) To improve understanding of thresholds and
nonlinearities in geophysical systems related to the
mechanisms of abrupt climate change.
(3) To incorporate such mechanisms into advanced
geophysical models of climate change.
(4) To test the output of such models against an improved
global array of records of past abrupt climate changes.
(c) Abrupt Climate Change Defined.--In this section, the
term ``abrupt climate change'' means a change in the climate
that occurs so rapidly or unexpectedly that human or natural
systems have difficulty adapting to the climate as changed.
(d) Authorization of Appropriations.--Of such sums
previously authorized, there is authorized to be appropriated
to the Department of Commerce for each of fiscal years 2009
through 2014, to remain available until expended, such sums
as are necessary, not to exceed $10,000,000, to carry out the
research program required under this section.
TITLE IV--COST-EFFECTIVE AND ENVIRONMENTALLY SUSTAINABLE PUBLIC
BUILDINGS
Subtitle A--Public Buildings Cost Reduction
SEC. 401. SHORT TITLE.
This subtitle may be cited as the ``Public Buildings Cost
Reduction Act of 2007''.
SEC. 402. COST-EFFECTIVE AND GEOTHERMAL HEAT PUMP TECHNOLOGY
ACCELERATION PROGRAM.
(a) Definition of Administrator.--In this section, the term
``Administrator'' means the Administrator of General
Services.
(b) Establishment.--
(1) In general.--The Administrator shall establish a
program to accelerate the use of more cost-effective
technologies and practices and geothermal heat pumps at GSA
facilities.
(2) Requirements.--The program established under this
subsection shall--
(A) ensure centralized responsibility for the coordination
of cost reduction-related and geothermal heat pump-related
recommendations, practices, and activities of all relevant
Federal agencies;
(B) provide technical assistance and operational guidance
to applicable tenants to achieve the goal identified in
subsection (c)(2)(B)(ii); and
(C) establish methods to track the success of Federal
departments and agencies with respect to that goal.
(c) Accelerated Use of Technologies.--
(1) Review.--
(A) In general.--As part of the program under this section,
not later than 90 days after the date of enactment of this
Act, the Administrator shall conduct a review of--
(i) current use of cost-effective lighting technologies and
geothermal heat pumps in GSA facilities; and
(ii) the availability to managers of GSA facilities of
cost-effective lighting technologies and geothermal heat
pumps.
(B) Requirements.--The review under subparagraph (A)
shall--
(i) examine the use of cost-effective lighting
technologies, geothermal heat pumps, and other cost-effective
technologies and practices by Federal agencies in GSA
facilities; and
(ii) as prepared in consultation with the Administrator of
the Environmental Protection Agency, identify cost-effective
lighting technology and geothermal heat pump technology
standards that could be used for all types of GSA facilities.
(2) Replacement.--
(A) In general.--As part of the program under this section,
not later than 180 days after the date of enactment of this
Act, the Administrator shall establish, using available
appropriations, a cost-effective lighting technology and
geothermal heat pump technology acceleration program to
achieve maximum feasible replacement of existing lighting,
heating, cooling technologies with cost-effective lighting
technologies and geothermal heat pump technologies in each
GSA facility.
(B) Acceleration plan timetable.--
(i) In general.--To implement the program established under
subparagraph (A), not later than 1 year after the date of
enactment of this Act, the Administrator shall establish a
timetable, including milestones for specific activities
needed to replace existing lighting, heating, cooling
technologies with cost-effective lighting technologies and
geothermal heat pump technologies, to the maximum extent
feasible (including at the maximum rate feasible), at each
GSA facility.
(ii) Goal.--The goal of the timetable under clause (i)
shall be to complete, using available appropriations, maximum
feasible replacement of existing lighting, heating, and
cooling technologies with cost-effective lighting
technologies and geothermal heat pump technologies by not
later than the date that is 5 years after the date of
enactment of this Act.
(d) GSA Facility Technologies and Practices.--Not later
than 180 days after the date of enactment of this Act, and
annually thereafter, the Administrator shall--
(1) ensure that a manager responsible for accelerating the
use of cost-effective technologies and practices and
geothermal heat pump technologies is designated for each GSA
facility; and
(2) submit to Congress a plan, to be implemented to the
maximum extent feasible (including at the maximum rate
feasible) using available appropriations, by not later than
the date that is 5 years after the date of enactment of this
Act, that--
(A) with respect to cost-effective technologies and
practices--
(i) identifies the specific activities needed to achieve a
20-percent reduction in operational costs through the
application of cost-effective technologies and practices from
2003 levels at GSA facilities by not later than 5 years after
the date of enactment of this Act;
(ii) describes activities required and carried out to
estimate the funds necessary to achieve the reduction
described in clause (i);
(B) includes an estimate of the funds necessary to carry
out this section;
(C) describes the status of the implementation of cost-
effective technologies and practices and geothermal heat pump
technologies and practices at GSA facilities, including--
(i) the extent to which programs, including the program
established under subsection (b), are being carried out in
accordance with this subtitle; and
(ii) the status of funding requests and appropriations for
those programs;
(D) identifies within the planning, budgeting, and
construction processes, all types of GSA facility-related
procedures that inhibit new and existing GSA facilities from
implementing cost-effective technologies or geothermal heat
pump technologies;
(E) recommends language for uniform standards for use by
Federal agencies in implementing cost-effective technologies
and practices and geothermal heat pump technologies and
practices;
(F) in coordination with the Office of Management and
Budget, reviews the budget process for capital programs with
respect to alternatives for--
(i) permitting Federal agencies to retain all identified
savings accrued as a result of the use of cost-effective
technologies and geothermal heat pump technologies; and
(ii) identifying short- and long-term cost savings that
accrue from the use of cost-effective technologies and
practices and geothermal heat pump technologies and
practices;
(G)(i) with respect to geothermal heat pump technologies,
achieves substantial operational cost savings through the
application of the technologies; and
(ii) with respect to cost-effective technologies and
practices, achieves cost savings through the application of
cost-effective technologies and practices sufficient to pay
the incremental additional costs of installing the cost-
effective technologies and practices by not later than the
date that is 5 years after the date of installation; and
(H) includes recommendations to address each of the
matters, and a plan for implementation of each
recommendation, described in subparagraphs (A) through (G).
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section, to remain available until expended.
SEC. 403. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION GRANT
PROGRAM FOR LOCAL GOVERNMENTS.
(a) Grant Program.--
(1) In general.--The Administrator of the Environmental
Protection Agency (referred to in this section as the
``Administrator'') shall establish a demonstration program
under which the Administrator shall provide competitive
grants to assist local governments (such as municipalities
and counties), with respect to local government buildings--
(A) to deploy cost-effective technologies and practices;
and
(B) to achieve operational cost savings, through the
application of cost-effective technologies and practices, as
verified by the Administrator.
(2) Cost sharing.--
(A) In general.--The Federal share of the cost of an
activity carried out using a grant provided under this
section shall be 40 percent.
(B) Waiver of non-federal share.--The Administrator may
waive up to 100 percent of the local share of the cost of any
grant under this section should the Administrator determine
that the community is economically distressed, pursuant to
objective economic criteria established by the Administrator
in published guidelines.
(3) Maximum amount.--The amount of a grant provided under
this subsection shall not exceed $1,000,000.
(b) Guidelines.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall issue
guidelines to implement the grant program established under
subsection (a).
(2) Requirements.--The guidelines under paragraph (1) shall
establish--
(A) standards for monitoring and verification of
operational cost savings through the application of cost-
effective technologies and practices reported by grantees
under this section;
(B) standards for grantees to implement training programs,
and to provide technical assistance and education, relating
to the retrofit of buildings using cost-effective
technologies and practices; and
(C) a requirement that each local government that receives
a grant under this section shall
[[Page H14302]]
achieve facility-wide cost savings, through renovation of
existing local government buildings using cost-effective
technologies and practices, of at least 40 percent as
compared to the baseline operational costs of the buildings
before the renovation (as calculated assuming a 3-year,
weather-normalized average).
(c) Compliance With State and Local Law.--Nothing in this
section or any program carried out using a grant provided
under this section supersedes or otherwise affects any State
or local law, to the extent that the State or local law
contains a requirement that is more stringent than the
relevant requirement of this section.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2007 through 2012.
(e) Reports.--
(1) In general.--The Administrator shall provide annual
reports to Congress on cost savings achieved and actions
taken and recommendations made under this section, and any
recommendations for further action.
(2) Final report.--The Administrator shall issue a final
report at the conclusion of the program, including findings,
a summary of total cost savings achieved, and recommendations
for further action.
(f) Termination.--The program under this section shall
terminate on September 30, 2012.
SEC. 404. DEFINITIONS.
In this subtitle:
(1) Cost-effective lighting technology.--
(A) In general.--The term ``cost-effective lighting
technology'' means a lighting technology that--
(i) will result in substantial operational cost savings by
ensuring an installed consumption of not more than 1 watt per
square foot; or
(ii) is contained in a list under--
(I) section 553 of Public Law 95-619 (42 U.S.C. 8259b); and
(II) Federal acquisition regulation 23-203.
(B) Inclusions.--The term ``cost-effective lighting
technology'' includes--
(i) lamps;
(ii) ballasts;
(iii) luminaires;
(iv) lighting controls;
(v) daylighting; and
(vi) early use of other highly cost-effective lighting
technologies.
(2) Cost-effective technologies and practices.--The term
``cost-effective technologies and practices'' means a
technology or practice that--
(A) will result in substantial operational cost savings by
reducing utility costs; and
(B) complies with the provisions of section 553 of Public
Law 95-619 (42 U.S.C. 8259b) and Federal acquisition
regulation 23-203.
(3) Operational cost savings.--
(A) In general.--The term ``operational cost savings''
means a reduction in end-use operational costs through the
application of cost-effective technologies and practices or
geothermal heat pumps, including a reduction in electricity
consumption relative to consumption by the same customer or
at the same facility in a given year, as defined in
guidelines promulgated by the Administrator pursuant to
section 403(b), that achieves cost savings sufficient to pay
the incremental additional costs of using cost-effective
technologies and practices or geothermal heat pumps by not
later than--
(i) for cost-effective technologies and practices, the date
that is 5 years after the date of installation; and
(ii) for geothermal heat pumps, as soon as practical after
the date of installation of the applicable geothermal heat
pump.
(B) Inclusions.--The term ``operational cost savings''
includes savings achieved at a facility as a result of--
(i) the installation or use of cost-effective technologies
and practices; or
(ii) the planting of vegetation that shades the facility
and reduces the heating, cooling, or lighting needs of the
facility.
(C) Exclusion.--The term ``operational cost savings'' does
not include savings from measures that would likely be
adopted in the absence of cost-effective technology and
practices programs, as determined by the Administrator.
(4) Geothermal heat pump.--The term ``geothermal heat
pump'' means any heating or air conditioning technology
that--
(A) uses the ground or ground water as a thermal energy
source to heat, or as a thermal energy sink to cool, a
building; and
(B) meets the requirements of the Energy Star program of
the Environmental Protection Agency applicable to geothermal
heat pumps on the date of purchase of the technology.
(5) GSA facility.--
(A) In general.--The term ``GSA facility'' means any
building, structure, or facility, in whole or in part
(including the associated support systems of the building,
structure, or facility) that--
(i) is constructed (including facilities constructed for
lease), renovated, or purchased, in whole or in part, by the
Administrator for use by the Federal Government; or
(ii) is leased, in whole or in part, by the Administrator
for use by the Federal Government--
(I) except as provided in subclause (II), for a term of not
less than 5 years; or
(II) for a term of less than 5 years, if the Administrator
determines that use of cost-effective technologies and
practices would result in the payback of expenses.
(B) Inclusion.--The term ``GSA facility'' includes any
group of buildings, structures, or facilities described in
subparagraph (A) (including the associated energy-consuming
support systems of the buildings, structures, and
facilities).
(C) Exemption.--The Administrator may exempt from the
definition of ``GSA facility'' under this paragraph a
building, structure, or facility that meets the requirements
of section 543(c) of Public Law 95-619 (42 U.S.C. 8253(c)).
Subtitle B--Installation of Photovoltaic System at Department of Energy
Headquarters Building
SEC. 411. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT
OF ENERGY HEADQUARTERS BUILDING.
(a) In General.--The Administrator of General Services
shall install a photovoltaic system, as set forth in the Sun
Wall Design Project, for the headquarters building of the
Department of Energy located at 1000 Independence Avenue,
Southwest, Washington, D.C., commonly known as the Forrestal
Building.
(b) Funding.--There shall be available from the Federal
Buildings Fund established by section 592 of title 40, United
States Code, $30,000,000 to carry out this section. Such sums
shall be derived from the unobligated balance of amounts made
available from the Fund for fiscal year 2007, and prior
fiscal years, for repairs and alterations and other
activities (excluding amounts made available for the energy
program). Such sums shall remain available until expended.
(c) Obligation of Funds.--None of the funds made available
pursuant to subsection (b) may be obligated prior to
September 30, 2007.
Subtitle C--High-Performance Green Buildings
SEC. 421. SHORT TITLE.
This subtitle may be cited as the ``High-Performance Green
Buildings Act of 2007''.
SEC. 422. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) high-performance green buildings--
(A) reduce energy, water, and material resource use and the
generation of waste;
(B) improve indoor environmental quality, and protect
indoor air quality by, for example, using materials that emit
fewer or no toxic chemicals into the indoor air;
(C) improve thermal comfort;
(D) improve lighting and the acoustic environment;
(E) improve the health and productivity of individuals who
live and work in the buildings;
(F) improve indoor and outdoor impacts of the buildings on
human health and the environment;
(G) increase the use of environmentally preferable
products, including biobased, recycled, and nontoxic products
with lower lifecycle impacts; and
(H) increase opportunities for reuse of materials and for
recycling;
(2) during the planning, design, and construction of a
high-performance green building, the environmental and energy
impacts of building location and site design, the
minimization of energy and materials use, and the
environmental impacts of the building are considered;
(3) according to the United States Green Building Council,
certified green buildings, as compared to conventional
buildings--
(A) use an average of 36 percent less total energy (and in
some cases up to 50 to 70 percent less total energy);
(B) use 30 percent less water; and
(C) reduce waste costs, often by 50 to 90 percent;
(4) the benefits of high-performance green buildings are
important, because in the United States, buildings are
responsible for approximately--
(A) 39 percent of primary energy use;
(B) 12 percent of potable water use;
(C) 136,000,000 tons of building-related construction and
demolition debris;
(D) 70 percent of United States resource consumption; and
(E) 70 percent of electricity consumption;
(5) green building certification programs can be highly
beneficial by disseminating up-to-date information and
expertise regarding high-performance green buildings, and by
providing third-party verification of green building design,
practices, and materials, and other aspects of buildings; and
(6) a July 2006 study completed for the General Services
Administration, entitled ``Sustainable Building Rating
Systems Summary,'' concluded that--
(A) green building standards are an important means to
encourage better practices;
(B) the Leadership in Energy and Environmental Design
(LEED) standard for green building certification is
``currently the dominant system in the United States market
and is being adapted to multiple markets worldwide''; and
(C) there are other useful green building certification or
rating programs in various stages of development and
adoption, including the Green Globes program and other rating
systems.
(b) Purposes.--The purposes of this subtitle are--
(1) to encourage the Federal Government to act as an
example for State and local governments, the private sector,
and individuals by building high-performance green buildings
that reduce energy use and environmental impacts;
(2) to establish an Office within the General Services
Administration, and a Green Building Advisory Committee, to
advance the goals of conducting research and development and
public outreach, and to move the Federal Government toward
construction of high-performance green buildings;
(3) to encourage States, local governments, and school
systems to site, build, renovate, and operate high-
performance green schools through the adoption of voluntary
guidelines for those schools, the dissemination of grants,
and the adoption of environmental health plans and programs;
(4) to strengthen Federal leadership on high-performance
green buildings through the adoption of incentives for high-
performance green buildings, and improved green procurement
by Federal agencies; and
[[Page H14303]]
(5) to demonstrate that high-performance green buildings
can and do provide significant benefits, in order to
encourage wider adoption of green building practices, through
the adoption of demonstration projects.
SEC. 423. DEFINITIONS.
In this subtitle:
(1) Administrator.--The term ``Administrator'' means the
Administrator of General Services.
(2) Committee.--The term ``Committee'' means the Green
Building Advisory Committee established under section 433(a).
(3) Director.--The term ``Director'' means the individual
appointed to the position established under section 431(a).
(4) Federal facility.--
(A) In general.--The term ``Federal facility'' means any
building or facility the intended use of which requires the
building or facility to be--
(i) accessible to the public; and
(ii) constructed or altered by or on behalf of the United
States.
(B) Exclusions.--The term ``Federal facility'' does not
include a privately-owned residential or commercial structure
that is not leased by the Federal Government.
(5) High-performance green building.--The term ``high-
performance green building'' means a building--
(A) that, during its life-cycle--
(i) reduces energy, water, and material resource use and
the generation of waste;
(ii) improves indoor environmental quality, including
protecting indoor air quality during construction, using low-
emitting materials, improving thermal comfort, and improving
lighting and acoustic environments that affect occupant
health and productivity;
(iii) improves indoor and outdoor impacts of the building
on human health and the environment;
(iv) increases the use of environmentally preferable
products, including biobased, recycled content, and nontoxic
products with lower life-cycle impacts;
(v) increases reuse and recycling opportunities; and
(vi) integrates systems in the building; and
(B) for which, during its planning, design, and
construction, the environmental and energy impacts of
building location and site design are considered.
(6) Life cycle.--The term ``life cycle'', with respect to a
high-performance green building, means all stages of the
useful life of the building (including components, equipment,
systems, and controls of the building) beginning at
conception of a green building project and continuing through
site selection, design, construction, landscaping,
commissioning, operation, maintenance, renovation,
deconstruction or demolition, removal, and recycling of the
green building.
(7) Life-cycle assessment.--The term ``life-cycle
assessment'' means a comprehensive system approach for
measuring the environmental performance of a product or
service over the life of the product or service, beginning at
raw materials acquisition and continuing through
manufacturing, transportation, installation, use, reuse, and
end-of-life waste management.
(8) Life-cycle costing.--The term ``life-cycle costing'',
with respect to a high-performance green building, means a
technique of economic evaluation that--
(A) sums, over a given study period, the costs of initial
investment (less resale value), replacements, operations
(including energy use), and maintenance and repair of an
investment decision; and
(B) is expressed--
(i) in present value terms, in the case of a study period
equivalent to the longest useful life of the building,
determined by taking into consideration the typical life of
such a building in the area in which the building is to be
located; or
(ii) in annual value terms, in the case of any other study
period.
(9) Office.--The term ``Office'' means the Office of High-
Performance Green Buildings established under section 432(a).
PART I--OFFICE OF HIGH-PERFORMANCE GREEN BUILDINGS
SEC. 431. OVERSIGHT.
(a) In General.--The Administrator shall establish within
the General Services Administration, and appoint an
individual to serve as Director in, a position in the career-
reserved Senior Executive service, to--
(1) establish and manage the Office in accordance with
section 432; and
(2) carry out other duties as required under this subtitle.
(b) Compensation.--The compensation of the Director shall
not exceed the maximum rate of basic pay for the Senior
Executive Service under section 5382 of title 5, United
States Code, including any applicable locality-based
comparability payment that may be authorized under section
5304(h)(2)(C) of that title.
SEC. 432. OFFICE OF HIGH-PERFORMANCE GREEN BUILDINGS.
(a) Establishment.--The Director shall establish within the
General Services Administration an Office of High-Performance
Green Buildings.
(b) Duties.--The Director shall--
(1) ensure full coordination of high-performance green
building information and activities within the General
Services Administration and all relevant Federal agencies,
including, at a minimum--
(A) the Environmental Protection Agency;
(B) the Office of the Federal Environmental Executive;
(C) the Office of Federal Procurement Policy;
(D) the Department of Energy;
(E) the Department of Health and Human Services;
(F) the Department of Defense; and
(G) such other Federal agencies as the Director considers
to be appropriate;
(2) establish a senior-level green building advisory
committee, which shall provide advice and recommendations in
accordance with section 433;
(3) identify and biennially reassess improved or higher
rating standards recommended by the Committee;
(4) establish a national high-performance green building
clearinghouse in accordance with section 434, which shall
provide green building information through--
(A) outreach;
(B) education; and
(C) the provision of technical assistance;
(5) ensure full coordination of research and development
information relating to high-performance green building
initiatives under section 435;
(6) identify and develop green building standards that
could be used for all types of Federal facilities in
accordance with section 435;
(7) establish green practices that can be used throughout
the life of a Federal facility;
(8) review and analyze current Federal budget practices and
life-cycle costing issues, and make recommendations to
Congress, in accordance with section 436; and
(9) complete and submit the report described in subsection
(c).
(c) Report.--Not later than 2 years after the date of
enactment of this Act, and biennially thereafter, the
Director shall submit to Congress a report that--
(1) describes the status of the green building initiatives
under this subtitle and other Federal programs in effect as
of the date of the report, including--
(A) the extent to which the programs are being carried out
in accordance with this subtitle; and
(B) the status of funding requests and appropriations for
those programs;
(2) identifies within the planning, budgeting, and
construction process all types of Federal facility procedures
that inhibit new and existing Federal facilities from
becoming high-performance green buildings, as measured by the
standard for high-performance green buildings identified in
accordance with subsection (d);
(3) identifies inconsistencies, as reported to the
Committee, in Federal law with respect to product acquisition
guidelines and high-performance product guidelines;
(4) recommends language for uniform standards for use by
Federal agencies in environmentally responsible acquisition;
(5) in coordination with the Office of Management and
Budget, reviews the budget process for capital programs with
respect to alternatives for--
(A) restructuring of budgets to require the use of complete
energy- and environmental-cost accounting;
(B) using operations expenditures in budget-related
decisions while simultaneously incorporating productivity and
health measures (as those measures can be quantified by the
Office, with the assistance of universities and national
laboratories);
(C) permitting Federal agencies to retain all identified
savings accrued as a result of the use of life cycle costing;
and
(D) identifying short- and long-term cost savings that
accrue from high-performance green buildings, including those
relating to health and productivity;
(6) identifies green, self-sustaining technologies to
address the operational needs of Federal facilities in times
of national security emergencies, natural disasters, or other
dire emergencies;
(7) summarizes and highlights development, at the State and
local level, of green building initiatives, including
Executive orders, policies, or laws adopted promoting green
building (including the status of implementation of those
initiatives); and
(8) includes, for the 2-year period covered by the report,
recommendations to address each of the matters, and a plan
for implementation of each recommendation, described in
paragraphs (1) through (6).
(d) Identification of Standard.--
(1) In general.--For the purpose of subsection (c)(2), not
later than 60 days after the date of enactment of this Act,
the Director shall identify a standard that the Director
determines to be the most likely to encourage a comprehensive
and environmentally-sound approach to certification of green
buildings.
(2) Basis.--The standard identified under paragraph (1)
shall be based on--
(A) a biennial study, which shall be carried out by the
Director to compare and evaluate standards;
(B) the ability and availability of assessors and auditors
to independently verify the criteria and measurement of
metrics at the scale necessary to implement this subtitle;
(C) the ability of the applicable standard-setting
organization to collect and reflect public comment;
(D) the ability of the standard to be developed and revised
through a consensus-based process;
(E) an evaluation of the adequacy of the standard, which
shall give credit for--
(i) efficient and sustainable use of water, energy, and
other natural resources;
(ii) use of renewable energy sources;
(iii) improved indoor environmental quality through
enhanced indoor air quality, thermal comfort, acoustics, day
lighting, pollutant source control, and use of low-emission
materials and building system controls; and
(iv) such other criteria as the Director determines to be
appropriate; and
(F) national recognition within the building industry.
(3) Biennial review.--The Director shall--
(A) conduct a biennial review of the standard identified
under paragraph (1); and
[[Page H14304]]
(B) include the results of each biennial review in the
report required to be submitted under subsection (c).
(e) Implementation.--The Office shall carry out each plan
for implementation of recommendations under subsection
(c)(7).
SEC. 433. GREEN BUILDING ADVISORY COMMITTEE.
(a) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Director shall establish an
advisory committee, to be known as the ``Green Building
Advisory Committee''.
(b) Membership.--
(1) In general.--The Committee shall be composed of
representatives of, at a minimum--
(A) each agency referred to in section 432(b)(1); and
(B) other relevant agencies and entities, as determined by
the Director, including at least 1 representative of each
of--
(i) State and local governmental green building programs;
(ii) independent green building associations or councils;
(iii) building experts, including architects, material
suppliers, and construction contractors;
(iv) security advisors focusing on national security needs,
natural disasters, and other dire emergency situations; and
(v) environmental health experts, including those with
experience in children's health.
(2) Non-federal members.--The total number of non-Federal
members on the Committee at any time shall not exceed 15.
(c) Meetings.--The Director shall establish a regular
schedule of meetings for the Committee.
(d) Duties.--The Committee shall provide advice and
expertise for use by the Director in carrying out the duties
under this subtitle, including such recommendations relating
to Federal activities carried out under sections 434 through
436 as are agreed to by a majority of the members of the
Committee.
(e) FACA Exemption.--The Committee shall not be subject to
section 14 of the Federal Advisory Committee Act (5 U.S.C.
App.).
SEC. 434. PUBLIC OUTREACH.
The Director, in coordination with the Committee, shall
carry out public outreach to inform individuals and entities
of the information and services available Government-wide
by--
(1) establishing and maintaining a national high-
performance green building clearinghouse, including on the
Internet, that--
(A) identifies existing similar efforts and coordinates
activities of common interest; and
(B) provides information relating to high-performance green
buildings, including hyperlinks to Internet sites that
describe related activities, information, and resources of--
(i) the Federal Government;
(ii) State and local governments;
(iii) the private sector (including nongovernmental and
nonprofit entities and organizations); and
(iv) other relevant organizations, including those from
other countries;
(2) identifying and recommending educational resources for
implementing high-performance green building practices,
including security and emergency benefits and practices;
(3) providing access to technical assistance on using tools
and resources to make more cost-effective, energy-efficient,
health-protective, and environmentally beneficial decisions
for constructing high-performance green buildings, including
tools available to conduct life-cycle costing and life-cycle
assessment;
(4) providing information on application processes for
certifying a high-performance green building, including
certification and commissioning;
(5) providing technical information, market research, or
other forms of assistance or advice that would be useful in
planning and constructing high-performance green buildings;
and
(6) using such other methods as are determined by the
Director to be appropriate.
SEC. 435. RESEARCH AND DEVELOPMENT.
(a) Establishment.--The Director, in coordination with the
Committee, shall--
(1)(A) survey existing research and studies relating to
high-performance green buildings; and
(B) coordinate activities of common interest;
(2) develop and recommend a high-performance green building
research plan that--
(A) identifies information and research needs, including
the relationships between human health, occupant
productivity, and each of--
(i) emissions from materials and products in the building;
(ii) natural day lighting;
(iii) ventilation choices and technologies;
(iv) heating, cooling, and system control choices and
technologies;
(v) moisture control and mold;
(vi) maintenance, cleaning, and pest control activities;
(vii) acoustics; and
(viii) other issues relating to the health, comfort,
productivity, and performance of occupants of the building;
and
(B) promotes the development and dissemination of high-
performance green building measurement tools that, at a
minimum, may be used--
(i) to monitor and assess the life-cycle performance of
facilities (including demonstration projects) built as high-
performance green buildings; and
(ii) to perform life-cycle assessments;
(3) assist the budget and life-cycle costing functions of
the Office under section 436;
(4) study and identify potential benefits of green
buildings relating to security, natural disaster, and
emergency needs of the Federal Government; and
(5) support other research initiatives determined by the
Office.
(b) Indoor Air Quality.--The Director, in consultation with
the Committee, shall develop and carry out a comprehensive
indoor air quality program for all Federal facilities to
ensure the safety of Federal workers and facility occupants--
(1) during new construction and renovation of facilities;
and
(2) in existing facilities.
SEC. 436. BUDGET AND LIFE-CYCLE COSTING AND CONTRACTING.
(a) Establishment.--The Director, in coordination with the
Committee, shall--
(1) identify, review, and analyze current budget and
contracting practices that affect achievement of high-
performance green buildings, including the identification of
barriers to green building life-cycle costing and budgetary
issues;
(2) develop guidance and conduct training sessions with
budget specialists and contracting personnel from Federal
agencies and budget examiners to apply life-cycle cost
criteria to actual projects;
(3) identify tools to aid life-cycle cost decisionmaking;
and
(4) explore the feasibility of incorporating the benefits
of green buildings, such as security benefits, into a cost-
budget analysis to aid in life-cycle costing for budget and
decision making processes.
SEC. 437. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
part $4,000,000 for each of fiscal years 2008 through 2012,
to remain available until expended.
PART II--HEALTHY HIGH-PERFORMANCE SCHOOLS
SEC. 441. DEFINITION OF HIGH-PERFORMANCE SCHOOL.
In this part, the term ``high-performance school'' has the
meaning given the term ``healthy, high-performance school
building'' in section 5586 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7277e).
SEC. 442. GRANTS FOR HEALTHY SCHOOL ENVIRONMENTS.
The Administrator of the Environmental Protection Agency,
in consultation with the Secretary of Education, may provide
grants to qualified State agencies for use in--
(1) providing technical assistance for programs of the
Environmental Protection Agency (including the Tools for
Schools Program and the Healthy School Environmental
Assessment Tool) to schools for use in addressing
environmental issues; and
(2) development of State school environmental quality plans
that include--
(A) standards for school building design, construction, and
renovation; and
(B) identification of ongoing school building environmental
problems in the State and recommended solutions to address
those problems, including assessment of information on the
exposure of children to environmental hazards in school
facilities.
SEC. 443. MODEL GUIDELINES FOR SITING OF SCHOOL FACILITIES.
The Administrator of the Environmental Protection Agency,
in consultation with the Secretary of Education and the
Secretary of Health and Human Services, shall develop
voluntary school site selection guidelines that account for--
(1) the special vulnerability of children to hazardous
substances or pollution exposures in any case in which the
potential for contamination at a potential school site
exists;
(2) modes of transportation available to students and
staff;
(3) the efficient use of energy; and
(4) the potential use of a school at the site as an
emergency shelter.
SEC. 444. PUBLIC OUTREACH.
(a) In General.--The Administrator of the Environmental
Protection Agency shall provide to the Director information
relating to all activities carried out under this part, which
the Director shall include in the report described in section
432(c).
(b) Public Outreach.--The Director shall ensure, to the
maximum extent practicable, that the public clearinghouse
established under section 434 receives and makes available
information on the exposure of children to environmental
hazards in school facilities, as provided by the
Administrator of the Environmental Protection Agency.
SEC. 445. ENVIRONMENTAL HEALTH PROGRAM.
(a) In General.--The Administrator of the Environmental
Protection Agency, in consultation with the Secretary of
Education, the Secretary of Health and Human Services, and
other relevant agencies, shall issue voluntary guidelines for
use by the State in developing and implementing an
environmental health program for schools that--
(1) takes into account the status and findings of Federal
research initiatives established under this subtitle and
other relevant Federal law with respect to school facilities,
including relevant updates on trends in the field, such as
the impact of school facility environments on student and
staff--
(A) health, safety, and productivity; and
(B) disabilities or special needs;
(2) provides research using relevant tools identified or
developed in accordance with section 435(a) to quantify the
relationships between--
(A) human health, occupant productivity, and student
performance; and
(B) with respect to school facilities, each of--
(i) pollutant emissions from materials and products;
(ii) natural day lighting;
(iii) ventilation choices and technologies;
(iv) heating and cooling choices and technologies;
(v) moisture control and mold;
(vi) maintenance, cleaning, and pest control activities;
[[Page H14305]]
(vii) acoustics; and
(viii) other issues relating to the health, comfort,
productivity, and performance of occupants of the school
facilities;
(3) provides technical assistance on siting, design,
management, and operation of school facilities, including
facilities used by students with disabilities or special
needs;
(4) collaborates with federally funded pediatric
environmental health centers to assist in on-site school
environmental investigations;
(5) assists States and the public in better understanding
and improving the environmental health of children; and
(6) provides to the Office a biennial report of all
activities carried out under this part, which the Director
shall include in the report described in section 432(c).
(b) Public Outreach.--The Director shall ensure, to the
maximum extent practicable, that the public clearinghouse
established under section 434 receives and makes available--
(1) information from the Administrator of the Environmental
Protection Agency that is contained in the report described
in subsection (a)(6); and
(2) information on the exposure of children to
environmental hazards in school facilities, as provided by
the Administrator of the Environmental Protection Agency.
SEC. 446. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
part $10,000,000 for the period of fiscal years 2008 through
2012, to remain available until expended.
PART III--STRENGTHENING FEDERAL LEADERSHIP
SEC. 451. INCENTIVES.
As soon as practicable after the date of enactment of this
Act, the Director shall identify incentives to encourage the
use of green buildings and related technology in the
operations of the Federal Government, including through--
(1) the provision of recognition awards; and
(2) the maximum feasible retention of financial savings in
the annual budgets of Federal agencies.
SEC. 452. FEDERAL PROCUREMENT.
(a) In General.--Not later than 2 years after the date of
enactment of this Act, the Director of the Office of Federal
Procurement Policy, in consultation with the Director and the
Under Secretary of Defense for Acquisition, Technology, and
Logistics, shall promulgate revisions of the applicable
acquisition regulations, to take effect as of the date of
promulgation of the revisions--
(1) to direct any Federal procurement executives involved
in the acquisition, construction, or major renovation
(including contracting for the construction or major
renovation) of any facility, to the maximum extent
practicable--
(A) to employ integrated design principles;
(B) to optimize building and systems energy performance;
(C) to protect and conserve water;
(D) to enhance indoor environmental quality; and
(E) to reduce environmental impacts of materials and waste
flows; and
(2) to direct Federal procurement executives involved in
leasing buildings, to give preference to the lease of
facilities that, to the maximum extent practicable--
(A) are energy-efficient; and
(B) have applied contemporary high-performance and
sustainable design principles during construction or
renovation.
(b) Guidance.--Not later than 90 days after the date of
promulgation of the revised regulations under subsection (a),
the Director shall issue guidance to all Federal procurement
executives providing direction and the option to renegotiate
the design of proposed facilities, renovations for existing
facilities, and leased facilities to incorporate improvements
that are consistent with this section.
SEC. 453. FEDERAL GREEN BUILDING PERFORMANCE.
(a) In General.--Not later than October 31 of each of the 2
fiscal years following the fiscal year in which this Act is
enacted, and at such times thereafter as the Comptroller
General of the United States determines to be appropriate,
the Comptroller General of the United States shall, with
respect to the fiscal years that have passed since the
preceding report--
(1) conduct an audit of the implementation of this
subtitle; and
(2) submit to the Office, the Committee, the Administrator,
and Congress a report describing the results of the audit.
(b) Contents.--An audit under subsection (a) shall include
a review, with respect to the period covered by the report
under subsection (a)(2), of--
(1) budget, life-cycle costing, and contracting issues,
using best practices identified by the Comptroller General of
the United States and heads of other agencies in accordance
with section 436;
(2) the level of coordination among the Office, the Office
of Management and Budget, and relevant agencies;
(3) the performance of the Office in carrying out the
implementation plan;
(4) the design stage of high-performance green building
measures;
(5) high-performance building data that were collected and
reported to the Office; and
(6) such other matters as the Comptroller General of the
United States determines to be appropriate.
(c) Environmental Stewardship Scorecard.--The Director
shall consult with the Committee to enhance, and assist in
the implementation of, the Environmental Stewardship
Scorecard announced at the White House summit on Federal
sustainable buildings in January 2006, to measure the
implementation by each Federal agency of sustainable design
and green building initiatives.
SEC. 454. STORM WATER RUNOFF REQUIREMENTS FOR FEDERAL
DEVELOPMENT PROJECTS.
The sponsor of any development or redevelopment project
involving a Federal facility with a footprint that exceeds
5,000 square feet shall use site planning, design,
construction, and maintenance strategies for the property to
maintain, to the maximum extent technically feasible, the
predevelopment hydrology of the property with regard to the
temperature, rate, volume, and duration of flow.
PART IV--DEMONSTRATION PROJECT
SEC. 461. COORDINATION OF GOALS.
(a) In General.--The Director shall establish guidelines to
implement a demonstration project to contribute to the
research goals of the Office.
(b) Projects.--
(1) In general.--In accordance with guidelines established
by the Director under subsection (a) and the duties of the
Director described in part I, the Director shall carry out 3
demonstration projects.
(2) Location of projects.--Each project carried out under
paragraph (1) shall be located in a Federal building in a
State recommended by the Director in accordance with
subsection (c).
(3) Requirements.--Each project carried out under paragraph
(1) shall--
(A) provide for the evaluation of the information obtained
through the conduct of projects and activities under this
subtitle; and
(B) achieve the highest available rating under the standard
identified pursuant to section 432(d).
(c) Criteria.--With respect to the existing or proposed
Federal facility at which a demonstration project under this
section is conducted, the Federal facility shall--
(1) be an appropriate model for a project relating to--
(A) the effectiveness of high-performance technologies;
(B) analysis of materials, components, and systems,
including the impact on the health of building occupants;
(C) life-cycle costing and life-cycle assessment of
building materials and systems; and
(D) location and design that promote access to the Federal
facility through walking, biking, and mass transit; and
(2) possess sufficient technological and organizational
adaptability.
(d) Report.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter through
September 30, 2013, the Director shall submit to the
Administrator a report that describes the status of and
findings regarding the demonstration project.
SEC. 462. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out the
Federal demonstration project described in section 461(b)
$10,000,000 for the period of fiscal years 2008 through 2012,
to remain available until expended.
TITLE V--CORPORATE AVERAGE FUEL ECONOMY STANDARDS
SEC. 501. SHORT TITLE.
This title may be cited as the ``Ten-in-Ten Fuel Economy
Act''.
SEC. 502. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND
CERTAIN OTHER VEHICLES.
(a) Increased Standards.--Section 32902 of title 49, United
States Code, is amended--
(1) by striking ``NON-PASSENGER AUTOMOBILES.--'' in
subsection (a) and inserting ``PRESCRIPTION OF STANDARDS BY
REGULATION.--'';
(2) by striking ``(except passenger automobiles)'' in
subsection (a); and
(3) by striking subsection (b) and inserting the following:
``(b) Standards for Automobiles and Certain Other
Vehicles.--
``(1) In general.--The Secretary of Transportation, after
consultation with the Administrator of the Environmental
Protection Agency, shall prescribe average fuel economy
standards for--
``(A) automobiles manufactured by manufacturers in each
model year beginning with model year 2011 in accordance with
subsection (c); and
``(B) commercial medium-duty or heavy-duty on-highway
vehicles in accordance with subsection (k).
``(2) Fuel economy target for automobiles.--
``(A) Automobile fuel economy average for model years 2011
through 2020.--The Secretary shall prescribe average fuel
economy standards for automobiles in each model year
beginning with model year 2011 to achieve a combined fuel
economy average for model year 2020 of at least 35 miles per
gallon for the fleet of automobiles manufactured or sold in
the United States. The average fuel economy standards
prescribed by the Secretary shall be the maximum feasible
average fuel economy standards for model years 2011 through
2019.
``(B) Automobile fuel economy average for model years 2021
through 2030.--For model years 2021 through 2030, the average
fuel economy required to be attained by the fleet of
automobiles manufactured or sold in the United States shall
be the maximum feasible average fuel economy standard for the
fleet.
``(C) Progress toward standard required.--In prescribing
average fuel economy standards under subparagraph (A), the
Secretary shall prescribe annual fuel economy standard
increases that increase the applicable average fuel economy
standard ratably beginning with model year 2011 and ending
with model year 2020.''.
(b) Fuel Economy Target for Commercial Medium-Duty and
Heavy-Duty On-Highway Vehicles.--Section 32902 of title 49,
United States Code, is amended by adding at the end thereof
the following:
[[Page H14306]]
``(k) Commercial Medium- and Heavy-Duty On-Highway
Vehicles.--
``(1) Study.--No later than 18 months after the date of
enactment of the Ten-in-Ten Fuel Economy Act, the Secretary
of Transportation, in consultation with the Secretary of
Energy and the Administrator of the Environmental Protection
Agency, shall examine the fuel efficiency of commercial
medium- and heavy-duty on-highway vehicles and determine--
``(A) the appropriate test procedures and methodologies for
measuring commercial medium- and heavy-duty on-highway
vehicle fuel efficiency;
``(B) the appropriate metric for measuring and expressing
commercial medium- and heavy-duty on-highway vehicle fuel
efficiency performance, taking into consideration, among
other things, the work performed by such on-highway vehicles
and types of operations in which they are used;
``(C) the range of factors, including, without limitation,
design, functionality, use, duty cycle, infrastructure, and
total overall energy consumption and operating costs that
effect commercial medium- and heavy-duty on-highway vehicle
fuel efficiency; and
``(D) such other factors and conditions that could have an
impact on a program to improve commercial medium- and heavy-
duty on-highway vehicle fuel efficiency.
``(2) Rulemaking.--No later than 24 months after completion
of the study required by paragraph (1), the Secretary, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, by
regulation, shall determine in a rulemaking procedure how to
implement a commercial medium- and heavy-duty on-highway
vehicle fuel efficiency improvement program designed to
achieve the maximum feasible improvement, and shall adopt
appropriate test methods, measurement metrics, fuel economy
standards, and compliance and enforcement protocols that are
appropriate, cost-effective, and technologically feasible for
commercial medium- and heavy-duty on-highway vehicles.
``(3) Lead-time; regulatory stability.--Any commercial
medium- and heavy-duty on-highway vehicle fuel efficiency
regulatory program adopted pursuant to this subsection shall
provide no less than 4 full model years of regulatory lead-
time and 3 full model years of regulatory stability.
``(4) Commercial medium- and heavy-duty on-highway vehicle
defined.--In this subsection, the term `commercial medium-
and heavy-duty on-highway vehicle' means an on-highway
vehicle with a gross vehicle weight rating of more than 8,500
pounds, and that, in the case of a vehicle with a gross
vehicle weight rating of less than 10,000 pounds, is not an
automobile.''.
(c) Authority of Secretary.--Section 32902 of title 49,
United States Code, as amended by subsection (b), is further
amended by adding at the end thereof the following:
``(l) Authority of the Secretary.--
``(1) Vehicle attributes; model years covered.--The
Secretary shall--
``(A) prescribe by regulation average fuel economy
standards for automobiles based on vehicle attributes related
to fuel economy and to express the standards in the form of a
mathematical function; and
``(B) issue regulations under this title prescribing
average fuel economy standards for 1 or more model years.
``(2) Prohibition of uniform percentage increase.--When the
Secretary prescribes a standard, or prescribes an amendment
under this section that changes a standard, the standard may
not be expressed as a uniform percentage increase from the
fuel-economy performance of attribute classes or categories
already achieved in a model year by a manufacturer.''.
SEC. 503. AMENDING FUEL ECONOMY STANDARDS.
(a) In General.--Section 32902(c) of title 49, United
States Code, is amended to read as follows:
``(c) Amending Fuel Economy Standards.--Notwithstanding
subsections (a) and (b), the Secretary of Transportation--
``(1) may prescribe a standard higher than that required
under subsection (b); or
``(2) may prescribe an average fuel economy standard for
automobiles that is the maximum feasible level for the model
year, despite being lower than the standard required under
subsection (b), if the Secretary determines, based on clear
and convincing evidence, that the average fuel economy
standard prescribed in accordance with subsections (a) and
(b) for automobiles in that model year is shown not to be
cost-effective.''.
(b) Feasibility Criteria.--Section 32902(f) of title 49,
United States Code, is amended to read as follows:
``(f) Decisions on Maximum Feasible Average Fuel Economy.--
``(1) In general.--When deciding maximum feasible average
fuel economy under this section, the Secretary shall
consider--
``(A) economic practicability;
``(B) the effect of other motor vehicle standards of the
Government on fuel economy;
``(C) environmental impacts; and
``(D) the need of the United States to conserve energy.
``(2) Limitations.--In setting any standard under
subsection (b), (c), or (d), the Secretary shall ensure that
each standard is the highest standard that--
``(A) is technologically achievable;
``(B) can be achieved without materially reducing the
overall safety of automobiles manufactured or sold in the
United States;
``(C) is not less than the standard for that class of
vehicles from any prior year; and
``(D) is cost-effective.
``(3) Cost-effective defined.--In this subsection, the term
`cost-effective' means that the value to the United States of
reduced fuel use from a proposed fuel economy standard is
greater than or equal to the cost to the United States of
such standard. In determining cost-effectiveness, the
Secretary shall give priority to those technologies and
packages of technologies that offer the largest reduction in
fuel use relative to their costs.
``(4) Factors for consideration by secretary in determining
cost-effectiveness.--The Secretary shall consult with the
Administrator of the Environmental Protection Agency, and may
consult with such other departments and agencies as the
Secretary deems appropriate, and shall consider in the
analysis the following factors:
``(A) Economic security.
``(B) The impact of the oil or energy intensity of the
United States economy on the sensitivity of the economy to
oil and other fuel price changes, including the magnitude of
gross domestic product losses in response to short term price
shocks or long term price increases.
``(C) National security, including the impact of United
States payments for oil and other fuel imports on political,
economic, and military developments in unstable or unfriendly
oil-exporting countries.
``(D) The uninternalized costs of pipeline and storage oil
seepage, and for risk of oil spills from production,
handling, and transport, and related landscape damage.
``(E) The emissions of pollutants including greenhouse
gases over the lifecycle of the fuel and the resulting costs
to human health, the economy, and the environment.
``(F) Such additional factors as the Secretary deems
relevant.
``(5) Minimum valuation.--When considering the value to
consumers of a gallon of gasoline saved, the Secretary of
Transportation shall use as a minimum value the greater of--
``(A) the average value of gasoline prices projected by the
Energy Information Administration over the period covered by
the standard; or
``(B) the average value of gasoline prices for the 5-year
period immediately preceding the year in which the standard
is established.''.
(c) Consultation Requirement.--Section 32902(i) of title
49, United States Code, is amended by inserting ``and the
Administrator of the Environmental Protection Agency'' after
``Energy''.
(d) Comments.--Section 32902(j) of title 49, United States
Code, is amended--
(1) by striking paragraph (1) and inserting ``(1) Before
issuing a notice proposing to prescribe or amend an average
fuel economy standard under subsection (b), (c), or (g) of
this section, the Secretary of Transportation shall give the
Secretary of Energy and Administrator of the Environmental
Protection Agency at least 30 days after the receipt of the
notice during which the Secretary of Energy and Administrator
may, if the Secretary of Energy or Administrator concludes
that the proposed standard would adversely affect the
conservation goals of the Secretary of Energy or
environmental protection goals of the Administrator, provide
written comments to the Secretary of Transportation about the
impact of the standard on those goals. To the extent the
Secretary of Transportation does not revise a proposed
standard to take into account comments of the Secretary of
Energy or Administrator on any adverse impact of the
standard, the Secretary of Transportation shall include those
comments in the notice.''; and
(2) by inserting ``and the Administrator'' after ``Energy''
each place it appears in paragraph (2).
(e) Alternative Fuel Economy Standards for Low Volume
Manufacturers and New Entrants.--Section 32902(d) of title
49, United States Code, is amended to read as follows:
``(d) Alternative Average Fuel Economy Standard.--
``(1) In general.--Upon the application of an eligible
manufacturer, the Secretary of Transportation may prescribe
an alternative average fuel economy standard for automobiles
manufactured by that manufacturer if the Secretary determines
that--
``(A) the applicable standard prescribed under subsection
(a), (b), or (c) is more stringent than the maximum feasible
average fuel economy level that manufacturer can achieve; and
``(B) the alternative average fuel economy standard
prescribed under this subsection is the maximum feasible
average fuel economy level that manufacturer can achieve.
``(2) Application of alternative standard.--The Secretary
may provide for the application of an alternative average
fuel economy standard prescribed under paragraph (1) to--
``(A) the manufacturer that applied for the alternative
average fuel economy standard;
``(B) all automobiles to which this subsection applies; or
``(C) classes of automobiles manufactured by eligible
manufacturers.
``(3) Importers.--Notwithstanding paragraph (1), an
importer registered under section 30141(c) may not be
exempted as a manufacturer under paragraph (1) for an
automobile that the importer--
``(A) imports; or
``(B) brings into compliance with applicable motor vehicle
safety standards prescribed under chapter 301 for an
individual described in section 30142.
``(4) Application.--The Secretary of Transportation may
prescribe the contents of an application for an alternative
average fuel economy standard.
``(5) Eligible manufacturer defined.--In this section, the
term `eligible manufacturer' means a manufacturer that--
``(A) is not owned in whole or in part by another
manufacturer that sold greater than 0.5 percent of the number
of automobiles sold in the
[[Page H14307]]
United States in the model year prior to the model year to
which the application relates;
``(B) sold in the United States fewer than 0.4 percent of
the number of automobiles sold in the United States in the
model year that is 2 years before the model year to which the
application relates; and
``(C) will sell in the United States fewer than 0.4 percent
of the automobiles sold in the United States for the model
year for which the alternative average fuel economy standard
will apply.
``(6) Limitation.--For purposes of this subsection,
notwithstanding section 32901(a)(4), the term `automobile
manufactured by a manufacturer' includes every automobile
manufactuered by a person that controls, is controlled by, or
is under common control with the manufacturer.
(f) Technical and Conforming Amendments.--
(1) Section 32902(d) of title 49, United States Code, is
amended by striking ``passenger'' each place it appears.
(2) Section 32902(g) of title 49, United States Code, is
amended--
(A) by striking ``subsection (a) or (d)'' each place it
appears in paragraph (1) and inserting ``subsection (b), (c),
or (d)''; and
(B) striking ``(and submit the amendment to Congress when
required under subsection (c)(2) of this section)'' in
paragraph (2).
SEC. 504. DEFINITIONS.
(a) In General.--Section 32901(a) of title 49, United
States Code, is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) except as provided in section 32908 of this title,
`automobile' means a 4-wheeled vehicle that is propelled by
fuel, or by alternative fuel, manufactured primarily for use
on public streets, roads, and highways and rated at not more
than 10,000 pounds gross vehicle weight, except--
``(A) a vehicle operated only on a rail line;
``(B) a vehicle manufactured by 2 or more manufacturers in
different stages and less than 10,000 of which are
manufactured per year; or
``(C) a work truck.''; and
(2) by adding at the end the following:
``(17) `work truck' means an automobile that the Secretary
determines by regulation--
``(A) is rated at between 8,500 and 10,000 pounds gross
vehicle weight; and
``(B) is not a medium-duty passenger vehicle (as defined in
section 86.1803-01 of title 40, Code of Federal
Regulations).''.
(b) Deadline for Regulations.--The Secretary of
Transportation--
(1) shall issue proposed regulations implementing the
amendments made by subsection (a) not later than 1 year after
the date of enactment of this Act; and
(2) shall issue final regulations implementing the
amendments not later than 18 months after the date of the
enactment of this Act.
(c) Effective Date.--Regulations prescribed under
subsection (b) shall apply beginning with model year 2010.
SEC. 505. ENSURING SAFETY OF AUTOMOBILES.
(a) In General.--Subchapter II of chapter 301 of title 49,
United States Code, is amended by adding at the end the
following:
``Sec. 30129. Vehicle compatibility standard
``(a) Standards.--The Secretary of Transportation shall
issue a motor vehicle safety standard to reduce automobile
incompatibility. The standard shall address characteristics
necessary to ensure better management of crash forces in
multiple vehicle frontal and side impact crashes between
different types, sizes, and weights of automobiles with a
gross vehicle weight of 10,000 pounds or less in order to
decrease occupant deaths and injuries.
``(b) Consumer Information.--The Secretary shall develop
and implement a public information side and frontal
compatibility crash test program with vehicle ratings based
on risks to occupants, risks to other motorists, and combined
risks by vehicle make and model.''.
(b) Rulemaking Deadlines.--
(1) Rulemaking.--The Secretary of Transportation shall
issue--
(A) a notice of a proposed rulemaking under section 30129
of title 49, United States Code, not later than January 1,
2012; and
(B) a final rule under such section not later than December
31, 2014.
(2) Effective date of requirements.--Any requirement
imposed under the final rule issued under paragraph (1) shall
become fully effective not later than September 1, 2018.
(c) Conforming Amendment.--The chapter analysis for chapter
301 is amended by inserting after the item relating to
section 30128 the following:
``30129. Vehicle compatibility standard''.
SEC. 506. CREDIT TRADING PROGRAM.
Section 32903 of title 49, United States Code, is amended--
(1) by striking ``passenger'' each place it appears;
(2) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsection (a), (c), or (d)
of section 32902'';
(3) by striking ``3 consecutive model years'' in subsection
(a)(2) and inserting ``5 consecutive model years'';
(4) in subsection (a)(2), by striking ``clause (1) of this
subsection,'' and inserting ``paragraph (1)''; and
(5) by striking subsection (e) and inserting the following:
``(e) Credit Trading Among Manufacturers.--The Secretary of
Transportation may establish, by regulation, a corporate
average fuel economy credit trading program to allow
manufacturers whose automobiles exceed the average fuel
economy standards prescribed under section 32902 to earn
credits to be sold to manufacturers whose automobiles fail to
achieve the prescribed standards such that the total oil
savings associated with manufacturers that exceed the
prescribed standards are preserved when transferring credits
to manufacturers that fail to achieve the prescribed
standards.''.
SEC. 507. LABELS FOR FUEL ECONOMY AND GREENHOUSE GAS
EMISSIONS.
Section 32908 of title 49, United States Code, is amended--
(1) by redesignating subparagraph (F) of subsection (b)(1)
as subparagraph (H) and inserting after subparagraph (E) the
following:
``(F) a label (or a logo imprinted on a label required by
this paragraph) that--
``(i) reflects an automobile's performance on the basis of
criteria developed by the Administrator to reflect the fuel
economy and greenhouse gas and other emissions consequences
of operating the automobile over its likely useful life;
``(ii) permits consumers to compare performance results
under clause (i) among all automobiles; and
``(iii) is designed to encourage the manufacture and sale
of automobiles that meet or exceed applicable fuel economy
standards under section 32902.
``(G) a fuelstar under paragraph (5).''; and
(2) by adding at the end of subsection (b) the following:
``(4) Green Label Program.--
``(A) Marketing analysis.--Not later than 2 years after the
date of the enactment of the Ten-in-Ten Fuel Economy Act, the
Administrator shall implement a consumer education program
and execute marketing strategies to improve consumer
understanding of automobile performance described in
paragraph (1)(F).
``(B) Eligibility.--Not later than 3 years after the date
described in subparagraph (A), the Administrator shall issue
requirements for the label or logo required under paragraph
(1)(F) to ensure that an automobile is not eligible for the
label or logo unless it--
``(i) meets or exceeds the applicable fuel economy
standard; or
``(ii) will have the lowest greenhouse gas emissions over
the useful life of the vehicle of all vehicles in the vehicle
attribute class to which it belongs in that model year.
``(5) Fuelstar Program.--
``(A) In general.--The Secretary shall establish a program,
to be known as the `Fuelstar Program', under which stars
shall be imprinted on or attached to the label required by
paragraph (1).
``(B) Green stars.--Under the Fuelstar Program, a
manufacturer may include on the label maintained on an
automobile under paragraph (1)--
``(i) 1 green star for any automobile that meets the
average fuel economy standard for the model year under
section 32902; and
``(ii) 1 additional green star for each 2 miles per gallon
by which the automobile exceeds such standard.
``(C) Gold stars.--Under the Fuelstar Program, a
manufacturer may include a gold star on the label maintained
on an automobile under paragraph (1) if the automobile
attains a fuel economy of at least 50 miles per gallon.''.
SEC. 508. CONTINUED APPLICABILITY OF EXISTING STANDARDS.
Nothing in this title, or the amendments made by this
title, shall be construed to affect the application of
section 32902 of title 49, United States Code, to passenger
automobiles or non-passenger automobiles manufactured before
model year 2011.
SEC. 509. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary of Transportation shall
execute an agreement with the National Academy of Sciences to
develop a report evaluating vehicle fuel economy standards,
including--
(1) an assessment of automotive technologies and costs to
reflect developments since the Academy's 2002 report
evaluating the corporate average fuel economy standards was
conducted;
(2) an analysis of existing and potential technologies that
may be used practically to improve automobile and medium-duty
and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the automotive and medium-duty and heavy-duty
truck manufacturing process; and
(4) an assessment of how such technologies may be used to
meet the new fuel economy standards under chapter 329 of
title 49, United States Code, as amended by this title.
(b) Quinquennial Updates.--After submitting the initial
report, the Academy shall update the report at 5 year
intervals thereafter through 2025.
(c) Report.--The Academy shall submit the report to the
Secretary, the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Energy and Commerce, with its findings and recommendations no
later than 18 months after the date on which the Secretary
executes the agreement with the Academy.
SEC. 510. STANDARDS FOR EXECUTIVE AGENCY AUTOMOBILES.
(a) In General.--Section 32917 of title 49, United States
Code, is amended to read as follows:
``Sec. 32917. Standards for Executive agency automobiles
``(a) Fuel Efficiency.--The head of an Executive agency
shall ensure that each new automobile procured by the
Executive agency is as fuel efficient as practicable.
``(b) Definitions.--In this section:
``(1) Executive agency.--The term `Executive agency' has
the meaning given that term in section 105 of title 5.
``(2) New automobile.--The term `new automobile', with
respect to the fleet of automobiles
[[Page H14308]]
of an executive agency, means an automobile that is leased
for at least 60 consecutive days or bought, by or for the
Executive agency, after September 30, 2008. The term does not
include any vehicle designed for combat-related missions, law
enforcement work, or emergency rescue work.''.
(b) Report.--The Administrator of the General Services
Administration shall develop a report describing and
evaluating the efforts of the heads of the Executive agencies
to comply with section 32917 of title 49, United States Code,
for fiscal year 2009. The Administrator shall submit the
report to Congress no later than December 31, 2009.
SEC. 511. INCREASING CONSUMER AWARENESS OF FLEXIBLE FUEL
AUTOMOBILES.
Section 32908 of title 49, United States Code, is amended
by adding at the end the following:
``(g) Increasing Consumer Awareness of Flexible Fuel
Automobiles.--(1) The Secretary of Energy, in consultation
with the Secretary of Transportation, shall prescribe
regulations that require the manufacturer of automobiles
distributed in interstate commerce for sale in the United
States--
``(A) to prominently display a permanent badge or emblem on
the quarter panel or tailgate of each such automobile that
indicates such vehicle is capable of operating on alternative
fuel; and
``(B) to include information in the owner's manual of each
such automobile information that describes--
``(i) the capability of the automobile to operate using
alternative fuel;
``(ii) the benefits of using alternative fuel, including
the renewable nature, and the environmental benefits of using
alternative fuel; and
``(C) to contain a fuel tank cap that is clearly labeled to
inform consumers that the automobile is capable of operating
on alternative fuel.
``(2) The Secretary of Transportation shall collaborate
with automobile retailers to develop voluntary methods for
providing prospective purchasers of automobiles with
information regarding the benefits of using alternative fuel
in automobiles, including--
``(A) the renewable nature of alternative fuel; and
``(B) the environmental benefits of using alternative
fuel.''.
SEC. 512. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY
LABELING PROCEDURES.
Beginning in December, 2009, and not less often than every
5 years thereafter, the Administrator of the Environmental
Protection Agency, in consultation with the Secretary of
Transportation, shall--
(1) reevaluate the fuel economy labeling procedures
described in the final rule published in the Federal Register
on December 27, 2006 (71 Fed. Reg. 77,872; 40 C.F.R. parts 86
and 600) to determine whether changes in the factors used to
establish the labeling procedures warrant a revision of that
process; and
(2) submit a report to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives
Committee on Energy and Commerce that describes the results
of the reevaluation process.
SEC. 513. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.
(a) In General.--Chapter 301 of title 49, United States
Code, is amended by inserting after section 30123 the
following new section:
``Sec. 30123A. Tire fuel efficiency consumer information
``(a) Rulemaking.--
``(1) In general.--Not later than 18 months after the date
of enactment of the Ten-in-Ten Fuel Economy Act, the
Secretary of Transportation shall, after notice and
opportunity for comment, promulgate rules establishing a
national tire fuel efficiency consumer information program
for tires designed for use on motor vehicles to educate
consumers about the effect of tires on automobile fuel
efficiency.
``(2) Items included in rule.--The rulemaking shall
include--
``(A) a national tire fuel efficiency rating system for
motor vehicle tires to assist consumers in making more
educated tire purchasing decisions;
``(B) requirements for providing information to consumers,
including information at the point of sale and other
potential information dissemination methods, including the
Internet;
``(C) specifications for test methods for manufacturers to
use in assessing and rating tires to avoid variation among
test equipment and manufacturers; and
``(D) a national tire maintenance consumer education
program including, information on tire inflation pressure,
alignment, rotation, and tread wear to maximize fuel
efficiency.
``(3) Applicability.--This section shall not apply to tires
excluded from coverage under section 575.104(c)(2) of title
49, Code of Federal Regulations, as in effect on date of
enactment of the Ten-in-Ten Fuel Economy Act.
``(b) Consultation.--The Secretary shall consult with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency on the means of conveying
tire fuel efficiency consumer information.
``(c) Report to Congress.--The Secretary shall conduct
periodic assessments of the rules promulgated under this
section to determine the utility of such rules to consumers,
the level of cooperation by industry, and the contribution to
national goals pertaining to energy consumption. The
Secretary shall transmit periodic reports detailing the
findings of such assessments to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Energy and Commerce.
``(d) Tire Marking.--The Secretary shall not require
permanent labeling of any kind on a tire for the purpose of
tire fuel efficiency information.
``(e) Preemption.--When a requirement under this section is
in effect, a State or political subdivision of a State may
adopt or enforce a law or regulation on tire fuel efficiency
consumer information only if the law or regulation is
identical to that requirement. Nothing in this section shall
be construed to preempt a State or political subdivision of a
State from regulating the fuel efficiency of tires not
otherwise preempted under this chapter.''.
(b) Enforcement.--Section 30165(a) of title 49, United
States Code, is amended by adding at the end the following:
``(4) Section 30123a.--Any person who fails to comply with
the national tire fuel efficiency consumer information
program under section 30123A is liable to the United States
Government for a civil penalty of not more than $50,000 for
each violation.''.
(c) Conforming Amendment.--The chapter analysis for chapter
301 of title 49, United States Code, is amended by inserting
after the item relating to section 30123 the following:
``30123A. Tire fuel efficiency consumer information''.
SEC. 514. ADVANCED BATTERY INITIATIVE.
(a) In General.--The Secretary of Energy, in consultation
with the Secretary of Transportation, shall establish and
carry out an Advanced Battery Initiative in accordance with
this section to support research, development, demonstration,
and commercial application of battery technologies.
(b) Industry Alliance.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall
competitively select an Industry Alliance to represent
participants who are private, for-profit firms headquartered
in the United States, the primary business of which is the
manufacturing of batteries.
(c) Research.--
(1) Grants.--The Secretary shall carry out research
activities of the Initiative through competitively-awarded
grants to--
(A) researchers, including Industry Alliance participants;
(B) small businesses;
(C) National Laboratories; and
(D) institutions of higher education.
(2) Industry alliance.--The Secretary shall annually
solicit from the Industry Alliance--
(A) comments to identify advanced battery technology and
battery systems needs relevant to--
(i) electric drive technology; and
(ii) other applications the Secretary deems appropriate;
(B) an assessment of the progress of research activities of
the Initiative; and
(C) assistance in annually updating advanced battery
technology and battery systems roadmaps.
(d) Availability to the Public.--The information and
roadmaps developed under this section shall be available to
the public.
(e) Preference.--In making awards under this subsection,
the Secretary shall give preference to participants in the
Industry Alliance.
(f) Cost Sharing.--In carrying out this section, the
Secretary shall require cost sharing in accordance with
section 120(b) of title 23, United States Code.
(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of fiscal years 2008 through 2012.
SEC. 515. BIODIESEL STANDARDS.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency, in consultation with the Secretary of
Transportation and the Secretary of Energy, shall promulgate
regulations to ensure that all diesel-equivalent fuels
derived from renewable biomass that are introduced into
interstate commerce are tested and certified to comply with
appropriate American Society for Testing and Materials
standards.
(b) Definitions.--In this section:
(1) Biodiesel.--
(A) In general.--The term ``biodiesel'' means the monoalkyl
esters of long chain fatty acids derived from plant or animal
matter that meet--
(i) the registration requirements for fuels and fuel
additives established by the Environmental Protection Agency
under section 211 of the Clean Air Act (42 U.S.C. 7545); and
(ii) the requirements of the American Society of Testing
and Materials D6751.
(B) Inclusions.--The term ``biodiesel'' includes esters
described in subparagraph (A) derived from--
(i) animal waste, including poultry fat, poultry waste, and
other waste material; and
(ii) municipal solid waste, sludge, and oil derived from
wastewater or the treatment of wastewater.
(2) Biodiesel blend.--The term ``biodiesel blend'' means a
mixture of biodiesel and diesel fuel, including--
(A) a blend of biodiesel and diesel fuel approximately 5
percent of the content of which is biodiesel (commonly known
as ``B5''); and
(B) a blend of biodiesel and diesel fuel approximately 20
percent of the content of which is biodiesel (commonly known
as ``B20'').
SEC. 516. USE OF CIVIL PENALTIES FOR RESEARCH AND
DEVELOPMENT.
Section 32912 of title 49, United States Code, is amended
by adding at the end thereof the following:
``(e) Use of Civil Penalties.--For fiscal year 2008 and
each fiscal year thereafter, from the total amount deposited
in the general fund of the Treasury during the preceding
fiscal year from fines, penalties, and other funds obtained
through enforcement actions conducted pursuant to this
section (including funds obtained under consent decrees), the
Secretary of the Treasury, subject to the availability of
appropriations, shall--
[[Page H14309]]
``(1) transfer 50 percent of such total amount to the
account providing appropriations to the Secretary of
Transportation for the administration of this chapter, which
shall be used by the Secretary to carry out a program of
research and development into fuel saving automotive
technologies and to support rulemaking under this chapter;
and
``(2) transfer 50 percent of such total amount to the
Energy Security Fund established by section 517(a) of the
Ten-in-Ten Fuel Economy Act.''.
SEC. 517. ENERGY SECURITY FUND AND ALTERNATIVE FUEL GRANT
PROGRAM.
(a) Establishment of Fund.--
(1) In general.--There is established in the Treasury a
fund, to be known as the ``Energy Security Fund'' (referred
to in this section as the ``Fund''), consisting of--
(A) amounts transferred to the Fund under section
32912(e)(2) of title 49, United States Code; and
(B) amounts credited to the Fund under paragraph (2)(C).
(2) Investment of amounts.--
(A) In general.--The Secretary of the Treasury shall invest
in interest-bearing obligations of the United States such
portion of the Fund as is not, in the judgment of the
Secretary of the Treasury, required to meet current
withdrawals.
(B) Sale of obligations.--Any obligation acquired by the
Fund may be sold by the Secretary of the Treasury at the
market price.
(C) Credits to fund.--The interest on, and the proceeds
from the sale or redemption of, any obligations held in the
Fund shall be credited to, and form a part of, the Fund in
accordance with section 9602 of the Internal Revenue Code of
1986.
(3) Use of amounts in fund.--Amounts in the Fund shall be
made available to the Secretary of Energy, subject to the
availability of appropriations, to carry out the grant
program under subsection (b).
(b) Alternative Fuels Grant Program.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary of Energy, acting
through the Clean Cities Program of the Department of Energy,
shall establish and carry out a program under which the
Secretary shall provide grants to expand the availability to
consumers of alternative fuels (as defined in section
32901(a) of title 49, United States Code).
(2) Eligibility.--
(A) In general.--Except as provided in subparagraph (B),
any entity that is eligible to receive assistance under the
Clean Cities Program shall be eligible to receive a grant
under this subsection.
(B) Exceptions.--
(i) Certain oil companies.--A large, vertically-integrated
oil company shall not be eligible to receive a grant under
this subsection.
(ii) Prohibition of dual benefits.--An entity that receives
any other Federal funds for the construction or expansion of
alternative refueling infrastructure shall not be eligible to
receive a grant under this subsection for the construction or
expansion of the same alternative refueling infrastructure.
(C) Ensuring compliance.--Not later than 30 days after the
date of enactment of this Act, the Secretary of Energy shall
promulgate regulations to ensure that, before receiving a
grant under this subsection, an eligible entity meets
applicable standards relating to the installation,
construction, and expansion of infrastructure necessary to
increase the availability to consumers of alternative fuels
(as defined in section 32901(a) of title 49, United States
Code).
(3) Maximum amount.--
(A) Grants.--The amount of a grant provided under this
subsection shall not exceed $30,000.
(B) Amount per station.--An eligible entity shall receive
not more than $90,000 under this subsection for any station
of the eligible entity during a fiscal year.
(4) Use of funds.--
(A) In general.--A grant provided under this subsection
shall be used for the construction or expansion of
alternative fueling infrastructure.
(B) Administrative expenses.--Not more than 3 percent of
the amount of a grant provided under this subsection shall be
used for administrative expenses.
SEC. 518. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of
Transportation $25,000,000 for each of fiscal years 2009
through 2021 to carry out the provisions of chapter 329 of
title 49, United States Code.
SEC. 519. APPLICATION WITH CLEAN AIR ACT.
Nothing in this title shall be construed to conflict with
the authority provided by sections 202 and 209 of the Clean
Air Act (42 U.S.C. 7521 and 7543, respectively).
SEC. 520. ALTERNATIVE FUEL VEHICLE ACTION PLAN.
(a) In General.--The Secretary of Transportation shall,
establish and implement an action plan which takes into
consideration the availability and cost effectiveness of
alternative fuels, which will ensure that, beginning with
model year 2015, the percentage of new automobiles for sale
in the United States that are alternative fuel automobiles is
not less than 50 percent.
(b) Definitions.--In this section:
(1) Alternative fuel automobile.--The term ``alternative
fuel automobile'' means the following but not limited to--
(A) a new advanced lean burn technology motor vehicle (as
defined in section 30B(c)(3) of the Internal Revenue Code of
1986) that achieves at least 125 percent of the model year
2002 city fuel economy;
(B) an alternative fueled automobile;
(C) a flexible fuel automobile;
(D) a new qualified fuel cell motor vehicle (as defined in
section 30B(e)(4) of such Code).
(E) a new qualified hybrid motor vehicle (as defined in
section 30B(d)(3) of such Code);
(F) a plug-in hybrid automobile;
(G) an electric automobile;
(H) a hydrogen internal combustion engine automobile; and
(I) any other automobile that uses substantially new
technology and achieves at least 175 percent of the model
year 2002 city fuel economy, as determined by the Secretary
of Transportation, by regulation.
(2) Other terms.--Any term used in this section that is
defined in section 32901 of title 49, United States Code, has
the meaning given that term in that section.
SEC. 521. STUDY OF THE ADEQUACY OF TRANSPORTATION OF
DOMESTICALLY-PRODUCED RENEWABLE FUEL BY
RAILROADS AND OTHER MODES OF TRANSPORTATION.
(a) Study.--
(1) In general.--The Secretary of Transportation and the
Secretary of Energy shall jointly conduct a study of the
adequacy of transportation of domestically-produced renewable
fuels by railroad and other modes of transportation as
designated by the Secretaries.
(2) Components.--In conducting the study under paragraph
(1), the Secretaries shall--
(A) consider the adequacy of existing railroad and other
transportation infrastructure, equipment, service and
capacity to move the necessary quantities of domestically-
produced renewable fuel within the timeframes required by
section 111;
(B)(i) consider the projected costs of moving the
domestically-produced renewable fuel by railroad and other
modes transportation; and
(ii) consider the impact of the projected costs on the
marketability of the domestically-produced renewable fuel;
(C) identify current and potential impediments to the
reliable transportation of adequate supplies of domestically-
produced renewable fuel at reasonable prices, including
practices currently utilized by domestic producers, shippers,
and receivers of renewable fuels;
(D) consider whether inadequate competition exists within
and between modes of transportation for the transportation of
domestically-produced renewable fuel and, if such inadequate
competition exists, whether such inadequate competition leads
to an unfair price for the transportation of domestically-
produced renewable fuel or unacceptable service for
transportation of domestically-produced renewable fuel;
(E) consider whether Federal agencies have adequate legal
authority to address instances of inadequate competition when
inadequate competition is found to prevent domestic producers
for renewable fuels from obtaining a fair and reasonable
transportation price or acceptable service for the
transportation of domestically-produced renewable fuels;
(F) consider whether Federal agencies have adequate legal
authority to address railroad and transportation service
problems that may be resulting in inadequate supplies of
domestically-produced renewable fuel in any area of the
United States;
(G) consider what transportation infrastructure capital
expenditures may be necessary to ensure the reliable
transportation of adequate supplies of domestically-produced
renewable fuel at reasonable prices within the United States
and which public and private entities should be responsible
for making such expenditures; and
(K) provide recommendations on ways to facilitate the
reliable transportation of adequate supplies of domestically-
produced renewable fuel at reasonable prices.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretaries shall jointly submit
to the Committee on Commerce, Science and Transportation, the
Committee on Energy and Natural Resources, and the Committee
on Environment and Public Works of the Senate and the
Committee on Transportation and Infrastructure and the
Committee on Energy and Commerce of the House of
Representatives a report that describes the results of the
study conducted under subsection (a).
TITLE VI--PRICE GOUGING
SEC. 601. SHORT TITLE.
This title may be cited as the ``Petroleum Consumer Price
Gouging Protection Act''.
SEC. 602. DEFINITIONS.
In this title:
(1) Affected area.--The term ``affected area'' means an
area covered by a Presidential declaration of energy
emergency.
(2) Supplier.--The term ``supplier'' means any person
engaged in the trade or business of selling or reselling, at
retail or wholesale, or distributing crude oil, gasoline, or
petroleum distillates.
(3) Price gouging.--The term ``price gouging'' means the
charging of an unconscionably excessive price by a supplier
in an affected area.
(4) Unconscionably excessive price.--The term
``unconscionably excessive price'' means an average price
charged during an energy emergency declared by the President
in an area and for a product subject to the declaration,
that--
(A)(i)(I) constitutes a gross disparity from the average
price at which it was offered for sale in the usual course of
the supplier's business during the 30 days prior to the
President's declaration of an energy emergency; and
(II) grossly exceeds the prices at which the same or
similar crude oil gasoline or petroleum distillate was
readily obtainable by purchasers from other suppliers in the
same relevant geographic market within the affected area; or
(ii) represents an exercise of unfair leverage or
unconscionable means on the part of the supplier, during a
period of declared energy emergency; and
[[Page H14310]]
(B) is not attributable to increased wholesale or
operational costs, including replacement costs, outside the
control of the supplier, incurred in connection with the sale
of crude oil, gasoline, or petroleum distillates; and is not
attributable to local, regional, national, or international
market conditions.
(5) Commission.--The term ``Commission'' means the Federal
Trade Commission.
SEC. 603. PROHIBITION ON PRICE GOUGING DURING ENERGY
EMERGENCIES.
(a) In General.--During any energy emergency declared by
the President under section 606 of this Act, it is unlawful
for any supplier to sell, or offer to sell crude oil,
gasoline or petroleum distillates subject to that declaration
in, or for use in, the area to which that declaration applies
at an unconscionably excessive price.
(b) Factors Considered.--In determining whether a violation
of subsection (a) has occurred, there shall be taken into
account, among other factors, whether--
(1) the price charged was a price that would reasonably
exist in a competitive and freely functioning market; and
(2) the amount of gasoline or other petroleum distillate
the seller produced, distributed, or sold during the period
the Proclamation was in effect increased over the average
amount during the preceding 30 days.
SEC. 604. PROHIBITION ON MARKET MANIPULATION.
It is unlawful for any person, directly or indirectly, to
use or employ, in connection with the purchase or sale of
crude oil gasoline or petroleum distillates at wholesale, any
manipulative or deceptive device or contrivance, in
contravention of such rules and regulations as the Commission
may prescribe as necessary or appropriate in the public
interest or for the protection of United States citizens.
SEC. 605. PROHIBITION ON FALSE INFORMATION.
(a) In General.--It is unlawful for any person to report
information related to the wholesale price of crude oil
gasoline or petroleum distillates to a Federal department or
agency if--
(1) that person knew, or reasonably should have known, the
information to be false or misleading;
(2) the information was required by law to be reported; and
(3) the person intended the false or misleading data to
affect data compiled by the department or agency for
statistical or analytical purposes with respect to the market
for crude oil, gasoline, or petroleum distillates.
SEC. 606. PRESIDENTIAL DECLARATION OF ENERGY EMERGENCY.
(a) In General.--If the President finds that the health,
safety, welfare, or economic well-being of the citizens of
the United States is at risk because of a shortage or
imminent shortage of adequate supplies of crude oil, gasoline
or petroleum distillates due to a disruption in the national
distribution system for crude oil, gasoline or petroleum
distillates (including such a shortage related to a major
disaster (as defined in section 102(2) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5122(2))), or significant pricing anomalies in
national energy markets for crude oil, gasoline, or petroleum
distillates, the President may declare that a Federal energy
emergency exists.
(b) Scope and Duration.--The emergency declaration shall
specify--
(1) the period, not to exceed 30 days, for which the
declaration applies;
(2) the circumstance or condition necessitating the
declaration; and
(3) the area or region to which it applies which may not be
limited to a single State; and
(4) the product or products to which it applies.
(c) Extensions.--The President may--
(1) extend a declaration under subsection (a) for a period
of not more than 30 days;
(2) extend such a declaration more than once; and
(3) discontinue such a declaration before its expiration.
SEC. 607. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.
(a) Enforcement.--This title shall be enforced by the
Federal Trade Commission in the same manner, by the same
means, and with the same jurisdiction as though all
applicable terms of the Federal Trade Commission Act were
incorporated into and made a part of this title. In enforcing
section 603 of this Act, the Commission shall give priority
to enforcement actions concerning companies with total United
States wholesale or retail sales of crude oil, gasoline, and
petroleum distillates in excess of $500,000,000 per year but
shall not exclude enforcement actions against companies with
total United States wholesale sales of $500,000,000 or less
per year.
(b) Violation Is Treated as Unfair or Deceptive Act or
Practice.--The violation of any provision of this title shall
be treated as an unfair or deceptive act or practice
proscribed under a rule issued under section 18(a)(1)(B) of
the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(c) Commission Actions.--Following the declaration of an
energy emergency by the President under section 606 of this
Act, the Commission shall--
(1) maintain within the Commission--
(A) a toll-free hotline that a consumer may call to report
an incident of price gouging in the affected area; and
(B) a program to develop and distribute to the public
informational materials to assist residents of the affected
area in detecting, avoiding, and reporting price gouging;
(2) consult with the Attorney General, the United States
Attorney for the districts in which a disaster occurred (if
the declaration is related to a major disaster), and State
and local law enforcement officials to determine whether any
supplier in the affected area is charging or has charged an
unconscionably excessive price for crude oil, gasoline, or
petroleum distillates in the affected area; and
(3) conduct investigations as appropriate to determine
whether any supplier in the affected area has violated
section 603 of this Act, and upon such finding, take any
action the Commission determines to be appropriate to remedy
the violation.
SEC. 608. ENFORCEMENT BY STATE ATTORNEYS GENERAL.
(a) In General.--A State, as parens patriae, may bring a
civil action on behalf of its residents in an appropriate
district court of the United States to enforce the provisions
of section 603 of this Act, or to impose the civil penalties
authorized by section 609 for violations of section 603,
whenever the attorney general of the State has reason to
believe that the interests of the residents of the State have
been or are being threatened or adversely affected by a
supplier engaged in the sale or resale, at retail or
wholesale, or distribution of crude oil, gasoline or
petroleum distillates in violation of section 603 of this
Act.
(b) Notice.--The State shall serve written notice to the
Commission of any civil action under subsection (a) prior to
initiating the action. The notice shall include a copy of the
complaint to be filed to initiate the civil action, except
that if it is not feasible for the State to provide such
prior notice, the State shall provide such notice immediately
upon instituting the civil action.
(c) Authority To Intervene.--Upon receiving the notice
required by subsection (b), the Commission may intervene in
the civil action and, upon intervening--
(1) may be heard on all matters arising in such civil
action; and
(2) may file petitions for appeal of a decision in such
civil action.
(d) Construction.--For purposes of bringing any civil
action under subsection (a), nothing in this section shall
prevent the attorney general of a State from exercising the
powers conferred on the Attorney General by the laws of such
State to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or the
production of documentary and other evidence.
(e) Venue; Service of Process.--In a civil action brought
under subsection (a)--
(1) the venue shall be a judicial district in which--
(A) the defendant operates;
(B) the defendant was authorized to do business; or
(C) where the defendant in the civil action is found;
(2) process may be served without regard to the territorial
limits of the district or of the State in which the civil
action is instituted; and
(3) a person who participated with the defendant in an
alleged violation that is being litigated in the civil action
may be joined in the civil action without regard to the
residence of the person.
(f) Limitation on State Action While Federal Action Is
Pending.--If the Commission has instituted a civil action or
an administrative action for violation of this title, a State
attorney general, or official or agency of a State, may not
bring an action under this section during the pendency of
that action against any defendant named in the complaint of
the Commission or the other agency for any violation of this
title alleged in the Commission's civil or administrative
action.
(g) No Preemption.--Nothing contained in this section shall
prohibit an authorized State official from proceeding in
State court to enforce a civil or criminal statute of that
State.
SEC. 609. PENALTIES.
(a) Civil Penalty.--
(1) In general.--In addition to any penalty applicable
under the Federal Trade Commission Act, any supplier--
(A) that violates section 604 or section 605 of this Act is
punishable by a civil penalty of not more than $1,000,000;
and
(B) that violates section 603 of this Act is punishable by
a civil penalty of--
(i) not more than $500,000, in the case of an independent
small business marketer of gasoline (within the meaning of
section 324(c) of the Clean Air Act (42 U.S.C. 7625(c))); and
(ii) not more than $5,000,000 in the case of any other
supplier.
(2) Method.--The penalties provided by paragraph (1) shall
be obtained in the same manner as civil penalties imposed
under section 5 of the Federal Trade Commission Act (15
U.S.C. 45).
(3) Multiple offenses; mitigating factors.--In assessing
the penalty provided by subsection (a)--
(A) each day of a continuing violation shall be considered
a separate violation; and
(B) the court shall take into consideration, among other
factors, the seriousness of the violation and the efforts of
the person committing the violation to remedy the harm caused
by the violation in a timely manner.
(b) Criminal Penalty.--Violation of section 603 of this Act
is punishable by a fine of not more than $5,000,000,
imprisonment for not more than 5 years, or both.
SEC. 610. EFFECT ON OTHER LAWS.
(a) Other Authority of the Commission.--Nothing in this
title shall be construed to limit or affect in any way the
Commission's authority to bring enforcement actions or take
any other measure under the Federal Trade Commission Act (15
U.S.C. 41 et seq.) or any other provision of law.
(b) State Law.--Nothing in this title preempts any State
law.
TITLE VII--ENERGY DIPLOMACY AND SECURITY
SEC. 701. SHORT TITLE.
This title may be cited as the ``Energy Diplomacy and
Security Act of 2007''.
[[Page H14311]]
SEC. 702. DEFINITIONS.
In this title:
(1) Major energy producer.--The term ``major energy
producer'' means a country that--
(A) had crude oil, oil sands, or natural gas to liquids
production of 1,000,000 barrels per day or greater average in
the previous year;
(B) has crude oil, shale oil, or oil sands reserves of
6,000,000,000 barrels or greater, as recognized by the
Department of Energy;
(C) had natural gas production of 30,000,000,000 cubic
meters or greater in the previous year;
(D) has natural gas reserves of 1,250,000,000,000 cubic
meters or greater, as recognized by the Department of Energy;
or
(E) is a direct supplier of natural gas or liquefied
natural gas to the United States.
(2) Major energy consumer.--The term ``major energy
consumer'' means a country that--
(A) had an oil consumption average of 1,000,000 barrels per
day or greater in the previous year;
(B) had an oil consumption growth rate of 8 percent or
greater in the previous year;
(C) had a natural gas consumption of 30,000,000,000 cubic
meters or greater in the previous year; or
(D) had a natural gas consumption growth rate of 15 percent
or greater in the previous year.
SEC. 703. SENSE OF CONGRESS ON ENERGY DIPLOMACY AND SECURITY.
(a) Findings.--Congress makes the following findings:
(1) It is imperative to the national security and
prosperity of the United States to have reliable, affordable,
clean, sufficient, and sustainable sources of energy.
(2) United States dependence on oil imports causes
tremendous costs to the United States national security,
economy, foreign policy, military, and environmental
sustainability.
(3) Energy security is a priority for the governments of
many foreign countries and increasingly plays a central role
in the relations of the United States Government with foreign
governments. Global reserves of oil and natural gas are
concentrated in a small number of countries. Access to these
oil and natural gas supplies depends on the political will of
these producing states. Competition between governments for
access to oil and natural gas reserves can lead to economic,
political, and armed conflict. Oil exporting states have
received dramatically increased revenues due to high global
prices, enhancing the ability of some of these states to act
in a manner threatening to global stability.
(4) Efforts to combat poverty and protect the environment
are hindered by the continued predominance of oil and natural
gas in meeting global energy needs. Development of renewable
energy through sustainable practices will help lead to a
reduction in greenhouse gas emissions and enhance
international development.
(5) Cooperation on energy issues between the United States
Government and the governments of foreign countries is
critical for securing the strategic and economic interests of
the United States and of partner governments. In the current
global energy situation, the energy policies and activities
of the governments of foreign countries can have dramatic
impacts on United States energy security.
(b) Sense of Congress.--It is the sense of Congress that--
(1) United States national security requires that the
United States Government have an energy policy that pursues
the strategic goal of achieving energy security through
access to clean, affordable, sufficient, reliable, and
sustainable sources of energy;
(2) achieving energy security is a priority for United
States foreign policy and requires continued and enhanced
engagement with foreign governments and entities in a variety
of areas, including activities relating to the promotion of
alternative and renewable fuels, trade and investment in oil,
coal, and natural gas, energy efficiency, climate and
environmental protection, data transparency, advanced
scientific research, public-private partnerships, and energy
activities in international development;
(3) the President should ensure that the international
energy activities of the United States Government are given
clear focus to support the national security needs of the
United States, and to this end, there should be established a
mechanism to coordinate the implementation of United States
international energy policy among the Federal agencies
engaged in relevant agreements and activities; and
(4) the Secretary of State should ensure that energy
security is integrated into the core mission of the
Department of State, and to this end, there should be
established within the Office of the Secretary of State a
Coordinator for International Energy Affairs with
responsibility for--
(A) developing United States international energy policy in
coordination with the Department of Energy and other relevant
Federal agencies;
(B) working with appropriate United States Government
officials to develop and update analyses of the national
security implications of global energy developments;
(C) incorporating energy security priorities into the
activities of the Department;
(D) coordinating activities with relevant Federal agencies;
and
(E) coordinating energy security and other relevant
functions currently undertaken by offices within the Bureau
of Economic, Business, and Agricultural Affairs, the Bureau
of Democracy and Global Affairs, and other offices within the
Department of State.
(5) the Department of Energy should be designated as the
lead United States Government agency in charge of formulating
and coordinating the national energy security policy of the
United States, and in furtherance of these goals, there
should be established within the Department of Energy an
Assistant Secretary of Energy for Energy Security whose
responsibilities should include--
(A) directing the development of the national energy
security strategy of the United States;
(B) coordinating the national energy security policy of the
United States with the Department of Defense, the Department
of State, and the National Security Council, as appropriate,
to address the impact of, and integrate national security and
foreign policy on, the national energy security policy of the
United States;
(C) monitoring international and domestic energy
developments to gauge their impact on the national energy
security policy of the United States and implementing changes
in such policy as necessary to maintain the national security
and energy security of the United States;
(D) identifying foreign sources of energy critical to the
national energy security of the United States and developing
strategies in conjunction with the Department of State for
ensuring United States access to critical foreign energy
resources;
(E) developing strategies for reducing United States
dependence on foreign sources of energy, including demand
reduction, efficiency improvement, and development of
alternative and new sources of domestic energy; and
(F) developing strategies in conjunction with the
Department of State for working with major international
producers and consumers, including China, Russia, the
European Union, and Africa, to minimize politicization of
global energy resources while ensuring access through global
energy markets.
SEC. 704. STRATEGIC ENERGY PARTNERSHIPS.
(a) Findings.--Congress makes the following findings:
(1) United States Government partnership with foreign
governments and entities, including partnership with the
private sector, for securing reliable and sustainable energy
is imperative to ensuring United States security and economic
interests, promoting international peace and security,
expanding international development, supporting democratic
reform, fostering economic growth, and safeguarding the
environment.
(2) Democracy and freedom should be promoted globally by
partnership with foreign governments, including in particular
governments of emerging democracies such as those of Ukraine
and Georgia, in their efforts to reduce their dependency on
oil and natural gas imports.
(3) The United States Government and the governments of
foreign countries have common needs for adequate, reliable,
affordable, clean, and sustainable energy in order to ensure
national security, economic growth, and high standards of
living in their countries. Cooperation by the United States
Government with foreign governments on meeting energy
security needs is mutually beneficial. United States
Government partnership with foreign governments should
include cooperation with major energy consuming countries,
major energy producing countries, and other governments
seeking to advance global energy security through reliable
and sustainable means.
(4) The United States Government participates in hundreds
of bilateral and multilateral energy agreements and
activities with foreign governments and entities. These
agreements and activities should reflect the strategic need
for energy security.
(b) Statement of Policy.--It is the policy of the United
States--
(1) to advance global energy security through cooperation
with foreign governments and entities;
(2) to promote reliable, diverse, and sustainable sources
of all types of energy;
(3) to increase global availability of renewable and clean
sources of energy;
(4) to decrease global dependence on oil and natural gas
energy sources; and
(5) to engage in energy cooperation to strengthen strategic
partnerships that advance peace, security, and democratic
prosperity.
(c) Authority.--The Secretary of State, in coordination
with the Secretary of Energy, should immediately seek to
establish and expand strategic energy partnerships with the
governments of major energy producers and major energy
consumers, and with governments of other countries (but
excluding any countries that are ineligible to receive United
States economic or military assistance).
(d) Purposes.--The purposes of the strategic energy
partnerships established pursuant to subsection (c) are--
(1) to strengthen global relationships to promote
international peace and security through fostering
cooperation in the energy sector on a mutually beneficial
basis in accordance with respective national energy policies;
(2) to promote the policy set forth in subsection (b),
including activities to advance--
(A) the mutual understanding of each country's energy
needs, priorities, and policies, including interparliamentary
understanding;
(B) measures to respond to acute energy supply disruptions,
particularly in regard to petroleum and natural gas
resources;
(C) long-term reliability and sustainability in energy
supply;
(D) the safeguarding and safe handling of nuclear fuel;
(E) human and environmental protection;
(F) renewable energy production;
(G) access to reliable and affordable energy for
underdeveloped areas, in particular energy access for the
poor;
(H) appropriate commercial cooperation;
(I) information reliability and transparency; and
(J) research and training collaboration;
(3) to advance the national security priority of developing
sustainable and clean energy
[[Page H14312]]
sources, including through research and development related
to, and deployment of--
(A) renewable electrical energy sources, including biomass,
wind, and solar;
(B) renewable transportation fuels, including biofuels;
(C) clean coal technologies;
(D) carbon sequestration, including in conjunction with
power generation, agriculture, and forestry; and
(E) energy and fuel efficiency, including hybrids and plug-
in hybrids, flexible fuel, advanced composites, hydrogen, and
other transportation technologies; and
(4) to provide strategic focus for current and future
United States Government activities in energy cooperation to
meet the global need for energy security.
(e) Determination of Agendas.--In general, the specific
agenda with respect to a particular strategic energy
partnership, and the Federal agencies designated to implement
related activities, shall be determined by the Secretary of
State and the Secretary of Energy.
(f) Use of Current Agreements To Establish Partnerships.--
Some or all of the purposes of the strategic energy
partnerships established under subsection (c) may be pursued
through existing bilateral or multilateral agreements and
activities. Such agreements and activities shall be subject
to the reporting requirements in subsection (g).
(g) Reports Required.--
(1) Initial progress report.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of State
shall submit to the appropriate congressional committees a
report on progress made in developing the strategic energy
partnerships authorized under this section.
(2) Annual progress reports.--
(A) In general.--Not later than one year after the date of
the enactment of this Act, and annually thereafter for 20
years, the Secretary of State shall submit to the appropriate
congressional committees an annual report on agreements
entered into and activities undertaken pursuant to this
section, including international environment activities.
(B) Content.--Each report submitted under this paragraph
shall include details on--
(i) agreements and activities pursued by the United States
Government with foreign governments and entities, the
implementation plans for such agreements and progress
measurement benchmarks, United States Government resources
used in pursuit of such agreements and activities, and
legislative changes recommended for improved partnership; and
(ii) polices and actions in the energy sector of
partnership countries pertinent to United States economic,
security, and environmental interests.
SEC. 705. INTERNATIONAL ENERGY CRISIS RESPONSE MECHANISMS.
(a) Findings.--Congress makes the following findings:
(1) Cooperation between the United States Government and
governments of other countries during energy crises promotes
the national security of the United States.
(2) The participation of the United States in the
International Energy Program established under the Agreement
on an International Energy Program, done at Paris November
18, 1974 (27 UST 1685), including in the coordination of
national strategic petroleum reserves, is a national security
asset that--
(A) protects the consumers and the economy of the United
States in the event of a major disruption in petroleum
supply;
(B) maximizes the effectiveness of the United States
strategic petroleum reserve through cooperation in accessing
global reserves of various petroleum products;
(C) provides market reassurance in countries that are
members of the International Energy Program; and
(D) strengthens United States Government relationships with
members of the International Energy Program.
(3) The International Energy Agency projects that the
largest growth in demand for petroleum products, other than
demand from the United States, will come from China and
India, which are not members of the International Energy
Program. The Governments of China and India vigorously pursue
access to global oil reserves and are attempting to develop
national petroleum reserves. Participation of the Governments
of China and India in an international petroleum reserve
mechanism would promote global energy security, but such
participation should be conditional on the Governments of
China and India abiding by customary petroleum reserve
management practices.
(4) In the Western Hemisphere, only the United States and
Canada are members of the International Energy Program. The
vulnerability of most Western Hemisphere countries to supply
disruptions from political, natural, or terrorism causes may
introduce instability in the hemisphere and can be a source
of conflict, despite the existence of major oil reserves in
the hemisphere.
(5) Countries that are not members of the International
Energy Program and are unable to maintain their own national
strategic reserves are vulnerable to petroleum supply
disruption. Disruption in petroleum supply and spikes in
petroleum costs could devastate the economies of developing
countries and could cause internal or interstate conflict.
(6) The involvement of the United States Government in the
extension of international mechanisms to coordinate strategic
petroleum reserves and the extension of other emergency
preparedness measures should strengthen the current
International Energy Program.
(b) Energy Crisis Response Mechanisms With India and
China.--
(1) Authority.--The Secretary of State, in coordination
with the Secretary of Energy, should immediately seek to
establish a petroleum crisis response mechanism or mechanisms
with the Governments of China and India.
(2) Scope.--The mechanism or mechanisms established under
paragraph (1) should include--
(A) technical assistance in the development and management
of national strategic petroleum reserves;
(B) agreements for coordinating drawdowns of strategic
petroleum reserves with the United States, conditional upon
reserve holdings and management conditions established by the
Secretary of Energy;
(C) emergency demand restraint measures;
(D) fuel switching preparedness and alternative fuel
production capacity; and
(E) ongoing demand intensity reduction programs.
(3) Use of existing agreements to establish mechanism.--The
Secretary may, after consultation with Congress and in
accordance with existing international agreements, including
the International Energy Program, include China and India in
a petroleum crisis response mechanism through existing or new
agreements.
(c) Energy Crisis Response Mechanism for the Western
Hemisphere.--
(1) Authority.--The Secretary of State, in coordination
with the Secretary of Energy, should immediately seek to
establish a Western Hemisphere energy crisis response
mechanism.
(2) Scope.--The mechanism established under paragraph (1)
should include--
(A) an information sharing and coordinating mechanism in
case of energy supply emergencies;
(B) technical assistance in the development and management
of national strategic petroleum reserves within countries of
the Western Hemisphere;
(C) technical assistance in developing national programs to
meet the requirements of membership in a future international
energy application procedure as described in subsection (d);
(D) emergency demand restraint measures;
(E) energy switching preparedness and alternative energy
production capacity; and
(F) ongoing demand intensity reduction programs.
(3) Membership.--The Secretary should seek to include in
the Western Hemisphere energy crisis response mechanism
membership for each major energy producer and major energy
consumer in the Western Hemisphere and other members of the
Hemisphere Energy Cooperation Forum authorized under section
706.
(d) International Energy Program Application Procedure.--
(1) Authority.--The President should place on the agenda
for discussion at the Governing Board of the International
Energy Agency, as soon as practicable, the merits of
establishing an international energy program application
procedure.
(2) Purpose.--The purpose of such procedure is to allow
countries that are not members of the International Energy
Program to apply to the Governing Board of the International
Energy Agency for allocation of petroleum reserve stocks in
times of emergency on a grant or loan basis. Such countries
should also receive technical assistance for, and be subject
to, conditions requiring development and management of
national programs for energy emergency preparedness,
including demand restraint, fuel switching preparedness, and
development of alternative fuels production capacity.
(e) Reports Required.--
(1) Petroleum reserves.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of Energy
shall submit to the appropriate congressional committees a
report that evaluates the options for adapting the United
States national strategic petroleum reserve and the
international petroleum reserve coordinating mechanism in
order to carry out this section.
(2) Crisis response mechanisms.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of
State, in coordination with the Secretary of Energy, shall
submit to the appropriate congressional committees a report
on the status of the establishment of the international
petroleum crisis response mechanisms described in subsections
(b) and (c). The report shall include recommendations of the
Secretary of State and the Secretary of Energy for any
legislation necessary to establish or carry out such
mechanisms.
(3) Emergency application procedure.--Not later than 60
days after a discussion by the Governing Board of the
International Energy Agency of the application procedure
described under subsection (d), the President should submit
to Congress a report that describes--
(A) the actions the United States Government has taken
pursuant to such subsection; and
(B) a summary of the debate on the matter before the
Governing Board of the International Energy Agency, including
any decision that has been reached by the Governing Board
with respect to the matter.
SEC. 706. HEMISPHERE ENERGY COOPERATION FORUM.
(a) Findings.--Congress makes the following findings:
(1) The engagement of the United States Government with
governments of countries in the Western Hemisphere is a
strategic priority for reducing the potential for tension
over energy resources, maintaining and expanding reliable
energy supplies, expanding use of renewable energy, and
reducing the detrimental effects of energy import dependence
within the hemisphere. Current energy dialogues should be
expanded and refocused as needed to meet this challenge.
(2) Countries of the Western Hemisphere can most
effectively meet their common needs for energy security and
sustainability through partnership and cooperation.
Cooperation between governments on energy issues will enhance
bilateral relationships among countries of the hemisphere.
The Western Hemisphere is rich in natural resources,
including biomass, oil, natural gas, coal, and has
significant opportunity
[[Page H14313]]
for production of renewable hydro, solar, wind, and other
energies. Countries of the Western Hemisphere can provide
convenient and reliable markets for trade in energy goods and
services.
(3) Development of sustainable energy alternatives in the
countries of the Western Hemisphere can improve energy
security, balance of trade, and environmental quality and
provide markets for energy technology and agricultural
products. Brazil and the United States have led the world in
the production of ethanol, and deeper cooperation on biofuels
with other countries of the hemisphere would extend economic
and security benefits.
(4) Private sector partnership and investment in all
sources of energy is critical to providing energy security in
the Western Hemisphere.
(b) Hemisphere Energy Cooperation Forum.--
(1) Establishment.--The Secretary of State, in coordination
with the Secretary of Energy, should immediately seek to
establish a regional-based ministerial forum to be known as
the Hemisphere Energy Cooperation Forum.
(2) Purposes.--The Hemisphere Energy Cooperation Forum
should seek--
(A) to strengthen relationships between the United States
and other countries of the Western Hemisphere through
cooperation on energy issues;
(B) to enhance cooperation between major energy producers
and major energy consumers in the Western Hemisphere,
particularly among the governments of Brazil, Canada, Mexico,
the United States, and Venezuela;
(C) to ensure that energy contributes to the economic,
social, and environmental enhancement of the countries of the
Western Hemisphere;
(D) to provide an opportunity for open dialogue and joint
commitments between member governments and with private
industry; and
(E) to provide participating countries the flexibility
necessary to cooperatively address broad challenges posed to
the energy supply of the Western Hemisphere that are
practical in policy terms and politically acceptable.
(3) Activities.--The Hemisphere Energy Cooperation Forum
should implement the following activities:
(A) An Energy Crisis Initiative that will establish
measures to respond to temporary energy supply disruptions,
including through--
(i) strengthening sea-lane and infrastructure security;
(ii) implementing a real-time emergency information sharing
system;
(iii) encouraging members to have emergency mechanisms and
contingency plans in place; and
(iv) establishing a Western Hemisphere energy crisis
response mechanism as authorized under section 705(c).
(B) An Energy Sustainability Initiative to facilitate long-
term supply security through fostering reliable supply
sources of fuels, including development, deployment, and
commercialization of technologies for sustainable renewable
fuels within the region, including activities that--
(i) promote production and trade in sustainable energy,
including energy from biomass;
(ii) facilitate investment, trade, and technology
cooperation in energy infrastructure, petroleum products,
natural gas (including liquefied natural gas), energy
efficiency (including automotive efficiency), clean fossil
energy, renewable energy, and carbon sequestration;
(iii) promote regional infrastructure and market
integration;
(iv) develop effective and stable regulatory frameworks;
(v) develop renewable fuels standards and renewable
portfolio standards;
(vi) establish educational training and exchange programs
between member countries; and
(vii) identify and remove barriers to trade in technology,
services, and commodities.
(C) An Energy for Development Initiative to promote energy
access for underdeveloped areas through energy policy and
infrastructure development, including activities that--
(i) increase access to energy services for the poor;
(ii) improve energy sector market conditions;
(iii) promote rural development though biomass energy
production and use;
(iv) increase transparency of, and participation in, energy
infrastructure projects;
(v) promote development and deployment of technology for
clean and sustainable energy development, including biofuel
and clean coal technologies; and
(vi) facilitate use of carbon sequestration methods in
agriculture and forestry and linking greenhouse gas emissions
reduction programs to international carbon markets.
(c) Hemisphere Energy Industry Group.--
(1) Authority.--The Secretary of State, in coordination
with the Secretary of Commerce and the Secretary of Energy,
should approach the governments of other countries in the
Western Hemisphere to seek cooperation in establishing a
Hemisphere Energy Industry Group, to be coordinated by the
United States Government, involving industry representatives
and government representatives from the Western Hemisphere.
(2) Purpose.--The purpose of the forum should be to
increase public-private partnerships, foster private
investment, and enable countries of the Western Hemisphere to
devise energy agendas compatible with industry capacity and
cognizant of industry goals.
(3) Topics of dialogues.--Topics for the forum should
include--
(A) promotion of a secure investment climate;
(B) development and deployment of biofuels and other
alternative fuels and clean electrical production facilities,
including clean coal and carbon sequestration;
(C) development and deployment of energy efficient
technologies and practices, including in the industrial,
residential, and transportation sectors;
(D) investment in oil and natural gas production and
distribution;
(E) transparency of energy production and reserves data;
(F) research promotion; and
(G) training and education exchange programs.
(d) Annual Report.--The Secretary of State, in coordination
with the Secretary of Energy, shall submit to the appropriate
congressional committees an annual report on the
implementation of this section, including the strategy and
benchmarks for measurement of progress developed under this
section.
SEC. 707. NATIONAL SECURITY COUNCIL REORGANIZATION.
Section 101(a) of the National Security Act of 1947 (50
U.S.C. 402(a)) is amended--
(1) by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively; and
(2) by inserting after paragraph (4) the following:
``(5) the Secretary of Energy;''.
SEC. 708. ANNUAL NATIONAL ENERGY SECURITY STRATEGY REPORT.
(a) Reports.--
(1) In general.--Subject to paragraph (2), on the date on
which the President submits to Congress the budget for the
following fiscal year under section 1105 of title 31, United
States Code, the President shall submit to Congress a
comprehensive report on the national energy security of the
United States.
(2) New presidents.--In addition to the reports required
under paragraph (1), the President shall submit a
comprehensive report on the national energy security of the
United States by not later than 150 days after the date on
which the President assumes the office of President after a
presidential election.
(b) Contents.--Each report under this section shall
describe the national energy security strategy of the United
States, including a comprehensive description of--
(1) the worldwide interests, goals, and objectives of the
United States that are vital to the national energy security
of the United States;
(2) the foreign policy, worldwide commitments, and national
defense capabilities of the United States necessary--
(A) to deter political manipulation of world energy
resources; and
(B) to implement the national energy security strategy of
the United States;
(3) the proposed short-term and long-term uses of the
political, economic, military, and other authorities of the
United States--
(A) to protect or promote energy security; and
(B) to achieve the goals and objectives described in
paragraph (1);
(4) the adequacy of the capabilities of the United States
to protect the national energy security of the United States,
including an evaluation of the balance among the capabilities
of all elements of the national authority of the United
States to support the implementation of the national energy
security strategy; and
(5) such other information as the President determines to
be necessary to inform Congress on matters relating to the
national energy security of the United States.
(c) Classified and Unclassified Form.--Each national energy
security strategy report shall be submitted to Congress in--
(1) a classified form; and
(2) an unclassified form.
SEC. 709. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this title, the term ``appropriate congressional
committees'' means the Committee on Foreign Relations and the
Committee on Energy and Natural Resources of the Senate and
the Committee on Foreign Affairs and the Committee on Energy
and Commerce of the House of Representatives.
SEC. 710. NO OIL PRODUCING AND EXPORTING CARTELS ACT OF 2007.
(a) Short Title.--This section may be cited as the ``No Oil
Producing and Exporting Cartels Act of 2007'' or ``NOPEC''.
(b) Sherman Act.--The Sherman Act (15 U.S.C. 1 et seq.) is
amended by adding after section 7 the following:
``SEC. 7A. OIL PRODUCING CARTELS.
``(a) In General.--It shall be illegal and a violation of
this Act for any foreign state, or any instrumentality or
agent of any foreign state, to act collectively or in
combination with any other foreign state, any instrumentality
or agent of any other foreign state, or any other person,
whether by cartel or any other association or form of
cooperation or joint action--
``(1) to limit the production or distribution of oil,
natural gas, or any other petroleum product;
``(2) to set or maintain the price of oil, natural gas, or
any petroleum product; or
``(3) to otherwise take any action in restraint of trade
for oil, natural gas, or any petroleum product;
when such action, combination, or collective action has a
direct, substantial, and reasonably foreseeable effect on the
market, supply, price, or distribution of oil, natural gas,
or other petroleum product in the United States.
``(b) Sovereign Immunity.--A foreign state engaged in
conduct in violation of subsection (a) shall not be immune
under the doctrine of sovereign immunity from the
jurisdiction or judgments of the courts of the United States
in any action brought to enforce this section.
``(c) Inapplicability of Act of State Doctrine.--No court
of the United States shall decline, based on the act of state
doctrine, to make a determination on the merits in an action
brought under this section.
``(d) Enforcement.--The Attorney General of the United
States may bring an action to enforce this section in any
district court of the
[[Page H14314]]
United States as provided under the antitrust laws.''.
(c) Sovereign Immunity.--Section 1605(a) of title 28,
United States Code, is amended--
(1) in paragraph (6), by striking ``or'' after the
semicolon;
(2) in paragraph (7), by striking the period and inserting
``; or''; and
(3) by adding at the end the following:
``(8) in which the action is brought under section 7A of
the Sherman Act.''.
SEC. 711. CONVENTION ON SUPPLEMENTARY COMPENSATION FOR
NUCLEAR DAMAGE CONTINGENT COST ALLOCATION.
(a) Findings and Purpose.--
(1) Findings.--Congress finds that--
(A) section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210) (commonly known as the ``Price-Anderson Act'')--
(i) provides a predictable legal framework necessary for
nuclear projects; and
(ii) ensures prompt and equitable compensation in the event
of a nuclear incident in the United States;
(B) section 170 of that Act, in effect, provides operators
of nuclear powerplants with insurance for damage arising out
of a nuclear incident and funds the insurance primarily
through the assessment of a retrospective premium from each
operator after the occurrence of a nuclear incident;
(C) the Convention on Supplementary Compensation for
Nuclear Damage, done at Vienna on September 12, 1997, will
establish a global system--
(i) to provide a predictable legal framework necessary for
nuclear energy projects; and
(ii) to ensure prompt and equitable compensation in the
event of a nuclear incident;
(D) the Convention benefits United States nuclear suppliers
that face potentially unlimited liability for a nuclear
incidents outside the coverage of section 170 of the Atomic
Energy Act of 1954 (42 U.S.C. 2210) by replacing a
potentially open-ended liability with a predictable liability
regime that, in effect, provides nuclear suppliers with
insurance for damage arising out of such an incident;
(E) the Convention also benefits United States nuclear
facility operators that may be publicly liable for a Price-
Anderson incident by providing an additional early source for
a Price-Anderson incident by providing an additional early
source of funds to compensate damage arising out of the
Price-Anderson incident;
(F) the combined operation of the Convention, section 170
of the Atomic Energy Act of 1954 (42 U.S.C. 2210), and this
section will augment the quantity of assured funds available
for victims in a wider variety of nuclear incidents while
reducing the potential liability of United States suppliers
without increasing potential costs to United States
operators;
(G) the cost of those benefits is the obligation of the
United States to contribute to the supplementary compensation
fund established by the Convention;
(H) any such contribution should be funded in a manner that
neither upsets settled expectations based on the liability
regime established under section 170 of the Atomic Energy Act
of 1954 (42 U.S.C. 2210) nor shifts to Federal taxpayers
liability risks for nuclear incidents at foreign
installations;
(I) with respect to a Price-Anderson incident, funds
already available under section 170 of the Atomic Energy Act
of 1954 (42 U.S.C. 2210) should be used; and
(J) with respect to a nuclear incident outside the United
States not covered by section 170 of the Atomic Energy Act of
1954 (42 U.S.C. 2210), a retrospective premium should be
prorated among nuclear suppliers relieved from potential
liability for which insurance is not available.
(2) Purpose.--The purpose of this section is to allocate
the contingent costs associated with participation by the
United States in the international nuclear liability
compensation system established by the Convention on
Supplementary Compensation for Nuclear Damage, done at Vienna
on September 12, 1997--
(A) with respect to a Price-Anderson incident, by using
funds made available under section 170 of the Atomic Energy
Act of 1954 (42 U.S.C. 2210) to cover the contingent costs in
a manner that neither increases the burdens nor decreases the
benefits under section 170 of that Act; and
(B) with respect to a covered incident outside the United
States that is not a Price-Anderson incident, by allocating
the contingent costs equitably, on the basis of risk, among
the class of nuclear suppliers relieved by the Convention
from the risk of potential liability resulting from any
covered incident outside the United States.
(b) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Nuclear
Regulatory Commission.
(2) Contingent cost.--The term ``contingent cost'' means
the cost to the United States in the event of a covered
incident the amount of which is equal to the amount of funds
the United States is obligated to make available under
paragraph 1(b) of Article III of the Convention.
(3) Convention.--The term ``Convention'' means the
Convention on Supplementary Compensation for Nuclear Damage,
done at Vienna on September 12, 1997.
(4) Covered incident.--The term ``covered incident'' means
a nuclear incident the occurrence of which results in a
request for funds pursuant to Article VII of the Convention.
(5) Covered installation.--The term ``covered
installation'' means a nuclear installation at which the
occurrence of a nuclear incident could result in a request
for funds under Article VII of the Convention.
(6) Covered person.--
(A) In general.--The term ``covered person'' means--
(i) a United States person; and
(ii) an individual or entity (including an agency or
instrumentality of a foreign country) that--
(I) is located in the United States; or
(II) carries out an activity in the United States.
(B) Exclusions.--The term ``covered person'' does not
include--
(i) the United States; or
(ii) any agency or instrumentality of the United States.
(7) Nuclear supplier.--The term ``nuclear supplier'' means
a covered person (or a successor in interest of a covered
person) that--
(A) supplies facilities, equipment, fuel, services, or
technology pertaining to the design, construction, operation,
or decommissioning of a covered installation; or
(B) transports nuclear materials that could result in a
covered incident.
(8) Price-anderson incident.--The term ``Price-Anderson
incident'' means a covered incident for which section 170 of
the Atomic Energy Act of 1954 (42 U.S.C. 2210) would make
funds available to compensate for public liability (as
defined in section 11 of that Act (42 U.S.C. 2014)).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(10) United states.--
(A) In general.--The term ``United States'' has the meaning
given the term in section 11 of the Atomic Energy Act of 1954
(42 U.S.C. 2014).
(B) Inclusions.--The term ``United States'' includes--
(i) the Commonwealth of Puerto Rico;
(ii) any other territory or possession of the United
States;
(iii) the Canal Zone; and
(iv) the waters of the United States territorial sea under
Presidential Proclamation Number 5928, dated December 27,
1988 (43 U.S.C. 1331 note).
(11) United states person.--The term ``United States
person'' means--
(A) any individual who is a resident, national, or citizen
of the United States (other than an individual residing
outside of the United States and employed by a person who is
not a United States person); and
(B) any corporation, partnership, association, joint stock
company, business trust, unincorporated organization, or sole
proprietorship that is organized under the laws of the United
States.
(c) Use of Price-Anderson Funds.--
(1) In general.--Funds made available under section 170 of
the Atomic Energy Act of 1954 (42 U.S.C. 2210) shall be used
to cover the contingent cost resulting from any Price-
Anderson incident.
(2) Effect.--The use of funds pursuant to paragraph (1)
shall not reduce the limitation on public liability
established under section 170 e. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(e)).
(d) Effect on Amount of Public Liability.--
(1) In general.--Funds made available to the United States
under Article VII of the Convention with respect to a Price-
Anderson incident shall be used to satisfy public liability
resulting from the Price-Anderson incident.
(2) Amount.--The amount of public liability allowable under
section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210)
relating to a Price-Anderson incident under paragraph (1)
shall be increased by an amount equal to the difference
between--
(A) the amount of funds made available for the Price-
Anderson incident under Article VII of the Convention; and
(B) the amount of funds used under subsection (c) to cover
the contingent cost resulting from the Price-Anderson
incident.
(e) Retrospective Risk Pooling Program.--
(1) In general.--Except as provided in paragraph (2), each
nuclear supplier shall participate in a retrospective risk
pooling program in accordance with this section to cover the
contingent cost resulting from a covered incident outside the
United States that is not a Price-Anderson incident.
(2) Deferred payment.--
(A) In general.--The obligation of a nuclear supplier to
participate in the retrospective risk pooling program shall
be deferred until the United States is called on to provide
funds pursuant to Article VII of the Convention with respect
to a covered incident that is not a Price-Anderson incident.
(B) Amount of deferred payment.--The amount of a deferred
payment of a nuclear supplier under subparagraph (A) shall be
based on the risk-informed assessment formula determined
under subparagraph (C).
(C) Risk-informed assessment formula.--
(i) In general.--Not later than 3 years after the date of
enactment of this Act, and every 5 years thereafter, the
Secretary shall, by regulation, determine the risk-informed
assessment formula for the allocation among nuclear suppliers
of the contingent cost resulting from a covered incident that
is not a Price-Anderson incident, taking into account risk
factors such as--
(I) the nature and intended purpose of the goods and
services supplied by each nuclear supplier to each covered
installation outside the United States;
(II) the quantity of the goods and services supplied by
each nuclear supplier to each covered installation outside
the United States;
(III) the hazards associated with the supplied goods and
services if the goods and services fail to achieve the
intended purposes;
(IV) the hazards associated with the covered installation
outside the United States to which the goods and services are
supplied;
(V) the legal, regulatory, and financial infrastructure
associated with the covered installation outside the United
States to which the goods and services are supplied; and
(VI) the hazards associated with particular forms of
transportation.
[[Page H14315]]
(ii) Factors for consideration.--In determining the
formula, the Secretary may--
(I) exclude--
(aa) goods and services with negligible risk;
(bb) classes of goods and services not intended
specifically for use in a nuclear installation;
(cc) a nuclear supplier with a de minimis share of the
contingent cost; and
(dd) a nuclear supplier no longer in existence for which
there is no identifiable successor; and
(II) establish the period on which the risk assessment is
based.
(iii) Application.--In applying the formula, the Secretary
shall not consider any covered installation or transportation
for which funds would be available under section 170 of the
Atomic Energy Act of 1954 (42 U.S.C. 2210).
(iv) Report.--Not later than 5 years after the date of
enactment of this Act and every 5 years thereafter, the
Secretary shall submit to the Committee on Environment and
Public Works of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report on whether
there is a need for continuation or amendment of this
section, taking into account the effects of the
implementation of the Convention on the United States nuclear
industry and suppliers.
(f) Reporting.--
(1) Collection of information.--
(A) In general.--The Secretary may collect information
necessary for developing and implementing the formula for
calculating the deferred payment of a nuclear supplier under
subsection (e)(2).
(B) Provision of information.--Each nuclear supplier and
other appropriate persons shall make available to the
Secretary such information, reports, records, documents, and
other data as the Secretary determines, by regulation, to be
necessary or appropriate to develop and implement the formula
under subsection (e)(2)(C).
(2) Private insurance.--The Secretary shall make available
to nuclear suppliers, and insurers of nuclear suppliers,
information to support the voluntary establishment and
maintenance of private insurance against any risk for which
nuclear suppliers may be required to pay deferred payments
under this section.
(g) Effect on Liability.--Nothing in any other law
(including regulations) limits liability for a covered
incident to an amount equal to less than the amount
prescribed in paragraph 1(a) of Article IV of the Convention,
unless the law--
(1) specifically refers to this section; and
(2) explicitly repeals, alters, amends, modifies, impairs,
displaces, or supersedes the effect of this subsection.
(h) Payments to and by the United States.--
(1) Action by nuclear suppliers.--
(A) Notification.--In the case of a request for funds under
Article VII of the Convention resulting from a covered
incident that is not a Price-Anderson incident, the Secretary
shall notify each nuclear supplier of the amount of the
deferred payment required to be made by the nuclear supplier.
(B) Payments.--
(i) In general.--Except as provided in clause (ii), not
later than 60 days after receipt of a notification under
subparagraph (A), a nuclear supplier shall pay to the general
fund of the Treasury the deferred payment of the nuclear
supplier required under subparagraph (A).
(ii) Annual payments.--A nuclear supplier may elect to
prorate payment of the deferred payment required under
subparagraph (A) in 5 equal annual payments (including
interest on the unpaid balance at the prime rate prevailing
at the time the first payment is due).
(C) Vouchers.--A nuclear supplier shall submit payment
certification vouchers to the Secretary of the Treasury in
accordance with section 3325 of title 31, United States Code.
(2) Use of funds.--
(A) In general.--Amounts paid into the Treasury under
paragraph (1) shall be available to the Secretary of the
Treasury, without further appropriation and without fiscal
year limitation, for the purpose of making the contributions
of public funds required to be made by the United States
under the Convention.
(B) Action by secretary of treasury.--The Secretary of the
Treasury shall pay the contribution required under the
Convention to the court of competent jurisdiction under
Article XIII of the Convention with respect to the applicable
covered incident.
(3) Failure to pay.--If a nuclear supplier fails to make a
payment required under this subsection, the Secretary may
take appropriate action to recover from the nuclear
supplier--
(A) the amount of the payment due from the nuclear
supplier;
(B) any applicable interest on the payment; and
(C) a penalty of not more than twice the amount of the
deferred payment due from the nuclear supplier.
(i) Limitation on Judicial Review; Cause of Action.--
(1) Limitation on judicial review.--
(A) In general.--In any civil action arising under the
Convention over which Article XIII of the Convention grants
jurisdiction to the courts of the United States, any appeal
or review by writ of mandamus or otherwise with respect to a
nuclear incident that is not a Price-Anderson incident shall
be in accordance with chapter 83 of title 28, United States
Code, except that the appeal or review shall occur in the
United States Court of Appeals for the District of Columbia
Circuit.
(B) Supreme court jurisdiction.--Nothing in this paragraph
affects the jurisdiction of the Supreme Court of the United
States under chapter 81 of title 28, United States Code.
(2) Cause of action.--
(A) In general.--Subject to subparagraph (B), in any civil
action arising under the Convention over which Article XIII
of the Convention grants jurisdiction to the courts of the
United States, in addition to any other cause of action that
may exist, an individual or entity shall have a cause of
action against the operator to recover for nuclear damage
suffered by the individual or entity.
(B) Requirement.--Subparagraph (A) shall apply only if the
individual or entity seeks a remedy for nuclear damage (as
defined in Article I of the Convention) that was caused by a
nuclear incident (as defined in Article I of the Convention)
that is not a Price-Anderson incident.
(C) Effect of paragraph.--Nothing in this paragraph limits,
modifies, extinguishes, or otherwise affects any cause of
action that would have existed in the absence of enactment of
this paragraph.
(j) Right of Recourse.--This section does not provide to an
operator of a covered installation any right of recourse
under the Convention.
(k) Protection of Sensitive United States Information.--
Nothing in the Convention or this section requires the
disclosure of--
(1) any data that, at any time, was Restricted Data (as
defined in section 11 of the Atomic Energy Act of 1954 (42
U.S.C. 2014));
(2) information relating to intelligence sources or methods
protected by section 102A(i) of the National Security Act of
1947 (50 U.S.C. 403-1(i)); or
(3) national security information classified under
Executive Order 12958 (50 U.S.C. 435 note; relating to
classified national security information) (or a successor
regulation).
(l) Regulations.--
(1) In general.--The Secretary or the Commission, as
appropriate, may prescribe regulations to carry out section
170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and
this section.
(2) Requirement.--Rules prescribed under this subsection
shall ensure, to the maximum extent practicable, that--
(A) the implementation of section 170 of the Atomic Energy
Act of 1954 (42 U.S.C. 2210) and this section is consistent
and equitable; and
(B) the financial and operational burden on a Commission
licensee in complying with section 170 of that Act is not
greater as a result of the enactment of this section.
(3) Applicability of provision.--Section 553 of title 5,
United States Code, shall apply with respect to the
promulgation of regulations under this subsection.
(4) Effect of subsection.--The authority provided under
this subsection is in addition to, and does not impair or
otherwise affect, any other authority of the Secretary or the
Commission to prescribe regulations.
(m) Effective Date.--This section takes effect on the date
of enactment of this Act.
TITLE VIII--MISCELLANEOUS
SEC. 801. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE
DEVELOPMENT OF COMBINED HEAT AND POWER
FACILITIES.
(a) Study.--
(1) In general.--The Secretary, in consultation with the
States and other appropriate entities, shall conduct a study
of the laws (including regulations) affecting the siting of
privately owned electric distribution wires on and across
public rights-of-way.
(2) Requirements.--The study under paragraph (1) shall
include--
(A) an evaluation of--
(i) the purposes of the laws; and
(ii) the effect the laws have on the development of
combined heat and power facilities;
(B) a determination of whether a change in the laws would
have any operating, reliability, cost, or other impacts on
electric utilities and the customers of the electric
utilities; and
(C) an assessment of--
(i) whether privately owned electric distribution wires
would result in duplicative facilities; and
(ii) whether duplicative facilities are necessary or
desirable.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
a report that describes the results of the study conducted
under subsection (a).
Amend the title so as to read: ``An Act to move the United
States toward greater energy independence and security, to
increase the production of clean renewable fuels, to protect
consumers from price gouging, to increase the energy
efficiency of products, buildings, and vehicles, to promote
research on and deploy greenhouse gas capture and storage
options, and to improve the energy performance of the Federal
Government, and for other purposes.''.
Motion Offered by Mr. Dingell
Mr. DINGELL. Mr. Speaker, pursuant to House Resolution 846, I have a
motion at the desk.
The SPEAKER pro tempore. The Clerk will designate the motion.
The text of the motion is as follows:
Mr. Dingell moves that the House concur in each of the
Senate amendments to H.R. 6 with the respective amendment
printed in the report of the Committee on Rules accompanying
such resolution.
The text of the House amendments to the Senate amendments is as
follows:
House amendments to Senate amendments:
In lieu of the matter proposed to be inserted for the text
of the bill, H.R. 6, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Independence and Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
[[Page H14316]]
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Relationship to other law.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
Subtitle A--Increased Corporate Average Fuel Economy Standards
Sec. 101. Short title.
Sec. 102. Average fuel economy standards for automobiles and certain
other vehicles.
Sec. 103. Definitions.
Sec. 104. Credit trading program.
Sec. 105. Consumer information.
Sec. 106. Continued applicability of existing standards.
Sec. 107. National Academy of Sciences studies.
Sec. 108. National Academy of Sciences study of medium-duty and heavy-
duty truck fuel economy.
Sec. 109. Extension of flexible fuel vehicle credit program.
Sec. 110. Periodic review of accuracy of fuel economy labeling
procedures.
Sec. 111. Consumer tire information.
Sec. 112. Use of civil penalties for research and development.
Sec. 113. Exemption from separate calculation requirement.
Subtitle B--Improved Vehicle Technology
Sec. 131. Transportation electrification.
Sec. 132. Domestic manufacturing conversion grant program.
Sec. 133. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 134. Loan guarantees for fuel-efficient automobile parts
manufacturers.
Sec. 135. Advanced battery loan guarantee program.
Sec. 136. Advanced technology vehicles manufacturing incentive program.
Subtitle C--Federal Vehicle Fleets
Sec. 141. Federal vehicle fleets.
Sec. 142. Federal fleet conservation requirements.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS
Subtitle A--Renewable Fuel Standard
Sec. 201. Definitions.
Sec. 202. Renewable fuel standard.
Sec. 203. Study of impact of Renewable Fuel Standard.
Sec. 204. Environmental and resource conservation impacts.
Sec. 205. Biomass based diesel and biodiesel labeling.
Sec. 206. Study of credits for use of renewable electricity in electric
vehicles.
Sec. 207. Grants for production of advanced biofuels.
Sec. 208. Integrated consideration of water quality in determinations
on fuels and fuel additives.
Sec. 209. Anti-backsliding.
Sec. 210. Effective date, savings provision, and transition rules.
Subtitle B--Biofuels Research and Development
Sec. 221. Biodiesel.
Sec. 222. Biogas.
Sec. 223. Grants for biofuel production research and development in
certain States.
Sec. 224. Biorefinery energy efficiency.
Sec. 225. Study of optimization of flexible fueled vehicles to use E-85
fuel.
Sec. 226. Study of engine durability and performance associated with
the use of biodiesel.
Sec. 227. Study of optimization of biogas used in natural gas vehicles.
Sec. 228. Algal biomass.
Sec. 229. Biofuels and biorefinery information center.
Sec. 230. Cellulosic ethanol and biofuels research.
Sec. 231. Bioenergy research and development, authorization of
appropriation.
Sec. 232. Environmental research and development.
Sec. 233. Bioenergy research centers.
Sec. 234. University based research and development grant program.
Subtitle C--Biofuels Infrastructure
Sec. 241. Prohibition on franchise agreement restrictions related to
renewable fuel infrastructure.
Sec. 242. Renewable fuel dispenser requirements.
Sec. 243. Ethanol pipeline feasibility study.
Sec. 244. Renewable fuel infrastructure grants.
Sec. 245. Study of the adequacy of transportation of domestically-
produced renewable fuel by railroads and other modes of
transportation.
Sec. 246. Federal fleet fueling centers.
Sec. 247. Standard specifications for biodiesel.
Sec. 248. Biofuels distribution and advanced biofuels infrastructure.
Subtitle D--Environmental Safeguards
Sec. 251. Waiver for fuel or fuel additives.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING
Subtitle A--Appliance Energy Efficiency
Sec. 301. External power supply efficiency standards.
Sec. 302. Updating appliance test procedures.
Sec. 303. Residential boilers.
Sec. 304. Furnace fan standard process.
Sec. 305. Improving schedule for standards updating and clarifying
State authority.
Sec. 306. Regional standards for furnaces, central air conditioners,
and heat pumps.
Sec. 307. Procedure for prescribing new or amended standards.
Sec. 308. Expedited rulemakings.
Sec. 309. Battery chargers.
Sec. 310. Standby mode.
Sec. 311. Energy standards for home appliances.
Sec. 312. Walk-in coolers and walk-in freezers.
Sec. 313. Electric motor efficiency standards.
Sec. 314. Standards for single package vertical air conditioners and
heat pumps.
Sec. 315. Improved energy efficiency for appliances and buildings in
cold climates.
Sec. 316. Technical corrections.
Subtitle B--Lighting Energy Efficiency
Sec. 321. Efficient light bulbs.
Sec. 322. Incandescent reflector lamp efficiency standards.
Sec. 323. Public building energy efficient and renewable energy
systems.
Sec. 324. Metal halide lamp fixtures.
Sec. 325. Energy efficiency labeling for consumer electronic products.
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
Sec. 401. Definitions.
Subtitle A--Residential Building Efficiency
Sec. 411. Reauthorization of weatherization assistance program.
Sec. 412. Study of renewable energy rebate programs.
Sec. 413. Energy code improvements applicable to manufactured housing.
Subtitle B--High-Performance Commercial Buildings
Sec. 421. Commercial high-performance green buildings.
Sec. 422. Zero Net Energy Commercial Buildings Initiative.
Sec. 423. Public outreach.
Subtitle C--High-Performance Federal Buildings
Sec. 431. Energy reduction goals for Federal buildings.
Sec. 432. Management of energy and water efficiency in Federal
buildings.
Sec. 433. Federal building energy efficiency performance standards.
Sec. 434. Management of Federal building efficiency .
Sec. 435. Leasing.
Sec. 436. High-performance green Federal buildings.
Sec. 437. Federal green building performance.
Sec. 438. Storm water runoff requirements for Federal development
projects.
Sec. 439. Cost-effective technology acceleration program.
Sec. 440. Authorization of appropriations.
Sec. 441. Public building life-cycle costs.
Subtitle D--Industrial Energy Efficiency
Sec. 451. Industrial energy efficiency.
Sec. 452. Energy-intensive industries program.
Sec. 453. Energy efficiency for data center buildings.
Subtitle E--Healthy High-Performance Schools
Sec. 461. Healthy high-performance schools.
Sec. 462. Study on indoor environmental quality in schools.
Subtitle F--Institutional Entities
Sec. 471. Energy sustainability and efficiency grants and loans for
institutions.
Subtitle G--Public and Assisted Housing
Sec. 481. Application of International Energy Conservation Code to
public and assisted housing.
Subtitle H--General Provisions
Sec. 491. Demonstration project.
Sec. 492. Research and development.
Sec. 493. Environmental Protection Agency demonstration grant program
for local governments.
Sec. 494. Green Building Advisory Committee.
Sec. 495. Advisory Committee on Energy Efficiency Finance.
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
Subtitle A--United States Capitol Complex
Sec. 501. Capitol complex photovoltaic roof feasibility studies.
Sec. 502. Capitol complex E-85 refueling station.
Sec. 503. Energy and environmental measures in Capitol complex master
plan.
Sec. 504. Promoting maximum efficiency in operation of Capitol power
plant.
Sec. 505. Capitol power plant carbon dioxide emissions feasibility
study and demonstration projects.
Subtitle B--Energy Savings Performance Contracting
Sec. 511. Authority to enter into contracts; reports.
Sec. 512. Financing flexibility.
Sec. 513. Promoting long-term energy savings performance contracts and
verifying savings.
Sec. 514. Permanent reauthorization.
[[Page H14317]]
Sec. 515. Definition of energy savings.
Sec. 516. Retention of savings.
Sec. 517. Training Federal contracting officers to negotiate energy
efficiency contracts.
Sec. 518. Study of energy and cost savings in nonbuilding applications.
Subtitle C--Energy Efficiency in Federal Agencies
Sec. 521. Installation of photovoltaic system at Department of Energy
headquarters building.
Sec. 522. Prohibition on incandescent lamps by Coast Guard.
Sec. 523. Standard relating to solar hot water heaters.
Sec. 524. Federally-procured appliances with standby power.
Sec. 525. Federal procurement of energy efficient products.
Sec. 526. Procurement and acquisition of alternative fuels.
Sec. 527. Government efficiency status reports.
Sec. 528. OMB government efficiency reports and scorecards.
Sec. 529. Electricity sector demand response.
Subtitle D--Energy Efficiency of Public Institutions
Sec. 531. Reauthorization of State energy programs.
Sec. 532. Utility energy efficiency programs.
Subtitle E--Energy Efficiency and Conservation Block Grants
Sec. 541. Definitions.
Sec. 542. Energy Efficiency and Conservation Block Grant Program.
Sec. 543. Allocation of funds.
Sec. 544. Use of funds.
Sec. 545. Requirements for eligible entities.
Sec. 546. Competitive grants.
Sec. 547. Review and evaluation.
Sec. 548. Funding.
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
Subtitle A--Solar Energy
Sec. 601. Short title.
Sec. 602. Thermal energy storage research and development program.
Sec. 603. Concentrating solar power commercial application studies.
Sec. 604. Solar energy curriculum development and certification grants.
Sec. 605. Daylighting systems and direct solar light pipe technology.
Sec. 606. Solar Air Conditioning Research and Development Program.
Sec. 607. Photovoltaic demonstration program.
Subtitle B--Geothermal Energy
Sec. 611. Short title.
Sec. 612. Definitions.
Sec. 613. Hydrothermal research and development.
Sec. 614. General geothermal systems research and development.
Sec. 615. Enhanced geothermal systems research and development.
Sec. 616. Geothermal energy production from oil and gas fields and
recovery and production of geopressured gas resources.
Sec. 617. Cost sharing and proposal evaluation.
Sec. 618. Center for geothermal technology transfer.
Sec. 619. GeoPowering America.
Sec. 620. Educational pilot program.
Sec. 621. Reports.
Sec. 622. Applicability of other laws.
Sec. 623. Authorization of appropriations.
Sec. 624. International geothermal energy development.
Sec. 625. High cost region geothermal energy grant program.
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies
Sec. 631. Short title.
Sec. 632. Definition.
Sec. 633. Marine and hydrokinetic renewable energy research and
development.
Sec. 634. National Marine Renewable Energy Research, Development, and
Demonstration Centers.
Sec. 635. Applicability of other laws.
Sec. 636. Authorization of appropriations.
Subtitle D--Energy Storage for Transportation and Electric Power
Sec. 641. Energy storage competitiveness.
Subtitle E--Miscellaneous Provisions
Sec. 651. Lightweight materials research and development.
Sec. 652. Commercial insulation demonstration program.
Sec. 653. Technical criteria for clean coal power Initiative.
Sec. 654. H-Prize.
Sec. 655. Bright Tomorrow Lighting Prizes.
Sec. 656. Renewable Energy innovation manufacturing partnership.
TITLE VII--CARBON CAPTURE AND SEQUESTRATION
Subtitle A--Carbon Capture and Sequestration Research, Development, and
Demonstration
Sec. 701. Short title.
Sec. 702. Carbon capture and sequestration research, development, and
demonstration program.
Sec. 703. Carbon capture.
Sec. 704. Review of large-scale programs.
Sec. 705. Geologic sequestration training and research.
Sec. 706. Relation to Safe Drinking Water Act.
Sec. 707. Safety research.
Sec. 708. University based research and development grant program.
Subtitle B--Carbon Capture and Sequestration Assessment and Framework
Sec. 711. Carbon dioxide sequestration capacity assessment.
Sec. 712. Assessment of carbon sequestration and methane and nitrous
oxide emissions from ecosystems.
Sec. 713. Carbon dioxide sequestration inventory.
Sec. 714. Framework for geological carbon sequestration on public land.
TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A--Management Improvements
Sec. 801. National media campaign.
Sec. 802. Alaska Natural Gas Pipeline administration.
Sec. 803. Renewable energy deployment.
Sec. 804. Coordination of planned refinery outages.
Sec. 805. Assessment of resources.
Sec. 806. Sense of Congress relating to the use of renewable resources
to generate energy.
Sec. 807. Geothermal assessment, exploration information, and priority
activities.
Subtitle B--Prohibitions on Market Manipulation and False Information
Sec. 811. Prohibition on market manipulation.
Sec. 812. Prohibition on false information.
Sec. 813. Enforcement by the Federal Trade Commission.
Sec. 814. Penalties.
Sec. 815. Effect on other laws.
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
Sec. 901. Definitions.
Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
Sec. 911. United States assistance for developing countries.
Sec. 912. United States exports and outreach programs for India, China,
and other countries.
Sec. 913. United States trade missions to encourage private sector
trade and investment.
Sec. 914. Actions by Overseas Private Investment Corporation.
Sec. 915. Actions by United States Trade and Development Agency.
Sec. 916. Deployment of international clean and efficient energy
technologies and investment in global energy markets.
Sec. 917. United States-Israel energy cooperation.
Subtitle B--International Clean Energy Foundation
Sec. 921. Definitions.
Sec. 922. Establishment and management of Foundation.
Sec. 923. Duties of Foundation.
Sec. 924. Annual report.
Sec. 925. Powers of the Foundation; related provisions.
Sec. 926. General personnel authorities.
Sec. 927. Authorization of appropriations.
Subtitle C--Miscellaneous Provisions
Sec. 931. Energy diplomacy and security within the Department of State.
Sec. 932. National Security Council reorganization.
Sec. 933. Annual national energy security strategy report.
Sec. 934. Convention on Supplementary Compensation for Nuclear Damage
contingent cost allocation.
Sec. 935. Transparency in extractive industries resource payments.
TITLE X--GREEN JOBS
Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training
program.
TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A--Department of Transportation
Sec. 1101. Office of Climate Change and Environment.
Subtitle B--Railroads
Sec. 1111. Advanced technology locomotive grant pilot program.
Sec. 1112. Capital grants for class II and class III railroads.
Subtitle C--Marine Transportation
Sec. 1121. Short sea transportation initiative.
Sec. 1122. Short sea shipping eligibility for capital construction
fund.
Sec. 1123. Short sea transportation report.
Subtitle D--Highways
Sec. 1131. Increased Federal share for CMAQ projects.
Sec. 1132. Distribution of rescissions.
Sec. 1133. Sense of Congress regarding use of complete streets design
techniques.
TITLE XII--SMALL BUSINESS ENERGY PROGRAMS
Sec. 1201. Express loans for renewable energy and energy efficiency.
Sec. 1202. Pilot program for reduced 7(a) fees for purchase of energy
efficient technologies.
Sec. 1203. Small business energy efficiency.
Sec. 1204. Larger 504 loan limits to help business develop energy
efficient technologies and purchases.
[[Page H14318]]
Sec. 1205. Energy saving debentures.
Sec. 1206. Investments in energy saving small businesses.
Sec. 1207. Renewable fuel capital investment company.
Sec. 1208. Study and report.
TITLE XIII--SMART GRID
Sec. 1301. Statement of policy on modernization of electricity grid.
Sec. 1302. Smart grid system report.
Sec. 1303. Smart grid advisory committee and smart grid task force.
Sec. 1304. Smart grid technology research, development, and
demonstration.
Sec. 1305. Smart grid interoperability framework.
Sec. 1306. Federal matching fund for smart grid investment costs.
Sec. 1307. State consideration of smart grid.
Sec. 1308. Study of the effect of private wire laws on the development
of combined heat and power facilities.
Sec. 1309. DOE study of security attributes of smart grid systems.
TITLE XIV--RENEWABLE ELECTRICITY STANDARD
Sec. 1401. Renewable electricity standard.
TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007
Sec. 1500. Short title; amendment of 1986 Code; table of contents.
Subtitle A--Clean Renewable Energy Production Incentives
Part I--Provisions Relating to Renewable Energy
Sec. 1501. Extension and modification of renewable energy credit.
Sec. 1502. Production credit for electricity produced from marine
renewables.
Sec. 1503. Extension and modification of energy credit.
Sec. 1504. Extension and modification of credit for residential energy
efficient property.
Sec. 1505. Extension and modification of special rule to implement FERC
and State electric restructuring policy.
Sec. 1506. New clean renewable energy bonds.
Part II--Provisions Relating to Carbon Mitigation and Coal
Sec. 1507. Expansion and modification of advanced coal project
investment credit.
Sec. 1508. Expansion and modification of coal gasification investment
credit.
Sec. 1509. Seven-year applicable recovery period for depreciation of
qualified carbon dioxide pipeline property.
Sec. 1510. Special rules for refund of the coal excise tax to certain
coal producers and exporters.
Sec. 1511. Extension of temporary increase in coal excise tax.
Sec. 1512. Carbon audit of the tax code.
Subtitle B--Transportation and Domestic Fuel Security
Part I--Biofuels
Sec. 1521. Credit for production of cellulosic biomass alcohol.
Sec. 1522. Expansion of special allowance to cellulosic biomass alcohol
fuel plant property.
Sec. 1523. Modification of alcohol credit.
Sec. 1524. Extension and modification of credits for biodiesel and
renewable diesel.
Sec. 1525. Clarification of eligibility for renewable diesel credit.
Sec. 1526. Provisions clarifying treatment of fuels with no nexus to
the United States.
Sec. 1527. Comprehensive study of biofuels.
Part II--Advanced Technology Motor Vehicles
Sec. 1528. Credit for new qualified plug-in electric drive motor
vehicles.
Sec. 1529. Exclusion from heavy truck tax for idling reduction units
and advanced insulation.
Part III--Other Transportation Provisions
Sec. 1530. Restructuring of New York Liberty Zone tax credits.
Sec. 1531. Extension of transportation fringe benefit to bicycle
commuters.
Subtitle C--Energy Conservation and Efficiency
Part I--Conservation Tax Credit Bonds
Sec. 1541. Qualified energy conservation bonds.
Sec. 1542. Qualified forestry conservation bonds.
Part II--Efficiency
Sec. 1543. Extension and modification of energy efficient existing
homes credit.
Sec. 1544. Extension and modification of energy efficient commercial
buildings deduction.
Sec. 1545. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 1546. Seven-year applicable recovery period for depreciation of
qualified energy management devices.
Subtitle D--Other Provisions
Part I--Forestry Provisions
Sec. 1551. Deduction for qualified timber gain.
Sec. 1552. Excise tax not applicable to section 1203 deduction of real
estate investment trusts.
Sec. 1553. Timber REIT modernization.
Sec. 1554. Mineral royalty income qualifying income for timber REITs.
Sec. 1555. Modification of taxable REIT subsidiary asset test for
timber REITs.
Sec. 1556. Safe harbor for timber property.
Part II--Exxon Valdez
Sec. 1557. Income averaging for amounts received in connection with the
Exxon Valdez litigation.
Subtitle E--Revenue Provisions
Sec. 1561. Limitation of deduction for income attributable to domestic
production of oil, gas, or a primary products thereof .
Sec. 1562. Elimination of the different treatment of foreign oil and
gas extraction income and foreign oil related income for
purposes of the foreign tax credit.
Sec. 1563. 7-year amortization of geological and geophysical
expenditures for certain major integrated oil companies.
Sec. 1564. Broker reporting of customer's basis in securities
transactions.
Sec. 1565. Extension of additional 0.2 percent FUTA surtax.
Sec. 1566. Termination of treatment of natural gas distribution lines
as 15-year property.
Sec. 1567. Time for payment of corporate estimated taxes.
Sec. 1568. Modification of penalty for failure to file partnership
returns.
Subtitle F--Secure Rural Schools
Sec. 1571. Secure rural schools and community self-determination
program.
SEC. 2. DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 3. RELATIONSHIP TO OTHER LAW.
Except to the extent expressly provided in this Act or an
amendment made by this Act, nothing in this Act or an
amendment made by this Act supersedes, limits the authority
provided or responsibility conferred by, or authorizes any
violation of any provision of law (including a regulation),
including any energy or environmental law or regulation.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
Subtitle A--Increased Corporate Average Fuel Economy Standards
SEC. 101. SHORT TITLE.
This subtitle may be cited as the ``Ten-in-Ten Fuel Economy
Act''.
SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND
CERTAIN OTHER VEHICLES.
(a) Increased Standards.--Section 32902 of title 49, United
States Code, is amended--
(1) in subsection (a)--
(A) by striking ``Non-Passenger Automobiles.--'' and
inserting ``Prescription of Standards by Regulation.--'';
(B) by striking ``(except passenger automobiles)'' in
subsection (a); and
(C) by striking the last sentence;
(2) by striking subsection (b) and inserting the following:
``(b) Standards for Automobiles and Certain Other
Vehicles.--
``(1) In general.--The Secretary of Transportation, after
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, shall
prescribe separate average fuel economy standards for--
``(A) passenger automobiles manufactured by manufacturers
in each model year beginning with model year 2011 in
accordance with this subsection;
``(B) non-passenger automobiles manufactured by
manufacturers in each model year beginning with model year
2011 in accordance with this subsection;
``(C) work trucks in accordance with subsection (k); and
``(D) commercial medium-duty or heavy-duty on-highway
vehicles in accordance with subsection (l).
``(2) Fuel economy standards for automobiles.--
``(A) Automobile fuel economy average for model years 2011
through 2020.--The Secretary shall prescribe a separate
average fuel economy standard for passenger automobiles and a
separate average fuel economy standard for non-passenger
automobiles for each model year beginning with model year
2011 to achieve a combined fuel economy average for model
year 2020 of at least 35 miles per gallon for the total fleet
of passenger and non-passenger automobiles manufactured for
sale in the United States for that model year.
``(B) Automobile fuel economy average for model years 2021
through 2030.--For model years 2021 through 2030, the average
fuel economy required to be attained by each fleet of
passenger and non-passenger automobiles manufactured for sale
in the United States shall be the maximum feasible average
fuel economy standard for each fleet for that model year.
[[Page H14319]]
``(C) Progress toward standard required.--In prescribing
average fuel economy standards under subparagraph (A), the
Secretary shall prescribe annual fuel economy standard
increases that increase the applicable average fuel economy
standard ratably beginning with model year 2011 and ending
with model year 2020.
``(3) Authority of the secretary.--The Secretary shall--
``(A) prescribe by regulation separate average fuel economy
standards for passenger and non-passenger automobiles based
on 1 or more vehicle attributes related to fuel economy and
express each standard in the form of a mathematical function;
and
``(B) issue regulations under this title prescribing
average fuel economy standards for at least 1, but not more
than 5, model years.
``(4) Minimum standard.--In addition to any standard
prescribed pursuant to paragraph (3), each manufacturer shall
also meet the minimum standard for domestically manufactured
passenger automobiles, which shall be the greater of--
``(A) 27.5 miles per gallon; or
``(B) 92 percent of the average fuel economy projected by
the Secretary for the combined domestic and non-domestic
passenger automobile fleets manufactured for sale in the
United States by all manufacturers in the model year, which
projection shall be published in the Federal Register when
the standard for that model year is promulgated in accordance
with this section.''; and
(3) in subsection (c)--
(A) by striking ``(1) Subject to paragraph (2) of this
subsection, the'' and inserting ``The''; and
(B) by striking paragraph (2).
(b) Fuel Economy Standard for Work Trucks.--Section 32902
of title 49, United States Code, is amended by adding at the
end the following:
``(k) Work Trucks.--
``(1) Study.--Not later than 1 year after the date of the
enactment of the Ten-in-Ten Fuel Economy Act, the Secretary
of Transportation, in consultation with the Secretary of
Energy and the Administrator of the Environmental Protection
Agency, shall examine the fuel efficiency of work trucks and
determine--
``(A) the appropriate test procedures and methodologies for
measuring the fuel efficiency of work trucks;
``(B) the appropriate metric for measuring and expressing
work truck fuel efficiency performance, taking into
consideration, among other things, the work performed by work
trucks and types of operations in which they are used;
``(C) the range of factors, including, without limitation,
design, functionality, use, duty cycle, infrastructure, and
total overall energy consumption and operating costs that
affect work truck fuel efficiency; and
``(D) such other factors and conditions that could have an
impact on a program to improve work truck fuel efficiency.
``(2) Rulemaking.--Not later than 24 months after
completion of the study required under paragraph (1), the
Secretary, in consultation with the Secretary of Energy and
the Administrator of the Environmental Protection Agency, by
regulation, shall determine in a rulemaking proceeding how to
implement a work truck fuel efficiency improvement program
designed to achieve the maximum feasible improvement, and
shall adopt and implement appropriate test methods,
measurement metrics, fuel economy standards, and compliance
and enforcement protocols that are appropriate, cost-
effective, and technologically feasible for work trucks. Any
fuel economy standard prescribed under this section shall be
prescribed at least 18 months before the model year to which
it applies. The Secretary may prescribe separate standards
for different classes of vehicles under this subsection.''.
(c) Fuel Economy Standard for Commercial Medium-Duty and
Heavy-Duty On-Highway Vehicles.--Section 32902 of title 49,
United States Code, as amended by subsection (b), is further
amended by adding at the end the following:
``(l) Commercial Medium- and Heavy-Duty On-Highway
Vehicles.--
``(1) Study.--Not later than 1 year after the National
Academy of Sciences publishes the results of its study under
section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary
of Transportation, in consultation with the Secretary of
Energy and the Administrator of the Environmental Protection
Agency, shall examine the fuel efficiency of commercial
medium- and heavy-duty on-highway vehicles and determine--
``(A) the appropriate test procedures and methodologies for
measuring the fuel efficiency of such vehicles;
``(B) the appropriate metric for measuring and expressing
commercial medium- and heavy-duty on-highway vehicle fuel
efficiency performance, taking into consideration, among
other things, the work performed by such on-highway vehicles
and types of operations in which they are used;
``(C) the range of factors, including, without limitation,
design, functionality, use, duty cycle, infrastructure, and
total overall energy consumption and operating costs that
affect commercial medium- and heavy-duty on-highway vehicle
fuel efficiency; and
``(D) such other factors and conditions that could have an
impact on a program to improve commercial medium- and heavy-
duty on-highway vehicle fuel efficiency.
``(2) Rulemaking.--Not later than 24 months after
completion of the study required under paragraph (1), the
Secretary, in consultation with the Secretary of Energy and
the Administrator of the Environmental Protection Agency, by
regulation, shall determine in a rulemaking proceeding how to
implement a commercial medium- and heavy-duty on-highway
vehicle fuel efficiency improvement program designed to
achieve the maximum feasible improvement, and shall adopt and
implement appropriate test methods, measurement metrics, fuel
economy standards, and compliance and enforcement protocols
that are appropriate, cost-effective, and technologically
feasible for commercial medium- and heavy-duty on-highway
vehicles. Any fuel economy standard prescribed under this
section shall be prescribed at least 18 months before the
model year to which it applies. The Secretary may prescribe
separate standards for different classes of vehicles under
this subsection.
``(3) Lead-time; regulatory stability.--The first
commercial medium- and heavy-duty on-highway vehicle fuel
efficiency regulatory program adopted pursuant to this
subsection shall provide not less than--
``(A) 4 full model years of regulatory lead-time; and
``(B) 3 full model years of regulatory stability.''.
SEC. 103. DEFINITIONS.
(a) In General.--Section 32901(a) of title 49, United
States Code, is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) except as provided in section 32908 of this title,
`automobile' means a 4-wheeled vehicle that is propelled by
fuel, or by alternative fuel, manufactured primarily for use
on public streets, roads, and highways and rated at less than
10,000 pounds gross vehicle weight, except--
``(A) a vehicle operated only on a rail line;
``(B) a vehicle manufactured in different stages by 2 or
more manufacturers, if no intermediate or final-stage
manufacturer of that vehicle manufactures more than 10,000
multi-stage vehicles per year; or
``(C) a work truck.'';
(2) by redesignating paragraphs (7) through (16) as
paragraphs (8) through (17), respectively;
(3) by inserting after paragraph (6) the following:
``(7) `commercial medium- and heavy-duty on-highway
vehicle' means an on-highway vehicle with a gross vehicle
weight rating of 10,000 pounds or more.'';
(4) in paragraph (9)(A), as redesignated, by inserting ``or
a mixture of biodiesel and diesel fuel meeting the standard
established by the American Society for Testing and Materials
or under section 211(u) of the Clean Air Act (42 U.S.C.
7545(u)) for fuel containing 20 percent biodiesel (commonly
known as `B20')'' after ``alternative fuel'';
(5) by redesignating paragraph (17), as redesignated, as
paragraph (18);
(6) by inserting after paragraph (16), as redesignated, the
following:
``(17) `non-passenger automobile' means an automobile that
is not a passenger automobile or a work truck.''; and
(7) by adding at the end the following:
``(19) `work truck' means a vehicle that--
``(A) is rated at between 8,500 and 10,000 pounds gross
vehicle weight; and
``(B) is not a medium-duty passenger vehicle (as defined in
section 86.1803-01 of title 40, Code of Federal Regulations,
as in effect on the date of the enactment of the Ten-in-Ten
Fuel Economy Act).''.
SEC. 104. CREDIT TRADING PROGRAM.
(a) In General.--Section 32903 of title 49, United States
Code, is amended--
(1) by striking ``section 32902(b)-(d) of this title'' each
place it appears and inserting ``subsections (a) through (d)
of section 32902'';
(2) in subsection (a)(2)--
(A) by striking ``3 consecutive model years'' and inserting
``5 consecutive model years'';
(B) by striking ``clause (1) of this subsection,'' and
inserting ``paragraph (1)'';
(3) by redesignating subsection (f) as subsection (h); and
(4) by inserting after subsection (e) the following:
``(f) Credit Trading Among Manufacturers.--
``(1) In general.--The Secretary of Transportation may
establish, by regulation, a fuel economy credit trading
program to allow manufacturers whose automobiles exceed the
average fuel economy standards prescribed under section 32902
to earn credits to be sold to manufacturers whose automobiles
fail to achieve the prescribed standards such that the total
oil savings associated with manufacturers that exceed the
prescribed standards are preserved when trading credits to
manufacturers that fail to achieve the prescribed standards.
``(2) Limitation.--The trading of credits by a manufacturer
to the category of passenger automobiles manufactured
domestically is limited to the extent that the fuel economy
level of such automobiles shall comply with the requirements
of section 32902(b)(4), without regard to any trading of
credits from other manufacturers.
``(g) Credit Transferring Within a Manufacturer's Fleet.--
``(1) In general.--The Secretary of Transportation shall
establish by regulation a fuel economy credit transferring
program to allow any manufacturer whose automobiles exceed
any of the average fuel economy standards prescribed under
section 32902 to
[[Page H14320]]
transfer the credits earned under this section and to apply
such credits within that manufacturer's fleet to a compliance
category of automobiles that fails to achieve the prescribed
standards.
``(2) Years for which used.--Credits transferred under this
subsection are available to be used in the same model years
that the manufacturer could have applied such credits under
subsections (a), (b), (d), and (e), as well as for the model
year in which the manufacturer earned such credits.
``(3) Maximum increase.--The maximum increase in any
compliance category attributable to transferred credits is--
``(A) for model years 2011 through 2013, 1.0 mile per
gallon;
``(B) for model years 2014 through 2017, 1.5 miles per
gallon; and
``(C) for model year 2018 and subsequent model years, 2.0
miles per gallon.
``(4) Limitation.--The transfer of credits by a
manufacturer to the category of passenger automobiles
manufactured domestically is limited to the extent that the
fuel economy level of such automobiles shall comply with the
requirements under section 32904(b)(4), without regard to any
transfer of credits from other categories of automobiles
described in paragraph (6)(B).
``(5) Years available.--A credit may be transferred under
this subsection only if it is earned after model year 2010.
``(6) Definitions.--In this subsection:
``(A) Fleet.--The term `fleet' means all automobiles
manufactured by a manufacturer in a particular model year.
``(B) Compliance category of automobiles.--The term
`compliance category of automobiles' means any of the
following 3 categories of automobiles for which compliance is
separately calculated under this chapter:
``(i) Passenger automobiles manufactured domestically.
``(ii) Passenger automobiles not manufactured domestically.
``(iii) Non-passenger automobiles.''.
(b) Conforming Amendments.--
(1) Limitations.--Section 32902(h) of title 49, United
States Code, is amended--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(3) may not consider, when prescribing a fuel economy
standard, the trading, transferring, or availability of
credits under section 32903.''.
(2) Separate calculations.--Section 32904(b)(1)(B) is
amended by striking ``chapter.'' and inserting ``chapter,
except for the purposes of section 32903.''.
SEC. 105. CONSUMER INFORMATION.
Section 32908 of title 49, United States Code, is amended
by adding at the end the following:
``(g) Consumer Information.--
``(1) Program.--The Secretary of Transportation, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, shall
develop and implement by rule a program to require
manufacturers--
``(A) to label new automobiles sold in the United States
with--
``(i) information reflecting an automobile's performance on
the basis of criteria that the Administrator shall develop,
not later than 18 months after the date of the enactment of
the Ten-in-Ten Fuel Economy Act, to reflect fuel economy and
greenhouse gas and other emissions over the useful life of
the automobile;
``(ii) a rating system that would make it easy for
consumers to compare the fuel economy and greenhouse gas and
other emissions of automobiles at the point of purchase,
including a designation of automobiles--
``(I) with the lowest greenhouse gas emissions over the
useful life of the vehicles; and
``(II) the highest fuel economy; and
``(iii) a permanent and prominent display that an
automobile is capable of operating on an alternative fuel;
and
``(B) to include in the owner's manual for vehicles capable
of operating on alternative fuels information that describes
that capability and the benefits of using alternative fuels,
including the renewable nature and environmental benefits of
using alternative fuels.
``(2) Consumer education.--
``(A) In general.--The Secretary of Transportation, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, shall
develop and implement by rule a consumer education program to
improve consumer understanding of automobile performance
described in paragraph (1)(A)(i) and to inform consumers of
the benefits of using alternative fuel in automobiles and the
location of stations with alternative fuel capacity.
``(B) Fuel savings education campaign.--The Secretary of
Transportation shall establish a consumer education campaign
on the fuel savings that would be recognized from the
purchase of vehicles equipped with thermal management
technologies, including energy efficient air conditioning
systems and glass.
``(3) Fuel tank labels for alternative fuel automobiles.--
The Secretary of Transportation shall by rule require a label
to be attached to the fuel compartment of vehicles capable of
operating on alternative fuels, with the form of alternative
fuel stated on the label. A label attached in compliance with
the requirements of section 32905(h) is deemed to meet the
requirements of this paragraph.
``(4) Rulemaking deadline.--The Secretary of Transportation
shall issue a final rule under this subsection not later than
42 months after the date of the enactment of the Ten-in-Ten
Fuel Economy Act.''.
SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.
Nothing in this subtitle, or the amendments made by this
subtitle, shall be construed to affect the application of
section 32902 of title 49, United States Code, to passenger
automobiles or non-passenger automobiles manufactured before
model year 2011.
SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary of Transportation shall
execute an agreement with the National Academy of Sciences to
develop a report evaluating vehicle fuel economy standards,
including--
(1) an assessment of automotive technologies and costs to
reflect developments since the Academy's 2002 report
evaluating the corporate average fuel economy standards was
conducted;
(2) an analysis of existing and potential technologies that
may be used practically to improve automobile and medium-duty
and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the automotive and medium-duty and heavy-duty
truck manufacturing process; and
(4) an assessment of how such technologies may be used to
meet the new fuel economy standards under chapter 329 of
title 49, United States Code, as amended by this subtitle.
(b) Report.--The Academy shall submit the report to the
Secretary, the Committee on Commerce, Science, and
Transportation of the Senate, and the Committee on Energy and
Commerce of the House of Representatives, with its findings
and recommendations not later than 5 years after the date on
which the Secretary executes the agreement with the Academy.
(c) Quinquennial Updates.--After submitting the initial
report, the Academy shall update the report at 5 year
intervals thereafter through 2025.
SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY
AND HEAVY-DUTY TRUCK FUEL ECONOMY.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary of Transportation shall
execute an agreement with the National Academy of Sciences to
develop a report evaluating medium-duty and heavy-duty truck
fuel economy standards, including--
(1) an assessment of technologies and costs to evaluate
fuel economy for medium-duty and heavy-duty trucks;
(2) an analysis of existing and potential technologies that
may be used practically to improve medium-duty and heavy-duty
truck fuel economy;
(3) an analysis of how such technologies may be practically
integrated into the medium-duty and heavy-duty truck
manufacturing process;
(4) an assessment of how such technologies may be used to
meet fuel economy standards to be prescribed under section
32902(l) of title 49, United States Code, as amended by this
subtitle; and
(5) associated costs and other impacts on the operation of
medium-duty and heavy-duty trucks, including congestion.
(b) Report.--The Academy shall submit the report to the
Secretary, the Committee on Commerce, Science, and
Transportation of the Senate, and the Committee on Energy and
Commerce of the House of Representatives, with its findings
and recommendations not later than 1 year after the date on
which the Secretary executes the agreement with the Academy.
SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.
(a) In General.--Section 32906 of title 49, United States
Code, is amended to read as follows:
``Sec. 32906. Maximum fuel economy increase for alternative
fuel automobiles
``(a) In General.--For each of model years 1993 through
2019 for each category of automobile (except an electric
automobile), the maximum increase in average fuel economy for
a manufacturer attributable to dual fueled automobiles is--
``(1) 1.2 miles a gallon for each of model years 1993
through 2014;
``(2) 1.0 miles per gallon for model year 2015;
``(3) 0.8 miles per gallon for model year 2016;
``(4) 0.6 miles per gallon for model year 2017;
``(5) 0.4 miles per gallon for model year 2018;
``(6) 0.2 miles per gallon for model year 2019; and
``(7) 0 miles per gallon for model years after 2019.
``(b) Calculation.--In applying subsection (a), the
Administrator of the Environmental Protection Agency shall
determine the increase in a manufacturer's average fuel
economy attributable to dual fueled automobiles by
subtracting from the manufacturer's average fuel economy
calculated under section 32905(e) the number equal to what
the manufacturer's average fuel economy would be if
[[Page H14321]]
it were calculated by the formula under section 32904(a)(1)
by including as the denominator for each model of dual fueled
automobiles the fuel economy when the automobiles are
operated on gasoline or diesel fuel.''.
(b) Conforming Amendments.--Section 32905 of title 49,
United States Code, is amended--
(1) in subsection (b), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(2) in subsection (d), by striking ``1993-2010,'' and
inserting ``1993 through 2019,'';
(3) by striking subsections (f) and (g); and
(4) by redesignating subsection (h) as subsection (f).
(c) B20 Biodiesel Flexible Fuel Credit.--Section
32905(b)(2) of title 49, United States Code, is amended to
read as follows:
``(2) .5 divided by the fuel economy--
``(A) measured under subsection (a) when operating the
model on alternative fuel; or
``(B) measured based on the fuel content of B20 when
operating the model on B20, which is deemed to contain 0.15
gallon of fuel.''.
SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY
LABELING PROCEDURES.
Beginning in December, 2009, and not less often than every
5 years thereafter, the Administrator of the Environmental
Protection Agency, in consultation with the Secretary of
Transportation, shall--
(1) reevaluate the fuel economy labeling procedures
described in the final rule published in the Federal Register
on December 27, 2006 (71 Fed. Reg. 77,872; 40 C.F.R. parts 86
and 600) to determine whether changes in the factors used to
establish the labeling procedures warrant a revision of that
process; and
(2) submit a report to the Committee on Commerce, Science,
and Transportation of the Senate and the Committee on Energy
and Commerce of the House of Representatives that describes
the results of the reevaluation process.
SEC. 111. CONSUMER TIRE INFORMATION.
(a) In General.--Chapter 323 of title 49, United States
Code, is amended by inserting after section 32304 the
following:
``Sec. 32304A. Consumer tire information
``(a) Rulemaking.--
``(1) In general.--Not later than 24 months after the date
of enactment of the Ten-in-Ten Fuel Economy Act, the
Secretary of Transportation shall, after notice and
opportunity for comment, promulgate rules establishing a
national tire fuel efficiency consumer information program
for replacement tires designed for use on motor vehicles to
educate consumers about the effect of tires on automobile
fuel efficiency, safety, and durability.
``(2) Items included in rule.--The rulemaking shall
include--
``(A) a national tire fuel efficiency rating system for
motor vehicle replacement tires to assist consumers in making
more educated tire purchasing decisions;
``(B) requirements for providing information to consumers,
including information at the point of sale and other
potential information dissemination methods, including the
Internet;
``(C) specifications for test methods for manufacturers to
use in assessing and rating tires to avoid variation among
test equipment and manufacturers; and
``(D) a national tire maintenance consumer education
program including, information on tire inflation pressure,
alignment, rotation, and tread wear to maximize fuel
efficiency, safety, and durability of replacement tires.
``(3) Applicability.--This section shall apply only to
replacement tires covered under section 575.104(c) of title
49, Code of Federal Regulations, in effect on the date of the
enactment of the Ten-in-Ten Fuel Economy Act.
``(b) Consultation.--The Secretary shall consult with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency on the means of conveying
tire fuel efficiency consumer information.
``(c) Report to Congress.--The Secretary shall conduct
periodic assessments of the rules promulgated under this
section to determine the utility of such rules to consumers,
the level of cooperation by industry, and the contribution to
national goals pertaining to energy consumption. The
Secretary shall transmit periodic reports detailing the
findings of such assessments to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Energy and Commerce.
``(d) Tire Marking.--The Secretary shall not require
permanent labeling of any kind on a tire for the purpose of
tire fuel efficiency information.
``(e) Application With State and Local Laws and
Regulations.--Nothing in this section prohibits a State or
political subdivision thereof from enforcing a law or
regulation on tire fuel efficiency consumer information that
was in effect on January 1, 2006. After a requirement
promulgated under this section is in effect, a State or
political subdivision thereof may adopt or enforce a law or
regulation on tire fuel efficiency consumer information
enacted or promulgated after January 1, 2006, if the
requirements of that law or regulation are identical to the
requirement promulgated under this section. Nothing in this
section shall be construed to preempt a State or political
subdivision thereof from regulating the fuel efficiency of
tires (including establishing testing methods for determining
compliance with such standards) not otherwise preempted under
this chapter.''.
(b) Enforcement.--Section 32308 of title 49, United States
Code, is amended--
(1) by redesignating subsections (c) and (d) as subsections
(d)and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Section 32304A.--Any person who fails to comply with
the national tire fuel efficiency information program under
section 32304A is liable to the United States Government for
a civil penalty of not more than $50,000 for each
violation.''.
(c) Conforming Amendment.--The chapter analysis for chapter
323 of title 49, United States Code, is amended by inserting
after the item relating to section 32304 the following:
``32304A. Consumer tire information''.
SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND
DEVELOPMENT.
Section 32912 of title 49, United States Code, is amended
by adding at the end the following:
``(e) Use of Civil Penalties.--For fiscal year 2008 and
each fiscal year thereafter, from the total amount deposited
in the general fund of the Treasury during the preceding
fiscal year from fines, penalties, and other funds obtained
through enforcement actions conducted pursuant to this
section (including funds obtained under consent decrees), the
Secretary of the Treasury, subject to the availability of
appropriations, shall--
``(1) transfer 50 percent of such total amount to the
account providing appropriations to the Secretary of
Transportation for the administration of this chapter, which
shall be used by the Secretary to support rulemaking under
this chapter; and
``(2) transfer 50 percent of such total amount to the
account providing appropriations to the Secretary of
Transportation for the administration of this chapter, which
shall be used by the Secretary to carry out a program to make
grants to manufacturers for retooling, reequipping, or
expanding existing manufacturing facilities in the United
States to produce advanced technology vehicles and
components.''.
SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.
(a) Repeal.--Paragraphs (6), (7), and (8) of section
32904(b) of title 49, United States Code, are repealed.
(b) Effect of Repeal on Existing Exemptions.--Any exemption
granted under section 32904(b)(6) of title 49, United States
Code, prior to the date of the enactment of this Act shall
remain in effect subject to its terms through model year
2013.
(c) Accrual and Use of Credits.--Any manufacturer holding
an exemption under section 32904(b)(6) of title 49, United
States Code, prior to the date of the enactment of this Act
may accrue and use credits under sections 32903 and 32905 of
such title begining with model year 2011.
Subtitle B--Improved Vehicle Technology
SEC. 131. TRANSPORTATION ELECTRIFICATION.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Battery.--The term ``battery'' means an electrochemical
energy storage system powered directly by electrical current.
(3) Electric transportation technology.--The term
``electric transportation technology'' means--
(A) technology used in vehicles that use an electric motor
for all or part of the motive power of the vehicles,
including battery electric, hybrid electric, plug-in hybrid
electric, fuel cell, and plug-in fuel cell vehicles, or rail
transportation; or
(B) equipment relating to transportation or mobile sources
of air pollution that use an electric motor to replace an
internal combustion engine for all or part of the work of the
equipment, including--
(i) corded electric equipment linked to transportation or
mobile sources of air pollution; and
(ii) electrification technologies at airports, ports, truck
stops, and material-handling facilities.
(4) Nonroad vehicle.--The term ``nonroad vehicle'' means a
vehicle--
(A) powered--
(i) by a nonroad engine, as that term is defined in section
216 of the Clean Air Act (42 U.S.C. 7550); or
(ii) fully or partially by an electric motor powered by a
fuel cell, a battery, or an off-board source of electricity;
and
(B) that is not a motor vehicle or a vehicle used solely
for competition.
(5) Plug-in electric drive vehicle.--The term ``plug-in
electric drive vehicle'' means a vehicle that--
(A) draws motive power from a battery with a capacity of at
least 4 kilowatt-hours;
(B) can be recharged from an external source of electricity
for motive power; and
(C) is a light-, medium-, or heavy-duty motor vehicle or
nonroad vehicle (as those terms are defined in section 216 of
the Clean Air Act (42 U.S.C. 7550)).
(6) Qualified electric transportation project.--The term
``qualified electric transportation project'' means an
electric transportation technology project that would
significantly reduce emissions of criteria pollutants,
greenhouse gas emissions, and petroleum, including--
(A) shipside or shoreside electrification for vessels;
(B) truck-stop electrification;
(C) electric truck refrigeration units;
[[Page H14322]]
(D) battery powered auxiliary power units for trucks;
(E) electric airport ground support equipment;
(F) electric material and cargo handling equipment;
(G) electric or dual-mode electric rail;
(H) any distribution upgrades needed to supply electricity
to the project; and
(I) any ancillary infrastructure, including panel upgrades,
battery chargers, in-situ transformers, and trenching.
(b) Plug-in Electric Drive Vehicle Program.--
(1) Establishment.--The Secretary shall establish a
competitive program to provide grants on a cost-shared basis
to State governments, local governments, metropolitan
transportation authorities, air pollution control districts,
private or nonprofit entities, or combinations of those
governments, authorities, districts, and entities, to carry
out 1 or more projects to encourage the use of plug-in
electric drive vehicles or other emerging electric vehicle
technologies, as determined by the Secretary.
(2) Administration.--The Secretary shall, in consultation
with the Secretary of Transportation and the Administrator,
establish requirements for applications for grants under this
section, including reporting of data to be summarized for
dissemination to grantees and the public, including safety,
vehicle, and component performance, and vehicle and component
life cycle costs.
(3) Priority.--In making awards under this subsection, the
Secretary shall--
(A) give priority consideration to applications that--
(i) encourage early widespread use of vehicles described in
paragraph (1); and
(ii) are likely to make a significant contribution to the
advancement of the production of the vehicles in the United
States; and
(B) ensure, to the maximum extent practicable, that the
program established under this subsection includes a variety
of applications, manufacturers, and end-uses.
(4) Reporting.--The Secretary shall require a grant
recipient under this subsection to submit to the Secretary,
on an annual basis, data relating to safety, vehicle
performance, life cycle costs, and emissions of vehicles
demonstrated under the grant, including emissions of
greenhouse gases.
(5) Cost sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a grant made under this
subsection.
(6) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $90,000,000
for each of fiscal years 2008 through 2012, of which not less
than \1/3\ of the total amount appropriated shall be
available each fiscal year to make grants to local and
municipal governments.
(c) Near-Term Transportation Sector Electrification
Program.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with
the Secretary of Transportation and the Administrator, shall
establish a program to provide grants for the conduct of
qualified electric transportation projects.
(2) Priority.--In providing grants under this subsection,
the Secretary shall give priority to large-scale projects and
large-scale aggregators of projects.
(3) Cost sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a grant made under this
subsection.
(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $95,000,000
for each of fiscal years 2008 through 2013.
(d) Education Program.--
(1) In general.--The Secretary shall develop a nationwide
electric drive transportation technology education program
under which the Secretary shall provide--
(A) teaching materials to secondary schools and high
schools; and
(B) assistance for programs relating to electric drive
system and component engineering to institutions of higher
education.
(2) Electric vehicle competition.--The program established
under paragraph (1) shall include a plug-in hybrid electric
vehicle competition for institutions of higher education,
which shall be known as the ``Dr. Andrew Frank Plug-In
Electric Vehicle Competition''.
(3) Engineers.--In carrying out the program established
under paragraph (1), the Secretary shall provide financial
assistance to institutions of higher education to create new,
or support existing, degree programs to ensure the
availability of trained electrical and mechanical engineers
with the skills necessary for the advancement of--
(A) plug-in electric drive vehicles; and
(B) other forms of electric drive transportation technology
vehicles.
(4) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this subsection.
SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
Section 712 of the Energy Policy Act of 2005 (42 U.S.C.
16062) is amended to read as follows:
``SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
``(a) Program.--
``(1) In general.--The Secretary shall establish a program
to encourage domestic production and sales of efficient
hybrid and advanced diesel vehicles and components of those
vehicles.
``(2) Inclusions.--The program shall include grants to
automobile manufacturers and suppliers and hybrid component
manufacturers to encourage domestic production of efficient
hybrid, plug-in electric hybrid, plug-in electric drive, and
advanced diesel vehicles.
``(3) Priority.--Priority shall be given to the
refurbishment or retooling of manufacturing facilities that
have recently ceased operation or will cease operation in the
near future.
``(b) Coordination With State and Local Programs.--The
Secretary may coordinate implementation of this section with
State and local programs designed to accomplish similar
goals, including the retention and retraining of skilled
workers from the manufacturing facilities, including by
establishing matching grant arrangements.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary such sums as
may be necessary to carry out this section.''.
SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF
1992.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C.
13258) is amended--
(1) by redesignating subsections (a) through (d) as
subsections (b) through (e), respectively;
(2) by inserting before subsection (b) the following:
``(a) Definitions.--In this section:
``(1) Fuel cell electric vehicle.--The term `fuel cell
electric vehicle' means an on-road or nonroad vehicle that
uses a fuel cell (as defined in section 803 of the Spark M.
Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).
``(2) Hybrid electric vehicle.--The term `hybrid electric
vehicle' means a new qualified hybrid motor vehicle (as
defined in section 30B(d)(3) of the Internal Revenue Code of
1986).
``(3) Medium- or heavy-duty electric vehicle.--The term
`medium- or heavy-duty electric vehicle' means an electric,
hybrid electric, or plug-in hybrid electric vehicle with a
gross vehicle weight of more than 8,501 pounds.
``(4) Neighborhood electric vehicle.--The term
`neighborhood electric vehicle' means a 4-wheeled on-road or
nonroad vehicle that--
``(A) has a top attainable speed in 1 mile of more than 20
mph and not more than 25 mph on a paved level surface; and
``(B) is propelled by an electric motor and on-board,
rechargeable energy storage system that is rechargeable using
an off-board source of electricity.
``(5) Plug-in electric drive vehicle.--The term `plug-in
electric drive vehicle' means a vehicle that--
``(A) draws motive power from a battery with a capacity of
at least 4 kilowatt-hours;
``(B) can be recharged from an external source of
electricity for motive power; and
``(C) is a light-, medium-, or heavy duty motor vehicle or
nonroad vehicle (as those terms are defined in section 216 of
the Clean Air Act (42 U.S.C. 7550).'';
(3) in subsection (b) (as redesignated by paragraph (1))--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) Allocation.--The Secretary''; and
(B) by adding at the end the following:
``(2) Electric vehicles.--Not later than January 31, 2009,
the Secretary shall--
``(A) allocate credit in an amount to be determined by the
Secretary for--
``(i) acquisition of--
``(I) a hybrid electric vehicle;
``(II) a plug-in electric drive vehicle;
``(III) a fuel cell electric vehicle;
``(IV) a neighborhood electric vehicle; or
``(V) a medium- or heavy-duty electric vehicle; and
``(ii) investment in qualified alternative fuel
infrastructure or nonroad equipment, as determined by the
Secretary; and
``(B) allocate more than 1, but not to exceed 5, credits
for investment in an emerging technology relating to any
vehicle described in subparagraph (A) to encourage--
``(i) a reduction in petroleum demand;
``(ii) technological advancement; and
``(iii) a reduction in vehicle emissions.'';
(4) in subsection (c) (as redesignated by paragraph (1)),
by striking ``subsection (a)'' and inserting ``subsection
(b)''; and
(5) by adding at the end the following:
``(f) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2013.''.
SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS
MANUFACTURERS.
(a) In General.--Section 712(a)(2) of the Energy Policy Act
of 2005 (42 U.S.C. 16062(a)(2)) (as amended by section 132)
is amended by inserting ``and loan guarantees under section
1703'' after ``grants''.
(b) Conforming Amendment.--Section 1703(b) of the Energy
Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by
striking paragraph (8) and inserting the following:
``(8) Production facilities for the manufacture of fuel
efficient vehicles or parts of those vehicles, including
electric drive vehicles and advanced diesel vehicles.''.
SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.
(a) Establishment of Program.--The Secretary shall
establish a program to provide guarantees of loans by private
institutions for the construction of facilities for the
manufacture of advanced vehicle batteries and
[[Page H14323]]
battery systems that are developed and produced in the United
States, including advanced lithium ion batteries and hybrid
electrical system and component manufacturers and software
designers.
(b) Requirements.--The Secretary may provide a loan
guarantee under subsection (a) to an applicant if--
(1) without a loan guarantee, credit is not available to
the applicant under reasonable terms or conditions sufficient
to finance the construction of a facility described in
subsection (a);
(2) the prospective earning power of the applicant and the
character and value of the security pledged provide a
reasonable assurance of repayment of the loan to be
guaranteed in accordance with the terms of the loan; and
(3) the loan bears interest at a rate determined by the
Secretary to be reasonable, taking into account the current
average yield on outstanding obligations of the United States
with remaining periods of maturity comparable to the maturity
of the loan.
(c) Criteria.--In selecting recipients of loan guarantees
from among applicants, the Secretary shall give preference to
proposals that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest
need for the facility.
(d) Maturity.--A loan guaranteed under subsection (a) shall
have a maturity of not more than 20 years.
(e) Terms and Conditions.--The loan agreement for a loan
guaranteed under subsection (a) shall provide that no
provision of the loan agreement may be amended or waived
without the consent of the Secretary.
(f) Assurance of Repayment.--The Secretary shall require
that an applicant for a loan guarantee under subsection (a)
provide an assurance of repayment in the form of a
performance bond, insurance, collateral, or other means
acceptable to the Secretary in an amount equal to not less
than 20 percent of the amount of the loan.
(g) Guarantee Fee.--The recipient of a loan guarantee under
subsection (a) shall pay the Secretary an amount determined
by the Secretary to be sufficient to cover the administrative
costs of the Secretary relating to the loan guarantee.
(h) Full Faith and Credit.--The full faith and credit of
the United States is pledged to the payment of all guarantees
made under this section. Any such guarantee made by the
Secretary shall be conclusive evidence of the eligibility of
the loan for the guarantee with respect to principal and
interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed
loan.
(i) Reports.--Until each guaranteed loan under this section
has been repaid in full, the Secretary shall annually submit
to Congress a report on the activities of the Secretary under
this section.
(j) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
(k) Termination of Authority.--The authority of the
Secretary to issue a loan guarantee under subsection (a)
terminates on the date that is 10 years after the date of
enactment of this Act.
SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING
INCENTIVE PROGRAM.
(a) Definitions.--In this section:
(1) Advanced technology vehicle.--The term ``advanced
technology vehicle'' means a light duty vehicle that meets--
(A) the Bin 5 Tier II emission standard established in
regulations issued by the Administrator of the Environmental
Protection Agency under section 202(i) of the Clean Air Act
(42 U.S.C. 7521(i)), or a lower-numbered Bin emission
standard;
(B) any new emission standard in effect for fine
particulate matter prescribed by the Administrator under that
Act (42 U.S.C. 7401 et seq.); and
(C) at least 125 percent of the average base year combined
fuel economy for vehicles with substantially similar
attributes.
(2) Combined fuel economy.--The term ``combined fuel
economy'' means--
(A) the combined city/highway miles per gallon values, as
reported in accordance with section 32904 of title 49, United
States Code; and
(B) in the case of an electric drive vehicle with the
ability to recharge from an off-board source, the reported
mileage, as determined in a manner consistent with the
Society of Automotive Engineers recommended practice for that
configuration or a similar practice recommended by the
Secretary.
(3) Engineering integration costs.--The term ``engineering
integration costs'' includes the cost of engineering tasks
relating to--
(A) incorporating qualifying components into the design of
advanced technology vehicles; and
(B) designing tooling and equipment and developing
manufacturing processes and material suppliers for production
facilities that produce qualifying components or advanced
technology vehicles.
(4) Qualifying components.--The term ``qualifying
components'' means components that the Secretary determines
to be--
(A) designed for advanced technology vehicles; and
(B) installed for the purpose of meeting the performance
requirements of advanced technology vehicles.
(b) Advanced Vehicles Manufacturing Facility.--The
Secretary shall provide facility funding awards under this
section to automobile manufacturers and component suppliers
to pay not more than 30 percent of the cost of--
(1) reequipping, expanding, or establishing a manufacturing
facility in the United States to produce--
(A) qualifying advanced technology vehicles; or
(B) qualifying components; and
(2) engineering integration performed in the United States
of qualifying vehicles and qualifying components.
(c) Period of Availability.--An award under subsection (b)
shall apply to--
(1) facilities and equipment placed in service before
December 30, 2020; and
(2) engineering integration costs incurred during the
period beginning on the date of enactment of this Act and
ending on December 30, 2020.
(d) Direct Loan Program.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and subject to the availability of
appropriated funds, the Secretary shall carry out a program
to provide a total of not more than $25,000,000,000 in loans
to eligible individuals and entities (as determined by the
Secretary) for the costs of activities described in
subsection (b).
(2) Application.--An applicant for a loan under this
subsection shall submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require, including a written assurance
that--
(A) all laborers and mechanics employed by contractors or
subcontractors during construction, alteration, or repair
that is financed, in whole or in part, by a loan under this
section shall be paid wages at rates not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor in accordance with
sections 3141-3144, 3146, and 3147 of title 40, United States
Code; and
(B) the Secretary of Labor shall, with respect to the labor
standards described in this paragraph, have the authority and
functions set forth in Reorganization Plan Numbered 14 of
1950 (5 U.S.C. App.) and section 3145 of title 40, United
States Code.
(3) Selection of eligible projects.--The Secretary shall
select eligible projects to receive loans under this
subsection in cases in which, as determined by the Secretary,
the award recipient--
(A) is financially viable without the receipt of additional
Federal funding associated with the proposed project;
(B) will provide sufficient information to the Secretary
for the Secretary to ensure that the qualified investment is
expended efficiently and effectively; and
(C) has met such other criteria as may be established and
published by the Secretary.
(4) Rates, terms, and repayment of loans.--A loan provided
under this subsection--
(A) shall have an interest rate that, as of the date on
which the loan is made, is equal to the cost of funds to the
Department of the Treasury for obligations of comparable
maturity;
(B) shall have a term equal to the lesser of--
(i) the projected life, in years, of the eligible project
to be carried out using funds from the loan, as determined by
the Secretary; and
(ii) 25 years;
(C) may be subject to a deferral in repayment for not more
than 5 years after the date on which the eligible project
carried out using funds from the loan first begins
operations, as determined by the Secretary; and
(D) shall be made by the Federal Financing Bank.
(e) Improvement.--The Secretary shall issue regulations
that require that, in order for an automobile manufacturer to
be eligible for an award or loan under this section during a
particular year, the adjusted average fuel economy of the
manufacturer for light duty vehicles produced by the
manufacturer during the most recent year for which data are
available shall be not less than the average fuel economy for
all light duty vehicles of the manufacturer for model year
2005. In order to determine fuel economy baselines for
eligibility of a new manufacturer or a manufacturer that has
not produced previously produced equivalent vehicles, the
Secretary may substitute industry averages.
(f) Fees.--Administrative costs shall be no more than
$100,000 or 10 basis point of the loan.
(g) Priority.--The Secretary shall, in making awards or
loans to those manufacturers that have existing facilities,
give priority to those facilities that are oldest or have
been in existence for at least 20 years. Such facilities can
currently be sitting idle.
(h) Set Aside for Small Automobile Manufacturers and
Component Suppliers.--
(1) Definition of covered firm.--In this subsection, the
term ``covered firm'' means a firm that--
(A) employs less than 500 individuals; and
(B) manufactures automobiles or components of automobiles.
(2) Set aside.--Of the amount of funds that are used to
provide awards for each fiscal year under subsection (b), the
Secretary shall use not less than 10 percent to provide
awards to covered firms or consortia led by a covered firm.
[[Page H14324]]
(i) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.
Subtitle C--Federal Vehicle Fleets
SEC. 141. FEDERAL VEHICLE FLEETS.
Section 303 of the Energy Policy Act of 1992 (42 U.S.C.
13212) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Vehicle Emission Requirements.--
``(1) Definitions.--In this subsection:
``(A) Federal agency.--The term `Federal agency' does not
include any office of the legislative branch, except that it
does include the House of Representatives with respect to an
acquisition described in paragraph (2)(C).
``(B) Medium duty passenger vehicle.--The term `medium duty
passenger vehicle' has the meaning given that term section
523.2 of title 49 of the Code of Federal Regulations, as in
effect on the date of enactment of this paragraph.
``(C) Member's representational allowance.--The term
`Member's Representational Allowance' means the allowance
described in section 101(a) of the House of Representatives
Administrative Reform Technical Corrections Act (2 U.S.C.
57b(a)).
``(2) Prohibition.--
``(A) In general.--Except as provided in subparagraph (B),
no Federal agency shall acquire a light duty motor vehicle or
medium duty passenger vehicle that is not a low greenhouse
gas emitting vehicle.
``(B) Exception.--The prohibition in subparagraph (A) shall
not apply to acquisition of a vehicle if the head of the
agency certifies in writing, in a separate certification for
each individual vehicle purchased, either--
``(i) that no low greenhouse gas emitting vehicle is
available to meet the functional needs of the agency and
details in writing the functional needs that could not be met
with a low greenhouse gas emitting vehicle; or
``(ii) that the agency has taken specific alternative more
cost-effective measures to reduce petroleum consumption
that--
``(I) have reduced a measured and verified quantity of
greenhouse gas emissions equal to or greater than the
quantity of greenhouse gas reductions that would have been
achieved through acquisition of a low greenhouse gas emitting
vehicle over the lifetime of the vehicle; or
``(II) will reduce each year a measured and verified
quantity of greenhouse gas emissions equal to or greater than
the quantity of greenhouse gas reductions that would have
been achieved each year through acquisition of a low
greenhouse gas emitting vehicle.
``(C) Special rule for vehicles provided by funds contained
in members' representational allowance.--This paragraph shall
apply to the acquisition of a light duty motor vehicle or
medium duty passenger vehicle using any portion of a Member's
Representational Allowance, including an acquisition under a
long-term lease.
``(3) Guidance.--
``(A) In general.--Each year, the Administrator of the
Environmental Protection Agency shall issue guidance
identifying the makes and model numbers of vehicles that are
low greenhouse gas emitting vehicles.
``(B) Consideration.--In identifying vehicles under
subparagraph (A), the Administrator shall take into account
the most stringent standards for vehicle greenhouse gas
emissions applicable to and enforceable against motor vehicle
manufacturers for vehicles sold anywhere in the United
States.
``(C) Requirement.--The Administrator shall not identify
any vehicle as a low greenhouse gas emitting vehicle if the
vehicle emits greenhouse gases at a higher rate than such
standards allow for the manufacturer's fleet average grams
per mile of carbon dioxide-equivalent emissions for that
class of vehicle, taking into account any emissions
allowances and adjustment factors such standards provide.''.
SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.
Part J of title III of the Energy Policy and Conservation
Act (42 U.S.C. 6374 et seq.) is amended by adding at the end
the following:
``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.
``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) In general.--Not later than 18 months after the date
of enactment of this section, the Secretary shall issue
regulations for Federal fleets subject to section 400AA to
require that, beginning in fiscal year 2010, each Federal
agency shall reduce petroleum consumption and increase
alternative fuel consumption each year by an amount necessary
to meet the goals described in paragraph (2).
``(2) Goals.--The goals of the requirements under paragraph
(1) are that not later than October 1, 2015, and for each
year thereafter, each Federal agency shall achieve at least a
20 percent reduction in annual petroleum consumption and a 10
percent increase in annual alternative fuel consumption, as
calculated from the baseline established by the Secretary for
fiscal year 2005.
``(3) Milestones.--The Secretary shall include in the
regulations described in paragraph (1)--
``(A) interim numeric milestones to assess annual agency
progress towards accomplishing the goals described in that
paragraph; and
``(B) a requirement that agencies annually report on
progress towards meeting each of the milestones and the 2015
goals.
``(b) Plan.--
``(1) Requirement.--
``(A) In general.--The regulations under subsection (a)
shall require each Federal agency to develop a plan, and
implement the measures specified in the plan by dates
specified in the plan, to meet the required petroleum
reduction levels and the alternative fuel consumption
increases, including the milestones specified by the
Secretary.
``(B) Inclusions.--The plan shall--
``(i) identify the specific measures the agency will use to
meet the requirements of subsection (a)(2); and
``(ii) quantify the reductions in petroleum consumption or
increases in alternative fuel consumption projected to be
achieved by each measure each year.
``(2) Measures.--The plan may allow an agency to meet the
required petroleum reduction level through--
``(A) the use of alternative fuels;
``(B) the acquisition of vehicles with higher fuel economy,
including hybrid vehicles, neighborhood electric vehicles,
electric vehicles, and plug-in hybrid vehicles if the
vehicles are commercially available;
``(C) the substitution of cars for light trucks;
``(D) an increase in vehicle load factors;
``(E) a decrease in vehicle miles traveled;
``(F) a decrease in fleet size; and
``(G) other measures.''.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS
Subtitle A--Renewable Fuel Standard
SEC. 201. DEFINITIONS.
Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o))
is amended to read as follows:
``(1) Definitions.--In this section:
``(A) Additional renewable fuel.--The term `additional
renewable fuel' means fuel that is produced from renewable
biomass and that is used to replace or reduce the quantity of
fossil fuel present in home heating oil or jet fuel.
``(B) Advanced biofuel.--
``(i) In general.--The term `advanced biofuel' means
renewable fuel, other than ethanol derived from corn starch,
that has lifecycle greenhouse gas emissions, as determined by
the Administrator, after notice and opportunity for comment,
that are at least 50 percent less than baseline lifecycle
greenhouse gas emissions.
``(ii) Inclusions.--The types of fuels eligible for
consideration as `advanced biofuel' may include any of the
following:
``(I) Ethanol derived from cellulose, hemicellulose, or
lignin.
``(II) Ethanol derived from sugar or starch (other than
corn starch).
``(III) Ethanol derived from waste material, including crop
residue, other vegetative waste material, animal waste, and
food waste and yard waste.
``(IV) Biomass-based diesel.
``(V) Biogas (including landfill gas and sewage waste
treatment gas) produced through the conversion of organic
matter from renewable biomass.
``(VI) Butanol or other alcohols produced through the
conversion of organic matter from renewable biomass.
``(VII) Other fuel derived from cellulosic biomass.
``(C) Baseline lifecycle greenhouse gas emissions.--The
term `baseline lifecycle greenhouse gas emissions' means the
average lifecycle greenhouse gas emissions, as determined by
the Administrator, after notice and opportunity for comment,
for gasoline or diesel (whichever is being replaced by the
renewable fuel) sold or distributed as transportation fuel in
2005.
``(D) Biomass-based diesel.--The term `biomass-based
diesel' means renewable fuel that is biodiesel as defined in
section 312(f) of the Energy Policy Act of 1992 (42 U.S.C.
13220(f)) and that has lifecycle greenhouse gas emissions, as
determined by the Administrator, after notice and opportunity
for comment, that are at least 50 percent less than the
baseline lifecycle greenhouse gas emissions. Notwithstanding
the preceding sentence, renewable fuel derived from co-
processing biomass with a petroleum feedstock shall be
advanced biofuel if it meets the requirements of subparagraph
(B), but is not biomass-based diesel.
``(E) Cellulosic biofuel.--The term `cellulosic biofuel'
means renewable fuel derived from any cellulose,
hemicellulose, or lignin that is derived from renewable
biomass and that has lifecycle greenhouse gas emissions, as
determined by the Administrator, that are at least 60 percent
less than the baseline lifecycle greenhouse gas emissions.
``(F) Conventional biofuel.--The term `conventional
biofuel' means renewable fuel that is ethanol derived from
corn starch.
``(G) Greenhouse gas.--The term `greenhouse gas' means
carbon dioxide, hydrofluorocarbons, methane, nitrous oxide,
perfluorocarbons, sulfur hexafluoride. The Administrator may
include any other anthropogenically-emitted gas that is
determined by the Administrator, after notice and comment, to
contribute to global warming.
``(H) Lifecycle greenhouse gas emissions.--The term
`lifecycle greenhouse gas emissions' means the aggregate
quantity of greenhouse gas emissions (including direct
emissions and significant indirect emissions such as
significant emissions from land use
[[Page H14325]]
changes), as determined by the Administrator, related to the
full fuel lifecycle, including all stages of fuel and
feedstock production and distribution, from feedstock
generation or extraction through the distribution and
delivery and use of the finished fuel to the ultimate
consumer, where the mass values for all greenhouse gases are
adjusted to account for their relative global warming
potential.
``(I) Renewable biomass.--The term `renewable biomass'
means each of the following:
``(i) Planted crops and crop residue harvested from
agricultural land cleared or cultivated at any time prior to
the enactment of this sentence that is either actively
managed or fallow, and nonforested.
``(ii) Planted trees and tree residue from actively managed
tree plantations on non-federal land cleared at any time
prior to enactment of this sentence, including land belonging
to an Indian tribe or an Indian individual, that is held in
trust by the United States or subject to a restriction
against alienation imposed by the United States.
``(iii) Animal waste material and animal byproducts.
``(iv) Slash and pre-commercial thinnings that are from
non-federal forestlands, including forestlands belonging to
an Indian tribe or an Indian individual, that are held in
trust by the United States or subject to a restriction
against alienation imposed by the United States, but not
forests or forestlands that are ecological communities with a
global or State ranking of critically imperiled, imperiled,
or rare pursuant to a State Natural Heritage Program, old
growth forest, or late successional forest.
``(v) Biomass obtained from the immediate vicinity of
buildings and other areas regularly occupied by people, or of
public infrastructure, at risk from wildfire.
``(vi) Algae.
``(vii) Separated yard waste or food waste, including
recycled cooking and trap grease.
``(J) Renewable fuel.--The term `renewable fuel' means fuel
that is produced from renewable biomass and that is used to
replace or reduce the quantity of fossil fuel present in a
transportation fuel.
``(K) Small refinery.--The term `small refinery' means a
refinery for which the average aggregate daily crude oil
throughput for a calendar year (as determined by dividing the
aggregate throughput for the calendar year by the number of
days in the calendar year) does not exceed 75,000 barrels.
``(L) Transportation fuel.--The term `transportation fuel'
means fuel for use in motor vehicles, motor vehicle engines,
nonroad vehicles, or nonroad engines (except for ocean-going
vessels).''.
SEC. 202. RENEWABLE FUEL STANDARD.
(a) Renewable Fuel Program.--Paragraph (2) of section
211(o) (42 U.S.C. 7545(o)(2)) of the Clean Air Act is amended
as follows:
(1) Regulations.--Clause (i) of subparagraph (A) is amended
by adding the following at the end thereof: ``Not later than
1 year after the date of enactment of this sentence, the
Administrator shall revise the regulations under this
paragraph to ensure that transportation fuel sold or
introduced into commerce in the United States (except in
noncontiguous States or territories), on an annual average
basis, contains at least the applicable volume of renewable
fuel, advanced biofuel, cellulosic biofuel, and biomass-based
diesel, determined in accordance with subparagraph (B) and,
in the case of any such renewable fuel produced from new
facilities that commence construction after the date of
enactment of this sentence, achieves at least a 20 percent
reduction in lifecycle greenhouse gas emissions compared to
baseline lifecycle greenhouse gas emissions.''
(2) Applicable volumes of renewable fuel.--Subparagraph (B)
is amended to read as follows:
``(B) Applicable volumes.--
``(i) Calendar years after 2005.--
``(I) Renewable fuel.--For the purpose of subparagraph (A),
the applicable volume of renewable fuel for the calendar
years 2006 through 2022 shall be determined in accordance
with the following table:
Applicable volume of renewable fuel
``Calendar year: (in billions of gallons):
2006..............................................................4.0
2007..............................................................4.7
2008..............................................................9.0
2009.............................................................11.1
2010............................................................12.95
2011............................................................13.95
2012.............................................................15.2
2013............................................................16.55
2014............................................................18.15
2015.............................................................20.5
2016............................................................22.25
2017.............................................................24.0
2018.............................................................26.0
2019.............................................................28.0
2020.............................................................30.0
2021.............................................................33.0
2022.............................................................36.0
``(II) Advanced biofuel.--For the purpose of subparagraph
(A), of the volume of renewable fuel required under subclause
(I), the applicable volume of advanced biofuel for the
calendar years 2009 through 2022 shall be determined in
accordance with the following table:
Applicable volume of advanced biofuel
``Calendar year: (in billions of gallons):
2009..............................................................0.6
2010.............................................................0.95
2011.............................................................1.35
2012..............................................................2.0
2013.............................................................2.75
2014.............................................................3.75
2015..............................................................5.5
2016.............................................................7.25
2017..............................................................9.0
2018.............................................................11.0
2019.............................................................13.0
2020.............................................................15.0
2021.............................................................18.0
2022.............................................................21.0
``(III) Cellulosic biofuel.--For the purpose of
subparagraph (A), of the volume of advanced biofuel required
under subclause (II), the applicable volume of cellulosic
biofuel for the calendar years 2010 through 2022 shall be
determined in accordance with the following table:
Applicable volume of cellulosic biofuel
``Calendar year: (in billions of gallons):
2010..............................................................0.1
2011.............................................................0.25
2012..............................................................0.5
2013..............................................................1.0
2014.............................................................1.75
2015..............................................................3.0
2016.............................................................4.25
2017..............................................................5.5
2018..............................................................7.0
2019..............................................................8.5
2020.............................................................10.5
2021.............................................................13.5
2022.............................................................16.0
``(IV) Biomass-based diesel.--For the purpose of
subparagraph (A), of the volume of advanced biofuel required
under subclause (II), the applicable volume of biomass-based
diesel for the calendar years 2009 through 2012 shall be
determined in accordance with the following table:
Applicable volume of biomass-based diesel
``Calendar year: (in billions of gallons):
2009..............................................................0.5
2010.............................................................0.65
2011.............................................................0.80
2012..............................................................1.0
``(ii) Other calendar years.--For the purposes of
subparagraph (A), the applicable volumes of each fuel
specified in the tables in clause (i) for calendar years
after the calendar years specified in the tables shall be
determined by the Administrator, in coordination with the
Secretary of Energy and the Secretary of Agriculture, based
on a review of the implementation of the program during
calendar years specified in the tables, and an analysis of--
``(I) the impact of the production and use of renewable
fuels on the environment, including on air quality, climate
change, conversion of wet lands, eco-systems, wildlife
habitat, water quality, and water supply;
``(II) the impact of renewable fuels on the energy security
of the United States;
``(III) the expected annual rate of future commercial
production of renewable fuels, including advanced biofuels in
each category (cellulosic biofuel and biomass-based diesel);
``(IV) the impact of renewable fuels on the infrastructure
of the United States, including deliverability of materials,
goods, and products other than renewable fuel, and the
sufficiency of infrastructure to deliver and use renewable
fuel;
``(V) the impact of the use of renewable fuels on the cost
to consumers of transportation fuel and on the cost to
transport goods; and
``(VI) the impact of the use of renewable fuels on other
factors, including job creation, the price and supply of
agricultural commodities, rural economic development, and
food prices.
The Administrator shall promulgate rules establishing the
applicable volumes under this clause no later than 14 months
before the first year for which such applicable volume will
apply.
``(iii) Applicable volume of advanced biofuel.--For the
purpose of making the determinations in clause (ii), for each
calendar year, the applicable volume of advanced biofuel
shall be at least the same percentage of the applicable
volume of renewable fuel as in calendar year 2022.
``(iv) Applicable volume of cellulosic biofuel.--For the
purpose of making the determinations in clause (ii), for each
calendar year, the applicable volume of cellulosic biofuel
established by the Administrator shall be based on the
assumption that the Administrator will not need to issue a
waiver for such years under paragraph (7)(D).
``(v) Minimum applicable volume of biomass-based diesel.--
For the purpose of making the determinations in clause (ii),
the applicable volume of biomass-based diesel shall not be
less than the applicable volume listed in clause (i)(IV) for
calendar year 2012.''.
(b) Applicable Percentages.--Paragraph (3) of section
211(o) of the Clean Air Act (42 U.S.C. 7545(o)(3)) is amended
as follows:
(1) In subparagraph (A), by striking ``2011'' and inserting
``2021.''
(2) In subparagraph (A), by striking ``gasoline'' and
inserting ``transportation fuel, biomass-based diesel, and
cellulosic biofuel''.
(3) In subparagraph (B), by striking ``2012'' and inserting
``2021'' in clause (ii)(I).
(4) In subparagraph (B), by striking gasoline'' and
inserting ``transportation fuel'' in clause (ii)(II).
[[Page H14326]]
(c) Modification of Greenhouse Gas Percentages.--Paragraph
(4) of section 211(o) of the Clean Air Act (42 U.S.C.
7545(o)(4)) is amended to read as follows:
``(4) Modification of greenhouse gas reduction
percentages.--
``(A) In general.--The Administrator may, in the
regulations under the last sentence of paragraph (2)(A)(i),
adjust the 20 percent, 50 percent, and 60 percent reductions
in lifecycle greenhouse gas emissions specified in paragraphs
(2)(A)(i)(relating to renewable fuel), (1)(D) (relating to
biomass-based diesel), (1)(B)(i)(relating to advanced
biofuel), and (1)(E) (relating to cellulosic biofuel) to a
lower percentage. For the 50 and 60 percent reductions, the
Administrator may make such an adjustment only if he
determines that generally such reduction is not commercially
feasible for fuels made using a variety of feedstocks,
technologies, and processes to meet the applicable reduction.
``(B) Amount of adjustment.--In promulgating regulations
under this paragraph, the specified 50 percent reduction in
greenhouse gas emissions from advanced biofuel and in
biomass-based diesel may not be reduced below 40 percent. The
specified 20 percent reduction in greenhouse gas emissions
from renewable fuel may not be reduced below 10 percent, and
the specified 60 percent reduction in greenhouse gas
emissions from cellulosic biofuel may not be reduced below 50
percent.
``(C) Adjusted reduction levels.--An adjustment under this
paragraph to a percent less than the specified 20 percent
greenhouse gas reduction for renewable fuel shall be the
minimum possible adjustment, and the adjusted greenhouse gas
reduction shall be established by the Administrator at the
maximum achievable level, taking cost in consideration, for
natural gas fired corn-based ethanol plants, allowing for the
use of a variety of technologies and processes. An adjustment
in the 50 or 60 percent greenhouse gas levels shall be the
minimum possible adjustment for the fuel or fuels concerned,
and the adjusted greenhouse gas reduction shall be
established at the maximum achievable level, taking cost in
consideration, allowing for the use of a variety of
feedstocks, technologies, and processes.
``(D) 5-year review.--Whenever the Administrator makes any
adjustment under this paragraph, not later than 5 years
thereafter he shall review and revise (based upon the same
criteria and standards as required for the initial
adjustment) the regulations establishing the adjusted level.
``(E) Subsequent adjustments.--After the Administrator has
promulgated a final rule under the last sentence of paragraph
(2)(A)(i) with respect to the method of determining lifecycle
greenhouse gas emissions, except as provided in subparagraph
(D), the Administrator may not adjust the percent greenhouse
gas reduction levels unless he determines that there has been
a significant change in the analytical methodology used for
determining the lifecycle greenhouse gas emissions. If he
makes such determination, he may adjust the 20, 50, or 60
percent reduction levels through rulemaking using the
criteria and standards set forth in this paragraph.
``(F) Limit on upward adjustments.--If, under subparagraph
(D) or (E), the Administrator revises a percent level
adjusted as provided in subparagraph (A), (B), and (C) to a
higher percent, such higher percent may not exceed the
applicable percent specified in paragraph (2)(A)(i),
(1)(D),(1)(B)(i), or (1)(E).
``(G) Applicability of adjustments.--If the Administrator
adjusts, or revises, a percent level referred to in this
paragraph or makes a change in the analytical methodology
used for determining the lifecycle greenhouse gas emissions,
such adjustment, revision, or change (or any combination
thereof) shall only apply to renewable fuel from new
facilities that commence construction after the effective
date of such adjustment, revision, or change.''.
(d) Credits for Additional Renewable Fuel.--Paragraph (5)
of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5))
is amended by adding the following new subparagraph at the
end thereof:
``(E) Credits for additional renewable fuel.--The
Administrator may issue regulations providing (i) for the
generation of an appropriate amount of credits by any person
that refines, blends, or imports additional renewable fuels
specified by the Administrator and (ii) for the use of such
credits by the generator, or the transfer of all or a portion
of the credits to another person, for the purpose of
complying with paragraph (2).''.
(e) Waivers.--
(1) In general.--Paragraph (7)(A) of section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is amended by
inserting ``, by any person subject to the requirements of
this subsection, or by the Administrator on his own motion''
after ``one or more States'' in subparagraph (A) and by
striking out ``State'' in subparagraph (B).
(2) Cellulosic biofuel.--Paragraph (7) of section 211(o) of
the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding
the following at the end thereof:
``(D) Cellulosic biofuel.--(i) For any calendar year for
which the projected volume of cellulosic biofuel production
is less than the minimum applicable volume established under
paragraph (2)(B), as determined by the Administrator based on
the estimate provided under paragraph (3)(A), not later than
November 30 of the preceding calendar year, the Administrator
shall reduce the applicable volume of cellulosic biofuel
required under paragraph (2)(B) to the projected volume
available during that calendar year. For any calendar year in
which the Administrator makes such a reduction, the
Administrator may also reduce the applicable volume of
renewable fuel and advanced biofuels requirement established
under paragraph (2)(B) by the same or a lesser volume.
``(ii) Whenever the Administrator reduces the minimum
cellulosic biofuel volume under this subparagraph, the
Administrator shall make available for sale cellulosic
biofuel credits at the higher of $0.25 per gallon or the
amount by which $3.00 per gallon exceeds the average
wholesale price of a gallon of gasoline in the United States.
Such amounts shall be adjusted for inflation by the
Administrator for years after 2008.
``(iii) 18 months after date of enactment of this
subparagraph, the Administrator shall promulgate regulations
to govern the issuance of credits under this subparagraph.
The regulations shall set forth the method for determining
the exact price of credits in the event of a waiver. The
price of such credits shall not be changed more frequently
than once each quarter. These regulations shall include such
provisions, including limiting the credits' uses and useful
life, as the Administrator deems appropriate to assist market
liquidity and transparency, to provide appropriate certainty
for regulated entities and renewable fuel producers, and to
limit any potential misuse of cellulosic biofuel credits to
reduce the use of other renewable fuels, and for such other
purposes as the Administrator determines will help achieve
the goals of this subsection. The regulations shall limit the
number of cellulosic biofuel credits for any calendar year to
the minimum applicable volume (as reduced under this
subparagraph) of cellulosic biofuel for that year.''.
(3) Biomass-based diesel.--Paragraph (7) of section 211(o)
of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by
adding the following at the end thereof:
``(E) Biomass-based diesel.--
``(i) Market evaluation.--The Administrator, in
consultation with the Secretary of Energy and the Secretary
of Agriculture, shall periodically evaluate the impact of the
biomass-based diesel requirements established under this
paragraph on the price of diesel fuel.
``(ii) Waiver.--If the Administrator determines that there
is a significant renewable feedstock disruption or other
market circumstances that would make the price of biomass-
based diesel fuel increase significantly, the Administrator,
in consultation with the Secretary of Energy and the
Secretary of Agriculture, shall issue an order to reduce, for
up to a 60-day period, the quantity of biomass-based diesel
required under subparagraph (A) by an appropriate quantity
that does not exceed 15 percent of the applicable annual
requirement for biomass-based diesel. For any calendar year
in which the Administrator makes a reduction under this
subparagraph, the Administrator may also reduce the
applicable volume of renewable fuel and advanced biofuels
requirement established under paragraph (2)(B) by the same or
a lesser volume.
``(iii) Extensions.--If the Administrator determines that
the feedstock disruption or circumstances described in clause
(ii) is continuing beyond the 60-day period described in
clause (ii) or this clause, the Administrator, in
consultation with the Secretary of Energy and the Secretary
of Agriculture, may issue an order to reduce, for up to an
additional 60-day period, the quantity of biomass-based
diesel required under subparagraph (A) by an appropriate
quantity that does not exceed an additional 15 percent of the
applicable annual requirement for biomass-based diesel.
``(F) Modification of applicable volumes.--For any of the
tables in paragraph (2)(B), if the Administrator waives--
``(i) at least 20 percent of the applicable volume
requirement set forth in any such table for 2 consecutive
years; or
``(ii) at least 50 percent of such volume requirement for a
single year,
the Administrator shall promulgate a rule (within one year
after issuing such waiver) that modifies the applicable
volumes set forth in the table concerned for all years
following the final year to which the waiver applies, except
that no such modification in applicable volumes shall be made
for any year before 2016. In promulgating such a rule, the
Administrator shall comply with the processes, criteria, and
standards set forth in paragraph (2)(B)(ii).''.
SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD.
(a) In General.--The Secretary of Energy, in consultation
with the Secretary of Agriculture and the Administrator of
the Environmental Protection Agency, shall enter into an
arrangement with the National Academy of Sciences under which
the Academy shall conduct a study to assess the impact of the
requirements described in section 211(o) of the Clean Air Act
on each industry relating to the production of feed grains,
livestock, food, forest products, and energy.
(b) Participation.--In conducting the study under this
section, the National Academy of Sciences shall seek the
participation, and consider the input, of--
(1) producers of feed grains;
(2) producers of livestock, poultry, and pork products;
(3) producers of food and food products;
(4) producers of energy;
[[Page H14327]]
(5) individuals and entities interested in issues relating
to conservation, the environment, and nutrition;
(6) users and consumer of renewable fuels;
(7) producers and users of biomass feedstocks; and
(8) land grant universities.
(c) Considerations.--In conducting the study, the National
Academy of Sciences shall consider--
(1) the likely impact on domestic animal agriculture
feedstocks that, in any crop year, are significantly below
current projections;
(2) policy options to alleviate the impact on domestic
animal agriculture feedstocks that are significantly below
current projections; and
(3) policy options to maintain regional agricultural and
silvicultural capability.
(d) Components.--The study shall include--
(1) a description of the conditions under which the
requirements described in section 211(o) of the Clean Air Act
should be suspended or reduced to prevent adverse impacts to
domestic animal agriculture feedstocks described in
subsection (c)(2) or regional agricultural and silvicultural
capability described in subsection (c)(3); and
(2) recommendations for the means by which the Federal
Government could prevent or minimize adverse economic
hardships and impacts.
(e) Deadline for Completion of Study.--Not later than 18
months after the date of enactment of this Act, the Secretary
shall submit to Congress a report that describes the results
of the study under this section.
(f) Periodic Reviews.--Section 211(o) of the Clean Air Act
is amended by adding the following at the end thereof:
``(12) Periodic reviews.--To allow for the appropriate
adjustment of the requirements described in subparagraph (B)
of paragraph (2), the Administrator shall conduct periodic
reviews of--
``(A) existing technologies;
``(B) the feasibility of achieving compliance with the
requirements; and
``(C) the impacts of the requirements described in
subsection (a)(2) on each individual and entity described in
paragraph (2).''.
SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS.
(a) In General.--Not later than 3 years after the enactment
of this section and every 3 years thereafter, the
Administrator of the Environmental Protection Agency, in
consultation with the Secretary of Agriculture and the
Secretary of Energy, shall assess and report to Congress on
the impacts to date and likely future impacts of the
requirements of section 211(o) of the Clean Air Act on the
following:
(1) Environmental issues, including air quality, effects on
hypoxia, pesticides, sediment, nutrient and pathogen levels
in waters, acreage and function of waters, and soil
environmental quality.
(2) Resource conservation issues, including soil
conservation, water availability, and ecosystem health and
biodiversity, including impacts on forests, grasslands, and
wetlands.
(3) The growth and use of cultivated invasive or noxious
plants and their impacts on the environment and agriculture.
In advance of preparing the report required by this
subsection, the Administrator may seek the views of the
National Academy of Sciences or another appropriate
independent research institute. The report shall include the
annual volume of imported renewable fuels and feedstocks for
renewable fuels, and the environmental impacts outside the
United States of producing such fuels and feedstocks. The
report required by this subsection shall include
recommendations for actions to address any adverse impacts
found.
(b) Effect on Air Quality and Other Environmental
Requirements.--Except as provided in section 211(o)(13) of
the Clean Air Act, nothing in the amendments made by this
title to section 211(o) of the Clean Air Act shall be
construed as superseding, or limiting, any more
environmentally protective requirement under the Clean Air
Act, or under any other provision of State or Federal law or
regulation, including any environmental law or regulation.
SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABELING.
(a) In General.--Each retail diesel fuel pump shall be
labeled in a manner that informs consumers of the percent of
biomass-based diesel or biodiesel that is contained in the
biomass-based diesel blend or biodiesel blend that is offered
for sale, as determined by the Federal Trade Commission.
(b) Labeling Requirements.--Not later than 180 days after
the date of enactment of this section, the Federal Trade
Commission shall promulgate biodiesel labeling requirements
as follows:
(1) Biomass-based diesel blends or biodiesel blends that
contain less than or equal to 5 percent biomass-based diesel
or biodiesel by volume and that meet ASTM D975 diesel
specifications shall not require any additional labels.
(2) Biomass based diesel blends or biodiesel blends that
contain more than 5 percent biomass-based diesel or biodiesel
by volume but not more than 20 percent by volume shall be
labeled ``contains biomass-based diesel or biodiesel in
quantities between 5 percent and 20 percent''.
(3) Biomass-based diesel or biodiesel blends that contain
more than 20 percent biomass based or biodiesel by volume
shall be labeled ``contains more than 20 percent biomass-
based diesel or biodiesel''.
(c) Definitions.--In this section:
(1) Astm.--The term ``ASTM'' means the American Society of
Testing and Materials.
(2) Biomass-based diesel.--The term ``biomass-based
diesel'' means biodiesel as defined in section 312(f) of the
Energy Policy Act of 1992 (42 U.S.C. 13220(f)).
(3) Biodiesel.--The term ``biodiesel'' means the monoalkyl
esters of long chain fatty acids derived from plant or animal
matter that meet--
(A) the registration requirements for fuels and fuel
additives under this section; and
(B) the requirements of ASTM standard D6751.
(4) Biomass-based diesel and biodiesel blends.--The terms
``biomass-based diesel blend'' and ``biodiesel blend'' means
a blend of ``biomass-based diesel'' or ``biodiesel'' fuel
that is blended with petroleum based diesel fuel.
SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY
IN ELECTRIC VEHICLES.
(a) Definition of Electric Vehicle.--In this section, the
term ``electric vehicle'' means an electric motor vehicle (as
defined in section 601 of the Energy Policy Act of 1992 (42
U.S.C. 13271)) for which the rechargeable storage battery--
(1) receives a charge directly from a source of electric
current that is external to the vehicle; and
(2) provides a minimum of 80 percent of the motive power of
the vehicle.
(b) Study.--The Administrator of the Environmental
Protection Agency shall conduct a study on the feasibility of
issuing credits under the program established under section
211(o) of the Clean Air Act to electric vehicles powered by
electricity produced from renewable energy sources.
(c) Report.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Energy and Natural Resources of the United
States Senate and the Committee on Energy and Commerce of the
United States House of Representatives a report that
describes the results of the study, including a description
of--
(1) existing programs and studies on the use of renewable
electricity as a means of powering electric vehicles; and
(2) alternatives for--
(A) designing a pilot program to determine the feasibility
of using renewable electricity to power electric vehicles as
an adjunct to a renewable fuels mandate;
(B) allowing the use, under the pilot program designed
under subparagraph (A), of electricity generated from nuclear
energy as an additional source of supply;
(C) identifying the source of electricity used to power
electric vehicles; and
(D) equating specific quantities of electricity to
quantities of renewable fuel under section 211(o) of the
Clean Air Act.
SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.
(a) In General.--The Secretary of Energy shall establish a
grant program to encourage the production of advanced
biofuels.
(b) Requirements and Priority.--In making grants under this
section, the Secretary--
(1) shall make awards to the proposals for advanced
biofuels with the greatest reduction in lifecycle greenhouse
gas emissions compared to the comparable motor vehicle fuel
lifecycle emissions during calendar year 2005; and
(2) shall not make an award to a project that does not
achieve at least a 80 percent reduction in such lifecycle
greenhouse gas emissions.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $500,000,000 for
the period of fiscal years 2008 through 2015.
SEC. 208. INTEGRATED CONSIDERATION OF WATER QUALITY IN
DETERMINATIONS ON FUELS AND FUEL ADDITIVES.
Section 211(c)(1) of the Clean Air Act (42 U.S.C.
7545(c)(1)) is amended as follows:
(1) By striking ``nonroad vehicle (A) if in the judgment of
the Administrator'' and inserting ``nonroad vehicle if, in
the judgment of the Administrator, any fuel or fuel additive
or'' ; and
(2) In subparagraph (A), by striking ``air pollution
which'' and inserting ``air pollution or water pollution
(including any degradation in the quality of groundwater)
that''.
SEC. 209. ANTI-BACKSLIDING.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
``(v) Prevention of Air Quality Deterioration.--
``(1) Study.--
``(A) In general.--Not later than 18 months after the date
of enactment of this subsection, the Administrator shall
complete a study to determine whether the renewable fuel
volumes required by this section will adversely impact air
quality as a result of changes in vehicle and engine
emissions of air pollutants regulated under this Act.
``(B) Considerations.--The study shall include
consideration of--
``(i) different blend levels, types of renewable fuels, and
available vehicle technologies; and
``(ii) appropriate national, regional, and local air
quality control measures.
``(2) Regulations.--Not later than 3 years after the date
of enactment of this subsection, the Administrator shall--
[[Page H14328]]
``(A) promulgate fuel regulations to implement appropriate
measures to mitigate, to the greatest extent achievable,
considering the results of the study under paragraph (1), any
adverse impacts on air quality, as the result of the
renewable volumes required by this section; or
``(B) make a determination that no such measures are
necessary.''.
SEC. 210. EFFECTIVE DATE, SAVINGS PROVISION, AND TRANSITION
RULES.
(a) Transition Rules.--(1) For calendar year 2008,
transportation fuel sold or introduced into commerce in the
United States (except in noncontiguous States or
territories), that is produced from facilities that commence
construction after the date of enactment of this Act shall be
treated as renewable fuel within the meaning of section
211(o) of the Clean Air Act only if it achieves at least a 20
percent reduction in lifecycle greenhouse gas emissions
compared to baseline lifecycle greenhouse gas emissions. For
calendar years 2008 and 2009, any ethanol plant that is fired
with natural gas, biomass, or any combination thereof is
deemed to be in compliance with such 20 percent reduction
requirement and with the 20 percent reduction requirement of
section 211(o)(1) of the Clean Air Act. The terms used in
this subsection shall have the same meaning as provided in
the amendment made by this Act to section 211(o) of the Clean
Air Act.
(2) Until January 1, 2009, the Administrator of the
Environmental Protection Agency shall implement section
211(o) of the Clean Air Act and the rules promulgated under
that section in accordance with the provisions of that
section as in effect before the enactment of this Act and in
accordance with the rules promulgated before the enactment of
this Act, except that for calendar year 2008, the number
``8.5'' shall be substituted for the number ``5.4'' in the
table in section 211(o)(2)(B) and in the corresponding rules
promulgated to carry out those provisions. The Administrator
is authorized to take such other actions as may be necessary
to carry out this paragraph notwithstanding any other
provision of law.
(b) Savings Clause.--Section 211(o) of the Clean Air Act
(42 U.S.C. 7545(o)) is amended by adding the following new
paragraph at the end thereof:
``(13) Effect on other provisions.--Nothing in this
subsection, or regulations issued pursuant to this
subsection, shall affect or be construed to affect the
regulatory status of carbon dioxide or any other greenhouse
gas, or to expand or limit regulatory authority regarding
carbon dioxide or any other greenhouse gas, for purposes of
other provisions (including section 165) of this Act. The
previous sentence shall not affect implementation and
enforcement of this subsection.''.
(c) Effective Date.--The amendments made by this title to
section 211(o) of the Clean Air Act shall take effect January
1, 2009, except that the Administrator shall promulgate
regulations to carry out such amendments not later than one
year after the enactment of this Act.
Subtitle B--Biofuels Research and Development
SEC. 221. BIODIESEL.
(a) Biodiesel Study.--Not later than 180 days after the
date of enactment of this Act, the Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall submit to Congress a report on any research and
development challenges inherent in increasing the proportion
of diesel fuel sold in the United States that is biodiesel.
(b) Material for the Establishment of Standards.--The
Director of the National Institute of Standards and
Technology, in consultation with the Secretary, shall make
publicly available the physical property data and
characterization of biodiesel and other biofuels as
appropriate.
SEC. 222. BIOGAS.
Not later than 180 days after the date of enactment of this
Act, the Secretary, in consultation with the Administrator of
the Environmental Protection Agency, shall submit to Congress
a report on any research and development challenges inherent
in increasing the amount of transportation fuels sold in the
United States that are fuel with biogas or a blend of biogas
and natural gas.
SEC. 223. GRANTS FOR BIOFUEL PRODUCTION RESEARCH AND
DEVELOPMENT IN CERTAIN STATES.
(a) In General.--The Secretary shall provide grants to
eligible entities for research, development, demonstration,
and commercial application of biofuel production technologies
in States with low rates of ethanol production, including low
rates of production of cellulosic biomass ethanol, as
determined by the Secretary.
(b) Eligibility.--To be eligible to receive a grant under
this section, an entity shall--
(1)(A) be an institution of higher education (as defined in
section 2 of the Energy Policy Act of 2005 (42 U.S.C.
15801)), including tribally controlled colleges or
universities, located in a State described in subsection (a);
or
(B) be a consortium including at least 1 such institution
of higher education, and industry, State agencies, Indian
tribal agencies, National Laboratories, or local government
agencies located in the State; and
(2) have proven experience and capabilities with relevant
technologies.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$25,000,000 for each of fiscal years 2008 through 2010.
SEC. 224. BIOREFINERY ENERGY EFFICIENCY.
Section 932 of Energy Policy Act of 2005 (42 U.S.C. 16232)
is amended by adding at the end the following new
subsections:
``(g) Biorefinery Energy Efficiency.--The Secretary shall
establish a program of research, development, demonstration,
and commercial application for increasing energy efficiency
and reducing energy consumption in the operation of
biorefinery facilities.
``(h) Retrofit Technologies for the Development of Ethanol
From Cellulosic Materials.--The Secretary shall establish a
program of research, development, demonstration, and
commercial application on technologies and processes to
enable biorefineries that exclusively use corn grain or corn
starch as a feedstock to produce ethanol to be retrofitted to
accept a range of biomass, including lignocellulosic
feedstocks.''.
SEC. 225. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES
TO USE E-85 FUEL.
(a) In General.--The Secretary, in consultation with the
Secretary of Transportation and the Administrator of the
Environmental Protection Agency, shall conduct a study of
whether optimizing flexible fueled vehicles to operate using
E-85 fuel would increase the fuel efficiency of flexible
fueled vehicles.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Science and Technology and the Committee on
Energy and Commerce of the House of Representatives, and to
the Committee on Energy and Natural Resources, the Committee
on Environment and Public Works, and the Committee on
Commerce, Science, and Transportation of the Senate, a report
that describes the results of the study under this section,
including any recommendations of the Secretary.
SEC. 226. STUDY OF ENGINE DURABILITY AND PERFORMANCE
ASSOCIATED WITH THE USE OF BIODIESEL.
(a) In General.--Not later than 30 days after the date of
enactment of this Act, the Secretary, in consultation with
the Administrator of the Environmental Protection Agency,
shall initiate a study on the effects of the use of biodiesel
on the performance and durability of engines and engine
systems.
(b) Components.--The study under this section shall
include--
(1) an assessment of whether the use of biodiesel lessens
the durability and performance of conventional diesel engines
and engine systems; and
(2) an assessment of the effects referred to in subsection
(a) with respect to biodiesel blends at varying
concentrations, including the following percentage
concentrations of biodiesel:
(A) 5 percent biodiesel.
(B) 10 percent biodiesel.
(C) 20 percent biodiesel.
(D) 30 percent biodiesel.
(E) 100 percent biodiesel.
(c) Report.--Not later than 24 months after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Science and Technology and the Committee on
Energy and Commerce of the House of Representatives, and to
the Committee on Energy and Natural Resources and the
Committee on Environment and Public Works of the Senate, a
report that describes the results of the study under this
section, including any recommendations of the Secretary.
SEC. 227. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS
VEHICLES.
(a) In General.--The Secretary, in consultation with the
Administrator of the Environmental Protection Agency and the
Secretary of Transportation, shall conduct a study of methods
of increasing the fuel efficiency of vehicles using biogas by
optimizing natural gas vehicle systems that can operate on
biogas, including the advancement of vehicle fuel systems and
the combination of hybrid-electric and plug-in hybrid
electric drive platforms with natural gas vehicle systems
using biogas.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources, the Committee on
Environment and Public Works, and the Committee on Commerce,
Science, and Transportation of the Senate, and to the
Committee on Science and Technology and the Committee on
Energy and Commerce of the House of Representatives, a report
that describes the results of the study, including any
recommendations of the Secretary.
SEC. 228. ALGAL BIOMASS.
(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Science and Technology of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report on the progress of the
research and development that is being conducted on the use
of algae as a feedstock for the production of biofuels.
(b) Contents.--The report shall identify continuing
research and development challenges and any regulatory or
other barriers found by the Secretary that hinder the use of
this resource, as well as recommendations on how to encourage
and further its development as a viable transportation fuel.
[[Page H14329]]
SEC. 229. BIOFUELS AND BIOREFINERY INFORMATION CENTER.
(a) In General.--The Secretary, in cooperation with the
Secretary of Agriculture, shall establish a biofuels and
biorefinery information center to make available to
interested parties information on--
(1) renewable fuel feedstocks, including the varieties of
fuel capable of being produced from various feedstocks;
(2) biorefinery processing techniques related to various
renewable fuel feedstocks;
(3) the distribution, blending, storage, and retail
dispensing infrastructure necessary for the transport and use
of renewable fuels;
(4) Federal and State laws and incentives related to
renewable fuel production and use;
(5) renewable fuel research and development advancements;
(6) renewable fuel development and biorefinery processes
and technologies;
(7) renewable fuel resources, including information on
programs and incentives for renewable fuels;
(8) renewable fuel producers;
(9) renewable fuel users; and
(10) potential renewable fuel users.
(b) Administration.--In administering the biofuels and
biorefinery information center, the Secretary shall--
(1) continually update information provided by the center;
(2) make information available relating to processes and
technologies for renewable fuel production;
(3) make information available to interested parties on the
process for establishing a biorefinery; and
(4) make information and assistance provided by the center
available through a toll-free telephone number and website.
(c) Coordination and Nonduplication.--To maximum extent
practicable, the Secretary shall ensure that the activities
under this section are coordinated with, and do not duplicate
the efforts of, centers at other government agencies.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
SEC. 230. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH.
(a) Definition of Eligible Entity.--In this section, the
term ``eligible entity'' means--
(1) an 1890 Institution (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7061));
(2) a part B institution (as defined in section 322 of the
Higher Education Act of 1965 (20 U.S.C. 1061)) (commonly
referred to as ``Historically Black Colleges and
Universities'');
(3) a tribal college or university (as defined in section
316(b) of the Higher Education Act of 1965 (20 U.S.C.
1059c(b)); or
(4) a Hispanic-serving institution (as defined in section
502(a) of the Higher Education Act of 1965 (20 U.S.C.
1101a(a)).
(b) Grants.--The Secretary shall make cellulosic ethanol
and biofuels research and development grants to 10 eligible
entities selected by the Secretary to receive a grant under
this section through a peer-reviewed competitive process.
(c) Collaboration.--An eligible entity that is selected to
receive a grant under subsection (b) shall collaborate with 1
of the Bioenergy Research Centers of the Office of Science of
the Department.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to make grants described
in subsection (b) $50,000,000 for fiscal year 2008, to remain
available until expended.
SEC. 231. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION
OF APPROPRIATION.
Section 931 of the Energy Policy Act of 2005 (42 U.S.C.
16231) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``and'' at the end;
(B) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(4) $963,000,000 for fiscal year 2010.''; and
(2) in subsection (c)--
(A) in paragraph (2)--
(i) by striking ``$251,000,000'' and inserting
``$377,000,000''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (3)--
(i) by striking ``$274,000,000'' and inserting
``$398,000,000''; and
(ii) by striking the period at the end and inserting ``;
and''; and
(C) by adding at the end the following:
``(4) $419,000,000 for fiscal year 2010, of which
$150,000,000 shall be for section 932(d).''.
SEC. 232. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.
(a) In General.--Section 977 of the Energy Policy Act of
2005 (42 U.S.C. 16317) is amended--
(1) in subsection (a)(1), by striking ``and computational
biology'' and inserting ``computational biology, and
environmental science''; and
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``in sustainable
production systems that reduce greenhouse gas emissions''
after ``hydrogen'';
(B) in paragraph (3), by striking ``and'' at the end;
(C) by redesignating paragraph (4) as paragraph (5); and
(D) by inserting after paragraph (3) the following:
``(4) develop cellulosic and other feedstocks that are less
resource and land intensive and that promote sustainable use
of resources, including soil, water, energy, forests, and
land, and ensure protection of air, water, and soil quality;
and''.
(b) Tools and Evaluation.--Section 307(d) of the Biomass
Research and Development Act of 2000 (7 U.S.C. 8606(d)) is
amended--
(1) in paragraph (3)(E), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) the improvement and development of analytical tools
to facilitate the analysis of life-cycle energy and
greenhouse gas emissions, including emissions related to
direct and indirect land use changes, attributable to all
potential biofuel feedstocks and production processes; and
``(6) the systematic evaluation of the impact of expanded
biofuel production on the environment, including forest
lands, and on the food supply for humans and animals.''.
(c) Small-Scale Production and Use of Biofuels.--Section
307(e) of the Biomass Research and Development Act of 2000 (7
U.S.C. 8606(e)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) to facilitate small-scale production, local, and on-
farm use of biofuels, including the development of small-
scale gasification technologies for production of biofuel
from cellulosic feedstocks.''.
SEC. 233. BIOENERGY RESEARCH CENTERS.
Section 977 of the Energy Policy Act of 2005 (42 U.S.C.
16317) is amended by adding at the end the following:
``(f) Bioenergy Research Centers.--
``(1) Establishment of centers.--In carrying out the
program under subsection (a), the Secretary shall establish
at least 7 bioenergy research centers, which may be of
varying size.
``(2) Geographic distribution.--The Secretary shall
establish at least 1 bioenergy research center in each
Petroleum Administration for Defense District or Subdistrict
of a Petroleum Administration for Defense District.
``(3) Goals.--The goals of the centers established under
this subsection shall be to accelerate basic transformational
research and development of biofuels, including biological
processes.
``(4) Selection and duration.--
``(A) In general.--A center under this subsection shall be
selected on a competitive basis for a period of 5 years.
``(B) Reapplication.--After the end of the period described
in subparagraph (A), a grantee may reapply for selection on a
competitive basis.
``(5) Inclusion.--A center that is in existence on the date
of enactment of this subsection--
``(A) shall be counted towards the requirement for
establishment of at least 7 bioenergy research centers; and
``(B) may continue to receive support for a period of 5
years beginning on the date of establishment of the
center.''.
SEC. 234. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT
PROGRAM.
(a) Establishment.--The Secretary shall establish a
competitive grant program, in a geographically diverse
manner, for projects submitted for consideration by
institutions of higher education to conduct research and
development of renewable energy technologies. Each grant made
shall not exceed $2,000,000.
(b) Eligibility.--Priority shall be given to institutions
of higher education with--
(1) established programs of research in renewable energy;
(2) locations that are low income or outside of an
urbanized area;
(3) a joint venture with an Indian tribe; and
(4) proximity to trees dying of disease or insect
infestation as a source of woody biomass.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary $25,000,000 for carrying
out this section.
(d) Definitions.--In this section:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning as defined in section 126(c) of the Energy Policy Act
of 2005.
(2) Renewable energy.--The term ``renewable energy'' has
the meaning as defined in section 902 of the Energy Policy
Act of 2005.
(3) Urbanized area.--The term ``urbanized area'' has the
mean as defined by the U.S. Bureau of the Census.
Subtitle C--Biofuels Infrastructure
SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS
RELATED TO RENEWABLE FUEL INFRASTRUCTURE.
(a) In General.--Title I of the Petroleum Marketing
Practices Act (15 U.S.C. 2801 et seq.) is amended by adding
at the end the following:
``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF
RENEWABLE FUEL PUMPS.
``(a) Definition.--In this section:
``(1) Renewable fuel.--The term `renewable fuel' means any
fuel--
``(A) at least 85 percent of the volume of which consists
of ethanol; or
``(B) any mixture of biodiesel and diesel or renewable
diesel (as defined in regulations
[[Page H14330]]
adopted pursuant to section 211(o) of the Clean Air Act (40
CFR, Part 80)), determined without regard to any use of
kerosene and containing at least 20 percent biodiesel or
renewable diesel.
``(2) Franchise-related document.--The term `franchise-
related document' means--
``(A) a franchise under this Act; and
``(B) any other contract or directive of a franchisor
relating to terms or conditions of the sale of fuel by a
franchisee.
``(b) Prohibitions.--
``(1) In general.--No franchise-related document entered
into or renewed on or after the date of enactment of this
section shall contain any provision allowing a franchisor to
restrict the franchisee or any affiliate of the franchisee
from--
``(A) installing on the marketing premises of the
franchisee a renewable fuel pump or tank, except that the
franchisee's franchisor may restrict the installation of a
tank on leased marketing premises of such franchisor;
``(B) converting an existing tank or pump on the marketing
premises of the franchisee for renewable fuel use, so long as
such tank or pump and the piping connecting them are either
warranted by the manufacturer or certified by a recognized
standards setting organization to be suitable for use with
such renewable fuel;
``(C) advertising (including through the use of signage)
the sale of any renewable fuel;
``(D) selling renewable fuel in any specified area on the
marketing premises of the franchisee (including any area in
which a name or logo of a franchisor or any other entity
appears);
``(E) purchasing renewable fuel from sources other than the
franchisor if the franchisor does not offer its own renewable
fuel for sale by the franchisee;
``(F) listing renewable fuel availability or prices,
including on service station signs, fuel dispensers, or light
poles; or
``(G) allowing for payment of renewable fuel with a credit
card,
so long as such activities described in subparagraphs (A)
through (G) do not constitute mislabeling, misbranding,
willful adulteration, or other trademark violations by the
franchisee.
``(2) Effect of provision.--Nothing in this section shall
be construed to preclude a franchisor from requiring the
franchisee to obtain reasonable indemnification and insurance
policies.
``(c) Exception to 3-Grade Requirement.--No franchise-
related document that requires that 3 grades of gasoline be
sold by the applicable franchisee shall prevent the
franchisee from selling an renewable fuel in lieu of 1, and
only 1, grade of gasoline.''.
(b) Enforcement.--Section 105 of the Petroleum Marketing
Practices Act (15 U.S.C. 2805) is amended by striking ``102
or 103'' each place it appears and inserting ``102, 103, or
107''.
(c) Conforming Amendments.--
(1) In general.--Section 101(13) of the Petroleum Marketing
Practices Act (15 U.S.C. 2801(13)) is amended by aligning the
margin of subparagraph (C) with subparagraph (B).
(2) Table of contents.--The table of contents of the
Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is
amended--
(A) by inserting after the item relating to section 106 the
following:
``Sec. 107. Prohibition on restriction of installation of renewable
fuel pumps.''; and
(B) by striking the item relating to section 202 and
inserting the following:
``Sec. 202. Automotive fuel rating testing and disclosure
requirements.''.
SEC. 242. RENEWABLE FUEL DISPENSER REQUIREMENTS.
(a) Market Penetration Reports.--The Secretary, in
consultation with the Secretary of Transportation, shall
determine and report to Congress annually on the market
penetration for flexible-fuel vehicles in use within
geographic regions to be established by the Secretary.
(b) Dispenser Feasibility Study.--Not later than 24 months
after the date of enactment of this Act, the Secretary, in
consultation with the Department of Transportation, shall
report to the Congress on the feasibility of requiring motor
fuel retailers to install E-85 compatible dispensers and
related systems at retail fuel facilities in regions where
flexible-fuel vehicle market penetration has reached 15
percent of motor vehicles. In conducting such study, the
Secretary shall consider and report on the following factors:
(1) The commercial availability of E-85 fuel and the number
of competing E-85 wholesale suppliers in a given region.
(2) The level of financial assistance provided on an annual
basis by the Federal Government, State governments, and
nonprofit entities for the installation of E-85 compatible
infrastructure.
(3) The number of retailers whose retail locations are
unable to support more than 2 underground storage tank
dispensers.
(4) The expense incurred by retailers in the installation
and sale of E-85 compatible dispensers and related systems
and any potential effects on the price of motor vehicle fuel.
SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY.
(a) In General.--The Secretary, in coordination with the
Secretary of Transportation, shall conduct a study of the
feasibility of the construction of pipelines dedicated to the
transportation of ethanol.
(b) Factors for Consideration.--In conducting the study
under subsection (a), the Secretary shall take into
consideration--
(1) the quantity of ethanol production that would make
dedicated pipelines economically viable;
(2) existing or potential barriers to the construction of
pipelines dedicated to the transportation of ethanol,
including technical, siting, financing, and regulatory
barriers;
(3) market risk (including throughput risk) and means of
mitigating the risk;
(4) regulatory, financing, and siting options that would
mitigate the risk and help ensure the construction of 1 or
more pipelines dedicated to the transportation of ethanol;
(5) financial incentives that may be necessary for the
construction of pipelines dedicated to the transportation of
ethanol, including the return on equity that sponsors of the
initial dedicated ethanol pipelines will require to invest in
the pipelines;
(6) technical factors that may compromise the safe
transportation of ethanol in pipelines, including
identification of remedial and preventive measures to ensure
pipeline integrity; and
(7) such other factors as the Secretary considers to be
appropriate.
(c) Report.--Not later than 15 months after the date of
enactment of this Act, the Secretary shall submit to Congress
a report describing the results of the study conducted under
this section.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$1,000,000 for each of fiscal years 2008 and 2009, to remain
available until expended.
SEC. 244. RENEWABLE FUEL INFRASTRUCTURE GRANTS.
(a) Definition of Renewable Fuel Blend.--For purposes of
this section, the term ``renewable fuel blend'' means
gasoline blend that contain not less than 11 percent, and not
more than 85 percent, renewable fuel or diesel fuel that
contains at least 10 percent renewable fuel.
(b) Infrastructure Development Grants.--
(1) Establishment.--The Secretary shall establish a program
for making grants for providing assistance to retail and
wholesale motor fuel dealers or other entities for the
installation, replacement, or conversion of motor fuel
storage and dispensing infrastructure to be used exclusively
to store and dispense renewable fuel blends.
(2) Selection criteria.--Not later than 12 months after the
date of enactment of this Act, the Secretary shall establish
criteria for evaluating applications for grants under this
subsection that will maximize the availability and use of
renewable fuel blends, and that will ensure that renewable
fuel blends are available across the country. Such criteria
shall provide for--
(A) consideration of the public demand for each renewable
fuel blend in a particular geographic area based on State
registration records showing the number of flexible-fuel
vehicles;
(B) consideration of the opportunity to create or expand
corridors of renewable fuel blend stations along interstate
or State highways;
(C) consideration of the experience of each applicant with
previous, similar projects;
(D) consideration of population, number of flexible-fuel
vehicles, number of retail fuel outlets, and saturation of
flexible-fuel vehicles; and
(E) priority consideration to applications that--
(i) are most likely to maximize displacement of petroleum
consumption, measured as a total quantity and a percentage;
(ii) are best able to incorporate existing infrastructure
while maximizing, to the extent practicable, the use of
renewable fuel blends; and
(iii) demonstrate the greatest commitment on the part of
the applicant to ensure funding for the proposed project and
the greatest likelihood that the project will be maintained
or expanded after Federal assistance under this subsection is
completed.
(3) Limitations.--Assistance provided under this subsection
shall not exceed--
(A) 33 percent of the estimated cost of the installation,
replacement, or conversion of motor fuel storage and
dispensing infrastructure; or
(B) $180,000 for a combination of equipment at any one
retail outlet location.
(4) Operation of renewable fuel blend stations.--The
Secretary shall establish rules that set forth requirements
for grant recipients under this section that include
providing to the public the renewable fuel blends,
establishing a marketing plan that informs consumers of the
price and availability of the renewable fuel blends, clearly
labeling the dispensers and related equipment, and providing
periodic reports on the status of the renewable fuel blend
sales, the type and amount of the renewable fuel blends
dispensed at each location, and the average price of such
fuel.
(5) Notification requirements.--Not later than the date on
which each renewable fuel blend station begins to offer
renewable fuel blends to the public, the grant recipient that
used grant funds to construct or upgrade such station shall
notify the Secretary of such opening. The Secretary shall add
each
[[Page H14331]]
new renewable fuel blend station to the renewable fuel blend
station locator on its Website when it receives notification
under this subsection.
(6) Double counting.--No person that receives a credit
under section 30C of the Internal Revenue Code of 1986 may
receive assistance under this section.
(7) Reservation of funds.--The Secretary shall reserve
funds appropriated for the renewable fuel blends
infrastructure development grant program for technical and
marketing assistance described in subsection (c).
(c) Retail Technical and Marketing Assistance.--The
Secretary shall enter into contracts with entities with
demonstrated experience in assisting retail fueling stations
in installing refueling systems and marketing renewable fuel
blends nationally, for the provision of technical and
marketing assistance to recipients of grants under this
section. Such assistance shall include--
(1) technical advice for compliance with applicable Federal
and State environmental requirements;
(2) help in identifying supply sources and securing long-
term contracts; and
(3) provision of public outreach, education, and labeling
materials.
(d) Refueling Infrastructure Corridors.--
(1) In general.--The Secretary shall establish a
competitive grant pilot program (referred to in this
subsection as the ``pilot program''), to be administered
through the Vehicle Technology Deployment Program of the
Department, to provide not more than 10 geographically-
dispersed project grants to State governments, Indian tribal
governments, local governments, metropolitan transportation
authorities, or partnerships of those entities to carry out 1
or more projects for the purposes described in paragraph (2).
(2) Grant purposes.--A grant under this subsection shall be
used for the establishment of refueling infrastructure
corridors, as designated by the Secretary, for renewable fuel
blends, including--
(A) installation of infrastructure and equipment necessary
to ensure adequate distribution of renewable fuel blends
within the corridor;
(B) installation of infrastructure and equipment necessary
to directly support vehicles powered by renewable fuel
blends; and
(C) operation and maintenance of infrastructure and
equipment installed as part of a project funded by the grant.
(3) Applications.--
(A) Requirements.--
(i) In general.--Subject to clause (ii), not later than 90
days after the date of enactment of this Act, the Secretary
shall issue requirements for use in applying for grants under
the pilot program.
(ii) Minimum requirements.--At a minimum, the Secretary
shall require that an application for a grant under this
subsection--
(I) be submitted by--
(aa) the head of a State, tribal, or local government or a
metropolitan transportation authority, or any combination of
those entities; and
(bb) a registered participant in the Vehicle Technology
Deployment Program of the Department; and
(II) include--
(aa) a description of the project proposed in the
application, including the ways in which the project meets
the requirements of this subsection;
(bb) an estimate of the degree of use of the project,
including the estimated size of fleet of vehicles operated
with renewable fuels blend available within the geographic
region of the corridor, measured as a total quantity and a
percentage;
(cc) an estimate of the potential petroleum displaced as a
result of the project (measured as a total quantity and a
percentage), and a plan to collect and disseminate petroleum
displacement and other relevant data relating to the project
to be funded under the grant, over the expected life of the
project;
(dd) a description of the means by which the project will
be sustainable without Federal assistance after the
completion of the term of the grant;
(ee) a complete description of the costs of the project,
including acquisition, construction, operation, and
maintenance costs over the expected life of the project; and
(ff) a description of which costs of the project will be
supported by Federal assistance under this subsection.
(B) Partners.--An applicant under subparagraph (A) may
carry out a project under the pilot program in partnership
with public and private entities.
(4) Selection criteria.--In evaluating applications under
the pilot program, the Secretary shall--
(A) consider the experience of each applicant with
previous, similar projects; and
(B) give priority consideration to applications that--
(i) are most likely to maximize displacement of petroleum
consumption, measured as a total quantity and a percentage;
(ii) are best able to incorporate existing infrastructure
while maximizing, to the extent practicable, the use of
advanced biofuels;
(iii) demonstrate the greatest commitment on the part of
the applicant to ensure funding for the proposed project and
the greatest likelihood that the project will be maintained
or expanded after Federal assistance under this subsection is
completed;
(iv) represent a partnership of public and private
entities; and
(v) exceed the minimum requirements of paragraph
(3)(A)(ii).
(5) Pilot project requirements.--
(A) Maximum amount.--The Secretary shall provide not more
than $20,000,000 in Federal assistance under the pilot
program to any applicant.
(B) Cost sharing.--The non-Federal share of the cost of any
activity relating to renewable fuel blend infrastructure
development carried out using funds from a grant under this
subsection shall be not less than 20 percent.
(C) Maximum period of grants.--The Secretary shall not
provide funds to any applicant under the pilot program for
more than 2 years.
(D) Deployment and distribution.--The Secretary shall seek,
to the maximum extent practicable, to ensure a broad
geographic distribution of project sites funded by grants
under this subsection.
(E) Transfer of information and knowledge.--The Secretary
shall establish mechanisms to ensure that the information and
knowledge gained by participants in the pilot program are
transferred among the pilot program participants and to other
interested parties, including other applicants that submitted
applications.
(6) Schedule.--
(A) Initial grants.--
(i) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register, Commerce Business Daily, and such other
publications as the Secretary considers to be appropriate, a
notice and request for applications to carry out projects
under the pilot program.
(ii) Deadline.--An application described in clause (i)
shall be submitted to the Secretary by not later than 180
days after the date of publication of the notice under that
clause.
(iii) Initial selection.--Not later than 90 days after the
date by which applications for grants are due under clause
(ii), the Secretary shall select by competitive, peer-
reviewed proposal up to 5 applications for projects to be
awarded a grant under the pilot program.
(B) Additional grants.--
(i) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register, Commerce Business Daily, and such other
publications as the Secretary considers to be appropriate, a
notice and request for additional applications to carry out
projects under the pilot program that incorporate the
information and knowledge obtained through the implementation
of the first round of projects authorized under the pilot
program.
(ii) Deadline.--An application described in clause (i)
shall be submitted to the Secretary by not later than 180
days after the date of publication of the notice under that
clause.
(iii) Initial selection.--Not later than 90 days after the
date by which applications for grants are due under clause
(ii), the Secretary shall select by competitive, peer-
reviewed proposal such additional applications for projects
to be awarded a grant under the pilot program as the
Secretary determines to be appropriate.
(7) Reports to congress.--
(A) Initial report.--Not later than 60 days after the date
on which grants are awarded under this subsection, the
Secretary shall submit to Congress a report containing--
(i) an identification of the grant recipients and a
description of the projects to be funded under the pilot
program;
(ii) an identification of other applicants that submitted
applications for the pilot program but to which funding was
not provided; and
(iii) a description of the mechanisms used by the Secretary
to ensure that the information and knowledge gained by
participants in the pilot program are transferred among the
pilot program participants and to other interested parties,
including other applicants that submitted applications.
(B) Evaluation.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter until the
termination of the pilot program, the Secretary shall submit
to Congress a report containing an evaluation of the
effectiveness of the pilot program, including an assessment
of the petroleum displacement and benefits to the environment
derived from the projects included in the pilot program.
(e) Restriction.--No grant shall be provided under
subsection (b) or (c) to a large, vertically integrated oil
company.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section $200,000,000 for each of the fiscal years 2008
through 2014.
SEC. 245. STUDY OF THE ADEQUACY OF TRANSPORTATION OF
DOMESTICALLY-PRODUCED RENEWABLE FUEL BY
RAILROADS AND OTHER MODES OF TRANSPORTATION.
(a) Study.--
(1) In general.--The Secretary, in coordination with the
Secretary of Transportation, shall jointly conduct a study of
the adequacy of transportation of domestically-produced
renewable fuels by railroad and other modes of transportation
as designated by the Secretaries.
(2) Components.--In conducting the study under paragraph
(1), the Secretaries shall--
(A) consider the adequacy of existing railroad and other
transportation and distribution infrastructure, equipment,
service and
[[Page H14332]]
capacity to move the necessary quantities of domestically-
produced renewable fuel within the timeframes;
(B)(i) consider the projected costs of moving the
domestically-produced renewable fuel by railroad and other
modes transportation; and
(ii) consider the impact of the projected costs on the
marketability of the domestically-produced renewable fuel;
(C) identify current and potential impediments to the
reliable transportation and distribution of adequate supplies
of domestically-produced renewable fuel at reasonable prices,
including practices currently utilized by domestic producers,
shippers, and receivers of renewable fuels;
(D) consider whether adequate competition exists within and
between modes of transportation for the transportation and
distribution of domestically-produced renewable fuel and,
whether inadequate competition leads to an unfair price for
the transportation and distribution of domestically-produced
renewable fuel or unacceptable service for transportation of
domestically-produced renewable fuel;
(E) consider whether Federal agencies have adequate legal
authority to address instances of inadequate competition when
inadequate competition is found to prevent domestic producers
for renewable fuels from obtaining a fair and reasonable
transportation price or acceptable service for the
transportation and distribution of domestically-produced
renewable fuels;
(F) consider whether Federal agencies have adequate legal
authority to address railroad and transportation service
problems that may be resulting in inadequate supplies of
domestically-produced renewable fuel in any area of the
United States;
(G) consider what transportation infrastructure capital
expenditures may be necessary to ensure the reliable
transportation of adequate supplies of domestically-produced
renewable fuel at reasonable prices within the United States
and which public and private entities should be responsible
for making such expenditures; and
(H) provide recommendations on ways to facilitate the
reliable transportation of adequate supplies of domestically-
produced renewable fuel at reasonable prices.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretaries shall jointly submit
to the Committee on Commerce, Science and Transportation, the
Committee on Energy and Natural Resources, and the Committee
on Environment and Public Works of the Senate and the
Committee on Transportation and Infrastructure and the
Committee on Energy and Commerce of the House of
Representatives a report that describes the results of the
study conducted under subsection (a).
SEC. 246. FEDERAL FLEET FUELING CENTERS.
(a) In General.--Not later than January 1, 2010, the head
of each Federal agency shall install at least 1 renewable
fuel pump at each Federal fleet fueling center in the United
States under the jurisdiction of the head of the Federal
agency.
(b) Report.--Not later than October 31 of the first
calendar year beginning after the date of the enactment of
this Act, and each October 31 thereafter, the President shall
submit to Congress a report that describes the progress
toward complying with subsection (a), including identifying--
(1) the number of Federal fleet fueling centers that
contain at least 1 renewable fuel pump; and
(2) the number of Federal fleet fueling centers that do not
contain any renewable fuel pumps.
(c) Department of Defense Facility.--This section shall not
apply to a Department of Defense fueling center with a fuel
turnover rate of less than 100,000 gallons of fuel per year.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
SEC. 247. STANDARD SPECIFICATIONS FOR BIODIESEL.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by redesignating subsection (s) as subsection (t),
redesignating subsection (r) (relating to conversion
assistance for cellulosic biomass, waste-derived ethanol,
approved renewable fuels) as subsection (s) and by adding the
following new subsection at the end thereof:
``(u) Standard Specifications for Biodiesel.--(1) Unless
the American Society for Testing and Materials has adopted a
standard for diesel fuel containing 20 percent biodiesel
(commonly known as `B20') within 1 year after the date of
enactment of this subsection, the Administrator shall
initiate a rulemaking to establish a uniform per gallon fuel
standard for such fuel and designate an identification number
so that vehicle manufacturers are able to design engines to
use fuel meeting such standard.
``(2) Unless the American Society for Testing and Materials
has adopted a standard for diesel fuel containing 5 percent
biodiesel (commonly known as `B5') within 1 year after the
date of enactment of this subsection, the Administrator shall
initiate a rulemaking to establish a uniform per gallon fuel
standard for such fuel and designate an identification so
that vehicle manufacturers are able to design engines to use
fuel meeting such standard.
``(3) Whenever the Administrator is required to initiate a
rulemaking under paragraph (1) or (2), the Administrator
shall promulgate a final rule within 18 months after the date
of the enactment of this subsection.
``(4) Not later than 180 days after the enactment of this
subsection, the Administrator shall establish an annual
inspection and enforcement program to ensure that diesel fuel
containing biodiesel sold or distributed in interstate
commerce meets the standards established under regulations
under this section, including testing and certification for
compliance with applicable standards of the American Society
for Testing and Materials. There are authorized to be
appropriated to carry out the inspection and enforcement
program under this paragraph $3,000,000 for each of fiscal
years 2008 through 2010.
``(5) For purposes of this subsection, the term `biodiesel'
has the meaning provided by section 312(f) of Energy Policy
Act of 1992 (42 U.S.C. 13220(f)).''.
SEC. 248. BIOFUELS DISTRIBUTION AND ADVANCED BIOFUELS
INFRASTRUCTURE.
(a) In General.--The Secretary, in coordination with the
Secretary of Transportation and in consultation with the
Administrator of the Environmental Protection Agency, shall
carry out a program of research, development, and
demonstration relating to existing transportation fuel
distribution infrastructure and new alternative distribution
infrastructure.
(b) Focus.--The program described in subsection (a) shall
focus on the physical and chemical properties of biofuels and
efforts to prevent or mitigate against adverse impacts of
those properties in the areas of--
(1) corrosion of metal, plastic, rubber, cork, fiberglass,
glues, or any other material used in pipes and storage tanks;
(2) dissolving of storage tank sediments;
(3) clogging of filters;
(4) contamination from water or other adulterants or
pollutants;
(5) poor flow properties related to low temperatures;
(6) oxidative and thermal instability in long-term storage
and uses;
(7) microbial contamination;
(8) problems associated with electrical conductivity; and
(9) such other areas as the Secretary considers
appropriate.
Subtitle D--Environmental Safeguards
SEC. 251. WAIVER FOR FUEL OR FUEL ADDITIVES.
Section 211(f)(4) of the Clean Air Act (42 U.S.C. 7545(f))
is amended to read as follows:
``(4) The Administrator, upon application of any
manufacturer of any fuel or fuel additive, may waive the
prohibitions established under paragraph (1) or (3) of this
subsection or the limitation specified in paragraph (2) of
this subsection, if he determines that the applicant has
established that such fuel or fuel additive or a specified
concentration thereof, and the emission products of such fuel
or fuel additive or specified concentration thereof, will not
cause or contribute to a failure of any emission control
device or system (over the useful life of the motor vehicle,
motor vehicle engine, nonroad engine or nonroad vehicle in
which such device or system is used) to achieve compliance by
the vehicle or engine with the emission standards with
respect to which it has been certified pursuant to sections
206 and 213(a). The Administrator shall take final action to
grant or deny an application submitted under this paragraph,
after public notice and comment, within 270 days of the
receipt of such an application.''.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND
LIGHTING
Subtitle A--Appliance Energy Efficiency
SEC. 301. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS.
(a) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) is amended--
(1) in paragraph (36)--
(A) by striking ``(36) The'' and inserting the following:
``(36) External power supply.--
``(A) In general.--The''; and
(B) by adding at the end the following:
``(B) Active mode.--The term `active mode' means the mode
of operation when an external power supply is connected to
the main electricity supply and the output is connected to a
load.
``(C) Class a external power supply.--
``(i) In general.--The term `class A external power supply'
means a device that--
``(I) is designed to convert line voltage AC input into
lower voltage AC or DC output;
``(II) is able to convert to only 1 AC or DC output voltage
at a time;
``(III) is sold with, or intended to be used with, a
separate end-use product that constitutes the primary load;
``(IV) is contained in a separate physical enclosure from
the end-use product;
``(V) is connected to the end-use product via a removable
or hard-wired male/female electrical connection, cable, cord,
or other wiring; and
``(VI) has nameplate output power that is less than or
equal to 250 watts.
``(ii) Exclusions.--The term `class A external power
supply' does not include any device that--
``(I) requires Federal Food and Drug Administration listing
and approval as a medical device in accordance with section
513 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
360c); or
``(II) powers the charger of a detachable battery pack or
charges the battery of a product that is fully or primarily
motor operated.
[[Page H14333]]
``(D) No-load mode.--The term `no-load mode' means the mode
of operation when an external power supply is connected to
the main electricity supply and the output is not connected
to a load.''; and
(2) by adding at the end the following:
``(52) Detachable battery.--The term `detachable battery'
means a battery that is--
``(A) contained in a separate enclosure from the product;
and
``(B) intended to be removed or disconnected from the
product for recharging.''.
(b) Test Procedures.--Section 323(b) of the Energy Policy
and Conservation Act (42 U.S.C. 6293(b)) is amended by adding
at the end the following:
``(17) Class a external power supplies.--Test procedures
for class A external power supplies shall be based on the
`Test Method for Calculating the Energy Efficiency of Single-
Voltage External AC-DC and AC-AC Power Supplies' published by
the Environmental Protection Agency on August 11, 2004,
except that the test voltage specified in section 4(d) of
that test method shall be only 115 volts, 60 Hz.''.
(c) Efficiency Standards for Class A External Power
Supplies.--Section 325(u) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(u)) is amended by adding at
the end the following:
``(6) Efficiency standards for class a external power
supplies.--
``(A) In general.--Subject to subparagraphs (B) through
(D), a class A external power supply manufactured on or after
the later of July 1, 2008, or the date of enactment of this
paragraph shall meet the following standards:
----------------------------------------------------------------------------------------------------------------
``Active Mode
-----------------------------------------------------------------------------------------------------------------
Required Efficiency (decimal equivalent of a
``Nameplate Output percentage)
----------------------------------------------------------------------------------------------------------------
Less than 1 watt 0.5 times the Nameplate Output
----------------------------------------------------------------------------------------------------------------
From 1 watt to not more than 51 watts The sum of 0.09 times the Natural Logarithm
of the Nameplate Output and 0.5
----------------------------------------------------------------------------------------------------------------
Greater than 51 watts 0.85
----------------------------------------------------------------------------------------------------------------
``No-Load Mode
``Nameplate Output Maximum Consumption
----------------------------------------------------------------------------------------------------------------
Not more than 250 watts 0.5 watts
----------------------------------------------------------------------------------------------------------------
``(B) Noncovered supplies.--A class A external power supply
shall not be subject to subparagraph (A) if the class A
external power supply is--
``(i) manufactured during the period beginning on July 1,
2008, and ending on June 30, 2015; and
``(ii) made available by the manufacturer as a service part
or a spare part for an end-use product--
``(I) that constitutes the primary load; and
``(II) was manufactured before July 1, 2008.
``(C) Marking.--Any class A external power supply
manufactured on or after the later of July 1, 2008 or the
date of enactment of this paragraph shall be clearly and
permanently marked in accordance with the External Power
Supply International Efficiency Marking Protocol, as
referenced in the `Energy Star Program Requirements for
Single Voltage External AC-DC and AC-AC Power Supplies,
version 1.1' published by the Environmental Protection
Agency.
``(D) Amendment of standards.--
``(i) Final rule by july 1, 2011.--
``(I) In general.--Not later than July 1, 2011, the
Secretary shall publish a final rule to determine whether the
standards established under subparagraph (A) should be
amended.
``(II) Administration.--The final rule shall--
``(aa) contain any amended standards; and
``(bb) apply to products manufactured on or after July 1,
2013.
``(ii) Final rule by july 1, 2015.--
``(I) In general.--Not later than July 1, 2015 the
Secretary shall publish a final rule to determine whether the
standards then in effect should be amended.
``(II) Administration.--The final rule shall--
``(aa) contain any amended standards; and
``(bb) apply to products manufactured on or after July 1,
2017.
``(7) End-use products.--An energy conservation standard
for external power supplies shall not constitute an energy
conservation standard for the separate end-use product to
which the external power supplies is connected.''.
SEC. 302. UPDATING APPLIANCE TEST PROCEDURES.
(a) Consumer Appliances.--Section 323(b)(1) of the Energy
Policy and Conservation Act (42 U.S.C. 6293(b)(1)) is amended
by striking ``(1)'' and all that follows through the end of
the paragraph and inserting the following:
``(1) Test procedures.--
``(A) Amendment.--At least once every 7 years, the
Secretary shall review test procedures for all covered
products and--
``(i) amend test procedures with respect to any covered
product, if the Secretary determines that amended test
procedures would more accurately or fully comply with the
requirements of paragraph (3); or
``(ii) publish notice in the Federal Register of any
determination not to amend a test procedure.''.
(b) Industrial Equipment.--Section 343(a) of the Energy
Policy and Conservation Act (42 U.S.C. 6313(a)) is amended by
striking ``(a)'' and all that follows through the end of
paragraph (1) and inserting the following:
``(a) Prescription by Secretary; Requirements.--
``(1) Test procedures.--
``(A) Amendment.--At least once every 7 years, the
Secretary shall conduct an evaluation of each class of
covered equipment and--
``(i) if the Secretary determines that amended test
procedures would more accurately or fully comply with the
requirements of paragraphs (2) and (3), shall prescribe test
procedures for the class in accordance with this section; or
``(ii) shall publish notice in the Federal Register of any
determination not to amend a test procedure.''.
SEC. 303. RESIDENTIAL BOILERS.
Section 325(f) of the Energy Policy and Conservation Act
(42 U.S.C. 6295(f)) is amended--
(1) in the subsection heading, by inserting ``and Boilers''
after ``Furnaces'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following:
``(3) Boilers.--
``(A) In general.--Subject to subparagraphs (B) and (C),
boilers manufactured on or after September 1, 2012, shall
meet the following requirements:
----------------------------------------------------------------------------------------------------------------
Minimum Annual Fuel Utilization
Boiler Type Efficiency Design Requirements
----------------------------------------------------------------------------------------------------------------
Gas Hot Water......................... 82% No Constant Burning Pilot,
Automatic Means for Adjusting
Water Temperature
----------------------------------------------------------------------------------------------------------------
Gas Steam............................ 80% No Constant Burning Pilot
----------------------------------------------------------------------------------------------------------------
Oil Hot Water......................... 84% Automatic Means for Adjusting
Temperature
----------------------------------------------------------------------------------------------------------------
Oil Steam............................ 82% None
----------------------------------------------------------------------------------------------------------------
Electric Hot Water.................... None Automatic Means for Adjusting
Temperature
----------------------------------------------------------------------------------------------------------------
Electric Steam........................ None None
----------------------------------------------------------------------------------------------------------------
``(B) Automatic means for adjusting water temperature.--
``(i) In general.--The manufacturer shall equip each gas,
oil, and electric hot water boiler (other than a boiler
equipped with a tankless domestic water heating coil) with
[[Page H14334]]
automatic means for adjusting the temperature of the water
supplied by the boiler to ensure that an incremental change
in inferred heat load produces a corresponding incremental
change in the temperature of water supplied.
``(ii) Single input rate.--For a boiler that fires at 1
input rate, the requirements of this subparagraph may be
satisfied by providing an automatic means that allows the
burner or heating element to fire only when the means has
determined that the inferred heat load cannot be met by the
residual heat of the water in the system.
``(iii) No inferred heat load.--When there is no inferred
heat load with respect to a hot water boiler, the automatic
means described in clause (i) and (ii) shall limit the
temperature of the water in the boiler to not more than 140
degrees Fahrenheit.
``(iv) Operation.--A boiler described in clause (i) or (ii)
shall be operable only when the automatic means described in
clauses (i), (ii), and (iii) is installed.
``(C) Exception.--A boiler that is manufactured to operate
without any need for electricity or any electric connection,
electric gauges, electric pumps, electric wires, or electric
devices shall not be required to meet the requirements of
this paragraph.''.
SEC. 304. FURNACE FAN STANDARD PROCESS.
Paragraph (4)(D) of section 325(f) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(f)) (as redesignated by
section 303(4)) is amended by striking ``the Secretary may''
and inserting ``not later than December 31, 2013, the
Secretary shall''.
SEC. 305. IMPROVING SCHEDULE FOR STANDARDS UPDATING AND
CLARIFYING STATE AUTHORITY.
(a) Consumer Appliances.--Section 325 of the Energy Policy
and Conservation Act (42 U.S.C. 6295) is amended by striking
subsection (m) and inserting the following:
``(m) Amendment of Standards.--
``(1) In general.--Not later than 6 years after issuance of
any final rule establishing or amending a standard, as
required for a product under this part, the Secretary shall
publish--
``(A) a notice of the determination of the Secretary that
standards for the product do not need to be amended, based on
the criteria established under subsection (n)(2); or
``(B) a notice of proposed rulemaking including new
proposed standards based on the criteria established under
subsection (o) and the procedures established under
subsection (p).
``(2) Notice.--If the Secretary publishes a notice under
paragraph (1), the Secretary shall--
``(A) publish a notice stating that the analysis of the
Department is publicly available; and
``(B) provide an opportunity for written comment.
``(3) Amendment of standard; new determination.--
``(A) Amendment of standard.--Not later than 2 years after
a notice is issued under paragraph (1)(B), the Secretary
shall publish a final rule amending the standard for the
product.
``(B) New determination.--Not later than 3 years after a
determination under paragraph (1)(A), the Secretary shall
make a new determination and publication under subparagraph
(A) or (B) of paragraph (1).
``(4) Application to products.--
``(A) In general.--Except as provided in subparagraph (B),
an amendment prescribed under this subsection shall apply
to--
``(i) with respect to refrigerators, refrigerator-freezers,
freezers, room air conditioners, dishwashers, clothes
washers, clothes dryers, fluorescent lamp ballasts, and
kitchen ranges and ovens, such a product that is manufactured
after the date that is 3 years after publication of the final
rule establishing an applicable standard; and
``(ii) with respect to central air conditioners, heat
pumps, water heaters, pool heaters, direct heating equipment,
and furnaces, such a product that is manufactured after the
date that is 5 years after publication of the final rule
establishing an applicable standard.
``(B) Other new standards.--A manufacturer shall not be
required to apply new standards to a product with respect to
which other new standards have been required during the prior
6-year period.
``(5) Reports.--The Secretary shall promptly submit to the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate--
``(A) a progress report every 180 days on compliance with
this section, including a specific plan to remedy any
failures to comply with deadlines for action established
under this section; and
``(B) all required reports to the Court or to any party to
the Consent Decree in State of New York v Bodman,
Consolidated Civil Actions No.05 Civ. 7807 and No.05 Civ.
7808.''.
(b) Industrial Equipment.--Section 342(a)(6) of the Energy
Policy and Conservation Act (42 U.S.C. 6313(a)(6)) is
amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by striking ``(6)(A)(i)'' and all that follows through
the end of subparagraph (B) and inserting the following:
``(6) Amended energy efficiency standards.--
``(A) In general.--
``(i) Analysis of potential energy savings.--If ASHRAE/IES
Standard 90.1 is amended with respect to any small commercial
package air conditioning and heating equipment, large
commercial package air conditioning and heating equipment,
very large commercial package air conditioning and heating
equipment, packaged terminal air conditioners, packaged
terminal heat pumps, warm-air furnaces, packaged boilers,
storage water heaters, instantaneous water heaters, or
unfired hot water storage tanks, not later than 180 days
after the amendment of the standard, the Secretary shall
publish in the Federal Register for public comment an
analysis of the energy savings potential of amended energy
efficiency standards.
``(ii) Amended uniform national standard for products.--
``(I) In general.--Except as provided in subclause (II),
not later than 18 months after the date of publication of the
amendment to the ASHRAE/IES Standard 90.1 for a product
described in clause (i), the Secretary shall establish an
amended uniform national standard for the product at the
minimum level specified in the amended ASHRAE/IES Standard
90.1.
``(II) More stringent standard.--Subclause (I) shall not
apply if the Secretary determines, by rule published in the
Federal Register, and supported by clear and convincing
evidence, that adoption of a uniform national standard more
stringent than the amended ASHRAE/IES Standard 90.1 for the
product would result in significant additional conservation
of energy and is technologically feasible and economically
justified.
``(B) Rule.--If the Secretary makes a determination
described in clause (ii)(II) for a product described in
clause (i), not later than 30 months after the date of
publication of the amendment to the ASHRAE/IES Standard 90.1
for the product, the Secretary shall issue the rule
establishing the amended standard.
``(C) Amendment of standard.--
``(i) In general.--Not later than 6 years after issuance of
any final rule establishing or amending a standard, as
required for a product under this part, the Secretary shall
publish--
``(I) a notice of the determination of the Secretary that
standards for the product do not need to be amended, based on
the criteria established under subparagraph (A); or
``(II) a notice of proposed rulemaking including new
proposed standards based on the criteria and procedures
established under subparagraph (B).
``(ii) Notice.--If the Secretary publishes a notice under
clause (i), the Secretary shall--
``(I) publish a notice stating that the analysis of the
Department is publicly available; and
``(II) provide an opportunity for written comment.
``(iii) Amendment of standard; new determination.--
``(I) Amendment of standard.--Not later than 2 years after
a notice is issued under clause (i)(II), the Secretary shall
publish a final rule amending the standard for the product.
``(II) New determination.--Not later than 3 years after a
determination under clause (i)(I), the Secretary shall make a
new determination and publication under subclause (I) or (II)
of clause (i).
``(iv) Application to products.--An amendment prescribed
under this subsection shall apply to products manufactured
after a date that is the later of--
``(I) the date that is 3 years after publication of the
final rule establishing a new standard; or
``(II) the date that is 6 years after the effective date of
the current standard for a covered product.
``(v) Reports.--The Secretary shall promptly submit to the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a progress report every 180 days on
compliance with this subparagraph, including a specific plan
to remedy any failures to comply with deadlines for action
established under this subparagraph.''.
SEC. 306. REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR
CONDITIONERS, AND HEAT PUMPS.
(a) In General.--Section 325(o) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(o)) is amended by adding at
the end the following:
``(6) Regional standards for furnaces, central air
conditioners, and heat pumps.--
``(A) In general.--In any rulemaking to establish a new or
amended standard, the Secretary may consider the
establishment of separate standards by geographic region for
furnaces (except boilers), central air conditioners, and heat
pumps.
``(B) National and regional standards.--
``(i) National standard.--If the Secretary establishes a
regional standard for a product, the Secretary shall
establish a base national standard for the product.
``(ii) Regional standards.--If the Secretary establishes a
regional standard for a product, the Secretary may establish
more restrictive standards for the product by geographic
region as follows:
``(I) For furnaces, the Secretary may establish 1
additional standard that is applicable in a geographic region
defined by the Secretary.
``(II) For any cooling product, the Secretary may establish
1 or 2 additional standards that are applicable in 1 or 2
geographic regions as may be defined by the Secretary.
``(C) Boundaries of geographic regions.--
[[Page H14335]]
``(i) In general.--Subject to clause (ii), the boundaries
of additional geographic regions established by the Secretary
under this paragraph shall include only contiguous States.
``(ii) Alaska and hawaii.--The States of Alaska and Hawaii
may be included under this paragraph in a geographic region
that the States are not contiguous to.
``(iii) Individual states.--Individual States shall be
placed only into a single region under this paragraph.
``(D) Prerequisites.--In establishing additional regional
standards under this paragraph, the Secretary shall--
``(i) establish additional regional standards only if the
Secretary determines that--
``(I) the establishment of additional regional standards
will produce significant energy savings in comparison to
establishing only a single national standard; and
``(II) the additional regional standards are economically
justified under this paragraph; and
``(ii) consider the impact of the additional regional
standards on consumers, manufacturers, and other market
participants, including product distributors, dealers,
contractors, and installers.
``(E) Application; effective date.--
``(i) Base national standard.--Any base national standard
established for a product under this paragraph shall--
``(I) be the minimum standard for the product; and
``(II) apply to all products manufactured or imported into
the United States on and after the effective date for the
standard.
``(ii) Regional standards.--Any additional and more
restrictive regional standard established for a product under
this paragraph shall apply to any such product installed on
or after the effective date of the standard in States in
which the Secretary has designated the standard to apply.
``(F) Continuation of regional standards.--
``(i) In general.--In any subsequent rulemaking for any
product for which a regional standard has been previously
established, the Secretary shall determine whether to
continue the establishment of separate regional standards for
the product.
``(ii) Regional standard no longer appropriate.--Except as
provided in clause (iii), if the Secretary determines that
regional standards are no longer appropriate for a product,
beginning on the effective date of the amended standard for
the product--
``(I) there shall be 1 base national standard for the
product with Federal enforcement; and
``(II) State authority for enforcing a regional standard
for the product shall terminate.
``(iii) Regional standard appropriate but standard or
region changed.--
``(I) State no longer contained in region.--Subject to
subclause (III), if a State is no longer contained in a
region in which a regional standard that is more stringent
than the base national standard applies, the authority of the
State to enforce the regional standard shall terminate.
``(II) Standard or region revised so that existing regional
standard equals base national standard.--If the Secretary
revises a base national standard for a product or the
geographic definition of a region so that an existing
regional standard for a State is equal to the revised base
national standard--
``(aa) the authority of the State to enforce the regional
standard shall terminate on the effective date of the revised
base national standard; and
``(bb) the State shall be subject to the revised base
national standard.
``(III) Standard or region revised so that existing
regional standard equals base national standard.--If the
Secretary revises a base national standard for a product or
the geographic definition of a region so that the standard
for a State is lower than the previously approved regional
standard, the State may continue to enforce the previously
approved standard level.
``(iv) Waiver of federal preemption.--Nothing in this
paragraph diminishes the authority of a State to enforce a
State regulation for which a waiver of Federal preemption has
been granted under section 327(d).
``(G) Enforcement.--
``(i) Base national standard.--
``(I) In general.--The Secretary shall enforce any base
national standard.
``(II) Trade association certification programs.--In
enforcing the base national standard, the Secretary shall
use, to the maximum extent practicable, national standard
nationally recognized certification programs of trade
associations.
``(ii) Regional standards.--
``(I) Enforcement plan.--Not later than 90 days after the
date of the issuance of a final rule that establishes a
regional standard, the Secretary shall initiate a rulemaking
to develop and implement an effective enforcement plan for
regional standards for the products that are covered by the
final rule.
``(II) Responsible entities.--Any rules regarding
enforcement of a regional standard shall clearly specify
which entities are legally responsible for compliance with
the standards and for making any required information or
labeling disclosures.
``(III) Final rule.--Not later than 15 months after the
date of the issuance of a final rule that establishes a
regional standard for a product, the Secretary shall
promulgate a final rule covering enforcement of regional
standards for the product.
``(IV) Incorporation by states and localities.--A State or
locality may incorporate any Federal regional standard into
State or local building codes or State appliance standards.
``(V) State enforcement.--A State agency may seek
enforcement of a Federal regional standard in a Federal court
of competent jurisdiction.
``(H) Information disclosure.--
``(i) In general.--Not later than 90 days after the date of
the publication of a final rule that establishes a regional
standard for a product, the Federal Trade Commission shall
undertake a rulemaking to determine the appropriate 1 or more
methods for disclosing information so that consumers,
distributors, contractors, and installers can easily
determine whether a specific piece of equipment that is
installed in a specific building is in conformance with the
regional standard that applies to the building.
``(ii) Methods.--A method of disclosing information under
clause (i) may include--
``(I) modifications to the Energy Guide label; or
``(II) other methods that make it easy for consumers and
installers to use and understand at the point of
installation.
``(iii) Completion of rulemaking.--The rulemaking shall be
completed not later 15 months after the date of the
publication of a final rule that establishes a regional
standard for a product.''.
(b) Prohibited Acts.--Section 332(a) of the Energy Policy
and Conservation Act (42 U.S.C. 6302(a)) is amended--
(1) in paragraph (4), by striking ``or'' after the
semicolon at the end;
(2) in paragraph (5), by striking ``part.'' and inserting
``part, except to the extent that the new covered product is
covered by a regional standard that is more stringent than
the base national standard; or''; and
(3) by adding at the end the following:
``(6) for any manufacturer or private labeler to knowingly
sell a product to a distributor, contractor, or dealer with
knowledge that the entity routinely violates any regional
standard applicable to the product.''.
(c) Consideration of Prices and Operating Patterns.--
Section 342(a)(6)(B) of the Energy Policy and Conservation
Act (42 U.S.C. 6313(a)(6)(B)) is amended by adding at the end
the following:
``(iii) Consideration of prices and operating patterns.--If
the Secretary is considering revised standards for air-cooled
3-phase central air conditioners and central air conditioning
heat pumps with less 65,000 Btu per hour (cooling capacity),
the Secretary shall use commercial energy prices and
operating patterns in all analyses conducted by the
Secretary.''.
SEC. 307. PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS.
Section 325(p) of the Energy Policy and Conservation Act
(42 U.S.C. 6925(p)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively.
SEC. 308. EXPEDITED RULEMAKINGS.
(a) Procedure for Prescribing New or Amended Standards.--
Section 325(p) of the Energy Policy and Conservation Act (42
U.S.C. 6295(p)) (as amended by section 307) is amended by
adding at the end the following:
``(4) Direct final rules.--
``(A) In general.--On receipt of a statement that is
submitted jointly by interested persons that are fairly
representative of relevant points of view (including
representatives of manufacturers of covered products, States,
and efficiency advocates), as determined by the Secretary,
and contains recommendations with respect to an energy or
water conservation standard--
``(i) if the Secretary determines that the recommended
standard contained in the statement is in accordance with
subsection (o) or section 342(a)(6)(B), as applicable, the
Secretary may issue a final rule that establishes an energy
or water conservation standard and is published
simultaneously with a notice of proposed rulemaking that
proposes a new or amended energy or water conservation
standard that is identical to the standard established in the
final rule to establish the recommended standard (referred to
in this paragraph as a `direct final rule'); or
``(ii) if the Secretary determines that a direct final rule
cannot be issued based on the statement, the Secretary shall
publish a notice of the determination, together with an
explanation of the reasons for the determination.
``(B) Public comment.--The Secretary shall solicit public
comment for a period of at least 110 days with respect to
each direct final rule issued by the Secretary under
subparagraph (A)(i).
``(C) Withdrawal of direct final rules.--
``(i) In general.--Not later than 120 days after the date
on which a direct final rule issued under subparagraph (A)(i)
is published in the Federal Register, the Secretary shall
withdraw the direct final rule if--
``(I) the Secretary receives 1 or more adverse public
comments relating to the direct final rule under subparagraph
(B)(i) or any alternative joint recommendation; and
``(II) based on the rulemaking record relating to the
direct final rule, the Secretary determines that such adverse
public comments or alternative joint recommendation may
provide a reasonable basis for withdrawing the direct final
rule under subsection (o),
[[Page H14336]]
section 342(a)(6)(B), or any other applicable law.
``(ii) Action on withdrawal.--On withdrawal of a direct
final rule under clause (i), the Secretary shall--
``(I) proceed with the notice of proposed rulemaking
published simultaneously with the direct final rule as
described in subparagraph (A)(i); and
``(II) publish in the Federal Register the reasons why the
direct final rule was withdrawn.
``(iii) Treatment of withdrawn direct final rules.--A
direct final rule that is withdrawn under clause (i) shall
not be considered to be a final rule for purposes of
subsection (o).
``(D) Effect of paragraph.--Nothing in this paragraph
authorizes the Secretary to issue a direct final rule based
solely on receipt of more than 1 statement containing
recommended standards relating to the direct final rule.''.
(b) Conforming Amendment.--Section 345(b)(1) of the Energy
Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended
in the first sentence by inserting ``section 325(p)(5),''
after ``The provisions of''.
SEC. 309. BATTERY CHARGERS.
Section 325(u)(1)(E) of the Energy Policy and Conservation
Act (42 U.S.C. 6295(u)(1)(E)) is amended--
(1) by striking ``(E)(i) Not'' and inserting the following:
``(E) External power supplies and battery chargers.--
``(i) Energy conservation standards.--
``(I) External power supplies.--Not'';
(2) by striking ``3 years'' and inserting ``2 years'';
(3) by striking ``battery chargers and'' each place it
appears; and
(4) by adding at the end the following :
``(II) Battery chargers.--Not later than July 1, 2011, the
Secretary shall issue a final rule that prescribes energy
conservation standards for battery chargers or classes of
battery chargers or determine that no energy conservation
standard is technically feasible and economically
justified.''.
SEC. 310. STANDBY MODE.
Section 325 of the Energy Policy and Conservation Act (42
U.S.C. 6295) is amended--
(1) in subsection (u)--
(A) by striking paragraphs (2), (3), and (4); and
(B) by redesignating paragraph (5) and (6) as paragraphs
(2) and (3), respectively;
(2) by redesignating subsection (gg) as subsection (hh);
(3) by inserting after subsection (ff) the following:
``(gg) Standby Mode Energy Use.--
``(1) Definitions.--
``(A) In general.--Unless the Secretary determines
otherwise pursuant to subparagraph (B), in this subsection:
``(i) Active mode.--The term `active mode' means the
condition in which an energy-using product--
``(I) is connected to a main power source;
``(II) has been activated; and
``(III) provides 1 or more main functions.
``(ii) Off mode.--The term `off mode' means the condition
in which an energy-using product--
``(I) is connected to a main power source; and
``(II) is not providing any standby or active mode
function.
``(iii) Standby mode.--The term `standby mode' means the
condition in which an energy-using product--
``(I) is connected to a main power source; and
``(II) offers 1 or more of the following user-oriented or
protective functions:
``(aa) To facilitate the activation or deactivation of
other functions (including active mode) by remote switch
(including remote control), internal sensor, or timer.
``(bb) Continuous functions, including information or
status displays (including clocks) or sensor-based functions.
``(B) Amended definitions.--The Secretary may, by rule,
amend the definitions under subparagraph (A), taking into
consideration the most current versions of Standards 62301
and 62087 of the International Electrotechnical Commission.
``(2) Test procedures.--
``(A) In general.--Test procedures for all covered products
shall be amended pursuant to section 323 to include standby
mode and off mode energy consumption, taking into
consideration the most current versions of Standards 62301
and 62087 of the International Electrotechnical Commission,
with such energy consumption integrated into the overall
energy efficiency, energy consumption, or other energy
descriptor for each covered product, unless the Secretary
determines that--
``(i) the current test procedures for a covered product
already fully account for and incorporate the standby mode
and off mode energy consumption of the covered product; or
``(ii) such an integrated test procedure is technically
infeasible for a particular covered product, in which case
the Secretary shall prescribe a separate standby mode and off
mode energy use test procedure for the covered product, if
technically feasible.
``(B) Deadlines.--The test procedure amendments required by
subparagraph (A) shall be prescribed in a final rule no later
than the following dates:
``(i) December 31, 2008, for battery chargers and external
power supplies.
``(ii) March 31, 2009, for clothes dryers, room air
conditioners, and fluorescent lamp ballasts.
``(iii) June 30, 2009, for residential clothes washers.
``(iv) September 30, 2009, for residential furnaces and
boilers.
``(v) March 31, 2010, for residential water heaters, direct
heating equipment, and pool heaters.
``(vi) March 31, 2011, for residential dishwashers, ranges
and ovens, microwave ovens, and dehumidifiers.
``(C) Prior product standards.--The test procedure
amendments adopted pursuant to subparagraph (B) shall not be
used to determine compliance with product standards
established prior to the adoption of the amended test
procedures.
``(3) Incorporation into standard.--
``(A) In general.--Subject to subparagraph (B), based on
the test procedures required under paragraph (2), any final
rule establishing or revising a standard for a covered
product, adopted after July 1, 2010, shall incorporate
standby mode and off mode energy use into a single amended or
new standard, pursuant to subsection (o), if feasible.
``(B) Separate standards.--If not feasible, the Secretary
shall prescribe within the final rule a separate standard for
standby mode and off mode energy consumption, if justified
under subsection (o).''; and
(4) in paragraph (2) of subsection (hh) (as redesignated by
paragraph (2)) , by striking ``(ff)'' each place it appears
and inserting ``(gg)''.
SEC. 311. ENERGY STANDARDS FOR HOME APPLIANCES.
(a) Appliances.--
(1) Dehumidifiers.--Section 325(cc) of the Energy Policy
and Conservation Act (42 U.S.C. 6295(cc)) is amended by
striking paragraph (2) and inserting the following:
``(2) Dehumidifiers manufactured on or after october 1,
2012.--Dehumidifiers manufactured on or after October 1,
2012, shall have an Energy Factor that meets or exceeds the
following values:
``Product Capacity (pints/day): Minimum
Energy
Factor
(liters/
KWh)
Up to 35.00................................................ 1.35
35.01-45.00................................................ 1.50
45.01-54.00................................................ 1.60
54.01-75.00................................................ 1.70
Greater than 75.00......................................... 2.5.''.
(2) Residential clothes washers and residential
dishwashers.--Section 325(g) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(g)) is amended by adding at
the end the following:
``(9) Residential clothes washers manufactured on or after
january 1, 2011.--
``(A) In general.--A top-loading or front-loading standard-
size residential clothes washer manufactured on or after
January 1, 2011, shall have--
``(i) a Modified Energy Factor of at least 1.26; and
``(ii) a water factor of not more than 9.5.
``(B) Amendment of standards.--
``(i) In general.--Not later than December 31, 2011, the
Secretary shall publish a final rule determining whether to
amend the standards in effect for clothes washers
manufactured on or after January 1, 2015.
``(ii) Amended standards.--The final rule shall contain any
amended standards.
``(10) Residential dishwashers manufactured on or after
january 1, 2010.--
``(A) In general.--A dishwasher manufactured on or after
January 1, 2010, shall--
``(i) for a standard size dishwasher not exceed 355 kwh/
year and 6.5 gallon per cycle; and
``(ii) for a compact size dishwasher not exceed 260 kwh/
year and 4.5 gallons per cycle.
``(B) Amendment of standards.--
``(i) In general.--Not later than January 1, 2015, the
Secretary shall publish a final rule determining whether to
amend the standards for dishwashers manufactured on or after
January 1, 2018.
``(ii) Amended standards.--The final rule shall contain any
amended standards.''.
(3) Refrigerators and freezers.--Section 325(b) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(b)) is
amended by adding at the end the following:
``(4) Refrigerators and freezers manufactured on or after
january 1, 2014.--
``(A) In general.--Not later than December 31, 2010, the
Secretary shall publish a final rule determining whether to
amend the standards in effect for refrigerators,
refrigerator-freezers, and freezers manufactured on or after
January 1, 2014.
``(B) Amended standards.--The final rule shall contain any
amended standards.''.
(b) Energy Star.--Section 324A(d)(2) of the Energy Policy
and Conservation Act (42 U.S.C. 6294a(d)(2)) is amended by
striking ``January 1, 2010'' and inserting ``July 1, 2009''.
SEC. 312. WALK-IN COOLERS AND WALK-IN FREEZERS.
(a) Definitions.--Section 340 of the Energy Policy and
Conservation Act (42 U.S.C. 6311) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (G) through (K) as
subparagraphs (H) through (L), respectively; and
(B) by inserting after subparagraph (F) the following:
``(G) Walk-in coolers and walk-in freezers.'';
[[Page H14337]]
(2) by redesignating paragraphs (20) and (21) as paragraphs
(21) and (22), respectively; and
(3) by inserting after paragraph (19) the following:
``(20) Walk-in cooler; walk-in freezer.--
``(A) In general.--The terms `walk-in cooler' and `walk-in
freezer' mean an enclosed storage space refrigerated to
temperatures, respectively, above, and at or below 32 degrees
Fahrenheit that can be walked into, and has a total chilled
storage area of less than 3,000 square feet.
``(B) Exclusion.--The terms `walk-in cooler' and `walk-in
freezer' do not include products designed and marketed
exclusively for medical, scientific, or research purposes.''.
(b) Standards.--Section 342 of the Energy Policy and
Conservation Act (42 U.S.C. 6313) is amended by adding at the
end the following:
``(f) Walk-in Coolers and Walk-in Freezers.--
``(1) In general.--Subject to paragraphs (2) through (5),
each walk-in cooler or walk-in freezer manufactured on or
after January 1, 2009, shall--
``(A) have automatic door closers that firmly close all
walk-in doors that have been closed to within 1 inch of full
closure, except that this subparagraph shall not apply to
doors wider than 3 feet 9 inches or taller than 7 feet;
``(B) have strip doors, spring hinged doors, or other
method of minimizing infiltration when doors are open;
``(C) contain wall, ceiling, and door insulation of at
least R-25 for coolers and R-32 for freezers, except that
this subparagraph shall not apply to glazed portions of doors
nor to structural members;
``(D) contain floor insulation of at least R-28 for
freezers;
``(E) for evaporator fan motors of under 1 horsepower and
less than 460 volts, use--
``(i) electronically commutated motors (brushless direct
current motors); or
``(ii) 3-phase motors;
``(F) for condenser fan motors of under 1 horsepower, use--
``(i) electronically commutated motors;
``(ii) permanent split capacitor-type motors; or
``(iii) 3-phase motors; and
``(G) for all interior lights, use light sources with an
efficacy of 40 lumens per watt or more, including ballast
losses (if any), except that light sources with an efficacy
of 40 lumens per watt or less, including ballast losses (if
any), may be used in conjunction with a timer or device that
turns off the lights within 15 minutes of when the walk-in
cooler or walk-in freezer is not occupied by people.
``(2) Electronically commutated motors.--
``(A) In general.--The requirements of paragraph (1)(E)(i)
for electronically commutated motors shall take effect
January 1, 2009, unless, prior to that date, the Secretary
determines that such motors are only available from 1
manufacturer.
``(B) Other types of motors.--In carrying out paragraph
(1)(E)(i) and subparagraph (A), the Secretary may allow other
types of motors if the Secretary determines that, on average,
those other motors use no more energy in evaporator fan
applications than electronically commutated motors.
``(C) Maximum energy consumption level.--The Secretary
shall establish the maximum energy consumption level under
subparagraph (B) not later than January 1, 2010.
``(3) Additional specifications.--Each walk-in cooler or
walk-in freezer with transparent reach-in doors manufactured
on or after January 1, 2009, shall also meet the following
specifications:
``(A) Transparent reach-in doors for walk-in freezers and
windows in walk-in freezer doors shall be of triple-pane
glass with either heat-reflective treated glass or gas fill.
``(B) Transparent reach-in doors for walk-in coolers and
windows in walk-in cooler doors shall be--
``(i) double-pane glass with heat-reflective treated glass
and gas fill; or
``(ii) triple-pane glass with either heat-reflective
treated glass or gas fill.
``(C) If the appliance has an antisweat heater without
antisweat heat controls, the appliance shall have a total
door rail, glass, and frame heater power draw of not more
than 7.1 watts per square foot of door opening (for freezers)
and 3.0 watts per square foot of door opening (for coolers).
``(D) If the appliance has an antisweat heater with
antisweat heat controls, and the total door rail, glass, and
frame heater power draw is more than 7.1 watts per square
foot of door opening (for freezers) and 3.0 watts per square
foot of door opening (for coolers), the antisweat heat
controls shall reduce the energy use of the antisweat heater
in a quantity corresponding to the relative humidity in the
air outside the door or to the condensation on the inner
glass pane.
``(4) Performance-based standards.--
``(A) In general.--Not later than January 1, 2012, the
Secretary shall publish performance-based standards for walk-
in coolers and walk-in freezers that achieve the maximum
improvement in energy that the Secretary determines is
technologically feasible and economically justified.
``(B) Application.--
``(i) In general.--Except as provided in clause (ii), the
standards shall apply to products described in subparagraph
(A) that are manufactured beginning on the date that is 3
years after the final rule is published.
``(ii) Delayed effective date.--If the Secretary
determines, by rule, that a 3-year period is inadequate, the
Secretary may establish an effective date for products
manufactured beginning on the date that is not more than 5
years after the date of publication of a final rule for the
products.
``(5) Amendment of standards.--
``(A) In general.--Not later than January 1, 2020, the
Secretary shall publish a final rule to determine if the
standards established under paragraph (4) should be amended.
``(B) Application.--
``(i) In general.--Except as provided in clause (ii), the
rule shall provide that the standards shall apply to products
manufactured beginning on the date that is 3 years after the
final rule is published.
``(ii) Delayed effective date.--If the Secretary
determines, by rule, that a 3-year period is inadequate, the
Secretary may establish an effective date for products
manufactured beginning on the date that is not more than 5
years after the date of publication of a final rule for the
products.''.
(c) Test Procedures.--Section 343(a) of the Energy Policy
and Conservation Act (42 U.S.C. 6314(a)) is amended by adding
at the end the following:
``(9) Walk-in coolers and walk-in freezers.--
``(A) In general.--For the purpose of test procedures for
walk-in coolers and walk-in freezers:
``(i) The R value shall be the 1/K factor multiplied by the
thickness of the panel.
``(ii) The K factor shall be based on ASTM test procedure
C518-2004.
``(iii) For calculating the R value for freezers, the K
factor of the foam at 20F (average foam temperature) shall
be used.
``(iv) For calculating the R value for coolers, the K
factor of the foam at 55F (average foam temperature) shall
be used.
``(B) Test procedure.--
``(i) In general.--Not later than January 1, 2010, the
Secretary shall establish a test procedure to measure the
energy-use of walk-in coolers and walk-in freezers.
``(ii) Computer modeling.--The test procedure may be based
on computer modeling, if the computer model or models have
been verified using the results of laboratory tests on a
significant sample of walk-in coolers and walk-in
freezers.''.
(d) Labeling.--Section 344(e) of the Energy Policy and
Conservation Act (42 U.S.C. 6315(e)) is amended by inserting
``walk-in coolers and walk-in freezers,'' after ``commercial
clothes washers,'' each place it appears.
(e) Administration, Penalties, Enforcement, and
Preemption.--Section 345 of the Energy Policy and
Conservation Act (42 U.S.C. 6316) is amended--
(1) by striking ``subparagraphs (B), (C), (D), (E), and
(F)'' each place it appears and inserting ``subparagraphs (B)
through (G)''; and
(2) by adding at the end the following:
``(h) Walk-in Coolers and Walk-in Freezers.--
``(1) Covered types.--
``(A) Relationship to other law.--
``(i) In general.--Except as otherwise provided in this
subsection, section 327 shall apply to walk-in coolers and
walk-in freezers for which standards have been established
under paragraphs (1), (2), and (3) of section 342(f) to the
same extent and in the same manner as the section applies
under part A on the date of enactment of this subsection.
``(ii) State standards.--Any State standard prescribed
before the date of enactment of this subsection shall not be
preempted until the standards established under paragraphs
(1) and (2) of section 342(f) take effect.
``(B) Administration.--In applying section 327 to equipment
under subparagraph (A), paragraphs (1), (2), and (3) of
subsection (a) shall apply.
``(2) Final rule not timely.--
``(A) In general.--If the Secretary does not issue a final
rule for a specific type of walk-in cooler or walk-in freezer
within the time frame established under paragraph (4) or (5)
of section 342(f), subsections (b) and (c) of section 327
shall no longer apply to the specific type of walk-in cooler
or walk-in freezer during the period--
``(i) beginning on the day after the scheduled date for a
final rule; and
``(ii) ending on the date on which the Secretary publishes
a final rule covering the specific type of walk-in cooler or
walk-in freezer.
``(B) State standards.--Any State standard issued before
the publication of the final rule shall not be preempted
until the standards established in the final rule take
effect.
``(3) California.--Any standard issued in the State of
California before January 1, 2011, under title 20 of the
California Code of Regulations, that refers to walk-in
coolers and walk-in freezers, for which standards have been
established under paragraphs (1), (2), and (3) of section
342(f), shall not be preempted until the standards
established under section 342(f)(3) take effect.''.
SEC. 313. ELECTRIC MOTOR EFFICIENCY STANDARDS.
(a) Definitions.--Section 340(13) of the Energy Policy and
Conservation Act (42 U.S.C. 6311(13)) is amended--
(1) by redesignating subparagraphs (B) through (H) as
subparagraphs (C) through (I), respectively; and
[[Page H14338]]
(2) by striking ``(13)(A)'' and all that follows through
the end of subparagraph (A) and inserting the following:
``(13) Electric motor.--
``(A) General purpose electric motor (subtype i).--The term
`general purpose electric motor (subtype I)' means any motor
that meets the definition of `General Purpose' as established
in the final rule issued by the Department of Energy entitled
`Energy Efficiency Program for Certain Commercial and
Industrial Equipment: Test Procedures, Labeling, and
Certification Requirements for Electric Motors' (10 C.F.R.
431), as in effect on the date of enactment of the Energy
Independence and Security Act of 2007.
``(B) General purpose electric motor (subtype ii).--The
term `general purpose electric motor (subtype II)' means
motors incorporating the design elements of a general purpose
electric motor (subtype I) that are configured as 1 of the
following:
``(i) A U-Frame Motor.
``(ii) A Design C Motor.
``(iii) A close-coupled pump motor.
``(iv) A Footless motor.
``(v) A vertical solid shaft normal thrust motor (as tested
in a horizontal configuration).
``(vi) An 8-pole motor (900 rpm).
``(vii) A poly-phase motor with voltage of not more than
600 volts (other than 230 or 460 volts.''.
(b) Standards.--
(1) Amendment.--Section 342(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(b)) is amended--
(A) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) Electric motors.--
``(A) General purpose electric motors (subtype i).--Except
as provided in subparagraph (B), each general purpose
electric motor (subtype I) with a power rating of 1
horsepower or greater, but not greater than 200 horsepower,
manufactured (alone or as a component of another piece of
equipment) after the 3-year period beginning on the date of
enactment of the Energy Independence and Security Act of
2007, shall have a nominal full load efficiency that is not
less than as defined in NEMA MG-1 (2006) Table 12-12.
``(B) Fire pump motors.--Each fire pump motor manufactured
(alone or as a component of another piece of equipment) after
the 3-year period beginning on the date of enactment of the
Energy Independence and Security Act of 2007 shall have
nominal full load efficiency that is not less than as defined
in NEMA MG-1 (2006) Table 12-11.
``(C) General purpose electric motors (subtype ii).--Each
general purpose electric motor (subtype II) with a power
rating of 1 horsepower or greater, but not greater than 200
horsepower, manufactured (alone or as a component of another
piece of equipment) after the 3-year period beginning on the
date of enactment of the Energy Independence and Security Act
of 2007, shall have a nominal full load efficiency that is
not less than as defined in NEMA MG-1 (2006) Table 12-11.
``(D) NEMA design b, general purpose electric motors.--Each
NEMA Design B, general purpose electric motor with a power
rating of more than 200 horsepower, but not greater than 500
horsepower, manufactured (alone or as a component of another
piece of equipment) after the 3-year period beginning on the
date of enactment of the Energy Independence and Security Act
of 2007, shall have a nominal full load efficiency that is
not less than as defined in NEMA MG-1 (2006) Table 12-11.''.
(2) Effective date.--The amendments made by paragraph (1)
take effect on the date that is 3 years after the date of
enactment of this Act.
SEC. 314. STANDARDS FOR SINGLE PACKAGE VERTICAL AIR
CONDITIONERS AND HEAT PUMPS.
(a) Definitions.--Section 340 of the Energy Policy and
Conservation Act (42 U.S.C. 6311) is amended by adding at the
end the following:
``(22) Single package vertical air conditioner.--The term
`single package vertical air conditioner' means air-cooled
commercial package air conditioning and heating equipment
that--
``(A) is factory-assembled as a single package that--
``(i) has major components that are arranged vertically;
``(ii) is an encased combination of cooling and optional
heating components; and
``(iii) is intended for exterior mounting on, adjacent
interior to, or through an outside wall;
``(B) is powered by a single- or 3-phase current;
``(C) may contain 1 or more separate indoor grilles,
outdoor louvers, various ventilation options, indoor free air
discharges, ductwork, well plenum, or sleeves; and
``(D) has heating components that may include electrical
resistance, steam, hot water, or gas, but may not include
reverse cycle refrigeration as a heating means.
``(23) Single package vertical heat pump.--The term `single
package vertical heat pump' means a single package vertical
air conditioner that--
``(A) uses reverse cycle refrigeration as its primary heat
source; and
``(B) may include secondary supplemental heating by means
of electrical resistance, steam, hot water, or gas.''.
(b) Standards.--Section 342(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(a)) is amended--
(1) in the first sentence of each of paragraphs (1) and
(2), by inserting ``(including single package vertical air
conditioners and single package vertical heat pumps)'' after
``heating equipment'' each place it appears;
(2) in paragraph (1), by striking ``but before January 1,
2010,'';
(3) in the first sentence of each of paragraphs (7), (8),
and (9), by inserting ``(other than single package vertical
air conditioners and single package vertical heat pumps)''
after ``heating equipment'' each place it appears;
(4) in paragraph (7)--
(A) by striking ``manufactured on or after January 1,
2010,'';
(B) in each of subparagraphs (A), (B), and (C), by striking
``The'' and inserting ``For equipment manufactured on or
after January 1, 2010, the''; and
(C) by adding at the end the following:
``(D) For equipment manufactured on or after the later of
January 1, 2008, or the date that is 180 days after the date
of enactment of the Energy Independence and Security Act of
2007--
``(i) the minimum seasonal energy efficiency ratio of air-
cooled 3-phase electric central air conditioners and central
air conditioning heat pumps less than 65,000 Btu per hour
(cooling capacity), split systems, shall be 13.0;
``(ii) the minimum seasonal energy efficiency ratio of air-
cooled 3-phase electric central air conditioners and central
air conditioning heat pumps less than 65,000 Btu per hour
(cooling capacity), single package, shall be 13.0;
``(iii) the minimum heating seasonal performance factor of
air-cooled 3-phase electric central air conditioning heat
pumps less than 65,000 Btu per hour (cooling capacity), split
systems, shall be 7.7; and
``(iv) the minimum heating seasonal performance factor of
air-cooled three-phase electric central air conditioning heat
pumps less than 65,000 Btu per hour (cooling capacity),
single package, shall be 7.7.''; and
(5) by adding at the end the following:
``(10) Single package vertical air conditioners and single
package vertical heat pumps.--
``(A) In general.--Single package vertical air conditioners
and single package vertical heat pumps manufactured on or
after January 1, 2010, shall meet the following standards:
``(i) The minimum energy efficiency ratio of single package
vertical air conditioners less than 65,000 Btu per hour
(cooling capacity), single-phase, shall be 9.0.
``(ii) The minimum energy efficiency ratio of single
package vertical air conditioners less than 65,000 Btu per
hour (cooling capacity), three-phase, shall be 9.0.
``(iii) The minimum energy efficiency ratio of single
package vertical air conditioners at or above 65,000 Btu per
hour (cooling capacity) but less than 135,000 Btu per hour
(cooling capacity), shall be 8.9.
``(iv) The minimum energy efficiency ratio of single
package vertical air conditioners at or above 135,000 Btu per
hour (cooling capacity) but less than 240,000 Btu per hour
(cooling capacity), shall be 8.6.
``(v) The minimum energy efficiency ratio of single package
vertical heat pumps less than 65,000 Btu per hour (cooling
capacity), single-phase, shall be 9.0 and the minimum
coefficient of performance in the heating mode shall be 3.0.
``(vi) The minimum energy efficiency ratio of single
package vertical heat pumps less than 65,000 Btu per hour
(cooling capacity), three-phase, shall be 9.0 and the minimum
coefficient of performance in the heating mode shall be 3.0.
``(vii) The minimum energy efficiency ratio of single
package vertical heat pumps at or above 65,000 Btu per hour
(cooling capacity) but less than 135,000 Btu per hour
(cooling capacity), shall be 8.9 and the minimum coefficient
of performance in the heating mode shall be 3.0.
``(viii) The minimum energy efficiency ratio of single
package vertical heat pumps at or above 135,000 Btu per hour
(cooling capacity) but less than 240,000 Btu per hour
(cooling capacity), shall be 8.6 and the minimum coefficient
of performance in the heating mode shall be 2.9.
``(B) Review.--Not later than 3 years after the date of
enactment of this paragraph, the Secretary shall review the
most recently published ASHRAE/IES Standard 90.1 with respect
to single package vertical air conditioners and single
package vertical heat pumps in accordance with the procedures
established under paragraph (6).''.
SEC. 315. IMPROVED ENERGY EFFICIENCY FOR APPLIANCES AND
BUILDINGS IN COLD CLIMATES.
(a) Research.--Section 911(a)(2) of the Energy Policy Act
of 2005 (42 U.S.C. 16191(a)(2)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) technologies to improve the energy efficiency of
appliances and mechanical systems for buildings in cold
climates, including combined heat and power units and
increased use of renewable resources, including fuel.''.
(b) Rebates.--Section 124 of the Energy Policy Act of 2005
(42 U.S.C. 15821) is amended--
(1) in subsection (b)(1), by inserting ``, or products with
improved energy efficiency in
[[Page H14339]]
cold climates,'' after ``residential Energy Star products'';
and
(2) in subsection (e), by inserting ``or product with
improved energy efficiency in a cold climate'' after
``residential Energy Star product'' each place it appears.
SEC. 316. TECHNICAL CORRECTIONS.
(a) Definition of F96T12 Lamp.--
(1) In general.--Section 135(a)(1)(A)(ii) of the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 624) is
amended by striking ``C78.1-1978(R1984)'' and inserting
``C78.3-1978(R1984)''.
(2) Effective date.--The amendment made by paragraph (1)
takes effect on August 8, 2005.
(b) Definition of Fluorescent Lamp.--Section
321(30)(B)(viii) of the Energy Policy and Conservation Act
(42 U.S.C. 6291(30)(B)(viii)) is amended by striking ``82''
and inserting ``87''.
(c) Mercury Vapor Lamp Ballasts.--
(1) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) (as amended by section
301(a)(2)) is amended--
(A) by striking paragraphs (46) through (48) and inserting
the following:
``(46) High intensity discharge lamp.--
``(A) In general.--The term `high intensity discharge lamp'
means an electric-discharge lamp in which--
``(i) the light-producing arc is stabilized by the arc tube
wall temperature; and
``(ii) the arc tube wall loading is in excess of 3 Watts/
cm\2\.
``(B) Inclusions.--The term `high intensity discharge lamp'
includes mercury vapor, metal halide, and high-pressure
sodium lamps described in subparagraph (A).
``(47) Mercury vapor lamp.--
``(A) In general.--The term `mercury vapor lamp' means a
high intensity discharge lamp in which the major portion of
the light is produced by radiation from mercury typically
operating at a partial vapor pressure in excess of 100,000 Pa
(approximately 1 atm).
``(B) Inclusions.--The term `mercury vapor lamp' includes
clear, phosphor-coated, and self-ballasted screw base lamps
described in subparagraph (A).
``(48) Mercury vapor lamp ballast.--The term `mercury vapor
lamp ballast' means a device that is designed and marketed to
start and operate mercury vapor lamps intended for general
illumination by providing the necessary voltage and
current.''; and
(B) by adding at the end the following:
``(53) Specialty application mercury vapor lamp ballast.--
The term `specialty application mercury vapor lamp ballast'
means a mercury vapor lamp ballast that--
``(A) is designed and marketed for operation of mercury
vapor lamps used in quality inspection, industrial
processing, or scientific use, including fluorescent
microscopy and ultraviolet curing; and
``(B) in the case of a specialty application mercury vapor
lamp ballast, the label of which--
``(i) provides that the specialty application mercury vapor
lamp ballast is `For specialty applications only, not for
general illumination'; and
``(ii) specifies the specific applications for which the
ballast is designed.''.
(2) Standard setting authority.--Section 325(ee) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(ee)) is
amended by inserting ``(other than specialty application
mercury vapor lamp ballasts)'' after ``ballasts''.
(d) Energy Conservation Standards.--Section 325 of the
Energy Policy and Conservation Act (42 U.S.C. 6295) is
amended--
(1) in subsection (v)--
(A) in the subsection heading, by striking ``Ceiling Fans
and'';
(B) by striking paragraph (1); and
(C) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively; and
(2) in subsection (ff)--
(A) in paragraph (1)(A)--
(i) by striking clause (iii);
(ii) by redesignating clause (iv) as clause (iii); and
(iii) in clause (iii)(II) (as so redesignated), by
inserting ``fans sold for'' before ``outdoor''; and
(B) in paragraph (4)(C)--
(i) in the matter preceding clause (i), by striking
``subparagraph (B)'' and inserting ``subparagraph (A)''; and
(ii) by striking clause (ii) and inserting the following:
``(ii) shall be packaged with lamps to fill all sockets.'';
(C) in paragraph (6), by redesignating subparagraphs (C)
and (D) as clauses (i) and (ii), respectively, of
subparagraph (B); and
(D) in paragraph (7), by striking ``327'' the second place
it appears and inserting ``324''.
Subtitle B--Lighting Energy Efficiency
SEC. 321. EFFICIENT LIGHT BULBS.
(a) Energy Efficiency Standards for General Service
Incandescent Lamps.--
(1) Definition of general service incandescent lamp.--
Section 321(30) of the Energy Policy and Conservation Act (42
U.S.C. 6291(30)) is amended--
(A) by striking subparagraph (D) and inserting the
following:
``(D) General service incandescent lamp.--
``(i) In general.--The term `general service incandescent
lamp' means a standard incandescent or halogen type lamp
that--
``(I) is intended for general service applications;
``(II) has a medium screw base;
``(III) has a lumen range of not less than 310 lumens and
not more than 2,600 lumens; and
``(IV) is capable of being operated at a voltage range at
least partially within 110 and 130 volts.
``(ii) Exclusions.--The term `general service incandescent
lamp' does not include the following incandescent lamps:
``(I) An appliance lamp.
``(II) A black light lamp.
``(III) A bug lamp.
``(IV) A colored lamp.
``(V) An infrared lamp.
``(VI) A left-hand thread lamp.
``(VII) A marine lamp.
``(VIII) A marine signal service lamp.
``(IX) A mine service lamp.
``(X) A plant light lamp.
``(XI) A reflector lamp.
``(XII) A rough service lamp.
``(XIII) A shatter-resistant lamp (including a shatter-
proof lamp and a shatter-protected lamp).
``(XIV) A sign service lamp.
``(XV) A silver bowl lamp.
``(XVI) A showcase lamp.
``(XVII) A 3-way incandescent lamp.
``(XVIII) A traffic signal lamp.
``(XIX) A vibration service lamp.
``(XX) A G shape lamp (as defined in ANSI C78.20 -2003
andC79.1-2002with a diameter of 5 inches or more.
``(XXI) A T shape lamp (as defined in ANSIC78.20-2003 and
C79.1-2002) and that uses not more than 40 watts or has a
length of more than 10 inches.
``(XXII) A B, BA, CA, F, G16-1/2,G-25,G30, S, or M-14 lamp
(as defined in ANSI C79.1-2002 and ANSI C78.20-2003) of 40
watts or less.''; and
(B) by adding at the end the following:
``(T) Appliance lamp.--The term `appliance lamp' means any
lamp that--
``(i) is specifically designed to operate in a household
appliance, has a maximum wattage of 40 watts, and is sold at
retail, including an oven lamp, refrigerator lamp, and vacuum
cleaner lamp; and
``(ii) is designated and marketed for the intended
application, with--
``(I) the designation on the lamp packaging; and
``(II) marketing materials that identify the lamp as being
for appliance use.
``(U) Candelabra base incandescent lamp.--The term
`candelabra base incandescent lamp' means a lamp that uses
candelabra screw base as described in ANSI C81.61-2006,
Specifications for Electric Bases, common designations E11
and E12.
``(V) Intermediate base incandescent lamp.--The term
`intermediate base incandescent lamp' means a lamp that uses
an intermediate screw base as described in ANSI C81.61-2006,
Specifications for Electric Bases, common designation E17.
``(W) Modified spectrum.--The term `modified spectrum'
means, with respect to an incandescent lamp, an incandescent
lamp that--
``(i) is not a colored incandescent lamp; and
``(ii) when operated at the rated voltage and wattage of
the incandescent lamp--
``(I) has a color point with (x,y) chromaticity coordinates
on the Commission Internationale de l'Eclairage (C.I.E.) 1931
chromaticity diagram that lies below the black-body locus;
and
``(II) has a color point with (x,y) chromaticity
coordinates on the C.I.E. 1931 chromaticity diagram that lies
at least 4 MacAdam steps (as referenced in IESNA LM16)
distant from the color point of a clear lamp with the same
filament and bulb shape, operated at the same rated voltage
and wattage.
``(X) Rough service lamp.--The term `rough service lamp'
means a lamp that--
``(i) has a minimum of 5 supports with filament
configurations that are C-7A, C-11, C-17, and C-22 as listed
in Figure 6-12 of the 9th edition of the IESNA Lighting
handbook, or similar configurations where lead wires are not
counted as supports; and
``(ii) is designated and marketed specifically for `rough
service' applications, with--
``(I) the designation appearing on the lamp packaging; and
``(II) marketing materials that identify the lamp as being
for rough service.
``(Y) 3-way incandescent lamp.--The term `3-way
incandescent lamp' includes an incandescent lamp that--
``(i) employs 2 filaments, operated separately and in
combination, to provide 3 light levels; and
``(ii) is designated on the lamp packaging and marketing
materials as being a 3-way incandescent lamp.
``(Z) Shatter-resistant lamp, shatter-proof lamp, or
shatter-protected lamp.--The terms `shatter-resistant lamp',
`shatter-proof lamp', and `shatter-protected lamp' mean a
lamp that--
``(i) has a coating or equivalent technology that is
compliant with NSF/ANSI 51 and is designed to contain the
glass if the glass envelope of the lamp is broken; and
``(ii) is designated and marketed for the intended
application, with--
``(I) the designation on the lamp packaging; and
``(II) marketing materials that identify the lamp as being
shatter-resistant, shatter-proof, or shatter-protected.
``(AA) Vibration service lamp.--The term `vibration service
lamp' means a lamp that--
``(i) has filament configurations that are C-5, C-7A, or C-
9, as listed in Figure 6-12 of
[[Page H14340]]
the 9th Edition of the IESNA Lighting Handbook or similar
configurations;
``(ii) has a maximum wattage of 60 watts;
``(iii) is sold at retail in packages of 2 lamps or less;
and
``(iv) is designated and marketed specifically for
vibration service or vibration-resistant applications, with--
``(I) the designation appearing on the lamp packaging; and
``(II) marketing materials that identify the lamp as being
vibration service only.
``(BB) General service lamp.--
``(i) In general.--The term `general service lamp'
includes--
``(I) general service incandescent lamps;
``(II) compact fluorescent lamps;
``(III) general service light-emitting diode (LED or OLED)
lamps; and
``(IV) any other lamps that the Secretary determines are
used to satisfy lighting applications traditionally served by
general service incandescent lamps.
``(ii) Exclusions.--The term `general service lamp' does
not include--
``(I) any lighting application or bulb shape described in
any of subclauses (I) through (XXII) of subparagraph (D)(ii);
or
``(II) any general service fluorescent lamp or incandescent
reflector lamp.
``(CC) Light-emitting diode; led.--
``(i) In general.--The terms `light-emitting diode' and
`LED' means a p-n junction solid state device the radiated
output of which is a function of the physical construction,
material used, and exciting current of the device.
``(ii) Output.--The output of a light-emitting diode may be
in--
``(I) the infrared region;
``(II) the visible region; or
``(III) the ultraviolet region.
``(DD) Organic light-emitting diode; oled.--The terms
`organic light-emitting diode' and `OLED' mean a thin-film
light-emitting device that typically consists of a series of
organic layers between 2 electrical contacts (electrodes).
``(EE) Colored incandescent lamp.--The term `colored
incandescent lamp' means an incandescent lamp designated and
marketed as a colored lamp that has--
``(i) a color rendering index of less than 50, as
determined according to the test method given in C.I.E.
publication 13.3-1995; or
``(ii) a correlated color temperature of less than 2,500K,
or greater than 4,600K, where correlated temperature is
computed according to the Journal of Optical Society of
America, Vol. 58, pages 1528-1595 (1986).''.
(2) Coverage.--Section 322(a)(14) of the Energy Policy and
Conservation Act (42 U.S.C. 6292(a)(14)) is amended by
inserting ``, general service incandescent lamps,'' after
``fluorescent lamps''.
(3) Energy conservation standards.--Section 325 of the
Energy Policy and Conservation Act (42 U.S.C. 6295) is
amended--
(A) in subsection (i)--
(i) in the section heading, by inserting ``, General
Service Incandescent Lamps, Intermediate Base Incandescent
Lamps, Candelabra Base Incandescent Lamps,'' after
``Fluorescent Lamps'';
(ii) in paragraph (1)--
(I) in subparagraph (A)--
(aa) by inserting ``, general service incandescent lamps,
intermediate base incandescent lamps, candelabra base
incandescent lamps,'' after ``fluorescent lamps'';
(bb) by inserting ``, new maximum wattage,'' after ``lamp
efficacy''; and
(cc) by inserting after the table entitled ``incandescent
reflector lamps'' the following:
GENERAL SERVICE INCANDESCENT LAMPS
------------------------------------------------------------------------
Rated Lumen Minimum Rate
Ranges Maximum Rate Wattage Lifetime Effective Date
------------------------------------------------------------------------
1490-2600 72 1,000 hrs 1/1/2012
1050-1489 53 1,000 hrs 1/1/2013
750-1049 43 1,000 hrs 1/1/2014
310-749 29 1,000 hrs 1/1/2014
------------------------------------------------------------------------
MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
------------------------------------------------------------------------
Rated Lumen Minimum Rate
Ranges Maximum Rate Wattage Lifetime Effective Date
------------------------------------------------------------------------
1118-1950 72 1,000 hrs 1/1/2012
788-1117 53 1,000 hrs 1/1/2013
563-787 43 1,000 hrs 1/1/2014
232-562 29 1,000 hrs 1/1/2014'';
------------------------------------------------------------------------
and
(II) by striking subparagraph (B) and inserting the
following:
``(B) Application.--
``(i) Application criteria.--This subparagraph applies to
each lamp that--
``(I) is intended for a general service or general
illumination application (whether incandescent or not);
``(II) has a medium screw base or any other screw base not
defined in ANSI C81.61-2006;
``(III) is capable of being operated at a voltage at least
partially within the range of 110 to 130 volts; and
``(IV) is manufactured or imported after December 31, 2011.
``(ii) Requirement.--For purposes of this paragraph, each
lamp described in clause (i) shall have a color rendering
index that is greater than or equal to--
``(I) 80 for nonmodified spectrum lamps; or
``(II) 75 for modified spectrum lamps.
``(C) Candelabra incandescent lamps and intermediate base
incandescent lamps.--
``(i) Candelabra base incandescent lamps.--A candelabra
base incandescent lamp shall not exceed 60 rated watts.
``(ii) Intermediate base incandescent lamps.--An
intermediate base incandescent lamp shall not exceed 40 rated
watts.
``(D) Exemptions.--
``(i) Petition.--Any person may petition the Secretary for
an exemption for a type of general service lamp from the
requirements of this subsection.
``(ii) Criteria.--The Secretary may grant an exemption
under clause (i) only to the extent that the Secretary finds,
after a hearing and opportunity for public comment, that it
is not technically feasible to serve a specialized lighting
application (such as a military, medical, public safety, or
certified historic lighting application) using a lamp that
meets the requirements of this subsection.
``(iii) Additional criterion.--To grant an exemption for a
product under this subparagraph, the Secretary shall include,
as an additional criterion, that the exempted product is
unlikely to be used in a general service lighting
application.
``(E) Extension of coverage.--
``(i) Petition.--Any person may petition the Secretary to
establish standards for lamp shapes or bases that are
excluded from the definition of general service lamps.
``(ii) Increased sales of exempted lamps.--The petition
shall include evidence that the availability or sales of
exempted incandescent lamps have increased significantly
since the date on which the standards on general service
incandescent lamps were established.
``(iii) Criteria.--The Secretary shall grant a petition
under clause (i) if the Secretary finds that--
``(I) the petition presents evidence that demonstrates that
commercial availability or sales of exempted incandescent
lamp types have increased significantly since the standards
on general service lamps were established and likely are
being widely used in general lighting applications; and
``(II) significant energy savings could be achieved by
covering exempted products, as determined by the Secretary
based on sales data provided to the Secretary from
manufacturers and importers.
``(iv) No presumption.--The grant of a petition under this
subparagraph shall create no presumption with respect to the
determination of the Secretary with respect to any criteria
under a rulemaking conducted under this section.
``(v) Expedited proceeding.--If the Secretary grants a
petition for a lamp shape or base under this subparagraph,
the Secretary shall--
``(I) conduct a rulemaking to determine standards for the
exempted lamp shape or base; and
``(II) complete the rulemaking not later than 18 months
after the date on which notice is provided granting the
petition.
``(F) Definition of effective date.--In this paragraph,
except as otherwise provided in a table contained in
subparagraph (A), the term `effective date' means the last
day of the month specified in the table that follows October
24, 1992.'';
(iii) in paragraph (5), in the first sentence, by striking
``and general service incandescent lamps'';
(iv) by redesignating paragraphs (6) and (7) as paragraphs
(7) and (8), respectively; and
(v) by inserting after paragraph (5) the following:
``(6) Standards for general service lamps.--
``(A) Rulemaking before january 1, 2014.--
[[Page H14341]]
``(i) In general.--Not later than January 1, 2014, the
Secretary shall initiate a rulemaking procedure to determine
whether--
``(I) standards in effect for general service lamps should
be amended to establish more stringent standards than the
standards specified in paragraph (1)(A); and
``(II) the exemptions for certain incandescent lamps should
be maintained or discontinued based, in part, on exempted
lamp sales collected by the Secretary from manufacturers.
``(ii) Scope.--The rulemaking--
``(I) shall not be limited to incandescent lamp
technologies; and
``(II) shall include consideration of a minimum standard of
45 lumens per watt for general service lamps.
``(iii) Amended standards.--If the Secretary determines
that the standards in effect for general service incandescent
lamps should be amended, the Secretary shall publish a final
rule not later than January 1, 2017, with an effective date
that is not earlier than 3 years after the date on which the
final rule is published.
``(iv) Phased-in effective dates.--The Secretary shall
consider phased-in effective dates under this subparagraph
after considering--
``(I) the impact of any amendment on manufacturers,
retiring and repurposing existing equipment, stranded
investments, labor contracts, workers, and raw materials; and
``(II) the time needed to work with retailers and lighting
designers to revise sales and marketing strategies.
``(v) Backstop requirement.--If the Secretary fails to
complete a rulemaking in accordance with clauses (i) through
(iv) or if the final rule does not produce savings that are
greater than or equal to the savings from a minimum efficacy
standard of 45 lumens per watt, effective beginning January
1, 2020, the Secretary shall prohibit the sale of any general
service lamp that does not meet a minimum efficacy standard
of 45 lumens per watt.
``(vi) State preemption.--Neither section 327(b) nor any
other provision of law shall preclude California or Nevada
from adopting, effective beginning on or after January 1,
2018--
``(I) a final rule adopted by the Secretary in accordance
with clauses (i) through (iv);
``(II) if a final rule described in subclause (I) has not
been adopted, the backstop requirement under clause (v); or
``(III) in the case of California, if a final rule
described in subclause (I) has not been adopted, any
California regulations relating to these covered products
adopted pursuant to State statute in effect as of the date of
enactment of the Energy Independence and Security Act of
2007.
``(B) Rulemaking before january 1, 2020.--
``(i) In general.--Not later than January 1, 2020, the
Secretary shall initiate a rulemaking procedure to determine
whether--
``(I) standards in effect for general service incandescent
lamps should be amended to reflect lumen ranges with more
stringent maximum wattage than the standards specified in
paragraph (1)(A); and
``(II) the exemptions for certain incandescent lamps should
be maintained or discontinued based, in part, on exempted
lamp sales data collected by the Secretary from
manufacturers.
``(ii) Scope.--The rulemaking shall not be limited to
incandescent lamp technologies.
``(iii) Amended standards.--If the Secretary determines
that the standards in effect for general service incandescent
lamps should be amended, the Secretary shall publish a final
rule not later than January 1, 2022, with an effective date
that is not earlier than 3 years after the date on which the
final rule is published.
``(iv) Phased-in effective dates.--The Secretary shall
consider phased-in effective dates under this subparagraph
after considering--
``(I) the impact of any amendment on manufacturers,
retiring and repurposing existing equipment, stranded
investments, labor contracts, workers, and raw materials; and
``(II) the time needed to work with retailers and lighting
designers to revise sales and marketing strategies.''; and
(B) in subsection (l), by adding at the end the following:
``(4) Energy efficiency standards for certain lamps.--
``(A) In general.--The Secretary shall prescribe an energy
efficiency standard for rough service lamps, vibration
service lamps, 3-way incandescent lamps, 2,601-3,300 lumen
general service incandescent lamps, and shatter-resistant
lamps only in accordance with this paragraph.
``(B) Benchmarks.--Not later than 1 year after the date of
enactment of this paragraph, the Secretary, in consultation
with the National Electrical Manufacturers Association,
shall--
``(i) collect actual data for United States unit sales for
each of calendar years 1990 through 2006 for each of the 5
types of lamps described in subparagraph (A) to determine the
historical growth rate of the type of lamp; and
``(ii) construct a model for each type of lamp based on
coincident economic indicators that closely match the
historical annual growth rate of the type of lamp to provide
a neutral comparison benchmark to model future unit sales
after calendar year 2006.
``(C) Actual sales data.--
``(i) In general.--Effective for each of calendar years
2010 through 2025, the Secretary, in consultation with the
National Electrical Manufacturers Association, shall--
``(I) collect actual United States unit sales data for each
of 5 types of lamps described in subparagraph (A); and
``(II) not later than 90 days after the end of each
calendar year, compare the lamp sales in that year with the
sales predicted by the comparison benchmark for each of the 5
types of lamps described in subparagraph (A).
``(ii) Continuation of tracking.--
``(I) Determination.--Not later than January 1, 2023, the
Secretary shall determine if actual sales data should be
tracked for the lamp types described in subparagraph (A)
after calendar year 2025.
``(II) Continuation.--If the Secretary finds that the
market share of a lamp type described in subparagraph (A)
could significantly erode the market share for general
service lamps, the Secretary shall continue to track the
actual sales data for the lamp type.
``(D) Rough service lamps.--
``(i) In general.--Effective beginning with the first year
that the reported annual sales rate for rough service lamps
demonstrates actual unit sales of rough service lamps that
achieve levels that are at least 100 percent higher than
modeled unit sales for that same year, the Secretary shall--
``(I) not later than 90 days after the end of the previous
calendar year, issue a finding that the index has been
exceeded; and
``(II) not later than the date that is 1 year after the end
of the previous calendar year, complete an accelerated
rulemaking to establish an energy conservation standard for
rough service lamps.
``(ii) Backstop requirement.--If the Secretary fails to
complete an accelerated rulemaking in accordance with clause
(i)(II), effective beginning 1 year after the date of the
issuance of the finding under clause (i)(I), the Secretary
shall require rough service lamps to--
``(I) have a shatter-proof coating or equivalent technology
that is compliant with NSF/ANSI 51 and is designed to contain
the glass if the glass envelope of the lamp is broken and to
provide effective containment over the life of the lamp;
``(II) have a maximum 40-watt limitation; and
``(III) be sold at retail only in a package containing 1
lamp.
``(E) Vibration service lamps.--
``(i) In general.--Effective beginning with the first year
that the reported annual sales rate for vibration service
lamps demonstrates actual unit sales of vibration service
lamps that achieve levels that are at least 100 percent
higher than modeled unit sales for that same year, the
Secretary shall--
``(I) not later than 90 days after the end of the previous
calendar year, issue a finding that the index has been
exceeded; and
``(II) not later than the date that is 1 year after the end
of the previous calendar year, complete an accelerated
rulemaking to establish an energy conservation standard for
vibration service lamps.
``(ii) Backstop requirement.--If the Secretary fails to
complete an accelerated rulemaking in accordance with clause
(i)(II), effective beginning 1 year after the date of the
issuance of the finding under clause (i)(I), the Secretary
shall require vibration service lamps to--
``(I) have a maximum 40-watt limitation; and
``(II) be sold at retail only in a package containing 1
lamp.
``(F) 3-way incandescent lamps.--
``(i) In general.--Effective beginning with the first year
that the reported annual sales rate for 3-way incandescent
lamps demonstrates actual unit sales of 3-way incandescent
lamps that achieve levels that are at least 100 percent
higher than modeled unit sales for that same year, the
Secretary shall--
``(I) not later than 90 days after the end of the previous
calendar year, issue a finding that the index has been
exceeded; and
``(II) not later than the date that is 1 year after the end
of the previous calendar year, complete an accelerated
rulemaking to establish an energy conservation standard for
3-way incandescent lamps.
``(ii) Backstop requirement.--If the Secretary fails to
complete an accelerated rulemaking in accordance with clause
(i)(II), effective beginning 1 year after the date of
issuance of the finding under clause (i)(I), the Secretary
shall require that--
``(I) each filament in a 3-way incandescent lamp meet the
new maximum wattage requirements for the respective lumen
range established under subsection (i)(1)(A); and
``(II) 3-way lamps be sold at retail only in a package
containing 1 lamp.
``(G) 2,601-3,300 lumen general service incandescent
lamps.--Effective beginning with the first year that the
reported annual sales rate demonstrates actual unit sales of
2,601-3,300 lumen general service incandescent lamps in the
lumen range of 2,601 through 3,300 lumens (or, in the case of
a modified spectrum, in the lumen range of 1,951 through
2,475 lumens) that achieve levels that are at least 100
percent higher than modeled unit sales for that same year,
the Secretary shall impose--
``(i) a maximum 95-watt limitation on general service
incandescent lamps in the lumen range of 2,601 through 3,300
lumens; and
``(ii) a requirement that those lamps be sold at retail
only in a package containing 1 lamp.
[[Page H14342]]
``(H) Shatter-resistant lamps.--
``(i) In general.--Effective beginning with the first year
that the reported annual sales rate for shatter-resistant
lamps demonstrates actual unit sales of shatter-resistant
lamps that achieve levels that are at least 100 percent
higher than modeled unit sales for that same year, the
Secretary shall--
``(I) not later than 90 days after the end of the previous
calendar year, issue a finding that the index has been
exceeded; and
``(II) not later than the date that is 1 year after the end
of the previous calendar year, complete an accelerated
rulemaking to establish an energy conservation standard for
shatter-resistant lamps.
``(ii) Backstop requirement.--If the Secretary fails to
complete an accelerated rulemaking in accordance with clause
(i)(II), effective beginning 1 year after the date of
issuance of the finding under clause (i)(I), the Secretary
shall impose--
``(I) a maximum wattage limitation of 40 watts on shatter
resistant lamps; and
``(II) a requirement that those lamps be sold at retail
only in a package containing 1 lamp.
``(I) Rulemakings before january 1, 2025.--
``(i) In general.--Except as provided in clause (ii), if
the Secretary issues a final rule prior to January 1, 2025,
establishing an energy conservation standard for any of the 5
types of lamps for which data collection is required under
any of subparagraphs (D) through (G), the requirement to
collect and model data for that type of lamp shall terminate
unless, as part of the rulemaking, the Secretary determines
that continued tracking is necessary.
``(ii) Backstop requirement.--If the Secretary imposes a
backstop requirement as a result of a failure to complete an
accelerated rulemaking in accordance with clause (i)(II) of
any of subparagraphs (D) through (G), the requirement to
collect and model data for the applicable type of lamp shall
continue for an additional 2 years after the effective date
of the backstop requirement.''.
(b) Consumer Education and Lamp Labeling.--Section
324(a)(2)(C) of the Energy Policy and Conservation Act (42
U.S.C. 6294(a)(2)(C)) is amended by adding at the end the
following:
``(iii) Rulemaking to consider effectiveness of lamp
labeling.--
``(I) In general.--Not later than 1 year after the date of
enactment of this clause, the Commission shall initiate a
rulemaking to consider--
``(aa) the effectiveness of current lamp labeling for power
levels or watts, light output or lumens, and lamp lifetime;
and
``(bb) alternative labeling approaches that will help
consumers to understand new high-efficiency lamp products and
to base the purchase decisions of the consumers on the most
appropriate source that meets the requirements of the
consumers for lighting level, light quality, lamp lifetime,
and total lifecycle cost.
``(II) Completion.--The Commission shall--
``(aa) complete the rulemaking not later than the date that
is 30 months after the date of enactment of this clause; and
``(bb) consider reopening the rulemaking not later than 180
days before the effective dates of the standards for general
service incandescent lamps established under section
325(i)(1)(A), if the Commission determines that further
labeling changes are needed to help consumers understand lamp
alternatives.''.
(c) Market Assessments and Consumer Awareness Program.--
(1) In general.--In cooperation with the Administrator of
the Environmental Protection Agency, the Secretary of
Commerce, the Federal Trade Commission, lighting and retail
industry associations, energy efficiency organizations, and
any other entities that the Secretary of Energy determines to
be appropriate, the Secretary of Energy shall--
(A) conduct an annual assessment of the market for general
service lamps and compact fluorescent lamps--
(i) to identify trends in the market shares of lamp types,
efficiencies, and light output levels purchased by
residential and nonresidential consumers; and
(ii) to better understand the degree to which consumer
decisionmaking is based on lamp power levels or watts, light
output or lumens, lamp lifetime, and other factors, including
information required on labels mandated by the Federal Trade
Commission;
(B) provide the results of the market assessment to the
Federal Trade Commission for consideration in the rulemaking
described in section 324(a)(2)(C)(iii) of the Energy Policy
and Conservation Act (42 U.S.C. 6294(a)(2)(C)(iii)); and
(C) in cooperation with industry trade associations,
lighting industry members, utilities, and other interested
parties, carry out a proactive national program of consumer
awareness, information, and education that broadly uses the
media and other effective communication techniques over an
extended period of time to help consumers understand the lamp
labels and make energy-efficient lighting choices that meet
the needs of consumers.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000
for each of fiscal years 2009 through 2012.
(d) General Rule of Preemption for Energy Conservation
Standards Before Federal Standard Becomes Effective for a
Product.--Section 327(b)(1) of the Energy Policy and
Conservation Act (42 U.S.C. 6297(b)(1)) is amended--
(1) by inserting ``(A)'' after ``(1)'';
(2) by inserting ``or'' after the semicolon at the end; and
(3) by adding at the end the following:
``(B) in the case of any portion of any regulation that
establishes requirements for general service incandescent
lamps, intermediate base incandescent lamps, or candelabra
base lamps, was enacted or adopted by the States of
California or Nevada before December 4, 2007, except that--
``(i) the regulation adopted by the California Energy
Commission with an effective date of January 1, 2008, shall
only be effective until the effective date of the Federal
standard for the applicable lamp category under subparagraphs
(A), (B), and (C) of section 325(i)(1);
``(ii) the States of California and Nevada may, at any
time, modify or adopt a State standard for general service
lamps to conform with Federal standards with effective dates
no earlier than 12 months prior to the Federal effective
dates prescribed under subparagraphs (A), (B), and (C) of
section 325(i)(1), at which time any prior regulations
adopted by the States of California or Nevada shall no longer
be effective; and
``(iii) all other States may, at any time, modify or adopt
a State standard for general service lamps to conform with
Federal standards and effective dates.''.
(e) Prohibited Acts.--Section 332(a) of the Energy Policy
and Conservation Act (42 U.S.C. 6302(a)) is amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(6) for any manufacturer, distributor, retailer, or
private labeler to distribute in commerce an adapter that--
``(A) is designed to allow an incandescent lamp that does
not have a medium screw base to be installed into a fixture
or lampholder with a medium screw base socket; and
``(B) is capable of being operated at a voltage range at
least partially within 110 and 130 volts.''.
(f) Enforcement.--Section 334 of the Energy Policy and
Conservation Act (42 U.S.C. 6304) is amended by inserting
after the second sentence the following: ``Any such action to
restrain any person from distributing in commerce a general
service incandescent lamp that does not comply with the
applicable standard established under section 325(i) or an
adapter prohibited under section 332(a)(6) may also be
brought by the attorney general of a State in the name of the
State.''.
(g) Research and Development Program.--
(1) In general.--The Secretary may carry out a lighting
technology research and development program--
(A) to support the research, development, demonstration,
and commercial application of lamps and related technologies
sold, offered for sale, or otherwise made available in the
United States; and
(B) to assist manufacturers of general service lamps in the
manufacturing of general service lamps that, at a minimum,
achieve the wattage requirements imposed as a result of the
amendments made by subsection (a).
(2) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection $10,000,000
for each of fiscal years 2008 through 2013.
(3) Termination of authority.--The program under this
subsection shall terminate on September 30, 2015.
(h) Reports to Congress.--
(1) Report on mercury use and release.--Not later than 1
year after the date of enactment of this Act, the Secretary ,
in cooperation with the Administrator of the Environmental
Protection Agency, shall submit to Congress a report
describing recommendations relating to the means by which the
Federal Government may reduce or prevent the release of
mercury during the manufacture, transportation, storage, or
disposal of light bulbs.
(2) Report on rulemaking schedule.--Beginning on July 1,
2013 and semiannually through July 1, 2016, the Secretary
shall submit to the Committee on Energy and Commerce of the
House of Representatives and the Committee on Energy and
Natural Resources of the Senate a report on--
(A) whether the Secretary will meet the deadlines for the
rulemakings required under this section;
(B) a description of any impediments to meeting the
deadlines; and
(C) a specific plan to remedy any failures, including
recommendations for additional legislation or resources.
(3) National academy review.--
(A) In general.--Not later than December 31, 2009, the
Secretary shall enter into an arrangement with the National
Academy of Sciences to provide a report by December 31, 2013,
and an updated report by July 31, 2015. The report should
include--
(i) the status of advanced solid state lighting research,
development, demonstration and commercialization;
(ii) the impact on the types of lighting available to
consumers of an energy conservation standard requiring a
minimum of 45 lumens per watt for general service lighting
effective in 2020; and
(iii) the time frame for the commercialization of lighting
that could replace current incandescent and halogen
incandescent lamp
[[Page H14343]]
technology and any other new technologies developed to meet
the minimum standards required under subsection (a) (3) of
this section.
(B) Reports.--The reports shall be transmitted to the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate.
SEC. 322. INCANDESCENT REFLECTOR LAMP EFFICIENCY STANDARDS.
(a) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) (as amended by section
316(c)(1)(D)) is amended--
(1) in paragraph (30)(C)(ii)--
(A) in the matter preceding subclause (I)--
(i) by striking ``or similar bulb shapes (excluding ER or
BR)'' and inserting ``ER, BR, BPAR, or similar bulb shapes'';
and
(ii) by striking ``2.75'' and inserting ``2.25''; and
(B) by striking ``is either--'' and all that follows
through subclause (II) and inserting ``has a rated wattage
that is 40 watts or higher''; and
(2) by adding at the end the following:
``(54) BPAR incandescent reflector lamp.--The term `BPAR
incandescent reflector lamp' means a reflector lamp as shown
in figure C78.21-278 on page 32 of ANSI C78.21-2003.
``(55) BR incandescent reflector lamp; br30; br40.--
``(A) BR incandescent reflector lamp.--The term `BR
incandescent reflector lamp' means a reflector lamp that
has--
``(i) a bulged section below the major diameter of the bulb
and above the approximate baseline of the bulb, as shown in
figure 1 (RB) on page 7 of ANSI C79.1-1994, incorporated by
reference in section 430.22 of title 10, Code of Federal
Regulations (as in effect on the date of enactment of this
paragraph); and
``(ii) a finished size and shape shown in ANSI C78.21-1989,
including the referenced reflective characteristics in part 7
of ANSI C78.21-1989, incorporated by reference in section
430.22 of title 10, Code of Federal Regulations (as in effect
on the date of enactment of this paragraph).
``(B) BR30.--The term `BR30' means a BR incandescent
reflector lamp with a diameter of 30/8ths of an inch.
``(C) BR40.--The term `BR40' means a BR incandescent
reflector lamp with a diameter of 40/8ths of an inch.
``(56) ER incandescent reflector lamp; er30; er40.--
``(A) ER incandescent reflector lamp.--The term `ER
incandescent reflector lamp' means a reflector lamp that
has--
``(i) an elliptical section below the major diameter of the
bulb and above the approximate baseline of the bulb, as shown
in figure 1 (RE) on page 7 of ANSI C79.1-1994, incorporated
by reference in section 430.22 of title 10, Code of Federal
Regulations (as in effect on the date of enactment of this
paragraph); and
``(ii) a finished size and shape shown in ANSI C78.21-1989,
incorporated by reference in section 430.22 of title 10, Code
of Federal Regulations (as in effect on the date of enactment
of this paragraph).
``(B) ER30.--The term `ER30' means an ER incandescent
reflector lamp with a diameter of 30/8ths of an inch.
``(C) ER40.--The term `ER40' means an ER incandescent
reflector lamp with a diameter of 40/8ths of an inch.
``(57) R20 incandescent reflector lamp.--The term `R20
incandescent reflector lamp' means a reflector lamp that has
a face diameter of approximately 2.5 inches, as shown in
figure 1(R) on page 7 of ANSI C79.1-1994.''.
(b) Standards for Fluorescent Lamps and Incandescent
Reflector Lamps.--Section 325(i) of the Energy Policy and
Conservation Act (42 U.S.C. 6995(i)) is amended by striking
paragraph (1) and inserting the following:
``(1) Standards.--
``(A) Definition of effective date.--In this paragraph
(other than subparagraph (D)), the term `effective date'
means, with respect to each type of lamp specified in a table
contained in subparagraph (B), the last day of the period of
months corresponding to that type of lamp (as specified in
the table) that follows October 24, 1992.
``(B) Minimum standards.--Each of the following general
service fluorescent lamps and incandescent reflector lamps
manufactured after the effective date specified in the tables
contained in this paragraph shall meet or exceed the
following lamp efficacy and CRI standards:
FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Effective Date
Lamp Type Nominal Lamp Minimum CRI Minimum Average Lamp (Period of
Wattage Efficacy (LPW) Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin........... >35 W 69 75.0 36
35 W 45 75.0 36
2-foot U-shaped................ >35 W 69 68.0 36
35 W 45 64.0 36
8-foot slimline................ 65 W 69 80.0 18
65 W 45 80.0 18
8-foot high output............. >100 W 69 80.0 18
100 W 45 80.0 18
----------------------------------------------------------------------------------------------------------------
INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
Effective Date
Nominal Lamp Wattage Minimum Average Lamp (Period of
Efficacy (LPW) Months)
------------------------------------------------------------------------
40-50....................... 10.5 36
51-66....................... 11.0 36
67-85....................... 12.5 36
86-115...................... 14.0 36
116-155...................... 14.5 36
156-205...................... 15.0 36
------------------------------------------------------------------------
``(C) Exemptions.--The standards specified in subparagraph
(B) shall not apply to the following types of incandescent
reflector lamps:
``(i) Lamps rated at 50 watts or less that are ER30, BR30,
BR40, or ER40 lamps.
``(ii) Lamps rated at 65 watts that are BR30, BR40, or ER40
lamps.
``(iii) R20 incandescent reflector lamps rated 45 watts or
less.
``(D) Effective dates.--
``(i) ER, br, and bpar lamps.--The standards specified in
subparagraph (B) shall apply with respect to ER incandescent
reflector lamps, BR incandescent reflector lamps, BPAR
incandescent reflector lamps, and similar bulb shapes on and
after January 1, 2008.
``(ii) Lamps between 2.25-2.75 inches in diameter.--The
standards specified in subparagraph (B) shall apply with
respect to incandescent reflector lamps with a diameter of
more than 2.25 inches, but not more than 2.75 inches, on and
after the later of January 1, 2008, or the date that is 180
days after the date of enactment of the Energy Independence
and Security Act of 2007.''.
SEC. 323. PUBLIC BUILDING ENERGY EFFICIENT AND RENEWABLE
ENERGY SYSTEMS.
(a) Estimate of Energy Performance in Prospectus.--Section
3307(b) of title 40, United States Code, is amended--
(1) by striking ``and'' at the end of paragraph (5);
(2) by striking the period at the end of paragraph (6) and
inserting ``; and''; and
(3) by inserting after paragraph (6) the following:
``(7) with respect to any prospectus for the construction,
alteration, or acquisition of any building or space to be
leased, an estimate of the future energy performance of the
building or space and a specific description of the use of
energy efficient and renewable energy systems, including
photovoltaic systems, in carrying out the project.''.
(b) Minimum Performance Requirements for Leased Space.--
Section 3307 of such of title is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
``(f) Minimum Performance Requirements for Leased Space.--
With respect to space to be leased, the Administrator shall
include, to the maximum extent practicable, minimum
performance requirements requiring energy efficiency and the
use of renewable energy.''.
(c) Use of Energy Efficient Lighting Fixtures and Bulbs.--
(1) In general.--Chapter 33 of such title is amended--
(A) by redesignating sections 3313, 3314, and 3315 as
sections 3314, 3315, and 3316, respectively; and
(B) by inserting after section 3312 the following:
``Sec. 3313. Use of energy efficient lighting fixtures and
bulbs
``(a) Construction, Alteration, and Acquisition of Public
Buildings.--Each public building constructed, altered, or
acquired by the Administrator of General Services shall be
equipped, to the maximum extent feasible as determined by the
Administrator, with lighting fixtures and bulbs that are
energy efficient.
``(b) Maintenance of Public Buildings.--Each lighting
fixture or bulb that is replaced by the Administrator in the
normal course of maintenance of public buildings shall be
replaced, to the maximum extent feasible, with a lighting
fixture or bulb that is energy efficient.
``(c) Considerations.--In making a determination under this
section concerning the
[[Page H14344]]
feasibility of installing a lighting fixture or bulb that is
energy efficient, the Administrator shall consider--
``(1) the life-cycle cost effectiveness of the fixture or
bulb;
``(2) the compatibility of the fixture or bulb with
existing equipment;
``(3) whether use of the fixture or bulb could result in
interference with productivity;
``(4) the aesthetics relating to use of the fixture or
bulb; and
``(5) such other factors as the Administrator determines
appropriate.
``(d) Energy Star.--A lighting fixture or bulb shall be
treated as being energy efficient for purposes of this
section if--
``(1) the fixture or bulb is certified under the Energy
Star program established by section 324A of the Energy Policy
and Conservation Act (42 U.S.C. 6294a);
``(2) in the case of all light-emitting diode (LED)
luminaires, lamps, and systems whose efficacy (lumens per
watt) and Color Rendering Index (CRI) meet the Department of
Energy requirements for minimum luminaire efficacy and CRI
for the Energy Star certification, as verified by an
independent third-party testing laboratory that the
Administrator and the Secretary of Energy determine conducts
its tests according to the procedures and recommendations of
the Illuminating Engineering Society of North America, even
if the luminaires, lamps, and systems have not received such
certification; or
``(3) the Administrator and the Secretary of Energy have
otherwise determined that the fixture or bulb is energy
efficient.
``(e) Additional Energy Efficient Lighting Designations.--
The Administrator of the Environmental Protection Agency and
the Secretary of Energy shall give priority to establishing
Energy Star performance criteria or Federal Energy Management
Program designations for additional lighting product
categories that are appropriate for use in public buildings.
``(f) Guidelines.--The Administrator shall develop
guidelines for the use of energy efficient lighting
technologies that contain mercury in child care centers in
public buildings.
``(g) Applicability of Buy American Act.--Acquisitions
carried out pursuant to this section shall be subject to the
requirements of the Buy American Act (41 U.S.C. 10c et seq.).
``(h) Effective Date.--The requirements of subsections (a)
and (b) shall take effect one year after the date of
enactment of this subsection.''.
(2) Clerical amendment.--The analysis for such chapter is
amended by striking the items relating to sections 3313,
3314, and 3315 and inserting the following:
``3313. Use of energy efficient lighting fixtures and bulbs.
``3314. Delegation.
``3315. Report to Congress.
``3316. Certain authority not affected.''.
(d) Evaluation Factor.--Section 3310 of such title is
amended--
(1) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) shall include in the solicitation for any lease
requiring a prospectus under section 3307 an evaluation
factor considering the extent to which the offeror will
promote energy efficiency and the use of renewable energy;''.
SEC. 324. METAL HALIDE LAMP FIXTURES.
(a) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) (as amended by section
322(a)(2)) is amended by adding at the end the following:
``(58) Ballast.--The term `ballast' means a device used
with an electric discharge lamp to obtain necessary circuit
conditions (voltage, current, and waveform) for starting and
operating.
``(59) Ballast efficiency.--
``(A) In general.--The term `ballast efficiency' means, in
the case of a high intensity discharge fixture, the
efficiency of a lamp and ballast combination, expressed as a
percentage, and calculated in accordance with the following
formula: Efficiency = Pout/Pin.
``(B) Efficiency formula.--For the purpose of subparagraph
(A)--
``(i) Pout shall equal the measured operating
lamp wattage;
``(ii) Pin shall equal the measured operating
input wattage;
``(iii) the lamp, and the capacitor when the capacitor is
provided, shall constitute a nominal system in accordance
with the ANSI Standard C78.43-2004;
``(iv) for ballasts with a frequency of 60 Hz,
Pin and Pout shall be measured after
lamps have been stabilized according to section 4.4 of ANSI
Standard C82.6-2005 using a wattmeter with accuracy specified
in section 4.5 of ANSI Standard C82.6-2005; and
``(v) for ballasts with a frequency greater than 60 Hz,
Pin and Pout shall have a basic
accuracy of 0.5 percent at the higher of--
``(I) 3 times the output operating frequency of the
ballast; or
``(II) 2 kHz for ballast with a frequency greater than 60
Hz.
``(C) Modification.--The Secretary may, by rule, modify the
definition of `ballast efficiency' if the Secretary
determines that the modification is necessary or appropriate
to carry out the purposes of this Act.
``(60) Electronic ballast.--The term `electronic ballast'
means a device that uses semiconductors as the primary means
to control lamp starting and operation.
``(61) General lighting application.--The term `general
lighting application' means lighting that provides an
interior or exterior area with overall illumination.
``(62) Metal halide ballast.--The term `metal halide
ballast' means a ballast used to start and operate metal
halide lamps.
``(63) Metal halide lamp.--The term `metal halide lamp'
means a high intensity discharge lamp in which the major
portion of the light is produced by radiation of metal
halides and their products of dissociation, possibly in
combination with metallic vapors.
``(64) Metal halide lamp fixture.--The term `metal halide
lamp fixture' means a light fixture for general lighting
application designed to be operated with a metal halide lamp
and a ballast for a metal halide lamp.
``(65) Probe-start metal halide ballast.--The term `probe-
start metal halide ballast' means a ballast that--
``(A) starts a probe-start metal halide lamp that contains
a third starting electrode (probe) in the arc tube; and
``(B) does not generally contain an igniter but instead
starts lamps with high ballast open circuit voltage.
``(66) Pulse-start metal halide ballast.--
``(A) In general.--The term `pulse-start metal halide
ballast' means an electronic or electromagnetic ballast that
starts a pulse-start metal halide lamp with high voltage
pulses.
``(B) Starting process.--For the purpose of subparagraph
(A)--
``(i) lamps shall be started by first providing a high
voltage pulse for ionization of the gas to produce a glow
discharge; and
``(ii) to complete the starting process, power shall be
provided by the ballast to sustain the discharge through the
glow-to-arc transition.''.
(b) Coverage.--Section 322(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6292(a)) is amended--
(1) by redesignating paragraph (19) as paragraph (20); and
(2) by inserting after paragraph (18) the following:
``(19) Metal halide lamp fixtures.''.
(c) Test Procedures.--Section 323(b) of the Energy Policy
and Conservation Act (42 U.S.C. 6293(b)) (as amended by
section 301(b)) is amended by adding at the end the
following:
``(18) Metal halide lamp ballasts.--Test procedures for
metal halide lamp ballasts shall be based on ANSI Standard
C82.6-2005, entitled `Ballasts for High Intensity Discharge
Lamps--Method of Measurement'.''.
(d) Labeling.--Section 324(a)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)(2)) is amended--
(1) by redesignating subparagraphs (C) through (G) as
subparagraphs (D) through (H), respectively; and
(2) by inserting after subparagraph (B) the following:
``(C) Metal halide lamp fixtures.--
``(i) In general.--The Commission shall issue labeling
rules under this section applicable to the covered product
specified in section 322(a)(19) and to which standards are
applicable under section 325.
``(ii) Labeling.--The rules shall provide that the labeling
of any metal halide lamp fixture manufactured on or after the
later of January 1, 2009, or the date that is 270 days after
the date of enactment of this subparagraph, shall indicate
conspicuously, in a manner prescribed by the Commission under
subsection (b) by July 1, 2008, a capital letter `E' printed
within a circle on the packaging of the fixture, and on the
ballast contained in the fixture.''.
(e) Standards.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) (as amended by section 310)
is amended--
(1) by redesignating subsection (hh) as subsection (ii);
(2) by inserting after subsection (gg) the following:
``(hh) Metal Halide Lamp Fixtures.--
``(1) Standards.--
``(A) In general.--Subject to subparagraphs (B) and (C),
metal halide lamp fixtures designed to be operated with lamps
rated greater than or equal to 150 watts but less than or
equal to 500 watts shall contain--
``(i) a pulse-start metal halide ballast with a minimum
ballast efficiency of 88 percent;
``(ii) a magnetic probe-start ballast with a minimum
ballast efficiency of 94 percent; or
``(iii) a nonpulse-start electronic ballast with--
``(I) a minimum ballast efficiency of 92 percent for
wattages greater than 250 watts; and
``(II) a minimum ballast efficiency of 90 percent for
wattages less than or equal to 250 watts.
``(B) Exclusions.--The standards established under
subparagraph (A) shall not apply to--
``(i) fixtures with regulated lag ballasts;
``(ii) fixtures that use electronic ballasts that operate
at 480 volts; or
``(iii) fixtures that--
``(I) are rated only for 150 watt lamps;
``(II) are rated for use in wet locations, as specified by
the National Electrical Code 2002, section 410.4(A); and
``(III) contain a ballast that is rated to operate at
ambient air temperatures above 50\0\C, as specified by UL
1029-2001.
``(C) Application.--The standards established under
subparagraph (A) shall apply to
[[Page H14345]]
metal halide lamp fixtures manufactured on or after the later
of--
``(i) January 1, 2009; or
``(ii) the date that is 270 days after the date of
enactment of this subsection.
``(2) Final rule by january 1, 2012.--
``(A) In general.--Not later than January 1, 2012, the
Secretary shall publish a final rule to determine whether the
standards established under paragraph (1) should be amended.
``(B) Administration.--The final rule shall--
``(i) contain any amended standard; and
``(ii) apply to products manufactured on or after January
1, 2015.
``(3) Final rule by january 1, 2019.--
``(A) In general.--Not later than January 1, 2019, the
Secretary shall publish a final rule to determine whether the
standards then in effect should be amended.
``(B) Administration.--The final rule shall--
``(i) contain any amended standards; and
``(ii) apply to products manufactured after January 1,
2022.
``(4) Design and performance requirements.--Notwithstanding
any other provision of law, any standard established pursuant
to this subsection may contain both design and performance
requirements.''; and
(3) in paragraph (2) of subsection (ii) (as redesignated by
paragraph (2)), by striking ``(gg)'' each place it appears
and inserting ``(hh)''.
(f) Effect on Other Law.--Section 327(c) of the Energy
Policy and Conservation Act (42 U.S.C. 6297(c)) is amended--
(1) in paragraph (8)(B), by striking the period at the end
and inserting ``; and''; and
(2) by adding at the end the following:
``(9) is a regulation concerning metal halide lamp fixtures
adopted by the California Energy Commission on or before
January 1, 2011, except that--
``(A) if the Secretary fails to issue a final rule within
180 days after the deadlines for rulemakings in section
325(hh), notwithstanding any other provision of this section,
preemption shall not apply to a regulation concerning metal
halide lamp fixtures adopted by the California Energy
Commission--
``(i) on or before July 1, 2015, if the Secretary fails to
meet the deadline specified in section 325(hh)(2); or
``(ii) on or before July 1, 2022, if the Secretary fails to
meet the deadline specified in section 325(hh)(3).''.
SEC. 325. ENERGY EFFICIENCY LABELING FOR CONSUMER ELECTRONIC
PRODUCTS.
(a) In General.--Section 324(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)) (as amended by section
324(d)) is amended--
(1) in paragraph (2), by adding at the end the following:
``(I) Labeling requirements.--
``(i) In general.--Subject to clauses (ii) through (iv),
not later than 18 months after the date of issuance of
applicable Department of Energy testing procedures, the
Commission, in consultation with the Secretary and the
Administrator of the Environmental Protection Agency (acting
through the Energy Star program), shall, by regulation,
prescribe labeling or other disclosure requirements for the
energy use of--
``(I) televisions;
``(II) personal computers;
``(III) cable or satellite set-top boxes;
``(IV) stand-alone digital video recorder boxes; and
``(V) personal computer monitors.
``(ii) Alternate testing procedures.--In the absence of
applicable testing procedures described in clause (i) for
products described in subclauses (I) through (V) of that
clause, the Commission may, by regulation, prescribe labeling
or other disclosure requirements for a consumer product
category described in clause (i) if the Commission--
``(I) identifies adequate non-Department of Energy testing
procedures for those products; and
``(II) determines that labeling of, or other disclosures
relating to, those products is likely to assist consumers in
making purchasing decisions.
``(iii) Deadline and requirements for labeling.--
``(I) Deadline.--Not later than 18 months after the date of
promulgation of any requirements under clause (i) or (ii),
the Commission shall require labeling of, or other disclosure
requirements for, electronic products described in clause
(i).
``(II) Requirements.--The requirements prescribed under
clause (i) or (ii) may include specific requirements for each
electronic product to be labeled with respect to the
placement, size, and content of Energy Guide labels.
``(iv) Determination of feasibility.--Clause (i) or (ii)
shall not apply in any case in which the Commission
determines that labeling in accordance with this subsection--
``(I) is not technologically or economically feasible; or
``(II) is not likely to assist consumers in making
purchasing decisions.''; and
(2) by adding at the end the following:
``(6) Authority to include additional product categories.--
The Commission may, by regulation, require labeling or other
disclosures in accordance with this subsection for any
consumer product not specified in this subsection or section
322 if the Commission determines that labeling for the
product is likely to assist consumers in making purchasing
decisions.''.
(b) Content of Label.--Section 324(c) of the Energy Policy
and Conservation Act (42 U.S.C. 6924(c)) is amended by adding
at the end the following:
``(9) Discretionary application.--The Commission may apply
paragraphs (1), (2), (3), (5), and (6) of this subsection to
the labeling of any product covered by paragraph (2)(I) or
(6) of subsection (a).''.
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
SEC. 401. DEFINITIONS.
In this title:
(1) Administrator.--The term ``Administrator'' means the
Administrator of General Services.
(2) Advisory committee.--The term ``Advisory Committee''
means the Green Building Advisory Committee established under
section 484.
(3) Commercial director.--The term ``Commercial Director''
means the individual appointed to the position established
under section 421.
(4) Consortium.--The term ``Consortium'' means the High-
Performance Green Building Partnership Consortium created in
response to section 436(c)(1) to represent the private sector
in a public-private partnership to promote high-performance
green buildings and zero-net-energy commercial buildings.
(5) Cost-effective lighting technology.--
(A) In general.--The term ``cost-effective lighting
technology'' means a lighting technology that--
(i) will result in substantial operational cost savings by
ensuring an installed consumption of not more than 1 watt per
square foot; or
(ii) is contained in a list under--
(I) section 553 of Public Law 95-619 (42 U.S.C. 8259b);
(II) Federal acquisition regulation 23-203; and
(III) is at least as energy-conserving as required by other
provisions of this Act, including the requirements of this
title and title III which shall be applicable to the extent
that they would achieve greater energy savings than provided
under clause (i) or this clause.
(B) Inclusions.--The term ``cost-effective lighting
technology'' includes--
(i) lamps;
(ii) ballasts;
(iii) luminaires;
(iv) lighting controls;
(v) daylighting; and
(vi) early use of other highly cost-effective lighting
technologies.
(6) Cost-effective technologies and practices.--The term
``cost-effective technologies and practices'' means a
technology or practice that--
(A) will result in substantial operational cost savings by
reducing electricity or fossil fuel consumption, water, or
other utility costs, including use of geothermal heat pumps;
(B) complies with the provisions of section 553 of Public
Law 95-619 (42 U.S.C. 8259b) and Federal acquisition
regulation 23-203; and
(C) is at least as energy and water conserving as required
under this title, including sections 431 through 435, and
title V, including section 511 through 525, which shall be
applicable to the extent that they are more stringent or
require greater energy or water savings than required by this
section.
(7) Federal director.--The term ``Federal Director'' means
the individual appointed to the position established under
section 436(a).
(8) Federal facility.--The term ``Federal facility'' means
any building that is constructed, renovated, leased, or
purchased in part or in whole for use by the Federal
Government.
(9) Operational cost savings.--
(A) In general.--The term ``operational cost savings''
means a reduction in end-use operational costs through the
application of cost-effective technologies and practices or
geothermal heat pumps, including a reduction in electricity
consumption relative to consumption by the same customer or
at the same facility in a given year, as defined in
guidelines promulgated by the Administrator pursuant to
section 329(b) of the Clean Air Act, that achieves cost
savings sufficient to pay the incremental additional costs of
using cost-effective technologies and practices including
geothermal heat pumps by not later than the later of the date
established under sections 431 through 434, or--
(i) for cost-effective technologies and practices, the date
that is 5 years after the date of installation; and
(ii) for geothermal heat pumps, as soon as practical after
the date of installation of the applicable geothermal heat
pump.
(B) Inclusions.--The term ``operational cost savings''
includes savings achieved at a facility as a result of--
(i) the installation or use of cost-effective technologies
and practices; or
(ii) the planting of vegetation that shades the facility
and reduces the heating, cooling, or lighting needs of the
facility.
(C) Exclusion.--The term ``operational cost savings'' does
not include savings from measures that would likely be
adopted in the absence of cost-effective technology and
practices programs, as determined by the Administrator.
(10) Geothermal heat pump.--The term ``geothermal heat
pump'' means any heating or air conditioning technology
that--
(A) uses the ground or ground water as a thermal energy
source to heat, or as a thermal energy sink to cool, a
building; and
[[Page H14346]]
(B) meets the requirements of the Energy Star program of
the Environmental Protection Agency applicable to geothermal
heat pumps on the date of purchase of the technology.
(11) GSA facility.--
(A) In general.--The term ``GSA facility'' means any
building, structure, or facility, in whole or in part
(including the associated support systems of the building,
structure, or facility) that--
(i) is constructed (including facilities constructed for
lease), renovated, or purchased, in whole or in part, by the
Administrator for use by the Federal Government; or
(ii) is leased, in whole or in part, by the Administrator
for use by the Federal Government--
(I) except as provided in subclause (II), for a term of not
less than 5 years; or
(II) for a term of less than 5 years, if the Administrator
determines that use of cost-effective technologies and
practices would result in the payback of expenses.
(B) Inclusion.--The term ``GSA facility'' includes any
group of buildings, structures, or facilities described in
subparagraph (A) (including the associated energy-consuming
support systems of the buildings, structures, and
facilities).
(C) Exemption.--The Administrator may exempt from the
definition of ``GSA facility'' under this paragraph a
building, structure, or facility that meets the requirements
of section 543(c) of Public Law 95-619 (42 U.S.C. 8253(c)).
(12) High-performance building.--The term ``high
performance building'' means a building that integrates and
optimizes on a life cycle basis all major high performance
attributes, including energy conservation, environment,
safety, security, durability, accessibility, cost-benefit,
productivity, sustainability, functionality, and operational
considerations.
(13) High-performance green building.--The term ``high-
performance green building'' means a high-performance
building that, during its life-cycle, as compared with
similar buildings (as measured by Commercial Buildings Energy
Consumption Survey or Residential Energy Consumption Survey
data from the Energy Information Agency)--
(A) reduces energy, water, and material resource use;
(B) improves indoor environmental quality, including
reducing indoor pollution, improving thermal comfort, and
improving lighting and acoustic environments that affect
occupant health and productivity;
(C) reduces negative impacts on the environment throughout
the life-cycle of the building, including air and water
pollution and waste generation;
(D) increases the use of environmentally preferable
products, including biobased, recycled content, and nontoxic
products with lower life-cycle impacts;
(E) increases reuse and recycling opportunities;
(F) integrates systems in the building;
(G) reduces the environmental and energy impacts of
transportation through building location and site design that
support a full range of transportation choices for users of
the building; and
(H) considers indoor and outdoor effects of the building on
human health and the environment, including--
(i) improvements in worker productivity;
(ii) the life-cycle impacts of building materials and
operations; and
(iii) other factors that the Federal Director or the
Commercial Director consider to be appropriate.
(14) Life-cycle.--The term ``life-cycle'', with respect to
a high-performance green building, means all stages of the
useful life of the building (including components, equipment,
systems, and controls of the building) beginning at
conception of a high-performance green building project and
continuing through site selection, design, construction,
landscaping, commissioning, operation, maintenance,
renovation, deconstruction or demolition, removal, and
recycling of the high-performance green building.
(15) Life-cycle assessment.--The term ``life-cycle
assessment'' means a comprehensive system approach for
measuring the environmental performance of a product or
service over the life of the product or service, beginning at
raw materials acquisition and continuing through
manufacturing, transportation, installation, use, reuse, and
end-of-life waste management.
(16) Life-cycle costing.--The term ``life-cycle costing'',
with respect to a high-performance green building, means a
technique of economic evaluation that--
(A) sums, over a given study period, the costs of initial
investment (less resale value), replacements, operations
(including energy use), and maintenance and repair of an
investment decision; and
(B) is expressed--
(i) in present value terms, in the case of a study period
equivalent to the longest useful life of the building,
determined by taking into consideration the typical life of
such a building in the area in which the building is to be
located; or
(ii) in annual value terms, in the case of any other study
period.
(17) Office of commercial high-performance green
buildings.--The term ``Office of Commercial High-Performance
Green Buildings'' means the Office of Commercial High-
Performance Green Buildings established under section 421(a).
(18) Office of federal high-performance green buildings.--
The term ``Office of Federal High-Performance Green
Buildings'' means the Office of Federal High-Performance
Green Buildings established under section 436(a).
(19) Practices.--The term ``practices'' means design,
financing, permitting, construction, commissioning, operation
and maintenance, and other practices that contribute to
achieving zero-net-energy buildings or facilities.
(20) Zero-net-energy commercial building.--The term ``zero-
net-energy commercial building'' means a commercial building
that is designed, constructed, and operated to--
(A) require a greatly reduced quantity of energy to
operate;
(B) meet the balance of energy needs from sources of energy
that do not produce greenhouse gases;
(C) therefore result in no net emissions of greenhouse
gases; and
(D) be economically viable.
Subtitle A--Residential Building Efficiency
SEC. 411. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE
PROGRAM.
(a) In General.--Section 422 of the Energy Conservation and
Production Act (42 U.S.C. 6872) is amended by striking ``
appropriated $500,000,000 for fiscal year 2006, $600,000,000
for fiscal year 2007, and $700,000,000 for fiscal year 2008''
and inserting ``appropriated--
``(1) $750,000,000 for fiscal year 2008;
``(2) $900,000,000 for fiscal year 2009;
``(3) $1,050,000,000 for fiscal year 2010;
``(4) $1,200,000,000 for fiscal year 2011; and
``(5) $1,400,000,000 for fiscal year 2012.''.
(b) Sustainable Energy Resources for Consumers Grants.--
(1) In general.--The Secretary may make funding available
to local weatherization agencies from amounts authorized
under the amendment made by subsection (a) to expand the
weatherization assistance program for residential buildings
to include materials, benefits, and renewable and domestic
energy technologies not covered by the program (as of the
date of enactment of this Act), if the State weatherization
grantee certifies that the applicant has the capacity to
carry out the proposed activities and that the grantee will
include the project in the financial oversight of the grantee
of the weatherization assistance program.
(2) Priority.--In selecting grant recipients under this
subsection, the Secretary shall give priority to--
(A) the expected effectiveness and benefits of the proposed
project to low- and moderate-income energy consumers;
(B) the potential for replication of successful results;
(C) the impact on the health and safety and energy costs of
consumers served; and
(D) the extent of partnerships with other public and
private entities that contribute to the resources and
implementation of the program, including financial
partnerships.
(3) Funding.--
(A) In general.--Except as provided in paragraph (2), the
amount of funds used for projects described in paragraph (1)
may equal up to 2 percent of the amount of funds made
available for any fiscal year under section 422 of the Energy
Conservation and Production Act (42 U.S.C. 6872).
(B) Exception.--No funds may be used for sustainable energy
resources for consumers grants for a fiscal year under this
subsection if the amount of funds made available for the
fiscal year to carry out the Weatherization Assistance
Program for Low-Income Persons established under part A of
title IV of the Energy Conservation and Production Act (42
U.S.C. 6861 et seq.) is less than $275,000,000.
(c) Definition of State.--Section 412 of the Energy
Conservation and Production Act (42 U.S.C. 6862) is amended
by striking paragraph (8) and inserting the following:
``(8) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of the United
States.''.
SEC. 412. STUDY OF RENEWABLE ENERGY REBATE PROGRAMS.
(a) In General.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall conduct, and
submit to Congress a report on, a study regarding the rebate
programs established under sections 124 and 206(c) of the
Energy Policy Act of 2005 (42 U.S.C. 15821, 15853).
(b) Components.--In conducting the study, the Secretary
shall--
(1) develop a plan for how the rebate programs would be
carried out if the programs were funded; and
(2) determine the minimum amount of funding the program
would need to receive in order to accomplish the goals of the
programs.
SEC. 413. ENERGY CODE IMPROVEMENTS APPLICABLE TO MANUFACTURED
HOUSING.
(a) Establishment of Standards.--
(1) In general.--Not later than 4 years after the date of
enactment of this Act, the Secretary shall by regulation
establish standards for energy efficiency in manufactured
housing.
(2) Notice, comment, and consultation.--Standards described
in paragraph (1) shall be established after--
(A) notice and an opportunity for comment by manufacturers
of manufactured housing and other interested parties; and
(B) consultation with the Secretary of Housing and Urban
Development, who may
[[Page H14347]]
seek further counsel from the Manufactured Housing Consensus
Committee.
(b) Requirements.--
(1) International energy conservation code.--The energy
conservation standards established under this section shall
be based on the most recent version of the International
Energy Conservation Code (including supplements), except in
cases in which the Secretary finds that the code is not cost-
effective, or a more stringent standard would be more cost-
effective, based on the impact of the code on the purchase
price of manufactured housing and on total life-cycle
construction and operating costs.
(2) Considerations.--The energy conservation standards
established under this section may--
(A) take into consideration the design and factory
construction techniques of manufactured homes;
(B) be based on the climate zones established by the
Department of Housing and Urban Development rather than the
climate zones under the International Energy Conservation
Code; and
(C) provide for alternative practices that result in net
estimated energy consumption equal to or less than the
specified standards.
(3) Updating.--The energy conservation standards
established under this section shall be updated not later
than--
(A) 1 year after the date of enactment of this Act; and
(B) 1 year after any revision to the International Energy
Conservation Code.
(c) Enforcement.--Any manufacturer of manufactured housing
that violates a provision of the regulations under subsection
(a) is liable to the United States for a civil penalty in an
amount not exceeding 1 percent of the manufacturer's retail
list price of the manufactured housing.
Subtitle B--High-Performance Commercial Buildings
SEC. 421. COMMERCIAL HIGH-PERFORMANCE GREEN BUILDINGS.
(a) Director of Commercial High-Performance Green
Buildings.--Notwithstanding any other provision of law, the
Secretary, acting through the Assistant Secretary of Energy
Efficiency and Renewable Energy, shall appoint a Director of
Commercial High-Performance Green Buildings to a position in
the career-reserved Senior Executive service, with the
principal responsibility to--
(1) establish and manage the Office of Commercial High-
Performance Green Buildings; and
(2) carry out other duties as required under this subtitle.
(b) Qualifications.--The Commercial Director shall be an
individual, who by reason of professional background and
experience, is specifically qualified to carry out the duties
required under this subtitle.
(c) Duties.--The Commercial Director shall, with respect to
development of high-performance green buildings and zero-
energy commercial buildings nationwide--
(1) coordinate the activities of the Office of Commercial
High-Performance Green Buildings with the activities of the
Office of Federal High-Performance Green Buildings;
(2) develop the legal predicates and agreements for,
negotiate, and establish one or more public-private
partnerships with the Consortium, members of the Consortium,
and other capable parties meeting the qualifications of the
Consortium, to further such development;
(3) represent the public and the Department in negotiating
and performing in accord with such public-private
partnerships;
(4) use appropriated funds in an effective manner to
encourage the maximum investment of private funds to achieve
such development;
(5) promote research and development of high performance
green buildings, consistent with section 423; and
(6) jointly establish with the Federal Director a national
high-performance green building clearinghouse in accordance
with section 423(1), which shall provide high-performance
green building information and disseminate research results
through--
(A) outreach;
(B) education; and
(C) the provision of technical assistance.
(d) Reporting.--The Commercial Director shall report
directly to the Assistant Secretary for Energy Efficiency and
Renewable Energy, or to other senior officials in a way that
facilitates the integrated program of this subtitle for both
energy efficiency and renewable energy and both technology
development and technology deployment.
(e) Coordination.--The Commercial Director shall ensure
full coordination of high-performance green building
information and activities, including activities under this
subtitle, within the Federal Government by working with the
General Services Administration and all relevant agencies,
including, at a minimum--
(1) the Environmental Protection Agency;
(2) the Office of the Federal Environmental Executive;
(3) the Office of Federal Procurement Policy;
(4) the Department of Energy, particularly the Federal
Energy Management Program;
(5) the Department of Health and Human Services;
(6) the Department of Housing and Urban Development;
(7) the Department of Defense;
(8) the National Institute of Standards and Technology;
(9) the Department of Transportation;
(10) the Office of Science Technology and Policy; and
(11) such nonprofit high-performance green building rating
and analysis entities as the Commercial Director determines
can offer support, expertise, and review services.
(f) High-Performance Green Building Partnership
Consortium.--
(1) Recognition.--Not later than 90 days after the date of
enactment of this Act, the Commercial Director shall formally
recognize one or more groups that qualify as a high-
performance green building partnership consortium.
(2) Representation to qualify.--To qualify under this
section, any consortium shall include representation from--
(A) the design professions, including national associations
of architects and of professional engineers;
(B) the development, construction, financial, and real
estate industries;
(C) building owners and operators from the public and
private sectors;
(D) academic and research organizations, including at least
one national laboratory with extensive commercial building
energy expertise;
(E) building code agencies and organizations, including a
model energy code-setting organization;
(F) independent high-performance green building
associations or councils;
(G) experts in indoor air quality and environmental
factors;
(H) experts in intelligent buildings and integrated
building information systems;
(I) utility energy efficiency programs;
(J) manufacturers and providers of equipment and techniques
used in high performance green buildings;
(K) public transportation industry experts; and
(L) nongovernmental energy efficiency organizations.
(3) Funding.--The Secretary may make payments to the
Consortium pursuant to the terms of a public-private
partnership for such activities of the Consortium undertaken
under such a partnership as described in this subtitle
directly to the Consortium or through one or more of its
members.
(g) Report.--Not later than 2 years after the date of
enactment of this Act, and biennially thereafter, the
Commercial Director, in consultation with the Consortium,
shall submit to Congress a report that--
(1) describes the status of the high-performance green
building initiatives under this subtitle and other Federal
programs affecting commercial high-performance green
buildings in effect as of the date of the report, including--
(A) the extent to which the programs are being carried out
in accordance with this subtitle; and
(B) the status of funding requests and appropriations for
those programs; and
(2) summarizes and highlights development, at the State and
local level, of high-performance green building initiatives,
including executive orders, policies, or laws adopted
promoting high-performance green building (including the
status of implementation of those initiatives).
SEC. 422. ZERO NET ENERGY COMMERCIAL BUILDINGS INITIATIVE.
(a) Definitions.--In this section:
(1) Consortium.--The term ``consortium'' means a High-
Performance Green Building Consortium selected by the
Commercial Director.
(2) Initiative.--The term ``initiative'' means the Zero-
Net-Energy Commercial Buildings Initiative established under
subsection (b)(1).
(3) Zero-net-energy commercial building.--The term ``zero-
net-energy commercial building'' means a high-performance
commercial building that is designed, constructed, and
operated--
(A) to require a greatly reduced quantity of energy to
operate;
(B) to meet the balance of energy needs from sources of
energy that do not produce greenhouse gases;
(C) in a manner that will result in no net emissions of
greenhouse gases; and
(D) to be economically viable.
(b) Establishment.--
(1) In general.--The Commercial Director shall establish an
initiative, to be known as the ``Zero-Net-Energy Commercial
Buildings Initiative''--
(A) to reduce the quantity of energy consumed by commercial
buildings located in the United States; and
(B) to achieve the development of zero net energy
commercial buildings in the United States.
(2) Consortium.--
(A) In general.--Not later than 180 days after the date of
enactment of this Act, the Commercial Director shall
competitively select, and enter into an agreement with, a
consortium to develop and carry out the initiative.
(B) Agreements.--In entering into an agreement with a
consortium under subparagraph (A), the Commercial Director
shall use the authority described in section 646(g) of the
Department of Energy Organization Act (42 U.S.C. 7256(g)), to
the maximum extent practicable.
(c) Goal of Initiative.--The goal of the initiative shall
be to develop and disseminate technologies, practices, and
policies for the development and establishment of zero net
energy commercial buildings for--
(1) any commercial building newly constructed in the United
States by 2030;
[[Page H14348]]
(2) 50 percent of the commercial building stock of the
United States by 2040; and
(3) all commercial buildings in the United States by 2050.
(d) Components.--In carrying out the initiative, the
Commercial Director, in consultation with the consortium,
may--
(1) conduct research and development on building science,
design, materials, components, equipment and controls,
operation and other practices, integration, energy use
measurement, and benchmarking;
(2) conduct pilot programs and demonstration projects to
evaluate replicable approaches to achieving energy efficient
commercial buildings for a variety of building types in a
variety of climate zones;
(3) conduct deployment, dissemination, and technical
assistance activities to encourage widespread adoption of
technologies, practices, and policies to achieve energy
efficient commercial buildings;
(4) conduct other research, development, demonstration, and
deployment activities necessary to achieve each goal of the
initiative, as determined by the Commercial Director, in
consultation with the consortium;
(5) develop training materials and courses for building
professionals and trades on achieving cost-effective high-
performance energy efficient buildings;
(6) develop and disseminate public education materials to
share information on the benefits and cost-effectiveness of
high-performance energy efficient buildings;
(7) support code-setting organizations and State and local
governments in developing minimum performance standards in
building codes that recognize the ready availability of many
technologies utilized in high-performance energy efficient
buildings;
(8) develop strategies for overcoming the split incentives
between builders and purchasers, and landlords and tenants,
to ensure that energy efficiency and high-performance
investments are made that are cost-effective on a lifecycle
basis; and
(9) develop improved means of measurement and verification
of energy savings and performance for public dissemination.
(e) Cost Sharing.--In carrying out this section, the
Commercial Director shall require cost sharing in accordance
with section 988 of the Energy Policy Act of 2005 (42 U.S.C.
16352).
(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $20,000,000 for fiscal year 2008;
(2) $50,000,000 for each of fiscal years 2009 and 2010;
(3) $100,000,000 for each of fiscal years 2011 and 2012;
and
(4) $200,000,000 for each of fiscal years 2013 through
2018.
SEC. 423. PUBLIC OUTREACH.
The Commercial Director and Federal Director, in
coordination with the Consortium, shall carry out public
outreach to inform individuals and entities of the
information and services available Governmentwide by--
(1) establishing and maintaining a national high-
performance green building clearinghouse, including on the
internet, that--
(A) identifies existing similar efforts and coordinates
activities of common interest; and
(B) provides information relating to high-performance green
buildings, including hyperlinks to internet sites that
describe the activities, information, and resources of--
(i) the Federal Government;
(ii) State and local governments;
(iii) the private sector (including nongovernmental and
nonprofit entities and organizations); and
(iv) international organizations;
(2) identifying and recommending educational resources for
implementing high-performance green building practices,
including security and emergency benefits and practices;
(3) providing access to technical assistance, tools, and
resources for constructing high-performance green buildings,
particularly tools to conduct life-cycle costing and life-
cycle assessment;
(4) providing information on application processes for
certifying a high-performance green building, including
certification and commissioning;
(5) providing to the public, through the Commercial
Director, technical and research information or other forms
of assistance or advice that would be useful in planning and
constructing high-performance green buildings;
(6) using such additional methods as are determined by the
Commercial Director to be appropriate to conduct public
outreach;
(7) surveying existing research and studies relating to
high-performance green buildings; and
(8) coordinating activities of common interest.
Subtitle C--High-Performance Federal Buildings
SEC. 431. ENERGY REDUCTION GOALS FOR FEDERAL BUILDINGS.
Section 543(a)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(a)(1)) is amended by striking the
table and inserting the following:
``Fiscal Year Percentage reduction
2006...............................................................2
2007...............................................................4
2008...............................................................9
2009..............................................................12
2010..............................................................15
2011..............................................................18
2012..............................................................21
2013..............................................................24
2014..............................................................27
2015............................................................30.''
SEC. 432. MANAGEMENT OF ENERGY AND WATER EFFICIENCY IN
FEDERAL BUILDINGS.
Section 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253) is amended by adding at the end the
following:
``(f) Use of Energy and Water Efficiency Measures in
Federal Buildings.--
``(1) Definitions.--In this subsection:
``(A) Commissioning.--The term `commissioning', with
respect to a facility, means a systematic process--
``(i) of ensuring, using appropriate verification and
documentation, during the period beginning on the initial day
of the design phase of the facility and ending not earlier
than 1 year after the date of completion of construction of
the facility, that all facility systems perform interactively
in accordance with--
``(I) the design documentation and intent of the facility;
and
``(II) the operational needs of the owner of the facility,
including preparation of operation personnel; and
``(ii) the primary goal of which is to ensure fully
functional systems that can be properly operated and
maintained during the useful life of the facility.
``(B) Energy manager.--
``(i) In general.--The term `energy manager', with respect
to a facility, means the individual who is responsible for--
``(I) ensuring compliance with this subsection by the
facility; and
``(II) reducing energy use at the facility.
``(ii) Inclusions.--The term `energy manager' may include--
``(I) a contractor of a facility;
``(II) a part-time employee of a facility; and
``(III) an individual who is responsible for multiple
facilities.
``(C) Facility.--
``(i) In general.--The term `facility' means any building,
installation, structure, or other property (including any
applicable fixtures) owned or operated by, or constructed or
manufactured and leased to, the Federal Government.
``(ii) Inclusions.--The term `facility' includes--
``(I) a group of facilities at a single location or
multiple locations managed as an integrated operation; and
``(II) contractor-operated facilities owned by the Federal
Government.
``(iii) Exclusions.--The term `facility' does not include
any land or site for which the cost of utilities is not paid
by the Federal Government.
``(D) Life cycle cost-effective.--The term `life cycle
cost-effective', with respect to a measure, means a measure
the estimated savings of which exceed the estimated costs
over the lifespan of the measure, as determined in accordance
with section 544.
``(E) Payback period.--
``(i) In general.--Subject to clause (ii), the term
`payback period', with respect to a measure, means a value
equal to the quotient obtained by dividing--
``(I) the estimated initial implementation cost of the
measure (other than financing costs); by
``(II) the annual cost savings resulting from the measure,
including--
``(aa) net savings in estimated energy and water costs; and
``(bb) operations, maintenance, repair, replacement, and
other direct costs.
``(ii) Modifications and exceptions.--The Secretary, in
guidelines issued pursuant to paragraph (6), may make such
modifications and provide such exceptions to the calculation
of the payback period of a measure as the Secretary
determines to be appropriate to achieve the purposes of this
Act.
``(F) Recommissioning.--The term `recommissioning' means a
process--
``(i) of commissioning a facility or system beyond the
project development and warranty phases of the facility or
system; and
``(ii) the primary goal of which is to ensure optimum
performance of a facility, in accordance with design or
current operating needs, over the useful life of the
facility, while meeting building occupancy requirements.
``(G) Retrocommissioning.--The term `retrocommissioning'
means a process of commissioning a facility or system that
was not commissioned at time of construction of the facility
or system.
``(2) Facility energy managers.--
``(A) In general.--Each Federal agency shall designate an
energy manager responsible for implementing this subsection
and reducing energy use at each facility that meets criteria
under subparagraph (B).
``(B) Covered facilities.--The Secretary shall develop
criteria, after consultation with affected agencies, energy
efficiency advocates, and energy and utility service
providers, that cover, at a minimum, Federal facilities,
including central utility plants and distribution systems and
other energy intensive operations, that constitute at least
75 percent of facility energy use at each agency.
``(3) Energy and water evaluations.--
``(A) Evaluations.--Effective beginning on the date that is
180 days after the date of enactment of this subsection and
annually thereafter, energy managers shall complete, for each
calendar year, a comprehensive energy and water evaluation
for approximately 25 percent of the facilities of each agency
that meet the criteria under paragraph (2)(B)
[[Page H14349]]
in a manner that ensures that an evaluation of each such
facility is completed at least once every 4 years.
``(B) Recommissioning and retrocommissioning.--As part of
the evaluation under subparagraph (A), the energy manager
shall identify and assess recommissioning measures (or, if
the facility has never been commissioned, retrocommissioning
measures) for each such facility.
``(4) Implementation of identified energy and water
efficiency measures.--Not later than 2 years after the
completion of each evaluation under paragraph (3), each
energy manager may--
``(A) implement any energy- or water-saving measure that
the Federal agency identified in the evaluation conducted
under paragraph (3) that is life cycle cost-effective; and
``(B) bundle individual measures of varying paybacks
together into combined projects.
``(5) Follow-up on implemented measures.--For each measure
implemented under paragraph (4), each energy manager shall
ensure that--
``(A) equipment, including building and equipment controls,
is fully commissioned at acceptance to be operating at design
specifications;
``(B) a plan for appropriate operations, maintenance, and
repair of the equipment is in place at acceptance and is
followed;
``(C) equipment and system performance is measured during
its entire life to ensure proper operations, maintenance, and
repair; and
``(D) energy and water savings are measured and verified.
``(6) Guidelines.--
``(A) In general.--The Secretary shall issue guidelines and
necessary criteria that each Federal agency shall follow for
implementation of--
``(i) paragraphs (2) and (3) not later than 180 days after
the date of enactment of this subsection; and
``(ii) paragraphs (4) and (5) not later than 1 year after
the date of enactment of this subsection.
``(B) Relationship to funding source.--The guidelines
issued by the Secretary under subparagraph (A) shall be
appropriate and uniform for measures funded with each type of
funding made available under paragraph (10), but may
distinguish between different types of measures project size,
and other criteria the Secretary determines are relevant.
``(7) Web-based certification.--
``(A) In general.--For each facility that meets the
criteria established by the Secretary under paragraph (2)(B),
the energy manager shall use the web-based tracking system
under subparagraph (B) to certify compliance with the
requirements for--
``(i) energy and water evaluations under paragraph (3);
``(ii) implementation of identified energy and water
measures under paragraph (4); and
``(iii) follow-up on implemented measures under paragraph
(5).
``(B) Deployment.--
``(i) In general.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall develop and
deploy a web-based tracking system required under this
paragraph in a manner that tracks, at a minimum--
``(I) the covered facilities;
``(II) the status of meeting the requirements specified in
subparagraph (A);
``(III) the estimated cost and savings for measures
required to be implemented in a facility;
``(IV) the measured savings and persistence of savings for
implemented measures; and
``(V) the benchmarking information disclosed under
paragraph (8)(C).
``(ii) Ease of compliance.--The Secretary shall ensure that
energy manager compliance with the requirements in this
paragraph, to the maximum extent practicable--
``(I) can be accomplished with the use of streamlined
procedures and templates that minimize the time demands on
Federal employees; and
``(II) is coordinated with other applicable energy
reporting requirements.
``(C) Availability.--
``(i) In general.--Subject to clause (ii), the Secretary
shall make the web-based tracking system required under this
paragraph available to Congress, other Federal agencies, and
the public through the Internet.
``(ii) Exemptions.--At the request of a Federal agency, the
Secretary may exempt specific data for specific facilities
from disclosure under clause (i) for national security
purposes.
``(8) Benchmarking of federal facilities.--
``(A) In general.--The energy manager shall enter energy
use data for each metered building that is (or is a part of)
a facility that meets the criteria established by the
Secretary under paragraph (2)(B) into a building energy use
benchmarking system, such as the Energy Star Portfolio
Manager.
``(B) System and guidance.--Not later than 1 year after the
date of enactment of this subsection, the Secretary shall--
``(i) select or develop the building energy use
benchmarking system required under this paragraph for each
type of building; and
``(ii) issue guidance for use of the system.
``(C) Public disclosure.--Each energy manager shall post
the information entered into, or generated by, a benchmarking
system under this subsections, on the web-based tracking
system under paragraph (7)(B). The energy manager shall
update such information each year, and shall include in such
reporting previous years' information to allow changes in
building performance to be tracked over time.
``(9) Federal agency scorecards.--
``(A) In general.--The Director of the Office of Management
and Budget shall issue semiannual scorecards for energy
management activities carried out by each Federal agency that
includes--
``(i) summaries of the status of implementing the various
requirements of the agency and its energy managers under this
subsection; and
``(ii) any other means of measuring performance that the
Director considers appropriate.
``(B) Availability.--The Director shall make the scorecards
required under this paragraph available to Congress, other
Federal agencies, and the public through the Internet.
``(10) Funding and implementation.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection.
``(B) Funding options.--
``(i) In general.--To carry out this subsection, a Federal
agency may use any combination of--
``(I) appropriated funds made available under subparagraph
(A); and
``(II) private financing otherwise authorized under Federal
law, including financing available through energy savings
performance contracts or utility energy service contracts.
``(ii) Combined funding for same measure.--A Federal agency
may use any combination of appropriated funds and private
financing described in clause (i) to carry out the same
measure under this subsection.
``(C) Implementation.--Each Federal agency may implement
the requirements under this subsection itself or may contract
out performance of some or all of the requirements.
``(11) Rule of construction.--This subsection shall not be
construed to require or to obviate any contractor savings
guarantees.''.
SEC. 433. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE
STANDARDS.
(a) Standards.--Section 305(a)(3) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)) is
amended by adding at the end the following new subparagraph:
``(D) Not later than 1 year after the date of enactment of
the Energy Independence and Security Act of 2007, the
Secretary shall establish, by rule, revised Federal building
energy efficiency performance standards that require that:
``(i) For new Federal buildings and Federal buildings
undergoing major renovations, with respect to which the
Administrator of General Services is required to transmit a
prospectus to Congress under section 3307 of title 40, United
States Code, in the case of public buildings (as defined in
section 3301 of title 40, United States Code), or of at least
$2,500,000 in costs adjusted annually for inflation for other
buildings:
``(I) The buildings shall be designed so that the fossil
fuel-generated energy consumption of the buildings is
reduced, as compared with such energy consumption by a
similar building in fiscal year 2003 (as measured by
Commercial Buildings Energy Consumption Survey or Residential
Energy Consumption Survey data from the Energy Information
Agency), by the percentage specified in the following table:
``Fiscal Year Percentage Reduction
2010..............................................................55
2015..............................................................65
2020..............................................................80
2025..............................................................90
2030..............................................................100
``(II) Upon petition by an agency subject to this
subparagraph, the Secretary may adjust the applicable numeric
requirement under subclause (I) downward with respect to a
specific building, if the head of the agency designing the
building certifies in writing that meeting such requirement
would be technically impracticable in light of the agency's
specified functional needs for that building and the
Secretary concurs with the agency's conclusion. This
subclause shall not apply to the General Services
Administration.
``(III) Sustainable design principles shall be applied to
the siting, design, and construction of such buildings. Not
later than 90 days after the date of enactment of the Energy
Independence and Security Act of 2007, the Secretary, after
reviewing the findings of the Federal Director under section
436(h) of that Act, in consultation with the Administrator of
General Services, and in consultation with the Secretary of
Defense for considerations relating to those facilities under
the custody and control of the Department of Defense, shall
identify a certification system and level for green buildings
that the Secretary determines to be the most likely to
encourage a comprehensive and environmentally-sound approach
to certification of green buildings. The identification of
the certification system and level shall be based on a review
of the Federal Director's findings under section 436(h) of
the Energy Independence and Security Act of 2007 and the
criteria specified in clause (iii), shall identify the
highest level the Secretary determines is appropriate above
the minimum level required for certification under the system
selected, and shall achieve results at least comparable to
the system used by and highest level referenced by the
General Services
[[Page H14350]]
Administration as of the date of enactment of the Energy
Independence and Security Act of 2007. Within 90 days of the
completion of each study required by clause (iv), the
Secretary, in consultation with the Administrator of General
Services, and in consultation with the Secretary of Defense
for considerations relating to those facilities under the
custody and control of the Department of Defense, shall
review and update the certification system and level, taking
into account the conclusions of such study.
``(ii) In establishing criteria for identifying major
renovations that are subject to the requirements of this
subparagraph, the Secretary shall take into account the
scope, degree, and types of renovations that are likely to
provide significant opportunities for substantial
improvements in energy efficiency.
``(iii) In identifying the green building certification
system and level, the Secretary shall take into
consideration--
``(I) the ability and availability of assessors and
auditors to independently verify the criteria and measurement
of metrics at the scale necessary to implement this
subparagraph;
``(II) the ability of the applicable certification
organization to collect and reflect public comment;
``(III) the ability of the standard to be developed and
revised through a consensus-based process;
``(IV) an evaluation of the robustness of the criteria for
a high-performance green building, which shall give credit
for promoting--
``(aa) efficient and sustainable use of water, energy, and
other natural resources;
``(bb) use of renewable energy sources;
``(cc) improved indoor environmental quality through
enhanced indoor air quality, thermal comfort, acoustics, day
lighting, pollutant source control, and use of low-emission
materials and building system controls; and
``(dd) such other criteria as the Secretary determines to
be appropriate; and
``(V) national recognition within the building industry.
``(iv) At least once every five years, and in accordance
with section 436 of the Energy Independence and Security Act
of 2007, the Administrator of General Services shall conduct
a study to evaluate and compare available third-party green
building certification systems and levels, taking into
account the criteria listed in clause (iii).
``(v) The Secretary may by rule allow Federal agencies to
develop internal certification processes, using certified
professionals, in lieu of certification by the certification
entity identified under clause (i)(III). The Secretary shall
include in any such rule guidelines to ensure that the
certification process results in buildings meeting the
applicable certification system and level identified under
clause (i)(III). An agency employing an internal
certification process must continue to obtain external
certification by the certification entity identified under
clause (i)(III) for at least 5 percent of the total number of
buildings certified annually by the agency.
``(vi) With respect to privatized military housing, the
Secretary of Defense, after consultation with the Secretary
may, through rulemaking, develop alternative criteria to
those established by subclauses (I) and (III) of clause (i)
that achieve an equivalent result in terms of energy savings,
sustainable design, and green building performance.
``(vii) In addition to any use of water conservation
technologies otherwise required by this section, water
conservation technologies shall be applied to the extent that
the technologies are life-cycle cost-effective.''.
(b) Definitions.--Section 303(6) of the Energy Conservation
and Production Act (42 U.S.C. 6832(6)) is amended by striking
``which is not legally subject to State or local building
codes or similar requirements.'' and inserting ``. Such term
shall include buildings built for the purpose of being leased
by a Federal agency, and privatized military housing.''.
(c) Revision of Federal Acquisition Regulation.--Not later
than 2 years after the date of the enactment of this Act, the
Federal Acquisition Regulation shall be revised to require
Federal officers and employees to comply with this section
and the amendments made by this section in the acquisition,
construction, or major renovation of any facility. The
members of the Federal Acquisition Regulatory Council
(established under section 25 of the Office of Federal
Procurement Policy Act (41 U.S.C. 421)) shall consult with
the Federal Director and the Commercial Director before
promulgating regulations to carry out this subsection.
(d) Guidance.--Not later than 90 days after the date of
promulgation of the revised regulations under subsection (c),
the Administrator for Federal Procurement Policy shall issue
guidance to all Federal procurement executives providing
direction and instructions to renegotiate the design of
proposed facilities and major renovations for existing
facilities to incorporate improvements that are consistent
with this section.
SEC. 434. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY .
(a) Large Capital Energy Investments.--Section 543 of the
National Energy Conservation Policy Act (42 U.S.C. 8253) is
amended by adding at the end the following:
``(f) Large Capital Energy Investments.--
``(1) In general.--Each Federal agency shall ensure that
any large capital energy investment in an existing building
that is not a major renovation but involves replacement of
installed equipment (such as heating and cooling systems), or
involves renovation, rehabilitation, expansion, or remodeling
of existing space, employs the most energy efficient designs,
systems, equipment, and controls that are life-cycle cost
effective.
``(2) Process for review of investment decisions.--Not
later than 180 days after the date of enactment of this
subsection, each Federal agency shall--
``(A) develop a process for reviewing each decision made on
a large capital energy investment described in paragraph (1)
to ensure that the requirements of this subsection are met;
and
``(B) report to the Director of the Office of Management
and Budget on the process established.
``(3) Compliance report.--Not later than 1 year after the
date of enactment of this subsection, the Director of the
Office of Management and Budget shall evaluate and report to
Congress on the compliance of each agency with this
subsection.''.
(b) Metering.--Section 543(e)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(e)(1)) is amended by
inserting after the second sentence the following: ``Not
later than October 1, 2016, each agency shall provide for
equivalent metering of natural gas and steam, in accordance
with guidelines established by the Secretary under paragraph
(2).''.
SEC. 435. LEASING.
(a) In General.--Except as provided in subsection (b),
effective beginning on the date that is 3 years after the
date of enactment of this Act, no Federal agency shall enter
into a contract to lease space in a building that has not
earned the Energy Star label in the most recent year.
(b) Exception.--
(1) Application.--This subsection applies if--
(A) no space is available in a building described in
subsection (a) that meets the functional requirements of an
agency, including locational needs;
(B) the agency proposes to remain in a building that the
agency has occupied previously;
(C) the agency proposes to lease a building of historical,
architectural, or cultural significance (as defined in
section 3306(a)(4) of title 40, United States Code) or space
in such a building; or
(D) the lease is for not more than 10,000 gross square feet
of space.
(2) Buildings without energy star label.--If 1 of the
conditions described in paragraph (2) is met, the agency may
enter into a contract to lease space in a building that has
not earned the Energy Star label in the most recent year if
the lease contract includes provisions requiring that, prior
to occupancy or, in the case of a contract described in
paragraph (1)(B), not later than 1 year after signing the
contract, the space will be renovated for all energy
efficiency and conservation improvements that would be cost
effective over the life of the lease, including improvements
in lighting, windows, and heating, ventilation, and air
conditioning systems.
(c) Revision of Federal Acquisition Regulation.--
(1) In general.--Not later than 3 years after the date of
the enactment of this Act, the Federal Acquisition Regulation
described in section 6(a) of the Office of Federal
Procurement Policy Act (41 U.S.C. 405(a)) shall be revised to
require Federal officers and employees to comply with this
section in leasing buildings.
(2) Consultation.--The members of the Federal Acquisition
Regulatory Council established under section 25 of the Office
of Federal Procurement Policy Act (41 U.S.C. 421)) shall
consult with the Federal Director and the Commercial Director
before promulgating regulations to carry out this subsection.
SEC. 436. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.
(a) Establishment of Office.--Not later than 60 days after
the date of enactment of this Act, the Administrator shall
establish within the General Services Administration an
Office of Federal High-Performance Green Buildings, and
appoint an individual to serve as Federal Director in, a
position in the career-reserved Senior Executive service,
to--
(1) establish and manage the Office of Federal High-
Performance Green Buildings; and
(2) carry out other duties as required under this subtitle.
(b) Compensation.--The compensation of the Federal Director
shall not exceed the maximum rate of basic pay for the Senior
Executive Service under section 5382 of title 5, United
States Code, including any applicable locality-based
comparability payment that may be authorized under section
5304(h)(2)(C) of that title.
(c) Duties.--The Federal Director shall--
(1) coordinate the activities of the Office of Federal
High-Performance Green Buildings with the activities of the
Office of Commercial High-Performance Green Buildings, and
the Secretary, in accordance with section 305(a)(3)(D) of the
Energy Conservation and Production Act (42 U.S.C.
6834(a)(3)(D));
(2) ensure full coordination of high-performance green
building information and activities within the General
Services Administration and all relevant agencies, including,
at a minimum--
(A) the Environmental Protection Agency;
[[Page H14351]]
(B) the Office of the Federal Environmental Executive;
(C) the Office of Federal Procurement Policy;
(D) the Department of Energy;
(E) the Department of Health and Human Services;
(F) the Department of Defense;
(G) the Department of Transportation;
(H) the National Institute of Standards and Technology; and
(I) the Office of Science and Technology Policy;
(3) establish a senior-level Federal Green Building
Advisory Committee under section 474, which shall provide
advice and recommendations in accordance with that section
and subsection (d);
(4) identify and every 5 years reassess improved or higher
rating standards recommended by the Advisory Committee;
(5) ensure full coordination, dissemination of information
regarding, and promotion of the results of research and
development information relating to Federal high-performance
green building initiatives;
(6) identify and develop Federal high-performance green
building standards for all types of Federal facilities,
consistent with the requirements of this subtitle and section
305(a)(3)(D) of the Energy Conservation and Production Act
(42 U.S.C. 6834(a)(3)(D));
(7) establish green practices that can be used throughout
the life of a Federal facility;
(8) review and analyze current Federal budget practices and
life-cycle costing issues, and make recommendations to
Congress, in accordance with subsection (d); and
(9) identify opportunities to demonstrate innovative and
emerging green building technologies and concepts.
(d) Additional Duties.--The Federal Director, in
consultation with the Commercial Director and the Advisory
Committee, and consistent with the requirements of section
305(a)(3)(D) of the Energy Conservation and Production Act
(42 U.S.C. 6834(a)(3)(D)) shall--
(1) identify, review, and analyze current budget and
contracting practices that affect achievement of high-
performance green buildings, including the identification of
barriers to high-performance green building life-cycle
costing and budgetary issues;
(2) develop guidance and conduct training sessions with
budget specialists and contracting personnel from Federal
agencies and budget examiners to apply life-cycle cost
criteria to actual projects;
(3) identify tools to aid life-cycle cost decisionmaking;
and
(4) explore the feasibility of incorporating the benefits
of high-performance green buildings, such as security
benefits, into a cost-budget analysis to aid in life-cycle
costing for budget and decisionmaking processes.
(e) Incentives.--Within 90 days after the date of enactment
of this Act, the Federal Director shall identify incentives
to encourage the expedited use of high-performance green
buildings and related technology in the operations of the
Federal Government, in accordance with the requirements of
section 305(a)(3)(D) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(D)), including through--
(1) the provision of recognition awards; and
(2) the maximum feasible retention of financial savings in
the annual budgets of Federal agencies for use in reinvesting
in future high-performance green building initiatives.
(f) Report.--Not later than 2 years after the date of
enactment of this Act, and biennially thereafter, the Federal
Director, in consultation with the Secretary, shall submit to
Congress a report that--
(1) describes the status of compliance with this subtitle,
the requirements of section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)),
and other Federal high-performance green building initiatives
in effect as of the date of the report, including--
(A) the extent to which the programs are being carried out
in accordance with this subtitle and the requirements of
section 305(a)(3)(D) of that Act; and
(B) the status of funding requests and appropriations for
those programs;
(2) identifies within the planning, budgeting, and
construction process all types of Federal facility procedures
that may affect the certification of new and existing Federal
facilities as high-performance green buildings under the
provisions of section 305(a)(3)(D) of that Act and the
criteria established in subsection (h);
(3) identifies inconsistencies, as reported to the Advisory
Committee, in Federal law with respect to product acquisition
guidelines and high-performance product guidelines;
(4) recommends language for uniform standards for use by
Federal agencies in environmentally responsible acquisition;
(5) in coordination with the Office of Management and
Budget, reviews the budget process for capital programs with
respect to alternatives for--
(A) restructuring of budgets to require the use of complete
energy and environmental cost accounting;
(B) using operations expenditures in budget-related
decisions while simultaneously incorporating productivity and
health measures (as those measures can be quantified by the
Office of Federal High-Performance Green Buildings, with the
assistance of universities and national laboratories);
(C) streamlining measures for permitting Federal agencies
to retain all identified savings accrued as a result of the
use of life-cycle costing for future high-performance green
building initiatives; and
(D) identifying short-term and long-term cost savings that
accrue from high-performance green buildings, including those
relating to health and productivity;
(6) identifies green, self-sustaining technologies to
address the operational needs of Federal facilities in times
of national security emergencies, natural disasters, or other
dire emergencies;
(7) summarizes and highlights development, at the State and
local level, of high-performance green building initiatives,
including executive orders, policies, or laws adopted
promoting high-performance green building (including the
status of implementation of those initiatives); and
(8) includes, for the 2-year period covered by the report,
recommendations to address each of the matters, and a plan
for implementation of each recommendation, described in
paragraphs (1) through (7).
(g) Implementation.--The Office of Federal High-Performance
Green Buildings shall carry out each plan for implementation
of recommendations under subsection (f)(8).
(h) Identification of Certification System.--
(1) In general.--For the purpose of this section, not later
than 60 days after the date of enactment of this Act, the
Federal Director shall identify and shall provide to the
Secretary pursuant to section 305(a)(3)(D) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), a
certification system that the Director determines to be the
most likely to encourage a comprehensive and environmentally-
sound approach to certification of green buildings.
(2) Basis.--The system identified under paragraph (1) shall
be based on--
(A) a study completed every 5 years and provided to the
Secretary pursuant to section 305(a)(3)(D) of that Act, which
shall be carried out by the Federal Director to compare and
evaluate standards;
(B) the ability and availability of assessors and auditors
to independently verify the criteria and measurement of
metrics at the scale necessary to implement this subtitle;
(C) the ability of the applicable standard-setting
organization to collect and reflect public comment;
(D) the ability of the standard to be developed and revised
through a consensus-based process;
(E) an evaluation of the robustness of the criteria for a
high performance green building, which shall give credit for
promoting--
(i) efficient and sustainable use of water, energy, and
other natural resources;
(ii) use of renewable energy sources;
(iii) improved indoor environmental quality through
enhanced indoor air quality, thermal comfort, acoustics, day
lighting, pollutant source control, and use of low-emission
materials and building system controls;
(iv) reduced impacts from transportation through building
location and site design that promote access by public
transportation; and
(v) such other criteria as the Federal Director determines
to be appropriate; and
(F) national recognition within the building industry.
SEC. 437. FEDERAL GREEN BUILDING PERFORMANCE.
(a) In General.--Not later than October 31 of each of the 2
fiscal years following the fiscal year in which this Act is
enacted, and at such times thereafter as the Comptroller
General of the United States determines to be appropriate,
the Comptroller General of the United States shall, with
respect to the fiscal years that have passed since the
preceding report--
(1) conduct an audit of the implementation of this
subtitle, section 305(a)(3)(D) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(D)), and section 435;
and
(2) submit to the Federal Director, the Advisory Committee,
the Administrator, and Congress a report describing the
results of the audit.
(b) Contents.--An audit under subsection (a) shall include
a review, with respect to the period covered by the report
under subsection (a)(2), of--
(1) budget, life-cycle costing, and contracting issues,
using best practices identified by the Comptroller General of
the United States and heads of other agencies in accordance
with section 436(d);
(2) the level of coordination among the Federal Director,
the Office of Management and Budget, the Department of
Energy, and relevant agencies;
(3) the performance of the Federal Director and other
agencies in carrying out the implementation plan;
(4) the design stage of high-performance green building
measures;
(5) high-performance building data that were collected and
reported to the Office; and
(6) such other matters as the Comptroller General of the
United States determines to be appropriate.
(c) Environmental Stewardship Scorecard.--The Federal
Director shall consult with the Advisory Committee to
enhance, and assist in the implementation of, the Office of
Management and Budget government efficiency reports and
scorecards under section 528 and the Environmental
Stewardship Scorecard announced at the White House summit on
Federal sustainable buildings in
[[Page H14352]]
January 2006, to measure the implementation by each Federal
agency of sustainable design and green building initiatives.
SEC. 438. STORM WATER RUNOFF REQUIREMENTS FOR FEDERAL
DEVELOPMENT PROJECTS.
The sponsor of any development or redevelopment project
involving a Federal facility with a footprint that exceeds
5,000 square feet shall use site planning, design,
construction, and maintenance strategies for the property to
maintain or restore, to the maximum extent technically
feasible, the predevelopment hydrology of the property with
regard to the temperature, rate, volume, and duration of
flow.
SEC. 439. COST-EFFECTIVE TECHNOLOGY ACCELERATION PROGRAM.
(a) Definition of Administrator.--In this section, the term
``Administrator'' means the Administrator of General
Services.
(b) Establishment.--
(1) In general.--The Administrator shall establish a
program to accelerate the use of more cost-effective
technologies and practices at GSA facilities.
(2) Requirements.--The program established under this
subsection shall--
(A) ensure centralized responsibility for the coordination
of cost reduction-related recommendations, practices, and
activities of all relevant Federal agencies;
(B) provide technical assistance and operational guidance
to applicable tenants to achieve the goal identified in
subsection (c)(2)(B)(ii);
(C) establish methods to track the success of Federal
departments and agencies with respect to that goal; and
(D) be fully coordinated with and no less stringent nor
less energy-conserving or water-conserving than required by
other provisions of this Act and other applicable law,
including sections 321 through 324, 431 through 438, 461, 511
through 518, and 523 through 525 and amendments made by those
sections.
(c) Accelerated Use of Technologies.--
(1) Review.--
(A) In general.--As part of the program under this section,
not later than 90 days after the date of enactment of this
Act, the Administrator shall conduct a review of--
(i) current use of cost-effective lighting technologies and
geothermal heat pumps in GSA facilities; and
(ii) the availability to managers of GSA facilities of
cost-effective lighting technologies and geothermal heat
pumps.
(B) Requirements.--The review under subparagraph (A)
shall--
(i) examine the use of cost-effective lighting
technologies, geothermal heat pumps, and other cost-effective
technologies and practices by Federal agencies in GSA
facilities; and
(ii) as prepared in consultation with the Administrator of
the Environmental Protection Agency, identify cost-effective
lighting technology and geothermal heat pump technology
standards that could be used for all types of GSA facilities.
(2) Replacement.--
(A) In general.--As part of the program under this section,
not later than 180 days after the date of enactment of this
Act, the Administrator shall establish, using available
appropriations and programs implementing sections 432 and 525
(and amendments made by those sections), a cost-effective
lighting technology and geothermal heat pump technology
acceleration program to achieve maximum feasible replacement
of existing lighting, heating, cooling technologies with
cost-effective lighting technologies and geothermal heat pump
technologies in each GSA facility. Such program shall fully
comply with the requirements of sections 321 through 324, 431
through 438, 461, 511 through 518, and 523 through 525 and
amendments made by those sections and any other provisions of
law, which shall be applicable to the extent that they are
more stringent or would achieve greater energy savings than
required by this section.
(B) Acceleration plan timetable.--
(i) In general.--To implement the program established under
subparagraph (A), not later than 1 year after the date of
enactment of this Act, the Administrator shall establish a
timetable of actions to comply with the requirements of this
section and sections 431 through 435, whichever achieves
greater energy savings most expeditiously, including
milestones for specific activities needed to replace existing
lighting, heating, cooling technologies with cost-effective
lighting technologies and geothermal heat pump technologies,
to the maximum extent feasible (including at the maximum rate
feasible), at each GSA facility.
(ii) Goal.--The goal of the timetable under clause (i)
shall be to complete, using available appropriations and
programs implementing sections 431 through 435 (and
amendments made by those sections), maximum feasible
replacement of existing lighting, heating, and cooling
technologies with cost-effective lighting technologies and
geothermal heat pump technologies consistent with the
requirements of this section and sections 431 through 435,
whichever achieves greater energy savings most expeditiously.
Notwithstanding any provision of this section, such program
shall fully comply with the requirements of the Act including
sections 321 through 324, 431 through 438, 461, 511 through
518, and 523 through 525 and amendments made by those
sections and other provisions of law, which shall be
applicable to the extent that they are more stringent or
would achieve greater energy or water savings than required
by this section.
(d) GSA Facility Technologies and Practices.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, and annually thereafter, the
Administrator shall--
(A) ensure that a manager responsible for implementing
section 432 and for accelerating the use of cost-effective
technologies and practices is designated for each GSA
facility; and
(B) submit to Congress a plan to comply with section 432,
this section, and other applicable provisions of this Act and
applicable law with respect to energy and water conservation
at GSA facilities.
(2) Measures.--The plan shall implement measures required
by such other provisions of law in accordance with those
provisions, and shall implement the measures required by this
section to the maximum extent feasible (including at the
maximum rate feasible) using available appropriations and
programs implementing sections 431 through 435 and 525 (and
amendments made by those sections), by not later than the
date that is 5 years after the date of enactment of this Act.
(3) Contents of plan.--The plan shall--
(A) with respect to cost-effective technologies and
practices--
(i) identify the specific activities needed to comply with
sections 431 through 435;
(ii) identify the specific activities needed to achieve at
least a 20-percent reduction in operational costs through the
application of cost-effective technologies and practices from
2003 levels at GSA facilities by not later than 5 years after
the date of enactment of this Act;
(iii) describe activities required and carried out to
estimate the funds necessary to achieve the reduction
described in clauses (i) and (ii);
(B) include an estimate of the funds necessary to carry out
this section;
(C) describe the status of the implementation of cost-
effective technologies and practices at GSA facilities,
including--
(i) the extent to which programs, including the program
established under subsection (b), are being carried out in
accordance with this subtitle; and
(ii) the status of funding requests and appropriations for
those programs;
(D) identify within the planning, budgeting, and
construction processes, all types of GSA facility-related
procedures that inhibit new and existing GSA facilities from
implementing cost-effective technologies;
(E) recommend language for uniform standards for use by
Federal agencies in implementing cost-effective technologies
and practices;
(F) in coordination with the Office of Management and
Budget, review the budget process for capital programs with
respect to alternatives for--
(i) implementing measures that will assure that Federal
agencies retain all identified savings accrued as a result of
the use of cost-effective technologies, consistent with
section 543(a)(1) of the National Energy Conservation Policy
Act (42 U.S.C. 8253(a)(1), and other applicable law; and
(ii) identifying short- and long-term cost savings that
accrue from the use of cost-effective technologies and
practices;
(G) with respect to cost-effective technologies and
practices, achieve substantial operational cost savings
through the application of the technologies; and
(H) include recommendations to address each of the matters,
and a plan for implementation of each recommendation,
described in subparagraphs (A) through (G).
(4) Administration.--Notwithstanding any provision of this
section, the program required under this section shall fully
comply with the requirements of sections 321 through 324, 431
through 438, 461, 511 through 518, and 523 through 525 and
amendments made by those sections, which shall be applicable
to the extent that they are more stringent or would achieve
greater energy or water savings than required by this
section.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section, to remain available until expended.
SEC. 440. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
sections 434 through 439 and 482 $4,000,000 for each of
fiscal years 2008 through 2012, to remain available until
expended.
SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS.
Section 544(a)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8254(a)(1)) is amended by striking
``25'' and inserting ``40''.
Subtitle D--Industrial Energy Efficiency
SEC. 451. INDUSTRIAL ENERGY EFFICIENCY.
(a) In General.--Title III of the Energy Policy and
Conservation Act (42 U.S.C. 6291 et seq.) is amended by
inserting after part D the following:
``PART E--INDUSTRIAL ENERGY EFFICIENCY
``SEC. 371. DEFINITIONS.
``In this part:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Combined heat and power.--The term `combined heat and
power system' means a facility that--
``(A) simultaneously and efficiently produces useful
thermal energy and electricity; and
[[Page H14353]]
``(B) recovers not less than 60 percent of the energy value
in the fuel (on a higher-heating-value basis) in the form of
useful thermal energy and electricity.
``(3) Net excess power.--The term `net excess power' means,
for any facility, recoverable waste energy recovered in the
form of electricity in quantities exceeding the total
consumption of electricity at the specific time of generation
on the site at which the facility is located.
``(4) Project.--The term `project' means a recoverable
waste energy project or a combined heat and power system
project.
``(5) Recoverable waste energy.--The term `recoverable
waste energy' means waste energy from which electricity or
useful thermal energy may be recovered through modification
of an existing facility or addition of a new facility.
``(6) Registry.--The term `Registry' means the Registry of
Recoverable Waste Energy Sources established under section
372(d).
``(7) Useful thermal energy.--The term `useful thermal
energy' means energy--
``(A) in the form of direct heat, steam, hot water, or
other thermal form that is used in production and beneficial
measures for heating, cooling, humidity control, process use,
or other valid thermal end-use energy requirements; and
``(B) for which fuel or electricity would otherwise be
consumed.
``(8) Waste energy.--The term `waste energy' means--
``(A) exhaust heat or flared gas from any industrial
process;
``(B) waste gas or industrial tail gas that would otherwise
be flared, incinerated, or vented;
``(C) a pressure drop in any gas, excluding any pressure
drop to a condenser that subsequently vents the resulting
heat; and
``(D) such other forms of waste energy as the Administrator
may determine.
``(9) Other terms.--The terms `electric utility',
`nonregulated electric utility', `State regulated electric
utility', and other terms have the meanings given those terms
in title I of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2611 et seq.).
``SEC. 372. SURVEY AND REGISTRY.
``(a) Recoverable Waste Energy Inventory Program.--
``(1) In general.--The Administrator, in cooperation with
the Secretary and State energy offices, shall establish a
recoverable waste energy inventory program.
``(2) Survey.--The program shall include--
``(A) an ongoing survey of all major industrial and large
commercial combustion sources in the United States (as
defined by the Administrator) and the sites at which the
sources are located; and
``(B) a review of each source for the quantity and quality
of waste energy produced at the source.
``(b) Criteria.--
``(1) In general.--Not later than 270 days after the date
of enactment of the Energy Independence and Security Act of
2007, the Administrator shall publish a rule for establishing
criteria for including sites in the Registry.
``(2) Inclusions.--The criteria shall include--
``(A) a requirement that, to be included in the Registry, a
project at the site shall be determined to be economically
feasible by virtue of offering a payback of invested costs
not later than 5 years after the date of first full project
operation (including incentives offered under this part);
``(B) standards to ensure that projects proposed for
inclusion in the Registry are not developed or used for the
primary purpose of making sales of excess electric power
under the regulatory provisions of this part; and
``(C) procedures for contesting the listing of any source
or site on the Registry by any State, utility, or other
interested person.
``(c) Technical Support.--On the request of the owner or
operator of a source or site included in the Registry, the
Secretary shall--
``(1) provide to owners or operators of combustion sources
technical support; and
``(2) offer partial funding (in an amount equal to not more
than \1/2\ of total costs) for feasibility studies to confirm
whether or not investment in recovery of waste energy or
combined heat and power at a source would offer a payback
period of 5 years or less.
``(d) Registry.--
``(1) Establishment.--
``(A) In general.--Not later than 1 year after the date of
enactment of the Energy Independence and Security Act of
2007, the Administrator shall establish a Registry of
Recoverable Waste Energy Sources, and sites on which the
sources are located, that meet the criteria established under
subsection (b).
``(B) Updates; availability.--The Administrator shall--
``(i) update the Registry on a regular basis; and
``(ii) make the Registry available to the public on the
website of the Environmental Protection Agency.
``(C) Contesting listing.--Any State, electric utility, or
other interested person may contest the listing of any source
or site by submitting a petition to the Administrator.
``(2) Contents.--
``(A) In general.--The Administrator shall register and
include on the Registry all sites meeting the criteria
established under subsection (b).
``(B) Quantity of recoverable waste energy.--The
Administrator shall--
``(i) calculate the total quantities of potentially
recoverable waste energy from sources at the sites,
nationally and by State; and
``(ii) make public--
``(I) the total quantities described in clause (i); and
``(II) information on the criteria pollutant and greenhouse
gas emissions savings that might be achieved with recovery of
the waste energy from all sources and sites listed on the
Registry.
``(3) Availability of information.--
``(A) In general.--The Administrator shall notify owners or
operators of recoverable waste energy sources and sites
listed on the Registry prior to publishing the listing.
``(B) Detailed quantitative information.--
``(i) In general.--Except as provided in clause (ii), the
owner or operator of a source at a site may elect to have
detailed quantitative information concerning the site not
made public by notifying the Administrator of the election.
``(ii) Limited availability.--The information shall be made
available to--
``(I) the applicable State energy office; and
``(II) any utility requested to support recovery of waste
energy from the source pursuant to the incentives provided
under section 374.
``(iii) State totals.--Information concerning the site
shall be included in the total quantity of recoverable waste
energy for a State unless there are fewer than 3 sites in the
State.
``(4) Removal of projects from registry.--
``(A) In general.--Subject to subparagraph (B), as a
project achieves successful recovery of waste energy, the
Administrator shall--
``(i) remove the related sites or sources from the
Registry; and
``(ii) designate the removed projects as eligible for
incentives under section 374.
``(B) Limitation.--No project shall be removed from the
Registry without the consent of the owner or operator of the
project if--
``(i) the owner or operator has submitted a petition under
section 374; and
``(ii) the petition has not been acted on or denied.
``(5) Ineligibility of certain sources.--The Administrator
shall not list any source constructed after the date of the
enactment of the Energy Independence and Security Act of 2007
on the Registry if the Administrator determines that the
source--
``(A) was developed for the primary purpose of making sales
of excess electric power under the regulatory provisions of
this part; or
``(B) does not capture at least 60 percent of the total
energy value of the fuels used (on a higher-heating-value
basis) in the form of useful thermal energy, electricity,
mechanical energy, chemical output, or any combination
thereof.
``(e) Self-Certification.--
``(1) In general.--Subject to any procedures that are
established by the Administrator, an owner, operator, or
third-party developer of a recoverable waste energy project
that qualifies under standards established by the
Administrator may self-certify the sites or sources of the
owner, operator, or developer to the Administrator for
inclusion in the Registry.
``(2) Review and approval.--To prevent a fraudulent
listing, a site or source shall be included on the Registry
only if the Administrator reviews and approves the self-
certification.
``(f) New Facilities.--As a new energy-consuming industrial
facility is developed after the date of enactment of the
Energy Independence and Security Act of 2007, to the extent
the facility may constitute a site with recoverable waste
energy that may qualify for inclusion on the Registry, the
Administrator may elect to include the facility on the
Registry, at the request of the owner, operator, or developer
of the facility, on a conditional basis with the site to be
removed from the Registry if the development ceases or the
site fails to qualify for listing under this part.
``(g) Optimum Means of Recovery.--For each site listed in
the Registry, at the request of the owner or operator of the
site, the Administrator shall offer, in cooperation with
Clean Energy Application Centers operated by the Secretary of
Energy, suggestions for optimum means of recovery of value
from waste energy stream in the form of electricity, useful
thermal energy, or other energy-related products.
``(h) Revision.--Each annual report of a State under
section 548(a) of the National Energy Conservation Policy Act
(42 U.S.C. 8258(a)) shall include the results of the survey
for the State under this section.
``(i) Authorization of Appropriations.--There are
authorized to be appropriated to--
``(1) the Administrator to create and maintain the Registry
and services authorized by this section, $1,000,000 for each
of fiscal years 2008 through 2012; and
``(2) the Secretary--
``(A) to assist site or source owners and operators in
determining the feasibility of projects authorized by this
section, $2,000,000 for each of fiscal years 2008 through
2012; and
``(B) to provide funding for State energy office functions
under this section, $5,000,000.
``SEC. 373. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM.
``(a) Establishment.--The Secretary shall establish in the
Department of Energy a waste energy recovery incentive grant
program to provide incentive grants to--
[[Page H14354]]
``(1) owners and operators of projects that successfully
produce electricity or incremental useful thermal energy from
waste energy recovery;
``(2) utilities purchasing or distributing the electricity;
and
``(3) States that have achieved 80 percent or more of
recoverable waste heat recovery opportunities.
``(b) Grants to Projects and Utilities.--
``(1) In general.--The Secretary shall make grants under
this section--
``(A) to the owners or operators of waste energy recovery
projects; and
``(B) in the case of excess power purchased or transmitted
by a electric utility, to the utility.
``(2) Proof.--Grants may only be made under this section on
receipt of proof of waste energy recovery or excess
electricity generation, or both, from the project in a form
prescribed by the Secretary.
``(3) Excess electric energy.--
``(A) In general.--In the case of waste energy recovery, a
grant under this section shall be made at the rate of $10 per
megawatt hour of documented electricity produced from
recoverable waste energy (or by prevention of waste energy in
the case of a new facility) by the project during the first 3
calendar years of production, beginning on or after the date
of enactment of the Energy Independence and Security Act of
2007.
``(B) Utilities.--If the project produces net excess power
and an electric utility purchases or transmits the excess
power, 50 percent of so much of the grant as is attributable
to the net excess power shall be paid to the electric utility
purchasing or transporting the net excess power.
``(4) Useful thermal energy.--In the case of waste energy
recovery that produces useful thermal energy that is used for
a purpose different from that for which the project is
principally designed, a grant under this section shall be
made to the owner or operator of the waste energy recovery
project at the rate of $10 for each 3,412,000 Btus of the
excess thermal energy used for the different purpose.
``(c) Grants to States.--In the case of any State that has
achieved 80 percent or more of waste heat recovery
opportunities identified by the Secretary under this part,
the Administrator shall make a 1-time grant to the State in
an amount of not more than $1,000 per megawatt of waste-heat
capacity recovered (or a thermal equivalent) to support
State-level programs to identify and achieve additional
energy efficiency.
``(d) Eligibility.--The Secretary shall--
``(1) establish rules and guidelines to establish
eligibility for grants under subsection (b);
``(2) publicize the availability of the grant program known
to owners or operators of recoverable waste energy sources
and sites listed on the Registry; and
``(3) award grants under the program on the basis of the
merits of each project in recovering or preventing waste
energy throughout the United States on an impartial,
objective, and not unduly discriminatory basis.
``(e) Limitation.--The Secretary shall not award grants to
any person for a combined heat and power project or a waste
heat recovery project that qualifies for specific Federal tax
incentives for combined heat and power or for waste heat
recovery.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary--
``(1) to make grants to projects and utilities under
subsection (b)--
``(A) $100,000,000 for fiscal year 2008 and $200,000,000
for each of fiscal years 2009 through 2012; and
``(B) such additional amounts for fiscal year 2008 and each
fiscal year thereafter as may be necessary for administration
of the waste energy recovery incentive grant program; and
``(2) to make grants to States under subsection (b),
$10,000,000 for each of fiscal years 2008 through 2012, to
remain available until expended.
``SEC. 374. ADDITIONAL INCENTIVES FOR RECOVERY, USE, AND
PREVENTION OF INDUSTRIAL WASTE ENERGY.
``(a) Consideration of Standard.--
``(1) In general.--Not later than 180 days after the
receipt by a State regulatory authority (with respect to each
electric utility for which the authority has ratemaking
authority), or nonregulated electric utility, of a request
from a project sponsor or owner or operator, the State
regulatory authority or nonregulated electric utility shall--
``(A) provide public notice and conduct a hearing
respecting the standard established by subsection (b); and
``(B) on the basis of the hearing, consider and make a
determination whether or not it is appropriate to implement
the standard to carry out the purposes of this part.
``(2) Relationship to state law.--For purposes of any
determination under paragraph (1) and any review of the
determination in any court, the purposes of this section
supplement otherwise applicable State law.
``(3) Nonadoption of standard.--Nothing in this part
prohibits any State regulatory authority or nonregulated
electric utility from making any determination that it is not
appropriate to adopt any standard described in paragraph (1),
pursuant to authority under otherwise applicable State law.
``(b) Standard for Sales of Excess Power.--For purposes of
this section, the standard referred to in subsection (a)
shall provide that an owner or operator of a waste energy
recovery project identified on the Registry that generates
net excess power shall be eligible to benefit from at least 1
of the options described in subsection (c) for disposal of
the net excess power in accordance with the rate conditions
and limitations described in subsection (d).
``(c) Options.--The options referred to in subsection (b)
are as follows:
``(1) Sale of net excess power to utility.--The electric
utility shall purchase the net excess power from the owner or
operator of the eligible waste energy recovery project during
the operation of the project under a contract entered into
for that purpose.
``(2) Transport by utility for direct sale to third
party.--The electric utility shall transmit the net excess
power on behalf of the project owner or operator to up to 3
separate locations on the system of the utility for direct
sale by the owner or operator to third parties at those
locations.
``(3) Transport over private transmission lines.--The State
and the electric utility shall permit, and shall waive or
modify such laws as would otherwise prohibit, the
construction and operation of private electric wires
constructed, owned, and operated by the project owner or
operator, to transport the power to up to 3 purchasers within
a 3-mile radius of the project, allowing the wires to use or
cross public rights-of-way, without subjecting the project to
regulation as a public utility, and according the wires the
same treatment for safety, zoning, land use, and other legal
privileges as apply or would apply to the wires of the
utility, except that--
``(A) there shall be no grant of any power of eminent
domain to take or cross private property for the wires; and
``(B) the wires shall be physically segregated and not
interconnected with any portion of the system of the utility,
except on the customer side of the revenue meter of the
utility and in a manner that precludes any possible export of
the electricity onto the utility system, or disruption of the
system.
``(4) Agreed on alternatives.--The utility and the owner or
operator of the project may reach agreement on any alternate
arrangement and payments or rates associated with the
arrangement that is mutually satisfactory and in accord with
State law.
``(d) Rate Conditions and Criteria.--
``(1) Definitions.--In this subsection:
``(A) Per unit distribution costs.--The term `per unit
distribution costs' means (in kilowatt hours) the quotient
obtained by dividing--
``(i) the depreciated book-value distribution system costs
of a utility; by
``(ii) the volume of utility electricity sales or
transmission during the previous year at the distribution
level.
``(B) Per unit distribution margin.--The term `per unit
distribution margin' means--
``(i) in the case of a State-regulated electric utility, a
per-unit gross pretax profit equal to the product obtained by
multiplying--
``(I) the State-approved percentage rate of return for the
utility for distribution system assets; by
``(II) the per unit distribution costs; and
``(ii) in the case of a nonregulated utility, a per unit
contribution to net revenues determined multiplying--
``(I) the percentage (but not less than 10 percent)
obtained by dividing--
``(aa) the amount of any net revenue payment or
contribution to the owners or subscribers of the nonregulated
utility during the prior year; by
``(bb) the gross revenues of the utility during the prior
year to obtain a percentage; by
``(II) the per unit distribution costs.
``(C) Per unit transmission costs.--The term `per unit
transmission costs' means the total cost of those
transmission services purchased or provided by a utility on a
per-kilowatt-hour basis as included in the retail rate of the
utility.
``(2) Options.--The options described in paragraphs (1) and
(2) in subsection (c) shall be offered under purchase and
transport rate conditions that reflect the rate components
defined under paragraph (1) as applicable under the
circumstances described in paragraph (3).
``(3) Applicable rates.--
``(A) Rates applicable to sale of net excess power.--
``(i) In general.--Sales made by a project owner or
operator of a facility under the option described in
subsection (c)(1) shall be paid for on a per kilowatt hour
basis that shall equal the full undiscounted retail rate paid
to the utility for power purchased by the facility minus per
unit distribution costs, that applies to the type of utility
purchasing the power.
``(ii) Voltages exceeding 25 kilovolts.--If the net excess
power is made available for purchase at voltages that must be
transformed to or from voltages exceeding 25 kilovolts to be
available for resale by the utility, the purchase price shall
further be reduced by per unit transmission costs.
``(B) Rates applicable to transport by utility for direct
sale to third parties.--
``(i) In general.--Transportation by utilities of power on
behalf of the owner or operator of a project under the option
described in subsection (c)(2) shall incur a transportation
rate that shall equal the per unit distribution costs and per
unit distribution margin, that applies to the type of utility
transporting the power.
``(ii) Voltages exceeding 25 kilovolts.--If the net excess
power is made available for
[[Page H14355]]
transportation at voltages that must be transformed to or
from voltages exceeding 25 kilovolts to be transported to the
designated third-party purchasers, the transport rate shall
further be increased by per unit transmission costs.
``(iii) States with competitive retail markets for
electricity.--In a State with a competitive retail market for
electricity, the applicable transportation rate for similar
transportation shall be applied in lieu of any rate
calculated under this paragraph.
``(4) Limitations.--
``(A) In general.--Any rate established for sale or
transportation under this section shall--
``(i) be modified over time with changes in the underlying
costs or rates of the electric utility; and
``(ii) reflect the same time-sensitivity and billing
periods as are established in the retail sales or
transportation rates offered by the utility.
``(B) Limitation.--No utility shall be required to purchase
or transport a quantity of net excess power under this
section that exceeds the available capacity of the wires,
meter, or other equipment of the electric utility serving the
site unless the owner or operator of the project agrees to
pay necessary and reasonable upgrade costs.
``(e) Procedural Requirements for Consideration and
Determination.--
``(1) Public notice and hearing.--
``(A) In general.--The consideration referred to in
subsection (a) shall be made after public notice and hearing.
``(B) Administration.--The determination referred to in
subsection (a) shall be--
``(i) in writing;
``(ii) based on findings included in the determination and
on the evidence presented at the hearing; and
``(iii) available to the public.
``(2) Intervention by administrator.--The Administrator may
intervene as a matter of right in a proceeding conducted
under this section--
``(A) to calculate--
``(i) the energy and emissions likely to be saved by
electing to adopt 1 or more of the options; and
``(ii) the costs and benefits to ratepayers and the
utility; and
``(B) to advocate for the waste-energy recovery
opportunity.
``(3) Procedures.--
``(A) In general.--Except as otherwise provided in
paragraphs (1) and (2), the procedures for the consideration
and determination referred to in subsection (a) shall be the
procedures established by the State regulatory authority or
the nonregulated electric utility.
``(B) Multiple projects.--If there is more than 1 project
seeking consideration simultaneously in connection with the
same utility, the proceeding may encompass all such projects,
if full attention is paid to individual circumstances and
merits and an individual judgment is reached with respect to
each project.
``(f) Implementation.--
``(1) In general.--The State regulatory authority (with
respect to each electric utility for which the authority has
ratemaking authority) or nonregulated electric utility may,
to the extent consistent with otherwise applicable State
law--
``(A) implement the standard determined under this section;
or
``(B) decline to implement any such standard.
``(2) Nonimplementation of standard.--
``(A) In general.--If a State regulatory authority (with
respect to each electric utility for which the authority has
ratemaking authority) or nonregulated electric utility
declines to implement any standard established by this
section, the authority or nonregulated electric utility shall
state in writing the reasons for declining to implement the
standard.
``(B) Availability to public.--The statement of reasons
shall be available to the public.
``(C) Annual report.--The Administrator shall include in an
annual report submitted to Congress a description of the lost
opportunities for waste-heat recovery from the project
described in subparagraph (A), specifically identifying the
utility and stating the quantity of lost energy and emissions
savings calculated.
``(D) New petition.--If a State regulatory authority (with
respect to each electric utility for which the authority has
ratemaking authority) or nonregulated electric utility
declines to implement the standard established by this
section, the project sponsor may submit a new petition under
this section with respect to the project at any time after
the date that is 2 years after the date on which the State
regulatory authority or nonregulated utility declined to
implement the standard.
``SEC. 375. CLEAN ENERGY APPLICATION CENTERS.
``(a) Renaming.--
``(1) In general.--The Combined Heat and Power Application
Centers of the Department of Energy are redesignated as Clean
Energy Application Centers.
``(2) References.--Any reference in any law, rule,
regulation, or publication to a Combined Heat and Power
Application Center shall be treated as a reference to a Clean
Energy Application Center.
``(b) Relocation.--
``(1) In general.--In order to better coordinate efforts
with the separate Industrial Assessment Centers and to ensure
that the energy efficiency and, when applicable, the
renewable nature of deploying mature clean energy technology
is fully accounted for, the Secretary shall relocate the
administration of the Clean Energy Application Centers to the
Office of Energy Efficiency and Renewable Energy within the
Department of Energy.
``(2) Office of electricity delivery and energy
reliability.--The Office of Electricity Delivery and Energy
Reliability shall--
``(A) continue to perform work on the role of technology
described in paragraph (1) in support of the grid and the
reliability and security of the technology; and
``(B) shall assist the Clean Energy Application Centers in
the work of the Centers with regard to the grid and with
electric utilities.
``(c) Grants.--
``(1) In general.--The Secretary shall make grants to
universities, research centers, and other appropriate
institutions to ensure the continued operations and
effectiveness of 8 Regional Clean Energy Application Centers
in each of the following regions (as designated for such
purposes as of the date of the enactment of the Energy
Independence and Security Act of 2007):
``(A) Gulf Coast.
``(B) Intermountain.
``(C) Mid-Atlantic.
``(D) Midwest.
``(E) Northeast.
``(F) Northwest.
``(G) Pacific.
``(H) Southeast.
``(2) Establishment of goals and compliance.--In making
grants under this subsection, the Secretary shall ensure that
sufficient goals are established and met by each Center
throughout the program duration concerning outreach and
technology deployment.
``(d) Activities.--
``(1) In general.--Each Clean Energy Application Center
shall--
``(A) operate a program to encourage deployment of clean
energy technologies through education and outreach to
building and industrial professionals; and other individuals
and organizations with an interest in efficient energy use;
and
``(B) provide project specific support to building and
industrial professionals through assessments and advisory
activities.
``(2) Types of activities.--Funds made available under this
section may be used--
``(A) to develop and distribute informational materials on
clean energy technologies, including continuation of the 8
websites in existence on the date of enactment of the Energy
Independence and Security Act of 2007;
``(B) to develop and conduct target market workshops,
seminars, internet programs, and other activities to educate
end users, regulators, and stakeholders in a manner that
leads to the deployment of clean energy technologies;
``(C) to provide or coordinate onsite assessments for sites
and enterprises that may consider deployment of clean energy
technology;
``(D) to perform market research to identify high profile
candidates for clean energy deployment;
``(E) to provide consulting support to sites considering
deployment of clean energy technologies;
``(F) to assist organizations developing clean energy
technologies to overcome barriers to deployment; and
``(G) to assist companies and organizations with
performance evaluations of any clean energy technology
implemented.
``(e) Duration.--
``(1) In general.--A grant awarded under this section shall
be for a period of 5 years
``(2) Annual evaluations.--Each grant shall be evaluated
annually for the continuation of the grant based on the
activities and results of the grant.
``(f) Authorization.--There is authorized to be
appropriated to carry out this section $10,000,000 for each
of fiscal years 2008 through 2012.''.
(b) Table of Contents.--The table of contents of the Energy
Policy and Conservation Act (42 U.S.C. prec. 6201) is amended
by inserting after the items relating to part D of title III
the following:
``Part E--Industrial Energy Efficiency
``Sec. 371. Definitions.
``Sec. 372. Survey and Registry.
``Sec. 373.Waste energy recovery incentive grant program.
``Sec. 374. Additional incentives for recovery, utilization and
prevention of industrial waste energy.
``Sec. 375. Clean Energy Application Centers.''.
SEC. 452. ENERGY-INTENSIVE INDUSTRIES PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) an energy-intensive industry;
(B) a national trade association representing an energy-
intensive industry; or
(C) a person acting on behalf of 1 or more energy-intensive
industries or sectors, as determined by the Secretary.
(2) Energy-intensive industry.--The term ``energy-intensive
industry'' means an industry that uses significant quantities
of energy as part of its primary economic activities,
including--
(A) information technology, including data centers
containing electrical equipment used in processing, storing,
and transmitting digital information;
[[Page H14356]]
(B) consumer product manufacturing;
(C) food processing;
(D) materials manufacturers, including--
(i) aluminum;
(ii) chemicals;
(iii) forest and paper products;
(iv) metal casting;
(v) glass;
(vi) petroleum refining;
(vii) mining; and
(viii) steel;
(E) other energy-intensive industries, as determined by the
Secretary.
(3) Feedstock.--The term ``feedstock'' means the raw
material supplied for use in manufacturing, chemical, and
biological processes.
(4) Partnership.--The term ``partnership'' means an energy
efficiency partnership established under subsection
(c)(1)(A).
(5) Program.--The term ``program'' means the energy-
intensive industries program established under subsection
(b).
(b) Establishment of Program.--The Secretary shall
establish a program under which the Secretary, in cooperation
with energy-intensive industries and national industry trade
associations representing the energy-intensive industries,
shall support, research, develop, and promote the use of new
materials processes, technologies, and techniques to optimize
energy efficiency and the economic competitiveness of the
United States' industrial and commercial sectors.
(c) Partnerships.--
(1) In general.--As part of the program, the Secretary
shall establish energy efficiency partnerships between the
Secretary and eligible entities to conduct research on,
develop, and demonstrate new processes, technologies, and
operating practices and techniques to significantly improve
the energy efficiency of equipment and processes used by
energy-intensive industries, including the conduct of
activities to--
(A) increase the energy efficiency of industrial processes
and facilities;
(B) research, develop, and demonstrate advanced
technologies capable of energy intensity reductions and
increased environmental performance; and
(C) promote the use of the processes, technologies, and
techniques described in subparagraphs (A) and (B).
(2) Eligible activities.--Partnership activities eligible
for funding under this subsection include--
(A) feedstock and recycling research, development, and
demonstration activities to identify and promote--
(i) opportunities for meeting industry feedstock
requirements with more energy efficient and flexible sources
of feedstock or energy supply;
(ii) strategies to develop and deploy technologies that
improve the quality and quantity of feedstocks recovered from
process and waste streams; and
(iii) other methods using recycling, reuse, and improved
industrial materials;
(B) research to develop and demonstrate technologies and
processes that utilize alternative energy sources to supply
heat, power, and new feedstocks for energy-intensive
industries;
(C) research to achieve energy efficiency in steam, power,
control system, and process heat technologies, and in other
manufacturing processes; and
(D) industrial and commercial energy efficiency and
sustainability assessments to--
(i) assist individual industrial and commercial sectors in
developing tools, techniques, and methodologies to assess--
(I) the unique processes and facilities of the sectors;
(II) the energy utilization requirements of the sectors;
and
(III) the application of new, more energy efficient
technologies; and
(ii) conduct energy savings assessments;
(E) the incorporation of technologies and innovations that
would significantly improve the energy efficiency and
utilization of energy-intensive commercial applications; and
(F) any other activities that the Secretary determines to
be appropriate.
(3) Proposals.--
(A) In general.--To be eligible for funding under this
subsection, a partnership shall submit to the Secretary a
proposal that describes the proposed research, development,
or demonstration activity to be conducted by the partnership.
(B) Review.--After reviewing the scientific, technical, and
commercial merit of a proposals submitted under subparagraph
(A), the Secretary shall approve or disapprove the proposal.
(C) Competitive awards.--The provision of funding under
this subsection shall be on a competitive basis.
(4) Cost-sharing requirement.--In carrying out this
section, the Secretary shall require cost sharing in
accordance with section 988 of the Energy Policy Act of 2005
(42 U.S.C. 16352).
(d) Grants.--The Secretary may award competitive grants for
innovative technology research, development and
demonstrations to universities, individual inventors, and
small companies, based on energy savings potential,
commercial viability, and technical merit.
(e) Institution of Higher Education-Based Industrial
Research and Assessment Centers.--The Secretary shall provide
funding to institution of higher education-based industrial
research and assessment centers, whose purpose shall be--
(1) to identify opportunities for optimizing energy
efficiency and environmental performance;
(2) to promote applications of emerging concepts and
technologies in small and medium-sized manufacturers;
(3) to promote research and development for the use of
alternative energy sources to supply heat, power, and new
feedstocks for energy-intensive industries;
(4) to coordinate with appropriate Federal and State
research offices, and provide a clearinghouse for industrial
process and energy efficiency technical assistance resources;
and
(5) to coordinate with State-accredited technical training
centers and community colleges, while ensuring appropriate
services to all regions of the United States.
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary to carry out this section--
(A) $184,000,000 for fiscal year 2008;
(B) $190,000,000 for fiscal year 2009;
(C) $196,000,000 for fiscal year 2010;
(D) $202,000,000 for fiscal year 2011;
(E) $208,000,000 for fiscal year 2012; and
(F) such sums as are necessary for fiscal year 2013 and
each fiscal year thereafter.
(2) Partnership activities.--Of the amounts made available
under paragraph (1), not less than 50 percent shall be used
to pay the Federal share of partnership activities under
subsection (c).
(3) Coordination and nonduplication.--The Secretary shall
coordinate efforts under this section with other programs of
the Department and other Federal agencies to avoid
duplication of effort.
SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.
(a) Definitions.--In this section:
(1) Data center.--The term ``data center'' means any
facility that primarily contains electronic equipment used to
process, store, and transmit digital information, which may
be--
(A) a free-standing structure; or
(B) a facility within a larger structure, that uses
environmental control equipment to maintain the proper
conditions for the operation of electronic equipment.
(2) Data center operator.--The term ``data center
operator'' means any person or government entity that builds
or operates a data center or purchases data center services,
equipment, and facilities.
(b) Voluntary National Information Program.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary and the Administrator of
the Environmental Protection Agency shall, after consulting
with information technology industry and other interested
parties, initiate a voluntary national information program
for those types of data centers and data center equipment and
facilities that are widely used and for which there is a
potential for significant data center energy savings as a
result of the program.
(2) Requirements.--The program described in paragraph (1)
shall--
(A) address data center efficiency holistically, reflecting
the total energy consumption of data centers as whole
systems, including both equipment and facilities;
(B) consider prior work and studies undertaken in this
area, including by the Environmental Protection Agency and
the Department of Energy;
(C) consistent with the objectives described in paragraph
(1), determine the type of data center and data center
equipment and facilities to be covered under the program;
(D) produce specifications, measurements, best practices,
and benchmarks that will enable data center operators to make
more informed decisions about the energy efficiency and costs
of data centers, and that take into account--
(i) the performance and use of servers, data storage
devices, and other information technology equipment;
(ii) the efficiency of heating, ventilation, and air
conditioning, cooling, and power conditioning systems,
provided that no modification shall be required of a standard
then in effect under the Energy Policy and Conservation Act
(42 U.S.C. 6201 et seq.) for any covered heating,
ventilation, air-conditioning, cooling or power-conditioning
product;
(iii) energy savings from the adoption of software and data
management techniques; and
(iv) other factors determined by the organization described
in subsection (c);
(E) allow for creation of separate specifications,
measurements, and benchmarks based on data center size and
function, as well as other appropriate characteristics;
(F) advance the design and implementation of efficiency
technologies to the maximum extent economically practical;
(G) provide to data center operators in the private sector
and the Federal Government information about best practices
and purchasing decisions that reduce the energy consumption
of data centers; and
(H) publish the information described in subparagraph (G),
which may be disseminated through catalogs, trade
publications, the Internet, or other mechanisms, that will
allow data center operators to assess the energy consumption
and potential cost savings of alternative data centers and
data center equipment and facilities.
[[Page H14357]]
(3) Procedures.--The program described in paragraph (1)
shall be developed in consultation with and coordinated by
the organization described in subsection (c) according to
commonly accepted procedures for the development of
specifications, measurements, and benchmarks.
(c) Data Center Efficiency Organization.--
(1) In general.--After the establishment of the program
described in subsection (b), the Secretary and the
Administrator shall jointly designate an information
technology industry organization to consult with and to
coordinate the program.
(2) Requirements.--The organization designated under
paragraph (1), whether preexisting or formed specifically for
the purposes of subsection (b), shall--
(A) consist of interested parties that have expertise in
energy efficiency and in the development, operation, and
functionality of computer data centers, information
technology equipment, and software, as well as
representatives of hardware manufacturers, data center
operators, and facility managers;
(B) obtain and address input from Department of Energy
National Laboratories or any college, university, research
institution, industry association, company, or public
interest group with applicable expertise in any of the areas
listed in paragraph (1);
(C) follow commonly accepted procedures for the development
of specifications and accredited standards development
processes;
(D) have a mission to develop and promote energy efficiency
for data centers and information technology; and
(E) have the primary responsibility to consult in the
development and publishing of the information, measurements,
and benchmarks described in subsection (b) and transmission
of the information to the Secretary and the Administrator for
consideration under subsection (d).
(d) Measurements and Specifications.--
(1) In general.--The Secretary and the Administrator shall
consider the specifications, measurements, and benchmarks
described in subsection (b) for use by the Federal Energy
Management Program, the Energy Star Program, and other
efficiency programs of the Department of Energy and
Environmental Protection Agency, respectively.
(2) Rejections.--If the Secretary or the Administrator
rejects 1 or more specifications, measurements, or benchmarks
described in subsection (b), the rejection shall be made
consistent with section 12(d) of the National Technology
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note;
Public Law 104-113).
(3) Determination of impracticability.--A determination
that a specification, measurement, or benchmark described in
subsection (b) is impractical may include consideration of
the maximum efficiency that is technologically feasible and
economically justified.
(e) Monitoring.--The Secretary and the Administrator
shall--
(1) monitor and evaluate the efforts to develop the program
described in subsection (b); and
(2) not later than 3 years after the date of enactment of
this Act, make a determination as to whether the program is
consistent with the objectives of subsection (b).
(f) Alternative System.--If the Secretary and the
Administrator make a determination under subsection (e) that
a voluntary national information program for data centers
consistent with the objectives of subsection (b) has not been
developed, the Secretary and the Administrator shall, after
consultation with the National Institute of Standards and
Technology and not later than 2 years after the
determination, develop and implement the program under
subsection (b).
(g) Protection of Proprietary Information.--The Secretary,
the Administrator, or the data center efficiency organization
shall not disclose any proprietary information or trade
secrets provided by any individual or company for the
purposes of carrying out this section or the program
established under this section.
Subtitle E--Healthy High-Performance Schools
SEC. 461. HEALTHY HIGH-PERFORMANCE SCHOOLS.
(a) Amendment.--The Toxic Substances Control Act (15 U.S.C.
2601 et seq.) is amended by adding at the end the following
new title:
``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS
``SEC. 501. GRANTS FOR HEALTHY SCHOOL ENVIRONMENTS.
``(a) In General.--The Administrator, in consultation with
the Secretary of Education, may provide grants to States for
use in--
``(1) providing technical assistance for programs of the
Environmental Protection Agency (including the Tools for
Schools Program and the Healthy School Environmental
Assessment Tool) to schools for use in addressing
environmental issues; and
``(2) development and implementation of State school
environmental health programs that include--
``(A) standards for school building design, construction,
and renovation; and
``(B) identification of ongoing school building
environmental problems, including contaminants, hazardous
substances, and pollutant emissions, in the State and
recommended solutions to address those problems, including
assessment of information on the exposure of children to
environmental hazards in school facilities.
``(b) Sunset.--The authority of the Administrator to carry
out this section shall expire 5 years after the date of
enactment of this section.
``SEC. 502. MODEL GUIDELINES FOR SITING OF SCHOOL FACILITIES.
``Not later than 18 months after the date of enactment of
this section, the Administrator, in consultation with the
Secretary of Education and the Secretary of Health and Human
Services, shall issue voluntary school site selection
guidelines that account for--
``(1) the special vulnerability of children to hazardous
substances or pollution exposures in any case in which the
potential for contamination at a potential school site
exists;
``(2) modes of transportation available to students and
staff;
``(3) the efficient use of energy; and
``(4) the potential use of a school at the site as an
emergency shelter.
``SEC. 503. PUBLIC OUTREACH.
``(a) Reports.--The Administrator shall publish and submit
to Congress an annual report on all activities carried out
under this title, until the expiration of authority described
in section 501(b).
``(b) Public Outreach.--The Federal Director appointed
under section 436(a) of the Energy Independence and Security
Act of 2007 (in this title referred to as the `Federal
Director') shall ensure, to the maximum extent practicable,
that the public clearinghouse established under section
423(1) of the Energy Independence and Security Act of 2007
receives and makes available information on the exposure of
children to environmental hazards in school facilities, as
provided by the Administrator.
``SEC. 504. ENVIRONMENTAL HEALTH PROGRAM.
``(a) In General.--Not later than 2 years after the date of
enactment of this section, the Administrator, in consultation
with the Secretary of Education, the Secretary of Health and
Human Services, and other relevant agencies, shall issue
voluntary guidelines for use by the State in developing and
implementing an environmental health program for schools
that--
``(1) takes into account the status and findings of Federal
initiatives established under this title or subtitle C of
title IV of the Energy Independence and Security Act of 2007
and other relevant Federal law with respect to school
facilities, including relevant updates on trends in the
field, such as the impact of school facility environments on
student and staff--
``(A) health, safety, and productivity; and
``(B) disabilities or special needs;
``(2) takes into account studies using relevant tools
identified or developed in accordance with section 492 of the
Energy Independence and Security Act of 2007;
``(3) takes into account, with respect to school
facilities, each of--
``(A) environmental problems, contaminants, hazardous
substances, and pollutant emissions, including--
``(i) lead from drinking water;
``(ii) lead from materials and products;
``(iii) asbestos;
``(iv) radon;
``(v) the presence of elemental mercury releases from
products and containers;
``(vi) pollutant emissions from materials and products; and
``(vii) any other environmental problem, contaminant,
hazardous substance, or pollutant emission that present or
may present a risk to the health of occupants of the school
facilities or environment;
``(B) natural day lighting;
``(C) ventilation choices and technologies;
``(D) heating and cooling choices and technologies;
``(E) moisture control and mold;
``(F) maintenance, cleaning, and pest control activities;
``(G) acoustics; and
``(H) other issues relating to the health, comfort,
productivity, and performance of occupants of the school
facilities;
``(4) provides technical assistance on siting, design,
management, and operation of school facilities, including
facilities used by students with disabilities or special
needs;
``(5) collaborates with federally funded pediatric
environmental health centers to assist in on-site school
environmental investigations;
``(6) assists States and the public in better understanding
and improving the environmental health of children; and
``(7) takes into account the special vulnerability of
children in low-income and minority communities to exposures
from contaminants, hazardous substances, and pollutant
emissions.
``(b) Public Outreach.--The Federal Director and Commercial
Director shall ensure, to the maximum extent practicable,
that the public clearinghouse established under section 423
of the Energy Independence and Security Act of 2007 receives
and makes available--
``(1) information from the Administrator that is contained
in the report described in section 503(a); and
``(2) information on the exposure of children to
environmental hazards in school facilities, as provided by
the Administrator.
``SEC. 505. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
title $1,000,000 for fiscal year 2009, and $1,500,000 for
each of fiscal years 2010 through 2013, to remain available
until expended.''.
(b) Table of Contents Amendment.--The table of contents for
the Toxic Substances
[[Page H14358]]
Control Act (15 U.S.C. 2601 et seq.) is amended by adding at
the end the following:
``TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS
``Sec. 501. Grants for healthy school environments.
``Sec. 502. Model guidelines for siting of school facilities.
``Sec. 503. Public outreach.
``Sec. 504. Environmental health program.
``Sec. 505. Authorization of appropriations.''.
SEC. 462. STUDY ON INDOOR ENVIRONMENTAL QUALITY IN SCHOOLS.
(a) In General.--The Administrator of the Environmental
Protection Agency shall enter into an arrangement with the
Secretary of Education and the Secretary of Energy to conduct
a detailed study of how sustainable building features such as
energy efficiency affect multiple perceived indoor
environmental quality stressors on students in K-12 schools.
(b) Contents.--The study shall--
(1) investigate the combined effect building stressors such
as heating, cooling, humidity, lighting, and acoustics have
on building occupants' health, productivity, and overall
well-being;
(2) identify how sustainable building features, such as
energy efficiency, are influencing these human outcomes
singly and in concert; and
(3) ensure that the impacts of the indoor environmental
quality are evaluated as a whole.
(c) Authorization of Appropriations.--There are authorized
to be appropriated for carrying out this section $200,000 for
each of the fiscal years 2008 through 2012.
Subtitle F--Institutional Entities
SEC. 471. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND
LOANS FOR INSTITUTIONS.
Part G of title III of the Energy Policy and Conservation
Act is amended by inserting after section 399 (42 U.S.C.
6371h) the following:
``SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND
LOANS FOR INSTITUTIONS.
``(a) Definitions.--In this section:
``(1) Combined heat and power.--The term `combined heat and
power' means the generation of electric energy and heat in a
single, integrated system, with an overall thermal efficiency
of 60 percent or greater on a higher-heating-value basis.
``(2) District energy systems.--The term `district energy
systems' means systems providing thermal energy from a
renewable energy source, thermal energy source, or highly
efficient technology to more than 1 building or fixed energy-
consuming use from 1 or more thermal-energy production
facilities through pipes or other means to provide space
heating, space conditioning, hot water, steam, compression,
process energy, or other end uses for that energy.
``(3) Energy sustainability.--The term `energy
sustainability' includes using a renewable energy source,
thermal energy source, or a highly efficient technology for
transportation, electricity generation, heating, cooling,
lighting, or other energy services in fixed installations.
``(4) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 2 of the Energy Policy Act of 2005 (42 U.S.C.
15801).
``(5) Institutional entity.--The term `institutional
entity' means an institution of higher education, a public
school district, a local government, a municipal utility, or
a designee of 1 of those entities.
``(6) Renewable energy source.--The term `renewable energy
source' has the meaning given the term in section 609 of the
Public Utility Regulatory Policies Act of 1978 (7 U.S.C.
918c).
``(7) Sustainable energy infrastructure.--The term
`sustainable energy infrastructure' means--
``(A) facilities for production of energy from renewable
energy sources, thermal energy sources, or highly efficient
technologies, including combined heat and power or other
waste heat use; and
``(B) district energy systems.
``(8) Thermal energy source.--The term `thermal energy
source' means--
``(A) a natural source of cooling or heating from lake or
ocean water; and
``(B) recovery of useful energy that would otherwise be
wasted from ongoing energy uses.
``(b) Technical Assistance Grants.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary shall implement a program
of information dissemination and technical assistance to
institutional entities to assist the institutional entities
in identifying, evaluating, designing, and implementing
sustainable energy infrastructure projects in energy
sustainability.
``(2) Assistance.--The Secretary shall support
institutional entities in--
``(A) identification of opportunities for sustainable
energy infrastructure;
``(B) understanding the technical and economic
characteristics of sustainable energy infrastructure;
``(C) utility interconnection and negotiation of power and
fuel contracts;
``(D) understanding financing alternatives;
``(E) permitting and siting issues;
``(F) obtaining case studies of similar and successful
sustainable energy infrastructure systems; and
``(G) reviewing and obtaining computer software for
assessment, design, and operation and maintenance of
sustainable energy infrastructure systems.
``(3) Eligible costs for technical assistance grants.--On
receipt of an application of an institutional entity, the
Secretary may make grants to the institutional entity to fund
a portion of the cost of--
``(A) feasibility studies to assess the potential for
implementation or improvement of sustainable energy
infrastructure;
``(B) analysis and implementation of strategies to overcome
barriers to project implementation, including financial,
contracting, siting, and permitting barriers; and
``(C) detailed engineering of sustainable energy
infrastructure.
``(c) Grants for Energy Efficiency Improvement and Energy
Sustainability.--
``(1) Grants.--
``(A) In general.--The Secretary shall award grants to
institutional entities to carry out projects to improve
energy efficiency on the grounds and facilities of the
institutional entity.
``(B) Requirement.--To the extent that applications have
been submitted, grants under subparagraph (A) shall include
not less than 1 grant each year to an institution of higher
education in each State.
``(C) Minimum funding.--Not less than 50 percent of the
total funding for all grants under this subsection shall be
awarded in grants to institutions of higher education.
``(2) Criteria.--Evaluation of projects for grant funding
shall be based on criteria established by the Secretary,
including criteria relating to--
``(A) improvement in energy efficiency;
``(B) reduction in greenhouse gas emissions and other air
emissions, including criteria air pollutants and ozone-
depleting refrigerants;
``(C) increased use of renewable energy sources or thermal
energy sources;
``(D) reduction in consumption of fossil fuels;
``(E) active student participation; and
``(F) need for funding assistance.
``(3) Condition.--As a condition of receiving a grant under
this subsection, an institutional entity shall agree--
``(A) to implement a public awareness campaign concerning
the project in the community in which the institutional
entity is located; and
``(B) to submit to the Secretary, and make available to the
public, reports on any efficiency improvements, energy cost
savings, and environmental benefits achieved as part of a
project carried out under paragraph (1), including
quantification of the results relative to the criteria
described under paragraph (2).
``(d) Grants for Innovation in Energy Sustainability.--
``(1) Grants.--
``(A) In general.--The Secretary shall award grants to
institutional entities to engage in innovative energy
sustainability projects.
``(B) Requirement.--To the extent that applications have
been submitted, grants under subparagraph (A) shall include
not less than 2 grants each year to institutions of higher
education in each State.
``(C) Minimum funding.--Not less than 50 percent of the
total funding for all grants under this subsection shall be
awarded in grants to institutions of higher education.
``(2) Innovation projects.--An innovation project carried
out with a grant under this subsection shall--
``(A) involve--
``(i) an innovative technology that is not yet commercially
available; or
``(ii) available technology in an innovative application
that maximizes energy efficiency and sustainability;
``(B) have the greatest potential for testing or
demonstrating new technologies or processes; and
``(C) to the extent undertaken by an institution of higher
education, ensure active student participation in the
project, including the planning, implementation, evaluation,
and other phases of projects.
``(3) Condition.--As a condition of receiving a grant under
this subsection, an institutional entity shall agree to
submit to the Secretary, and make available to the public,
reports that describe the results of the projects carried out
using grant funds.
``(e) Allocation to Institutions of Higher Education With
Small Endowments.--
``(1) In general.--Of the total amount of grants provided
to institutions of higher education for a fiscal year under
this section, the Secretary shall provide not less than 50
percent of the amount to institutions of higher education
that have an endowment of not more than $100,000,000.
``(2) Requirement.--To the extent that applications have
been submitted, at least 50 percent of the amount described
in paragraph (1) shall be provided to institutions of higher
education that have an endowment of not more than
$50,000,000.
``(f) Grant Amounts.--
``(1) In general.--If the Secretary determines that cost
sharing is appropriate, the amounts of grants provided under
this section shall be limited as provided in this subsection.
``(2) Technical assistance grants.--In the case of grants
for technical assistance under subsection (b), grant funds
shall be available for not more than--
``(A) an amount equal to the lesser of--
``(i) $50,000; or
[[Page H14359]]
``(ii) 75 percent of the cost of feasibility studies to
assess the potential for implementation or improvement of
sustainable energy infrastructure;
``(B) an amount equal to the lesser of--
``(i) $90,000; or
``(ii) 60 percent of the cost of guidance on overcoming
barriers to project implementation, including financial,
contracting, siting, and permitting barriers; and
``(C) an amount equal to the lesser of--
``(i) $250,000; or
``(ii) 40 percent of the cost of detailed engineering and
design of sustainable energy infrastructure.
``(3) Grants for efficiency improvement and energy
sustainability.--In the case of grants for efficiency
improvement and energy sustainability under subsection (c),
grant funds shall be available for not more than an amount
equal to the lesser of--
``(A) $1,000,000; or
``(B) 60 percent of the total cost.
``(4) Grants for innovation in energy sustainability.--In
the case of grants for innovation in energy sustainability
under subsection (d), grant funds shall be available for not
more than an amount equal to the lesser of--
``(A) $500,000; or
``(B) 75 percent of the total cost.
``(g) Loans for Energy Efficiency Improvement and Energy
Sustainability.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary shall provide loans to
institutional entities for the purpose of implementing energy
efficiency improvements and sustainable energy
infrastructure.
``(2) Terms and conditions.--
``(A) In general.--Except as otherwise provided in this
paragraph, loans made under this subsection shall be on such
terms and conditions as the Secretary may prescribe.
``(B) Maturity.--The final maturity of loans made within a
period shall be the lesser of, as determined by the
Secretary--
``(i) 20 years; or
``(ii) 90 percent of the useful life of the principal
physical asset to be financed by the loan.
``(C) Default.--No loan made under this subsection may be
subordinated to another debt contracted by the institutional
entity or to any other claims against the institutional
entity in the case of default.
``(D) Benchmark interest rate.--
``(i) In general.--Loans under this subsection shall be at
an interest rate that is set by reference to a benchmark
interest rate (yield) on marketable Treasury securities with
a similar maturity to the direct loans being made.
``(ii) Minimum.--The minimum interest rate of loans under
this subsection shall be at the interest rate of the
benchmark financial instrument.
``(iii) New loans.--The minimum interest rate of new loans
shall be adjusted each quarter to take account of changes in
the interest rate of the benchmark financial instrument.
``(E) Credit risk.--The Secretary shall--
``(i) prescribe explicit standards for use in periodically
assessing the credit risk of making direct loans under this
subsection; and
``(ii) find that there is a reasonable assurance of
repayment before making a loan.
``(F) Advance budget authority required.--New direct loans
may not be obligated under this subsection except to the
extent that appropriations of budget authority to cover the
costs of the new direct loans are made in advance, as
required by section 504 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661c).
``(3) Criteria.--Evaluation of projects for potential loan
funding shall be based on criteria established by the
Secretary, including criteria relating to--
``(A) improvement in energy efficiency;
``(B) reduction in greenhouse gas emissions and other air
emissions, including criteria air pollutants and ozone-
depleting refrigerants;
``(C) increased use of renewable electric energy sources or
renewable thermal energy sources;
``(D) reduction in consumption of fossil fuels; and
``(E) need for funding assistance, including consideration
of the size of endowment or other financial resources
available to the institutional entity.
``(4) Labor standards.--
``(A) In general.--All laborers and mechanics employed by
contractors or subcontractors in the performance of
construction, repair, or alteration work funded in whole or
in part under this section shall be paid wages at rates not
less than those prevailing on projects of a character similar
in the locality as determined by the Secretary of Labor in
accordance with sections 3141 through 3144, 3146, and 3147 of
title 40, United States Code. The Secretary shall not approve
any such funding without first obtaining adequate assurance
that required labor standards will be maintained upon the
construction work.
``(B) Authority and functions.--The Secretary of Labor
shall have, with respect to the labor standards specified in
paragraph (1), the authority and functions set forth in
Reorganization Plan Number 14 of 1950 (15 Fed. Reg. 3176; 64
Stat. 1267) and section 3145 of title 40, United States Code.
``(h) Program Procedures.--Not later than 180 days after
the date of enactment of this section, the Secretary shall
establish procedures for the solicitation and evaluation of
potential projects for grant and loan funding and
administration of the grant and loan programs.
``(i) Authorization.--
``(1) Grants.--There is authorized to be appropriated for
the cost of grants authorized in subsections (b), (c), and
(d) $250,000,000 for each of fiscal years 2009 through 2013,
of which not more than 5 percent may be used for
administrative expenses.
``(2) Loans.--There is authorized to be appropriated for
the initial cost of direct loans authorized in subsection (g)
$500,000,000 for each of fiscal years 2009 through 2013, of
which not more than 5 percent may be used for administrative
expenses.''.
Subtitle G--Public and Assisted Housing
SEC. 481. APPLICATION OF INTERNATIONAL ENERGY CONSERVATION
CODE TO PUBLIC AND ASSISTED HOUSING.
Section 109 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12709) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(C), by striking, ``, where such
standards are determined to be cost effective by the
Secretary of Housing and Urban Development''; and
(B) in the first sentence of paragraph (2)--
(i) by striking ``Council of American Building Officials
Model Energy Code, 1992'' and inserting ``2006 International
Energy Conservation Code''; and
(ii) by striking ``, and, with respect to rehabilitation
and new construction of public and assisted housing funded by
HOPE VI revitalization grants under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'';
(2) in subsection (b)--
(A) in the heading, by striking ``MODEL ENERGY CODE.--''
and inserting ``INTERNATIONAL ENERGY CONSERVATION CODE.--'';
(B) by inserting ``and rehabilitation'' after ``all new
construction''; and
(C) by striking ``, and, with respect to rehabilitation and
new construction of public and assisted housing funded by
HOPE VI revitalization grants under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'';
(3) in subsection (c)--
(A) in the heading, by striking ``MODEL ENERGY CODE AND'';
and
(B) by striking ``, or, with respect to rehabilitation and
new construction of public and assisted housing funded by
HOPE VI revitalization grants under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'';
(4) by adding at the end the following:
``(d) Failure To Amend the Standards.--If the Secretary of
Housing and Urban Development and the Secretary of
Agriculture have not, within 1 year after the requirements of
the 2006 IECC or the ASHRAE Standard 90.1-2004 are revised,
amended the standards or made a determination under
subsection (c), all new construction and rehabilitation of
housing specified in subsection (a) shall meet the
requirements of the revised code or standard if--
``(1) the Secretary of Housing and Urban Development or the
Secretary of Agriculture make a determination that the
revised codes do not negatively affect the availability or
affordability of new construction of assisted housing and
single family and multifamily residential housing (other than
manufactured homes) subject to mortgages insured under the
National Housing Act (12 U.S.C. 1701 et seq.) or insured,
guaranteed, or made by the Secretary of Agriculture under
title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.),
respectively; and
``(2) the Secretary of Energy has made a determination
under section 304 of the Energy Conservation and Production
Act (42 U.S.C. 6833) that the revised code or standard would
improve energy efficiency.'';
(5) by striking ``CABO Model Energy Code, 1992'' each place
it appears and inserting ``the 2006 IECC''; and
(6) by striking ``1989'' each place it appears and
inserting ``2004''.
Subtitle H--General Provisions
SEC. 491. DEMONSTRATION PROJECT.
(a) In General.--The Federal Director and the Commercial
Director shall establish guidelines to implement a
demonstration project to contribute to the research goals of
the Office of Commercial High-Performance Green Buildings and
the Office of Federal High-Performance Green Buildings.
(b) Projects.--In accordance with guidelines established by
the Federal Director and the Commercial Director under
subsection (a) and the duties of the Federal Director and the
Commercial Director described in this title, the Federal
Director or the Commercial Director shall carry out--
(1) for each of fiscal years 2009 through 2014, 1
demonstration project per year of green features in a Federal
building selected by the Federal Director in accordance with
relevant agencies and described in subsection (c)(1), that--
(A) provides for instrumentation, monitoring, and data
collection related to the green features, for study of the
impact of the features on overall enrgy use and operational
costs, and for the evaluation of the information obtained
through the conduct of projects and activities under this
title; and
(B) achieves the highest rating offered by the high
performance green building system identified pursuant to
section 436(h);
[[Page H14360]]
(2) no fewer than 4 demonstration projects at 4
universities, that, as competitively selected by the
Commercial Director in accordance with subsection (c)(2),
have--
(A) appropriate research resources and relevant projects to
meet the goals of the demonstration project established by
the Office of Commercial High-Performance Green Buildings;
and
(B) the ability--
(i) to serve as a model for high-performance green building
initiatives, including research and education by achieving
the highest rating offered by the high performance green
building system identified pursuant to section 436(h);
(ii) to identify the most effective ways o use high-
performance green building and landscape technologies to
engage and educate undergraduate and graduate students;
(iii) to effectively implement a high-performance green
building education program for students and occupants;
(iv) to demonstrate the effectiveness of various high-
performance technologies, including their impacts on energy
use and operational costs, in each of the 4 climatic regions
of the United States described in subsection (c)(2)(B); and
(v) to explore quantifiable and nonquantifiable beneficial
impacts on public health and employee and student
performance;
(3) demonstration projects to evaluate replicable
approaches of achieving high performance in actual building
operation in various types of commercial buildings in various
climates; and
(4) deployment activities to disseminate information on and
encourage widespread adoption of technologies, practices, and
policies to achieve zero-net-energy commercial buildings or
low energy use and effective monitoring of energy use in
commercial buildings.
(c) Criteria.--
(1) Federal facilities.--With respect to the existing or
proposed Federal facility at which a demonstration project
under this section is conducted, the Federal facility shall--
(A) be an appropriate model for a project relating to--
(i) the effectiveness of high-performance technologies;
(ii) analysis of materials, components, systems, and
emergency operations in the building, and the impact of those
materials, components, and systems, including the impact on
the health of building occupants;
(iii) life-cycle costing and life-cycle assessment of
building materials and systems; and
(iv) location and design that promote access to the Federal
facility through walking, biking, and mass transit; and
(B) possess sufficient technological and organizational
adaptability.
(2) Universities.--With respect to the 4 universities at
which a demonstration project under this section is
conducted--
(A) the universities should be selected, after careful
review of all applications received containing the required
information, as determined by the Commercial Director, based
on--
(i) successful and established public-private research and
development partnerships;
(ii) demonstrated capabilities to construct or renovate
buildings that meet high indoor environmental quality
standards;
(iii) organizational flexibility;
(iv) technological adaptability;
(v) the demonstrated capacity of at least 1 university to
replicate lessons learned among nearby or sister
universities, preferably by participation in groups or
consortia that promote sustainability;
(vi) the demonstrated capacity of at least 1 university to
have officially-adopted, institution-wide ``high-performance
green building'' guidelines for all campus building projects;
and
(vii) the demonstrated capacity of at least 1 university to
have been recognized by similar institutions as a national
leader in sustainability education and curriculum for
students of the university; and
(B) each university shall be located in a different
climatic region of the United States, each of which regions
shall have, as determined by the Office of Commercial High-
Performance Green Buildings--
(i) a hot, dry climate;
(ii) a hot, humid climate;
(iii) a cold climate; or
(iv) a temperate climate (including a climate with cold
winters and humid summers).
(d) Applications.--To receive a grant under subsection (b),
an eligible applicant shall submit to the Federal Director or
the Commercial Director an application at such time, in such
manner, and containing such information as the Director may
require, including a written assurance that all laborers and
mechanics employed by contractors or subcontractors during
construction, alteration, or repair that is financed, in
whole or in part, by a grant under this section shall be paid
wages at rates not less than those prevailing on similar
construction in the locality, as determined by the Secretary
of Labor in accordance with sections 3141 through 3144, 3146,
and 3147 of title 40, United States Code. The Secretary of
Labor shall, with respect to the labor standards described in
this subsection, have the authority and functions set forth
in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.)
and section 3145 of title 40, United States Code.
(e) Report.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter through
September 30, 2014--
(1) the Federal Director and the Commercial Director shall
submit to the Secretary a report that describes the status of
the demonstration projects; and
(2) each University at which a demonstration project under
this section is conducted shall submit to the Secretary a
report that describes the status of the demonstration
projects under this section.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out the demonstration project
described in section (b)(1) $10,000,000 for the period of
fiscal years 2008 through 2012, and to carry out the
demonstration project described in section (b)(2),
$10,000,000 for the period of fiscal years 2008 through 2012,
to remain available until expended.
SEC. 492. RESEARCH AND DEVELOPMENT.
(a) Establishment.--The Federal Director and the Commercial
Director, jointly and in coordination with the Advisory
Committee, shall--
(1)(A) survey existing research and studies relating to
high-performance green buildings; and
(B) coordinate activities of common interest;
(2) develop and recommend a high-performance green building
research plan that--
(A) identifies information and research needs, including
the relationships between human health, occupant
productivity, safety, security, and accessibility and each
of--
(i) emissions from materials and products in the building;
(ii) natural day lighting;
(iii) ventilation choices and technologies;
(iv) heating, cooling, and system control choices and
technologies;
(v) moisture control and mold;
(vi) maintenance, cleaning, and pest control activities;
(vii) acoustics;
(viii) access to public transportation; and
(ix) other issues relating to the health, comfort,
productivity, and performance of occupants of the building;
(B) promotes the development and dissemination of high-
performance green building measurement tools that, at a
minimum, may be used--
(i) to monitor and assess the life-cycle performance of
facilities (including demonstration projects) built as high-
performance green buildings; and
(ii) to perform life-cycle assessments; and
(C) identifies and tests new and emerging technologies for
high performance green buildings;
(3) assist the budget and life-cycle costing functions of
the Directors' Offices under section 436(d);
(4) study and identify potential benefits of green
buildings relating to security, natural disaster, and
emergency needs of the Federal Government; and
(5) support other research initiatives determined by the
Directors' Offices.
(b) Indoor Air Quality.--The Federal Director, in
consultation with the Administrator of the Environmental
Protection Agency and the Advisory Committee, shall develop
and carry out a comprehensive indoor air quality program for
all Federal facilities to ensure the safety of Federal
workers and facility occupants--
(1) during new construction and renovation of facilities;
and
(2) in existing facilities.
SEC. 493. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION GRANT
PROGRAM FOR LOCAL GOVERNMENTS.
Title III of the Clean Air Act (42 U.S.C. 7601 et seq.) is
amended by adding at the end the following:
``SEC. 329. DEMONSTRATION GRANT PROGRAM FOR LOCAL
GOVERNMENTS.
``(a) Grant Program.--
``(1) In general.--The Administrator shall establish a
demonstration program under which the Administrator shall
provide competitive grants to assist local governments (such
as municipalities and counties), with respect to local
government buildings--
``(A) to deploy cost-effective technologies and practices;
and
``(B) to achieve operational cost savings, through the
application of cost-effective technologies and practices, as
verified by the Administrator.
``(2) Cost sharing.--
``(A) In general.--The Federal share of the cost of an
activity carried out using a grant provided under this
section shall be 40 percent.
``(B) Waiver of non-federal share.--The Administrator may
waive up to 100 percent of the local share of the cost of any
grant under this section should the Administrator determine
that the community is economically distressed, pursuant to
objective economic criteria established by the Administrator
in published guidelines.
``(3) Maximum amount.--The amount of a grant provided under
this subsection shall not exceed $1,000,000.
``(b) Guidelines.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Administrator shall issue
guidelines to implement the grant program established under
subsection (a).
``(2) Requirements.--The guidelines under paragraph (1)
shall establish--
``(A) standards for monitoring and verification of
operational cost savings through the application of cost-
effective technologies and practices reported by grantees
under this section;
``(B) standards for grantees to implement training
programs, and to provide technical
[[Page H14361]]
assistance and education, relating to the retrofit of
buildings using cost-effective technologies and practices;
and
``(C) a requirement that each local government that
receives a grant under this section shall achieve facility-
wide cost savings, through renovation of existing local
government buildings using cost-effective technologies and
practices, of at least 40 percent as compared to the baseline
operational costs of the buildings before the renovation (as
calculated assuming a 3-year, weather-normalized average).
``(c) Compliance With State and Local Law.--Nothing in this
section or any program carried out using a grant provided
under this section supersedes or otherwise affects any State
or local law, to the extent that the State or local law
contains a requirement that is more stringent than the
relevant requirement of this section.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2007 through 2012.
``(e) Reports.--
``(1) In general.--The Administrator shall provide annual
reports to Congress on cost savings achieved and actions
taken and recommendations made under this section, and any
recommendations for further action.
``(2) Final report.--The Administrator shall issue a final
report at the conclusion of the program, including findings,
a summary of total cost savings achieved, and recommendations
for further action.
``(f) Termination.--The program under this section shall
terminate on September 30, 2012.
``(g) Definitions.--In this section, the terms `cost
effective technologies and practices' and `operating cost
savings' shall have the meanings defined in section 401 of
the Energy Independence and Security Act of 2007.''.
SEC. 494. GREEN BUILDING ADVISORY COMMITTEE.
(a) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Federal Director, in
coordination with the Commercial Director, shall establish an
advisory committee, to be known as the ``Green Building
Advisory Committee''.
(b) Membership.--
(1) In general.--The Committee shall be composed of
representatives of, at a minimum--
(A) each agency referred to in section 421(e); and
(B) other relevant agencies and entities, as determined by
the Federal Director, including at least 1 representative of
each of--
(i) State and local governmental green building programs;
(ii) independent green building associations or councils;
(iii) building experts, including architects, material
suppliers, and construction contractors;
(iv) security advisors focusing on national security needs,
natural disasters, and other dire emergency situations;
(v) public transportation industry experts; and
(vi) environmental health experts, including those with
experience in children's health.
(2) Non-federal members.--The total number of non-Federal
members on the Committee at any time shall not exceed 15.
(c) Meetings.--The Federal Director shall establish a
regular schedule of meetings for the Committee.
(d) Duties.--The Committee shall provide advice and
expertise for use by the Federal Director in carrying out the
duties under this subtitle, including such recommendations
relating to Federal activities carried out under sections 434
through 436 as are agreed to by a majority of the members of
the Committee.
(e) FACA Exemption.--The Committee shall not be subject to
section 14 of the Federal Advisory Committee Act (5 U.S.C.
App.).
SEC. 495. ADVISORY COMMITTEE ON ENERGY EFFICIENCY FINANCE.
(a) Establishment.--The Secretary, acting through the
Assistant Secretary of Energy for Energy Efficiency and
Renewable Energy, shall establish an Advisory Committee on
Energy Efficiency Finance to provide advice and
recommendations to the Department on energy efficiency
finance and investment issues, options, ideas, and trends,
and to assist the energy community in identifying practical
ways of lowering costs and increasing investments in energy
efficiency technologies.
(b) Membership.--The advisory committee established under
this section shall have a balanced membership that shall
include members with expertise in--
(1) availability of seed capital;
(2) availability of venture capital;
(3) availability of other sources of private equity;
(4) investment banking with respect to corporate finance;
(5) investment banking with respect to mergers and
acquisitions;
(6) equity capital markets;
(7) debt capital markets;
(8) research analysis;
(9) sales and trading;
(10) commercial lending; and
(11) residential lending.
(c) Termination.--The Advisory Committee on Energy
Efficiency Finance shall terminate on the date that is 10
years after the date of enactment of this Act.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to the
Secretary for carrying out this section.
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
Subtitle A--United States Capitol Complex
SEC. 501. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY
STUDIES.
(a) Studies.--The Architect of the Capitol may conduct
feasibility studies regarding construction of photovoltaic
roofs for the Rayburn House Office Building and the Hart
Senate Office Building.
(b) Report.--Not later than 6 months after the date of
enactment of this Act, the Architect of the Capitol shall
transmit to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Rules and Administration of the Senate a report
on the results of the feasibility studies and recommendations
regarding construction of photovoltaic roofs for the
buildings referred to in subsection (a).
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $500,000.
SEC. 502. CAPITOL COMPLEX E-85 REFUELING STATION.
(a) Construction.--The Architect of the Capitol may
construct a fuel tank and pumping system for E-85 fuel at or
within close proximity to the Capitol Grounds Fuel Station.
(b) Use.--The E-85 fuel tank and pumping system shall be
available for use by all legislative branch vehicles capable
of operating with E-85 fuel, subject to such other
legislative branch agencies reimbursing the Architect of the
Capitol for the costs of E-85 fuel used by such other
legislative branch vehicles.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $640,000 for
fiscal year 2008.
SEC. 503. ENERGY AND ENVIRONMENTAL MEASURES IN CAPITOL
COMPLEX MASTER PLAN.
(a) In General.--To the maximum extent practicable, the
Architect of the Capitol shall include energy efficiency and
conservation measures, greenhouse gas emission reduction
measures, and other appropriate environmental measures in the
Capitol Complex Master Plan.
(b) Report.--Not later than 6 months after the date of
enactment of this Act, the Architect of the Capitol shall
submit to the Committee on Transportation and Infrastructure
of the House of Representatives and the Committee on Rules
and Administration of the Senate a report on the energy
efficiency and conservation measures, greenhouse gas emission
reduction measures, and other appropriate environmental
measures included in the Capitol Complex Master Plan pursuant
to subsection (a).
SEC. 504. PROMOTING MAXIMUM EFFICIENCY IN OPERATION OF
CAPITOL POWER PLANT.
(a) Steam Boilers.--
(1) In general.--The Architect of the Capitol shall take
such steps as may be necessary to operate the steam boilers
at the Capitol Power Plant in the most energy efficient
manner possible to minimize carbon emissions and operating
costs, including adjusting steam pressures and adjusting the
operation of the boilers to take into account variations in
demand, including seasonality, for the use of the system.
(2) Effective date.--The Architect shall implement the
steps required under paragraph (1) not later than 30 days
after the date of the enactment of this Act.
(b) Chiller Plant.--
(1) In general.--The Architect of the Capitol shall take
such steps as may be necessary to operate the chiller plant
at the Capitol Power Plant in the most energy efficient
manner possible to minimize carbon emissions and operating
costs, including adjusting water temperatures and adjusting
the operation of the chillers to take into account variations
in demand, including seasonality, for the use of the system.
(2) Effective date.--The Architect shall implement the
steps required under paragraph (1) not later than 30 days
after the date of the enactment of this Act.
(c) Meters.--Not later than 90 days after the date of the
enactment of this Act, the Architect of the Capitol shall
evaluate the accuracy of the meters in use at the Capitol
Power Plant and correct them as necessary.
(d) Report on Implementation.--Not later than 180 days
after the date of the enactment of this Act, the Architect of
the Capitol shall complete the implementation of the
requirements of this section and submit a report describing
the actions taken and the energy efficiencies achieved to the
Committee on Transportation and Infrastructure of the House
of Representatives, the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on House
Administration of the House of Representatives, and the
Committee on Rules and Administration of the Senate.
SEC. 505. CAPITOL POWER PLANT CARBON DIOXIDE EMISSIONS
FEASIBILITY STUDY AND DEMONSTRATION PROJECTS.
The first section of the Act of March 4, 1911 (2 U.S.C.
2162; 36 Stat. 1414, chapter 285) is amended in the seventh
undesignated paragraph (relating to the Capitol power plant)
under the heading ``Public Buildings'', under the heading
``Under the Department of Interior''--
(1) by striking ``ninety thousand dollars:'' and inserting
``$90,000.''; and
[[Page H14362]]
(2) by striking ``Provided, That hereafter the'' and all
that follows through the end of the proviso and inserting the
following:
``(a) Designation.--The heating, lighting, and power plant
constructed under the terms of the Act approved April 28,
1904 (33 Stat. 479, chapter 1762) shall be known as the
`Capitol Power Plant'.
``(b) Definition.--In this section, the term `carbon
dioxide energy efficiency' means the quantity of electricity
used to power equipment for carbon dioxide capture and
storage or use.
``(c) Feasibility Study.--The Architect of the Capitol
shall conduct a feasibility study evaluating the available
methods to capture, store, and use carbon dioxide emitted
from the Capitol Power Plant as a result of burning fossil
fuels. In carrying out the feasibility study, the Architect
of the Capitol is encouraged to consult with individuals with
expertise in carbon capture and storage or use, including
experts with the Environmental Protection Agency, Department
of Energy, academic institutions, non-profit organizations,
and industry, as appropriate. The study shall consider--
``(1) the availability of technologies to capture and store
or use Capitol Power Plant carbon dioxide emissions;
``(2) strategies to conserve energy and reduce carbon
dioxide emissions at the Capitol Power Plant; and
``(3) other factors as determined by the Architect of the
Capitol.
``(d) Demonstration Projects.--
``(1) In general.--If the feasibility study determines that
a demonstration project to capture and store or use Capitol
Power Plant carbon dioxide emissions is technologically
feasible and economically justified (including direct and
indirect economic and environmental benefits), the Architect
of the Capitol may conduct one or more demonstration projects
to capture and store or use carbon dioxide emitted from the
Capitol Power Plant as a result of burning fossil fuels.
``(2) Factors for consideration.--In carrying out such
demonstration projects, the Architect of the Capitol shall
consider--
``(A) the amount of Capitol Power Plant carbon dioxide
emissions to be captured and stored or used;
``(B) whether the proposed project is able to reduce air
pollutants other than carbon dioxide;
``(C) the carbon dioxide energy efficiency of the proposed
project;
``(D) whether the proposed project is able to use carbon
dioxide emissions;
``(E) whether the proposed project could be expanded to
significantly increase the amount of Capitol Power Plant
carbon dioxide emissions to be captured and stored or used;
``(F) the potential environmental, energy, and educational
benefits of demonstrating the capture and storage or use of
carbon dioxide at the U.S. Capitol; and
``(G) other factors as determined by the Architect of the
Capitol.
``(3) Terms and conditions.--A demonstration project funded
under this section shall be subject to such terms and
conditions as the Architect of the Capitol may prescribe.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out the feasibility study and
demonstration project $3,000,000. Such sums shall remain
available until expended.''.
Subtitle B--Energy Savings Performance Contracting
SEC. 511. AUTHORITY TO ENTER INTO CONTRACTS; REPORTS.
(a) In General.--Section 801(a)(2)(D) of the National
Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(D)) is
amended--
(1) in clause (ii), by inserting ``and'' after the
semicolon at the end;
(2) by striking clause (iii); and
(3) by redesignating clause (iv) as clause (iii).
(b) Reports.--Section 548(a)(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8258(a)(2)) is amended by
inserting ``and any termination penalty exposure'' after
``the energy and cost savings that have resulted from such
contracts''.
(c) Conforming Amendment.--Section 2913 of title 10, United
States Code, is amended by striking subsection (e).
SEC. 512. FINANCING FLEXIBILITY.
Section 801(a)(2) of the National Energy Conservation
Policy Act (42 U.S.C. 8287(a)(2)) is amended by adding at the
end the following:
``(E) Funding options.--In carrying out a contract under
this title, a Federal agency may use any combination of--
``(i) appropriated funds; and
``(ii) private financing under an energy savings
performance contract.''.
SEC. 513. PROMOTING LONG-TERM ENERGY SAVINGS PERFORMANCE
CONTRACTS AND VERIFYING SAVINGS.
Section 801(a)(2) of the National Energy Conservation
Policy Act (42 U.S.C. 8287(a)(2)) (as amended by section 512)
is amended--
(1) in subparagraph (D), by inserting ``beginning on the
date of the delivery order'' after ``25 years''; and
(2) by adding at the end the following:
``(F) Promotion of contracts.--In carrying out this
section, a Federal agency shall not--
``(i) establish a Federal agency policy that limits the
maximum contract term under subparagraph (D) to a period
shorter than 25 years; or
``(ii) limit the total amount of obligations under energy
savings performance contracts or other private financing of
energy savings measures.
``(G) Measurement and verification requirements for private
financing.--
``(i) In general.--In the case of energy savings
performance contracts, the evaluations and savings
measurement and verification required under paragraphs (2)
and (4) of section 543(f) shall be used by a Federal agency
to meet the requirements for the need for energy audits,
calculation of energy savings, and any other evaluation of
costs and savings needed to implement the guarantee of
savings under this section.
``(ii) Modification of existing contracts.--Not later than
18 months after the date of enactment of this subparagraph,
each Federal agency shall, to the maximum extent practicable,
modify any indefinite delivery and indefinite quantity energy
savings performance contracts, and other indefinite delivery
and indefinite quantity contracts using private financing, to
conform to the amendments made by subtitle B of title V of
the Energy Independence and Security Act of 2007.''.
SEC. 514. PERMANENT REAUTHORIZATION.
Section 801 of the National Energy Conservation Policy Act
(42 U.S.C. 8287) is amended by striking subsection (c).
SEC. 515. DEFINITION OF ENERGY SAVINGS.
Section 804(2) of the National Energy Conservation Policy
Act (42 U.S.C. 8287c(2)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and indenting
appropriately;
(2) by striking ``means a reduction'' and inserting
``means--
``(A) a reduction'';
(3) by striking the period at the end and inserting a
semicolon; and
(4) by adding at the end the following:
``(B) the increased efficient use of an existing energy
source by cogeneration or heat recovery;
``(C) if otherwise authorized by Federal or State law
(including regulations), the sale or transfer of electrical
or thermal energy generated on-site from renewable energy
sources or cogeneration, but in excess of Federal needs, to
utilities or non-Federal energy users; and
``(D) the increased efficient use of existing water sources
in interior or exterior applications.''.
SEC. 516. RETENTION OF SAVINGS.
Section 546(c) of the National Energy Conservation Policy
Act (42 U.S.C. 8256(c)) is amended by striking paragraph (5).
SEC. 517. TRAINING FEDERAL CONTRACTING OFFICERS TO NEGOTIATE
ENERGY EFFICIENCY CONTRACTS.
(a) Program.--The Secretary shall create and administer in
the Federal Energy Management Program a training program to
educate Federal contract negotiation and contract management
personnel so that the contract officers are prepared to--
(1) negotiate energy savings performance contracts;
(2) conclude effective and timely contracts for energy
efficiency services with all companies offering energy
efficiency services; and
(3) review Federal contracts for all products and services
for the potential energy efficiency opportunities and
implications of the contracts.
(b) Schedule.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall plan, staff,
announce, and begin training under the Federal Energy
Management Program.
(c) Personnel to Be Trained.--Personnel appropriate to
receive training under the Federal Energy Management Program
shall be selected by and sent for the training from--
(1) the Department of Defense;
(2) the Department of Veterans Affairs;
(3) the Department;
(4) the General Services Administration;
(5) the Department of Housing and Urban Development;
(6) the United States Postal Service; and
(7) all other Federal agencies and departments that enter
contracts for buildings, building services, electricity and
electricity services, natural gas and natural gas services,
heating and air conditioning services, building fuel
purchases, and other types of procurement or service
contracts determined by the Secretary, in carrying out the
Federal Energy Management Program, to offer the potential for
energy savings and greenhouse gas emission reductions if
negotiated with taking into account those goals.
(d) Trainers.--Training under the Federal Energy Management
Program may be conducted by--
(1) attorneys or contract officers with experience in
negotiating and managing contracts described in subsection
(c)(7) from any agency, except that the Secretary shall
reimburse the related salaries and expenses of the attorneys
or contract officers from amounts made available for carrying
out this section to the extent the attorneys or contract
officers are not employees of the Department; and
(2) private experts hired by the Secretary for the purposes
of this section, except that the Secretary may not hire
experts who are simultaneously employed by any company under
contract to provide energy efficiency services to the Federal
Government.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
[[Page H14363]]
$750,000 for each of fiscal years 2008 through 2012.
SEC. 518. STUDY OF ENERGY AND COST SAVINGS IN NONBUILDING
APPLICATIONS.
(a) Definitions.--In this section:
(1) Nonbuilding application.--The term ``nonbuilding
application'' means--
(A) any class of vehicles, devices, or equipment that is
transportable under the power of the applicable vehicle,
device, or equipment by land, sea, or air and that consumes
energy from any fuel source for the purpose of--
(i) that transportation; or
(ii) maintaining a controlled environment within the
vehicle, device, or equipment; and
(B) any federally-owned equipment used to generate
electricity or transport water.
(2) Secondary savings.--
(A) In general.--The term ``secondary savings'' means
additional energy or cost savings that are a direct
consequence of the energy savings that result from the energy
efficiency improvements that were financed and implemented
pursuant to an energy savings performance contract.
(B) Inclusions.--The term ``secondary savings'' includes--
(i) energy and cost savings that result from a reduction in
the need for fuel delivery and logistical support;
(ii) personnel cost savings and environmental benefits; and
(iii) in the case of electric generation equipment, the
benefits of increased efficiency in the production of
electricity, including revenues received by the Federal
Government from the sale of electricity so produced.
(b) Study.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary and the Secretary of
Defense shall jointly conduct, and submit to Congress and the
President a report of, a study of the potential for the use
of energy savings performance contracts to reduce energy
consumption and provide energy and cost savings in
nonbuilding applications.
(2) Requirements.--The study under this subsection shall
include--
(A) an estimate of the potential energy and cost savings to
the Federal Government, including secondary savings and
benefits, from increased efficiency in nonbuilding
applications;
(B) an assessment of the feasibility of extending the use
of energy savings performance contracts to nonbuilding
applications, including an identification of any regulatory
or statutory barriers to that use; and
(C) such recommendations as the Secretary and Secretary of
Defense determine to be appropriate.
Subtitle C--Energy Efficiency in Federal Agencies
SEC. 521. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT
OF ENERGY HEADQUARTERS BUILDING.
(a) In General.--The Administrator of General Services
shall install a photovoltaic system, as set forth in the Sun
Wall Design Project, for the headquarters building of the
Department located at 1000 Independence Avenue, SW.,
Washington, DC, commonly known as the Forrestal Building.
(b) Funding.--There shall be available from the Federal
Buildings Fund established by section 592 of title 40, United
States Code, $30,000,000 to carry out this section. Such sums
shall be derived from the unobligated balance of amounts made
available from the Fund for fiscal year 2007, and prior
fiscal years, for repairs and alternations and other
activities (excluding amounts made available for the energy
program). Such sums shall remain available until expended.
SEC. 522. PROHIBITION ON INCANDESCENT LAMPS BY COAST GUARD.
(a) Prohibition.--Except as provided by subsection (b), on
and after January 1, 2009, a general service incandescent
lamp shall not be purchased or installed in a Coast Guard
facility by or on behalf of the Coast Guard.
(b) Exception.--A general service incandescent lamp may be
purchased, installed, and used in a Coast Guard facility
whenever the application of a general service incandescent
lamp is--
(1) necessary due to purpose or design, including medical,
security, and industrial applications;
(2) reasonable due to the architectural or historical value
of a light fixture installed before January 1, 2009; or
(3) the Commandant of the Coast Guard determines that
operational requirements necessitate the use of a general
service incandescent lamp.
(c) Limitation.--In this section, the term ``facility''
does not include a vessel or aircraft of the Coast Guard.
SEC. 523. STANDARD RELATING TO SOLAR HOT WATER HEATERS.
Section 305(a)(3)(A) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(A)) is amended--
(1) in clause (i)(II), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(iii) if lifecycle cost-effective, as compared to other
reasonably available technologies, not less than 30 percent
of the hot water demand for each new Federal building or
Federal building undergoing a major renovation be met through
the installation and use of solar hot water heaters.''.
SEC. 524. FEDERALLY-PROCURED APPLIANCES WITH STANDBY POWER.
Section 553 of the National Energy Conservation Policy Act
(42 U.S.C. 8259b) is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following:
``(e) Federally-Procured Appliances With Standby Power.--
``(1) Definition of eligible product.--In this subsection,
the term `eligible product' means a commercially available,
off-the-shelf product that--
``(A)(i) uses external standby power devices; or
``(ii) contains an internal standby power function; and
``(B) is included on the list compiled under paragraph (4).
``(2) Federal purchasing requirement.--Subject to paragraph
(3), if an agency purchases an eligible product, the agency
shall purchase--
``(A) an eligible product that uses not more than 1 watt in
the standby power consuming mode of the eligible product; or
``(B) if an eligible product described in subparagraph (A)
is not available, the eligible product with the lowest
available standby power wattage in the standby power
consuming mode of the eligible product.
``(3) Limitation.--The requirements of paragraph (2) shall
apply to a purchase by an agency only if--
``(A) the lower-wattage eligible product is--
``(i) lifecycle cost-effective; and
``(ii) practicable; and
``(B) the utility and performance of the eligible product
is not compromised by the lower wattage requirement.
``(4) Eligible products.--The Secretary, in consultation
with the Secretary of Defense, the Administrator of the
Environmental Protection Agency, and the Administrator of
General Services, shall compile a publicly accessible list of
cost-effective eligible products that shall be subject to the
purchasing requirements of paragraph (2).''.
SEC. 525. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Amendments.--Section 553 of the National Energy
Conservation Policy Act (42 U.S.C. 8259b) is amended--
(1) in subsection (b)(1), by inserting ``in a product
category covered by the Energy Star program or the Federal
Energy Management Program for designated products'' after
``energy consuming product''; and
(2) in the second sentence of subsection (c)--
(A) by inserting ``list in their catalogues, represent as
available, and'' after ``Logistics Agency shall''; and
(B) by striking ``where the agency'' and inserting ``in
which the head of the agency''.
(b) Catalogue Listing Deadline.--Not later than 9 months
after the date of enactment of this Act, the General Services
Administration and the Defense Logistics Agency shall ensure
that the requirement established by the amendment made by
subsection (a)(2)(A) has been fully complied with.
SEC. 526. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.
No Federal agency shall enter into a contract for
procurement of an alternative or synthetic fuel, including a
fuel produced from nonconventional petroleum sources, for any
mobility-related use, other than for research or testing,
unless the contract specifies that the lifecycle greenhouse
gas emissions associated with the production and combustion
of the fuel supplied under the contract must, on an ongoing
basis, be less than or equal to such emissions from the
equivalent conventional fuel produced from conventional
petroleum sources.
SEC. 527. GOVERNMENT EFFICIENCY STATUS REPORTS.
(a) In General.--Each Federal agency subject to any of the
requirements of this title or the amendments made by this
title shall compile and submit to the Director of the Office
of Management and Budget an annual Government efficiency
status report on--
(1) compliance by the agency with each of the requirements
of this title and the amendments made by this title;
(2) the status of the implementation by the agency of
initiatives to improve energy efficiency, reduce energy
costs, and reduce emissions of greenhouse gases; and
(3) savings to the taxpayers of the United States resulting
from mandated improvements under this title and the
amendments made by this title
(b) Submission.--The report shall be submitted--
(1) to the Director at such time as the Director requires;
(2) in electronic, not paper, format; and
(3) consistent with related reporting requirements.
SEC. 528. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.
(a) Reports.--Not later than April 1 of each year, the
Director of the Office of Management and Budget shall submit
an annual Government efficiency report to the Committee on
Oversight and Government Reform of the House of
Representatives and the Committee on Governmental Affairs of
the Senate, which shall contain--
(1) a summary of the information reported by agencies under
section 527;
(2) an evaluation of the overall progress of the Federal
Government toward achieving the goals of this title and the
amendments made by this title; and
[[Page H14364]]
(3) recommendations for additional actions necessary to
meet the goals of this title and the amendments made by this
title.
(b) Scorecards.--The Director of the Office of Management
and Budget shall include in any annual energy scorecard the
Director is otherwise required to submit a description of the
compliance of each agency with the requirements of this title
and the amendments made by this title.
SEC. 529. ELECTRICITY SECTOR DEMAND RESPONSE.
(a) In General.--Title V of the National Energy
Conservation Policy Act (42 U.S.C. 8241 et seq.) is amended
by adding at the end the following:
``PART 5--PEAK DEMAND REDUCTION
``SEC. 571. NATIONAL ACTION PLAN FOR DEMAND RESPONSE.
``(a) National Assessment and Report.--The Federal Energy
Regulatory Commission (`Commission') shall conduct a National
Assessment of Demand Response. The Commission shall, within
18 months of the date of enactment of this part, submit a
report to Congress that includes each of the following:
``(1) Estimation of nationwide demand response potential in
5 and 10 year horizons, including data on a State-by-State
basis, and a methodology for updates of such estimates on an
annual basis.
``(2) Estimation of how much of this potential can be
achieved within 5 and 10 years after the enactment of this
part accompanied by specific policy recommendations that if
implemented can achieve the estimated potential. Such
recommendations shall include options for funding and/or
incentives for the development of demand response resources.
``(3) The Commission shall further note any barriers to
demand response programs offering flexible, non-
discriminatory, and fairly compensatory terms for the
services and benefits made available, and shall provide
recommendations for overcoming such barriers.
``(4) The Commission shall seek to take advantage of
preexisting research and ongoing work, and shall insure that
there is no duplication of effort.
``(b) National Action Plan on Demand Response.--The
Commission shall further develop a National Action Plan on
Demand Response, soliciting and accepting input and
participation from a broad range of industry stakeholders,
State regulatory utility commissioners, and non-governmental
groups. The Commission shall seek consensus where possible,
and decide on optimum solutions to issues that defy
consensus. Such Plan shall be completed within one year after
the completion of the National Assessment of Demand Response,
and shall meet each of the following objectives:
``(1) Identification of requirements for technical
assistance to States to allow them to maximize the amount of
demand response resources that can be developed and deployed.
``(2) Design and identification of requirements for
implementation of a national communications program that
includes broad-based customer education and support.
``(3) Development or identification of analytical tools,
information, model regulatory provisions, model contracts,
and other support materials for use by customers, states,
utilities and demand response providers.
``(c) Upon completion, the National Action Plan on Demand
Response shall be published, together with any favorable and
dissenting comments submitted by participants in its
preparation. Six months after publication, the Commission,
together with the Secretary of Energy, shall submit to
Congress a proposal to implement the Action Plan, including
specific proposed assignments of responsibility, proposed
budget amounts, and any agreements secured for participation
from State and other participants.
``(d) Authorization.--There are authorized to be
appropriated to the Commission to carry out this section not
more than $10,000,000 for each of the fiscal years 2008,
2009, and 2010.''.
(b) Table of Contents.--The table of contents for the
National Energy Conservation Policy Act (42 U.S.C. 8201 note)
is amended by adding after the items relating to part 4 of
title V the following:
``Part 5--Peak Demand Reduction
``Sec. 571. National Action Plan for Demand Response.''.
Subtitle D--Energy Efficiency of Public Institutions
SEC. 531. REAUTHORIZATION OF STATE ENERGY PROGRAMS.
Section 365(f) of the Energy Policy and Conservation Act
(42 U.S.C. 6325(f)) is amended by striking ``$100,000,000 for
each of the fiscal years 2006 and 2007 and $125,000,000 for
fiscal year 2008'' and inserting ``$125,000,000 for each of
fiscal years 2007 through 2012''.
SEC. 532. UTILITY ENERGY EFFICIENCY PROGRAMS.
(a) Electric Utilities.--Section 111(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))
is amended by adding at the end the following:
``(16) Integrated resource planning.--Each electric utility
shall--
``(A) integrate energy efficiency resources into utility,
State, and regional plans; and
``(B) adopt policies establishing cost-effective energy
efficiency as a priority resource.
``(17) Rate design modifications to promote energy
efficiency investments.--
``(A) In general.--The rates allowed to be charged by any
electric utility shall--
``(i) align utility incentives with the delivery of cost-
effective energy efficiency; and
``(ii) promote energy efficiency investments.
``(B) Policy options.--In complying with subparagraph (A),
each State regulatory authority and each nonregulated utility
shall consider--
``(i) removing the throughput incentive and other
regulatory and management disincentives to energy efficiency;
``(ii) providing utility incentives for the successful
management of energy efficiency programs;
``(iii) including the impact on adoption of energy
efficiency as 1 of the goals of retail rate design,
recognizing that energy efficiency must be balanced with
other objectives;
``(iv) adopting rate designs that encourage energy
efficiency for each customer class;
``(v) allowing timely recovery of energy efficiency-related
costs; and
``(vi) offering home energy audits, offering demand
response programs, publicizing the financial and
environmental benefits associated with making home energy
efficiency improvements, and educating homeowners about all
existing Federal and State incentives, including the
availability of low-cost loans, that make energy efficiency
improvements more affordable.''.
(b) Natural Gas Utilities.--Section 303(b) of the Public
Utility Regulatory Policies Act of 1978 (15 U.S.C. 3203(b))
is amended by adding at the end the following:
``(5) Energy efficiency.--Each natural gas utility shall--
``(A) integrate energy efficiency resources into the plans
and planning processes of the natural gas utility; and
``(B) adopt policies that establish energy efficiency as a
priority resource in the plans and planning processes of the
natural gas utility.
``(6) Rate design modifications to promote energy
efficiency investments.--
``(A) In general.--The rates allowed to be charged by a
natural gas utility shall align utility incentives with the
deployment of cost-effective energy efficiency.
``(B) Policy options.--In complying with subparagraph (A),
each State regulatory authority and each nonregulated utility
shall consider--
``(i) separating fixed-cost revenue recovery from the
volume of transportation or sales service provided to the
customer;
``(ii) providing to utilities incentives for the successful
management of energy efficiency programs, such as allowing
utilities to retain a portion of the cost-reducing benefits
accruing from the programs;
``(iii) promoting the impact on adoption of energy
efficiency as 1 of the goals of retail rate design,
recognizing that energy efficiency must be balanced with
other objectives; and
``(iv) adopting rate designs that encourage energy
efficiency for each customer class.
For purposes of applying the provisions of this subtitle to
this paragraph, any reference in this subtitle to the date of
enactment of this Act shall be treated as a reference to the
date of enactment of this paragraph.''.
(c) Conforming Amendment.--Section 303(a) of the Public
Utility Regulatory Policies Act of 1978 U.S.C. 3203(a)) is
amended by striking ``and (4)'' inserting ``(4), (5), and
(6)''.
Subtitle E--Energy Efficiency and Conservation Block Grants
SEC. 541. DEFINITIONS.
In this subtitle:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State;
(B) an eligible unit of local government; and
(C) an Indian tribe.
(2) Eligible unit of local government.--The term ``eligible
unit of local government'' means--
(A) an eligible unit of local government-alternative 1; and
(B) an eligible unit of local government-alternative 2.
(3)(A) Eligible unit of local government-alternative 1.--
The term ``eligible unit of local government-alternative 1''
means--
(i) a city with a population--
(I) of at least 35,000; or
(II) that causes the city to be 1 of the 10 highest-
populated cities of the State in which the city is located;
and
(ii) a county with a population--
(I) of at least 200,000; or
(II) that causes the county to be 1 of the 10 highest-
populated counties of the State in which the county is
located.
(B) Eligible unit of local government-alternative 2.--The
term ``eligible unit of local government-alternative 2''
means--
(i) a city with a population of at least 50,000; or
(ii) a county with a population of at least 200,000.
(4) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(5) Program.--The term ``program'' means the Energy
Efficiency and Conservation Block Grant Program established
under section 542(a).
(6) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United States.
[[Page H14365]]
SEC. 542. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT
PROGRAM.
(a) Establishment.--The Secretary shall establish a
program, to be known as the ``Energy Efficiency and
Conservation Block Grant Program'', under which the Secretary
shall provide grants to eligible entities in accordance with
this subtitle.
(b) Purpose.--The purpose of the program shall be to assist
eligible entities in implementing strategies--
(1) to reduce fossil fuel emissions created as a result of
activities within the jurisdictions of eligible entities in
manner that--
(A) is environmentally sustainable; and
(B) to the maximum extent practicable, maximizes benefits
for local and regional communities;
(2) to reduce the total energy use of the eligible
entities; and
(3) to improve energy efficiency in--
(A) the transportation sector;
(B) the building sector; and
(C) other appropriate sectors.
SEC. 543. ALLOCATION OF FUNDS.
(a) In General.--Of amounts made available to provide
grants under this subtitle for each fiscal year, the
Secretary shall allocate--
(1) 68 percent to eligible units of local government in
accordance with subsection (b);
(2) 28 percent to States in accordance with subsection (c);
(3) 2 percent to Indian tribes in accordance with
subsection (d); and
(4) 2 percent for competitive grants under section 546.
(b) Eligible Units of Local Government.--Of amounts
available for distribution to eligible units of local
government under subsection (a)(1), the Secretary shall
provide grants to eligible units of local government under
this section based on a formula established by the Secretary
according to--
(1) the populations served by the eligible units of local
government, according to the latest available decennial
census; and
(2) the daytime populations of the eligible units of local
government and other similar factors (such as square footage
of commercial, office, and industrial space), as determined
by the Secretary.
(c) States.--Of amounts available for distribution to
States under subsection (a)(2), the Secretary shall provide--
(1) not less than 1.25 percent to each State; and
(2) the remainder among the States, based on a formula to
be established by the Secretary that takes into account--
(A) the population of each State; and
(B) any other criteria that the Secretary determines to be
appropriate.
(d) Indian Tribes.--Of amounts available for distribution
to Indian tribes under subsection (a)(3), the Secretary shall
establish a formula for allocation of the amounts to Indian
tribes, taking into account any factors that the Secretary
determines to be appropriate.
(e) Publication of Allocation Formulas.--Not later than 90
days before the beginning of each fiscal year for which
grants are provided under this subtitle, the Secretary shall
publish in the Federal Register the formulas for allocation
established under this section.
(f) State and Local Advisory Committee.--The Secretary
shall establish a State and local advisory committee to
advise the Secretary regarding administration,
implementation, and evaluation of the program.
SEC. 544. USE OF FUNDS.
An eligible entity may use a grant received under this
subtitle to carry out activities to achieve the purposes of
the program, including--
(1) development and implementation of an energy efficiency
and conservation strategy under section 545(b);
(2) retaining technical consultant services to assist the
eligible entity in the development of such a strategy,
including--
(A) formulation of energy efficiency, energy conservation,
and energy usage goals;
(B) identification of strategies to achieve those goals--
(i) through efforts to increase energy efficiency and
reduce energy consumption; and
(ii) by encouraging behavioral changes among the population
served by the eligible entity;
(C) development of methods to measure progress in achieving
the goals;
(D) development and publication of annual reports to the
population served by the eligible entity describing--
(i) the strategies and goals; and
(ii) the progress made in achieving the strategies and
goals during the preceding calendar year; and
(E) other services to assist in the implementation of the
energy efficiency and conservation strategy;
(3) conducting residential and commercial building energy
audits;
(4) establishment of financial incentive programs for
energy efficiency improvements;
(5) the provision of grants to nonprofit organizations and
governmental agencies for the purpose of performing energy
efficiency retrofits;
(6) development and implementation of energy efficiency and
conservation programs for buildings and facilities within the
jurisdiction of the eligible entity, including--
(A) design and operation of the programs;
(B) identifying the most effective methods for achieving
maximum participation and efficiency rates;
(C) public education;
(D) measurement and verification protocols; and
(E) identification of energy efficient technologies;
(7) development and implementation of programs to conserve
energy used in transportation, including--
(A) use of flex time by employers;
(B) satellite work centers;
(C) development and promotion of zoning guidelines or
requirements that promote energy efficient development;
(D) development of infrastructure, such as bike lanes and
pathways and pedestrian walkways;
(E) synchronization of traffic signals; and
(F) other measures that increase energy efficiency and
decrease energy consumption;
(8) development and implementation of building codes and
inspection services to promote building energy efficiency;
(9) application and implementation of energy distribution
technologies that significantly increase energy efficiency,
including--
(A) distributed resources; and
(B) district heating and cooling systems;
(10) activities to increase participation and efficiency
rates for material conservation programs, including source
reduction, recycling, and recycled content procurement
programs that lead to increases in energy efficiency;
(11) the purchase and implementation of technologies to
reduce, capture, and, to the maximum extent practicable, use
methane and other greenhouse gases generated by landfills or
similar sources;
(12) replacement of traffic signals and street lighting
with energy efficient lighting technologies, including--
(A) light emitting diodes; and
(B) any other technology of equal or greater energy
efficiency;
(13) development, implementation, and installation on or in
any government building of the eligible entity of onsite
renewable energy technology that generates electricity from
renewable resources, including--
(A) solar energy;
(B) wind energy;
(C) fuel cells; and
(D) biomass; and
(14) any other appropriate activity, as determined by the
Secretary, in consultation with--
(A) the Administrator of the Environmental Protection
Agency;
(B) the Secretary of Transportation; and
(C) the Secretary of Housing and Urban Development.
SEC. 545. REQUIREMENTS FOR ELIGIBLE ENTITIES.
(a) Construction Requirement.--
(1) In general.--To be eligible to receive a grant under
the program, each eligible applicant shall submit to the
Secretary a written assurance that all laborers and mechanics
employed by any contractor or subcontractor of the eligible
entity during any construction, alteration, or repair
activity funded, in whole or in part, by the grant shall be
paid wages at rates not less than the prevailing wages for
similar construction activities in the locality, as
determined by the Secretary of Labor, in accordance with
sections 3141 through 3144, 3146, and 3147 of title 40,
United States Code.
(2) Secretary of labor.--With respect to the labor
standards referred to in paragraph (1), the Secretary of
Labor shall have the authority and functions described in--
(A) Reorganization Plan Numbered 14 of 1950 (5 U.S.C. 903
note); and
(B) section 3145 of title 40, United States Code.
(b) Eligible Units of Local Government and Indian Tribes.--
(1) Proposed strategy.--
(A) In general.--Not later than 1 year after the date on
which an eligible unit of local government or Indian tribe
receives a grant under this subtitle, the eligible unit of
local government or Indian tribe shall submit to the
Secretary a proposed energy efficiency and conservation
strategy in accordance with this paragraph.
(B) Inclusions.--The proposed strategy under subparagraph
(A) shall include--
(i) a description of the goals of the eligible unit of
local government or Indian tribe, in accordance with the
purposes of this subtitle, for increased energy efficiency
and conservation in the jurisdiction of the eligible unit of
local government or Indian tribe; and
(ii) a plan for the use of the grant to assist the eligible
unit of local government or Indian tribe in achieving those
goals, in accordance with section 544.
(C) Requirements for eligible units of local government.--
In developing the strategy under subparagraph (A), an
eligible unit of local government shall--
(i) take into account any plans for the use of funds by
adjacent eligible units of local governments that receive
grants under the program; and
(ii) coordinate and share information with the State in
which the eligible unit of local government is located
regarding activities carried out using the grant to maximize
the energy efficiency and conservation benefits under this
subtitle.
(2) Approval by secretary.--
(A) In general.--The Secretary shall approve or disapprove
a proposed strategy under paragraph (1) by not later than 120
days after the date of submission of the proposed strategy.
[[Page H14366]]
(B) Disapproval.--If the Secretary disapproves a proposed
strategy under subparagraph (A)--
(i) the Secretary shall provide to the eligible unit of
local government or Indian tribe the reasons for the
disapproval; and
(ii) the eligible unit of local government or Indian tribe
may revise and resubmit the proposed strategy as many times
as necessary until the Secretary approves a proposed
strategy.
(C) Requirement.--The Secretary shall not provide to an
eligible unit of local government or Indian tribe any grant
under the program until a proposed strategy of the eligible
unit of local government or Indian tribe is approved by the
Secretary under this paragraph.
(3) Limitations on use of funds.--Of amounts provided to an
eligible unit of local government or Indian tribe under the
program, an eligible unit of local government or Indian tribe
may use--
(A) for administrative expenses, excluding the cost of
meeting the reporting requirements of this subtitle, an
amount equal to the greater of--
(i) 10 percent; and
(ii) $75,000;
(B) for the establishment of revolving loan funds, an
amount equal to the greater of--
(i) 20 percent; and
(ii) $250,000; and
(C) for the provision of subgrants to nongovernmental
organizations for the purpose of assisting in the
implementation of the energy efficiency and conservation
strategy of the eligible unit of local government or Indian
tribe, an amount equal to the greater of--
(i) 20 percent; and
(ii) $250,000.
(4) Annual report.--Not later than 2 years after the date
on which funds are initially provided to an eligible unit of
local government or Indian tribe under the program, and
annually thereafter, the eligible unit of local government or
Indian tribe shall submit to the Secretary a report
describing--
(A) the status of development and implementation of the
energy efficiency and conservation strategy of the eligible
unit of local government or Indian tribe; and
(B) as practicable, an assessment of energy efficiency
gains within the jurisdiction of the eligible unit of local
government or Indian tribe.
(c) States.--
(1) Distribution of funds.--
(A) In general.--A State that receives a grant under the
program shall use not less than 60 percent of the amount
received to provide subgrants to units of local government in
the State that are not eligible units of local government.
(B) Deadline.--The State shall provide the subgrants
required under subparagraph (A) by not later than 180 days
after the date on which the Secretary approves a proposed
energy efficiency and conservation strategy of the State
under paragraph (3).
(2) Revision of conservation plan; proposed strategy.--Not
later than 120 days after the date of enactment of this Act,
each State shall--
(A) modify the State energy conservation plan of the State
under section 362 of the Energy Policy and Conservation Act
(42 U.S.C. 6322) to establish additional goals for increased
energy efficiency and conservation in the State; and
(B) submit to the Secretary a proposed energy efficiency
and conservation strategy that--
(i) establishes a process for providing subgrants as
required under paragraph (1); and
(ii) includes a plan of the State for the use of funds
received under a the program to assist the State in achieving
the goals established under subparagraph (A), in accordance
with sections 542(b) and 544.
(3) Approval by secretary.--
(A) In general.--The Secretary shall approve or disapprove
a proposed strategy under paragraph (2)(B) by not later than
120 days after the date of submission of the proposed
strategy.
(B) Disapproval.--If the Secretary disapproves a proposed
strategy under subparagraph (A)--
(i) the Secretary shall provide to the State the reasons
for the disapproval; and
(ii) the State may revise and resubmit the proposed
strategy as many times as necessary until the Secretary
approves a proposed strategy.
(C) Requirement.--The Secretary shall not provide to a
State any grant under the program until a proposed strategy
of the State is approved the Secretary under this paragraph.
(4) Limitations on use of funds.--A State may use not more
than 10 percent of amounts provided under the program for
administrative expenses.
(5) Annual reports.--Each State that receives a grant under
the program shall submit to the Secretary an annual report
that describes--
(A) the status of development and implementation of the
energy efficiency and conservation strategy of the State
during the preceding calendar year;
(B) the status of the subgrant program of the State under
paragraph (1);
(C) the energy efficiency gains achieved through the energy
efficiency and conservation strategy of the State during the
preceding calendar year; and
(D) specific energy efficiency and conservation goals of
the State for subsequent calendar years.
SEC. 546. COMPETITIVE GRANTS.
(a) In General.--Of the total amount made available for
each fiscal year to carry out this subtitle, the Secretary
shall use not less than 2 percent to provide grants under
this section, on a competitive basis, to--
(1) units of local government (including Indian tribes)
that are not eligible entities; and
(2) consortia of units of local government described in
paragraph (1).
(b) Applications.--To be eligible to receive a grant under
this section, a unit of local government or consortia shall
submit to the Secretary an application at such time, in such
manner, and containing such information as the Secretary may
require, including a plan of the unit of local government to
carry out an activity described in section 544.
(c) Priority.--In providing grants under this section, the
Secretary shall give priority to units of local government--
(1) located in States with populations of less than
2,000,000; or
(2) that plan to carry out projects that would result in
significant energy efficiency improvements or reductions in
fossil fuel use.
SEC. 547. REVIEW AND EVALUATION.
(a) In General.--The Secretary may review and evaluate the
performance of any eligible entity that receives a grant
under the program, including by conducting an audit, as the
Secretary determines to be appropriate.
(b) Withholding of Funds.--The Secretary may withhold from
an eligible entity any portion of a grant to be provided to
the eligible entity under the program if the Secretary
determines that the eligible entity has failed to achieve
compliance with--
(1) any applicable guideline or regulation of the Secretary
relating to the program, including the misuse or
misappropriation of funds provided under the program; or
(2) the energy efficiency and conservation strategy of the
eligible entity.
SEC. 548. FUNDING.
(a) Authorization of Appropriations.--
(1) Grants.--There is authorized to be appropriated to the
Secretary for the provision of grants under the program
$2,000,000,000 for each of fiscal years 2008 through 2012;
provided that 49 percent of the appropriated funds shall be
distributed using the definition of eligible unit of local
government-alternative 1 in section 541(3)(A) and 49 percent
of the appropriated funds shall be distributed using the
definition of eligible unit of local government-alternative 2
in section 541(3)(B).
(2) Administrative costs.--There are authorized to be
appropriated to the Secretary for administrative expenses of
the program--
(A) $20,000,000 for each of fiscal years 2008 and 2009;
(B) $25,000,000 for each of fiscal years 2010 and 2011; and
(C) $30,000,000 for fiscal year 2012.
(b) Maintenance of Funding.--The funding provided under
this section shall supplement (and not supplant) other
Federal funding provided under--
(1) a State energy conservation plan established under part
D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.); or
(2) the Weatherization Assistance Program for Low-Income
Persons established under part A of title IV of the Energy
Conservation and Production Act (42 U.S.C. 6861 et seq.).
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
Subtitle A--Solar Energy
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ``Solar Energy Research
and Advancement Act of 2007''.
SEC. 602. THERMAL ENERGY STORAGE RESEARCH AND DEVELOPMENT
PROGRAM.
(a) Establishment.--The Secretary shall establish a program
of research and development to provide lower cost and more
viable thermal energy storage technologies to enable the
shifting of electric power loads on demand and extend the
operating time of concentrating solar power electric
generating plants.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section $5,000,000 for fiscal year 2008, $7,000,000 for
fiscal year 2009, $9,000,000 for fiscal year 2010,
$10,000,000 for fiscal year 2011, and $12,000,000 for fiscal
year 2012.
SEC. 603. CONCENTRATING SOLAR POWER COMMERCIAL APPLICATION
STUDIES.
(a) Integration.--The Secretary shall conduct a study on
methods to integrate concentrating solar power and utility-
scale photovoltaic systems into regional electricity
transmission systems, and to identify new transmission or
transmission upgrades needed to bring electricity from high
concentrating solar power resource areas to growing electric
power load centers throughout the United States. The study
shall analyze and assess cost-effective approaches for
management and large-scale integration of concentrating solar
power and utility-scale photovoltaic systems into regional
electric transmission grids to improve electric reliability,
to efficiently manage load, and to reduce demand on the
natural gas transmission system for electric power. The
Secretary shall submit a report to Congress on the results of
this study not later than 12 months after the date of
enactment of this Act.
[[Page H14367]]
(b) Water Consumption.--Not later than 6 months after the
date of the enactment of this Act, the Secretary of Energy
shall transmit to Congress a report on the results of a study
on methods to reduce the amount of water consumed by
concentrating solar power systems.
SEC. 604. SOLAR ENERGY CURRICULUM DEVELOPMENT AND
CERTIFICATION GRANTS.
(a) Establishment.--The Secretary shall establish in the
Office of Solar Energy Technologies a competitive grant
program to create and strengthen solar industry workforce
training and internship programs in installation, operation,
and maintenance of solar energy products. The goal of this
program is to ensure a supply of well-trained individuals to
support the expansion of the solar energy industry.
(b) Authorized Activities.--Grant funds may be used to
support the following activities:
(1) Creation and development of a solar energy curriculum
appropriate for the local educational, entrepreneurial, and
environmental conditions, including curriculum for community
colleges.
(2) Support of certification programs for individual solar
energy system installers, instructors, and training programs.
(3) Internship programs that provide hands-on participation
by students in commercial applications.
(4) Activities required to obtain certification of training
programs and facilities by an industry-accepted quality-
control certification program.
(5) Incorporation of solar-specific learning modules into
traditional occupational training and internship programs for
construction-related trades.
(6) The purchase of equipment necessary to carry out
activities under this section.
(7) Support of programs that provide guidance and updates
to solar energy curriculum instructors.
(c) Administration of Grants.--Grants may be awarded under
this section for up to 3 years. The Secretary shall award
grants to ensure sufficient geographic distribution of
training programs nationally. Grants shall only be awarded
for programs certified by an industry-accepted quality-
control certification institution, or for new and growing
programs with a credible path to certification. Due
consideration shall be given to women, underrepresented
minorities, and persons with disabilities.
(d) Report.--The Secretary shall make public, on the
website of the Department or upon request, information on the
name and institution for all grants awarded under this
section, including a brief description of the project as well
as the grant award amount.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section $10,000,000 for each of the fiscal years 2008 through
2012.
SEC. 605. DAYLIGHTING SYSTEMS AND DIRECT SOLAR LIGHT PIPE
TECHNOLOGY.
(a) Establishment.--The Secretary shall establish a program
of research and development to provide assistance in the
demonstration and commercial application of direct solar
renewable energy sources to provide alternatives to
traditional power generation for lighting and illumination,
including light pipe technology, and to promote greater
energy conservation and improved efficiency. All direct solar
renewable energy devices supported under this program shall
have the capability to provide measurable data on the amount
of kilowatt-hours saved over the traditionally powered light
sources they have replaced.
(b) Reporting.--The Secretary shall transmit to Congress an
annual report assessing the measurable data derived from each
project in the direct solar renewable energy sources program
and the energy savings resulting from its use.
(c) Definitions.--For purposes of this section--
(1) the term ``direct solar renewable energy'' means energy
from a device that converts sunlight into useable light
within a building, tunnel, or other enclosed structure,
replacing artificial light generated by a light fixture and
doing so without the conversion of the sunlight into another
form of energy; and
(2) the term ``light pipe'' means a device designed to
transport visible solar radiation from its collection point
to the interior of a building while excluding interior heat
gain in the nonheating season.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section $3,500,000 for each of the fiscal years 2008 through
2012.
SEC. 606. SOLAR AIR CONDITIONING RESEARCH AND DEVELOPMENT
PROGRAM.
(a) Establishment.--The Secretary shall establish a
research, development, and demonstration program to promote
less costly and more reliable decentralized distributed
solar-powered air conditioning for individuals and
businesses.
(b) Authorized Activities.--Grants made available under
this section may be used to support the following activities:
(1) Advancing solar thermal collectors, including
concentrating solar thermal and electric systems, flat plate
and evacuated tube collector performance.
(2) Achieving technical and economic integration of solar-
powered distributed air-conditioning systems with existing
hot water and storage systems for residential applications.
(3) Designing and demonstrating mass manufacturing
capability to reduce costs of modular standardized solar-
powered distributed air conditioning systems and components.
(4) Improving the efficiency of solar-powered distributed
air-conditioning to increase the effectiveness of solar-
powered absorption chillers, solar-driven compressors and
condensors, and cost-effective precooling approaches.
(5) Researching and comparing performance of solar-powered
distributed air conditioning systems in different regions of
the country, including potential integration with other
onsite systems, such as solar, biogas, geothermal heat pumps,
and propane assist or combined propane fuel cells, with a
goal to develop site-specific energy production and
management systems that ease fuel and peak utility loading.
(c) Cost Sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a project carried out
under this section.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section $2,500,000 for each of the fiscal years 2008 through
2012.
SEC. 607. PHOTOVOLTAIC DEMONSTRATION PROGRAM.
(a) In General.--The Secretary shall establish a program of
grants to States to demonstrate advanced photovoltaic
technology.
(b) Requirements.--
(1) Ability to meet requirements.--To receive funding under
the program under this section, a State must submit a
proposal that demonstrates, to the satisfaction of the
Secretary, that the State will meet the requirements of
subsection (f).
(2) Compliance with requirements.--If a State has received
funding under this section for the preceding year, the State
must demonstrate, to the satisfaction of the Secretary, that
it complied with the requirements of subsection (f) in
carrying out the program during that preceding year, and that
it will do so in the future, before it can receive further
funding under this section.
(c) Competition.--The Secretary shall award grants on a
competitive basis to the States with the proposals the
Secretary considers most likely to encourage the widespread
adoption of photovoltaic technologies. The Secretary shall
take into consideration the geographic distribution of
awards.
(d) Proposals.--Not later than 6 months after the date of
enactment of this Act, and in each subsequent fiscal year for
the life of the program, the Secretary shall solicit
proposals from the States to participate in the program under
this section.
(e) Competitive Criteria.--In awarding funds in a
competitive allocation under subsection (c), the Secretary
shall consider--
(1) the likelihood of a proposal to encourage the
demonstration of, or lower the costs of, advanced
photovoltaic technologies; and
(2) the extent to which a proposal is likely to--
(A) maximize the amount of photovoltaics demonstrated;
(B) maximize the proportion of non-Federal cost share; and
(C) limit State administrative costs.
(f) State Program.--A program operated by a State with
funding under this section shall provide competitive awards
for the demonstration of advanced photo-voltaic technologies.
Each State program shall--
(1) require a contribution of at least 60 percent per award
from non-Federal sources, which may include any combination
of State, local, and private funds, except that at least 10
percent of the funding must be supplied by the State;
(2) endeavor to fund recipients in the commercial,
industrial, institutional, governmental, and residential
sectors;
(3) limit State administrative costs to no more than 10
percent of the grant;
(4) report annually to the Secretary on--
(A) the amount of funds disbursed;
(B) the amount of photovoltaics purchased; and
(C) the results of the monitoring under paragraph (5);
(5) provide for measurement and verification of the output
of a representative sample of the photovoltaics systems
demonstrated throughout the average working life of the
systems, or at least 20 years; and
(6) require that applicant buildings must have received an
independent energy efficiency audit during the 6-month period
preceding the filing of the application.
(g) Unexpended Funds.--If a State fails to expend any funds
received under this section within 3 years of receipt, such
remaining funds shall be returned to the Treasury.
(h) Reports.--The Secretary shall report to Congress 5
years after funds are first distributed to the States under
this section--
(1) the amount of photovoltaics demonstrated;
(2) the number of projects undertaken;
(3) the administrative costs of the program;
(4) the results of the monitoring under subsection (f)(5);
and
(5) the total amount of funds distributed, including a
breakdown by State.
(i) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for the purposes of
carrying out this section--
(1) $15,000,000 for fiscal year 2008;
[[Page H14368]]
(2) $30,000,000 for fiscal year 2009;
(3) $45,000,000 for fiscal year 2010;
(4) $60,000,000 for fiscal year 2011; and
(5) $70,000,000 for fiscal year 2012.
Subtitle B--Geothermal Energy
SEC. 611. SHORT TITLE.
This subtitle may be cited as the ``Advanced Geothermal
Energy Research and Development Act of 2007''.
SEC. 612. DEFINITIONS.
For purposes of this subtitle:
(1) Engineered.--When referring to enhanced geothermal
systems, the term ``engineered'' means subjected to
intervention, including intervention to address one or more
of the following issues:
(A) Lack of effective permeability or porosity or open
fracture connectivity within the reservoir.
(B) Insufficient contained geofluid in the reservoir.
(C) A low average geothermal gradient, which necessitates
deeper drilling.
(2) Enhanced geothermal systems.--The term ``enhanced
geothermal systems'' means geothermal reservoir systems that
are engineered, as opposed to occurring naturally.
(3) Geofluid.--The term ``geofluid'' means any fluid used
to extract thermal energy from the Earth which is transported
to the surface for direct use or electric power generation,
except that such term shall not include oil or natural gas.
(4) Geopressured resources.--The term ``geopressured
resources'' mean geothermal deposits found in sedimentary
rocks under higher than normal pressure and saturated with
gas or methane.
(5) Geothermal.--The term ``geothermal'' refers to heat
energy stored in the Earth's crust that can be accessed for
direct use or electric power generation.
(6) Hydrothermal.--The term ``hydrothermal'' refers to
naturally occurring subsurface reservoirs of hot water or
steam.
(7) Systems approach.--The term ``systems approach'' means
an approach to solving problems or designing systems that
attempts to optimize the performance of the overall system,
rather than a particular component of the system.
SEC. 613. HYDROTHERMAL RESEARCH AND DEVELOPMENT.
(a) In General.--The Secretary shall support programs of
research, development, demonstration, and commercial
application to expand the use of geothermal energy production
from hydrothermal systems, including the programs described
in subsection (b).
(b) Programs.--
(1) Advanced hydrothermal resource tools.--The Secretary,
in consultation with other appropriate agencies, shall
support a program to develop advanced geophysical,
geochemical, and geologic tools to assist in locating hidden
hydrothermal resources, and to increase the reliability of
site characterization before, during, and after initial
drilling. The program shall develop new prospecting
techniques to assist in prioritization of targets for
characterization. The program shall include a field
component.
(2) Industry coupled exploratory drilling.--The Secretary
shall support a program of cost-shared field demonstration
programs, to be pursued, simultaneously and independently, in
collaboration with industry partners, for the demonstration
of advanced technologies and techniques of siting and
exploratory drilling for undiscovered resources in a variety
of geologic settings. The program shall include incentives to
encourage the use of advanced technologies and techniques.
SEC. 614. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND
DEVELOPMENT.
(a) Subsurface Components and Systems.--The Secretary shall
support a program of research, development, demonstration,
and commercial application of components and systems capable
of withstanding extreme geothermal environments and necessary
to cost-effectively develop, produce, and monitor geothermal
reservoirs and produce geothermal energy. These components
and systems shall include advanced casing systems (expandable
tubular casing, low-clearance casing designs, and others),
high-temperature cements, high-temperature submersible pumps,
and high-temperature packers, as well as technologies for
under-reaming, multilateral completions, high-temperature and
high-pressure logging, logging while drilling, deep fracture
stimulation, and reservoir system diagnostics.
(b) Reservoir Performance Modeling.--The Secretary shall
support a program of research, development, demonstration,
and commercial application of models of geothermal reservoir
performance, with an emphasis on accurately modeling
performance over time. Models shall be developed to assist
both in the development of geothermal reservoirs and to more
accurately account for stress-related effects in stimulated
hydrothermal and enhanced geothermal systems production
environments.
(c) Environmental Impacts.--The Secretary shall--
(1) support a program of research, development,
demonstration, and commercial application of technologies and
practices designed to mitigate or preclude potential adverse
environmental impacts of geothermal energy development,
production or use, and seek to ensure that geothermal energy
development is consistent with the highest practicable
standards of environmental stewardship;
(2) in conjunction with the Assistant Administrator for
Research and Development at the Environmental Protection
Agency, support a research program to identify potential
environmental impacts of geothermal energy development,
production, and use, and ensure that the program described in
paragraph (1) addresses such impacts, including effects on
groundwater and local hydrology; and
(3) support a program of research to compare the potential
environmental impacts identified as part of the development,
production, and use of geothermal energy with the potential
emission reductions of greenhouse gases gained by geothermal
energy development, production, and use.
SEC. 615. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND
DEVELOPMENT.
(a) In General.--The Secretary shall support a program of
research, development, demonstration, and commercial
application for enhanced geothermal systems, including the
programs described in subsection (b).
(b) Programs.--
(1) Enhanced geothermal systems technologies.--The
Secretary shall support a program of research, development,
demonstration, and commercial application of the technologies
and knowledge necessary for enhanced geothermal systems to
advance to a state of commercial readiness, including
advances in--
(A) reservoir stimulation;
(B) reservoir characterization, monitoring, and modeling;
(C) stress mapping;
(D) tracer development;
(E) three-dimensional tomography; and
(F) understanding seismic effects of reservoir engineering
and stimulation.
(2) Enhanced geothermal systems reservoir stimulation.--
(A) Program.--In collaboration with industry partners, the
Secretary shall support a program of research, development,
and demonstration of enhanced geothermal systems reservoir
stimulation technologies and techniques. A minimum of 4 sites
shall be selected in locations that show particular promise
for enhanced geothermal systems development. Each site
shall--
(i) represent a different class of subsurface geologic
environments; and
(ii) take advantage of an existing site where subsurface
characterization has been conducted or existing drill holes
can be utilized, if possible.
(B) Consideration of existing site.--The Desert Peak,
Nevada, site, where a Department of Energy and industry
cooperative enhanced geothermal systems project is already
underway, may be considered for inclusion among the sites
selected under subparagraph (A).
SEC. 616. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS
FIELDS AND RECOVERY AND PRODUCTION OF
GEOPRESSURED GAS RESOURCES.
(a) In General.--The Secretary shall establish a program of
research, development, demonstration, and commercial
application to support development of geothermal energy
production from oil and gas fields and production and
recovery of energy, including electricity, from geopressured
resources. In addition, the Secretary shall conduct such
supporting activities including research, resource
characterization, and technology development as necessary.
(b) Geothermal Energy Production From Oil and Gas Fields.--
The Secretary shall implement a grant program in support of
geothermal energy production from oil and gas fields. The
program shall include grants for a total of not less than
three demonstration projects of the use of geothermal
techniques such as advanced organic rankine cycle systems at
marginal, unproductive, and productive oil and gas wells. The
Secretary shall, to the extent practicable and in the public
interest, make awards that--
(1) include not less than five oil or gas well sites per
project award;
(2) use a range of oil or gas well hot water source
temperatures from 150 degrees Fahrenheit to 300 degrees
Fahrenheit;
(3) cover a range of sizes up to one megawatt;
(4) are located at a range of sites;
(5) can be replicated at a wide range of sites;
(6) facilitate identification of optimum techniques among
competing alternatives;
(7) include business commercialization plans that have the
potential for production of equipment at high volumes and
operation and support at a large number of sites; and
(8) satisfy other criteria that the Secretary determines
are necessary to carry out the program and collect necessary
data and information.
The Secretary shall give preference to assessments that
address multiple elements contained in paragraphs (1) through
(8).
(c) Grant Awards.--Each grant award for demonstration of
geothermal technology such as advanced organic rankine cycle
systems at oil and gas wells made by the Secretary under
subsection (b) shall include--
(1) necessary and appropriate site engineering study;
(2) detailed economic assessment of site specific
conditions;
(3) appropriate feasibility studies to determine whether
the demonstration can be replicated;
(4) design or adaptation of existing technology for site
specific circumstances or conditions;
(5) installation of equipment, service, and support;
[[Page H14369]]
(6) operation for a minimum of one year and monitoring for
the duration of the demonstration; and
(7) validation of technical and economic assumptions and
documentation of lessons learned.
(d) Geopressured Gas Resource Recovery and Production.--(1)
The Secretary shall implement a program to support the
research, development, demonstration, and commercial
application of cost-effective techniques to produce energy
from geopressured resources.
(2) The Secretary shall solicit preliminary engineering
designs for geopressured resources production and recovery
facilities.
(3) Based upon a review of the preliminary designs, the
Secretary shall award grants, which may be cost-shared, to
support the detailed development and completion of
engineering, architectural and technical plans needed to
support construction of new designs.
(4) Based upon a review of the final design plans above,
the Secretary shall award cost-shared development and
construction grants for demonstration geopressured production
facilities that show potential for economic recovery of the
heat, kinetic energy and gas resources from geopressured
resources.
(e) Competitive Grant Selection.--Not less than 90 days
after the date of the enactment of this Act, the Secretary
shall conduct a national solicitation for applications for
grants under the programs outlined in subsections (b) and
(d). Grant recipients shall be selected on a competitive
basis based on criteria in the respective subsection.
(f) Well Drilling.--No funds may be used under this section
for the purpose of drilling new wells.
SEC. 617. COST SHARING AND PROPOSAL EVALUATION.
(a) Federal Share.--The Federal share of costs of projects
funded under this subtitle shall be in accordance with
section 988 of the Energy Policy Act of 2005.
(b) Organization and Administration of Programs.--Programs
under this subtitle shall incorporate the following elements:
(1) The Secretary shall coordinate with, and where
appropriate may provide funds in furtherance of the purposes
of this subtitle to, other Department of Energy research and
development programs focused on drilling, subsurface
characterization, and other related technologies.
(2) In evaluating proposals, the Secretary shall give
priority to proposals that demonstrate clear evidence of
employing a systems approach.
(3) The Secretary shall coordinate and consult with the
appropriate Federal land management agencies in selecting
proposals for funding under this subtitle.
(4) Nothing in this subtitle shall be construed to alter or
affect any law relating to the management or protection of
Federal lands.
SEC. 618. CENTER FOR GEOTHERMAL TECHNOLOGY TRANSFER.
(a) In General.--The Secretary shall award to an
institution of higher education (or consortium thereof) a
grant to establish a Center for Geothermal Technology
Transfer (referred to in this section as the ``Center'').
(b) Duties.--The Center shall--
(1) serve as an information clearinghouse for the
geothermal industry by collecting and disseminating
information on best practices in all areas relating to
developing and utilizing geothermal resources;
(2) make data collected by the Center available to the
public; and
(3) seek opportunities to coordinate efforts and share
information with domestic and international partners engaged
in research and development of geothermal systems and related
technology.
(c) Selection Criteria.--In awarding the grant under
subsection (a) the Secretary shall select an institution of
higher education (or consortium thereof) best suited to
provide national leadership on geothermal related issues and
perform the duties enumerated under subsection (b).
(d) Duration of Grant.--A grant made under subsection (a)--
(1) shall be for an initial period of 5 years; and
(2) may be renewed for additional 5-year periods on the
basis of--
(A) satisfactory performance in meeting the duties outlined
in subsection (b); and
(B) any other requirements specified by the Secretary.
SEC. 619. GEOPOWERING AMERICA.
The Secretary shall expand the Department of Energy's
GeoPowering the West program to extend its geothermal
technology transfer activities throughout the entire United
States. The program shall be renamed ``GeoPowering America''.
The program shall continue to be based in the Department of
Energy office in Golden, Colorado.
SEC. 620. EDUCATIONAL PILOT PROGRAM.
The Secretary shall seek to award grant funding, on a
competitive basis, to an institution of higher education for
a geothermal-powered energy generation facility on the
institution's campus. The purpose of the facility shall be to
provide electricity and space heating. The facility shall
also serve as an educational resource to students in relevant
fields of study, and the data generated by the facility shall
be available to students and the general public. The total
funding award shall not exceed $2,000,000.
SEC. 621. REPORTS.
(a) Reports on Advanced Uses of Geothermal Energy.--Not
later than 3 years and 5 years after the date of enactment of
this Act, the Secretary shall report to the Committee on
Science and Technology of the House of Representatives and
the Committee on Energy and Natural Resources of the Senate
on advanced concepts and technologies to maximize the
geothermal resource potential of the United States. The
reports shall include--
(1) the use of carbon dioxide as an alternative geofluid
with potential carbon sequestration benefits;
(2) mineral recovery from geofluids;
(3) use of geothermal energy to produce hydrogen;
(4) use of geothermal energy to produce biofuels;
(5) use of geothermal heat for oil recovery from oil shales
and tar sands; and
(6) other advanced geothermal technologies, including
advanced drilling technologies and advanced power conversion
technologies.
(b) Progress Reports.--(1) Not later than 36 months after
the date of enactment of this Act, the Secretary shall submit
to the Committee on Science and Technology of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate an interim report describing the
progress made under this subtitle. At the end of 60 months,
the Secretary shall submit to Congress a report on the
results of projects undertaken under this subtitle and other
such information the Secretary considers appropriate.
(2) As necessary, the Secretary shall report to the
Congress on any legal, regulatory, or other barriers
encountered that hinder economic development of these
resources, and provide recommendations on legislative or
other actions needed to address such impediments.
SEC. 622. APPLICABILITY OF OTHER LAWS.
Nothing in this subtitle shall be construed as waiving,
modifying, or superseding the applicability of any
requirement under any environmental or other Federal or State
law. To the extent that activities authorized in this
subtitle take place in coastal and ocean areas, the Secretary
shall consult with the Secretary of Commerce, acting through
the Under Secretary of Commerce for Oceans and Atmosphere,
regarding the potential marine environmental impacts and
measures to address such impacts.
SEC. 623. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this subtitle $90,000,000 for each of the fiscal
years 2008 through 2012, of which $10,000,000 for each fiscal
year shall be for carrying out section 616. There are also
authorized to be appropriated to the Secretary for the
Intermountain West Geothermal Consortium $5,000,000 for each
of the fiscal years 2008 through 2012.
SEC. 624. INTERNATIONAL GEOTHERMAL ENERGY DEVELOPMENT.
(a) In General.--The Secretary of Energy, in coordination
with other appropriate Federal and multilateral agencies
(including the United States Agency for International
Development) shall support international collaborative
efforts to promote the research, development, and deployment
of geothermal technologies used to develop hydrothermal and
enhanced geothermal system resources, including as partners
(as appropriate) the African Rift Geothermal Development
Facility, Australia, China, France, the Republic of Iceland,
India, Japan, and the United Kingdom.
(b) United States Trade and Development Agency.--The
Director of the United States Trade and Development Agency
may--
(1) encourage participation by United States firms in
actions taken to carry out subsection (a); and
(2) provide grants and other financial support for
feasibility and resource assessment studies conducted in, or
intended to benefit, less developed countries.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2008 through 2012.
SEC. 625. HIGH COST REGION GEOTHERMAL ENERGY GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a utility;
(B) an electric cooperative;
(C) a State;
(D) a political subdivision of a State;
(E) an Indian tribe; or
(F) a Native corporation.
(2) High-cost region.--The term ``high-cost region'' means
a region in which the average cost of electrical power
exceeds 150 percent of the national average retail cost, as
determined by the Secretary.
(b) Program.--The Secretary shall use amounts made
available to carry out this section to make grants to
eligible entities for activities described in subsection (c).
(c) Eligible Activities.--An eligible entity may use grant
funds under this section, with respect to a geothermal energy
project in a high-cost region, only--
(1) to conduct a feasibility study, including a study of
exploration, geochemical testing, geomagnetic surveys,
geologic information gathering, baseline environmental
studies, well drilling, resource characterization,
permitting, and economic analysis;
(2) for design and engineering costs, relating to the
project; and
[[Page H14370]]
(3) to demonstrate and promote commercial application of
technologies related to geothermal energy as part of the
project.
(d) Cost Sharing.--The cost-sharing requirements of section
988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall
apply to any project carried out under this section.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies
SEC. 631. SHORT TITLE.
This subtitle may be cited as the ``Marine and Hydrokinetic
Renewable Energy Research and Development Act''.
SEC. 632. DEFINITION.
For purposes of this subtitle, the term ``marine and
hydrokinetic renewable energy'' means electrical energy
from--:
(1) waves, tides, and currents in oceans, estuaries, and
tidal areas;
(2) free flowing water in rivers, lakes, and streams;
(3) free flowing water in man-made channels; and
(4) differentials in ocean temperature (ocean thermal
energy conversion).
The term ``marine and hydrokinetic renewable energy'' does
not include energy from any source that uses a dam,
diversionary structure, or impoundment for electric power
purposes.
SEC. 633. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH
AND DEVELOPMENT.
(a) In General.--The Secretary, in consultation with the
Secretary of the Interior and the Secretary of Commerce,
acting through the Under Secretary of Commerce for Oceans and
Atmosphere, shall establish a program of research,
development, demonstration, and commercial application to
expand marine and hydrokinetic renewable energy production,
including programs to--
(1) study and compare existing marine and hydrokinetic
renewable energy technologies;
(2) research, develop, and demonstrate marine and
hydrokinetic renewable energy systems and technologies;
(3) reduce the manufacturing and operation costs of marine
and hydrokinetic renewable energy technologies;
(4) investigate efficient and reliable integration with the
utility grid and intermittency issues;
(5) advance wave forecasting technologies;
(6) conduct experimental and numerical modeling for
optimization of marine energy conversion devices and arrays;
(7) increase the reliability and survivability of marine
and hydrokinetic renewable energy technologies, including
development of corrosive-resistant materials;
(8) identify, in conjunction with the Secretary of
Commerce, acting through the Under Secretary of Commerce for
Oceans and Atmosphere, and other Federal agencies as
appropriate, the potential environmental impacts, including
potential impacts on fisheries and other marine resources, of
marine and hydrokinetic renewable energy technologies,
measures to prevent adverse impacts, and technologies and
other means available for monitoring and determining
environmental impacts;
(9) identify, in conjunction with the Secretary of the
Department in which the United States Coast Guard is
operating, acting through the Commandant of the United States
Coast Guard, the potential navigational impacts of marine and
hydrokinetic renewable energy technologies and measures to
prevent adverse impacts on navigation;
(10) develop power measurement standards for marine and
hydrokinetic renewable energy;
(11) develop identification standards for marine and
hydrokinetic renewable energy devices;
(12) address standards development, demonstration, and
technology transfer for advanced systems engineering and
system integration methods to identify critical interfaces;
(13) identifying opportunities for cross fertilization and
development of economies of scale between other renewable
sources and marine and hydrokinetic renewable energy sources;
and
(14) providing public information and opportunity for
public comment concerning all technologies.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the Secretary, in conjunction with the
Secretary of Commerce, acting through the Undersecretary of
Commerce for Oceans and Atmosphere, and the Secretary of the
Interior, shall provide to the Congress a report that
addresses--
(1) the potential environmental impacts, including impacts
to fisheries and marine resources, of marine and hydrokinetic
renewable energy technologies;
(2) options to prevent adverse environmental impacts;
(3) the potential role of monitoring and adaptive
management in identifying and addressing any adverse
environmental impacts; and
(4) the necessary components of such an adaptive management
program.
SEC. 634. NATIONAL MARINE RENEWABLE ENERGY RESEARCH,
DEVELOPMENT, AND DEMONSTRATION CENTERS.
(a) Centers.--The Secretary shall award grants to
institutions of higher education (or consortia thereof) for
the establishment of 1 or more National Marine Renewable
Energy Research, Development, and Demonstration Centers. In
selecting locations for Centers, the Secretary shall consider
sites that meet one of the following criteria:
(1) Hosts an existing marine renewable energy research and
development program in coordination with an engineering
program at an institution of higher education.
(2) Has proven expertise to support environmental and
policy-related issues associated with harnessing of energy in
the marine environment.
(3) Has access to and utilizes the marine resources in the
Gulf of Mexico, the Atlantic Ocean, or the Pacific Ocean.
The Secretary may give special consideration to historically
black colleges and universities and land grant universities
that also meet one of these criteria. In establishing
criteria for the selection of the Centers, the Secretary
shall consult with the Secretary of Commerce, acting through
the Under Secretary of Commerce for Oceans and Atmosphere, on
the criteria related to ocean waves, tides, and currents
including those for advancing wave forecasting technologies,
ocean temperature differences, and studying the compatibility
of marine renewable energy technologies and systems with the
environment, fisheries, and other marine resources.
(b) Purposes.--The Centers shall advance research,
development, demonstration, and commercial application of
marine renewable energy, and shall serve as an information
clearinghouse for the marine renewable energy industry,
collecting and disseminating information on best practices in
all areas related to developing and managing enhanced marine
renewable energy systems resources.
(c) Demonstration of Need.--When applying for a grant under
this section, an applicant shall include a description of why
Federal support is necessary for the Center, including
evidence that the research of the Center will not be
conducted in the absence of Federal support.
SEC. 635. APPLICABILITY OF OTHER LAWS.
Nothing in this subtitle shall be construed as waiving,
modifying, or superseding the applicability of any
requirement under any environmental or other Federal or State
law.
SEC. 636. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this subtitle $50,000,000 for each of the fiscal
years 2008 through 2012, except that no funds shall be
appropriated under this section for activities that are
receiving funds under section 931(a)(2)(E)(i) of the Energy
Policy Act of 2005 (42 U.S.C. 16231(a)(2)(E)(i)).
Subtitle D--Energy Storage for Transportation and Electric Power
SEC. 641. ENERGY STORAGE COMPETITIVENESS.
(a) Short Title.--This section may be cited as the ``United
States Energy Storage Competitiveness Act of 2007''.
(b) Definitions.--In this section:
(1) Council.--The term ``Council'' means the Energy Storage
Advisory Council established under subsection (e).
(2) Compressed air energy storage.--The term ``compressed
air energy storage'' means, in the case of an electricity
grid application, the storage of energy through the
compression of air.
(3) Electric drive vehicle.--The term ``electric drive
vehicle'' means--
(A) a vehicle that uses an electric motor for all or part
of the motive power of the vehicle, including battery
electric, hybrid electric, plug-in hybrid electric, fuel
cell, and plug-in fuel cell vehicles and rail transportation
vehicles; or
(B) mobile equipment that uses an electric motor to replace
an internal combustion engine for all or part of the work of
the equipment.
(4) Islanding.--The term ``islanding'' means a distributed
generator or energy storage device continuing to power a
location in the absence of electric power from the primary
source.
(5) Flywheel.--The term ``flywheel'' means, in the case of
an electricity grid application, a device used to store
rotational kinetic energy.
(6) Microgrid.--The term ``microgrid'' means an integrated
energy system consisting of interconnected loads and
distributed energy resources (including generators and energy
storage devices), which as an integrated system can operate
in parallel with the utility grid or in an intentional
islanding mode.
(7) Self-healing grid.--The term ``self-healing grid''
means a grid that is capable of automatically anticipating
and responding to power system disturbances (including the
isolation of failed sections and components), while
optimizing the performance and service of the grid to
customers.
(8) Spinning reserve services.--The term ``spinning reserve
services'' means a quantity of electric generating capacity
in excess of the quantity needed to meet peak electric
demand.
(9) Ultracapacitor.--The term ``ultracapacitor'' means an
energy storage device that has a power density comparable to
a conventional capacitor but is capable of exceeding the
energy density of a conventional capacitor by several orders
of magnitude.
(c) Program.--The Secretary shall carry out a research,
development, and demonstration program to support the ability
of the United States to remain globally competitive in energy
storage systems for electric drive vehicles, stationary
applications, and electricity transmission and distribution.
[[Page H14371]]
(d) Coordination.--In carrying out the activities of this
section, the Secretary shall coordinate relevant efforts with
appropriate Federal agencies, including the Department of
Transportation.
(e) Energy Storage Advisory Council.--
(1) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Secretary shall establish an
Energy Storage Advisory Council.
(2) Composition.--
(A) In general.--Subject to subparagraph (B), the Council
shall consist of not less than 15 individuals appointed by
the Secretary, based on recommendations of the National
Academy of Sciences.
(B) Energy storage industry.--The Council shall consist
primarily of representatives of the energy storage industry
of the United States.
(C) Chairperson.--The Secretary shall select a Chairperson
for the Council from among the members appointed under
subparagraph (A).
(3) Meetings.--
(A) In general.--The Council shall meet not less than once
a year.
(B) Federal advisory committee act.--The Federal Advisory
Committee Act (5 U.S.C. App.) shall apply to a meeting of the
Council.
(4) Plans.--No later than 1 year after the date of
enactment of this Act and every 5 years thereafter, the
Council, in conjunction with the Secretary, shall develop a
5-year plan for integrating basic and applied research so
that the United States retains a globally competitive
domestic energy storage industry for electric drive vehicles,
stationary applications, and electricity transmission and
distribution.
(5) Review.--The Council shall--
(A) assess, every 2 years, the performance of the
Department in meeting the goals of the plans developed under
paragraph (4); and
(B) make specific recommendations to the Secretary on
programs or activities that should be established or
terminated to meet those goals.
(f) Basic Research Program.--
(1) Basic research.--The Secretary shall conduct a basic
research program on energy storage systems to support
electric drive vehicles, stationary applications, and
electricity transmission and distribution, including--
(A) materials design;
(B) materials synthesis and characterization;
(C) electrode-active materials, including electrolytes and
bioelectrolytes;
(D) surface and interface dynamics;
(E) modeling and simulation; and
(F) thermal behavior and life degradation mechanisms.
(2) Nanoscience centers.--The Secretary, in cooperation
with the Council, shall coordinate the activities of the
nanoscience centers of the Department to help the energy
storage research centers of the Department maintain a
globally competitive posture in energy storage systems for
electric drive vehicles, stationary applications, and
electricity transmission and distribution.
(3) Funding.--For activities carried out under this
subsection, in addition to funding activities at National
Laboratories, the Secretary shall award funds to, and
coordinate activities with, a range of stakeholders including
the public, private, and academic sectors.
(g) Applied Research Program.--
(1) In general.--The Secretary shall conduct an applied
research program on energy storage systems to support
electric drive vehicles, stationary applications, and
electricity transmission and distribution technologies,
including--
(A) ultracapacitors;
(B) flywheels;
(C) batteries and battery systems (including flow
batteries);
(D) compressed air energy systems;
(E) power conditioning electronics;
(F) manufacturing technologies for energy storage systems;
(G) thermal management systems; and
(H) hydrogen as an energy storage medium.
(2) Funding.--For activities carried out under this
subsection, in addition to funding activities at National
Laboratories, the Secretary shall provide funds to, and
coordinate activities with, a range of stakeholders,
including the public, private, and academic sectors.
(h) Energy Storage Research Centers.--
(1) In general.--The Secretary shall establish, through
competitive bids, not more than 4 energy storage research
centers to translate basic research into applied technologies
to advance the capability of the United States to maintain a
globally competitive posture in energy storage systems for
electric drive vehicles, stationary applications, and
electricity transmission and distribution.
(2) Program management.--The centers shall be managed by
the Under Secretary for Science of the Department.
(3) Participation agreements.--As a condition of
participating in a center, a participant shall enter into a
participation agreement with the center that requires that
activities conducted by the participant for the center
promote the goal of enabling the United States to compete
successfully in global energy storage markets.
(4) Plans.--A center shall conduct activities that promote
the achievement of the goals of the plans of the Council
under subsection (e)(4).
(5) National laboratories.--A national laboratory (as
defined in section 2 of the Energy Policy Act of 2005 (42
U.S.C. 15801)) may participate in a center established under
this subsection, including a cooperative research and
development agreement (as defined in section 12(d) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3710a(d))).
(6) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) may apply to any project carried out
through a grant, contract, or cooperative agreement under
this subsection.
(7) Intellectual property.--In accordance with section
202(a)(ii) of title 35, United States Code, section 152 of
the Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9
of the Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5908), the Secretary may require, for any
new invention developed under this subsection, that--
(A) if an industrial participant is active in a energy
storage research center established under this subsection
relating to the advancement of energy storage technologies
carried out, in whole or in part, with Federal funding, the
industrial participant be granted the first option to
negotiate with the invention owner, at least in the field of
energy storage technologies, nonexclusive licenses, and
royalties on terms that are reasonable, as determined by the
Secretary;
(B) if 1 or more industry participants are active in a
center, during a 2-year period beginning on the date on which
an invention is made--
(i) the patent holder shall not negotiate any license or
royalty agreement with any entity that is not an industrial
participant under this subsection; and
(ii) the patent holder shall negotiate nonexclusive
licenses and royalties in good faith with any interested
industrial participant under this subsection; and
(C) the new invention be developed under such other terms
as the Secretary determines to be necessary to promote the
accelerated commercialization of inventions made under this
subsection to advance the capability of the United States to
successfully compete in global energy storage markets.
(i) Energy Storage Systems Demonstrations.--
(1) In general.--The Secretary shall carry out a program of
new demonstrations of advanced energy storage systems.
(2) Scope.--The demonstrations shall--
(A) be regionally diversified; and
(B) expand on the existing technology demonstration program
of the Department.
(3) Stakeholders.--In carrying out the demonstrations, the
Secretary shall, to the maximum extent practicable, include
the participation of a range of stakeholders, including--
(A) rural electric cooperatives;
(B) investor owned utilities;
(C) municipally owned electric utilities;
(D) energy storage systems manufacturers;
(E) electric drive vehicle manufacturers;
(F) the renewable energy production industry;
(G) State or local energy offices;
(H) the fuel cell industry; and
(I) institutions of higher education.
(4) Objectives.--Each of the demonstrations shall include 1
or more of the following:
(A) Energy storage to improve the feasibility of microgrids
or islanding, or transmission and distribution capability, to
improve reliability in rural areas.
(B) Integration of an energy storage system with a self-
healing grid.
(C) Use of energy storage to improve security to emergency
response infrastructure and ensure availability of emergency
backup power for consumers.
(D) Integration with a renewable energy production source,
at the source or away from the source.
(E) Use of energy storage to provide ancillary services,
such as spinning reserve services, for grid management.
(F) Advancement of power conversion systems to make the
systems smarter, more efficient, able to communicate with
other inverters, and able to control voltage.
(G) Use of energy storage to optimize transmission and
distribution operation and power quality, which could address
overloaded lines and maintenance of transformers and
substations.
(H) Use of advanced energy storage for peak load management
of homes, businesses, and the grid.
(I) Use of energy storage devices to store energy during
nonpeak generation periods to make better use of existing
grid assets.
(j) Vehicle Energy Storage Demonstration.--
(1) In general.--The Secretary shall carry out a program of
electric drive vehicle energy storage technology
demonstrations.
(2) Consortia.--The technology demonstrations shall be
conducted through consortia, which may include--
(A) energy storage systems manufacturers and suppliers of
the manufacturers;
(B) electric drive vehicle manufacturers;
(C) rural electric cooperatives;
(D) investor owned utilities;
(E) municipal and rural electric utilities;
(F) State and local governments;
(G) metropolitan transportation authorities; and
(H) institutions of higher education.
(3) Objectives.--The program shall demonstrate 1 or more of
the following:
[[Page H14372]]
(A) Novel, high capacity, high efficiency energy storage,
charging, and control systems, along with the collection of
data on performance characteristics, such as battery life,
energy storage capacity, and power delivery capacity.
(B) Advanced onboard energy management systems and highly
efficient battery cooling systems.
(C) Integration of those systems on a prototype vehicular
platform, including with drivetrain systems for passenger,
commercial, and nonroad electric drive vehicles.
(D) New technologies and processes that reduce
manufacturing costs.
(E) Integration of advanced vehicle technologies with
electricity distribution system and smart metering
technology.
(F) Control systems that minimize emissions profiles in
cases in which clean diesel engines are part of a plug-in
hybrid drive system.
(k) Secondary Applications and Disposal of Electric Drive
Vehicle Batteries.--The Secretary shall carry out a program
of research, development, and demonstration of--
(1) secondary applications of energy storage devices
following service in electric drive vehicles; and
(2) technologies and processes for final recycling and
disposal of the devices.
(l) Cost Sharing.--The Secretary shall carry out the
programs established under this section in accordance with
section 988 of the Energy Policy Act of 2005 (42 U.S.C.
16352).
(m) Merit Review of Proposals.--The Secretary shall carry
out the programs established under subsections (i), (j), and
(k) in accordance with section 989 of the Energy Policy Act
of 2005 (42 U.S.C. 16353).
(n) Coordination and Nonduplication.--To the maximum extent
practicable, the Secretary shall coordinate activities under
this section with other programs and laboratories of the
Department and other Federal research programs.
(o) Review by National Academy of Sciences.--On the
business day that is 5 years after the date of enactment of
this Act, the Secretary shall offer to enter into an
arrangement with the National Academy of Sciences to assess
the performance of the Department in carrying out this
section.
(p) Authorization of Appropriations.--There are authorized
to be appropriated to carry out--
(1) the basic research program under subsection (f)
$50,000,000 for each of fiscal years 2009 through 2018;
(2) the applied research program under subsection (g)
$80,000,000 for each of fiscal years 2009 through 2018; and;
(3) the energy storage research center program under
subsection (h) $100,000,000 for each of fiscal years 2009
through 2018;
(4) the energy storage systems demonstration program under
subsection (i) $30,000,000 for each of fiscal years 2009
through 2018;
(5) the vehicle energy storage demonstration program under
subsection (j) $30,000,000 for each of fiscal years 2009
through 2018; and
(6) the secondary applications and disposal of electric
drive vehicle batteries program under subsection (k)
$5,000,000 for each of fiscal years 2009 through 2018.
Subtitle E--Miscellaneous Provisions
SEC. 651. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary of Energy shall
establish a program to determine ways in which the weight of
motor vehicles could be reduced to improve fuel efficiency
without compromising passenger safety by conducting research,
development, and demonstration relating to--
(1) the development of new materials (including cast metal
composite materials formed by autocombustion synthesis) and
material processes that yield a higher strength-to-weight
ratio or other properties that reduce vehicle weight; and
(2) reducing the cost of--
(A) lightweight materials (including high-strength steel
alloys, aluminum, magnesium, metal composites, and carbon
fiber reinforced polymer composites) with the properties
required for construction of lighter-weight vehicles; and
(B) materials processing, automated manufacturing, joining,
and recycling lightweight materials for high-volume
applications.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $80,000,000 for
the period of fiscal years 2008 through 2012.
SEC. 652. COMMERCIAL INSULATION DEMONSTRATION PROGRAM.
(a) Definitions.--In this section:
(1) Advanced insulation.--The term ``advanced insulation''
means insulation that has an R value of not less than R35 per
inch.
(2) Covered refrigeration unit.--The term ``covered
refrigeration unit'' means any--
(A) commercial refrigerated truck;
(B) commercial refrigerated trailer; or
(C) commercial refrigerator, freezer, or refrigerator-
freezer described in section 342(c) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(c)).
(b) Report.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to Congress
a report that includes an evaluation of--
(1) the state of technological advancement of advanced
insulation; and
(2) the projected amount of cost savings that would be
generated by implementing advanced insulation into covered
refrigeration units.
(c) Demonstration Program.--
(1) Establishment.--If the Secretary determines in the
report described in subsection (b) that the implementation of
advanced insulation into covered refrigeration units would
generate an economically justifiable amount of cost savings,
the Secretary, in cooperation with manufacturers of covered
refrigeration units, shall establish a demonstration program
under which the Secretary shall demonstrate the cost-
effectiveness of advanced insulation.
(2) Disclosure.--The Secretary may, for a period of up to
five years after an award is granted under the demonstration
program, exempt from mandatory disclosure under section 552
of title 5, United States Code (popularly known as the
Freedom of Information Act) information that the Secretary
determines would be a privileged or confidential trade secret
or commercial or financial information under subsection
(b)(4) of such section if the information had been obtained
from a non-Government party.
(3) Cost-sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to any project carried out
under this subsection.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $8,000,000 for
the period of fiscal years 2009 through 2014.
SEC. 653. TECHNICAL CRITERIA FOR CLEAN COAL POWER INITIATIVE.
Section 402(b)(1)(B)(ii) of the Energy Policy Act of 2005
(42 U.S.C. 15962(b)(1)(B)(ii)) is amended by striking
subclause (I) and inserting the following:
``(I)(aa) to remove at least 99 percent of sulfur dioxide;
or
``(bb) to emit not more than 0.04 pound SO2 per
million Btu, based on a 30-day average;''.
SEC. 654. H-PRIZE.
Section 1008 of the Energy Policy Act of 2005 (42 U.S.C.
16396) is amended by adding at the end the following new
subsection:
``(f) H-Prize.--
``(1) Prize authority.--
``(A) In general.--As part of the program under this
section, the Secretary shall carry out a program to
competitively award cash prizes in conformity with this
subsection to advance the research, development,
demonstration, and commercial application of hydrogen energy
technologies.
``(B) Advertising and solicitation of competitors.--
``(i) Advertising.--The Secretary shall widely advertise
prize competitions under this subsection to encourage broad
participation, including by individuals, universities
(including historically Black colleges and universities and
other minority serving institutions), and large and small
businesses (including businesses owned or controlled by
socially and economically disadvantaged persons).
``(ii) Announcement through federal register notice.--The
Secretary shall announce each prize competition under this
subsection by publishing a notice in the Federal Register.
This notice shall include essential elements of the
competition such as the subject of the competition, the
duration of the competition, the eligibility requirements for
participation in the competition, the process for
participants to register for the competition, the amount of
the prize, and the criteria for awarding the prize.
``(C) Administering the competitions.--The Secretary shall
enter into an agreement with a private, nonprofit entity to
administer the prize competitions under this subsection,
subject to the provisions of this subsection (in this
subsection referred to as the `administering entity'). The
duties of the administering entity under the agreement shall
include--
``(i) advertising prize competitions under this subsection
and their results;
``(ii) raising funds from private entities and individuals
to pay for administrative costs and to contribute to cash
prizes, including funds provided in exchange for the right to
name a prize awarded under this subsection;
``(iii) developing, in consultation with and subject to the
final approval of the Secretary, the criteria for selecting
winners in prize competitions under this subsection, based on
goals provided by the Secretary;
``(iv) determining, in consultation with the Secretary, the
appropriate amount and funding sources for each prize to be
awarded under this subsection, subject to the final approval
of the Secretary with respect to Federal funding;
``(v) providing advice and consultation to the Secretary on
the selection of judges in accordance with paragraph (2)(D),
using criteria developed in consultation with and subject to
the final approval of the Secretary; and
``(vi) protecting against the administering entity's
unauthorized use or disclosure of a registered participant's
trade secrets and confidential business information. Any
information properly identified as trade secrets or
confidential business information that is submitted by a
participant as part of a competitive program under this
subsection may be withheld from public disclosure.
``(D) Funding sources.--Prizes under this subsection shall
consist of Federal appropriated funds and any funds provided
by the administering entity (including funds raised pursuant
to subparagraph (C)(ii)) for such cash prize programs. The
Secretary may accept funds from other Federal agencies for
[[Page H14373]]
such cash prizes and, notwithstanding section 3302(b) of
title 31, United States Code, may use such funds for the cash
prize program under this subsection. Other than publication
of the names of prize sponsors, the Secretary may not give
any special consideration to any private sector entity or
individual in return for a donation to the Secretary or
administering entity.
``(E) Announcement of prizes.--The Secretary may not issue
a notice required by subparagraph (B)(ii) until all the funds
needed to pay out the announced amount of the prize have been
appropriated or committed in writing by the administering
entity. The Secretary may increase the amount of a prize
after an initial announcement is made under subparagraph
(B)(ii) if--
``(i) notice of the increase is provided in the same manner
as the initial notice of the prize; and
``(ii) the funds needed to pay out the announced amount of
the increase have been appropriated or committed in writing
by the administering entity.
``(F) Sunset.--The authority to announce prize competitions
under this subsection shall terminate on September 30, 2018.
``(2) Prize categories.--
``(A) Categories.--The Secretary shall establish prizes
under this subsection for--
``(i) advancements in technologies, components, or systems
related to--
``(I) hydrogen production;
``(II) hydrogen storage;
``(III) hydrogen distribution; and
``(IV) hydrogen utilization;
``(ii) prototypes of hydrogen-powered vehicles or other
hydrogen-based products that best meet or exceed objective
performance criteria, such as completion of a race over a
certain distance or terrain or generation of energy at
certain levels of efficiency; and
``(iii) transformational changes in technologies for the
distribution or production of hydrogen that meet or exceed
far-reaching objective criteria, which shall include minimal
carbon emissions and which may include cost criteria designed
to facilitate the eventual market success of a winning
technology.
``(B) Awards.--
``(i) Advancements.--To the extent permitted under
paragraph (1)(E), the prizes authorized under subparagraph
(A)(i) shall be awarded biennially to the most significant
advance made in each of the four subcategories described in
subclauses (I) through (IV) of subparagraph (A)(i) since the
submission deadline of the previous prize competition in the
same category under subparagraph (A)(i) or the date of
enactment of this subsection, whichever is later, unless no
such advance is significant enough to merit an award. No one
such prize may exceed $1,000,000. If less than $4,000,000 is
available for a prize competition under subparagraph (A)(i),
the Secretary may omit one or more subcategories, reduce the
amount of the prizes, or not hold a prize competition.
``(ii) Prototypes.--To the extent permitted under paragraph
(1)(E), prizes authorized under subparagraph (A)(ii) shall be
awarded biennially in alternate years from the prizes
authorized under subparagraph (A)(i). The Secretary is
authorized to award up to one prize in this category in each
2-year period. No such prize may exceed $4,000,000. If no
registered participants meet the objective performance
criteria established pursuant to subparagraph (C) for a
competition under this clause, the Secretary shall not award
a prize.
``(iii) Transformational technologies.--To the extent
permitted under paragraph (1)(E), the Secretary shall
announce one prize competition authorized under subparagraph
(A)(iii) as soon after the date of enactment of this
subsection as is practicable. A prize offered under this
clause shall be not less than $10,000,000, paid to the winner
in a lump sum, and an additional amount paid to the winner as
a match for each dollar of private funding raised by the
winner for the hydrogen technology beginning on the date the
winner was named. The match shall be provided for 3 years
after the date the prize winner is named or until the full
amount of the prize has been paid out, whichever occurs
first. A prize winner may elect to have the match amount paid
to another entity that is continuing the development of the
winning technology. The Secretary shall announce the rules
for receiving the match in the notice required by paragraph
(1)(B)(ii). The Secretary shall award a prize under this
clause only when a registered participant has met the
objective criteria established for the prize pursuant to
subparagraph (C) and announced pursuant to paragraph
(1)(B)(ii). Not more than $10,000,000 in Federal funds may be
used for the prize award under this clause. The administering
entity shall seek to raise $40,000,000 toward the matching
award under this clause.
``(C) Criteria.--In establishing the criteria required by
this subsection, the Secretary--
``(i) shall consult with the Department's Hydrogen
Technical and Fuel Cell Advisory Committee;
``(ii) shall consult with other Federal agencies, including
the National Science Foundation; and
``(iii) may consult with other experts such as private
organizations, including professional societies, industry
associations, and the National Academy of Sciences and the
National Academy of Engineering.
``(D) Judges.--For each prize competition under this
subsection, the Secretary in consultation with the
administering entity shall assemble a panel of qualified
judges to select the winner or winners on the basis of the
criteria established under subparagraph (C). Judges for each
prize competition shall include individuals from outside the
Department, including from the private sector. A judge,
spouse, minor children, and members of the judge's household
may not--
``(i) have personal or financial interests in, or be an
employee, officer, director, or agent of, any entity that is
a registered participant in the prize competition for which
he or she will serve as a judge; or
``(ii) have a familial or financial relationship with an
individual who is a registered participant in the prize
competition for which he or she will serve as a judge.
``(3) Eligibility.--To be eligible to win a prize under
this subsection, an individual or entity--
``(A) shall have complied with all the requirements in
accordance with the Federal Register notice required under
paragraph (1)(B)(ii);
``(B) in the case of a private entity, shall be
incorporated in and maintain a primary place of business in
the United States, and in the case of an individual, whether
participating singly or in a group, shall be a citizen of, or
an alien lawfully admitted for permanent residence in, the
United States; and
``(C) shall not be a Federal entity, a Federal employee
acting within the scope of his employment, or an employee of
a national laboratory acting within the scope of his
employment.
``(4) Intellectual property.--The Federal Government shall
not, by virtue of offering or awarding a prize under this
subsection, be entitled to any intellectual property rights
derived as a consequence of, or direct relation to, the
participation by a registered participant in a competition
authorized by this subsection. This paragraph shall not be
construed to prevent the Federal Government from negotiating
a license for the use of intellectual property developed for
a prize competition under this subsection.
``(5) Liability.--
``(A) Waiver of liability.--The Secretary may require
registered participants to waive claims against the Federal
Government and the administering entity (except claims for
willful misconduct) for any injury, death, damage, or loss of
property, revenue, or profits arising from the registered
participants' participation in a competition under this
subsection. The Secretary shall give notice of any waiver
required under this subparagraph in the notice required by
paragraph (1)(B)(ii). The Secretary may not require a
registered participant to waive claims against the
administering entity arising out of the unauthorized use or
disclosure by the administering entity of the registered
participant's trade secrets or confidential business
information.
``(B) Liability insurance.--
``(i) Requirements.--Registered participants in a prize
competition under this subsection shall be required to obtain
liability insurance or demonstrate financial responsibility,
in amounts determined by the Secretary, for claims by--
``(I) a third party for death, bodily injury, or property
damage or loss resulting from an activity carried out in
connection with participation in a competition under this
subsection; and
``(II) the Federal Government for damage or loss to
Government property resulting from such an activity.
``(ii) Federal government insured.--The Federal Government
shall be named as an additional insured under a registered
participant's insurance policy required under clause (i)(I),
and registered participants shall be required to agree to
indemnify the Federal Government against third party claims
for damages arising from or related to competition activities
under this subsection.
``(6) Report to congress.--Not later than 60 days after the
awarding of the first prize under this subsection, and
annually thereafter, the Secretary shall transmit to the
Congress a report that--
``(A) identifies each award recipient;
``(B) describes the technologies developed by each award
recipient; and
``(C) specifies actions being taken toward commercial
application of all technologies with respect to which a prize
has been awarded under this subsection.
``(7) Authorization of appropriations.--
``(A) In general.--
``(i) Awards.--There are authorized to be appropriated to
the Secretary for the period encompassing fiscal years 2008
through 2017 for carrying out this subsection--
``(I) $20,000,000 for awards described in paragraph
(2)(A)(i);
``(II) $20,000,000 for awards described in paragraph
(2)(A)(ii); and
``(III) $10,000,000 for the award described in paragraph
(2)(A)(iii).
``(ii) Administration.--In addition to the amounts
authorized in clause (i), there are authorized to be
appropriated to the Secretary for each of fiscal years 2008
and 2009 $2,000,000 for the administrative costs of carrying
out this subsection.
``(B) Carryover of funds.--Funds appropriated for prize
awards under this subsection shall remain available until
expended, and may be transferred, reprogrammed, or expended
for other purposes only after the expiration of 10 fiscal
years after the fiscal year for which the funds were
originally appropriated. No provision in this subsection
permits obligation or payment of funds in violation of
section 1341 of title 31 of the United States Code (commonly
referred to as the Anti-Deficiency Act).
[[Page H14374]]
``(8) Nonsubstitution.--The programs created under this
subsection shall not be considered a substitute for Federal
research and development programs.''.
SEC. 655. BRIGHT TOMORROW LIGHTING PRIZES.
(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, as part of the program carried out
under section 1008 of the Energy Policy Act of 2005 (42
U.S.C. 16396), the Secretary shall establish and award Bright
Tomorrow Lighting Prizes for solid state lighting in
accordance with this section.
(b) Prize Specifications.--
(1) 60-watt incandescent replacement lamp prize.--The
Secretary shall award a 60-Watt Incandescent Replacement Lamp
Prize to an entrant that produces a solid-state light package
simultaneously capable of--
(A) producing a luminous flux greater than 900 lumens;
(B) consuming less than or equal to 10 watts;
(C) having an efficiency greater than 90 lumens per watt;
(D) having a color rendering index greater than 90;
(E) having a correlated color temperature of not less than
2,750, and not more than 3,000, degrees Kelvin;
(F) having 70 percent of the lumen value under subparagraph
(A) exceeding 25,000 hours under typical conditions expected
in residential use;
(G) having a light distribution pattern similar to a soft
60-watt incandescent A19 bulb;
(H) having a size and shape that fits within the maximum
dimensions of an A19 bulb in accordance with American
National Standards Institute standard C78.20-2003, figure
C78.20-211;
(I) using a single contact medium screw socket; and
(J) mass production for a competitive sales commercial
market satisfied by producing commercially accepted quality
control lots of such units equal to or exceeding the criteria
described in subparagraphs (A) through (I).
(2) PAR type 38 halogen replacement lamp prize.--The
Secretary shall award a Parabolic Aluminized Reflector Type
38 Halogen Replacement Lamp Prize (referred to in this
section as the ``PAR Type 38 Halogen Replacement Lamp
Prize'') to an entrant that produces a solid-state-light
package simultaneously capable of--
(A) producing a luminous flux greater than or equal to
1,350 lumens;
(B) consuming less than or equal to 11 watts;
(C) having an efficiency greater than 123 lumens per watt;
(D) having a color rendering index greater than or equal to
90;
(E) having a correlated color coordinate temperature of not
less than 2,750, and not more than 3,000, degrees Kelvin;
(F) having 70 percent of the lumen value under subparagraph
(A) exceeding 25,000 hours under typical conditions expected
in residential use;
(G) having a light distribution pattern similar to a PAR 38
halogen lamp;
(H) having a size and shape that fits within the maximum
dimensions of a PAR 38 halogen lamp in accordance with
American National Standards Institute standard C78-21-2003,
figure C78.21-238;
(I) using a single contact medium screw socket; and
(J) mass production for a competitive sales commercial
market satisfied by producing commercially accepted quality
control lots of such units equal to or exceeding the criteria
described in subparagraphs (A) through (I).
(3) Twenty-first century lamp prize.--The Secretary shall
award a Twenty-First Century Lamp Prize to an entrant that
produces a solid-state-light-light capable of--
(A) producing a light output greater than 1,200 lumens;
(B) having an efficiency greater than 150 lumens per watt;
(C) having a color rendering index greater than 90;
(D) having a color coordinate temperature between 2,800 and
3,000 degrees Kelvin; and
(E) having a lifetime exceeding 25,000 hours.
(c) Private Funds.--
(1) In general.--Subject to paragraph (2), and
notwithstanding section 3302 of title 31, United States Code,
the Secretary may accept, retain, and use funds contributed
by any person, government entity, or organization for
purposes of carrying out this subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(2) Prize competition.--A private source of funding may not
participate in the competition for prizes awarded under this
section.
(d) Technical Review.--The Secretary shall establish a
technical review committee composed of non-Federal officers
to review entrant data submitted under this section to
determine whether the data meets the prize specifications
described in subsection (b).
(e) Third Party Administration.--The Secretary may
competitively select a third party to administer awards under
this section.
(f) Eligibility for Prizes.--To be eligible to be awarded a
prize under this section--
(1) in the case of a private entity, the entity shall be
incorporated in and maintain a primary place of business in
the United States; and
(2) in the case of an individual (whether participating as
a single individual or in a group), the individual shall be a
citizen or lawful permanent resident of the United States.
(g) Award Amounts.--Subject to the availability of funds to
carry out this section, the amount of--
(1) the 60-Watt Incandescent Replacement Lamp Prize
described in subsection (b)(1) shall be $10,000,000;
(2) the PAR Type 38 Halogen Replacement Lamp Prize
described in subsection (b)(2) shall be $5,000,000; and
(3) the Twenty-First Century Lamp Prize described in
subsection (b)(3) shall be $5,000,000.
(h) Federal Procurement of Solid-State-Lights.--
(1) 60-watt incandescent replacement.--Subject to paragraph
(3), as soon as practicable after the successful award of the
60-Watt Incandescent Replacement Lamp Prize under subsection
(b)(1), the Secretary (in consultation with the Administrator
of General Services) shall develop governmentwide Federal
purchase guidelines with a goal of replacing the use of 60-
watt incandescent lamps in Federal Government buildings with
a solid-state-light package described in subsection (b)(1) by
not later than the date that is 5 years after the date the
award is made.
(2) PAR 38 halogen replacement lamp replacement.--Subject
to paragraph (3), as soon as practicable after the successful
award of the PAR Type 38 Halogen Replacement Lamp Prize under
subsection (b)(2), the Secretary (in consultation with the
Administrator of General Services) shall develop
governmentwide Federal purchase guidelines with the goal of
replacing the use of PAR 38 halogen lamps in Federal
Government buildings with a solid-state-light package
described in subsection (b)(2) by not later than the date
that is 5 years after the date the award is made.
(3) Waivers.--
(A) In general.--The Secretary or the Administrator of
General Services may waive the application of paragraph (1)
or (2) if the Secretary or Administrator determines that the
return on investment from the purchase of a solid-state-light
package described in paragraph (1) or (2) of subsection (b),
respectively, is cost prohibitive.
(B) Report of waiver.--If the Secretary or Administrator
waives the application of paragraph (1) or (2), the Secretary
or Administrator, respectively, shall submit to Congress an
annual report that describes the waiver and provides a
detailed justification for the waiver.
(i) Report.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter, the
Administrator of General Services shall submit to the Energy
Information Agency a report describing the quantity, type,
and cost of each lighting product purchased by the Federal
Government.
(j) Bright Tomorrow Lighting Award Fund.--
(1) Establishment.--There is established in the United
States Treasury a Bright Tomorrow Lighting permanent fund
without fiscal year limitation to award prizes under
paragraphs (1), (2), and (3) of subsection (b).
(2) Sources of funding.--The fund established under
paragraph (1) shall accept--
(A) fiscal year appropriations; and
(B) private contributions authorized under subsection (c).
(k) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
SEC. 656. RENEWABLE ENERGY INNOVATION MANUFACTURING
PARTNERSHIP.
(a) Establishment.--The Secretary shall carry out a
program, to be known as the Renewable Energy Innovation
Manufacturing Partnership Program (referred to in this
section as the ``Program''), to make assistance awards to
eligible entities for use in carrying out research,
development, and demonstration relating to the manufacturing
of renewable energy technologies.
(b) Solicitation.--To carry out the Program, the Secretary
shall annually conduct a competitive solicitation for
assistance awards for an eligible project described in
subsection (e).
(c) Program Purposes.--The purposes of the Program are--
(1) to develop, or aid in the development of, advanced
manufacturing processes, materials, and infrastructure;
(2) to increase the domestic production of renewable energy
technology and components; and
(3) to better coordinate Federal, State, and private
resources to meet regional and national renewable energy
goals through advanced manufacturing partnerships.
(d) Eligible Entities.--An entity shall be eligible to
receive an assistance award under the Program to carry out an
eligible project described in subsection (e) if the entity is
composed of--
(1) 1 or more public or private nonprofit institutions or
national laboratories engaged in research, development,
demonstration, or technology transfer, that would participate
substantially in the project; and
(2) 1 or more private entities engaged in the manufacturing
or development of renewable energy system components
(including solar energy, wind energy, biomass, geothermal
energy, energy storage, or fuel cells).
(e) Eligible Projects.--An eligible entity may use an
assistance award provided under this section to carry out a
project relating to--
[[Page H14375]]
(1) the conduct of studies of market opportunities for
component manufacturing of renewable energy systems;
(2) the conduct of multiyear applied research, development,
demonstration, and deployment projects for advanced
manufacturing processes, materials, and infrastructure for
renewable energy systems; and
(3) other similar ventures, as approved by the Secretary,
that promote advanced manufacturing of renewable
technologies.
(f) Criteria and Guidelines.--The Secretary shall establish
criteria and guidelines for the submission, evaluation, and
funding of proposed projects under the Program.
(g) Cost Sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall apply to a project carried out
under this section.
(h) Disclosure.--The Secretary may, for a period of up to
five years after an award is granted under this section,
exempt from mandatory disclosure under section 552 of title
5, United States Code (popularly known as the Freedom of
Information Act) information that the Secretary determines
would be a privileged or confidential trade secret or
commercial or financial information under subsection (b)(4)
of such section if the information had been obtained from a
non-Government party.
(i) Sense of the Congress.--It is the sense of the Congress
that the Secretary should ensure that small businesses
engaged in renewable manufacturing be given priority
consideration for the assistance awards provided under this
section.
(j) Authorization of Appropriations.--There is authorized
to be appropriated out of funds already authorized to carry
out this section $25,000,000 for each of fiscal years 2008
through 2013, to remain available until expended.
TITLE VII--CARBON CAPTURE AND SEQUESTRATION
Subtitle A--Carbon Capture and Sequestration Research, Development, and
Demonstration
SEC. 701. SHORT TITLE.
This subtitle may be cited as the ``Department of Energy
Carbon Capture and Sequestration Research, Development, and
Demonstration Act of 2007''.
SEC. 702. CARBON CAPTURE AND SEQUESTRATION RESEARCH,
DEVELOPMENT, AND DEMONSTRATION PROGRAM.
(a) Amendment.--Section 963 of the Energy Policy Act of
2005 (42 U.S.C. 16293) is amended--
(1) in the section heading, by striking ``RESEARCH AND
DEVELOPMENT'' and inserting ``AND SEQUESTRATION RESEARCH,
DEVELOPMENT, AND DEMONSTRATION'';
(2) in subsection (a)--
(A) by striking ``research and development'' and inserting
``and sequestration research, development, and
demonstration''; and
(B) by striking ``capture technologies on combustion-based
systems'' and inserting ``capture and sequestration
technologies related to industrial sources of carbon
dioxide'';
(3) in subsection (b)--
(A) in paragraph (3), by striking ``and'' at the end;
(B) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) to expedite and carry out large-scale testing of
carbon sequestration systems in a range of geologic
formations that will provide information on the cost and
feasibility of deployment of sequestration technologies.'';
and
(4) by striking subsection (c) and inserting the following:
``(c) Programmatic Activities.--
``(1) Fundamental science and engineering research and
development and demonstration supporting carbon capture and
sequestration technologies and carbon use activities.--
``(A) In general.--The Secretary shall carry out
fundamental science and engineering research (including
laboratory-scale experiments, numeric modeling, and
simulations) to develop and document the performance of new
approaches to capture and sequester, or use carbon dioxide to
lead to an overall reduction of carbon dioxide emissions.
``(B) Program integration.--The Secretary shall ensure that
fundamental research carried out under this paragraph is
appropriately applied to energy technology development
activities, the field testing of carbon sequestration, and
carbon use activities, including--
``(i) development of new or advanced technologies for the
capture and sequestration of carbon dioxide;
``(ii) development of new or advanced technologies that
reduce the cost and increase the efficacy of advanced
compression of carbon dioxide required for the sequestration
of carbon dioxide;
``(iii) modeling and simulation of geologic sequestration
field demonstrations;
``(iv) quantitative assessment of risks relating to
specific field sites for testing of sequestration
technologies;
``(v) research and development of new and advanced
technologies for carbon use, including recycling and reuse of
carbon dioxide; and
``(vi) research and development of new and advanced
technologies for the separation of oxygen from air.
``(2) Field validation testing activities.--
``(A) In general.--The Secretary shall promote, to the
maximum extent practicable, regional carbon sequestration
partnerships to conduct geologic sequestration tests
involving carbon dioxide injection and monitoring,
mitigation, and verification operations in a variety of
candidate geologic settings, including--
``(i) operating oil and gas fields;
``(ii) depleted oil and gas fields;
``(iii) unmineable coal seams;
``(iv) deep saline formations;
``(v) deep geologic systems that may be used as engineered
reservoirs to extract economical quantities of heat from
geothermal resources of low permeability or porosity; and
``(vi) deep geologic systems containing basalt formations.
``(B) Objectives.--The objectives of tests conducted under
this paragraph shall be--
``(i) to develop and validate geophysical tools, analysis,
and modeling to monitor, predict, and verify carbon dioxide
containment;
``(ii) to validate modeling of geologic formations;
``(iii) to refine sequestration capacity estimated for
particular geologic formations;
``(iv) to determine the fate of carbon dioxide concurrent
with and following injection into geologic formations;
``(v) to develop and implement best practices for
operations relating to, and monitoring of, carbon dioxide
injection and sequestration in geologic formations;
``(vi) to assess and ensure the safety of operations
related to geologic sequestration of carbon dioxide;
``(vii) to allow the Secretary to promulgate policies,
procedures, requirements, and guidance to ensure that the
objectives of this subparagraph are met in large-scale
testing and deployment activities for carbon capture and
sequestration that are funded by the Department of Energy;
and
``(viii) to provide information to States, the
Environmental Protection Agency, and other appropriate
entities to support development of a regulatory framework for
commercial-scale sequestration operations that ensure the
protection of human health and the environment.
``(3) Large-scale carbon dioxide sequestration testing.--
``(A) In general.--The Secretary shall conduct not less
than 7 initial large-scale sequestration tests, not including
the FutureGen project, for geologic containment of carbon
dioxide to collect and validate information on the cost and
feasibility of commercial deployment of technologies for
geologic containment of carbon dioxide. These 7 tests may
include any Regional Partnership projects awarded as of the
date of enactment of the Department of Energy Carbon Capture
and Sequestration Research, Development, and Demonstration
Act of 2007.
``(B) Diversity of formations to be studied.--In selecting
formations for study under this paragraph, the Secretary
shall consider a variety of geologic formations across the
United States, and require characterization and modeling of
candidate formations, as determined by the Secretary.
``(C) Source of carbon dioxide for large-scale
sequestration tests.--In the process of any acquisition of
carbon dioxide for sequestration tests under subparagraph
(A), the Secretary shall give preference to sources of carbon
dioxide from industrial sources. To the extent feasible, the
Secretary shall prefer tests that would facilitate the
creation of an integrated system of capture, transportation
and sequestration of carbon dioxide. The preference provided
for under this subparagraph shall not delay the
implementation of the large-scale sequestration tests under
this paragraph.
``(D) Definition.--For purposes of this paragraph, the term
`large-scale' means the injection of more than 1,000,000 tons
of carbon dioxide from industrial sources annually or a scale
that demonstrates the ability to inject and sequester several
million metric tons of industrial source carbon dioxide for a
large number of years.
``(4) Preference in project selection from meritorious
proposals.--In making competitive awards under this
subsection, subject to the requirements of section 989, the
Secretary shall--
``(A) give preference to proposals from partnerships among
industrial, academic, and government entities; and
``(B) require recipients to provide assurances that all
laborers and mechanics employed by contractors and
subcontractors in the construction, repair, or alteration of
new or existing facilities performed in order to carry out a
demonstration or commercial application activity authorized
under this subsection shall be paid wages at rates not less
than those prevailing on similar construction in the
locality, as determined by the Secretary of Labor in
accordance with subchapter IV of chapter 31 of title 40,
United States Code, and the Secretary of Labor shall, with
respect to the labor standards in this paragraph, have the
authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C. Appendix)
and section 3145 of title 40, United States Code.
``(5) Cost sharing.--Activities under this subsection shall
be considered research and development activities that are
subject to the cost sharing requirements of section 988(b).
``(6) Program review and report.--During fiscal year 2011,
the Secretary shall--
[[Page H14376]]
``(A) conduct a review of programmatic activities carried
out under this subsection; and
``(B) make recommendations with respect to continuation of
the activities.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) $240,000,000 for fiscal year 2008;
``(2) $240,000,000 for fiscal year 2009;
``(3) $240,000,000 for fiscal year 2010;
``(4) $240,000,000 for fiscal year 2011; and
``(5) $240,000,000 for fiscal year 2012.''.
(b) Table of Contents Amendment.--The item relating to
section 963 in the table of contents for the Energy Policy
Act of 2005 is amended to read as follows:
``Sec. 963. Carbon capture and sequestration research, development, and
demonstration program.''.
SEC. 703. CARBON CAPTURE.
(a) Program Establishment.--
(1) In general.--The Secretary shall carry out a program to
demonstrate technologies for the large-scale capture of
carbon dioxide from industrial sources. In making awards
under this program, the Secretary shall select, as
appropriate, a diversity of capture technologies to address
the need to capture carbon dioxide from a range of industrial
sources.
(2) Scope of award.--Awards under this section shall be
only for the portion of the project that--
(A) carries out the large-scale capture (including
purification and compression) of carbon dioxide from
industrial sources;
(B) provides for the transportation and injection of carbon
dioxide; and
(C) incorporates a comprehensive measurement, monitoring,
and validation program.
(3) Preferences for award.--To ensure reduced carbon
dioxide emissions, the Secretary shall take necessary actions
to provide for the integration of the program under this
paragraph with the large-scale carbon dioxide sequestration
tests described in section 963(c)(3) of the Energy Policy Act
of 2005 (42 U.S.C. 16293(c)(3)), as added by section 702 of
this subtitle. These actions should not delay implementation
of these tests. The Secretary shall give priority
consideration to projects with the following characteristics:
(A) Capacity.--Projects that will capture a high percentage
of the carbon dioxide in the treated stream and large volumes
of carbon dioxide as determined by the Secretary.
(B) Sequestration.--Projects that capture carbon dioxide
from industrial sources that are near suitable geological
reservoirs and could continue sequestration including--
(i) a field testing validation activity under section 963
of the Energy Policy Act of 2005 (42 U.S.C. 16293), as
amended by this Act; or
(ii) other geologic sequestration projects approved by the
Secretary.
(4) Requirement.--For projects that generate carbon dioxide
that is to be sequestered, the carbon dioxide stream shall be
of a sufficient purity level to allow for safe transport and
sequestration.
(5) Cost-sharing.--The cost-sharing requirements of section
988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) for
research and development projects shall apply to this
section.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$200,000,000 per year for fiscal years 2009 through 2013.
SEC. 704. REVIEW OF LARGE-SCALE PROGRAMS.
The Secretary shall enter into an arrangement with the
National Academy of Sciences for an independent review and
oversight, beginning in 2011, of the programs under section
963(c)(3) of the Energy Policy Act of 2005 (42 U.S.C.
16293(c)(3)), as added by section 702 of this subtitle, and
under section 703 of this subtitle, to ensure that the
benefits of such programs are maximized. Not later than
January 1, 2012, the Secretary shall transmit to the Congress
a report on the results of such review and oversight.
SEC. 705. GEOLOGIC SEQUESTRATION TRAINING AND RESEARCH.
(a) Study.--
(1) In general.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to
undertake a study that--
(A) defines an interdisciplinary program in geology,
engineering, hydrology, environmental science, and related
disciplines that will support the Nation's capability to
capture and sequester carbon dioxide from anthropogenic
sources;
(B) addresses undergraduate and graduate education,
especially to help develop graduate level programs of
research and instruction that lead to advanced degrees with
emphasis on geologic sequestration science;
(C) develops guidelines for proposals from colleges and
universities with substantial capabilities in the required
disciplines that seek to implement geologic sequestration
science programs that advance the Nation's capacity to
address carbon management through geologic sequestration
science; and
(D) outlines a budget and recommendations for how much
funding will be necessary to establish and carry out the
grant program under subsection (b).
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit to the
Congress a copy of the results of the study provided by the
National Academy of Sciences under paragraph (1).
(3) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
subsection $1,000,000 for fiscal year 2008.
(b) Grant Program.--
(1) Establishment.--The Secretary shall establish a
competitive grant program through which colleges and
universities may apply for and receive 4-year grants for--
(A) salary and startup costs for newly designated faculty
positions in an integrated geologic carbon sequestration
science program; and
(B) internships for graduate students in geologic
sequestration science.
(2) Renewal.--Grants under this subsection shall be
renewable for up to 2 additional 3-year terms, based on
performance criteria, established by the National Academy of
Sciences study conducted under subsection (a), that include
the number of graduates of such programs.
(3) Interface with regional geologic carbon sequestration
partnerships.--To the greatest extent possible, geologic
carbon sequestration science programs supported under this
subsection shall interface with the research of the Regional
Carbon Sequestration Partnerships operated by the Department
to provide internships and practical training in carbon
capture and geologic sequestration.
(4) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
subsection such sums as may be necessary.
SEC. 706. RELATION TO SAFE DRINKING WATER ACT.
The injection and geologic sequestration of carbon dioxide
pursuant to this subtitle and the amendments made by this
subtitle shall be subject to the requirements of the Safe
Drinking Water Act (42 U.S.C. 300f et seq.), including the
provisions of part C of such Act (42 U.S.C. 300h et seq.;
relating to protection of underground sources of drinking
water). Nothing in this subtitle and the amendments made by
this subtitle imposes or authorizes the promulgation of any
requirement that is inconsistent or in conflict with the
requirements of the Safe Drinking Water Act (42 U.S.C. 300f
et seq.) or regulations thereunder.
SEC. 707. SAFETY RESEARCH.
(a) Program.--The Administrator of the Environmental
Protection Agency shall conduct a research program to address
public health, safety, and environmental impacts that may be
associated with capture, injection, and sequestration of
greenhouse gases in geologic reservoirs.
(b) Authorization of Appropriations.--There are authorized
to be appropriated for carrying out this section $5,000,000
for each fiscal year.
SEC. 708. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT
PROGRAM.
(a) Establishment.--The Secretary, in consultation with
other appropriate agencies, shall establish a university
based research and development program to study carbon
capture and sequestration using the various types of coal.
(b) Rural and Agricultural Institutions.--The Secretary
shall give special consideration to rural or agricultural
based institutions in areas that have regional sources of
coal and that offer interdisciplinary programs in the area of
environmental science to study carbon capture and
sequestration.
(c) Authorization of Appropriations.--There are to be
authorized to be appropriated $10,000,000 to carry out this
section.
Subtitle B--Carbon Capture and Sequestration Assessment and Framework
SEC. 711. CARBON DIOXIDE SEQUESTRATION CAPACITY ASSESSMENT.
(a) Definitions.--In this section
(1) Assessment.--The term ``assessment'' means the national
assessment of onshore capacity for carbon dioxide completed
under subsection (f).
(2) Capacity.--The term ``capacity'' means the portion of a
sequestration formation that can retain carbon dioxide in
accordance with the requirements (including physical,
geological, and economic requirements) established under the
methodology developed under subsection (b).
(3) Engineered hazard.--The term ``engineered hazard''
includes the location and completion history of any well that
could affect potential sequestration.
(4) Risk.--The term ``risk'' includes any risk posed by
geomechanical, geochemical, hydrogeological, structural, and
engineered hazards.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the United
States Geological Survey.
(6) Sequestration formation.--The term ``sequestration
formation'' means a deep saline formation, unmineable coal
seam, or oil or gas reservoir that is capable of
accommodating a volume of industrial carbon dioxide.
(b) Methodology.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop a
methodology for conducting an assessment under subsection
(f), taking into consideration--
(1) the geographical extent of all potential sequestration
formations in all States;
(2) the capacity of the potential sequestration formations;
(3) the injectivity of the potential sequestration
formations;
(4) an estimate of potential volumes of oil and gas
recoverable by injection and sequestration of industrial
carbon dioxide in potential sequestration formations;
[[Page H14377]]
(5) the risk associated with the potential sequestration
formations; and
(6) the work done to develop the Carbon Sequestration Atlas
of the United States and Canada that was completed by the
Department.
(c) Coordination.--
(1) Federal coordination.--
(A) Consultation.--The Secretary shall consult with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency on issues of data sharing,
format, development of the methodology, and content of the
assessment required under this section to ensure the maximum
usefulness and success of the assessment.
(B) Cooperation.--The Secretary of Energy and the
Administrator shall cooperate with the Secretary to ensure,
to the maximum extent practicable, the usefulness and success
of the assessment.
(2) State coordination.--The Secretary shall consult with
State geological surveys and other relevant entities to
ensure, to the maximum extent practicable, the usefulness and
success of the assessment.
(d) External Review and Publication.--On completion of the
methodology under subsection (b), the Secretary shall--
(1) publish the methodology and solicit comments from the
public and the heads of affected Federal and State agencies;
(2) establish a panel of individuals with expertise in the
matters described in paragraphs (1) through (5) of subsection
(b) composed, as appropriate, of representatives of Federal
agencies, institutions of higher education, nongovernmental
organizations, State organizations, industry, and
international geoscience organizations to review the
methodology and comments received under paragraph (1); and
(3) on completion of the review under paragraph (2),
publish in the Federal Register the revised final
methodology.
(e) Periodic Updates.--The methodology developed under this
section shall be updated periodically (including at least
once every 5 years) to incorporate new data as the data
becomes available.
(f) National Assessment.--
(1) In general.--Not later than 2 years after the date of
publication of the methodology under subsection (d)(1), the
Secretary, in consultation with the Secretary of Energy and
State geological surveys, shall complete a national
assessment of capacity for carbon dioxide in accordance with
the methodology.
(2) Geological verification.--As part of the assessment
under this subsection, the Secretary shall carry out a
drilling program to supplement the geological data relevant
to determining sequestration capacity of carbon dioxide in
geological sequestration formations, including--
(A) well log data;
(B) core data; and
(C) fluid sample data.
(3) Partnership with other drilling programs.--As part of
the drilling program under paragraph (2), the Secretary shall
enter, as appropriate, into partnerships with other entities
to collect and integrate data from other drilling programs
relevant to the sequestration of carbon dioxide in geological
formations.
(4) Incorporation into natcarb.--
(A) In general.--On completion of the assessment, the
Secretary of Energy and the Secretary of the Interior shall
incorporate the results of the assessment using--
(i) the NatCarb database, to the maximum extent
practicable; or
(ii) a new database developed by the Secretary of Energy,
as the Secretary of Energy determines to be necessary.
(B) Ranking.--The database shall include the data necessary
to rank potential sequestration sites for capacity and risk,
across the United States, within each State, by formation,
and within each basin.
(5) Report.--Not later than 180 days after the date on
which the assessment is completed, the Secretary shall submit
to the Committee on Energy and Natural Resources of the
Senate and the Committee on Natural Resources of the House of
Representatives a report describing the findings under the
assessment.
(6) Periodic updates.--The national assessment developed
under this section shall be updated periodically (including
at least once every 5 years) to support public and private
sector decisionmaking.
(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $30,000,000 for
the period of fiscal years 2008 through 2012.
SEC. 712. ASSESSMENT OF CARBON SEQUESTRATION AND METHANE AND
NITROUS OXIDE EMISSIONS FROM ECOSYSTEMS.
(a) Definitions.--In this section:
(1) Adaptation strategy.--The term ``adaptation strategy''
means a land use and management strategy that can be used--
(A) to increase the sequestration capabilities of covered
greenhouse gases of any ecosystem; or
(B) to reduce the emissions of covered greenhouse gases
from any ecosystem.
(2) Assessment.--The term ``assessment'' means the national
assessment authorized under subsection (b).
(3) Covered greenhouse gas.--The term ``covered greenhouse
gas'' means carbon dioxide, nitrous oxide, and methane gas.
(4) Ecosystem.--The term ``ecosystem'' means any
terrestrial, freshwater aquatic, or coastal ecosystem,
including an estuary.
(5) Native plant species.--The term ``native plant
species'' means any noninvasive, naturally occurring plant
species within an ecosystem.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Authorization of Assessment.--Not later than 2 years
after the date on which the final methodology is published
under subsection (f)(3)(D), the Secretary shall complete a
national assessment of--
(1) the quantity of carbon stored in and released from
ecosystems, including from man-caused and natural fires; and
(2) the annual flux of covered greenhouse gases in and out
of ecosystems.
(c) Components.--In conducting the assessment under
subsection (b), the Secretary shall--
(1) determine the processes that control the flux of
covered greenhouse gases in and out of each ecosystem;
(2) estimate the potential for increasing carbon
sequestration in natural and managed ecosystems through
management activities or restoration activities in each
ecosystem;
(3) develop near-term and long-term adaptation strategies
or mitigation strategies that can be employed--
(A) to enhance the sequestration of carbon in each
ecosystem;
(B) to reduce emissions of covered greenhouse gases from
ecosystems; and
(C) to adapt to climate change; and
(4) estimate the annual carbon sequestration capacity of
ecosystems under a range of policies in support of management
activities to optimize sequestration.
(d) Use of Native Plant Species.--In developing restoration
activities under subsection (c)(2) and management strategies
and adaptation strategies under subsection (c)(3), the
Secretary shall emphasize the use of native plant species
(including mixtures of many native plant species) for
sequestering covered greenhouse gas in each ecosystem.
(e) Consultation.--
(1) In general.--In conducting the assessment under
subsection (b) and developing the methodology under
subsection (f), the Secretary shall consult with--
(A) the Secretary of Energy;
(B) the Secretary of Agriculture;
(C) the Administrator of the Environmental Protection
Agency;
(D) the Secretary of Commerce, acting through the Under
Secretary for Oceans and Atmosphere; and
(E) the heads of other relevant agencies.
(2) Ocean and coastal ecosystems.--In carrying out this
section with respect to ocean and coastal ecosystems
(including estuaries), the Secretary shall work jointly with
the Secretary of Commerce, acting through the Under Secretary
for Oceans and Atmosphere.
(f) Methodology.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop a
methodology for conducting the assessment.
(2) Requirements.--The methodology developed under
paragraph (1)--
(A) shall--
(i) determine the method for measuring, monitoring, and
quantifying covered greenhouse gas emissions and reductions;
(ii) estimate the total capacity of each ecosystem to
sequester carbon; and
(iii) estimate the ability of each ecosystem to reduce
emissions of covered greenhouse gases through management
practices; and
(B) may employ economic and other systems models, analyses,
and estimates, to be developed in consultation with each of
the individuals described in subsection (e).
(3) External review and publication.--On completion of a
proposed methodology, the Secretary shall--
(A) publish the proposed methodology;
(B) at least 60 days before the date on which the final
methodology is published, solicit comments from--
(i) the public; and
(ii) heads of affected Federal and State agencies;
(C) establish a panel to review the proposed methodology
published under subparagraph (A) and any comments received
under subparagraph (B), to be composed of members--
(i) with expertise in the matters described in subsections
(c) and (d); and
(ii) that are, as appropriate, representatives of Federal
agencies, institutions of higher education, nongovernmental
organizations, State organizations, industry, and
international organizations; and
(D) on completion of the review under subparagraph (C),
publish in the Federal register the revised final
methodology.
(g) Estimate; Review.--The Secretary shall--
(1) based on the assessment, prescribe the data,
information, and analysis needed to establish a
scientifically sound estimate of the carbon sequestration
capacity of relevant ecosystems; and
(2) not later than 180 days after the date on which the
assessment is completed, submit to the heads of applicable
Federal agencies and the appropriate committees of Congress a
report that describes the results of the assessment.
(h) Data and Report Availability.--On completion of the
assessment, the Secretary shall incorporate the results of
the assessment into a web-accessible database for public use.
(i) Authorization.--There is authorized to be appropriated
to carry out this section $20,000,000 for the period of
fiscal years 2008 through 2012.
[[Page H14378]]
SEC. 713. CARBON DIOXIDE SEQUESTRATION INVENTORY.
Section 354 of the Energy Policy Act of 2005 (42 U.S.C.
15910) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Records and Inventory.--The Secretary of the
Interior, acting through the Bureau of Land Management, shall
maintain records on, and an inventory of, the quantity of
carbon dioxide stored within Federal mineral leaseholds.''.
SEC. 714. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION ON
PUBLIC LAND.
(a) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior shall
submit to the Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report on a recommended framework
for managing geological carbon sequestration activities on
public land.
(b) Contents.--The report required by subsection (a) shall
include the following:
(1) Recommended criteria for identifying candidate
geological sequestration sites in each of the following types
of geological settings:
(A) Operating oil and gas fields.
(B) Depleted oil and gas fields.
(C) Unmineable coal seams.
(D) Deep saline formations.
(E) Deep geological systems that may be used as engineered
reservoirs to extract economical quantities of heat from
geothermal resources of low permeability or porosity.
(F) Deep geological systems containing basalt formations.
(G) Coalbeds being used for methane recovery.
(2) A proposed regulatory framework for the leasing of
public land or an interest in public land for the long-term
geological sequestration of carbon dioxide, which includes an
assessment of options to ensure that the United States
receives fair market value for the use of public land or an
interest in public land for geological sequestration.
(3) A proposed procedure for ensuring that any geological
carbon sequestration activities on public land--
(A) provide for public review and comment from all
interested persons; and
(B) protect the quality of natural and cultural resources
of the public land overlaying a geological sequestration
site.
(4) A description of the status of Federal leasehold or
Federal mineral estate liability issues related to the
geological subsurface trespass of or caused by carbon dioxide
stored in public land, including any relevant experience from
enhanced oil recovery using carbon dioxide on public land.
(5) Recommendations for additional legislation that may be
required to ensure that public land management and leasing
laws are adequate to accommodate the long-term geological
sequestration of carbon dioxide.
(6) An identification of the legal and regulatory issues
specific to carbon dioxide sequestration on land in cases in
which title to mineral resources is held by the United States
but title to the surface estate is not held by the United
States.
(7)(A) An identification of the issues specific to the
issuance of pipeline rights-of-way on public land under the
Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1701 et
seq.) for natural or anthropogenic carbon dioxide.
(B) Recommendations for additional legislation that may be
required to clarify the appropriate framework for issuing
rights-of-way for carbon dioxide pipelines on public land.
(c) Consultation With Other Agencies.--In preparing the
report under this section, the Secretary of the Interior
shall coordinate with--
(1) the Administrator of the Environmental Protection
Agency;
(2) the Secretary of Energy; and
(3) the heads of other appropriate agencies.
(d) Compliance With Safe Drinking Water Act.--The Secretary
shall ensure that all recommendations developed under this
section are in compliance with all Federal environmental
laws, including the Safe Drinking Water Act (42 U.S.C. 300f
et seq.) and regulations under that Act.
TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY
Subtitle A--Management Improvements
SEC. 801. NATIONAL MEDIA CAMPAIGN.
(a) In General.--The Secretary, acting through the
Assistant Secretary for Energy Efficiency and Renewable
Energy (referred to in this section as the ``Secretary''),
shall develop and conduct a national media campaign--
(1) to increase energy efficiency throughout the economy of
the United States during the 10-year period beginning on the
date of enactment of this Act;
(2) to promote the national security benefits associated
with increased energy efficiency; and
(3) to decrease oil consumption in the United States during
the 10-year period beginning on the date of enactment of this
Act.
(b) Contract With Entity.--The Secretary shall carry out
subsection (a) directly or through--
(1) competitively bid contracts with 1 or more nationally
recognized media firms for the development and distribution
of monthly television, radio, and newspaper public service
announcements; or
(2) collective agreements with 1 or more nationally
recognized institutes, businesses, or nonprofit organizations
for the funding, development, and distribution of monthly
television, radio, and newspaper public service
announcements.
(c) Use of Funds.--
(1) In general.--Amounts made available to carry out this
section shall be used for--
(A) advertising costs, including--
(i) the purchase of media time and space;
(ii) creative and talent costs;
(iii) testing and evaluation of advertising; and
(iv) evaluation of the effectiveness of the media campaign;
and
(B) administrative costs, including operational and
management expenses.
(2) Limitations.--In carrying out this section, the
Secretary shall allocate not less than 85 percent of funds
made available under subsection (e) for each fiscal year for
the advertising functions specified under paragraph (1)(A).
(d) Reports.--The Secretary shall annually submit to
Congress a report that describes--
(1) the strategy of the national media campaign and whether
specific objectives of the campaign were accomplished,
including--
(A) determinations concerning the rate of change of energy
consumption, in both absolute and per capita terms; and
(B) an evaluation that enables consideration of whether the
media campaign contributed to reduction of energy
consumption;
(2) steps taken to ensure that the national media campaign
operates in an effective and efficient manner consistent with
the overall strategy and focus of the campaign;
(3) plans to purchase advertising time and space;
(4) policies and practices implemented to ensure that
Federal funds are used responsibly to purchase advertising
time and space and eliminate the potential for waste, fraud,
and abuse; and
(5) all contracts or cooperative agreements entered into
with a corporation, partnership, or individual working on
behalf of the national media campaign.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $5,000,000 for each of fiscal years
2008 through 2012.
(2) Decreased oil consumption.--The Secretary shall use not
less than 50 percent of the amount that is made available
under this section for each fiscal year to develop and
conduct a national media campaign to decrease oil consumption
in the United States over the next decade.
SEC. 802. ALASKA NATURAL GAS PIPELINE ADMINISTRATION.
Section 106 of the Alaska Natural Gas Pipeline Act (15
U.S.C. 720d) is amended by adding at the end the following:
``(h) Administration.--
``(1) Personnel appointments.--
``(A) In general.--The Federal Coordinator may appoint and
terminate such personnel as the Federal Coordinator
determines to be appropriate.
``(B) Authority of federal coordinator.--Personnel
appointed by the Federal Coordinator under subparagraph (A)
shall be appointed without regard to the provisions of title
5, United States Code, governing appointments in the
competitive service.
``(2) Compensation.--
``(A) In general.--Subject to subparagraph (B), personnel
appointed by the Federal Coordinator under paragraph (1)(A)
shall be paid without regard to the provisions of chapter 51
and subchapter III of chapter 53 of title 5, United States
Code (relating to classification and General Schedule pay
rates).
``(B) Maximum level of compensation.--The rate of pay for
personnel appointed by the Federal Coordinator under
paragraph (1)(A) shall not exceed the maximum level of rate
payable for level III of the Executive Schedule (5 U.S.C.
5314).
``(C) Allowances.--Section 5941 of title 5, United States
Code, shall apply to personnel appointed by the Federal
Coordinator under paragraph (1)(A).
``(3) Temporary services.--
``(A) In general.--The Federal Coordinator may procure
temporary and intermittent services in accordance with
section 3109(b) of title 5, United States Code.
``(B) Maximum level of compensation.--The level of
compensation of an individual employed on a temporary or
intermittent basis under subparagraph (A) shall not exceed
the maximum level of rate payable for level III of the
Executive Schedule (5 U.S.C. 5314).
``(4) Fees, charges, and commissions.--
``(A) In general.--With respect to the duties of the
Federal Coordinator, as described in this Act, the Federal
Coordinator shall have similar authority to establish,
change, and abolish reasonable filing and service fees,
charges, and commissions, require deposits of payments, and
provide refunds as provided to the Secretary of the Interior
in section 304 of the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1734).
``(B) Authority of secretary of the interior.--Subparagraph
(A) shall not affect the authority of the Secretary of the
Interior to establish, change, and abolish reasonable filing
and service fees, charges, and commissions, require deposits
of payments, and provide refunds under section 304 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C.
1734).
[[Page H14379]]
``(C) Use of funds.--The Federal Coordinator is authorized
to use, without further appropriation, amounts collected
under subparagraph (A) to carry out this section.''.
SEC. 803. RENEWABLE ENERGY DEPLOYMENT.
(a) Definitions.--In this section:
(1) Alaska small hydroelectric power.--The term ``Alaska
small hydroelectric power'' means power that--
(A) is generated--
(i) in the State of Alaska;
(ii) without the use of a dam or impoundment of water; and
(iii) through the use of--
(I) a lake tap (but not a perched alpine lake); or
(II) a run-of-river screened at the point of diversion; and
(B) has a nameplate capacity rating of a wattage that is
not more than 15 megawatts.
(2) Eligible applicant.--The term ``eligible applicant''
means any--
(A) governmental entity;
(B) private utility;
(C) public utility;
(D) municipal utility;
(E) cooperative utility;
(F) Indian tribes; and
(G) Regional Corporation (as defined in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602)).
(3) Ocean energy.--
(A) Inclusions.--The term ``ocean energy'' includes
current, wave, and tidal energy.
(B) Exclusion.--The term ``ocean energy'' excludes thermal
energy.
(4) Renewable energy project.--The term ``renewable energy
project'' means a project--
(A) for the commercial generation of electricity; and
(B) that generates electricity from--
(i) solar, wind, or geothermal energy or ocean energy;
(ii) biomass (as defined in section 203(b) of the Energy
Policy Act of 2005 (42 U.S.C. 15852(b)));
(iii) landfill gas; or
(iv) Alaska small hydroelectric power.
(b) Renewable Energy Construction Grants.--
(1) In general.--The Secretary shall use amounts
appropriated under this section to make grants for use in
carrying out renewable energy projects.
(2) Criteria.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall set forth criteria
for use in awarding grants under this section.
(3) Application.--To receive a grant from the Secretary
under paragraph (1), an eligible applicant shall submit to
the Secretary an application at such time, in such manner,
and containing such information as the Secretary may require,
including a written assurance that--
(A) all laborers and mechanics employed by contractors or
subcontractors during construction, alteration, or repair
that is financed, in whole or in part, by a grant under this
section shall be paid wages at rates not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor in accordance with
sections 3141-3144, 3146, and 3147 of title 40, United States
Code; and
(B) the Secretary of Labor shall, with respect to the labor
standards described in this paragraph, have the authority and
functions set forth in Reorganization Plan Numbered 14 of
1950 (5 U.S.C. App.) and section 3145 of title 40, United
States Code.
(4) Non-federal share.--Each eligible applicant that
receives a grant under this subsection shall contribute to
the total cost of the renewable energy project constructed by
the eligible applicant an amount not less than 50 percent of
the total cost of the project.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Fund such sums as are necessary to
carry out this section.
SEC. 804. COORDINATION OF PLANNED REFINERY OUTAGES.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Energy Information Administration.
(2) Planned refinery outage.--
(A) In general.--The term ``planned refinery outage'' means
a removal, scheduled before the date on which the removal
occurs, of a refinery, or any unit of a refinery, from
service for maintenance, repair, or modification.
(B) Exclusion.--The term ``planned refinery outage'' does
not include any necessary and unplanned removal of a
refinery, or any unit of a refinery, from service as a result
of a component failure, safety hazard, emergency, or action
reasonably anticipated to be necessary to prevent such
events.
(3) Refined petroleum product.--The term ``refined
petroleum product'' means any gasoline, diesel fuel, fuel
oil, lubricating oil, liquid petroleum gas, or other
petroleum distillate that is produced through the refining or
processing of crude oil or an oil derived from tar sands,
shale, or coal.
(4) Refinery.--The term ``refinery'' means a facility used
in the production of a refined petroleum product through
distillation, cracking, or any other process.
(b) Review and Analysis of Available Information.--The
Administrator shall, on an ongoing basis--
(1) review information on refinery outages that is
available from commercial reporting services;
(2) analyze that information to determine whether the
scheduling of a refinery outage may nationally or regionally
substantially affect the price or supply of any refined
petroleum product by--
(A) decreasing the production of the refined petroleum
product; and
(B) causing or contributing to a retail or wholesale supply
shortage or disruption;
(3) not less frequently than twice each year, submit to the
Secretary a report describing the results of the review and
analysis under paragraphs (1) and (2); and
(4) specifically alert the Secretary of any refinery outage
that the Administrator determines may nationally or
regionally substantially affect the price or supply of a
refined petroleum product.
(c) Action by Secretary.--On a determination by the
Secretary, based on a report or alert under paragraph (3) or
(4) of subsection (b), that a refinery outage may affect the
price or supply of a refined petroleum product, the Secretary
shall make available to refinery operators information on
planned refinery outages to encourage reductions of the
quantity of refinery capacity that is out of service at any
time.
(d) Limitation.--Nothing in this section shall alter any
existing legal obligation or responsibility of a refinery
operator, or create any legal right of action, nor shall this
section authorize the Secretary--
(1) to prohibit a refinery operator from conducting a
planned refinery outage; or
(2) to require a refinery operator to continue to operate a
refinery.
SEC. 805. ASSESSMENT OF RESOURCES.
(a) 5-Year Plan.--
(1) Establishment.--The Administrator of the Energy
Information Administration (referred to in this section as
the ``Administrator'') shall establish a 5-year plan to
enhance the quality and scope of the data collection
necessary to ensure the scope, accuracy, and timeliness of
the information needed for efficient functioning of energy
markets and related financial operations.
(2) Requirement.--In establishing the plan under paragraph
(1), the Administrator shall pay particular attention to--
(A) data series terminated because of budget constraints;
(B) data on demand response;
(C) timely data series of State-level information;
(D) improvements in the area of oil and gas data;
(E) improvements in data on solid byproducts from coal-
based energy-producing facilities; and
(F) the ability to meet applicable deadlines under Federal
law (including regulations) to provide data required by
Congress.
(b) Submission to Congress.--The Administrator shall submit
to Congress the plan established under subsection (a),
including a description of any improvements needed to enhance
the ability of the Administrator to collect and process
energy information in a manner consistent with the needs of
energy markets.
(c) Guidelines.--
(1) In general.--The Administrator shall--
(A) establish guidelines to ensure the quality,
comparability, and scope of State energy data, including data
on energy production and consumption by product and sector
and renewable and alternative sources, required to provide a
comprehensive, accurate energy profile at the State level;
(B) share company-level data collected at the State level
with each State involved, in a manner consistent with the
legal authorities, confidentiality protections, and stated
uses in effect at the time the data were collected, subject
to the condition that the State shall agree to reasonable
requirements for use of the data, as the Administrator may
require;
(C) assess any existing gaps in data obtained and compiled
by the Energy Information Administration; and
(D) evaluate the most cost-effective ways to address any
data quality and quantity issues in conjunction with State
officials.
(2) Consultation.--The Administrator shall consult with
State officials and the Federal Energy Regulatory Commission
on a regular basis in--
(A) establishing guidelines and determining the scope of
State-level data under paragraph (1); and
(B) exploring ways to address data needs and serve data
uses.
(d) Assessment of State Data Needs.--Not later than 1 year
after the date of enactment of this Act, the Administrator
shall submit to Congress an assessment of State-level data
needs, including a plan to address the needs.
(e) Authorization of Appropriations.--In addition to any
other amounts made available to the Administrator, there are
authorized to be appropriated to the Administrator to carry
out this section--
(1) $10,000,000 for fiscal year 2008;
(2) $10,000,000 for fiscal year 2009;
(3) $10,000,000 for fiscal year 2010;
(4) $15,000,000 for fiscal year 2011;
(5) $20,000,000 for fiscal year 2012; and
(6) such sums as are necessary for subsequent fiscal years.
SEC. 806. SENSE OF CONGRESS RELATING TO THE USE OF RENEWABLE
RESOURCES TO GENERATE ENERGY.
(a) Findings.--Congress finds that--
(1) the United States has a quantity of renewable energy
resources that is sufficient to supply a significant portion
of the energy needs of the United States;
[[Page H14380]]
(2) the agricultural, forestry, and working land of the
United States can help ensure a sustainable domestic energy
system;
(3) accelerated development and use of renewable energy
technologies provide numerous benefits to the United States,
including improved national security, improved balance of
payments, healthier rural economies, improved environmental
quality, and abundant, reliable, and affordable energy for
all citizens of the United States;
(4) the production of transportation fuels from renewable
energy would help the United States meet rapidly growing
domestic and global energy demands, reduce the dependence of
the United States on energy imported from volatile regions of
the world that are politically unstable, stabilize the cost
and availability of energy, and safeguard the economy and
security of the United States;
(5) increased energy production from domestic renewable
resources would attract substantial new investments in energy
infrastructure, create economic growth, develop new jobs for
the citizens of the United States, and increase the income
for farm, ranch, and forestry jobs in the rural regions of
the United States;
(6) increased use of renewable energy is practical and can
be cost effective with the implementation of supportive
policies and proper incentives to stimulate markets and
infrastructure; and
(7) public policies aimed at enhancing renewable energy
production and accelerating technological improvements will
further reduce energy costs over time and increase market
demand.
(b) Sense of Congress.--It is the sense of Congress that it
is the goal of the United States that, not later than January
1, 2025, the agricultural, forestry, and working land of the
United States should--
(1) provide from renewable resources not less than 25
percent of the total energy consumed in the United States;
and
(2) continue to produce safe, abundant, and affordable
food, feed, and fiber.
SEC. 807. GEOTHERMAL ASSESSMENT, EXPLORATION INFORMATION, AND
PRIORITY ACTIVITIES.
(a) In General.--Not later than January 1, 2012, the
Secretary of the Interior, acting through the Director of the
United States Geological Survey, shall--
(1) complete a comprehensive nationwide geothermal resource
assessment that examines the full range of geothermal
resources in the United States; and
(2) submit to the the Committee on Natural Resources of the
House of Representatives and the Committee on Energy and
Natural Resources of the Senate a report describing the
results of the assessment.
(b) Periodic Updates.--At least once every 10 years, the
Secretary shall update the national assessment required under
this section to support public and private sector
decisionmaking.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of the Interior to carry
out this section--
(1) $15,000,000 for each of fiscal years 2008 through 2012;
and
(2) such sums as are necessary for each of fiscal years
2013 through 2022.
Subtitle B--Prohibitions on Market Manipulation and False Information
SEC. 811. PROHIBITION ON MARKET MANIPULATION.
It is unlawful for any person, directly or indirectly, to
use or employ, in connection with the purchase or sale of
crude oil gasoline or petroleum distillates at wholesale, any
manipulative or deceptive device or contrivance, in
contravention of such rules and regulations as the Federal
Trade Commission may prescribe as necessary or appropriate in
the public interest or for the protection of United States
citizens.
SEC. 812. PROHIBITION ON FALSE INFORMATION.
It is unlawful for any person to report information related
to the wholesale price of crude oil gasoline or petroleum
distillates to a Federal department or agency if--
(1) the person knew, or reasonably should have known, the
information to be false or misleading;
(2) the information was required by law to be reported; and
(3) the person intended the false or misleading data to
affect data compiled by the department or agency for
statistical or analytical purposes with respect to the market
for crude oil, gasoline, or petroleum distillates.
SEC. 813. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.
(a) Enforcement.--This subtitle shall be enforced by the
Federal Trade Commission in the same manner, by the same
means, and with the same jurisdiction as though all
applicable terms of the Federal Trade Commission Act (15
U.S.C. 41 et seq.) were incorporated into and made a part of
this subtitle.
(b) Violation Is Treated as Unfair or Deceptive Act or
Practice.--The violation of any provision of this subtitle
shall be treated as an unfair or deceptive act or practice
proscribed under a rule issued under section 18(a)(1)(B) of
the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
SEC. 814. PENALTIES.
(a) Civil Penalty.--In addition to any penalty applicable
under the Federal Trade Commission Act (15 U.S.C. 41 et
seq.), any supplier that violates section 811 or 812 shall be
punishable by a civil penalty of not more than $1,000,000.
(b) Method.--The penalties provided by subsection (a) shall
be obtained in the same manner as civil penalties imposed
under section 5 of the Federal Trade Commission Act (15
U.S.C. 45).
(c) Multiple Offenses; Mitigating Factors.--In assessing
the penalty provided by subsection (a)--
(1) each day of a continuing violation shall be considered
a separate violation; and
(2) the court shall take into consideration, among other
factors--
(A) the seriousness of the violation; and
(B) the efforts of the person committing the violation to
remedy the harm caused by the violation in a timely manner.
SEC. 815. EFFECT ON OTHER LAWS.
(a) Other Authority of the Commission.--Nothing in this
subtitle limits or affects the authority of the Federal Trade
Commission to bring an enforcement action or take any other
measure under the Federal Trade Commission Act (15 U.S.C. 41
et seq.) or any other provision of law.
(b) Antitrust Law.--Nothing in this subtitle shall be
construed to modify, impair, or supersede the operation of
any of the antitrust laws. For purposes of this subsection,
the term ``antitrust laws'' shall have the meaning given it
in subsection (a) of the first section of the Clayton Act (15
U.S.C. 12), except that it includes section 5 of the Federal
Trade Commission Act (15 U.S.C. 45) to the extent that such
section 5 applies to unfair methods of competition.
(c) State Law.--Nothing in this subtitle preempts any State
law.
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
SEC. 901. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the Committee on
Energy and Commerce of the House of Representatives; and
(B) the Committee on Foreign Relations, the Committee on
Energy and Natural Resources, the Committee on Environment
and Public Works of the Senate, and the Committee on
Commerce, Science, and Transportation.
(2) Clean and efficient energy technology.--The term
``clean and efficient energy technology'' means an energy
supply or end-use technology that, compared to a similar
technology already in widespread commercial use in a
recipient country, will--
(A) reduce emissions of greenhouse gases; or
(B)(i) increase efficiency of energy production; or
(ii) decrease intensity of energy usage.
(3) Greenhouse gas.--The term ``greenhouse gas'' means--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) hydrofluorocarbons;
(E) perfluorocarbons; or
(F) sulfur hexafluoride.
Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
SEC. 911. UNITED STATES ASSISTANCE FOR DEVELOPING COUNTRIES.
(a) Assistance Authorized.--The Administrator of the United
States Agency for International Development shall support
policies and programs in developing countries that promote
clean and efficient energy technologies--
(1) to produce the necessary market conditions for the
private sector delivery of energy and environmental
management services;
(2) to create an environment that is conducive to accepting
clean and efficient energy technologies that support the
overall purpose of reducing greenhouse gas emissions,
including--
(A) improving policy, legal, and regulatory frameworks;
(B) increasing institutional abilities to provide energy
and environmental management services; and
(C) increasing public awareness and participation in the
decision-making of delivering energy and environmental
management services; and
(3) to promote the use of American-made clean and efficient
energy technologies, products, and energy and environmental
management services.
(b) Report.--The Administrator of the United States Agency
for International Development shall submit to the appropriate
congressional committees an annual report on the
implementation of this section for each of the fiscal years
2008 through 2012.
(c) Authorization of Appropriations.--To carry out this
section, there are authorized to be appropriated to the
Administrator of the United States Agency for International
Development $200,000,000 for each of the fiscal years 2008
through 2012.
SEC. 912. UNITED STATES EXPORTS AND OUTREACH PROGRAMS FOR
INDIA, CHINA, AND OTHER COUNTRIES.
(a) Assistance Authorized.--The Secretary of Commerce shall
direct the United States and Foreign Commercial Service to
expand or create a corps of the Foreign Commercial Service
officers to promote United States exports in clean and
efficient energy technologies and build the capacity of
government officials in India, China, and any other country
the Secretary of Commerce determines appropriate, to become
more familiar with the available technologies--
[[Page H14381]]
(1) by assigning or training Foreign Commercial Service
attaches, who have expertise in clean and efficient energy
technologies from the United States, to embark on business
development and outreach efforts to such countries; and
(2) by deploying the attaches described in paragraph (1) to
educate provincial, state, and local government officials in
such countries on the variety of United States-based
technologies in clean and efficient energy technologies for
the purposes of promoting United States exports and reducing
global greenhouse gas emissions.
(b) Report.--The Secretary of Commerce shall submit to the
appropriate congressional committees an annual report on the
implementation of this section for each of the fiscal years
2008 through 2012.
(c) Authorization of Appropriations.--To carry out this
section, there are authorized to be appropriated to the
Secretary of Commerce such sums as may be necessary for each
of the fiscal years 2008 through 2012.
SEC. 913. UNITED STATES TRADE MISSIONS TO ENCOURAGE PRIVATE
SECTOR TRADE AND INVESTMENT.
(a) Assistance Authorized.--The Secretary of Commerce shall
direct the International Trade Administration to expand or
create trade missions to and from the United States to
encourage private sector trade and investment in clean and
efficient energy technologies--
(1) by organizing and facilitating trade missions to
foreign countries and by matching United States private
sector companies with opportunities in foreign markets so
that clean and efficient energy technologies can help to
combat increases in global greenhouse gas emissions; and
(2) by creating reverse trade missions in which the
Department of Commerce facilitates the meeting of foreign
private and public sector organizations with private sector
companies in the United States for the purpose of showcasing
clean and efficient energy technologies in use or in
development that could be exported to other countries.
(b) Report.--The Secretary of Commerce shall submit to the
appropriate congressional committees an annual report on the
implementation of this section for each of the fiscal years
2008 through 2012.
(c) Authorization of Appropriations.--To carry out this
section, there are authorized to be appropriated to the
Secretary of Commerce such sums as may be necessary for each
of the fiscal years 2008 through 2012.
SEC. 914. ACTIONS BY OVERSEAS PRIVATE INVESTMENT CORPORATION.
(a) Sense of Congress.--It is the sense of Congress that
the Overseas Private Investment Corporation should promote
greater investment in clean and efficient energy technologies
by--
(1) proactively reaching out to United States companies
that are interested in investing in clean and efficient
energy technologies in countries that are significant
contributors to global greenhouse gas emissions;
(2) giving preferential treatment to the evaluation and
awarding of projects that involve the investment or
utilization of clean and efficient energy technologies; and
(3) providing greater flexibility in supporting projects
that involve the investment or utilization of clean and
efficient energy technologies, including financing,
insurance, and other assistance.
(b) Report.--The Overseas Private Investment Corporation
shall include in its annual report required under section
240A of the Foreign Assistance Act of 1961 (22 U.S.C.
2200a)--
(1) a description of the activities carried out to
implement this section; or
(2) if the Corporation did not carry out any activities to
implement this section, an explanation of the reasons
therefor.
SEC. 915. ACTIONS BY UNITED STATES TRADE AND DEVELOPMENT
AGENCY.
(a) Assistance Authorized.--The Director of the Trade and
Development Agency shall establish or support policies that--
(1) proactively seek opportunities to fund projects that
involve the utilization of clean and efficient energy
technologies, including in trade capacity building and
capital investment projects;
(2) where appropriate, advance the utilization of clean and
efficient energy technologies, particularly to countries that
have the potential for significant reduction in greenhouse
gas emissions; and
(3) recruit and retain individuals with appropriate
expertise or experience in clean, renewable, and efficient
energy technologies to identify and evaluate opportunities
for projects that involve clean and efficient energy
technologies and services.
(b) Report.--The President shall include in the annual
report on the activities of the Trade and Development Agency
required under section 661(d) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2421(d)) a description of the activities
carried out to implement this section.
SEC. 916. DEPLOYMENT OF INTERNATIONAL CLEAN AND EFFICIENT
ENERGY TECHNOLOGIES AND INVESTMENT IN GLOBAL
ENERGY MARKETS.
(a) Task Force.--
(1) Establishment.--Not later than 90 days after the date
of the enactment of this Act, the President shall establish a
Task Force on International Cooperation for Clean and
Efficient Energy Technologies (in this section referred to as
the ``Task Force'').
(2) Composition.--The Task Force shall be composed of
representatives, appointed by the head of the respective
Federal department or agency, of--
(A) the Council on Environmental Quality;
(B) the Department of Energy;
(C) the Department of Commerce;
(D) the Department of the Treasury;
(E) the Department of State;
(F) the Environmental Protection Agency;
(G) the United States Agency for International Development;
(H) the Export-Import Bank of the United States;
(I) the Overseas Private Investment Corporation:
(J) the Trade and Development Agency;
(K) the Small Business Administration;
(L) the Office of the United States Trade Representative;
and
(M) other Federal departments and agencies, as determined
by the President.
(3) Chairperson.--The President shall designate a
Chairperson or Co-Chairpersons of the Task Force.
(4) Duties.--The Task Force--
(A) shall develop and assist in the implementation of the
strategy required under subsection (c); and
(B)(i) shall analyze technology, policy, and market
opportunities for the development, demonstration, and
deployment of clean and efficient energy technologies on an
international basis; and
(ii) shall examine relevant trade, tax, finance,
international, and other policy issues to assess which
policies, in the United States and in developing countries,
would help open markets and improve the export of clean and
efficient energy technologies from the United States.
(5) Termination.--The Task Force, including any working
group established by the Task Force pursuant to subsection
(b), shall terminate 12 years after the date of the enactment
of this Act.
(b) Working Groups.--
(1) Establishment.--The Task Force--
(A) shall establish an Interagency Working Group on the
Export of Clean and Efficient Energy Technologies (in this
section referred to as the ``Interagency Working Group'');
and
(B) may establish other working groups as may be necessary
to carry out this section.
(2) Composition.--The Interagency Working Group shall be
composed of--
(A) the Secretary of Energy, the Secretary of Commerce, and
the Secretary of State, who shall serve as Co-Chairpersons of
the Interagency Working Group; and
(B) other members, as determined by the Chairperson or Co-
Chairpersons of the Task Force.
(3) Duties.--The Interagency Working Group shall coordinate
the resources and relevant programs of the Department of
Energy, the Department of Commerce, the Department of State,
and other relevant Federal departments and agencies to
support the export of clean and efficient energy technologies
developed or demonstrated in the United States to other
countries and the deployment of such clean and efficient
energy technologies in such other countries.
(4) Interagency center.--The Interagency Working Group--
(A) shall establish an Interagency Center on the Export of
Clean and Efficient Energy Technologies (in this section
referred to as the ``Interagency Center'') to assist the
Interagency Working Group in carrying out its duties required
under paragraph (3); and
(B) shall locate the Interagency Center at a site agreed
upon by the Co-Chairpersons of the Interagency Working Group,
with the approval of Chairperson or Co-Chairpersons of the
Task Force.
(c) Strategy.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, the Task Force shall develop and
submit to the President and the appropriate congressional
committees a strategy to--
(A) support the development and implementation of programs,
policies, and initiatives in developing countries to promote
the adoption and deployment of clean and efficient energy
technologies, with an emphasis on those developing countries
that are expected to experience the most significant growth
in energy production and use over the next 20 years;
(B) open and expand clean and efficient energy technology
markets and facilitate the export of clean and efficient
energy technologies to developing countries, in a manner
consistent with United States obligations as member of the
World Trade Organization;
(C) integrate into the foreign policy objectives of the
United States the promotion of--
(i) the deployment of clean and efficient energy
technologies and the reduction of greenhouse gas emissions in
developing countries; and
(ii) the export of clean and efficient energy technologies;
and
(D) develop financial mechanisms and instruments, including
securities that mitigate the political and foreign exchange
risks of uses that are consistent with the foreign policy
objectives of the United States by combining the private
sector market and government enhancements, that--
(i) are cost-effective; and
(ii) facilitate private capital investment in clean and
efficient energy technology projects in developing countries.
(2) Updates.--Not later than 3 years after the date of
submission of the strategy under paragraph (1), and every 3
years thereafter, the Task Force shall update the strategy in
[[Page H14382]]
accordance with the requirements of paragraph (1).
(d) Report.--
(1) In general.--Not later than 3 years after the date of
submission of the strategy under subsection (c)(1), and every
3 years thereafter, the President shall transmit to the
appropriate congressional committees a report on the
implementation of this section for the prior 3-year period.
(2) Matters to be included.--The report required under
paragraph (1) shall include the following:
(A) The update of the strategy required under subsection
(c)(2) and a description of the actions taken by the Task
Force to assist in the implementation of the strategy.
(B) A description of actions taken by the Task Force to
carry out the duties required under subsection (a)(4)(B).
(C) A description of assistance provided under this
section.
(D) The results of programs, projects, and activities
carried out under this section.
(E) A description of priorities for promoting the diffusion
and adoption of clean and efficient energy technologies and
strategies in developing countries, taking into account
economic and security interests of the United States and
opportunities for the export of technology of the United
States.
(F) Recommendations to the heads of appropriate Federal
departments and agencies on methods to streamline Federal
programs and policies to improve the role of such Federal
departments and agencies in the development, demonstration,
and deployment of clean and efficient energy technologies on
an international basis.
(G) Strategies to integrate representatives of the private
sector and other interested groups on the export and
deployment of clean and efficient energy technologies.
(H) A description of programs to disseminate information to
the private sector and the public on clean and efficient
energy technologies and opportunities to transfer such clean
and efficient energy technologies.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2008 through 2020.
SEC. 917. UNITED STATES-ISRAEL ENERGY COOPERATION.
(a) Findings.--Congress finds that--
(1) it is in the highest national security interests of the
United States to develop renewable energy sources;
(2) the State of Israel is a steadfast ally of the United
States;
(3) the special relationship between the United States and
Israel is manifested in a variety of cooperative scientific
research and development programs, such as--
(A) the United States-Israel Binational Science Foundation;
and
(B) the United States-Israel Binational Industrial Research
and Development Foundation;
(4) those programs have made possible many scientific,
technological, and commercial breakthroughs in the fields of
life sciences, medicine, bioengineering, agriculture,
biotechnology, communications, and others;
(5) on February 1, 1996, the Secretary of Energy (referred
to in this section as the ``Secretary'') and the Israeli
Minister of Energy and Infrastructure signed an agreement to
establish a framework for collaboration between the United
States and Israel in energy research and development
activities;
(6) Israeli scientists and engineers are at the forefront
of research and development in the field of renewable energy
sources; and
(7) enhanced cooperation between the United States and
Israel for the purpose of research and development of
renewable energy sources would be in the national interests
of both countries.
(b) Grant Program.--
(1) Establishment.--In implementing the agreement entitled
the ``Agreement between the Department of Energy of the
United States of America and the Ministry of Energy and
Infrastructure of Israel Concerning Energy Cooperation'',
dated February 1, 1996, the Secretary shall establish a grant
program in accordance with the requirements of sections 988
and 989 of the Energy Policy Act of 2005 (42 U.S.C. 16352,
16353) to support research, development, and
commercialization of renewable energy or energy efficiency.
(2) Types of energy.--In carrying out paragraph (1), the
Secretary may make grants to promote--
(A) solar energy;
(B) biomass energy;
(C) energy efficiency;
(D) wind energy;
(E) geothermal energy;
(F) wave and tidal energy; and
(G) advanced battery technology.
(3) Eligible applicants.--An applicant shall be eligible to
receive a grant under this subsection if the project of the
applicant--
(A) addresses a requirement in the area of improved energy
efficiency or renewable energy sources, as determined by the
Secretary; and
(B) is a joint venture between--
(i)(I) a for-profit business entity, academic institution,
National Laboratory (as defined in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801)), or nonprofit entity in
the United States; and
(II) a for-profit business entity, academic institution, or
nonprofit entity in Israel; or
(ii)(I) the Federal Government; and
(II) the Government of Israel.
(4) Applications.--To be eligible to receive a grant under
this subsection, an applicant shall submit to the Secretary
an application for the grant in accordance with procedures
established by the Secretary, in consultation with the
advisory board established under paragraph (5).
(5) Advisory board.--
(A) Establishment.--The Secretary shall establish an
advisory board--
(i) to monitor the method by which grants are awarded under
this subsection; and
(ii) to provide to the Secretary periodic performance
reviews of actions taken to carry out this subsection.
(B) Composition.--The advisory board established under
subparagraph (A) shall be composed of 3 members, to be
appointed by the Secretary, of whom--
(i) 1 shall be a representative of the Federal Government;
(ii) 1 shall be selected from a list of nominees provided
by the United States-Israel Binational Science Foundation;
and
(iii) 1 shall be selected from a list of nominees provided
by the United States-Israel Binational Industrial Research
and Development Foundation.
(6) Contributed funds.--Notwithstanding section 3302 of
title 31, United States Code, the Secretary may accept,
retain, and use funds contributed by any person, government
entity, or organization for purposes of carrying out this
subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(7) Report.--Not later than 180 days after the date of
completion of a project for which a grant is provided under
this subsection, the grant recipient shall submit to the
Secretary a report that contains--
(A) a description of the method by which the recipient used
the grant funds; and
(B) an evaluation of the level of success of each project
funded by the grant.
(8) Classification.--Grants shall be awarded under this
subsection only for projects that are considered to be
unclassified by both the United States and Israel.
(c) Termination.--The grant program and the advisory
committee established under this section terminate on the
date that is 7 years after the date of enactment of this Act.
(d) Authorization of Appropriations.--The Secretary shall
use amounts authorized to be appropriated under section 931
of the Energy Policy Act of 2005 (42 U.S.C. 16231) to carry
out this section.
Subtitle B--International Clean Energy Foundation
SEC. 921. DEFINITIONS.
In this subtitle:
(1) Board.--The term ``Board'' means the Board of Directors
of the Foundation established pursuant to section 922(c).
(2) Chief executive officer.--The term ``Chief Executive
Officer'' means the chief executive officer of the Foundation
appointed pursuant to section 922(b).
(3) Foundation.--The term ``Foundation'' means the
International Clean Energy Foundation established by section
922(a).
SEC. 922. ESTABLISHMENT AND MANAGEMENT OF FOUNDATION.
(a) Establishment.--
(1) In general.--There is established in the executive
branch a foundation to be known as the ``International Clean
Energy Foundation'' that shall be responsible for carrying
out the provisions of this subtitle. The Foundation shall be
a government corporation, as defined in section 103 of title
5, United States Code.
(2) Board of directors.--The Foundation shall be governed
by a Board of Directors in accordance with subsection (c).
(3) Intent of congress.--It is the intent of Congress, in
establishing the structure of the Foundation set forth in
this subsection, to create an entity that serves the long-
term foreign policy and energy security goals of reducing
global greenhouse gas emissions.
(b) Chief Executive Officer.--
(1) In general.--There shall be in the Foundation a Chief
Executive Officer who shall be responsible for the management
of the Foundation.
(2) Appointment.--The Chief Executive Officer shall be
appointed by the Board, with the advice and consent of the
Senate, and shall be a recognized leader in clean and
efficient energy technologies and climate change and shall
have experience in energy security, business, or foreign
policy, chosen on the basis of a rigorous search.
(3) Relationship to board.--The Chief Executive Officer
shall report to, and be under the direct authority of, the
Board.
(4) Compensation and rank.--
(A) In general.--The Chief Executive Officer shall be
compensated at the rate provided for level III of the
Executive Schedule under section 5314 of title 5, United
States Code.
(B) Amendment.--Section 5314 of title 5, United States
Code, is amended by adding at the end the following:
``Chief Executive Officer, International Clean Energy
Foundation.''.
(C) Authorities and duties.--The Chief Executive Officer
shall be responsible for the management of the Foundation and
shall exercise the powers and discharge the duties of the
Foundation.
(D) Authority to appoint officers.--In consultation and
with approval of the Board, the Chief Executive Officer shall
appoint all officers of the Foundation.
(c) Board of Directors.--
(1) Establishment.--There shall be in the Foundation a
Board of Directors.
[[Page H14383]]
(2) Duties.--The Board shall perform the functions
specified to be carried out by the Board in this subtitle and
may prescribe, amend, and repeal bylaws, rules, regulations,
and procedures governing the manner in which the business of
the Foundation may be conducted and in which the powers
granted to it by law may be exercised.
(3) Membership.--The Board shall consist of--
(A) the Secretary of State (or the Secretary's designee),
the Secretary of Energy (or the Secretary's designee), and
the Administrator of the United States Agency for
International Development (or the Administrator's designee);
and
(B) four other individuals with relevant experience in
matters relating to energy security (such as individuals who
represent institutions of energy policy, business
organizations, foreign policy organizations, or other
relevant organizations) who shall be appointed by the
President, by and with the advice and consent of the Senate,
of whom--
(i) one individual shall be appointed from among a list of
individuals submitted by the majority leader of the House of
Representatives;
(ii) one individual shall be appointed from among a list of
individuals submitted by the minority leader of the House of
Representatives;
(iii) one individual shall be appointed from among a list
of individuals submitted by the majority leader of the
Senate; and
(iv) one individual shall be appointed from among a list of
individuals submitted by the minority leader of the Senate.
(4) Chief executive officer.--The Chief Executive Officer
of the Foundation shall serve as a nonvoting, ex officio
member of the Board.
(5) Terms.--
(A) Officers of the federal government.--Each member of the
Board described in paragraph (3)(A) shall serve for a term
that is concurrent with the term of service of the
individual's position as an officer within the other Federal
department or agency.
(B) Other members.--Each member of the Board described in
paragraph (3)(B) shall be appointed for a term of 3 years and
may be reappointed for a term of an additional 3 years.
(C) Vacancies.--A vacancy in the Board shall be filled in
the manner in which the original appointment was made.
(D) Acting members.--A vacancy in the Board may be filled
with an appointment of an acting member by the Chairperson of
the Board for up to 1 year while a nominee is named and
awaits confirmation in accordance with paragraph (3)(B).
(6) Chairperson.--There shall be a Chairperson of the
Board. The Secretary of State (or the Secretary's designee)
shall serve as the Chairperson.
(7) Quorum.--A majority of the members of the Board
described in paragraph (3) shall constitute a quorum, which,
except with respect to a meeting of the Board during the 135-
day period beginning on the date of the enactment of this
Act, shall include at least 1 member of the Board described
in paragraph (3)(B).
(8) Meetings.--The Board shall meet at the call of the
Chairperson, who shall call a meeting no less than once a
year.
(9) Compensation.--
(A) Officers of the federal government.--
(i) In general.--A member of the Board described in
paragraph (3)(A) may not receive additional pay, allowances,
or benefits by reason of the member's service on the Board.
(ii) Travel expenses.--Each such member of the Board shall
receive travel expenses, including per diem in lieu of
subsistence, in accordance with applicable provisions under
subchapter I of chapter 57 of title 5, United States Code.
(B) Other members.--
(i) In general.--Except as provided in clause (ii), a
member of the Board described in paragraph (3)(B)--
(I) shall be paid compensation out of funds made available
for the purposes of this subtitle at the daily equivalent of
the highest rate payable under section 5332 of title 5,
United States Code, for each day (including travel time)
during which the member is engaged in the actual performance
of duties as a member of the Board; and
(II) while away from the member's home or regular place of
business on necessary travel in the actual performance of
duties as a member of the Board, shall be paid per diem,
travel, and transportation expenses in the same manner as is
provided under subchapter I of chapter 57 of title 5, United
States Code.
(ii) Limitation.--A member of the Board may not be paid
compensation under clause (i)(II) for more than 90 days in
any calendar year.
SEC. 923. DUTIES OF FOUNDATION.
The Foundation shall--
(1) use the funds authorized by this subtitle to make
grants to promote projects outside of the United States that
serve as models of how to significantly reduce the emissions
of global greenhouse gases through clean and efficient energy
technologies, processes, and services;
(2) seek contributions from foreign governments, especially
those rich in energy resources such as member countries of
the Organization of the Petroleum Exporting Countries, and
private organizations to supplement funds made available
under this subtitle;
(3) harness global expertise through collaborative
partnerships with foreign governments and domestic and
foreign private actors, including nongovernmental
organizations and private sector companies, by leveraging
public and private capital, technology, expertise, and
services towards innovative models that can be instituted to
reduce global greenhouse gas emissions;
(4) create a repository of information on best practices
and lessons learned on the utilization and implementation of
clean and efficient energy technologies and processes to be
used for future initiatives to tackle the climate change
crisis;
(5) be committed to minimizing administrative costs and to
maximizing the availability of funds for grants under this
subtitle; and
(6) promote the use of American-made clean and efficient
energy technologies, processes, and services by giving
preference to entities incorporated in the United States and
whose technology will be substantially manufactured in the
United States.
SEC. 924. ANNUAL REPORT.
(a) Report Required.--Not later than March 31, 2008, and
each March 31 thereafter, the Foundation shall submit to the
appropriate congressional committees a report on the
implementation of this subtitle during the prior fiscal year.
(b) Contents.--The report required by subsection (a) shall
include--
(1) the total financial resources available to the
Foundation during the year, including appropriated funds, the
value and source of any gifts or donations accepted pursuant
to section 925(a)(6), and any other resources;
(2) a description of the Board's policy priorities for the
year and the basis upon which competitive grant proposals
were solicited and awarded to nongovernmental institutions
and other organizations;
(3) a list of grants made to nongovernmental institutions
and other organizations that includes the identity of the
institutional recipient, the dollar amount, and the results
of the program; and
(4) the total administrative and operating expenses of the
Foundation for the year, as well as specific information on--
(A) the number of Foundation employees and the cost of
compensation for Board members, Foundation employees, and
personal service contractors;
(B) costs associated with securing the use of real property
for carrying out the functions of the Foundation;
(C) total travel expenses incurred by Board members and
Foundation employees in connection with Foundation
activities; and
(D) total representational expenses.
SEC. 925. POWERS OF THE FOUNDATION; RELATED PROVISIONS.
(a) Powers.--The Foundation--
(1) shall have perpetual succession unless dissolved by a
law enacted after the date of the enactment of this Act;
(2) may adopt, alter, and use a seal, which shall be
judicially noticed;
(3) may make and perform such contracts, grants, and other
agreements with any person or government however designated
and wherever situated, as may be necessary for carrying out
the functions of the Foundation;
(4) may determine and prescribe the manner in which its
obligations shall be incurred and its expenses allowed and
paid, including expenses for representation;
(5) may lease, purchase, or otherwise acquire, improve, and
use such real property wherever situated, as may be necessary
for carrying out the functions of the Foundation;
(6) may accept money, funds, services, or property (real,
personal, or mixed), tangible or intangible, made available
by gift, bequest grant, or otherwise for the purpose of
carrying out the provisions of this title from domestic or
foreign private individuals, charities, nongovernmental
organizations, corporations, or governments;
(7) may use the United States mails in the same manner and
on the same conditions as the executive departments;
(8) may contract with individuals for personal services,
who shall not be considered Federal employees for any
provision of law administered by the Office of Personnel
Management;
(9) may hire or obtain passenger motor vehicles; and
(10) shall have such other powers as may be necessary and
incident to carrying out this subtitle.
(b) Principal Office.--The Foundation shall maintain its
principal office in the metropolitan area of Washington,
District of Columbia.
(c) Applicability of Government Corporation Control Act.--
(1) In general.--The Foundation shall be subject to chapter
91 of subtitle VI of title 31, United States Code, except
that the Foundation shall not be authorized to issue
obligations or offer obligations to the public.
(2) Conforming amendment.--Section 9101(3) of title 31,
United States Code, is amended by adding at the end the
following:
``(R) the International Clean Energy Foundation.''.
(d) Inspector General.--
(1) In general.--The Inspector General of the Department of
State shall serve as Inspector General of the Foundation,
and, in acting in such capacity, may conduct reviews,
investigations, and inspections of all aspects of the
operations and activities of the Foundation.
[[Page H14384]]
(2) Authority of the board.--In carrying out the
responsibilities under this subsection, the Inspector General
shall report to and be under the general supervision of the
Board.
(3) Reimbursement and authorization of services.--
(A) Reimbursement.--The Foundation shall reimburse the
Department of State for all expenses incurred by the
Inspector General in connection with the Inspector General's
responsibilities under this subsection.
(B) Authorization for services.--Of the amount authorized
to be appropriated under section 927(a) for a fiscal year, up
to $500,000 is authorized to be made available to the
Inspector General of the Department of State to conduct
reviews, investigations, and inspections of operations and
activities of the Foundation.
SEC. 926. GENERAL PERSONNEL AUTHORITIES.
(a) Detail of Personnel.--Upon request of the Chief
Executive Officer, the head of an agency may detail any
employee of such agency to the Foundation on a reimbursable
basis. Any employee so detailed remains, for the purpose of
preserving such employee's allowances, privileges, rights,
seniority, and other benefits, an employee of the agency from
which detailed.
(b) Reemployment Rights.--
(1) In general.--An employee of an agency who is serving
under a career or career conditional appointment (or the
equivalent), and who, with the consent of the head of such
agency, transfers to the Foundation, is entitled to be
reemployed in such employee's former position or a position
of like seniority, status, and pay in such agency, if such
employee--
(A) is separated from the Foundation for any reason, other
than misconduct, neglect of duty, or malfeasance; and
(B) applies for reemployment not later than 90 days after
the date of separation from the Foundation.
(2) Specific rights.--An employee who satisfies paragraph
(1) is entitled to be reemployed (in accordance with such
paragraph) within 30 days after applying for reemployment
and, on reemployment, is entitled to at least the rate of
basic pay to which such employee would have been entitled had
such employee never transferred.
(c) Hiring Authority.--Of persons employed by the
Foundation, no more than 30 persons may be appointed,
compensated, or removed without regard to the civil service
laws and regulations.
(d) Basic Pay.--The Chief Executive Officer may fix the
rate of basic pay of employees of the Foundation without
regard to the provisions of chapter 51 of title 5, United
States Code (relating to the classification of positions),
subchapter III of chapter 53 of such title (relating to
General Schedule pay rates), except that no employee of the
Foundation may receive a rate of basic pay that exceeds the
rate for level IV of the Executive Schedule under section
5315 of such title.
(e) Definitions.--In this section--
(1) the term ``agency'' means an executive agency, as
defined by section 105 of title 5, United States Code; and
(2) the term ``detail'' means the assignment or loan of an
employee, without a change of position, from the agency by
which such employee is employed to the Foundation.
SEC. 927. AUTHORIZATION OF APPROPRIATIONS.
(a) Authorization of Appropriations.--To carry out this
subtitle, there are authorized to be appropriated $20,000,000
for each of the fiscal years 2009 through 2013.
(b) Allocation of Funds.--
(1) In general.--The Foundation may allocate or transfer to
any agency of the United States Government any of the funds
available for carrying out this subtitle. Such funds shall be
available for obligation and expenditure for the purposes for
which the funds were authorized, in accordance with authority
granted in this subtitle or under authority governing the
activities of the United States Government agency to which
such funds are allocated or transferred.
(2) Notification.--The Foundation shall notify the
appropriate congressional committees not less than 15 days
prior to an allocation or transfer of funds pursuant to
paragraph (1).
Subtitle C--Miscellaneous Provisions
SEC. 931. ENERGY DIPLOMACY AND SECURITY WITHIN THE DEPARTMENT
OF STATE.
(a) State Department Coordinator for International Energy
Affairs.--
(1) In general.--The Secretary of State should ensure that
energy security is integrated into the core mission of the
Department of State.
(2) Coordinator for international energy affairs.--There is
established within the Office of the Secretary of State a
Coordinator for International Energy Affairs, who shall be
responsible for--
(A) representing the Secretary of State in interagency
efforts to develop the international energy policy of the
United States;
(B) ensuring that analyses of the national security
implications of global energy and environmental developments
are reflected in the decision making process within the
Department of State;
(C) incorporating energy security priorities into the
activities of the Department of State;
(D) coordinating energy activities of the Department of
State with relevant Federal agencies; and
(E) coordinating energy security and other relevant
functions within the Department of State currently undertaken
by offices within--
(i) the Bureau of Economic, Energy and Business Affairs;
(ii) the Bureau of Oceans and International Environmental
and Scientific Affairs; and
(iii) other offices within the Department of State.
(3) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this subsection.
(b) Energy Experts in Key Embassies.--Not later than 180
days after the date of the enactment of this Act, the
Secretary of State shall submit a report to the Committee on
Foreign Relations of the Senate and the Committee on Foreign
Affairs of the House of Representatives that includes--
(1) a description of the Department of State personnel who
are dedicated to energy matters and are stationed at
embassies and consulates in countries that are major energy
producers or consumers;
(2) an analysis of the need for Federal energy specialist
personnel in United States embassies and other United States
diplomatic missions; and
(3) recommendations for increasing energy expertise within
United States embassies among foreign service officers and
options for assigning to such embassies energy attaches from
the National Laboratories or other agencies within the
Department of Energy.
(c) Energy Advisors.--The Secretary of Energy may make
appropriate arrangements with the Secretary of State to
assign personnel from the Department of Energy or the
National Laboratories of the Department of Energy to serve as
dedicated advisors on energy matters in embassies of the
United States or other United States diplomatic missions.
(d) Report.--Not later than 180 days after the date of the
enactment of this Act, and every 2 years thereafter for the
following 20 years, the Secretary of State shall submit a
report to the Committee on Foreign Relations of the Senate
and the Committee on Foreign Affairs of the House of
Representatives that describes--
(1) the energy-related activities being conducted by the
Department of State, including activities within--
(A) the Bureau of Economic, Energy and Business Affairs;
(B) the Bureau of Oceans and Environmental and Scientific
Affairs; and
(C) other offices within the Department of State;
(2) the amount of funds spent on each activity within each
office described in paragraph (1); and
(3) the number and qualification of personnel in each
embassy (or relevant foreign posting) of the United States
whose work is dedicated exclusively to energy matters.
SEC. 932. NATIONAL SECURITY COUNCIL REORGANIZATION.
Section 101(a) of the National Security Act of 1947 (50
U.S.C. 402(a)) is amended--
(1) by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively; and
(2) by inserting after paragraph (4) the following:
``(5) the Secretary of Energy;''.
SEC. 933. ANNUAL NATIONAL ENERGY SECURITY STRATEGY REPORT.
(a) Reports.--
(1) In general.--Subject to paragraph (2), on the date on
which the President submits to Congress the budget for the
following fiscal year under section 1105 of title 31, United
States Code, the President shall submit to Congress a
comprehensive report on the national energy security of the
United States.
(2) New presidents.--In addition to the reports required
under paragraph (1), the President shall submit a
comprehensive report on the national energy security of the
United States by not later than 150 days after the date on
which the President assumes the office of President after a
presidential election.
(b) Contents.--Each report under this section shall
describe the national energy security strategy of the United
States, including a comprehensive description of--
(1) the worldwide interests, goals, and objectives of the
United States that are vital to the national energy security
of the United States;
(2) the foreign policy, worldwide commitments, and national
defense capabilities of the United States necessary--
(A) to deter political manipulation of world energy
resources; and
(B) to implement the national energy security strategy of
the United States;
(3) the proposed short-term and long-term uses of the
political, economic, military, and other authorities of the
United States--
(A) to protect or promote energy security; and
(B) to achieve the goals and objectives described in
paragraph (1);
(4) the adequacy of the capabilities of the United States
to protect the national energy security of the United States,
including an evaluation of the balance among the capabilities
of all elements of the national authority of the United
States to support the implementation of the national energy
security strategy; and
(5) such other information as the President determines to
be necessary to inform Congress on matters relating to the
national energy security of the United States.
[[Page H14385]]
(c) Classified and Unclassified Form.--Each national energy
security strategy report shall be submitted to Congress in--
(1) a classified form; and
(2) an unclassified form.
SEC. 934. CONVENTION ON SUPPLEMENTARY COMPENSATION FOR
NUCLEAR DAMAGE CONTINGENT COST ALLOCATION.
(a) Findings and Purpose.--
(1) Findings.--Congress finds that--
(A) section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210) (commonly known as the ``Price-Anderson Act'')--
(i) provides a predictable legal framework necessary for
nuclear projects; and
(ii) ensures prompt and equitable compensation in the event
of a nuclear incident in the United States;
(B) the Price-Anderson Act, in effect, provides operators
of nuclear powerplants with insurance for damage arising out
of a nuclear incident and funds the insurance primarily
through the assessment of a retrospective premium from each
operator after the occurrence of a nuclear incident;
(C) the Convention on Supplementary Compensation for
Nuclear Damage, done at Vienna on September 12, 1997, will
establish a global system--
(i) to provide a predictable legal framework necessary for
nuclear energy projects; and
(ii) to ensure prompt and equitable compensation in the
event of a nuclear incident;
(D) the Convention benefits United States nuclear suppliers
that face potentially unlimited liability for nuclear
incidents that are not covered by the Price-Anderson Act by
replacing a potentially open-ended liability with a
predictable liability regime that, in effect, provides
nuclear suppliers with insurance for damage arising out of
such an incident;
(E) the Convention also benefits United States nuclear
facility operators that may be publicly liable for a Price-
Anderson incident by providing an additional early source of
funds to compensate damage arising out of the Price-Anderson
incident;
(F) the combined operation of the Convention, the Price-
Anderson Act, and this section will augment the quantity of
assured funds available for victims in a wider variety of
nuclear incidents while reducing the potential liability of
United States suppliers without increasing potential costs to
United States operators;
(G) the cost of those benefits is the obligation of the
United States to contribute to the supplementary compensation
fund established by the Convention;
(H) any such contribution should be funded in a manner that
does not--
(i) upset settled expectations based on the liability
regime established under the Price-Anderson Act; or
(ii) shift to Federal taxpayers liability risks for nuclear
incidents at foreign installations;
(I) with respect to a Price-Anderson incident, funds
already available under the Price-Anderson Act should be
used; and
(J) with respect to a nuclear incident outside the United
States not covered by the Price-Anderson Act, a retrospective
premium should be prorated among nuclear suppliers relieved
from potential liability for which insurance is not
available.
(2) Purpose.--The purpose of this section is to allocate
the contingent costs associated with participation by the
United States in the international nuclear liability
compensation system established by the Convention on
Supplementary Compensation for Nuclear Damage, done at Vienna
on September 12, 1997--
(A) with respect to a Price-Anderson incident, by using
funds made available under section 170 of the Atomic Energy
Act of 1954 (42 U.S.C. 2210) to cover the contingent costs in
a manner that neither increases the burdens nor decreases the
benefits under section 170 of that Act; and
(B) with respect to a covered incident outside the United
States that is not a Price-Anderson incident, by allocating
the contingent costs equitably, on the basis of risk, among
the class of nuclear suppliers relieved by the Convention
from the risk of potential liability resulting from any
covered incident outside the United States.
(b) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Nuclear
Regulatory Commission.
(2) Contingent cost.--The term ``contingent cost'' means
the cost to the United States in the event of a covered
incident the amount of which is equal to the amount of funds
the United States is obligated to make available under
paragraph 1(b) of Article III of the Convention.
(3) Convention.--The term ``Convention'' means the
Convention on Supplementary Compensation for Nuclear Damage,
done at Vienna on September 12, 1997.
(4) Covered incident.--The term ``covered incident'' means
a nuclear incident the occurrence of which results in a
request for funds pursuant to Article VII of the Convention.
(5) Covered installation.--The term ``covered
installation'' means a nuclear installation at which the
occurrence of a nuclear incident could result in a request
for funds under Article VII of the Convention.
(6) Covered person.--
(A) In general.--The term ``covered person'' means--
(i) a United States person; and
(ii) an individual or entity (including an agency or
instrumentality of a foreign country) that--
(I) is located in the United States; or
(II) carries out an activity in the United States.
(B) Exclusions.--The term ``covered person'' does not
include--
(i) the United States; or
(ii) any agency or instrumentality of the United States.
(7) Nuclear supplier.--The term ``nuclear supplier'' means
a covered person (or a successor in interest of a covered
person) that--
(A) supplies facilities, equipment, fuel, services, or
technology pertaining to the design, construction, operation,
or decommissioning of a covered installation; or
(B) transports nuclear materials that could result in a
covered incident.
(8) Price-anderson incident.--The term ``Price-Anderson
incident'' means a covered incident for which section 170 of
the Atomic Energy Act of 1954 (42 U.S.C. 2210) would make
funds available to compensate for public liability (as
defined in section 11 of that Act (42 U.S.C. 2014)).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(10) United states.--
(A) In general.--The term ``United States'' has the meaning
given the term in section 11 of the Atomic Energy Act of 1954
(42 U.S.C. 2014).
(B) Inclusions.--The term ``United States'' includes--
(i) the Commonwealth of Puerto Rico;
(ii) any other territory or possession of the United
States;
(iii) the Canal Zone; and
(iv) the waters of the United States territorial sea under
Presidential Proclamation Number 5928, dated December 27,
1988 (43 U.S.C. 1331 note).
(11) United states person.--The term ``United States
person'' means--
(A) any individual who is a resident, national, or citizen
of the United States (other than an individual residing
outside of the United States and employed by a person who is
not a United States person); and
(B) any corporation, partnership, association, joint stock
company, business trust, unincorporated organization, or sole
proprietorship that is organized under the laws of the United
States.
(c) Use of Price-Anderson Funds.--
(1) In general.--Funds made available under section 170 of
the Atomic Energy Act of 1954 (42 U.S.C. 2210) shall be used
to cover the contingent cost resulting from any Price-
Anderson incident.
(2) Effect.--The use of funds pursuant to paragraph (1)
shall not reduce the limitation on public liability
established under section 170 e. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(e)).
(d) Effect on Amount of Public Liability.--
(1) In general.--Funds made available to the United States
under Article VII of the Convention with respect to a Price-
Anderson incident shall be used to satisfy public liability
resulting from the Price-Anderson incident.
(2) Amount.--The amount of public liability allowable under
section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210)
relating to a Price-Anderson incident under paragraph (1)
shall be increased by an amount equal to the difference
between--
(A) the amount of funds made available for the Price-
Anderson incident under Article VII of the Convention; and
(B) the amount of funds used under subsection (c) to cover
the contingent cost resulting from the Price-Anderson
incident.
(e) Retrospective Risk Pooling Program.--
(1) In general.--Except as provided under paragraph (2),
each nuclear supplier shall participate in a retrospective
risk pooling program in accordance with this section to cover
the contingent cost resulting from a covered incident outside
the United States that is not a Price-Anderson incident.
(2) Deferred payment.--
(A) In general.--The obligation of a nuclear supplier to
participate in the retrospective risk pooling program shall
be deferred until the United States is called on to provide
funds pursuant to Article VII of the Convention with respect
to a covered incident that is not a Price-Anderson incident.
(B) Amount of deferred payment.--The amount of a deferred
payment of a nuclear supplier under subparagraph (A) shall be
based on the risk-informed assessment formula determined
under subparagraph (C).
(C) Risk-informed assessment formula.--
(i) In general.--Not later than 3 years after the date of
the enactment of this Act, and every 5 years thereafter, the
Secretary shall, by regulation, determine the risk-informed
assessment formula for the allocation among nuclear suppliers
of the contingent cost resulting from a covered incident that
is not a Price-Anderson incident, taking into account risk
factors such as--
(I) the nature and intended purpose of the goods and
services supplied by each nuclear supplier to each covered
installation outside the United States;
(II) the quantity of the goods and services supplied by
each nuclear supplier to each covered installation outside
the United States;
(III) the hazards associated with the supplied goods and
services if the goods and services fail to achieve the
intended purposes;
[[Page H14386]]
(IV) the hazards associated with the covered installation
outside the United States to which the goods and services are
supplied;
(V) the legal, regulatory, and financial infrastructure
associated with the covered installation outside the United
States to which the goods and services are supplied; and
(VI) the hazards associated with particular forms of
transportation.
(ii) Factors for consideration.--In determining the
formula, the Secretary may--
(I) exclude--
(aa) goods and services with negligible risk;
(bb) classes of goods and services not intended
specifically for use in a nuclear installation;
(cc) a nuclear supplier with a de minimis share of the
contingent cost; and
(dd) a nuclear supplier no longer in existence for which
there is no identifiable successor; and
(II) establish the period on which the risk assessment is
based.
(iii) Application.--In applying the formula, the Secretary
shall not consider any covered installation or transportation
for which funds would be available under section 170 of the
Atomic Energy Act of 1954 (42 U.S.C. 2210).
(iv) Report.--Not later than 5 years after the date of the
enactment of this Act, and every 5 years thereafter, the
Secretary shall submit to the Committee on Environment and
Public Works of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report on whether
there is a need for continuation or amendment of this
section, taking into account the effects of the
implementation of the Convention on the United States nuclear
industry and suppliers.
(f) Reporting.--
(1) Collection of information.--
(A) In general.--The Secretary may collect information
necessary for developing and implementing the formula for
calculating the deferred payment of a nuclear supplier under
subsection (e)(2).
(B) Provision of information.--Each nuclear supplier and
other appropriate persons shall make available to the
Secretary such information, reports, records, documents, and
other data as the Secretary determines, by regulation, to be
necessary or appropriate to develop and implement the formula
under subsection (e)(2)(C).
(2) Private insurance.--The Secretary shall make available
to nuclear suppliers, and insurers of nuclear suppliers,
information to support the voluntary establishment and
maintenance of private insurance against any risk for which
nuclear suppliers may be required to pay deferred payments
under this section.
(g) Effect on Liability.--Nothing in any other law
(including regulations) limits liability for a covered
incident to an amount equal to less than the amount
prescribed in paragraph 1(a) of Article IV of the Convention,
unless the law--
(1) specifically refers to this section; and
(2) explicitly repeals, alters, amends, modifies, impairs,
displaces, or supersedes the effect of this subsection.
(h) Payments to and by the United States.--
(1) Action by nuclear suppliers.--
(A) Notification.--In the case of a request for funds under
Article VII of the Convention resulting from a covered
incident that is not a Price-Anderson incident, the Secretary
shall notify each nuclear supplier of the amount of the
deferred payment required to be made by the nuclear supplier.
(B) Payments.--
(i) In general.--Except as provided under clause (ii), not
later than 60 days after receipt of a notification under
subparagraph (A), a nuclear supplier shall pay to the general
fund of the Treasury the deferred payment of the nuclear
supplier required under subparagraph (A).
(ii) Annual payments.--A nuclear supplier may elect to
prorate payment of the deferred payment required under
subparagraph (A) in 5 equal annual payments (including
interest on the unpaid balance at the prime rate prevailing
at the time the first payment is due).
(C) Vouchers.--A nuclear supplier shall submit payment
certification vouchers to the Secretary of the Treasury in
accordance with section 3325 of title 31, United States Code.
(2) Use of funds.--
(A) In general.--Amounts paid into the Treasury under
paragraph (1) shall be available to the Secretary of the
Treasury, without further appropriation and without fiscal
year limitation, for the purpose of making the contributions
of public funds required to be made by the United States
under the Convention.
(B) Action by secretary of treasury.--The Secretary of the
Treasury shall pay the contribution required under the
Convention to the court of competent jurisdiction under
Article XIII of the Convention with respect to the applicable
covered incident.
(3) Failure to pay.--If a nuclear supplier fails to make a
payment required under this subsection, the Secretary may
take appropriate action to recover from the nuclear
supplier--
(A) the amount of the payment due from the nuclear
supplier;
(B) any applicable interest on the payment; and
(C) a penalty of not more than twice the amount of the
deferred payment due from the nuclear supplier.
(i) Limitation on Judicial Review; Cause of Action.--
(1) Limitation on judicial review.--
(A) In general.--In any civil action arising under the
Convention over which Article XIII of the Convention grants
jurisdiction to the courts of the United States, any appeal
or review by writ of mandamus or otherwise with respect to a
nuclear incident that is not a Price-Anderson incident shall
be in accordance with chapter 83 of title 28, United States
Code, except that the appeal or review shall occur in the
United States Court of Appeals for the District of Columbia
Circuit.
(B) Supreme court jurisdiction.--Nothing in this paragraph
affects the jurisdiction of the Supreme Court of the United
States under chapter 81 of title 28, United States Code.
(2) Cause of action.--
(A) In general.--Subject to subparagraph (B), in any civil
action arising under the Convention over which Article XIII
of the Convention grants jurisdiction to the courts of the
United States, in addition to any other cause of action that
may exist, an individual or entity shall have a cause of
action against the operator to recover for nuclear damage
suffered by the individual or entity.
(B) Requirement.--Subparagraph (A) shall apply only if the
individual or entity seeks a remedy for nuclear damage (as
defined in Article I of the Convention) that was caused by a
nuclear incident (as defined in Article I of the Convention)
that is not a Price-Anderson incident.
(C) Savings provision.--Nothing in this paragraph may be
construed to limit, modify, extinguish, or otherwise affect
any cause of action that would have existed in the absence of
enactment of this paragraph.
(j) Right of Recourse.--This section does not provide to an
operator of a covered installation any right of recourse
under the Convention.
(k) Protection of Sensitive United States Information.--
Nothing in the Convention or this section requires the
disclosure of--
(1) any data that, at any time, was Restricted Data (as
defined in section 11 of the Atomic Energy Act of 1954 (42
U.S.C. 2014));
(2) information relating to intelligence sources or methods
protected by section 102A(i) of the National Security Act of
1947 (50 U.S.C. 403-1(i)); or
(3) national security information classified under
Executive Order 12958 (50 U.S.C. 435 note; relating to
classified national security information) (or a successor
Executive Order or regulation).
(l) Regulations.--
(1) In general.--The Secretary or the Commission, as
appropriate, may prescribe regulations to carry out section
170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and
this section.
(2) Requirement.--Rules prescribed under this subsection
shall ensure, to the maximum extent practicable, that--
(A) the implementation of section 170 of the Atomic Energy
Act of 1954 (42 U.S.C. 2210) and this section is consistent
and equitable; and
(B) the financial and operational burden on a Commission
licensee in complying with section 170 of that Act is not
greater as a result of the enactment of this section.
(3) Applicability of provision.--Section 553 of title 5,
United States Code, shall apply with respect to the
promulgation of regulations under this subsection.
(4) Effect of subsection.--The authority provided under
this subsection is in addition to, and does not impair or
otherwise affect, any other authority of the Secretary or the
Commission to prescribe regulations.
(m) Effective Date.--This section shall take effect on the
date of the enactment of this Act.
SEC. 935. TRANSPARENCY IN EXTRACTIVE INDUSTRIES RESOURCE
PAYMENTS.
(a) Purpose.--The purpose of this section is to--
(1) ensure greater United States energy security by
combating corruption in the governments of foreign countries
that receive revenues from the sale of their natural
resources; and
(2) enhance the development of democracy and increase
political and economic stability in such resource rich
foreign countries.
(b) Statement of Policy.--It is the policy of the United
States--
(1) to increase energy security by promoting anti-
corruption initiatives in oil and natural gas rich countries;
and
(2) to promote global energy security through promotion of
programs such as the Extractive Industries Transparency
Initiative (EITI) that seek to instill transparency and
accountability into extractive industries resource payments.
(c) Sense of Congress.--It is the sense of Congress that
the United States should further global energy security and
promote democratic development in resource-rich foreign
countries by--
(1) encouraging further participation in the EITI by
eligible countries and companies; and
(2) promoting the efficacy of the EITI program by ensuring
a robust and candid review mechanism.
(d) Report.--
(1) Report required.--Not later than 180 days after the
date of the enactment of this Act, and annually thereafter,
the Secretary of State, in consultation with the Secretary of
Energy, shall submit to the appropriate congressional
committees a report on progress made in promoting
transparency in extractive industries resource payments.
[[Page H14387]]
(2) Matters to be included.--The report required by
paragraph (1) shall include a detailed description of United
States participation in the EITI, bilateral and multilateral
diplomatic efforts to further participation in the EITI, and
other United States initiatives to strengthen energy
security, deter energy kleptocracy, and promote transparency
in the extractive industries.
(e) Authorization of Appropriations.--There is authorized
to be appropriated $3,000,000 for the purposes of United
States contributions to the Multi-Donor Trust Fund of the
EITI.
TITLE X--GREEN JOBS
SEC. 1001. SHORT TITLE.
This title may be cited as the ``Green Jobs Act of 2007''.
SEC. 1002. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER
TRAINING PROGRAM.
Section 171 of the Workforce Investment Act of 1998 (29
U.S.C. 2916) is amended by adding at the end the following:
``(e) Energy Efficiency and Renewable Energy Worker
Training Program.--
``(1) Grant program.--
``(A) In general.--Not later than 6 months after the date
of enactment of the Green Jobs Act of 2007, the Secretary, in
consultation with the Secretary of Energy, shall establish an
energy efficiency and renewable energy worker training
program under which the Secretary shall carry out the
activities described in paragraph (2) to achieve the purposes
of this subsection.
``(B) Eligibility.--For purposes of providing assistance
and services under the program established under this
subsection--
``(i) target populations of eligible individuals to be
given priority for training and other services shall
include--
``(I) workers impacted by national energy and environmental
policy;
``(II) individuals in need of updated training related to
the energy efficiency and renewable energy industries;
``(III) veterans, or past and present members of reserve
components of the Armed Forces;
``(IV) unemployed individuals;
``(V) individuals, including at-risk youth, seeking
employment pathways out of poverty and into economic self-
sufficiency; and
``(VI) formerly incarcerated, adjudicated, nonviolent
offenders; and
``(ii) energy efficiency and renewable energy industries
eligible to participate in a program under this subsection
include--
``(I) the energy-efficient building, construction, and
retrofits industries;
``(II) the renewable electric power industry;
``(III) the energy efficient and advanced drive train
vehicle industry;
``(IV) the biofuels industry;
``(V) the deconstruction and materials use industries;
``(VI) the energy efficiency assessment industry serving
the residential, commercial, or industrial sectors; and
``(VII) manufacturers that produce sustainable products
using environmentally sustainable processes and materials.
``(2) Activities.--
``(A) National research program.--Under the program
established under paragraph (1), the Secretary, acting
through the Bureau of Labor Statistics, where appropriate,
shall collect and analyze labor market data to track
workforce trends resulting from energy-related initiatives
carried out under this subsection. Activities carried out
under this paragraph shall include--
``(i) tracking and documentation of academic and
occupational competencies as well as future skill needs with
respect to renewable energy and energy efficiency technology;
``(ii) tracking and documentation of occupational
information and workforce training data with respect to
renewable energy and energy efficiency technology;
``(iii) collaborating with State agencies, workforce
investments boards, industry, organized labor, and community
and nonprofit organizations to disseminate information on
successful innovations for labor market services and worker
training with respect to renewable energy and energy
efficiency technology;
``(iv) serving as a clearinghouse for best practices in
workforce development, job placement, and collaborative
training partnerships;
``(v) encouraging the establishment of workforce training
initiatives with respect to renewable energy and energy
efficiency technologies;
``(vi) linking research and development in renewable energy
and energy efficiency technology with the development of
standards and curricula for current and future jobs;
``(vii) assessing new employment and work practices
including career ladder and upgrade training as well as high
performance work systems; and
``(viii) providing technical assistance and capacity
building to national and State energy partnerships, including
industry and labor representatives.
``(B) National energy training partnership grants.--
``(i) In general.--Under the program established under
paragraph (1), the Secretary shall award National Energy
Training Partnerships Grants on a competitive basis to
eligible entities to enable such entities to carry out
training that leads to economic self-sufficiency and to
develop an energy efficiency and renewable energy industries
workforce. Grants shall be awarded under this subparagraph so
as to ensure geographic diversity with at least 2 grants
awarded to entities located in each of the 4 Petroleum
Administration for Defense Districts with no subdistricts,
and at least 1 grant awarded to an entity located in each of
the subdistricts of the Petroleum Administration for Defense
District with subdistricts.
``(ii) Eligibility.--To be eligible to receive a grant
under clause (i), an entity shall be a nonprofit partnership
that--
``(I) includes the equal participation of industry,
including public or private employers, and labor
organizations, including joint labor-management training
programs, and may include workforce investment boards,
community-based organizations, qualified service and
conservation corps, educational institutions, small
businesses, cooperatives, State and local veterans agencies,
and veterans service organizations; and
``(II) demonstrates--
``(aa) experience in implementing and operating worker
skills training and education programs;
``(bb) the ability to identify and involve in training
programs carried out under this grant, target populations of
individuals who would benefit from training and be actively
involved in activities related to energy efficiency and
renewable energy industries; and
``(cc) the ability to help individuals achieve economic
self-sufficiency.
``(iii) Priority.--Priority shall be given to partnerships
which leverage additional public and private resources to
fund training programs, including cash or in-kind matches
from participating employers.
``(C) State labor market research, information, and labor
exchange research program.--
``(i) In general.--Under the program established under
paragraph (1), the Secretary shall award competitive grants
to States to enable such States to administer labor market
and labor exchange information programs that include the
implementation of the activities described in clause (ii), in
coordination with the one-stop delivery system.
``(ii) Activities.--A State shall use amounts awarded under
a grant under this subparagraph to provide funding to the
State agency that administers the Wagner-Peyser Act and State
unemployment compensation programs to carry out the following
activities using State agency merit staff:
``(I) The identification of job openings in the renewable
energy and energy efficiency sector.
``(II) The administration of skill and aptitude testing and
assessment for workers.
``(III) The counseling, case management, and referral of
qualified job seekers to openings and training programs,
including energy efficiency and renewable energy training
programs.
``(D) State energy training partnership program.--
``(i) In general.--Under the program established under
paragraph (1), the Secretary shall award competitive grants
to States to enable such States to administer renewable
energy and energy efficiency workforce development programs
that include the implementation of the activities described
in clause (ii).
``(ii) Partnerships.--A State shall use amounts awarded
under a grant under this subparagraph to award competitive
grants to eligible State Energy Sector Partnerships to enable
such Partnerships to coordinate with existing apprenticeship
and labor management training programs and implement training
programs that lead to the economic self-sufficiency of
trainees.
``(iii) Eligibility.--To be eligible to receive a grant
under this subparagraph, a State Energy Sector Partnership
shall--
``(I) consist of nonprofit organizations that include equal
participation from industry, including public or private
nonprofit employers, and labor organizations, including joint
labor-management training programs, and may include
representatives from local governments, the workforce
investment system, including one-stop career centers,
community based organizations, qualified service and
conservation corps, community colleges, and other post-
secondary institutions, small businesses, cooperatives, State
and local veterans agencies, and veterans service
organizations;
``(II) demonstrate experience in implementing and operating
worker skills training and education programs; and
``(III) demonstrate the ability to identify and involve in
training programs, target populations of workers who would
benefit from training and be actively involved in activities
related to energy efficiency and renewable energy industries.
``(iv) Priority.--In awarding grants under this
subparagraph, the Secretary shall give priority to States
that demonstrate that activities under the grant--
``(I) meet national energy policies associated with energy
efficiency, renewable energy, and the reduction of emissions
of greenhouse gases;
``(II) meet State energy policies associated with energy
efficiency, renewable energy, and the reduction of emissions
of greenhouse gases; and
``(III) leverage additional public and private resources to
fund training programs, including cash or in-kind matches
from participating employers.
``(v) Coordination.--A grantee under this subparagraph
shall coordinate activities carried out under the grant with
existing other
[[Page H14388]]
appropriate training programs, including apprenticeship and
labor management training programs, including such activities
referenced in paragraph (3)(A), and implement training
programs that lead to the economic self-sufficiency of
trainees.
``(E) Pathways out of poverty demonstration program.--
``(i) In general.--Under the program established under
paragraph (1), the Secretary shall award competitive grants
of sufficient size to eligible entities to enable such
entities to carry out training that leads to economic self-
sufficiency. The Secretary shall give priority to entities
that serve individuals in families with income of less than
200 percent of the sufficiency standard for the local areas
where the training is conducted that specifies, as defined by
the State, or where such standard is not established, the
income needs of families, by family size, the number and ages
of children in the family, and sub-State geographical
considerations. Grants shall be awards to ensure geographic
diversity.
``(ii) Eligible entities.--To be eligible to receive a
grant an entity shall be a partnership that--
``(I) includes community-based nonprofit organizations,
educational institutions with expertise in serving low-income
adults or youth, public or private employers from the
industry sectors described in paragraph (1)(B)(ii), and labor
organizations representing workers in such industry sectors;
``(II) demonstrates a record of successful experience in
implementing and operating worker skills training and
education programs;
``(III) coordinates activities, where appropriate, with the
workforce investment system; and
``(IV) demonstrates the ability to recruit individuals for
training and to support such individuals to successful
completion in training programs carried out under this grant,
targeting populations of workers who are or will be engaged
in activities related to energy efficiency and renewable
energy industries.
``(iii) Priorities.--In awarding grants under this
paragraph, the Secretary shall give priority to applicants
that--
``(I) target programs to benefit low-income workers,
unemployed youth and adults, high school dropouts, or other
underserved sectors of the workforce within areas of high
poverty;
``(II) ensure that supportive services are integrated with
education and training, and delivered by organizations with
direct access to and experience with targeted populations;
``(III) leverage additional public and private resources to
fund training programs, including cash or in-kind matches
from participating employers;
``(IV) involve employers and labor organizations in the
determination of relevant skills and competencies and ensure
that the certificates or credentials that result from the
training are employer-recognized;
``(V) deliver courses at alternative times (such as evening
and weekend programs) and locations most convenient and
accessible to participants and link adult remedial education
with occupational skills training; and
``(VI) demonstrate substantial experience in administering
local, municipal, State, Federal, foundation, or private
entity grants.
``(iv) Data collection.--Grantees shall collect and report
the following information:
``(I) The number of participants.
``(II) The demographic characteristics of participants,
including race, gender, age, parenting status, participation
in other Federal programs, education and literacy level at
entry, significant barriers to employment (such as limited
English proficiency, criminal record, addiction or mental
health problem requiring treatment, or mental disability).
``(III) The services received by participants, including
training, education, and supportive services.
``(IV) The amount of program spending per participant.
``(V) Program completion rates.
``(VI) Factors determined as significantly interfering with
program participation or completion.
``(VII) The rate of Job placement and the rate of
employment retention after 1 year.
``(VIII) The average wage at placement, including any
benefits, and the rate of average wage increase after 1 year.
``(IX) Any post-employment supportive services provided.
The Secretary shall assist grantees in the collection of data
under this clause by making available, where practicable,
low-cost means of tracking the labor market outcomes of
participants, and by providing standardized reporting forms,
where appropriate.
``(3) Activities.--
``(A) In general.--Activities to be carried out under a
program authorized by subparagraph (B), (D), or (E) of
paragraph (2) shall be coordinated with existing systems or
providers, as appropriate. Such activities may include--
``(i) occupational skills training, including curriculum
development, on-the-job training, and classroom training;
``(ii) safety and health training;
``(iii) the provision of basic skills, literacy, GED,
English as a second language, and job readiness training;
``(iv) individual referral and tuition assistance for a
community college training program, or any training program
leading to an industry-recognized certificate;
``(v) internship programs in fields related to energy
efficiency and renewable energy;
``(vi) customized training in conjunction with an existing
registered apprenticeship program or labor-management
partnership;
``(vii) incumbent worker and career ladder training and
skill upgrading and retraining;
``(viii) the implementation of transitional jobs
strategies; and
``(ix) the provision of supportive services.
``(B) Outreach activities.--In addition to the activities
authorized under subparagraph (A), activities authorized for
programs under subparagraph (E) of paragraph (2) may include
the provision of outreach, recruitment, career guidance, and
case management services.
``(4) Worker protections and nondiscrimination
requirements.--
``(A) Application of wia.--The provisions of sections 181
and 188 of the Workforce Investment Act of 1998 (29 U.S.C.
2931 and 2938) shall apply to all programs carried out with
assistance under this subsection.
``(B) Consultation with labor organizations.--If a labor
organization represents a substantial number of workers who
are engaged in similar work or training in an area that is
the same as the area that is proposed to be funded under this
Act, the labor organization shall be provided an opportunity
to be consulted and to submit comments in regard to such a
proposal.
``(5) Performance measures.--
``(A) In general.--The Secretary shall negotiate and reach
agreement with the eligible entities that receive grants and
assistance under this section on performance measures for the
indicators of performance referred to in subparagraphs (A)
and (B) of section 136(b)(2) that will be used to evaluate
the performance of the eligible entity in carrying out the
activities described in subsection (e)(2). Each performance
measure shall consist of such an indicator of performance,
and a performance level referred to in subparagraph (B).
``(B) Performance levels.--The Secretary shall negotiate
and reach agreement with the eligible entity regarding the
levels of performance expected to be achieved by the eligible
entity on the indicators of performance.
``(6) Report.--
``(A) Status report.--Not later than 18 months after the
date of enactment of the Green Jobs Act of 2007, the
Secretary shall transmit a report to the Senate Committee on
Energy and Natural Resources, the Senate Committee on Health,
Education, Labor, and Pensions, the House Committee on
Education and Labor, and the House Committee on Energy and
Commerce on the training program established by this
subsection. The report shall include a description of the
entities receiving funding and the activities carried out by
such entities.
``(B) Evaluation.--Not later than 3 years after the date of
enactment of such Act, the Secretary shall transmit to the
Senate Committee on Energy and Natural Resources, the Senate
Committee on Health, Education, Labor, and Pensions, the
House Committee on Education and Labor, and the House
Committee on Energy and Commerce an assessment of such
program and an evaluation of the activities carried out by
entities receiving funding from such program.
``(7) Definition.--As used in this subsection, the term
`renewable energy' has the meaning given such term in section
203(b)(2) of the Energy Policy Act of 2005 (Public Law 109-
58).
``(8) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection, $125,000,000
for each fiscal years, of which--
``(A) not to exceed 20 percent of the amount appropriated
in each such fiscal year shall be made available for, and
shall be equally divided between, national labor market
research and information under paragraph (2)(A) and State
labor market information and labor exchange research under
paragraph (2)(C), and not more than 2 percent of such amount
shall be for the evaluation and report required under
paragraph (4);
``(B) 20 percent shall be dedicated to Pathways Out of
Poverty Demonstration Programs under paragraph (2)(E); and
``(C) the remainder shall be divided equally between
National Energy Partnership Training Grants under paragraph
(2)(B) and State energy training partnership grants under
paragraph (2)(D).''.
TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE
Subtitle A--Department of Transportation
SEC. 1101. OFFICE OF CLIMATE CHANGE AND ENVIRONMENT.
(a) In General.--Section 102 of title 49, United States
Code, is amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following:
``(g) Office of Climate Change and Environment.--
``(1) Establishment.--There is established in the
Department an Office of Climate Change and Environment to
plan, coordinate, and implement--
``(A) department-wide research, strategies, and actions
under the Department's statutory authority to reduce
transportation-related energy use and mitigate the effects of
climate change; and
[[Page H14389]]
``(B) department-wide research strategies and actions to
address the impacts of climate change on transportation
systems and infrastructure.
``(2) Clearinghouse.--The Office shall establish a
clearinghouse of solutions, including cost-effective
congestion reduction approaches, to reduce air pollution and
transportation-related energy use and mitigate the effects of
climate change.''.
(b) Coordination.--The Office of Climate Change and
Environment of the Department of Transportation shall
coordinate its activities with the United States Global
Change Research Program.
(c) Transportation System's Impact on Climate Change and
Fuel Efficiency.--
(1) Study.--The Office of Climate Change and Environment,
in coordination with the Environmental Protection Agency and
in consultation with the United States Global Change Research
Program, shall conduct a study to examine the impact of the
Nation's transportation system on climate change and the fuel
efficiency savings and clean air impacts of major
transportation projects, to identify solutions to reduce air
pollution and transportation-related energy use and mitigate
the effects of climate change, and to examine the potential
fuel savings that could result from changes in the current
transportation system and through the use of intelligent
transportation systems that help businesses and consumers to
plan their travel and avoid delays, including Web-based real-
time transit information systems, congestion information
systems, carpool information systems, parking information
systems, freight route management systems, and traffic
management systems.
(2) Report.--Not later than one year after the date of
enactment of this Act, the Secretary of Transportation, in
coordination with the Administrator of the Environmental
Protection Agency, shall transmit to the Committee on
Transportation and Infrastructure and the Committee on Energy
and Commerce of the House of Representatives and the
Committee on Commerce, Science, and Transportation and the
Committee on Environment and Public Works of the Senate a
report that contains the results of the study required under
this section.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Transportation for the
Office of Climate Change and Environment to carry out its
duties under section 102(g) of title 49, United States Code
(as amended by this Act), such sums as may be necessary for
fiscal years 2008 through 2011.
Subtitle B--Railroads
SEC. 1111. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT PILOT
PROGRAM.
(a) In General.--The Secretary of Transportation, in
consultation with the Administrator of the Environmental
Protection Agency, shall establish and carry out a pilot
program for making grants to railroad carriers (as defined in
section 20102 of title 49, United States Code) and State and
local governments--
(1) for assistance in purchasing hybrid or other energy-
efficient locomotives, including hybrid switch and generator-
set locomotives; and
(2) to demonstrate the extent to which such locomotives
increase fuel economy, reduce emissions, and lower costs of
operation.
(b) Limitation.--Notwithstanding subsection (a), no grant
under this section may be used to fund the costs of emissions
reductions that are mandated under Federal law.
(c) Grant Criteria.--In selecting applicants for grants
under this section, the Secretary of Transportation shall
consider--
(1) the level of energy efficiency that would be achieved
by the proposed project;
(2) the extent to which the proposed project would assist
in commercial deployment of hybrid or other energy-efficient
locomotive technologies;
(3) the extent to which the proposed project complements
other private or governmental partnership efforts to improve
air quality or fuel efficiency in a particular area; and
(4) the extent to which the applicant demonstrates
innovative strategies and a financial commitment to
increasing energy efficiency and reducing greenhouse gas
emissions of its railroad operations.
(d) Competitive Grant Selection Process.--
(1) Applications.--A railroad carrier or State or local
government seeking a grant under this section shall submit
for approval by the Secretary of Transportation an
application for the grant containing such information as the
Secretary of Transportation may require.
(2) Competitive selection.--The Secretary of Transportation
shall conduct a national solicitation for applications for
grants under this section and shall select grantees on a
competitive basis.
(e) Federal Share.--The Federal share of the cost of a
project under this section shall not exceed 80 percent of the
project cost.
(f) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary of Transportation shall
submit to Congress a report on the results of the pilot
program carried out under this section.
(g) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary of Transportation
$10,000,000 for each of the fiscal years 2008 through 2011 to
carry out this section. Such funds shall remain available
until expended.
SEC. 1112. CAPITAL GRANTS FOR CLASS II AND CLASS III
RAILROADS.
(a) Amendment.--Chapter 223 of title 49, United States
Code, is amended to read as follows:
``CHAPTER 223--CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS
``Sec.
``22301. Capital grants for class II and class III railroads.
``Sec. 22301. Capital grants for class II and class III
railroads
``(a) Establishment of Program.--
``(1) Establishment.--The Secretary of Transportation shall
establish a program for making capital grants to class II and
class III railroads. Such grants shall be for projects in the
public interest that--
``(A)(i) rehabilitate, preserve, or improve railroad track
(including roadbed, bridges, and related track structures)
used primarily for freight transportation;
``(ii) facilitate the continued or greater use of railroad
transportation for freight shipments; and
``(iii) reduce the use of less fuel efficient modes of
transportation in the transportation of such shipments; and
``(B) demonstrate innovative technologies and advanced
research and development that increase fuel economy, reduce
greenhouse gas emissions, and lower the costs of operation.
``(2) Provision of grants.--Grants may be provided under
this chapter--
``(A) directly to the class II or class III railroad; or
``(B) with the concurrence of the class II or class III
railroad, to a State or local government.
``(3) State cooperation.--Class II and class III railroad
applicants for a grant under this chapter are encouraged to
utilize the expertise and assistance of State transportation
agencies in applying for and administering such grants. State
transportation agencies are encouraged to provide such
expertise and assistance to such railroads.
``(4) Regulations.--Not later than October 1, 2008, the
Secretary shall issue final regulations to implement the
program under this section.
``(b) Maximum Federal Share.--The maximum Federal share for
carrying out a project under this section shall be 80 percent
of the project cost. The non-Federal share may be provided by
any non-Federal source in cash, equipment, or supplies. Other
in-kind contributions may be approved by the Secretary on a
case-by-case basis consistent with this chapter.
``(c) Use of Funds.--Grants provided under this section
shall be used to implement track capital projects as soon as
possible. In no event shall grant funds be contractually
obligated for a project later than the end of the third
Federal fiscal year following the year in which the grant was
awarded. Any funds not so obligated by the end of such fiscal
year shall be returned to the Secretary for reallocation.
``(d) Employee Protection.--The Secretary shall require as
a condition of any grant made under this section that the
recipient railroad provide a fair arrangement at least as
protective of the interests of employees who are affected by
the project to be funded with the grant as the terms imposed
under section 11326(a), as in effect on the date of the
enactment of this chapter.
``(e) Labor Standards.--
``(1) Prevailing wages.--The Secretary shall ensure that
laborers and mechanics employed by contractors and
subcontractors in construction work financed by a grant made
under this section will be paid wages not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor under subchapter IV of
chapter 31 of title 40 (commonly known as the `Davis-Bacon
Act'). The Secretary shall make a grant under this section
only after being assured that required labor standards will
be maintained on the construction work.
``(2) Wage rates.--Wage rates in a collective bargaining
agreement negotiated under the Railway Labor Act (45 U.S.C.
151 et seq.) are deemed for purposes of this subsection to
comply with the subchapter IV of chapter 31 of title 40.
``(f) Study.--The Secretary shall conduct a study of the
projects carried out with grant assistance under this section
to determine the extent to which the program helps promote a
reduction in fuel use associated with the transportation of
freight and demonstrates innovative technologies that
increase fuel economy, reduce greenhouse gas emissions, and
lower the costs of operation. Not later than March 31, 2009,
the Secretary shall submit a report to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate on the study, including any
recommendations the Secretary considers appropriate regarding
the program.
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary $50,000,000 for each of
fiscal years 2008 through 2011 for carrying out this
section.''.
(b) Clerical Amendment.--The item relating to chapter 223
in the table of chapters of subtitle V of title 49, United
States Code, is amended to read as follows:
``223. CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS.22301''.....
[[Page H14390]]
Subtitle C--Marine Transportation
SEC. 1121. SHORT SEA TRANSPORTATION INITIATIVE.
(a) In General.--Title 46, United States Code, is amended
by adding after chapter 555 the following:
``CHAPTER 556--SHORT SEA TRANSPORTATION
``Sec. 55601. Short sea transportation program.
``Sec. 55602. Cargo and shippers.
``Sec. 55603. Interagency coordination.
``Sec. 55604. Research on short sea transportation.
``Sec. 55605. Short sea transportation defined.
``Sec. 55601. Short sea transportation program
``(a) Establishment.--The Secretary of Transportation shall
establish a short sea transportation program and designate
short sea transportation projects to be conducted under the
program to mitigate landside congestion.
``(b) Program Elements.--The program shall encourage the
use of short sea transportation through the development and
expansion of--
``(1) documented vessels;
``(2) shipper utilization;
``(3) port and landside infrastructure; and
``(4) marine transportation strategies by State and local
governments.
``(c) Short Sea Transportation Routes.--The Secretary shall
designate short sea transportation routes as extensions of
the surface transportation system to focus public and private
efforts to use the waterways to relieve landside congestion
along coastal corridors. The Secretary may collect and
disseminate data for the designation and delineation of short
sea transportation routes.
``(d) Project Designation.--The Secretary may designate a
project to be a short sea transportation project if the
Secretary determines that the project may--
``(1) offer a waterborne alternative to available landside
transportation services using documented vessels; and
``(2) provide transportation services for passengers or
freight (or both) that may reduce congestion on landside
infrastructure using documented vessels.
``(e) Elements of Program.--For a short sea transportation
project designated under this section, the Secretary may--
``(1) promote the development of short sea transportation
services;
``(2) coordinate, with ports, State departments of
transportation, localities, other public agencies, and the
private sector and on the development of landside facilities
and infrastructure to support short sea transportation
services; and
``(3) develop performance measures for the short sea
transportation program.
``(f) Multistate, State and Regional Transportation
Planning.--The Secretary, in consultation with Federal
entities and State and local governments, shall develop
strategies to encourage the use of short sea transportation
for transportation of passengers and cargo. The Secretary
shall--
``(1) assess the extent to which States and local
governments include short sea transportation and other marine
transportation solutions in their transportation planning;
``(2) encourage State departments of transportation to
develop strategies, where appropriate, to incorporate short
sea transportation, ferries, and other marine transportation
solutions for regional and interstate transport of freight
and passengers in their transportation planning; and
``(3) encourage groups of States and multi-State
transportation entities to determine how short sea
transportation can address congestion, bottlenecks, and other
interstate transportation challenges.
``Sec. 55602. Cargo and shippers
``(a) Memorandums of Agreement.--The Secretary of
Transportation shall enter into memorandums of understanding
with the heads of other Federal entities to transport
federally owned or generated cargo using a short sea
transportation project designated under section 55601 when
practical or available.
``(b) Short-Term Incentives.--The Secretary shall consult
shippers and other participants in transportation logistics
and develop proposals for short-term incentives to encourage
the use of short sea transportation.
``Sec. 55603. Interagency coordination
``The Secretary of Transportation shall establish a board
to identify and seek solutions to impediments hindering
effective use of short sea transportation. The board shall
include representatives of the Environmental Protection
Agency and other Federal, State, and local governmental
entities and private sector entities.
``Sec. 55604. Research on short sea transportation
``The Secretary of Transportation, in consultation with the
Administrator of the Environmental Protection Agency, may
conduct research on short sea transportation, regarding--
``(1) the environmental and transportation benefits to be
derived from short sea transportation alternatives for other
forms of transportation;
``(2) technology, vessel design, and other improvements
that would reduce emissions, increase fuel economy, and lower
costs of short sea transportation and increase the efficiency
of intermodal transfers; and
``(3) solutions to impediments to short sea transportation
projects designated under section 55601.
``Sec. 55605. Short sea transportation defined
``In this chapter, the term `short sea transportation'
means the carriage by vessel of cargo--
``(1) that is--
``(A) contained in intermodal cargo containers and loaded
by crane on the vessel; or
``(B) loaded on the vessel by means of wheeled technology;
and
``(2) that is--
``(A) loaded at a port in the United States and unloaded
either at another port in the United States or at a port in
Canada located in the Great Lakes Saint Lawrence Seaway
System; or
``(B) loaded at a port in Canada located in the Great Lakes
Saint Lawrence Seaway System and unloaded at a port in the
United States.''.
(b) Clerical Amendment.--The table of chapters at the
beginning of subtitle V of such title is amended by inserting
after the item relating to chapter 555 the following:
``556. Short Sea Transportation............................55601''.....
(c) Regulations.--
(1) Interim regulations.--Not later than 90 days after the
date of enactment of this Act, the Secretary of
Transportation shall issue temporary regulations to implement
the program under this section. Subchapter II of chapter 5 of
title 5, United States Code, does not apply to a temporary
regulation issued under this paragraph or to an amendment to
such a temporary regulation.
(2) Final regulations.--Not later than October 1, 2008, the
Secretary of Transportation shall issue final regulations to
implement the program under this section.
SEC. 1122. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL
CONSTRUCTION FUND.
(a) Definition of Qualified Vessel.--Section 53501 of title
46, United States Code, is amended--
(1) in paragraph (5)(A)(iii) by striking ``or noncontiguous
domestic'' and inserting ``noncontiguous domestic, or short
sea transportation trade''; and
(2) by inserting after paragraph (6) the following:
``(7) Short sea transportation trade.--The term `short sea
transportation trade' means the carriage by vessel of cargo--
``(A) that is--
``(i) contained in intermodal cargo containers and loaded
by crane on the vessel; or
``(ii) loaded on the vessel by means of wheeled technology;
and
``(B) that is--
``(i) loaded at a port in the United States and unloaded
either at another port in the United States or at a port in
Canada located in the Great Lakes Saint Lawrence Seaway
System; or
``(ii) loaded at a port in Canada located in the Great
Lakes Saint Lawrence Seaway System and unloaded at a port in
the United States.''.
(b) Allowable Purpose.--Section 53503(b) of such title is
amended by striking ``or noncontiguous domestic trade'' and
inserting ``noncontiguous domestic, or short sea
transportation trade''.
SEC. 1123. SHORT SEA TRANSPORTATION REPORT.
Not later than one year after the date of enactment of this
Act, the Secretary of Transportation, in consultation with
the Administrator of the Environmental Protection Agency,
shall submit to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate a report on the short sea transportation program
established under the amendments made by section 1121. The
report shall include a description of the activities
conducted under the program, and any recommendations for
further legislative or administrative action that the
Secretary of Transportation considers appropriate.
Subtitle D--Highways
SEC. 1131. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS.
Section 120(c) of title 23, United States Code, is
amended--
(1) in the subsection heading by striking ``for Certain
Safety Projects'';
(2) by striking ``The Federal share'' and inserting the
following:
``(1) Certain safety projects.--The Federal share''; and
(3) by adding at the end the following:
``(2) CMAQ projects.--The Federal share payable on account
of a project or program carried out under section 149 with
funds obligated in fiscal year 2008 or 2009, or both, shall
be not less than 80 percent and, at the discretion of the
State, may be up to 100 percent of the cost thereof.''.
SEC. 1132. DISTRIBUTION OF RESCISSIONS.
(a) In General.--Any unobligated balances of amounts that
are appropriated from the Highway Trust Fund for a fiscal
year, and apportioned under chapter 1 of title 23, United
States Code, before, on, or after the date of enactment of
this Act and that are rescinded in fiscal year 2008 or fiscal
year 2009 shall be distributed by the Secretary of
Transportation within each State (as defined in section 101
of such title) among all programs for which funds are
apportioned under such chapter for such fiscal year, to the
extent sufficient funds remain available for obligation, in
the ratio that the amount of funds apportioned for each
program under
[[Page H14391]]
such chapter for such fiscal year, bears to the amount of
funds apportioned for all such programs under such chapter
for such fiscal year.
(b) Adjustments.--A State may make adjustments to the
distribution of a rescission within the State for a fiscal
year under subsection (a) by transferring the amounts to be
rescinded among the programs for which funds are apportioned
under chapter 1 of title 23, United States Code, for such
fiscal year, except that in making such adjustments the State
may not rescind from any such program more than 110 percent
of the funds to be rescinded from the program for the fiscal
year as determined by the Secretary of Transportation under
subsection (a).
(c) Treatment of Transportation Enhancement Set-Aside and
Funds Suballocated to Substate Areas.--Funds set aside under
sections 133(d)(2) and 133(d)(3) of title 23, United States
Code, shall be treated as being apportioned under chapter 1
of such title for purposes of subsection (a).
SEC. 1133. SENSE OF CONGRESS REGARDING USE OF COMPLETE
STREETS DESIGN TECHNIQUES.
It is the sense of Congress that in constructing new
roadways or rehabilitating existing facilities, State and
local governments should consider policies designed to
accommodate all users, including motorists, pedestrians,
cyclists, transit riders, and people of all ages and
abilities, in order to--
(1) serve all surface transportation users by creating a
more interconnected and intermodal system;
(2) create more viable transportation options; and
(3) facilitate the use of environmentally friendly options,
such as public transportation, walking, and bicycling.
TITLE XII--SMALL BUSINESS ENERGY PROGRAMS
SEC. 1201. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY
EFFICIENCY.
Section 7(a)(31) of the Small Business Act (15 U.S.C.
636(a)(31)) is amended by adding at the end the following:
``(F) Express loans for renewable energy and energy
efficiency.--
``(i) Definitions.--In this subparagraph--
``(I) the term `biomass'--
``(aa) means any organic material that is available on a
renewable or recurring basis, including--
``(AA) agricultural crops;
``(BB) trees grown for energy production;
``(CC) wood waste and wood residues;
``(DD) plants (including aquatic plants and grasses);
``(EE) residues;
``(FF) fibers;
``(GG) animal wastes and other waste materials; and
``(HH) fats, oils, and greases (including recycled fats,
oils, and greases); and
``(bb) does not include--
``(AA) paper that is commonly recycled; or
``(BB) unsegregated solid waste;
``(II) the term `energy efficiency project' means the
installation or upgrading of equipment that results in a
significant reduction in energy usage; and
``(III) the term `renewable energy system' means a system
of energy derived from--
``(aa) a wind, solar, biomass (including biodiesel), or
geothermal source; or
``(bb) hydrogen derived from biomass or water using an
energy source described in item (aa).
``(ii) Loans.--The Administrator may make a loan under the
Express Loan Program for the purpose of--
``(I) purchasing a renewable energy system; or
``(II) carrying out an energy efficiency project for a
small business concern.''.
SEC. 1202. PILOT PROGRAM FOR REDUCED 7(A) FEES FOR PURCHASE
OF ENERGY EFFICIENT TECHNOLOGIES.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
is amended by adding at the end the following:
``(32) Loans for energy efficient technologies.--
``(A) Definitions.--In this paragraph--
``(i) the term `cost' has the meaning given that term in
section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a);
``(ii) the term `covered energy efficiency loan' means a
loan--
``(I) made under this subsection; and
``(II) the proceeds of which are used to purchase energy
efficient designs, equipment, or fixtures, or to reduce the
energy consumption of the borrower by 10 percent or more; and
``(iii) the term `pilot program' means the pilot program
established under subparagraph (B)
``(B) Establishment.--The Administrator shall establish and
carry out a pilot program under which the Administrator shall
reduce the fees for covered energy efficiency loans.
``(C) Duration.--The pilot program shall terminate at the
end of the second full fiscal year after the date that the
Administrator establishes the pilot program.
``(D) Maximum participation.--A covered energy efficiency
loan shall include the maximum participation levels by the
Administrator permitted for loans made under this subsection.
``(E) Fees.--
``(i) In general.--The fee on a covered energy efficiency
loan shall be equal to 50 percent of the fee otherwise
applicable to that loan under paragraph (18).
``(ii) Waiver.--The Administrator may waive clause (i) for
a fiscal year if--
``(I) for the fiscal year before that fiscal year, the
annual rate of default of covered energy efficiency loans
exceeds that of loans made under this subsection that are not
covered energy efficiency loans;
``(II) the cost to the Administration of making loans under
this subsection is greater than zero and such cost is
directly attributable to the cost of making covered energy
efficiency loans; and
``(III) no additional sources of revenue authority are
available to reduce the cost of making loans under this
subsection to zero.
``(iii) Effect of waiver.--If the Administrator waives the
reduction of fees under clause (ii), the Administrator--
``(I) shall not assess or collect fees in an amount greater
than necessary to ensure that the cost of the program under
this subsection is not greater than zero; and
``(II) shall reinstate the fee reductions under clause (i)
when the conditions in clause (ii) no longer apply.
``(iv) No increase of fees.--The Administrator shall not
increase the fees under paragraph (18) on loans made under
this subsection that are not covered energy efficiency loans
as a direct result of the pilot program.
``(F) GAO report.--
``(i) In general.--Not later than 1 year after the date
that the pilot program terminates, the Comptroller General of
the United States shall submit to the Committee on Small
Business of the House of Representatives and the Committee on
Small Business and Entrepreneurship of the Senate a report on
the pilot program.
``(ii) Contents.--The report submitted under clause (i)
shall include--
``(I) the number of covered energy efficiency loans for
which fees were reduced under the pilot program;
``(II) a description of the energy efficiency savings with
the pilot program;
``(III) a description of the impact of the pilot program on
the program under this subsection;
``(IV) an evaluation of the efficacy and potential fraud
and abuse of the pilot program; and
``(V) recommendations for improving the pilot program.''.
SEC. 1203. SMALL BUSINESS ENERGY EFFICIENCY.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``association'' means the association of small
business development centers established under section
21(a)(3)(A) of the Small Business Act (15 U.S.C.
648(a)(3)(A));
(3) the term ``disability'' has the meaning given that term
in section 3 of the Americans with Disabilities Act of 1990
(42 U.S.C. 12102);
(4) the term ``Efficiency Program'' means the Small
Business Energy Efficiency Program established under
subsection (c)(1);
(5) the term ``electric utility'' has the meaning given
that term in section 3 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2602);
(6) the term ``high performance green building'' has the
meaning given that term in section 401;
(7) the term ``on-bill financing'' means a low interest or
no interest financing agreement between a small business
concern and an electric utility for the purchase or
installation of equipment, under which the regularly
scheduled payment of that small business concern to that
electric utility is not reduced by the amount of the
reduction in cost attributable to the new equipment and that
amount is credited to the electric utility, until the cost of
the purchase or installation is repaid;
(8) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15 U.S.C.
632);
(9) the term ``small business development center'' means a
small business development center described in section 21 of
the Small Business Act (15 U.S.C. 648);
(10) the term ``telecommuting'' means the use of
telecommunications to perform work functions under
circumstances which reduce or eliminate the need to commute;
(11) the term ``Telecommuting Pilot Program'' means the
pilot program established under subsection (d)(1)(A); and
(12) the term ``veteran'' has the meaning given that term
in section 101 of title 38, United States Code.
(b) Implementation of Small Business Energy Efficiency
Program.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall promulgate
final rules establishing the Government-wide program
authorized under subsection (d) of section 337 of the Energy
Policy and Conservation Act (42 U.S.C. 6307) that ensure
compliance with that subsection by not later than 6 months
after such date of enactment.
(2) Program required.--The Administrator shall develop and
coordinate a Government-wide program, building on the Energy
Star for Small Business program, to assist small business
concerns in--
(A) becoming more energy efficient;
(B) understanding the cost savings from improved energy
efficiency; and
(C) identifying financing options for energy efficiency
upgrades.
[[Page H14392]]
(3) Consultation and cooperation.--The program required by
paragraph (2) shall be developed and coordinated--
(A) in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency; and
(B) in cooperation with any entities the Administrator
considers appropriate, such as industry trade associations,
industry members, and energy efficiency organizations.
(4) Availability of information.--The Administrator shall
make available the information and materials developed under
the program required by paragraph (2) to--
(A) small business concerns, including smaller design,
engineering, and construction firms; and
(B) other Federal programs for energy efficiency, such as
the Energy Star for Small Business program.
(5) Strategy and report.--
(A) Strategy required.--The Administrator shall develop a
strategy to educate, encourage, and assist small business
concerns in adopting energy efficient building fixtures and
equipment.
(B) Report.--Not later than December 31, 2008, the
Administrator shall submit to Congress a report containing a
plan to implement the strategy developed under subparagraph
(A).
(c) Small Business Sustainability Initiative.--
(1) Authority.--The Administrator shall establish a Small
Business Energy Efficiency Program to provide energy
efficiency assistance to small business concerns through
small business development centers.
(2) Small business development centers.--
(A) In general.--In carrying out the Efficiency Program,
the Administrator shall enter into agreements with small
business development centers under which such centers shall--
(i) provide access to information and resources on energy
efficiency practices, including on-bill financing options;
(ii) conduct training and educational activities;
(iii) offer confidential, free, one-on-one, in-depth energy
audits to the owners and operators of small business concerns
regarding energy efficiency practices;
(iv) give referrals to certified professionals and other
providers of energy efficiency assistance who meet such
standards for educational, technical, and professional
competency as the Administrator shall establish;
(v) to the extent not inconsistent with controlling State
public utility regulations, act as a facilitator between
small business concerns, electric utilities, lenders, and the
Administration to facilitate on-bill financing arrangements;
(vi) provide necessary support to small business concerns
to--
(I) evaluate energy efficiency opportunities and
opportunities to design or construct high performance green
buildings;
(II) evaluate renewable energy sources, such as the use of
solar and small wind to supplement power consumption;
(III) secure financing to achieve energy efficiency or to
design or construct high performance green buildings; and
(IV) implement energy efficiency projects;
(vii) assist owners of small business concerns with the
development and commercialization of clean technology
products, goods, services, and processes that use renewable
energy sources, dramatically reduce the use of natural
resources, and cut or eliminate greenhouse gas emissions
through--
(I) technology assessment;
(II) intellectual property;
(III) Small Business Innovation Research submissions under
section 9 of the Small Business Act (15 U.S.C. 638);
(IV) strategic alliances;
(V) business model development; and
(VI) preparation for investors; and
(viii) help small business concerns improve environmental
performance by shifting to less hazardous materials and
reducing waste and emissions, including by providing
assistance for small business concerns to adapt the materials
they use, the processes they operate, and the products and
services they produce.
(B) Reports.--Each small business development center
participating in the Efficiency Program shall submit to the
Administrator and the Administrator of the Environmental
Protection Agency an annual report that includes--
(i) a summary of the energy efficiency assistance provided
by that center under the Efficiency Program;
(ii) the number of small business concerns assisted by that
center under the Efficiency Program;
(iii) statistics on the total amount of energy saved as a
result of assistance provided by that center under the
Efficiency Program; and
(iv) any additional information determined necessary by the
Administrator, in consultation with the association.
(C) Reports to congress.--Not later than 60 days after the
date on which all reports under subparagraph (B) relating to
a year are submitted, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives a report summarizing the information
regarding the Efficiency Program submitted by small business
development centers participating in that program.
(3) Eligibility.--A small business development center shall
be eligible to participate in the Efficiency Program only if
that center is certified under section 21(k)(2) of the Small
Business Act (15 U.S.C. 648(k)(2)).
(4) Selection of participating state programs.--From among
small business development centers submitting applications to
participate in the Efficiency Program, the Administrator--
(A) shall, to the maximum extent practicable, select small
business development centers in such a manner so as to
promote a nationwide distribution of centers participating in
the Efficiency Program; and
(B) may not select more than 1 small business development
center in a State to participate in the Efficiency Program.
(5) Matching requirement.--Subparagraphs (A) and (B) of
section 21(a)(4) of the Small Business Act (15 U.S.C.
648(a)(4)) shall apply to assistance made available under the
Efficiency Program.
(6) Grant amounts.--Each small business development center
selected to participate in the Efficiency Program under
paragraph (4) shall be eligible to receive a grant in an
amount equal to--
(A) not less than $100,000 in each fiscal year; and
(B) not more than $300,000 in each fiscal year.
(7) Evaluation and report.--The Comptroller General of the
United States shall--
(A) not later than 30 months after the date of disbursement
of the first grant under the Efficiency Program, initiate an
evaluation of that program; and
(B) not later than 6 months after the date of the
initiation of the evaluation under subparagraph (A), submit
to the Administrator, the Committee on Small Business and
Entrepreneurship of the Senate, and the Committee on Small
Business of the House of Representatives, a report
containing--
(i) the results of the evaluation; and
(ii) any recommendations regarding whether the Efficiency
Program, with or without modification, should be extended to
include the participation of all small business development
centers.
(8) Guarantee.--To the extent not inconsistent with State
law, the Administrator may guarantee the timely payment of a
loan made to a small business concern through an on-bill
financing agreement on such terms and conditions as the
Administrator shall establish through a formal rule making,
after providing notice and an opportunity for comment.
(9) Implementation.--Subject to amounts approved in advance
in appropriations Acts and separate from amounts approved to
carry out section 21(a)(1) of the Small Business Act (15
U.S.C. 648(a)(1)), the Administrator may make grants or enter
into cooperative agreements to carry out this subsection.
(10) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to make grants
and enter into cooperative agreements to carry out this
subsection.
(11) Termination.--The authority under this subsection
shall terminate 4 years after the date of disbursement of the
first grant under the Efficiency Program.
(d) Small Business Telecommuting.--
(1) Pilot program.--
(A) In general.--The Administrator shall conduct, in not
more than 5 of the regions of the Administration, a pilot
program to provide information regarding telecommuting to
employers that are small business concerns and to encourage
such employers to offer telecommuting options to employees.
(B) Special outreach to individuals with disabilities.--In
carrying out the Telecommuting Pilot Program, the
Administrator shall make a concerted effort to provide
information to--
(i) small business concerns owned by or employing
individuals with disabilities, particularly veterans who are
individuals with disabilities;
(ii) Federal, State, and local agencies having knowledge
and expertise in assisting individuals with disabilities,
including veterans who are individuals with disabilities; and
(iii) any group or organization, the primary purpose of
which is to aid individuals with disabilities or veterans who
are individuals with disabilities.
(C) Permissible activities.--In carrying out the
Telecommuting Pilot Program, the Administrator may--
(i) produce educational materials and conduct presentations
designed to raise awareness in the small business community
of the benefits and the ease of telecommuting;
(ii) conduct outreach--
(I) to small business concerns that are considering
offering telecommuting options; and
(II) as provided in subparagraph (B); and
(iii) acquire telecommuting technologies and equipment to
be used for demonstration purposes.
(D) Selection of regions.--In determining which regions
will participate in the Telecommuting Pilot Program, the
Administrator shall give priority consideration to regions in
which Federal agencies and private-sector employers have
demonstrated a strong regional commitment to telecommuting.
(2) Report to congress.--Not later than 2 years after the
date on which funds are first appropriated to carry out this
subsection, the Administrator shall transmit to the
[[Page H14393]]
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives a report containing the results of an
evaluation of the Telecommuting Pilot Program and any
recommendations regarding whether the pilot program, with or
without modification, should be extended to include the
participation of all regions of the Administration.
(3) Termination.--The Telecommuting Pilot Program shall
terminate 4 years after the date on which funds are first
appropriated to carry out this subsection.
(4) Authorization of appropriations.--There is authorized
to be appropriated to the Administration $5,000,000 to carry
out this subsection.
(e) Encouraging Innovation in Energy Efficiency.--Section 9
of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(z) Encouraging Innovation in Energy Efficiency.--
``(1) Federal agency energy-related priority.--In carrying
out its duties under this section relating to SBIR and STTR
solicitations by Federal departments and agencies, the
Administrator shall--
``(A) ensure that such departments and agencies give high
priority to small business concerns that participate in or
conduct energy efficiency or renewable energy system research
and development projects; and
``(B) include in the annual report to Congress under
subsection (b)(7) a determination of whether the priority
described in subparagraph (A) is being carried out.
``(2) Consultation required.--The Administrator shall
consult with the heads of other Federal departments and
agencies in determining whether priority has been given to
small business concerns that participate in or conduct energy
efficiency or renewable energy system research and
development projects, as required by this subsection.
``(3) Guidelines.--The Administrator shall, as soon as is
practicable after the date of enactment of this subsection,
issue guidelines and directives to assist Federal agencies in
meeting the requirements of this subsection.
``(4) Definitions.--In this subsection--
``(A) the term `biomass'--
``(i) means any organic material that is available on a
renewable or recurring basis, including--
``(I) agricultural crops;
``(II) trees grown for energy production;
``(III) wood waste and wood residues;
``(IV) plants (including aquatic plants and grasses);
``(V) residues;
``(VI) fibers;
``(VII) animal wastes and other waste materials; and
``(VIII) fats, oils, and greases (including recycled fats,
oils, and greases); and
``(ii) does not include--
``(I) paper that is commonly recycled; or
``(II) unsegregated solid waste;
``(B) the term `energy efficiency project' means the
installation or upgrading of equipment that results in a
significant reduction in energy usage; and
``(C) the term `renewable energy system' means a system of
energy derived from--
``(i) a wind, solar, biomass (including biodiesel), or
geothermal source; or
``(ii) hydrogen derived from biomass or water using an
energy source described in clause (i).''.
SEC. 1204. LARGER 504 LOAN LIMITS TO HELP BUSINESS DEVELOP
ENERGY EFFICIENT TECHNOLOGIES AND PURCHASES.
(a) Eligibility for Energy Efficiency Projects.--Section
501(d)(3) of the Small Business Investment Act of 1958 (15
U.S.C. 695(d)(3)) is amended--
(1) in subparagraph (G) by striking ``or'' at the end;
(2) in subparagraph (H) by striking the period at the end
and inserting a comma;
(3) by inserting after subparagraph (H) the following:
``(I) reduction of energy consumption by at least 10
percent,
``(J) increased use of sustainable design, including
designs that reduce the use of greenhouse gas emitting fossil
fuels, or low-impact design to produce buildings that reduce
the use of non-renewable resources and minimize environmental
impact, or
``(K) plant, equipment and process upgrades of renewable
energy sources such as the small-scale production of energy
for individual buildings or communities consumption, commonly
known as micropower, or renewable fuels producers including
biodiesel and ethanol producers.''; and
(4) by adding at the end the following: ``In subparagraphs
(J) and (K), terms have the meanings given those terms under
the Leadership in Energy and Environmental Design (LEED)
standard for green building certification, as determined by
the Administrator.''.
(b) Loans for Plant Projects Used for Energy-Efficient
Purposes.--Section 502(2)(A) of the Small Business Investment
Act of 1958 (15 U.S.C. 696(2)(A)) is amended--
(1) in clause (ii) by striking ``and'' at the end;
(2) in clause (iii) by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(iv) $4,000,000 for each project that reduces the
borrower's energy consumption by at least 10 percent; and
``(v) $4,000,000 for each project that generates renewable
energy or renewable fuels, such as biodiesel or ethanol
production.''.
SEC. 1205. ENERGY SAVING DEBENTURES.
(a) In General.--Section 303 of the Small Business
Investment Act of 1958 (15 U.S.C. 683) is amended by adding
at the end the following:
``(k) Energy Saving Debentures.--In addition to any other
authority under this Act, a small business investment company
licensed in the first fiscal year after the date of enactment
of this subsection or any fiscal year thereafter may issue
Energy Saving debentures.''.
(b) Definitions.--Section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662) is amended--
(1) in paragraph (16), by striking ``and'' at the end;
(2) in paragraph (17), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(18) the term `Energy Saving debenture' means a deferred
interest debenture that--
``(A) is issued at a discount;
``(B) has a 5-year maturity or a 10-year maturity;
``(C) requires no interest payment or annual charge for the
first 5 years;
``(D) is restricted to Energy Saving qualified investments;
and
``(E) is issued at no cost (as defined in section 502 of
the Credit Reform Act of 1990) with respect to purchasing and
guaranteeing the debenture; and
``(19) the term `Energy Saving qualified investment' means
investment in a small business concern that is primarily
engaged in researching, manufacturing, developing, or
providing products, goods, or services that reduce the use or
consumption of non-renewable energy resources.''.
SEC. 1206. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.
(a) Maximum Leverage.--Section 303(b)(2) of the Small
Business Investment Act of 1958 (15 U.S.C. 303(b)(2)) is
amended by adding at the end the following:
``(D) Investments in energy saving small businesses.--
``(i) In general.--Subject to clause (ii), in calculating
the outstanding leverage of a company for purposes of
subparagraph (A), the Administrator shall exclude the amount
of the cost basis of any Energy Saving qualified investment
in a smaller enterprise made in the first fiscal year after
the date of enactment of this subparagraph or any fiscal year
thereafter by a company licensed in the applicable fiscal
year.
``(ii) Limitations.--
``(I) Amount of exclusion.--The amount excluded under
clause (i) for a company shall not exceed 33 percent of the
private capital of that company.
``(II) Maximum investment.--A company shall not make an
Energy Saving qualified investment in any one entity in an
amount equal to more than 20 percent of the private capital
of that company.
``(III) Other terms.--The exclusion of amounts under clause
(i) shall be subject to such terms as the Administrator may
impose to ensure that there is no cost (as that term is
defined in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a)) with respect to purchasing or
guaranteeing any debenture involved.''.
(b) Maximum Aggregate Amount of Leverage.--Section
303(b)(4) of the Small Business Investment Act of 1958 (15
U.S.C. 303(b)(4)) is amended by adding at the end the
following:
``(E) Investments in energy saving small businesses.--
``(i) In general.--Subject to clause (ii), in calculating
the aggregate outstanding leverage of a company for purposes
of subparagraph (A), the Administrator shall exclude the
amount of the cost basis of any Energy Saving qualified
investment in a smaller enterprise made in the first fiscal
year after the date of enactment of this subparagraph or any
fiscal year thereafter by a company licensed in the
applicable fiscal year.
``(ii) Limitations.--
``(I) Amount of exclusion.--The amount excluded under
clause (i) for a company shall not exceed 33 percent of the
private capital of that company.
``(II) Maximum investment.--A company shall not make an
Energy Saving qualified investment in any one entity in an
amount equal to more than 20 percent of the private capital
of that company.
``(III) Other terms.--The exclusion of amounts under clause
(i) shall be subject to such terms as the Administrator may
impose to ensure that there is no cost (as that term is
defined in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a)) with respect to purchasing or
guaranteeing any debenture involved.''.
SEC. 1207. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.
Title III of the Small Business Investment Act of 1958 (15
U.S.C. 681 et seq.) is amended by adding at the end the
following:
``PART C--RENEWABLE FUEL CAPITAL INVESTMENT PILOT PROGRAM
``SEC. 381. DEFINITIONS.
``In this part:
``(1) Operational assistance.--The term `operational
assistance' means management, marketing, and other technical
assistance that assists a small business concern with
business development.
[[Page H14394]]
``(2) Participation agreement.--The term `participation
agreement' means an agreement, between the Administrator and
a company granted final approval under section 384(e), that--
``(A) details the operating plan and investment criteria of
the company; and
``(B) requires the company to make investments in smaller
enterprises primarily engaged in researching, manufacturing,
developing, producing, or bringing to market goods, products,
or services that generate or support the production of
renewable energy.
``(3) Renewable energy.--The term `renewable energy' means
energy derived from resources that are regenerative or that
cannot be depleted, including solar, wind, ethanol, and
biodiesel fuels.
``(4) Renewable fuel capital investment company.--The term
`Renewable Fuel Capital Investment company' means a company--
``(A) that--
``(i) has been granted final approval by the Administrator
under section 384(e); and
``(ii) has entered into a participation agreement with the
Administrator; or
``(B) that has received conditional approval under section
384(c).
``(5) State.--The term `State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and any other
commonwealth, territory, or possession of the United States.
``(6) Venture capital.--The term `venture capital' means
capital in the form of equity capital investments, as that
term is defined in section 303(g)(4).
``SEC. 382. PURPOSES.
``The purposes of the Renewable Fuel Capital Investment
Program established under this part are--
``(1) to promote the research, development, manufacture,
production, and bringing to market of goods, products, or
services that generate or support the production of renewable
energy by encouraging venture capital investments in smaller
enterprises primarily engaged such activities; and
``(2) to establish a venture capital program, with the
mission of addressing the unmet equity investment needs of
smaller enterprises engaged in researching, developing,
manufacturing, producing, and bringing to market goods,
products, or services that generate or support the production
of renewable energy, to be administered by the
Administrator--
``(A) to enter into participation agreements with Renewable
Fuel Capital Investment companies;
``(B) to guarantee debentures of Renewable Fuel Capital
Investment companies to enable each such company to make
venture capital investments in smaller enterprises engaged in
the research, development, manufacture, production, and
bringing to market of goods, products, or services that
generate or support the production of renewable energy; and
``(C) to make grants to Renewable Fuel Investment Capital
companies, and to other entities, for the purpose of
providing operational assistance to smaller enterprises
financed, or expected to be financed, by such companies.
``SEC. 383. ESTABLISHMENT.
``The Administrator shall establish a Renewable Fuel
Capital Investment Program, under which the Administrator
may--
``(1) enter into participation agreements for the purposes
described in section 382; and
``(2) guarantee the debentures issued by Renewable Fuel
Capital Investment companies as provided in section 385.
``SEC. 384. SELECTION OF RENEWABLE FUEL CAPITAL INVESTMENT
COMPANIES.
``(a) Eligibility.--A company is eligible to apply to be
designated as a Renewable Fuel Capital Investment company if
the company--
``(1) is a newly formed for-profit entity or a newly formed
for-profit subsidiary of an existing entity;
``(2) has a management team with experience in alternative
energy financing or relevant venture capital financing; and
``(3) has a primary objective of investment in smaller
enterprises that research, manufacture, develop, produce, or
bring to market goods, products, or services that generate or
support the production of renewable energy.
``(b) Application.--A company desiring to be designated as
a Renewable Fuel Capital Investment company shall submit an
application to the Administrator that includes--
``(1) a business plan describing how the company intends to
make successful venture capital investments in smaller
enterprises primarily engaged in the research, manufacture,
development, production, or bringing to market of goods,
products, or services that generate or support the production
of renewable energy;
``(2) information regarding the relevant venture capital
qualifications and general reputation of the management of
the company;
``(3) a description of how the company intends to seek to
address the unmet capital needs of the smaller enterprises
served;
``(4) a proposal describing how the company intends to use
the grant funds provided under this part to provide
operational assistance to smaller enterprises financed by the
company, including information regarding whether the company
has employees with appropriate professional licenses or will
contract with another entity when the services of such an
individual are necessary;
``(5) with respect to binding commitments to be made to the
company under this part, an estimate of the ratio of cash to
in-kind contributions;
``(6) a description of whether and to what extent the
company meets the criteria under subsection (c)(2) and the
objectives of the program established under this part;
``(7) information regarding the management and financial
strength of any parent firm, affiliated firm, or any other
firm essential to the success of the business plan of the
company; and
``(8) such other information as the Administrator may
require.
``(c) Conditional Approval.--
``(1) In general.--From among companies submitting
applications under subsection (b), the Administrator shall
conditionally approve companies to operate as Renewable Fuel
Capital Investment companies.
``(2) Selection criteria.--In conditionally approving
companies under paragraph (1), the Administrator shall
consider--
``(A) the likelihood that the company will meet the goal of
its business plan;
``(B) the experience and background of the management team
of the company;
``(C) the need for venture capital investments in the
geographic areas in which the company intends to invest;
``(D) the extent to which the company will concentrate its
activities on serving the geographic areas in which it
intends to invest;
``(E) the likelihood that the company will be able to
satisfy the conditions under subsection (d);
``(F) the extent to which the activities proposed by the
company will expand economic opportunities in the geographic
areas in which the company intends to invest;
``(G) the strength of the proposal by the company to
provide operational assistance under this part as the
proposal relates to the ability of the company to meet
applicable cash requirements and properly use in-kind
contributions, including the use of resources for the
services of licensed professionals, when necessary, whether
provided by employees or contractors; and
``(H) any other factor determined appropriate by the
Administrator.
``(3) Nationwide distribution.--From among companies
submitting applications under subsection (b), the
Administrator shall consider the selection criteria under
paragraph (2) and shall, to the maximum extent practicable,
approve at least one company from each geographic region of
the Administration.
``(d) Requirements To Be Met for Final Approval.--
``(1) In general.--The Administrator shall grant each
conditionally approved company 2 years to satisfy the
requirements of this subsection.
``(2) Capital requirement.--Each conditionally approved
company shall raise not less than $3,000,000 of private
capital or binding capital commitments from 1 or more
investors (which shall not be departments or agencies of the
Federal Government) who meet criteria established by the
Administrator.
``(3) Nonadministration resources for operational
assistance.--
``(A) In general.--In order to provide operational
assistance to smaller enterprises expected to be financed by
the company, each conditionally approved company shall have
binding commitments (for contribution in cash or in-kind)--
``(i) from sources other than the Administration that meet
criteria established by the Administrator; and
``(ii) payable or available over a multiyear period
determined appropriate by the Administrator (not to exceed 10
years).
``(B) Exception.--The Administrator may, in the discretion
of the Administrator and based upon a showing of special
circumstances and good cause, consider an applicant to have
satisfied the requirements of subparagraph (A) if the
applicant has--
``(i) a viable plan that reasonably projects the capacity
of the applicant to raise the amount (in cash or in-kind)
required under subparagraph (A); and
``(ii) binding commitments in an amount equal to not less
than 20 percent of the total amount required under paragraph
(A).
``(C) Limitation.--The total amount of a in-kind
contributions by a company shall be not more than 50 percent
of the total contributions by a company.
``(e) Final Approval; Designation.--The Administrator
shall, with respect to each applicant conditionally approved
under subsection (c)--
``(1) grant final approval to the applicant to operate as a
Renewable Fuel Capital Investment company under this part and
designate the applicant as such a company, if the applicant--
``(A) satisfies the requirements of subsection (d) on or
before the expiration of the time period described in that
subsection; and
``(B) enters into a participation agreement with the
Administrator; or
``(2) if the applicant fails to satisfy the requirements of
subsection (d) on or before the expiration of the time period
described in paragraph (1) of that subsection, revoke the
conditional approval granted under that subsection.
``SEC. 385. DEBENTURES.
``(a) In General.--The Administrator may guarantee the
timely payment of principal and interest, as scheduled, on
debentures issued by any Renewable Fuel Capital Investment
company.
[[Page H14395]]
``(b) Terms and Conditions.--The Administrator may make
guarantees under this section on such terms and conditions as
it determines appropriate, except that--
``(1) the term of any debenture guaranteed under this
section shall not exceed 15 years; and
``(2) a debenture guaranteed under this section--
``(A) shall carry no front-end or annual fees;
``(B) shall be issued at a discount;
``(C) shall require no interest payments during the 5-year
period beginning on the date the debenture is issued;
``(D) shall be prepayable without penalty after the end of
the 1-year period beginning on the date the debenture is
issued; and
``(E) shall require semiannual interest payments after the
period described in subparagraph (C).
``(c) Full Faith and Credit of the United States.--The full
faith and credit of the United States is pledged to pay all
amounts that may be required to be paid under any guarantee
under this part.
``(d) Maximum Guarantee.--
``(1) In general.--Under this section, the Administrator
may guarantee the debentures issued by a Renewable Fuel
Capital Investment company only to the extent that the total
face amount of outstanding guaranteed debentures of such
company does not exceed 150 percent of the private capital of
the company, as determined by the Administrator.
``(2) Treatment of certain federal funds.--For the purposes
of paragraph (1), private capital shall include capital that
is considered to be Federal funds, if such capital is
contributed by an investor other than a department or agency
of the Federal Government.
``SEC. 386. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.
``(a) Issuance.--The Administrator may issue trust
certificates representing ownership of all or a fractional
part of debentures issued by a Renewable Fuel Capital
Investment company and guaranteed by the Administrator under
this part, if such certificates are based on and backed by a
trust or pool approved by the Administrator and composed
solely of guaranteed debentures.
``(b) Guarantee.--
``(1) In general.--The Administrator may, under such terms
and conditions as it determines appropriate, guarantee the
timely payment of the principal of and interest on trust
certificates issued by the Administrator or its agents for
purposes of this section.
``(2) Limitation.--Each guarantee under this subsection
shall be limited to the extent of principal and interest on
the guaranteed debentures that compose the trust or pool.
``(3) Prepayment or default.--If a debenture in a trust or
pool is prepaid, or in the event of default of such a
debenture, the guarantee of timely payment of principal and
interest on the trust certificates shall be reduced in
proportion to the amount of principal and interest such
prepaid debenture represents in the trust or pool. Interest
on prepaid or defaulted debentures shall accrue and be
guaranteed by the Administrator only through the date of
payment of the guarantee. At any time during its term, a
trust certificate may be called for redemption due to
prepayment or default of all debentures.
``(c) Full Faith and Credit of the United States.--The full
faith and credit of the United States is pledged to pay all
amounts that may be required to be paid under any guarantee
of a trust certificate issued by the Administrator or its
agents under this section.
``(d) Fees.--The Administrator shall not collect a fee for
any guarantee of a trust certificate under this section, but
any agent of the Administrator may collect a fee approved by
the Administrator for the functions described in subsection
(f)(2).
``(e) Subrogation and Ownership Rights.--
``(1) Subrogation.--If the Administrator pays a claim under
a guarantee issued under this section, it shall be subrogated
fully to the rights satisfied by such payment.
``(2) Ownership rights.--No Federal, State, or local law
shall preclude or limit the exercise by the Administrator of
its ownership rights in the debentures residing in a trust or
pool against which trust certificates are issued under this
section.
``(f) Management and Administration.--
``(1) Registration.--The Administrator may provide for a
central registration of all trust certificates issued under
this section.
``(2) Contracting of functions.--
``(A) In general.--The Administrator may contract with an
agent or agents to carry out on behalf of the Administrator
the pooling and the central registration functions provided
for in this section, including, not withstanding any other
provision of law--
``(i) maintenance, on behalf of and under the direction of
the Administrator, of such commercial bank accounts or
investments in obligations of the United States as may be
necessary to facilitate the creation of trusts or pools
backed by debentures guaranteed under this part; and
``(ii) the issuance of trust certificates to facilitate the
creation of such trusts or pools.
``(B) Fidelity bond or insurance requirement.--Any agent
performing functions on behalf of the Administrator under
this paragraph shall provide a fidelity bond or insurance in
such amounts as the Administrator determines to be necessary
to fully protect the interests of the United States.
``(3) Regulation of brokers and dealers.--The Administrator
may regulate brokers and dealers in trust certificates issued
under this section.
``(4) Electronic registration.--Nothing in this subsection
may be construed to prohibit the use of a book-entry or other
electronic form of registration for trust certificates issued
under this section.
``SEC. 387. FEES.
``(a) In General.--Except as provided in section 386(d),
the Administrator may charge such fees as it determines
appropriate with respect to any guarantee or grant issued
under this part, in an amount established annually by the
Administrator, as necessary to reduce to zero the cost (as
defined in section 502 of the Federal Credit Reform Act of
1990) to the Administration of purchasing and guaranteeing
debentures under this part, which amounts shall be paid to
and retained by the Administration.
``(b) Offset.--The Administrator may, as provided by
section 388, offset fees charged and collected under
subsection (a).
``SEC. 388. FEE CONTRIBUTION.
``(a) In General.--To the extent that amounts are made
available to the Administrator for the purpose of fee
contributions, the Administrator shall contribute to fees
paid by the Renewable Fuel Capital Investment companies under
section 387.
``(b) Annual Adjustment.--Each fee contribution under
subsection (a) shall be effective for 1 fiscal year and shall
be adjusted as necessary for each fiscal year thereafter to
ensure that amounts under subsection (a) are fully used. The
fee contribution for a fiscal year shall be based on the
outstanding commitments made and the guarantees and grants
that the Administrator projects will be made during that
fiscal year, given the program level authorized by law for
that fiscal year and any other factors that the Administrator
determines appropriate.
``SEC. 389. OPERATIONAL ASSISTANCE GRANTS.
``(a) In General.--
``(1) Authority.--The Administrator may make grants to
Renewable Fuel Capital Investment companies to provide
operational assistance to smaller enterprises financed, or
expected to be financed, by such companies or other entities.
``(2) Terms.--A grant under this subsection shall be made
over a multiyear period not to exceed 10 years, under such
other terms as the Administrator may require.
``(3) Grant amount.--The amount of a grant made under this
subsection to a Renewable Fuel Capital Investment company
shall be equal to the lesser of--
``(A) 10 percent of the resources (in cash or in kind)
raised by the company under section 384(d)(2); or
``(B) $1,000,000.
``(4) Pro rata reductions.--If the amount made available to
carry out this section is insufficient for the Administrator
to provide grants in the amounts provided for in paragraph
(3), the Administrator shall make pro rata reductions in the
amounts otherwise payable to each company and entity under
such paragraph.
``(5) Grants to conditionally approved companies.--
``(A) In general.--Subject to subparagraphs (B) and (C),
upon the request of a company conditionally approved under
section 384(c), the Administrator shall make a grant to the
company under this subsection.
``(B) Repayment by companies not approved.--If a company
receives a grant under this paragraph and does not enter into
a participation agreement for final approval, the company
shall, subject to controlling Federal law, repay the amount
of the grant to the Administrator.
``(C) Deduction of grant to approved company.--If a company
receives a grant under this paragraph and receives final
approval under section 384(e), the Administrator shall deduct
the amount of the grant from the total grant amount the
company receives for operational assistance.
``(D) Amount of grant.--No company may receive a grant of
more than $100,000 under this paragraph.
``(b) Supplemental Grants.--
``(1) In general.--The Administrator may make supplemental
grants to Renewable Fuel Capital Investment companies and to
other entities, as authorized by this part, under such terms
as the Administrator may require, to provide additional
operational assistance to smaller enterprises financed, or
expected to be financed, by the companies.
``(2) Matching requirement.--The Administrator may require,
as a condition of any supplemental grant made under this
subsection, that the company or entity receiving the grant
provide from resources (in a cash or in kind), other then
those provided by the Administrator, a matching contribution
equal to the amount of the supplemental grant.
``(c) Limitation.--None of the assistance made available
under this section may be used for any overhead or general
and administrative expense of a Renewable Fuel Capital
Investment company.
``SEC. 390. BANK PARTICIPATION.
``(a) In General.--Except as provided in subsection (b),
any national bank, any member bank of the Federal Reserve
System, and (to the extent permitted under applicable State
law) any insured bank that is not a member of such system,
may invest in any Renewable Fuel Capital Investment company,
or in any entity established to invest solely in Renewable
Fuel Capital Investment companies.
[[Page H14396]]
``(b) Limitation.--No bank described in subsection (a) may
make investments described in such subsection that are
greater than 5 percent of the capital and surplus of the
bank.
``SEC. 391. FEDERAL FINANCING BANK.
``Notwithstanding section 318, the Federal Financing Bank
may acquire a debenture issued by a Renewable Fuel Capital
Investment company under this part.
``SEC. 392. REPORTING REQUIREMENT.
``Each Renewable Fuel Capital Investment company that
participates in the program established under this part shall
provide to the Administrator such information as the
Administrator may require, including--
``(1) information related to the measurement criteria that
the company proposed in its program application; and
``(2) in each case in which the company makes, under this
part, an investment in, or a loan or a grant to, a business
that is not primarily engaged in the research, development,
manufacture, or bringing to market or renewable energy
sources, a report on the nature, origin, and revenues of the
business in which investments are made.
``SEC. 393. EXAMINATIONS.
``(a) In General.--Each Renewable Fuel Capital Investment
company that participates in the program established under
this part shall be subject to examinations made at the
direction of the Investment Division of the Administration in
accordance with this section.
``(b) Assistance of Private Sector Entities.--Examinations
under this section may be conducted with the assistance of a
private sector entity that has both the qualifications and
the expertise necessary to conduct such examinations.
``(c) Costs.--
``(1) Assessment.--
``(A) In general.--The Administrator may assess the cost of
examinations under this section, including compensation of
the examiners, against the company examined.
``(B) Payment.--Any company against which the Administrator
assesses costs under this paragraph shall pay such costs.
``(2) Deposit of funds.--Funds collected under this section
shall be deposited in the account for salaries and expenses
of the Administration.
``SEC. 394. MISCELLANEOUS.
``To the extent such procedures are not inconsistent with
the requirements of this part, the Administrator may take
such action as set forth in sections 309, 311, 312, and 314
and an officer, director, employee, agent, or other
participant in the management or conduct of the affairs of a
Renewable Fuel Capital Investment company shall be subject to
the requirements of such sections.
``SEC. 395. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.
``Using the procedures for removing or suspending a
director or an officer of a licensee set forth in section 313
(to the extent such procedures are not inconsistent with the
requirements of this part), the Administrator may remove or
suspend any director or officer of any Renewable Fuel Capital
Investment company.
``SEC. 396. REGULATIONS.
``The Administrator may issue such regulations as the
Administrator determines necessary to carry out the
provisions of this part in accordance with its purposes.
``SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS.
``(a) In General.--Subject to the availability of
appropriations, the Administrator is authorized to make
$15,000,000 in operational assistance grants under section
389 for each of fiscal years 2008 and 2009.
``(b) Funds Collected for Examinations.--Funds deposited
under section 393(c)(2) are authorized to be appropriated
only for the costs of examinations under section 393 and for
the costs of other oversight activities with respect to the
program established under this part.
``SEC. 398. TERMINATION.
``The program under this part shall terminate at the end of
the second full fiscal year after the date that the
Administrator establishes the program under this part.''.
SEC. 1208. STUDY AND REPORT.
The Administrator of the Small Business Administration
shall conduct a study of the Renewable Fuel Capital
Investment Program under part C of title III of the Small
Business Investment Act of 1958, as added by this Act. Not
later than 3 years after the date of enactment of this Act,
the Administrator shall complete the study under this section
and submit to Congress a report regarding the results of the
study.
TITLE XIII--SMART GRID
SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF
ELECTRICITY GRID.
It is the policy of the United States to support the
modernization of the Nation's electricity transmission and
distribution system to maintain a reliable and secure
electricity infrastructure that can meet future demand growth
and to achieve each of the following, which together
characterize a Smart Grid:
(1) Increased use of digital information and controls
technology to improve reliability, security, and efficiency
of the electric grid.
(2) Dynamic optimization of grid operations and resources,
with full cyber-security.
(3) Deployment and integration of distributed resources and
generation, including renewable resources.
(4) Development and incorporation of demand response,
demand-side resources, and energy-efficiency resources.
(5) Deployment of ``smart'' technologies (real-time,
automated, interactive technologies that optimize the
physical operation of appliances and consumer devices) for
metering, communications concerning grid operations and
status, and distribution automation.
(6) Integration of ``smart'' appliances and consumer
devices.
(7) Deployment and integration of advanced electricity
storage and peak-shaving technologies, including plug-in
electric and hybrid electric vehicles, and thermal-storage
air conditioning.
(8) Provision to consumers of timely information and
control options.
(9) Development of standards for communication and
interoperability of appliances and equipment connected to the
electric grid, including the infrastructure serving the grid.
(10) Identification and lowering of unreasonable or
unnecessary barriers to adoption of smart grid technologies,
practices, and services.
SEC. 1302. SMART GRID SYSTEM REPORT.
The Secretary, acting through the Assistant Secretary of
the Office of Electricity Delivery and Energy Reliability
(referred to in this section as the ``OEDER'') and through
the Smart Grid Task Force established in section 1303, shall,
after consulting with any interested individual or entity as
appropriate, no later than one year after enactment, and
every two years thereafter, report to Congress concerning the
status of smart grid deployments nationwide and any
regulatory or government barriers to continued deployment.
The report shall provide the current status and prospects of
smart grid development, including information on technology
penetration, communications network capabilities, costs, and
obstacles. It may include recommendations for State and
Federal policies or actions helpful to facilitate the
transition to a smart grid. To the extent appropriate, it
should take a regional perspective. In preparing this report,
the Secretary shall solicit advice and contributions from the
Smart Grid Advisory Committee created in section 1303; from
other involved Federal agencies including but not limited to
the Federal Energy Regulatory Commission (``Commission''),
the National Institute of Standards and Technology
(``Institute''), and the Department of Homeland Security; and
from other stakeholder groups not already represented on the
Smart Grid Advisory Committee.
SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART GRID TASK
FORCE.
(a) Smart Grid Advisory Committee.--
(1) Establishment.--The Secretary shall establish, within
90 days of enactment of this Part, a Smart Grid Advisory
Committee (either as an independent entity or as a designated
sub-part of a larger advisory committee on electricity
matters). The Smart Grid Advisory Committee shall include
eight or more members appointed by the Secretary who have
sufficient experience and expertise to represent the full
range of smart grid technologies and services, to represent
both private and non-Federal public sector stakeholders. One
member shall be appointed by the Secretary to Chair the Smart
Grid Advisory Committee.
(2) Mission.--The mission of the Smart Grid Advisory
Committee shall be to advise the Secretary, the Assistant
Secretary, and other relevant Federal officials concerning
the development of smart grid technologies, the progress of a
national transition to the use of smart-grid technologies and
services, the evolution of widely-accepted technical and
practical standards and protocols to allow interoperability
and inter-communication among smart-grid capable devices, and
the optimum means of using Federal incentive authority to
encourage such progress.
(3) Applicability of federal advisory committee act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall apply to
the Smart Grid Advisory Committee.
(b) Smart Grid Task Force.--
(1) Establishment.--The Assistant Secretary of the Office
of Electricity Delivery and Energy Reliability shall
establish, within 90 days of enactment of this Part, a Smart
Grid Task Force composed of designated employees from the
various divisions of that office who have responsibilities
related to the transition to smart-grid technologies and
practices. The Assistant Secretary or his designee shall be
identified as the Director of the Smart Grid Task Force. The
Chairman of the Federal Energy Regulatory Commission and the
Director of the National Institute of Standards and
Technology shall each designate at least one employee to
participate on the Smart Grid Task Force. Other members may
come from other agencies at the invitation of the Assistant
Secretary or the nomination of the head of such other agency.
The Smart Grid Task Force shall, without disrupting the work
of the Divisions or Offices from which its members are drawn,
provide an identifiable Federal entity to embody the Federal
role in the national transition toward development and use of
smart grid technologies.
(2) Mission.--The mission of the Smart Grid Task Force
shall be to insure awareness, coordination and integration of
the diverse activities of the Office and elsewhere in the
Federal government related to smart-grid technologies and
practices, including but not limited to: smart grid research
and
[[Page H14397]]
development; development of widely accepted smart-grid
standards and protocols; the relationship of smart-grid
technologies and practices to electric utility regulation;
the relationship of smart-grid technologies and practices to
infrastructure development, system reliability and security;
and the relationship of smart-grid technologies and practices
to other facets of electricity supply, demand, transmission,
distribution, and policy. The Smart Grid Task Force shall
collaborate with the Smart Grid Advisory Committee and other
Federal agencies and offices. The Smart Grid Task Force shall
meet at the call of its Director as necessary to accomplish
its mission.
(c) Authorization.--There are authorized to be appropriated
for the purposes of this section such sums as are necessary
to the Secretary to support the operations of the Smart Grid
Advisory Committee and Smart Grid Task Force for each of
fiscal years 2008 through 2020.
SEC. 1304. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION.
(a) Power Grid Digital Information Technology.--The
Secretary, in consultation with the Federal Energy Regulatory
Commission and other appropriate agencies, electric
utilities, the States, and other stakeholders, shall carry
out a program--
(1) to develop advanced techniques for measuring peak load
reductions and energy-efficiency savings from smart metering,
demand response, distributed generation, and electricity
storage systems;
(2) to investigate means for demand response, distributed
generation, and storage to provide ancillary services;
(3) to conduct research to advance the use of wide-area
measurement and control networks, including data mining,
visualization, advanced computing, and secure and dependable
communications in a highly-distributed environment;
(4) to test new reliability technologies, including those
concerning communications network capabilities, in a grid
control room environment against a representative set of
local outage and wide area blackout scenarios;
(5) to identify communications network capacity needed to
implement advanced technologies.
(6) to investigate the feasibility of a transition to time-
of-use and real-time electricity pricing;
(7) to develop algorithms for use in electric transmission
system software applications;
(8) to promote the use of underutilized electricity
generation capacity in any substitution of electricity for
liquid fuels in the transportation system of the United
States; and
(9) in consultation with the Federal Energy Regulatory
Commission, to propose interconnection protocols to enable
electric utilities to access electricity stored in vehicles
to help meet peak demand loads.
(b) Smart Grid Regional Demonstration Initiative.--
(1) In general.--The Secretary shall establish a smart grid
regional demonstration initiative (referred to in this
subsection as the ``Initiative'') composed of demonstration
projects specifically focused on advanced technologies for
use in power grid sensing, communications, analysis, and
power flow control. The Secretary shall seek to leverage
existing smart grid deployments.
(2) Goals.--The goals of the Initiative shall be--
(A) to demonstrate the potential benefits of concentrated
investments in advanced grid technologies on a regional grid;
(B) to facilitate the commercial transition from the
current power transmission and distribution system
technologies to advanced technologies;
(C) to facilitate the integration of advanced technologies
in existing electric networks to improve system performance,
power flow control, and reliability;
(D) to demonstrate protocols and standards that allow for
the measurement and validation of the energy savings and
fossil fuel emission reductions associated with the
installation and use of energy efficiency and demand response
technologies and practices; and
(E) to investigate differences in each region and
regulatory environment regarding best practices in
implementing smart grid technologies.
(3) Demonstration projects.--
(A) In general.--In carrying out the initiative, the
Secretary shall carry out smart grid demonstration projects
in up to 5 electricity control areas, including rural areas
and at least 1 area in which the majority of generation and
transmission assets are controlled by a tax-exempt entity.
(B) Cooperation.--A demonstration project under
subparagraph (A) shall be carried out in cooperation with the
electric utility that owns the grid facilities in the
electricity control area in which the demonstration project
is carried out.
(C) Federal share of cost of technology investments.--The
Secretary shall provide to an electric utility described in
subparagraph (B) financial assistance for use in paying an
amount equal to not more than 50 percent of the cost of
qualifying advanced grid technology investments made by the
electric utility to carry out a demonstration project.
(D) Ineligibility for grants.--No person or entity
participating in any demonstration project conducted under
this subsection shall be eligible for grants under section
1306 for otherwise qualifying investments made as part of
that demonstration project.
(c) Authorization of Appropriations.--There are authorized
to be appropriated--
(1) to carry out subsection (a), such sums as are necessary
for each of fiscal years 2008 through 2012; and
(2) to carry out subsection (b), $100,000,000 for each of
fiscal years 2008 through 2012.
SEC. 1305. SMART GRID INTEROPERABILITY FRAMEWORK.
(a) Interoperability Framework.--The Director of the
National Institute of Standards and Technology shall have
primary responsibility to coordinate the development of a
framework that includes protocols and model standards for
information management to achieve interoperability of smart
grid devices and systems. Such protocols and standards shall
further align policy, business, and technology approaches in
a manner that would enable all electric resources, including
demand-side resources, to contribute to an efficient,
reliable electricity network. In developing such protocols
and standards--
(1) the Director shall seek input and cooperation from the
Commission, OEDER and its Smart Grid Task Force, the Smart
Grid Advisory Committee, other relevant Federal and State
agencies; and
(2) the Director shall also solicit input and cooperation
from private entities interested in such protocols and
standards, including but not limited to the Gridwise
Architecture Council, the International Electrical and
Electronics Engineers, the National Electric Reliability
Organization recognized by the Federal Energy Regulatory
Commission, and National Electrical Manufacturer's
Association.
(b) Scope of Framework.--The framework developed under
subsection (a) shall be flexible, uniform and technology
neutral, including but not limited to technologies for
managing smart grid information, and designed--
(1) to accommodate traditional, centralized generation and
transmission resources and consumer distributed resources,
including distributed generation, renewable generation,
energy storage, energy efficiency, and demand response and
enabling devices and systems;
(2) to be flexible to incorporate--
(A) regional and organizational differences; and
(B) technological innovations;
(3) to consider the use of voluntary uniform standards for
certain classes of mass-produced electric appliances and
equipment for homes and businesses that enable customers, at
their election and consistent with applicable State and
Federal laws, and are manufactured with the ability to
respond to electric grid emergencies and demand response
signals by curtailing all, or a portion of, the electrical
power consumed by the appliances or equipment in response to
an emergency or demand response signal, including through--
(A) load reduction to reduce total electrical demand;
(B) adjustment of load to provide grid ancillary services;
and
(C) in the event of a reliability crisis that threatens an
outage, short-term load shedding to help preserve the
stability of the grid; and
(4) such voluntary standards should incorporate appropriate
manufacturer lead time.
(c) Timing of Framework Development.--The Institute shall
begin work pursuant to this section within 60 days of
enactment. The Institute shall provide and publish an initial
report on progress toward recommended or consensus standards
and protocols within one year after enactment, further
reports at such times as developments warrant in the judgment
of the Institute, and a final report when the Institute
determines that the work is completed or that a Federal role
is no longer necessary.
(d) Standards for Interoperability in Federal
Jurisdiction.--At any time after the Institute's work has led
to sufficient consensus in the Commission's judgment, the
Commission shall institute a rulemaking proceeding to adopt
such standards and protocols as may be necessary to insure
smart-grid functionality and interoperability in interstate
transmission of electric power, and regional and wholesale
electricity markets.
(e) Authorization.--There are authorized to be appropriated
for the purposes of this section $5,000,000 to the Institute
to support the activities required by this subsection for
each of fiscal years 2008 through 2012.
SEC. 1306. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT
COSTS.
(a) Matching Fund.--The Secretary shall establish a Smart
Grid Investment Matching Grant Program to provide
reimbursement of one-fifth (20 percent) of qualifying Smart
Grid investments.
(b) Qualifying Investments.--Qualifying Smart Grid
investments may include any of the following made on or after
the date of enactment of this Act:
(1) In the case of appliances covered for purposes of
establishing energy conservation standards under part B of
title III of the Energy Policy and Conservation Act of 1975
(42 U.S.C. 6291 et seq.), the documented expenditures
incurred by a manufacturer of such appliances associated with
purchasing or designing, creating the ability to manufacture,
and manufacturing and installing for one calendar year,
internal devices that allow the appliance to engage in Smart
Grid functions.
[[Page H14398]]
(2) In the case of specialized electricity-using equipment,
including motors and drivers, installed in industrial or
commercial applications, the documented expenditures incurred
by its owner or its manufacturer of installing devices or
modifying that equipment to engage in Smart Grid functions.
(3) In the case of transmission and distribution equipment
fitted with monitoring and communications devices to enable
smart grid functions, the documented expenditures incurred by
the electric utility to purchase and install such monitoring
and communications devices.
(4) In the case of metering devices, sensors, control
devices, and other devices integrated with and attached to an
electric utility system or retail distributor or marketer of
electricity that are capable of engaging in Smart Grid
functions, the documented expenditures incurred by the
electric utility, distributor, or marketer and its customers
to purchase and install such devices.
(5) In the case of software that enables devices or
computers to engage in Smart Grid functions, the documented
purchase costs of the software.
(6) In the case of entities that operate or coordinate
operations of regional electric grids, the documented
expenditures for purchasing and installing such equipment
that allows Smart Grid functions to operate and be combined
or coordinated among multiple electric utilities and between
that region and other regions.
(7) In the case of persons or entities other than electric
utilities owning and operating a distributed electricity
generator, the documented expenditures of enabling that
generator to be monitored, controlled, or otherwise
integrated into grid operations and electricity flows on the
grid utilizing Smart Grid functions.
(8) In the case of electric or hybrid-electric vehicles,
the documented expenses for devices that allow the vehicle to
engage in Smart Grid functions (but not the costs of
electricity storage for the vehicle).
(9) The documented expenditures related to purchasing and
implementing Smart Grid functions in such other cases as the
Secretary shall identify. In making such grants, the
Secretary shall seek to reward innovation and early
adaptation, even if success is not complete, rather than
deployment of proven and commercially viable technologies.
(c) Investments Not Included.--Qualifying Smart Grid
investments do not include any of the following:
(1) Investments or expenditures for Smart Grid
technologies, devices, or equipment that are eligible for
specific tax credits or deductions under the Internal Revenue
Code, as amended.
(2) Expenditures for electricity generation, transmission,
or distribution infrastructure or equipment not directly
related to enabling Smart Grid functions.
(3) After the final date for State consideration of the
Smart Grid Information Standard under section 1307 (paragraph
(17) of section 111(d) of the Public Utility Regulatory
Policies Act of 1978), an investment that is not in
compliance with such standard.
(4) After the development and publication by the Institute
of protocols and model standards for interoperability of
smart grid devices and technologies, an investment that fails
to incorporate any of such protocols or model standards.
(5) Expenditures for physical interconnection of generators
or other devices to the grid except those that are directly
related to enabling Smart Grid functions.
(6) Expenditures for ongoing salaries, benefits, or
personnel costs not incurred in the initial installation,
training, or start up of smart grid functions.
(7) Expenditures for travel, lodging, meals or other
personal costs.
(8) Ongoing or routine operation, billing, customer
relations, security, and maintenance expenditures.
(9) Such other expenditures that the Secretary determines
not to be Qualifying Smart Grid Investments by reason of the
lack of the ability to perform Smart Grid functions or lack
of direct relationship to Smart Grid functions.
(d) Smart Grid Functions.--The term ``smart grid
functions'' means any of the following:
(1) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time
of use, nature of use, storage, or other information relevant
to device, grid, or utility operations, to or from or by
means of the electric utility system, through one or a
combination of devices and technologies.
(2) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time
of use, nature of use, storage, or other information relevant
to device, grid, or utility operations to or from a computer
or other control device.
(3) The ability to measure or monitor electricity use as a
function of time of day, power quality characteristics such
as voltage level, current, cycles per second, or source or
type of generation and to store, synthesize or report that
information by digital means.
(4) The ability to sense and localize disruptions or
changes in power flows on the grid and communicate such
information instantaneously and automatically for purposes of
enabling automatic protective responses to sustain
reliability and security of grid operations.
(5) The ability to detect, prevent, communicate with regard
to, respond to, or recover from system security threats,
including cyber-security threats and terrorism, using digital
information, media, and devices.
(6) The ability of any appliance or machine to respond to
such signals, measurements, or communications automatically
or in a manner programmed by its owner or operator without
independent human intervention.
(7) The ability to use digital information to operate
functionalities on the electric utility grid that were
previously electro-mechanical or manual.
(8) The ability to use digital controls to manage and
modify electricity demand, enable congestion management,
assist in voltage control, provide operating reserves, and
provide frequency regulation.
(9) Such other functions as the Secretary may identify as
being necessary or useful to the operation of a Smart Grid.
(e) The Secretary shall--
(1) establish and publish in the Federal Register, within
one year after the enactment of this Act procedures by which
applicants who have made qualifying Smart Grid investments
can seek and obtain reimbursement of one-fifth of their
documented expenditures;
(2) establish procedures to ensure that there is no
duplication or multiple reimbursement for the same investment
or costs, that the reimbursement goes to the party making the
actual expenditures for Qualifying Smart Grid Investments,
and that the grants made have significant effect in
encouraging and facilitating the development of a smart grid;
(3) maintain public records of reimbursements made,
recipients, and qualifying Smart Grid investments which have
received reimbursements;
(4) establish procedures to provide, in cases deemed by the
Secretary to be warranted, advance payment of moneys up to
the full amount of the projected eventual reimbursement, to
creditworthy applicants whose ability to make Qualifying
Smart Grid Investments may be hindered by lack of initial
capital, in lieu of any later reimbursement for which that
applicant qualifies, and subject to full return of the
advance payment in the event that the Qualifying Smart Grid
investment is not made; and
(5) have and exercise the discretion to deny grants for
investments that do not qualify in the reasonable judgment of
the Secretary.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as are
necessary for the administration of this section and the
grants to be made pursuant to this section for fiscal years
2008 through 2012.
SEC. 1307. STATE CONSIDERATION OF SMART GRID.
(a) Section 111(d) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding
at the end the following:
``(16) Consideration of smart grid investments.--
``(A) In general.--Each State shall consider requiring
that, prior to undertaking investments in nonadvanced grid
technologies, an electric utility of the State demonstrate to
the State that the electric utility considered an investment
in a qualified smart grid system based on appropriate
factors, including--
``(i) total costs;
``(ii) cost-effectiveness;
``(iii) improved reliability;
``(iv) security;
``(v) system performance; and
``(vi) societal benefit.
``(B) Rate recovery.--Each State shall consider authorizing
each electric utility of the State to recover from ratepayers
any capital, operating expenditure, or other costs of the
electric utility relating to the deployment of a qualified
smart grid system, including a reasonable rate of return on
the capital expenditures of the electric utility for the
deployment of the qualified smart grid system.
``(C) Obsolete equipment.--Each State shall consider
authorizing any electric utility or other party of the State
to deploy a qualified smart grid system to recover in a
timely manner the remaining book-value costs of any equipment
rendered obsolete by the deployment of the qualified smart
grid system, based on the remaining depreciable life of the
obsolete equipment.
``(17) Smart grid information.--
``(A) Standard.--All electricity purchasers shall be
provided direct access, in written or electronic machine-
readable form as appropriate, to information from their
electricity provider as provided in subparagraph (B).
``(B) Information.--Information provided under this
section, to the extent practicable, shall include:
``(i) Prices.--Purchasers and other interested persons
shall be provided with information on--
``(I) time-based electricity prices in the wholesale
electricity market; and
``(II) time-based electricity retail prices or rates that
are available to the purchasers.
``(ii) Usage.--Purchasers shall be provided with the number
of electricity units, expressed in kwh, purchased by them.
``(iii) Intervals and projections.--Updates of information
on prices and usage shall be offered on not less than a daily
basis, shall include hourly price and use information, where
available, and shall include a day-ahead projection of such
price information to the extent available.
``(iv) Sources.--Purchasers and other interested persons
shall be provided annually
[[Page H14399]]
with written information on the sources of the power provided
by the utility, to the extent it can be determined, by type
of generation, including greenhouse gas emissions associated
with each type of generation, for intervals during which such
information is available on a cost-effective basis.
``(C) Access.--Purchasers shall be able to access their own
information at any time through the internet and on other
means of communication elected by that utility for Smart Grid
applications. Other interested persons shall be able to
access information not specific to any purchaser through the
Internet. Information specific to any purchaser shall be
provided solely to that purchaser.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding the following at the end thereof:
``(6)(A) Not later than 1 year after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated utility shall commence the
consideration referred to in section 111, or set a hearing
date for consideration, with respect to the standards
established by paragraphs (17) through (18) of section
111(d).
``(B) Not later than 2 years after the date of the
enactment of the this paragraph, each State regulatory
authority (with respect to each electric utility for which it
has ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to
each standard established by paragraphs (17) through (18) of
section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
is amended by adding the following at the end:
``In the case of the standards established by paragraphs
(16) through (19) of section 111(d), the reference contained
in this subsection to the date of enactment of this Act shall
be deemed to be a reference to the date of enactment of such
paragraphs.''.
(3) Prior state actions.--Section 112(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d))
is amended by inserting ``and paragraphs (17) through (18)''
before ``of section 111(d)''.
SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE
DEVELOPMENT OF COMBINED HEAT AND POWER
FACILITIES.
(a) Study.--
(1) In general.--The Secretary, in consultation with the
States and other appropriate entities, shall conduct a study
of the laws (including regulations) affecting the siting of
privately owned electric distribution wires on and across
public rights-of-way.
(2) Requirements.--The study under paragraph (1) shall
include--
(A) an evaluation of--
(i) the purposes of the laws; and
(ii) the effect the laws have on the development of
combined heat and power facilities;
(B) a determination of whether a change in the laws would
have any operating, reliability, cost, or other impacts on
electric utilities and the customers of the electric
utilities; and
(C) an assessment of--
(i) whether privately owned electric distribution wires
would result in duplicative facilities; and
(ii) whether duplicative facilities are necessary or
desirable.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
a report that describes the results of the study conducted
under subsection (a).
SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID
SYSTEMS.
(a) DOE Study.--The Secretary shall, within 18 months after
the date of enactment of this Act, submit a report to
Congress that provides a quantitative assessment and
determination of the existing and potential impacts of the
deployment of Smart Grid systems on improving the security of
the Nation's electricity infrastructure and operating
capability. The report shall include but not be limited to
specific recommendations on each of the following:
(1) How smart grid systems can help in making the Nation's
electricity system less vulnerable to disruptions due to
intentional acts against the system.
(2) How smart grid systems can help in restoring the
integrity of the Nation's electricity system subsequent to
disruptions.
(3) How smart grid systems can facilitate nationwide,
interoperable emergency communications and control of the
Nation's electricity system during times of localized,
regional, or nationwide emergency.
(4) What risks must be taken into account that smart grid
systems may, if not carefully created and managed, create
vulnerability to security threats of any sort, and how such
risks may be mitigated.
(b) Consultation.--The Secretary shall consult with other
Federal agencies in the development of the report under this
section, including but not limited to the Secretary of
Homeland Security, the Federal Energy Regulatory Commission,
and the Electric Reliability Organization certified by the
Commission under section 215(c) of the Federal Power Act (16
U.S.C. 824o) as added by section 1211 of the Energy Policy
Act of 2005 (Public Law 109-58; 119 Stat. 941).
TITLE XIV--RENEWABLE ELECTRICITY STANDARD
SEC. 1401. RENEWABLE ELECTRICITY STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory
Policies Act of 1978 is amended by adding at the end the
following:
``SEC. 610. RENEWABLE ELECTRICITY STANDARD.
``(a) Definitions.--For purposes of this section:
``(1) Biomass.--
``(A) In general.--The term `biomass' means each of the
following:
``(i) Cellulosic (plant fiber) organic materials from a
plant that is planted for the purpose of being used to
produce energy.
``(ii) Nonhazardous, plant or algal matter that is derived
from any of the following:
``(I) An agricultural crop, crop byproduct or residue
resource.
``(II) Waste such as landscape or right-of-way trimmings
(but not including municipal solid waste, recyclable
postconsumer waste paper, painted, treated, or pressurized
wood, wood contaminated with plastic or metals).
``(iii) Animal waste or animal byproducts.
``(iv) Landfill methane.
``(B) National forest lands and certain other public
lands.--With respect to organic material removed from
National Forest System lands or from public lands
administered by the Secretary of the Interior, the term
`biomass' covers only organic material from (i) ecological
forest restoration; (ii) pre-commercial thinnings; (iii)
brush; (iv) mill residues; and (v) slash.
``(C) Exclusion of certain federal lands.--Notwithstanding
subparagraph (B), material or matter that would otherwise
qualify as biomass are not included in the term biomass if
they are located on the following Federal lands:
``(i) Federal land containing old growth forest or late
successional forest unless the Secretary of the Interior or
the Secretary of Agriculture determines that the removal of
organic material from such land is appropriate for the
applicable forest type and maximizes the retention of late-
successional and large and old growth trees, late-
successional and old growth forest structure, and late-
successional and old growth forest composition.
``(ii) Federal land on which the removal of vegetation is
prohibited, including components of the National Wilderness
Preservation System.
``(iii) Wilderness Study Areas.
``(iv) Inventoried roadless areas.
``(v) Components of the National Landscape Conservation
System.
``(vi) National Monuments.
``(2) Eligible facility.--The term `eligible facility'
means--
``(A) a facility for the generation of electric energy from
a renewable energy resource that is placed in service on or
after January 1, 2001; or
``(B) a repowering or cofiring increment.
``(3) Existing facility.--The term `existing facility'
means a facility for the generation of electric energy from a
renewable energy resource that is not an eligible facility.
``(4) Incremental hydropower.--The term `incremental
hydropower' means additional generation that is achieved from
increased efficiency or additions of capacity made on or
after January 1, 2001, or the effective date of an existing
applicable State renewable portfolio standard program at a
hydroelectric facility that was placed in service before that
date.
``(5) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any Indian reservation,
pueblo, or rancheria;
``(B) any land not within the limits of any Indian
reservation, pueblo, or rancheria title to which was on the
date of enactment of this paragraph either held by the United
States for the benefit of any Indian tribe or individual or
held by any Indian tribe or individual subject to restriction
by the United States against alienation;
``(C) any dependent Indian community; or
``(D) any land conveyed to any Alaska Native corporation
under the Alaska Native Claims Settlement Act.
``(6) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community, including any Alaskan Native village or regional
or village corporation as defined in or established pursuant
to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized as eligible for the special
programs and services provided by the United States to
Indians because of their status as Indians.
``(7) Renewable energy.--The term `renewable energy' means
electric energy generated by a renewable energy resource.
``(8) Renewable energy resource.--The term `renewable
energy resource' means solar, wind, ocean, tidal, geothermal
energy, biomass, landfill gas, incremental hydropower, or
hydrokinetic energy.
``(9) Repowering or cofiring increment.--The term
`repowering or cofiring increment' means--
``(A) the additional generation from a modification that is
placed in service on or after January 1, 2001, to expand
electricity production at a facility used to generate
electric energy from a renewable energy resource;
``(B) the additional generation above the average
generation in the 3 years preceding the date of enactment of
this section at a facility used to generate electric energy
from
[[Page H14400]]
a renewable energy resource or to cofire biomass that was
placed in service before the date of enactment of this
section: or
``(C) the portion of the electric generation from a
facility placed in service on or after January 1, 2001, or a
modification to a facility placed in service before the date
of enactment of this section made on or after January 1,
2001, associated with cofiring biomass.
``(10) Retail electric supplier.--(A) The term `retail
electric supplier' means a person that sells electric energy
to electric consumers (other than consumers in Hawaii) that
sold not less than 1,000,000 megawatt-hours of electric
energy to electric consumers for purposes other than resale
during the preceding calendar year. For purposes of this
section, a person that sells electric energy to electric
consumers that, in combination with the sales of any
affiliate organized after the date of enactment of this
section, sells not less that 1,000,000 megawatt hours of
electric energy to consumers for purposes other than resale
shall qualify as a retail electric supplier. For purposes of
this paragraph, sales by any person to a parent company or to
other affiliates of such person shall not be treated as sales
to electric consumers.
``(B) Such term does not include the United States, a State
or any political subdivision of a State, or any agency,
authority, or instrumentality of any one or more of the
foregoing, or a rural electric cooperative, except that a
political subdivision of a State, or an agency, authority
or instrumentality of the United States, a State or a
political subdivision of a State, or a rural electric
cooperative that sells electric energy to electric consumers
or any other entity that sells electric energy to electric
consumers that would not otherwise qualify as a retail
electric supplier shall be deemed a retail electric supplier
if such entity notifies the Secretary that it voluntarily
agrees to participate in the Federal renewable electricity
standard program.
``(11) Retail electric supplier's base amount.--The term
`retail electric supplier's base amount' means the total
amount of electric energy sold by the retail electric
supplier, expressed in terms of kilowatt hours, to electric
customers for purposes other than resale during the most
recent calendar year for which information is available,
excluding--
``(A) electric energy that is not incremental hydropower
generated by a hydroelectric facility; and
``(B) electricity generated through the incineration of
municipal solid waste.
``(b) Compliance.--For each calendar year beginning in
calendar year 2010, each retail electric supplier shall meet
the requirements of subsection (c) by submitting to the
Secretary, not later than April 1 of the following calendar
year, one or more of the following:
``(1) Federal renewable energy credits issued under
subsection (e).
``(2) Federal energy efficiency credits issued under
subsection (i), except that Federal energy efficiency credits
may not be used to meet more than 27 percent of the
requirements of subsection (c) in any calendar year. Energy
efficiency credits may only be used for compliance in a State
where the Governor has petitioned the Secretary pursuant to
subjection (i)(2).
``(3) Certification of the renewable energy generated and
electricity savings pursuant to the funds associated with
State compliance payments as specified in subsection
(e)(3)(G).
``(4) Alternative compliance payments pursuant to
subsection (j).
``(c) Required Annual Percentage.--For calendar years 2010
through 2039, the required annual percentage of the retail
electric supplier's base amount that shall be generated from
renewable energy resources, or otherwise credited towards
such percentage requirement pursuant to subsection (d), shall
be the percentage specified in the following table:
Required annual
``Calendar Years percentage
2010...........................................................2.75
2011...........................................................2.75
2012...........................................................3.75
2013............................................................4.5
2014............................................................5.5
2015............................................................6.5
2016............................................................7.5
2017...........................................................8.25
2018..........................................................10.25
2019..........................................................12.25
2020 and thereafter through 2039................................ 15
``(d) Renewable Energy and Energy Efficiency Credits.--(1)
A retail electric supplier may satisfy the requirements of
subsection (b)(1) through the submission of Federal renewable
energy credits--
``(A) issued to the retail electric supplier under
subsection (e);
``(B) obtained by purchase or exchange under subsection (f)
or (g); or
``(C) borrowed under subsection (h).
``(2) A retail electric supplier may satisfy the
requirements of subsection (b)(2) through the submission of
Federal energy efficiency credits issued to the retail
electric supplier obtained by purchase or exchange pursuant
to subsection (i).
``(3) A Federal renewable energy credit may be counted
toward compliance with subsection (b)(1) only once. A Federal
energy efficiency credit may be counted toward compliance
with subsection (b)(2) only once.
``(e) Issuance of Federal Renewable Energy Credits.--(1)
The Secretary shall establish by rule, not later than 1 year
after the date of enactment of this section, a program to
verify and issue Federal renewable energy credits to
generators of renewable energy, track their sale, exchange
and retirement and to enforce the requirements of this
section. To the extent possible, in establishing such
program, the Secretary shall rely upon existing and emerging
State or regional tracking systems that issue and track non-
Federal renewable energy credits.
``(2) An entity that generates electric energy through the
use of a renewable energy resource may apply to the Secretary
for the issuance of renewable energy credits. The applicant
must demonstrate that the electric energy will be transmitted
onto the grid or, in the case of a generation offset, that
the electric energy offset would have otherwise been consumed
on site. The application shall indicate--
``(A) the type of renewable energy resource used to produce
the electricity;
``(B) the location where the electric energy was produced;
and
``(C) any other information the Secretary determines
appropriate.
``(3)(A) Except as provided in subparagraphs (B), (C), and
(D), the Secretary shall issue to a generator of electric
energy one Federal renewable energy credit for each kilowatt
hour of electric energy generated by the use of a renewable
energy resource at an eligible facility.
``(B) For purpose of compliance with this section, Federal
renewable energy credits for incremental hydropower shall be
based, on the increase in average annual generation resulting
from the efficiency improvements or capacity additions. The
incremental generation shall be calculated using the same
water flow information used to determine a historic average
annual generation baseline for the hydroelectric facility and
certified by the Secretary or the Federal Energy Regulatory
Commission. The calculation of the Federal renewable energy
credits for incremental hydropower shall not be based on any
operational changes at the hydroelectric facility not
directly associated with the efficiency improvements or
capacity additions.
``(C) The Secretary shall issue 2 renewable energy credits
for each kilowatt hour of electric energy generated and
supplied to the grid in that calendar year through the use of
a renewable energy resource at an eligible facility located
on Indian land. For purposes of this paragraph, renewable
energy generated by biomass cofired with other fuels is
eligible for two credits only if the biomass was grown on
such land.
``(D) For electric energy generated by a renewable energy
resource at an on-site eligible facility no larger than one
megawatt in capacity and used to offset part or all of the
customer's requirements for electric energy, the Secretary
shall issue 3 renewable energy credits to such customer for
each kilowatt hour generated.
``(E) In the case of an on-site eligible facility on Indian
land no more than 3 credits per kilowatt hour may be issued.
``(F) If both a renewable energy resource and a non-
renewable energy resource are used to generate the electric
energy, the Secretary shall issue the Federal renewable
energy credits based on the proportion of the renewable
energy resources used.
``(G) When a generator has sold electric energy generated
through the use of a renewable energy resource to a retail
electric supplier under a contract for power from an existing
facility, and the contract has not determined ownership of
the Federal renewable energy credits associated with such
generation, the Secretary shall issue such Federal renewable
energy credits to the retail electric supplier for the
duration of the contract.
``(H) Payments made by a retail electricity supplier,
directly or indirectly, to a State for compliance with a
State renewable portfolio standard program, or for an
alternative compliance mechanism, shall be valued at one
credit per kilowatt hour for the purpose of subsection (b)(2)
based on the amount of electric energy generation from
renewable resources and electricity savings up to 27 percent
of the utility's requirement that results from those
payments.
``(f) Existing Facilities.--The Secretary shall ensure that
a retail electric supplier that acquires Federal renewable
energy credits associated with the generation of renewable
energy from an existing facility may use such credits for
purpose of its compliance with subsection (b)(1). Such
credits may not be sold, exchanged, or transferred for the
purpose of compliance by another retail electric supplier.
``(g) Renewable Energy Credit Trading.--(1) A Federal
renewable energy credit, may be sold, transferred or
exchanged by the entity to whom issued or by any other entity
who acquires the Federal renewable energy credit, except for
those renewable energy credits from existing facilities. A
Federal renewable energy credit for any year that is not
submitted to satisfy the minimum renewable generation
requirement of subsection (c) for that year may be carried
forward for use pursuant to subsection (b)(1) within the next
3 years.
``(2) A Federally owned or cooperatively owned utility, or
a State or subdivision thereof, that is not a retail electric
supplier that generates electric energy by the use of a
renewable energy resource at an eligible facility may only
sell, transfer or exchange a Federal renewable energy credit
to a cooperatively owned utility or an agency, authority or
instrumentality of a State or political
[[Page H14401]]
subdivision of a State that is a retail electric supplier
that has acquired the electric energy associated with the
credit.
``(3) The Secretary may delegate to an appropriate market-
making entity the administration of a national tradeable
renewable energy credit market and a nation energy efficiency
credit market for purposes of creating a transparent national
market for the sale or trade of renewable energy credits and
a transparent national market for the sale or trade of
Federal energy efficiency credits.
``(h) Renewable Energy Credit Borrowing.--At any time
before the end of calendar year 2012, a retail electric
supplier that has reason to believe it will not be able to
fully comply with subsection (b) may--
``(1) submit a plan to the Secretary demonstrating that the
retail electric supplier will earn sufficient Federal
renewable energy credits and Federal energy efficiency
credits within the next 3 calendar years which, when taken
into account, will enable the retail electric supplier to
meet the requirements of subsection (b) for calendar year
2012 and the subsequent calendar years involved; and
``(2) upon the approval of the plan by the Secretary, apply
Federal renewable energy credits and Federal energy
efficiency credits that the plan demonstrates will be earned
within the next 3 calendar years to meet the requirements of
subsection (b) for each calendar year involved.
The retail electric supplier must repay all of the borrowed
Federal renewable energy credits and Federal energy
efficiency credits by submitting an equivalent number of
Federal renewable energy credits and Federal energy
efficiency credits, in addition to those otherwise required
under subsection (b), by calendar year 2020 or any earlier
deadlines specified in the approved plan. Failure to repay
the borrowed Federal renewable energy credits and Federal
energy efficiency credits shall subject the retail electric
supplier to civil penalties under subsection (i) for
violation of the requirements of subsection (b) for each
calendar year involved.
``(i) Energy Efficiency Credits.--
``(1) Definitions.--In this subsection--
``(A) Customer facility savings.--The term `customer
facility savings' means a reduction in end-use electricity at
a facility of an end-use consumer of electricity served by a
retail electric supplier, as compared to--
``(i) consumption at the facility during a base year;
``(ii) in the case of new equipment (regardless of whether
the new equipment replaces existing equipment at the end of
the useful life of the existing equipment), consumption by
the new equipment of average efficiency; or
``(iii) in the case of a new facility, consumption at a
reference facility.
``(B) Electricity savings.--The term `electricity savings'
means--
``(i) customer facility savings of electricity consumption
adjusted to reflect any associated increase in fuel
consumption at the facility;
``(ii) reductions in distribution system losses of
electricity achieved by a retail electricity distributor, as
compared to losses during the base years;
``(iii) the output of new combined heat and power systems,
to the extent provided under paragraph (5); and
``(iv) recycled energy savings.
``(C) Qualifying electricity savings.--The term `qualifying
electricity savings' means electricity saving that meet the
measurement and verification requirements of paragraph (4).
``(D) Recycled energy savings.--The term `recycled energy
savings' means a reduction in electricity consumption that is
attributable to electrical or mechanical power, or both,
produced by modifying an industrial or commercial system that
was in operation before July 1, 2007, in order to recapture
energy that would otherwise be wasted.
``(2) Petition.--The Governor of a State may petition the
Secretary to allow up to 27 percent of the requirements of a
retail electric supplier under subsection (c) in the State to
be met by submitting Federal energy efficiency credits issued
pursuant to this subsection.
``(3) Issuance of credits.--(A) Upon petition by the
Governor, the Secretary shall issue energy efficiency credits
for electricity savings described in subparagraph (B)
achieved in States described in paragraph (2) in accordance
with this subsection.
``(B) In accordance with regulations promulgated by the
Secretary, the Secretary shall issue credits for--
``(i) qualified electricity savings achieved by a retail
electric supplier in a calendar year; and
``(ii) qualified electricity savings achieved by other
entities if--
``(I) the measures used to achieve the qualifying
electricity savings were installed or place in operation by
the entity seeking the credit or the designated agent of the
entity; and
``(II) no retail electric supplier paid a substantial
portion of the cost of achieving the qualified electricity
savings (unless the retail electric supplier has waived any
entitlement to the credit).
``(4) Measurement and verification of electricity
savings.--Not later than June 30, 2009, the Secretary shall
promulgate regulations regarding the measurement and
verification of electricity savings under this subsection,
including regulations covering--
``(A) procedures and standards for defining and measuring
electricity savings that will be eligible to receive credits
under paragraph (3), which shall--
``(i) specify the types of energy efficiency and energy
conservation that will be eligible for the credits;
``(ii) require that energy consumption for customer
facilities or portions of facilities in the applicable base
and current years be adjusted, as appropriate, to account for
changes in weather, level of production, and building area;
``(iii) account for the useful life of electricity savings
measures;
``(iv) include specified electricity savings values for
specific, commonly-used efficiency measures;
``(v) specify the extent to which electricity savings
attributable to measures carried out before the date of
enactment of this section are eligible to receive credits
under this subsection; and
``(vi) exclude electricity savings that (I) are not
properly attributable to measures carried out by the entity
seeking the credit; or (II) have already been credited under
this section to another entity;
``(B) procedures and standards for third-party verification
of reported electricity savings; and
``(C) such requirements for information, reports, and
access to facilities as may be necessary to carry out this
subsection.
``(5) Combined heat and power.--Under regulations
promulgated by the Secretary, the increment of electricity
output of a new combined heat and power system that is
attributable to the higher efficiency of the combined system
(as compared to the efficiency of separate production of the
electric and thermal outputs), shall be considered
electricity savings under this subsection.
``(j) Enforcement.--A retail electric supplier that does
not comply with subsection (b) shall be liable for the
payment of a civil penalty. That penalty shall be calculated
on the basis of the number of kilowatt-hours represented by
the retail electric supplier's failure to comply with
subsection (b), multiplied by the lesser of 4.5 cents
(adjusted for inflation for such calendar year, based on the
Gross Domestic Product Implicit Price Deflator) or 300
percent of the average market value of Federal renewable
energy credits and energy efficiency credits for the
compliance period. Any such penalty shall be due and payable
without demand to the Secretary as provided in the
regulations issued under subsection (e).
``(k) Alternative Compliance Payments.--The Secretary shall
accept payment equal to the lesser of:
``(1) 200 percent of the average market value of Federal
renewable energy credits and Federal energy efficiency
credits for the applicable compliance period; or
``(2) 2.5 cents per kilowatt hour adjusted on January 1 of
each year following calendar year 2006 based on the Gross
Domestic Product Implicit Price Deflator,
as a means of compliance under subsection (b)(4)
``(l) Information Collection.--The Secretary may collect
the information necessary to verify and audit--
``(1) the annual renewable energy generation of any retail
electric supplier, Federal renewable energy credits submitted
by a retail electric supplier pursuant to subsection (b)(1)
and Federal energy efficiency credits submitted by a retail
electric supplier pursuant to subsection (b)(2);
``(2) annual electricity savings achieved pursuant to
subsection (i);
``(3) the validity of Federal renewable energy credits
submitted for compliance by a retail electric supplier to the
Secretary; and
``(4) the quantity of electricity sales of all retail
electric suppliers.
``(m) Environmental Savings Clause.--Incremental hydropower
shall be subject to all applicable environmental laws and
licensing and regulatory requirements.
``(n) State Programs.--(1) Nothing in this section
diminishes any authority of a State or political subdivision
of a State to--
``(A) adopt or enforce any law or regulation respecting
renewable energy or energy efficiency, including but not
limited to programs that exceed the required amount of
renewable energy or energy efficiency under this section, or
``(B) regulate the acquisition and disposition of Federal
renewable energy credits and Federal energy efficiency
credits by retail electric suppliers.
No law or regulation referred to in subparagraph (A) shall
relieve any person of any requirement otherwise applicable
under this section. The Secretary, in consultation with
States having renewable energy programs and energy efficiency
programs, shall preserve the integrity of such State
programs, including programs that exceed the required amount
of renewable energy and energy efficiency under this section,
and shall facilitate coordination between the Federal program
and State programs.
``(2) In the rule establishing the program under this
section, the Secretary shall incorporate common elements of
existing renewable energy and energy efficiency programs,
including State programs, to ensure administrative ease,
market transparency and effective enforcement. The Secretary
shall work with the States to minimize administrative burdens
and costs to retail electric suppliers.
``(o) Recovery of Costs.--An electric utility whose sales
of electric energy are subject to rate regulation, including
any utility whose rates are regulated by the Commission and
any State regulated electric utility,
[[Page H14402]]
shall not be denied the opportunity to recover the full
amount of the prudently incurred incremental cost of
renewable energy and energy efficiency obtained to comply
with the requirements of subsection (b). For purposes of this
subsection, the definitions in section 3 of this Act shall
apply to the terms electric utility, State regulated electric
utility, State agency, Commission, and State regulatory
authority.
``(p) Program Review.--The Secretary shall enter into a
contract with the National Academy of Sciences to conduct a
comprehensive evaluation of all aspects of the program
established under this section, within 8 years of enactment
of this section. The study shall include an evaluation of--
``(1) the effectiveness of the program in increasing the
market penetration and lowering the cost of the eligible
renewable energy and energy efficiency technologies;
``(2) the opportunities for any additional technologies and
sources of renewable energy and energy efficiency emerging
since enactment of this section;
``(3) the impact on the regional diversity and reliability
of supply sources, including the power quality benefits of
distributed generation;
``(4) the regional resource development relative to
renewable potential and reasons for any under investment in
renewable resources; and
``(5) the net cost/benefit of the renewable electricity
standard to the national and State economies, including
retail power costs, economic development benefits of
investment, avoided costs related to environmental and
congestion mitigation investments that would otherwise have
been required, impact on natural gas demand and price,
effectiveness of green marketing programs at reducing the
cost of renewable resources.
The Secretary shall transmit the results of the evaluation
and any recommendations for modifications and improvements to
the program to Congress not later than January 1, 2016.
``(q) State Renewable Energy and Energy Efficiency Account
Program.--(1) There is established in the Treasury a State
renewable energy and energy efficiency account program.
``(2) All money collected by the Secretary from the
alternative compliance payments under subsection (k) shall be
deposited into the State renewable energy and energy
efficiency account established pursuant to this subsection.
``(3) Proceeds deposited in the State renewable energy and
energy efficiency account shall be used by the Secretary,
subject to annual appropriations, for a program to provide
grants to the State agency responsible for administering a
fund to promote renewable energy generation and energy
efficiency for customers of the State, or an alternative
agency designated by the State, or if no such agency exists,
to the State agency developing State energy conservation
plans under section 363 of the Energy Policy and Conservation
Act (42 U.S.C. 6322) for the purposes of promoting renewable
energy production and providing energy assistance and
weatherization services to low-income consumers.
``(4) The Secretary may issue guidelines and criteria for
grants awarded under this subsection. At least 75 percent of
the funds provided to each State shall be used for promoting
renewable energy production and energy efficiency through
grants, production incentives or other state-approved funding
mechanisms. The funds shall be allocated to the States on the
basis of retail electric sales subject to the Renewable
electricity Standard under this section or through voluntary
participation. State agencies receiving grants under this
section shall maintain such records and evidence of
compliance as the Secretary may require.''.
(b) Table of Contents.--The table of contents for such
title is amended by adding the following new item at the end:
``Sec. 610. Federal renewable electricity standard''.
(c) Sunset.--Section 610 of such title and the item
relating to such section 610 in the table of contents for
such title are each repealed as of December 31, 2039.
TITLE XV--CLEAN RENEWABLE ENERGY AND CONSERVATION TAX ACT OF 2007
SEC. 1500. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This title may be cited as the ``Clean
Renewable Energy and Conservation Tax Act of 2007''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
Subtitle A--Clean Renewable Energy Production Incentives
PART I--PROVISIONS RELATING TO RENEWABLE ENERGY
SEC. 1501. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY
CREDIT.
(a) Extension of Credit.--Each of the following provisions
of section 45(d) (relating to qualified facilities) is
amended by striking ``January 1, 2009'' and inserting
``January 1, 2013'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45 is
amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in paragraph (1),'' in
paragraph (2) thereof.
(2) Limitation based on investment in facility.--Subsection
(b) of section 45 is amended by inserting before paragraph
(2) the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any qualified facility
originally placed in service after December 31, 2008, the
amount of the credit determined under subsection (a) for any
taxable year with respect to electricity produced at such
facility shall not exceed the product of--
``(i) the applicable percentage with respect to such
facility, multiplied by
``(ii) the eligible basis of such facility.
``(B) Carryforward of unused limitation and excess
credit.--
``(i) Unused limitation.--If the limitation imposed under
subparagraph (A) with respect to any facility for any taxable
year exceeds the prelimitation credit for such facility for
such taxable year, the limitation imposed under subparagraph
(A) with respect to such facility for the succeeding taxable
year shall be increased by the amount of such excess.
``(ii) Excess credit.--If the prelimitation credit with
respect to any facility for any taxable year exceeds the
limitation imposed under subparagraph (A) with respect to
such facility for such taxable year, the credit determined
under subsection (a) with respect to such facility for the
succeeding taxable year (determined before the application of
subparagraph (A) for such succeeding taxable year) shall be
increased by the amount of such excess. With respect to any
facility, no amount may carried forward under this clause to
any taxable year beginning after the 10-year period described
in subsection (a)(2)(A)(ii) with respect to such facility.
``(iii) Prelimitation credit.--The term `prelimitation
credit' with respect to any facility for a taxable year means
the credit determined under subsection (a) with respect to
such facility for such taxable year, determined without
regard to subparagraph (A) and after taking into account any
increase for such taxable year under clause (ii).
``(C) Applicable percentage.--For purposes of this
paragraph--
``(i) In general.--The term `applicable percentage' means,
with respect to any facility, the appropriate percentage
prescribed by the Secretary for the month in which such
facility is originally placed in service.
``(ii) Method of prescribing applicable percentages.--The
applicable percentages prescribed by the Secretary for any
month under clause (i) shall be percentages which yield over
a 10-year period amounts of limitation under subparagraph (A)
which have a present value equal to 35 percent of the
eligible basis of the facility.
``(iii) Method of discounting.--The present value under
clause (ii) shall be determined--
``(I) as of the last day of the 1st year of the 10-year
period referred to in clause (ii),
``(II) by using a discount rate equal to the greater of 110
percent of the Federal long-term rate as in effect under
section 1274(d) for the month preceding the month for which
the applicable percentage is being prescribed, or 4.5
percent, and
``(III) by taking into account the limitation under
subparagraph (A) for any year on the last day of such year.
``(D) Eligible basis.--For purposes of this paragraph--
``(i) In general.--The term `eligible basis' means, with
respect to any facility, the sum of--
``(I) the basis of such facility determined as of the time
that such facility is originally placed in service, and
``(II) the portion of the basis of any shared qualified
property which is properly allocable to such facility under
clause (ii).
``(ii) Rules for allocation.--For purposes of subclause
(II) of clause (i), the basis of shared qualified property
shall be allocated among all qualified facilities which are
projected to be placed in service and which require
utilization of such property in proportion to projected
generation from such facilities.
``(iii) Shared qualified property.--For purposes of this
paragraph, the term `shared qualified property' means, with
respect to any facility, any property described in section
168(e)(3)(B)(vi)--
``(I) which a qualified facility will require for
utilization of such facility, and
``(II) which is not a qualified facility.
``(iv) Special rule relating to geothermal facilities.--In
the case of any qualified facility using geothermal energy to
produce electricity, the basis of such facility for purposes
of this paragraph shall be determined as though intangible
drilling and development costs described in section 263(c)
were capitalized rather than expensed.
``(E) Special rule for first and last year of credit
period.--In the case of any taxable year any portion of which
is not
[[Page H14403]]
within the 10-year period described in subsection
(a)(2)(A)(ii) with respect to any facility, the amount of the
limitation under subparagraph (A) with respect to such
facility shall be reduced by an amount which bears the same
ratio to the amount of such limitation (determined without
regard to this subparagraph) as such portion of the taxable
year which is not within such period bears to the entire
taxable year.
``(F) Election to treat all facilities placed in service in
a year as 1 facility.--At the election of the taxpayer, all
qualified facilities which are part of the same project and
which are placed in service during the same calendar year
shall be treated for purposes of this section as 1 facility
which is placed in service at the mid-point of such year or
the first day of the following calendar year.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property
originally placed in service after December 31, 2008.
(2) Repeal of credit phaseout.--The amendments made by
subsection (b)(1) shall apply to taxable years ending after
December 31, 2008.
SEC. 1502. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM
MARINE RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) (relating
to resources) is amended by striking ``and'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is
amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and hydrokinetic
renewable energy' means energy derived from--
``(i) waves, tides, and currents in oceans, estuaries, and
tidal areas,
``(ii) free flowing water in rivers, lakes, and streams,
``(iii) free flowing water in an irrigation system, canal,
or other man-made channel, including projects that utilize
nonmechanical structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature (ocean thermal
energy conversion).
``(B) Exceptions.--Such term shall not include any energy
which is derived from any source which utilizes a dam,
diversionary structure (except as provided in subparagraph
(A)(iii)), or impoundment for electric power production
purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45
is amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the
taxpayer--
``(A) which has a nameplate capacity rating of at least 150
kilowatts, and
``(B) which is originally placed in service on or after the
date of the enactment of this paragraph and before January 1,
2013.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is
amended by striking ``or (9)'' and inserting ``(9), or
(11)''.
(e) Coordination With Small Irrigation Power.--Paragraph
(5) of section 45(d), as amended by this Act, is amended by
striking ``January 1, 2013'' and inserting ``the date of the
enactment of paragraph (11)''.
(f) Effective Date.--The amendments made by this section
shall apply to electricity produced and sold after the date
of the enactment of this Act, in taxable years ending after
such date.
SEC. 1503. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) (relating to energy credit) are
each amended by striking ``January 1, 2009'' and inserting
``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) (relating to qualified fuel cell property) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2016''.
(3) Microturbine property.--Subparagraph (E) of section
48(c)(2) (relating to qualified microturbine property) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2016''.
(b) Allowance of Energy Credit Against Alternative Minimum
Tax.--Subparagraph (B) of section 38(c)(4) (relating to
specified credits) is amended by striking ``and'' at the end
of clause (iii), by striking the period at the end of clause
(iv) and inserting ``, and'', and by adding at the end the
following new clause:
``(v) the credit determined under section 46 to the extent
that such credit is attributable to the energy credit
determined under section 48.''.
(c) Energy Credit for Combined Heat and Power System
Property.--
(1) In general.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of clause
(iii), by inserting ``or'' at the end of clause (iv), and by
adding at the end the following new clause:
``(v) combined heat and power system property,''.
(2) Combined heat and power system property.--Section 48
(relating to energy credit; reforestation credit) is amended
by adding at the end the following new subsection:
``(d) Combined Heat and Power System Property.--For
purposes of subsection (a)(3)(A)(v)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property
comprising a system--
``(A) which uses the same energy source for the
simultaneous or sequential generation of electrical power,
mechanical shaft power, or both, in combination with the
generation of steam or other forms of useful thermal energy
(including heating and cooling applications),
``(B) which produces--
``(i) at least 20 percent of its total useful energy in the
form of thermal energy which is not used to produce
electrical or mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total useful energy in
the form of electrical or mechanical power (or combination
thereof),
``(C) the energy efficiency percentage of which exceeds 60
percent, and
``(D) which is placed in service before January 1, 2017.
``(2) Limitation.--
``(A) In general.--In the case of combined heat and power
system property with an electrical capacity in excess of the
applicable capacity placed in service during the taxable
year, the credit under subsection (a)(1) (determined without
regard to this paragraph) for such year shall be equal to the
amount which bears the same ratio to such credit as the
applicable capacity bears to the capacity of such property.
``(B) Applicable capacity.--For purposes of subparagraph
(A), the term `applicable capacity' means 15 megawatts or a
mechanical energy capacity of more than 20,000 horsepower or
an equivalent combination of electrical and mechanical energy
capacities.
``(C) Maximum capacity.--The term `combined heat and power
system property' shall not include any property comprising a
system if such system has a capacity in excess of 50
megawatts or a mechanical energy capacity in excess of 67,000
horsepower or an equivalent combination of electrical and
mechanical energy capacities.
``(3) Special rules.--
``(A) Energy efficiency percentage.--For purposes of this
subsection, the energy efficiency percentage of a system is
the fraction--
``(i) the numerator of which is the total useful
electrical, thermal, and mechanical power produced by the
system at normal operating rates, and expected to be consumed
in its normal application, and
``(ii) the denominator of which is the lower heating value
of the fuel sources for the system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under paragraph
(1)(B) shall be determined on a Btu basis.
``(C) Input and output property not included.--The term
`combined heat and power system property' does not include
property used to transport the energy source to the facility
or to distribute energy produced by the facility.
``(4) Systems using biomass.--If a system is designed to
use biomass (within the meaning of paragraphs (2) and (3) of
section 45(c) without regard to the last sentence of
paragraph (3)(A)) for at least 90 percent of the energy
source--
``(A) paragraph (1)(C) shall not apply, but
``(B) the amount of credit determined under subsection (a)
with respect to such system shall not exceed the amount which
bears the same ratio to such amount of credit (determined
without regard to this paragraph) as the energy efficiency
percentage of such system bears to 60 percent.''.
(d) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking
``$500'' and inserting ``$1,500''.
(e) Public Electric Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(f) Clerical Amendments.--Paragraphs (1)(B) and (2)(B) of
section 48(c) are each amended by striking ``paragraph (1)''
and inserting ``subsection (a)''.
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the
enactment of this Act and to carrybacks of such credits.
(3) Combined heat and power and fuel cell property.--The
amendments made by subsections (c) and (d) shall apply to
periods after the date of the enactment of this Act, in
taxable years ending after such date,
[[Page H14404]]
under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (as in effect on the day before
the date of the enactment of the Revenue Reconciliation Act
of 1990).
(4) Public electric utility property.--The amendments made
by subsection (e) shall apply to periods after June 20, 2007,
in taxable years ending after such date, under rules similar
to the rules of section 48(m) of the Internal Revenue Code of
1986 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990).
SEC. 1504. EXTENSION AND MODIFICATION OF CREDIT FOR
RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2014''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) (relating to maximum
credit) is amended by striking ``$2,000'' and inserting
``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is
amended by striking ``$6,667'' and inserting ``$13,334''.
(c) Credit for Residential Wind Property.--
(1) In general.--Section 25D(a) (relating to allowance of
credit) is amended by striking ``and'' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(4) 30 percent of the qualified small wind energy
property expenditures made by the taxpayer during such
year.''.
(2) Limitation.--Section 25D(b)(1) (relating to maximum
credit) is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(D) $500 with respect to each half kilowatt of capacity
(not to exceed $4,000) of wind turbines for which qualified
small wind energy property expenditures are made.''.
(3) Qualified small wind energy property expenditures.--
(A) In general.--Section 25D(d) (relating to definitions)
is amended by adding at the end the following new paragraph:
``(4) Qualified small wind energy property expenditure.--
The term `qualified small wind energy property expenditure'
means an expenditure for property which uses a wind turbine
to generate electricity for use in connection with a dwelling
unit located in the United States and used as a residence by
the taxpayer.''.
(B) No double benefit.--Section 45(d)(1) (relating to wind
facility) is amended by adding at the end the following new
sentence: ``Such term shall not include any facility with
respect to which any qualified small wind energy property
expenditure (as defined in subsection (d)(4) of section 25D)
is taken into account in determining the credit under such
section.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A) (relating to maximum expenditures) is
amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting
``, and'', and by adding at the end the following new clause:
``(iv) $1,667 in the case of each half kilowatt of capacity
of wind turbines for which qualified small wind energy
property expenditures are made.''.
(d) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of
Unused Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for the taxable year
shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable
year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits allowed
against regular and alternative minimum tax.--In the case of
a taxable year to which section 26(a)(2) applies, if the
credit allowable under subsection (a) exceeds the limitation
imposed by section 26(a)(2) for such taxable year reduced by
the sum of the credits allowable under this subpart (other
than this section), such excess shall be carried to the
succeeding taxable year and added to the credit allowable
under subsection (a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a taxable year
to which section 26(a)(2) does not apply, if the credit
allowable under subsection (a) exceeds the limitation imposed
by paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such succeeding
taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting ``and
section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking ``and 25B''
and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking ``section 23''
and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and 25B'' and
inserting ``25B, and 25D''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to expenditures after December 31, 2007.
(2) Allowance against alternative minimum tax.--
(A) In general.--The amendments made by subsection (d)
shall apply to taxable years beginning after the date of the
enactment of this Act.
(B) Application of egtrra sunset.--The amendments made by
subparagraphs (A) and (B) of subsection (d)(2) shall be
subject to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 in the same manner as the
provisions of such Act to which such amendments relate.
SEC. 1505. EXTENSION AND MODIFICATION OF SPECIAL RULE TO
IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING
POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i) (relating
to special rule for sales or dispositions to implement
Federal Energy Regulatory Commission or State electric
restructuring policy) is amended by inserting ``(before
January 1, 2010, in the case of a qualified electric
utility)'' after ``January 1, 2008''.
(2) Qualified electric utility.--Subsection (i) of section
451 is amended by redesignating paragraphs (6) through (10)
as paragraphs (7) through (11), respectively, and by
inserting after paragraph (5) the following new paragraph:
``(6) Qualified electric utility.--For purposes of this
subsection, the term `qualified electric utility' means a
person that, as of the date of the qualifying electric
transmission transaction, is vertically integrated, in that
it is both--
``(A) a transmitting utility (as defined in section 3(23)
of the Federal Power Act (16 U.S.C. 796(23)) with respect to
the transmission facilities to which the election under this
subsection applies, and
``(B) an electric utility (as defined in section 3(22) of
the Federal Power Act (16 U.S.C. 796(22)).''.
(b) Extension of Period for Transfer of Operational Control
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is
amended by striking ``December 31, 2007'' and inserting ``the
date which is 4 years after the close of the taxable year in
which the transaction occurs''.
(c) Property Located Outside the United States Not Treated
as Exempt Utility Property.--Paragraph (5) of section 451(i)
is amended by adding at the end the following new
subparagraph:
``(C) Exception for property located outside the united
states.--The term `exempt utility property' shall not include
any property which is located outside the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment made
by subsection (b) shall take effect as if included in section
909 of the American Jobs Creation Act of 2004.
(3) Exception for property located outside the united
states.--The amendment made by subsection (c) shall apply to
transactions after the date of the enactment of this Act.
SEC. 1506. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the
end the following new subpart:
``Subpart I--Qualified Tax Credit Bonds
``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.
``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a qualified
tax credit bond on one or more credit allowance dates of the
bond during any taxable year, there shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a qualified tax credit bond is 25 percent of the
annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified tax credit bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(2), the applicable credit rate is 70 percent of the rate
which the Secretary estimates will permit the issuance of
qualified tax credit bonds with a specified maturity or
redemption date without discount and without interest cost to
the qualified issuer. The applicable credit rate with respect
to any qualified tax credit bond shall be determined as of
the first day on which
[[Page H14405]]
there is a binding, written contract for the sale or exchange
of the bond.
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this part
(other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Qualified Tax Credit Bond.--For purposes of this
section--
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means a new clean renewable energy bond which is
part of an issue that meets the requirements of paragraphs
(2), (3), (4), (5), and (6).
``(2) Special rules relating to expenditures.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if, as of the date of
issuance, the issuer reasonably expects--
``(i) 100 percent or more of the available project proceeds
to be spent for 1 or more qualified purposes within the 3-
year period beginning on such date of issuance, and
``(ii) a binding commitment with a third party to spend at
least 10 percent of such available project proceeds will be
incurred within the 6-month period beginning on such date of
issuance.
``(B) Failure to spend required amount of bond proceeds
within 3 years.--
``(i) In general.--To the extent that less than 100 percent
of the available project proceeds of the issue are expended
by the close of the expenditure period for 1 or more
qualified purposes, the issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such
period. For purposes of this paragraph, the amount of the
nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(ii) Expenditure period.--For purposes of this subpart,
the term `expenditure period' means, with respect to any
issue, the 3-year period beginning on the date of issuance.
Such term shall include any extension of such period under
clause (iii).
``(iii) Extension of period.--Upon submission of a request
prior to the expiration of the expenditure period (determined
without regard to any extension under this clause), the
Secretary may extend such period if the issuer establishes
that the failure to expend the proceeds within the original
expenditure period is due to reasonable cause and the
expenditures for qualified purposes will continue to proceed
with due diligence.
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means a purpose specified in
section 54B(a)(1).
``(D) Reimbursement.--For purposes of this subtitle,
available project proceeds of an issue shall be treated as
spent for a qualified purpose if such proceeds are used to
reimburse the issuer for amounts paid for a qualified purpose
after the date that the Secretary makes an allocation of bond
limitation with respect to such issue, but only if--
``(i) prior to the payment of the original expenditure, the
issuer declared its intent to reimburse such expenditure with
the proceeds of a qualified tax credit bond,
``(ii) not later than 60 days after payment of the original
expenditure, the issuer adopts an official intent to
reimburse the original expenditure with such proceeds, and
``(iii) the reimbursement is made not later than 18 months
after the date the original expenditure is paid.
``(3) Reporting.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer of qualified tax
credit bonds submits reports similar to the reports required
under section 149(e).
``(4) Special rules relating to arbitrage.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer satisfies the
requirements of section 148 with respect to the proceeds of
the issue.
``(B) Special rule for investments during expenditure
period.--An issue shall not be treated as failing to meet the
requirements of subparagraph (A) by reason of any investment
of available project proceeds during the expenditure period.
``(C) Special rule for reserve funds.--An issue shall not
be treated as failing to meet the requirements of
subparagraph (A) by reason of any fund which is expected to
be used to repay such issue if--
``(i) such fund is funded at a rate not more rapid than
equal annual installments,
``(ii) such fund is funded in a manner reasonably expected
to result in an amount not greater than an amount necessary
to repay the issue, and
``(iii) the yield on such fund is not greater than the
discount rate determined under paragraph (5)(B) with respect
to the issue.
``(5) Maturity limitation.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if the maturity of any bond
which is part of such issue does not exceed the maximum term
determined by the Secretary under subparagraph (B).
``(B) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under
this paragraph for bonds issued during the following calendar
month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the
obligation to repay the principal on the bond being equal to
50 percent of the face amount of such bond. Such present
value shall be determined using as a discount rate the
average annual interest rate of tax-exempt obligations having
a term of 10 years or more which are issued during the month.
If the term as so determined is not a multiple of a whole
year, such term shall be rounded to the next highest whole
year.
``(6) Prohibition on financial conflicts of interest.--An
issue shall be treated as meeting the requirements of this
paragraph if the issuer certifies that--
``(A) applicable State and local law requirements governing
conflicts of interest are satisfied with respect to such
issue, and
``(B) if the Secretary prescribes additional conflicts of
interest rules governing the appropriate Members of Congress,
Federal, State, and local officials, and their spouses, such
additional rules are satisfied with respect to such issue.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Available project proceeds.--The term `available
project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an issue, over
``(ii) the issuance costs financed by the issue (to the
extent that such costs do not exceed 2 percent of such
proceeds), and
``(B) the proceeds from any investment of the excess
described in subparagraph (A).
``(f) Credit Treated as Interest.--For purposes of this
subtitle, the credit determined under subsection (a) shall be
treated as interest which is includible in gross income.
``(g) S Corporations and Partnerships.--In the case of a
tax credit bond held by an S corporation or partnership, the
allocation of the credit allowed by this section to the
shareholders of such corporation or partners of such
partnership shall be treated as a distribution.
``(h) Bonds Held by Regulated Investment Companies and Real
Estate Investment Trusts.--If any qualified tax credit bond
is held by a regulated investment company or a real estate
investment trust, the credit determined under subsection (a)
shall be allowed to shareholders of such company or
beneficiaries of such trust (and any gross income included
under subsection (f) with respect to such credit shall be
treated as distributed to such shareholders or beneficiaries)
under procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations
prescribed by the Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tax credit bond and
the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit
under this section shall be allowed to the person who on the
credit allowance date holds the instrument evidencing the
entitlement to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a
stripped bond and to the credit under this section as if it
were a stripped coupon.
``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of
this subpart, the term `new clean renewable energy bond'
means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for capital expenditures incurred by
public power providers, governmental bodies, or cooperative
electric companies for one or more qualified renewable energy
facilities,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--
[[Page H14406]]
``(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any
issuer shall not exceed the limitation amount allocated under
this subsection to such issuer.
``(2) National limitation on amount of bonds designated.--
There is a national new clean renewable energy bond
limitation of $2,000,000,000 which shall be allocated by the
Secretary as provided in paragraph (3), except that--
``(A) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of public power providers,
``(B) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of governmental bodies, and
``(C) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of cooperative electric
companies.
``(3) Method of allocation.--
``(A) Allocation among public power providers.--After the
Secretary determines the qualified projects of public power
providers which are appropriate for receiving an allocation
of the national new clean renewable energy bond limitation,
the Secretary shall, to the maximum extent practicable, make
allocations among such projects in such manner that the
amount allocated to each such project bears the same ratio to
the cost of such project as the limitation under paragraph
(2)(A) bears to the cost of all such projects.
``(B) Allocation among governmental bodies and cooperative
electric companies.--The Secretary shall make allocations of
the amount of the national new clean renewable energy bond
limitation described in paragraphs (2)(B) and (2)(C) among
qualified projects of governmental bodies and cooperative
electric companies, respectively, in such manner as the
Secretary determines appropriate.
``(c) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified
facility (as determined under section 45(d) without regard to
paragraphs (8) and (10) thereof and to any placed in service
date) owned by a public power provider, a governmental body,
or a cooperative electric company.
``(2) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power
Act (as in effect on the date of the enactment of this
paragraph).
``(3) Governmental body.--The term `governmental body'
means any State or Indian tribal government, or any political
subdivision thereof.
``(4) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C).
``(5) Clean renewable energy bond lender.--The term `clean
renewable energy bond lender' means a lender which is a
cooperative which is owned by, or has outstanding loans to,
100 or more cooperative electric companies and is in
existence on February 1, 2002, and shall include any
affiliated entity which is controlled by such lender.
``(6) Qualified issuer.--The term `qualified issuer' means
a public power provider, a governmental body, a cooperative
electric company, a clean renewable energy bond lender, or a
not-for-profit electric utility which has received a loan or
loan guarantee under the Rural Electrification Act.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding
at the end the following new paragraph:
``(9) Reporting of credit on qualified tax credit bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54A and such amounts shall be treated as paid on the
credit allowance date (as defined in section 54A(e)(1)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A) of this paragraph, subsection
(b)(4) of this section shall be applied without regard to
subparagraphs (A), (H), (I), (J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended
by striking ``subpart C'' and inserting ``subparts C and I''.
(2) Section 1397E(c)(2) is amended by striking ``subpart
H'' and inserting ``subparts H and I''.
(3) Section 6401(b)(1) is amended by striking ``and H'' and
inserting ``H, and I''.
(4) The heading of subpart H of part IV of subchapter A of
chapter 1 is amended by striking ``Certain Bonds'' and
inserting ``Clean Renewable Energy Bonds''.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by striking the item relating to subpart
H and inserting the following new items:
``subpart h. nonrefundable credit to holders of clean renewable energy
bonds.
``subpart i. qualified tax credit bonds.''.
(d) Application of Certain Labor Standards on Projects
Financed Under Tax Credit Bonds.--Subchapter IV of chapter 31
of title 40, United States Code, shall apply to projects
financed with the proceeds of any tax credit bond (as defined
in section 54A of the Internal Revenue Code of 1986).
(e) Effective Dates.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
PART II--PROVISIONS RELATING TO CARBON MITIGATION AND COAL
SEC. 1507. EXPANSION AND MODIFICATION OF ADVANCED COAL
PROJECT INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48A(a)
(relating to qualifying advanced coal project credit) is
amended by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and inserting
``, and'', and by adding at the end the following the
paragraph:
``(3) 30 percent of the qualified investment for such
taxable year in the case of projects described in clauses
(iii) or (iv) of subsection (d)(3)(B).''.
(b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A)
(relating to aggregate credits) is amended by striking
``$1,300,000,000'' and inserting ``$2,800,000,000''.
(c) Authorization of Additional Projects.--
(1) In general.--Subparagraph (B) of section 48A(d)(3)
(relating to aggregate credits) is amended to read as
follows:
``(B) Particular projects.--Of the dollar amount in
subparagraph (A), the Secretary is authorized to certify--
``(i) $800,000,000 for integrated gasification combined
cycle projects the application for which is submitted during
the period described in paragraph (2)(A)(i),
``(ii) $500,000,000 for projects which use other advanced
coal-based generation technologies the application for which
is submitted during the period described in paragraph
(2)(A)(i),
``(iii) $1,000,000,000 for integrated gasification combined
cycle projects the application for which is submitted during
the period described in paragraph (2)(A)(ii), and
``(iv) $500,000,000 for other advanced coal-based
generation technology projects the application for which is
submitted during the period described in paragraph
(2)(A)(ii).''.
(2) Application period for additional projects.--
Subparagraph (A) of section 48A(d)(2) (relating to
certification) is amended to read as follows:
``(A) Application period.--Each applicant for certification
under this paragraph shall submit an application meeting the
requirements of subparagraph (B). An applicant may only
submit an application--
``(i) for an allocation from the dollar amount specified in
clause (i) or (ii) of paragraph (3)(A) during the 3-year
period beginning on the date the Secretary establishes the
program under paragraph (1), and
``(ii) for an allocation from the dollar amount specified
in clause (iii) or (iv) of paragraph (3)(A) during the 3-year
period beginning at the earlier of the termination of the
period described in clause (i) or the date prescribed by the
Secretary.''.
(3) Capture and sequestration of carbon dioxide emissions
requirement.--
(A) In general.--Section 48A(e)(1) (relating to
requirements) is amended by striking ``and'' at the end of
subparagraph (E), by striking the period at the end of
subparagraph (F) and inserting ``; and'', and by adding at
the end the following new subparagraph:
``(G) in the case of any project the application for which
is submitted during the period described in subsection
(d)(2)(A)(ii), the project includes equipment which separates
and sequesters at least 65 percent (70 percent in the case of
an application for reallocated credits under subsection
(d)(4)) of such project's total carbon dioxide emissions.''.
(B) Highest priority for projects which sequester carbon
dioxide emissions.--Section 48A(e)(3) is amended by striking
``and'' at the end of subparagraph (A)(iii), by striking the
period at the end of subparagraph (B)(3) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(C) give highest priority to projects with the greatest
separation and sequestration percentage of total carbon
dioxide emissions.''.
(C) Recapture of credit for failure to sequester.--Section
48A (relating to qualifying advanced coal project credit) is
amended by adding at the end the following new subsection:
``(h) Recapture of Credit for Failure To Sequester.--The
Secretary shall provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any
project which fails to attain or maintain the separation and
sequestration requirements of subsection (e)(1)(G).''.
(4) Additional priority for research partnerships.--Section
48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
(A) by striking ``and'' at the end of clause (ii),
(B) by redesignating clause (iii) as clause (iv), and
(C) by inserting after clause (ii) the following new
clause:
``(iii) applicant participants who have a research
partnership with an eligible educational institution (as
defined in section 529(e)(5)), and''.
(5) Clerical amendment.--Section 48A(e)(3) is amended by
striking ``integrated gasification combined cycle'' in the
heading and inserting ``certain''.
[[Page H14407]]
(d) Competitive Certification Awards Modification
Authority.--Section 48A (relating to qualifying advanced coal
project credit), as amended by subsection (c)(3), is amended
by adding at the end the following new subsection:
``(i) Competitive Certification Awards Modification
Authority.--In implementing this section or section 48B, the
Secretary is directed to modify the terms of any competitive
certification award and any associated closing agreement
where such modification--
``(1) is consistent with the objectives of such section,
``(2) is requested by the recipient of the competitive
certification award, and
``(3) involves moving the project site to improve the
potential to capture and sequester carbon dioxide emissions,
reduce costs of transporting feedstock, and serve a broader
customer base,
unless the Secretary determines that the dollar amount of tax
credits available to the taxpayer under such section would
increase as a result of the modification or such modification
would result in such project not being originally certified.
In considering any such modification, the Secretary shall
consult with other relevant Federal agencies, including the
Department of Energy.''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to credits the application for which is submitted during the
period described in section 48A(d)(2)(A)(ii) of the Internal
Revenue Code of 1986 and which are allocated or reallocated
after the date of the enactment of this Act.
(2) Competitive certification awards modification
authority.--The amendment made by subsection (d) shall take
effect on the date of the enactment of this Act and is
applicable to all competitive certification awards entered
into under section 48A or 48B of the Internal Revenue Code of
1986, whether such awards were issued before, on, or after
such date of enactment.
(3) Technical amendment.--The amendment made by subsection
(c)(5) shall take effect as if included in the amendment made
by section 1307(b) of the Energy Tax Incentives Act of 2005.
SEC. 1508. EXPANSION AND MODIFICATION OF COAL GASIFICATION
INVESTMENT CREDIT.
(a) Credit Rate.--Section 48B(a) (relating to qualifying
gasification project credit) is amended by inserting ``(30
percent in the case of credits allocated under subsection
(d)(1)(B))'' after ``20 percent''.
(b) Expansion of Aggregate Credits.--Section 48B(d)(1)
(relating to qualifying gasification project program) is
amended by striking ``shall not exceed $350,000,000'' and all
that follows and inserting ``shall not exceed--
``(A) $350,000,000, plus
``(B) $500,000,000 for qualifying gasification projects
that include equipment which separates and sequesters at
least 75 percent of such a project's total carbon dioxide
emissions,
under rules similar to the rules of section 48A(d)(4).''.
(c) Recapture of Credit for Failure to Sequester.--Section
48B (relating to qualifying gasification project credit) is
amended by adding at the end the following new subsection:
``(f) Recapture of Credit for Failure to Sequester.--The
Secretary shall provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any
project which fails to attain or maintain the separation and
sequestration requirements for such project under subsection
(d)(1).''.
(d) Selection Priorities.--Section 48B(d) (relating to
qualifying gasification project program) is amended by adding
at the end the following new paragraph:
``(4) Selection priorities.--In determining which
qualifying gasification projects to certify under this
section, the Secretary shall--
``(A) give highest priority to projects with the greatest
separation and sequestration percentage of total carbon
dioxide emissions, and
``(B) give high priority to applicant participants who have
a research partnership with an eligible educational
institution (as defined in section 529(e)(5)).''.
(e) Effective Date.--The amendments made by this section
shall apply to credits described in section 48B(d)(1)(B) of
the Internal Revenue Code of 1986 which are allocated or
reallocated after the date of the enactment of this Act.
SEC. 1509. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED CARBON DIOXIDE
PIPELINE PROPERTY.
(a) In General.--Section 168(e)(3)(C) (defining 7-year
property) is amended by striking ``and'' at the end of clause
(iv), by redesignating clause (v) as clause (vi), and by
inserting after clause (iv) the following new clause:
``(v) any qualified carbon dioxide pipeline property--
``(I) the original use of which commences with the taxpayer
after the date of the enactment of this clause,
``(II) the original purpose of which is to transport carbon
dioxide, and
``(III) which is placed in service before January 1, 2011,
and''.
(b) Definition of Qualified Carbon Dioxide Pipeline
Property.--Section 168(e) (relating to classification of
property) is amended by inserting at the end the following
new paragraph:
``(8) Qualified carbon dioxide pipeline property.--
``(A) In general.--The term `qualified carbon dioxide
pipeline property' means property which is used in the United
States solely to transmit qualified carbon dioxide from the
point of capture to a secure geological storage or the point
at which such qualified carbon dioxide is used as a tertiary
injectant.
``(B) Definitions and special rules.--For purposes of this
paragraph--
``(i) Qualified carbon dioxide.--The term `qualified carbon
dioxide' means carbon dioxide captured from an industrial
source which--
``(I) would otherwise be released into the atmosphere as
industrial emission of greenhouse gas, and
``(II) is measured at the source of capture and verified at
the point of disposal or injection.
``(ii) Secure geological storage.--The Secretary, in
consultation with the Administrator of the Environmental
Protection Agency, shall establish regulations for
determining adequate security measures for the geological
storage of carbon dioxide under subparagraph (A) such that
the carbon dioxide does not escape into the atmosphere. Such
term shall include storage at deep saline formations and
unminable coal seems under such conditions as the Secretary
may determine under such regulations.
``(iii) Tertiary injectant.--The term `tertiary injectant'
has the same meaning as when used within section
193(b)(1).''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 1510. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO
CERTAIN COAL PRODUCERS AND EXPORTERS.
(a) Refund.--
(1) Coal producers.--
(A) In general.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, if--
(i) a coal producer establishes that such coal producer, or
a party related to such coal producer, exported coal produced
by such coal producer to a foreign country or shipped coal
produced by such coal producer to a possession of the United
States, the export or shipment of which was other than
through an exporter who has filed a claim for a refund under
paragraph (2),
(ii) such coal producer filed a return on or after October
1, 1990, and on or before the date of the enactment of this
Act, and
(iii) such coal producer files a claim for refund not later
than the close of the 30-day period beginning on the date of
the enactment of this Act,
then the Secretary of the Treasury shall pay to such coal
producer an amount equal to the tax paid under section 4121
of such Code on such coal exported by the coal producer or a
party related to such coal producer.
(B) Special rules for certain taxpayers.--For purposes of
this section--
(i) Establishment of export.--If a coal producer or a party
related to a coal producer has received a judgment described
in clause (iii), such coal producer shall be deemed to have
established the export of coal to a foreign country or
shipment of coal to a possession of the United States under
subparagraph (A)(i).
(ii) Amount of payment.--If a taxpayer described in clause
(i) is entitled to a payment under subparagraph (A), the
amount of such payment shall be reduced by any amount awarded
under the judgment described in clause (iii).
(iii) Judgment described.--A judgment is described in this
subparagraph if such judgment--
(I) is made by a court of competent jurisdiction within the
United States,
(II) relates to the constitutionality of any tax paid on
exported coal under section 4121 of the Internal Revenue Code
of 1986, and
(III) is in favor of the coal producer or the party related
to the coal producer.
(iv) Recapture.--In the case any judgment described in
clause (iii) is overturned, the coal producer shall pay to
the Secretary the amount of any payment received under
subparagraph (A) unless the coal producer establishes the
export of the coal to a foreign country or shipment of coal
to a possession of the United States.
(2) Exporters.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, and a judgment described in paragraph (1)(B)(iii) of
this subsection, if--
(A) an exporter establishes that such exporter exported
coal to a foreign country or shipped coal to a possession of
the United States, or caused such coal to be so exported or
shipped,
(B) such exporter filed a return on or after October 1,
1990, and on or before the date of the enactment of this Act,
and
(C) such exporter files a claim for refund not later than
the close of the 30-day period beginning on the date of the
enactment of this Act,
then the Secretary of the Treasury shall pay to such exporter
an amount equal to $0.825 per ton of such coal exported by
the exporter or caused to be exported by the exporter.
(b) Limitations.--Subsection (a) shall not apply with
respect to exported coal if a credit or refund of tax imposed
by section 4121 of
[[Page H14408]]
such Code on such coal has been allowed or made to, or if a
settlement with the Federal Government has been made with and
accepted by, the coal producer, a party related to such coal
producer, or the exporter, of such coal, as of the date that
the claim is filed under this section with respect to such
exported coal. For purposes of this subsection, the term
``settlement with the Federal Government'' shall not include
any settlement or stipulation entered into as of the date of
the enactment of this Act, the terms of which contemplate a
judgment concerning which any party has reserved the right to
file an appeal, or has filed an appeal.
(c) Subsequent Refund Prohibited.--No refund shall be made
under this section to the extent that a credit or refund of
such tax on such exported coal has been paid to any person.
(d) Definitions.--For purposes of this section--
(1) Coal producer.--The term ``coal producer'' means the
person in whom is vested ownership of the coal immediately
after the coal is severed from the ground, without regard to
the existence of any contractual arrangement for the sale or
other disposition of the coal or the payment of any royalties
between the producer and third parties. The term includes any
person who extracts coal from coal waste refuse piles or from
the silt waste product which results from the wet washing (or
similar processing) of coal.
(2) Exporter.--The term ``exporter'' means a person, other
than a coal producer, who does not have a contract, fee
arrangement, or any other agreement with a producer or seller
of such coal to sell or export such coal to a third party on
behalf of the producer or seller of such coal and--
(A) is indicated in the shipper's export declaration or
other documentation as the exporter of record, or
(B) actually exported such coal to a foreign country or
shipped such coal to a possession of the United States, or
caused such coal to be so exported or shipped.
(3) Related party.--The term ``a party related to such coal
producer'' means a person who--
(A) is related to such coal producer through any degree of
common management, stock ownership, or voting control,
(B) is related (within the meaning of section 144(a)(3) of
such Code) to such coal producer, or
(C) has a contract, fee arrangement, or any other agreement
with such coal producer to sell such coal to a third party on
behalf of such coal producer.
(e) Timing of Refund.--With respect to any claim for refund
filed pursuant to this section, the Secretary of the Treasury
shall determine whether the requirements of this section are
met not later than 180 days after such claim is filed. If the
Secretary determines that the requirements of this section
are met, the claim for refund shall be paid not later than
180 days after the Secretary makes such determination.
(f) Interest.--Any refund paid pursuant to this section
shall be paid by the Secretary of the Treasury with interest
from the date of overpayment determined by using the
overpayment rate and method under section 6621 of such Code.
(g) Denial of Double Benefit.--The payment under subsection
(a) with respect to any coal shall not exceed--
(1) in the case of a payment to a coal producer, the amount
of tax paid under section 4121 of the Internal Revenue Code
of 1986 with respect to such coal by such coal producer or a
party related to such coal producer, and
(2) in the case of a payment to an exporter, an amount
equal to $0.825 per ton with respect to such coal exported by
the exporter or caused to be exported by the exporter.
(h) Application of Section.--This section applies only to
claims on coal exported on or after October 1, 1990, through
the date of the enactment of this Act.
(i) Standing Not Conferred.--
(1) Exporters.--With respect to exporters, this section
shall not confer standing upon an exporter to commence, or
intervene in, any judicial or administrative proceeding
concerning a claim for refund by a coal producer of any
Federal or State tax, fee, or royalty paid by the coal
producer.
(2) Coal producers.--With respect to coal producers, this
section shall not confer standing upon a coal producer to
commence, or intervene in, any judicial or administrative
proceeding concerning a claim for refund by an exporter of
any Federal or State tax, fee, or royalty paid by the
producer and alleged to have been passed on to an exporter.
SEC. 1511. EXTENSION OF TEMPORARY INCREASE IN COAL EXCISE
TAX.
Paragraph (2) of section 4121(e) (relating to temporary
increase termination date) is amended--
(1) by striking ``January 1, 2014'' in clause (i) and
inserting ``December 31, 2017'', and
(2) by striking ``January 1 after 1981'' in clause (ii) and
inserting ``December 31 after 2007''.
SEC. 1512. CARBON AUDIT OF THE TAX CODE.
(a) Study.--The Secretary of the Treasury shall enter into
an agreement with the National Academy of Sciences to
undertake a comprehensive review of the Internal Revenue Code
of 1986 to identify the types of and specific tax provisions
that have the largest effects on carbon and other greenhouse
gas emissions and to estimate the magnitude of those effects.
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences shall
submit to Congress a report containing the results of study
authorized under this section.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,500,000 for
the period of fiscal years 2008 and 2009.
Subtitle B--Transportation and Domestic Fuel Security
PART I--BIOFUELS
SEC. 1521. CREDIT FOR PRODUCTION OF CELLULOSIC BIOMASS
ALCOHOL.
(a) In General.--Subsection (a) of section 40 (relating to
alcohol used as fuel) is amended by striking ``plus'' at the
end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(4) the cellulosic alcohol producer credit.''.
(b) Cellulosic Alcohol Producer Credit.--
(1) In general.--Subsection (b) of section 40 is amended by
redesignating paragraph (5) as paragraph (6) and by inserting
after paragraph (4) the following new paragraph:
``(5) Cellulosic alcohol producer credit.--
``(A) In general.--The cellulosic alcohol producer credit
for the taxable year is an amount equal to the applicable
amount for each gallon of qualified cellulosic alcohol
production.
``(B) Applicable amount.--For purposes of subparagraph (A),
the applicable amount means the excess of--
``(i) $1.01, over
``(ii) the amount of the credit in effect for alcohol which
is ethanol under subsection (b)(1) (without regard to
subsection (b)(3)) at the time of the qualified cellulosic
alcohol production.
``(C) Limitation.--
``(i) In general.--No credit shall be allowed to any
taxpayer under subparagraph (A) with respect to any qualified
cellulosic alcohol production during the taxable year in
excess of 60,000,000 gallons.
``(ii) Aggregation rule.--For purposes of clause (i), all
members of the same controlled group of corporations (within
the meaning of section 267(f)) and all persons under common
control (within the meaning of section 52(b) but determined
by treating an interest of more than 50 percent as a
controlling interest) shall be treated as 1 person.
``(iii) Partnership, s corporations, and other pass-thru
entities.--In the case of a partnership, trust, S
corporation, or other pass-thru entity, the limitation
contained in clause (i) shall be applied at the entity level
and at the partner or similar level.
``(D) Qualified cellulosic alcohol production.--For
purposes of this section, the term `qualified cellulosic
alcohol production' means any cellulosic biomass alcohol
which is produced by the taxpayer and which during the
taxable year--
``(i) is sold by the taxpayer to another person--
``(I) for use by such other person in the production of a
qualified alcohol mixture in such other person's trade or
business (other than casual off-farm production),
``(II) for use by such other person as a fuel in a trade or
business, or
``(III) who sells such cellulosic biomass alcohol at retail
to another person and places such cellulosic biomass alcohol
in the fuel tank of such other person, or
``(ii) is used or sold by the taxpayer for any purpose
described in clause (i).
The qualified cellulosic alcohol production of any taxpayer
for any taxable year shall not include any alcohol which is
purchased by the taxpayer and with respect to which such
producer increases the proof of the alcohol by additional
distillation.
``(E) Cellulosic biomass alcohol.--
``(i) In general.--The term `cellulosic biomass alcohol'
has the meaning given such term under section 168(l)(3), but
does not include any alcohol with a proof of less than 150.
``(ii) Determination of proof.--The determination of the
proof of any alcohol shall be made without regard to any
added denaturants.
``(F) Coordination with small ethanol producer credit.--No
small ethanol producer credit shall be allowed with respect
to any qualified cellulosic alcohol production if credit is
determined with respect to such production under this
paragraph.
``(G) Allocation of cellulosic producer credit to patrons
of cooperative.--Rules similar to the rules under subsection
(g)(6) shall apply for purposes of this paragraph.
``(H) Application of paragraph.--This paragraph shall apply
with respect to qualified cellulosic alcohol production after
December 31, 2007, and before January 1, 2014.''.
(2) Termination date not to apply.--Subsection (e) of
section 40 (relating to termination) is amended--
(A) by inserting ``or subsection (b)(5)(H)'' after ``by
reason of paragraph (1)'' in paragraph (2), and
(B) by adding at the end the following new paragraph:
``(3) Exception for cellulosic alcohol producer credit.--
Paragraph (1) shall not apply to the portion of the credit
allowed under this section by reason of subsection (a)(4).''.
(c) Alcohol Not Used as a Fuel, etc.--
[[Page H14409]]
(1) In general.--Paragraph (3) of section 40(d) is amended
by redesignating subparagraph (D) as subparagraph (E) and by
inserting after subparagraph (C) the following new
subparagraph:
``(D) Cellulosic alcohol producer credit.--If--
``(i) any credit is determined under subsection (a)(4), and
``(ii) any person does not use such fuel for a purpose
described in subsection (b)(5)(D),
then there is hereby imposed on such person a tax equal to
the applicable amount for each gallon of such cellulosic
biomass alcohol.''.
(2) Conforming amendments.--
(A) Subparagraph (C) of section 40(d)(3) is amended by
striking ``producer'' in the heading and inserting ``small
ethanol producer''.
(B) Subparagraph (E) of section 40(d)(3), as redesignated
by paragraph (1), is amended by striking ``or (C)'' and
inserting ``(C), or (D)''.
(d) Limitation to Cellulosic Alcohol With Connection to the
United States.--Subsection (d) of section 40, as amended by
this Act, is amended by adding at the end the following new
paragraph:
``(7) Limitation to cellulosic alcohol with connection to
the united states.--No cellulosic alcohol producer credit
shall be determined under subsection (a) with respect to any
alcohol unless such alcohol is produced in the United
States.''.
(e) Effective Date.--The amendments made by this section
shall apply to fuel produced after December 31, 2007.
SEC. 1522. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC
BIOMASS ALCOHOL FUEL PLANT PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) (relating
to special allowance for cellulosic biomass ethanol plant
property) is amended to read as follows:
``(3) Cellulosic biomass alcohol.--For purposes of this
subsection, the term `cellulosic biomass alcohol' means any
alcohol produced from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recurring
basis.''.
(b) Conforming Amendments.--
(1) Subsection (l) of section 168 is amended by striking
``cellulosic biomass ethanol'' each place it appears and
inserting ``cellulosic biomass alcohol''.
(2) The heading of section 168(l) is amended by striking
``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic
Biomass Alcohol''.
(3) The heading of paragraph (2) of section 168(l) is
amended by striking ``cellulosic biomass ethanol'' and
inserting ``cellulosic biomass alcohol''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
SEC. 1523. MODIFICATION OF ALCOHOL CREDIT.
(a) Income Tax Credit.--Subsection (h) of section 40
(relating to reduced credit for ethanol blenders) is amended
by adding at the end the following new paragraph:
``(3) Reduced amount after sale of 7,500,000,000 gallons.--
``(A) In general.--In the case of any calendar year
beginning after the calendar year described in subparagraph
(B), the last row in the table in paragraph (2) shall be
applied by substituting `46 cents' for `51 cents'.
``(B) Calendar year described.--The calendar year described
in this subparagraph is the first calendar year beginning
after 2007 during which 7,500,000,000 gallons of ethanol
(including cellulosic ethanol) have been produced in or
imported into the United States, as certified by the
Secretary, in consultation with the Administrator of the
Environmental Protection Agency.''.
(b) Excise Tax Credit.--
(1) In general.--Paragraph (2) of section 6426(b) (relating
to alcohol fuel mixture credit) is amended by adding at the
end the following new subparagraph:
``(C) Reduced amount after sale of 7,500,000,000 gallons.--
In the case of any alcohol fuel mixture produced in a
calendar year beginning after the calendar year described in
section 40(h)(3)(B), subparagraph (A) shall be applied by
substituting `46 cents' for `51 cents'.''.
(2) Conforming amendment.--Subparagraph (A) of section
6426(b)(2) is amended by striking ``subparagraph (B)'' and
inserting ``subparagraphs (B) and (C)''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 1524. EXTENSION AND MODIFICATION OF CREDITS FOR
BIODIESEL AND RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and
6427(e)(5)(B) are each amended by striking ``December 31,
2008'' and inserting ``December 31, 2010''.
(b) Uniform Treatment of Diesel Produced From Biomass.--
Paragraph (3) of section 40A(f) is amended--
(1) by striking ``using a thermal depolymerization
process'', and
(2) by striking ``or D396'' in subparagraph (B) and
inserting ``or other equivalent standard approved by the
Secretary for fuels to be used in diesel-powered highway
vehicles''.
(c) Eligibility of Certain Aviation Fuel.--Paragraph (3) of
section 40A(f) (defining renewable diesel) is amended by
adding at the end the following new flush sentence:
``The term `renewable diesel' also means fuel derived from
biomass which meets the requirements of a Department of
Defense specification for military jet fuel or an American
Society of Testing and Materials specification for aviation
turbine fuel.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after the date of the enactment of this
Act.
(2) Uniform treatment of diesel produced from biomass.--The
amendments made by subsection (b) shall apply to fuel
produced, and sold or used, after the date which is 30 days
after the date of the enactment of this Act.
SEC. 1525. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL
CREDIT.
(a) Coproduction With Petroleum Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f) (defining
renewable diesel), as amended by this Act, is amended by
adding at the end the following sentence: ``Such term does
not include any fuel derived from coprocessing biomass with a
feedstock which is not biomass. For purposes of this
paragraph, the term `biomass' has the meaning given such term
by section 45K(c)(3).''
(2) Conforming amendment.--Paragraph (3) of section 40A(f)
is amended by striking ``(as defined in section 45K(c)(3))''.
(b) Clarification of Eligibility for Alternative Fuel
Credit.--
(1) In general.--Subparagraph (F) of section 6426(d)(2) is
amended by striking ``hydrocarbons'' and inserting ``fuel''.
(2) Conforming amendment.--Section 6426 is amended by
adding at the end the following new subsection:
``(h) Denial of Double Benefit.--No credit shall be
determined under subsection (d) or (e) with respect to any
fuel with respect to which credit may be determined under
subsection (b) or (c) or under section 40 or 40A.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after December 31, 2007.
(2) Clarification of eligibility for alternative fuel
credit.--The amendment made by subsection (b) shall take
effect as if included in section 11113 of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users.
SEC. 1526. PROVISIONS CLARIFYING TREATMENT OF FUELS WITH NO
NEXUS TO THE UNITED STATES.
(a) Alcohol Fuels Credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--No credit shall be determined under this section
with respect to any alcohol which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(b) Biodiesel Fuels Credit.--Subsection (d) of section 40A
is amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(c) Excise Tax Credit.--
(1) In general.--Section 6426, as amended by this Act, is
amended by adding at the end the following new subsection:
``(i) Limitation to Fuels With Connection to the United
States.--
``(1) Alcohol.--No credit shall be determined under this
section with respect to any alcohol which is produced outside
the United States for use as a fuel outside the United
States.
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel which is produced outside the United
States for use as a fuel outside the United States.
For purposes of this subsection, the term `United States'
includes any possession of the United States.''.
(2) Conforming amendment.--Subsection (e) of section 6427
is amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new
paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or
(2) with respect to any mixture or alternative fuel if credit
is not allowed with respect to such mixture or alternative
fuel by reason of section 6426(i).''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect as if included in section 301 of the American Jobs
Creation Act of 2004.
(2) Alternative fuel credits.--So much of the amendments
made by this section as relate to the alternative fuel credit
or the alternative fuel mixture credit shall take effect as
if included in section 11113 of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for
Users.
(3) Renewable diesel.--So much of the amendments made by
this section as relate to renewable diesel shall take effect
as if included in section 1346 of the Energy Policy Act of
2005.
[[Page H14410]]
SEC. 1527. COMPREHENSIVE STUDY OF BIOFUELS.
(a) Study.--The Secretary of the Treasury, in consultation
with the Secretary of Agriculture, the Secretary of Energy,
and the Administrator of the Environmental Protection Agency,
shall enter into an agreement with the National Academy of
Sciences to produce an analysis of current scientific
findings to determine--
(1) current biofuels production, as well as projections for
future production,
(2) the maximum amount of biofuels production capable on
United States farmland,
(3) the domestic effects of a dramatic increase in biofuels
production on, for example--
(A) the price of fuel,
(B) the price of land in rural and suburban communities,
(C) crop acreage and other land use,
(D) the environment, due to changes in crop acreage,
fertilizer use, runoff, water use, emissions from vehicles
utilizing biofuels, and other factors,
(E) the price of feed,
(F) the selling price of grain crops,
(G) exports and imports of grains,
(H) taxpayers, through cost or savings to commodity crop
payments, and
(I) the expansion of refinery capacity,
(4) the ability to convert corn ethanol plants for other
uses, such as cellulosic ethanol or biodiesel,
(5) a comparative analysis of corn ethanol versus other
biofuels and renewable energy sources, considering cost,
energy output, and ease of implementation, and
(6) the need for additional scientific inquiry, and
specific areas of interest for future research.
(b) Report.--The National Academy of Sciences shall submit
an initial report of the findings of the report required
under subsection (a) to the Congress not later than 3 months
after the date of the enactment of this Act, and a final
report not later than 6 months after such date of enactment.
PART II--ADVANCED TECHNOLOGY MOTOR VEHICLES
SEC. 1528. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE
MOTOR VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 (relating to other credits) is amended by adding at
the end the following new section:
``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each new
qualified plug-in electric drive motor vehicle placed in
service by the taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any new qualified plug-in electric
drive motor vehicle is the sum of the amounts determined
under paragraphs (2) and (3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this
paragraph is $3,000.
``(3) Battery capacity.--In the case of a vehicle which
draws propulsion energy from a battery with not less than 5
kilowatt hours of capacity, the amount determined under this
paragraph is $200, plus $200 for each kilowatt hour of
capacity in excess of 5 kilowatt hours. The amount determined
under this paragraph shall not exceed $2,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without
regard to this subsection) that is attributable to property
of a character subject to an allowance for depreciation shall
be treated as a credit listed in section 38(b) for such
taxable year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the credit
allowed under subsection (a) for any taxable year (determined
after application of paragraph (1)) shall be treated as a
credit allowable under subpart A for such taxable year.
``(B) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall not
exceed the excess of--
``(i) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under subpart A
(other than this section and sections 23 and 25D) and section
27 for the taxable year.
``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--
For purposes of this section--
``(1) In general.--The term `new qualified plug-in electric
drive motor vehicle' means a motor vehicle (as defined in
section 30(c)(2))--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the taxpayer
and not for resale,
``(C) which is made by a manufacturer,
``(D) which has a gross vehicle weight rating of less than
14,000 pounds,
``(E) which has received a certificate of conformity under
the Clean Air Act and meets or exceeds the Bin 5 Tier II
emission standard established in regulations prescribed by
the Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make and
model year vehicle, and
``(F) which is propelled to a significant extent by an
electric motor which draws electricity from a battery which--
``(i) has a capacity of not less than 4 kilowatt hours, and
``(ii) is capable of being recharged from an external
source of electricity.
``(2) Exception.--The term `new qualified plug-in electric
drive motor vehicle' shall not include any vehicle which is
not a passenger automobile or light truck if such vehicle has
a gross vehicle weight rating of less than 8,500 pounds.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given
such terms in regulations prescribed by the Administrator of
the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C.
7521 et seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours,
as measured from a 100 percent state of charge to a 0 percent
state of charge.
``(e) Limitation on Number of New Qualified Plug-in
Electric Drive Motor Vehicles Eligible for Credit.--
``(1) In general.--In the case of a new qualified plug-in
electric drive motor vehicle sold during the phaseout period,
only the applicable percentage of the credit otherwise
allowable under subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection,
the phaseout period is the period beginning with the second
calendar quarter following the calendar quarter which
includes the first date on which the number of new qualified
plug-in electric drive motor vehicles manufactured by the
manufacturer of the vehicle referred to in paragraph (1) sold
for use in the United States after the date of the enactment
of this section, is at least 60,000.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters of the
phaseout period,
``(B) 25 percent for the 3d and 4th calendar quarters of
the phaseout period, and
``(C) 0 percent for each calendar quarter thereafter.
``(4) Controlled groups.--Rules similar to the rules of
section 30B(f)(4) shall apply for purposes of this
subsection.
``(f) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced
by the amount of such credit (determined without regard to
subsection (c)).
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which
ceases to be property eligible for such credit.
``(3) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b)(1)
or with respect to the portion of the cost of any property
taken into account under section 179.
``(4) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(5) Property used by tax-exempt entity; interaction with
air quality and motor vehicle safety standards.--Rules
similar to the rules of paragraphs (6) and (10) of section
30B(h) shall apply for purposes of this section.''.
(b) Coordination With Alternative Motor Vehicle Credit.--
Section 30B(d)(3) is amended by adding at the end the
following new subparagraph:
``(D) Exclusion of plug-in vehicles.--Any vehicle with
respect to which a credit is allowable under section 30D
(determined without regard to subsection (c) thereof) shall
not be taken into account under this section.''.
(c) Credit Made Part of General Business Credit.--Section
38(b), as amended by this Act, is amended--
(1) by striking ``and'' each place it appears at the end of
any paragraph,
(2) by striking ``plus'' each place it appears at the end
of any paragraph,
(3) by striking the period at the end of paragraph (31) and
inserting ``, plus'', and
(4) by adding at the end the following new paragraph:
``(32) the portion of the new qualified plug-in electric
drive motor vehicle credit to which section 30D(c)(1)
applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by this Act, is
amended by striking ``and 25D'' and inserting ``25D, and
30D''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30D,'' after ``25D,''.
(C) Section 25B(g)(2), as amended by this Act, is amended
by striking ``and 25D'' and inserting ``, 25D, and 30D''.
(D) Section 26(a)(1), as amended by this Act, is amended by
striking ``and 25D'' and inserting ``25D, and 30D''.
(E) Section 1400C(d)(2) is amended by striking ``and 25D''
and inserting ``25D, and 30D''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (36), by striking the period at the end of
paragraph (37)
[[Page H14411]]
and inserting ``, and'', and by adding at the end the
following new paragraph:
``(38) to the extent provided in section 30D(f)(1).''.
(3) Section 6501(m) is amended by inserting ``30D(f)(4),''
after ``30C(e)(5),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 30D. New qualified plug-in electric drive motor vehicles.''.
(e) Treatment of Alternative Motor Vehicle Credit as a
Personal Credit.--
(1) In general.--Paragraph (2) of section 30B(g) is amended
to read as follows:
``(2) Personal credit.--The credit allowed under subsection
(a) for any taxable year (after application of paragraph (1))
shall be treated as a credit allowable under subpart A for
such taxable year.''.
(2) Conforming amendments.--
(A) Subparagraph (A) of section 30C(d)(2) is amended by
striking ``sections 27, 30, and 30B'' and inserting
``sections 27 and 30''.
(B) Paragraph (3) of section 55(c) is amended by striking
``30B(g)(2),''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years beginning after December 31, 2007.
(2) Treatment of alternative motor vehicle credit as
personal credit.--The amendments made by subsection (e) shall
apply to taxable years beginning after December 31, 2006.
(g) Application of EGTRRA Sunset.--The amendment made by
subsection (d)(1)(A) shall be subject to title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 in
the same manner as the provision of such Act to which such
amendment relates.
SEC. 1529. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING
REDUCTION UNITS AND ADVANCED INSULATION.
(a) In General.--Section 4053 (relating to exemptions) is
amended by adding at the end the following new paragraphs:
``(9) Idling reduction device.--Any device or system of
devices which--
``(A) is designed to provide to a vehicle those services
(such as heat, air conditioning, or electricity) that would
otherwise require the operation of the main drive engine
while the vehicle is temporarily parked or remains stationary
using either--
``(i) an all electric unit, such as a battery powered unit
or from grid-supplied electricity, or
``(ii) a dual fuel unit powered by diesel or other fuels,
and capable of providing such services from grid-supplied
electricity or on-truck batteries alone, and
``(B) is certified by the Secretary of Energy, in
consultation with the Administrator of the Environmental
Protection Agency and the Secretary of Transportation, to
reduce long-duration idling of such vehicle at a motor
vehicle rest stop or other location where such vehicles are
temporarily parked or remain stationary.
For purposes of subparagraph (B), the term `long-duration
idling' means the operation of a main drive engine, for a
period greater than 15 consecutive minutes, where the main
drive engine is not engaged in gear. Such term does not apply
to routine stoppages associated with traffic movement or
congestion.
``(10) Advanced insulation.--Any insulation that has an R
value of not less than R35 per inch.''.
(b) Effective Date.--The amendment made by this section
shall apply to sales or installations after December 31,
2007.
PART III--OTHER TRANSPORTATION PROVISIONS
SEC. 1530. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX
CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is
amended by redesignating section 1400L as section 1400K and
by adding at the end the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against
any taxes imposed for any payroll period by section 3402 for
which such governmental unit is liable under section 3403 an
amount equal to so much of the portion of the qualifying
project expenditure amount allocated under subsection (b)(3)
to such governmental unit for the calendar year as is
allocated by such governmental unit to such period under
subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes
of this section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum
of--
``(A) the total expenditures paid or incurred during such
calendar year by all New York Liberty Zone governmental units
and the Port Authority of New York and New Jersey for any
portion of qualifying projects located wholly within the City
of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any preceding calendar year which
begins after the date of enactment of this section, and
``(ii) not previously allocated under paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports,
and waterways, in or connecting with the New York Liberty
Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the
Governor of the State of New York and the Mayor of the City
of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New York
and the Mayor of the City of New York, New York, shall
jointly allocate to each New York Liberty Zone governmental
unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit
under subsection (a) for any calendar year in the credit
period.
``(B) Aggregate limit.--The aggregate amount which may be
allocated under subparagraph (A) for all calendar years in
the credit period shall not exceed $2,000,000,000.
``(C) Annual limit.--The aggregate amount which may be
allocated under subparagraph (A) for any calendar year in the
credit period shall not exceed the sum of--
``(i) $115,000,000 ($425,000,000 in the case of the last 2
years in the credit period), plus
``(ii) the aggregate amount authorized to be allocated
under this paragraph for all preceding calendar years in the
credit period which was not so allocated.
``(D) Unallocated amounts at end of credit period.--If, as
of the close of the credit period, the amount under
subparagraph (B) exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the credit period,
the Governor of the State of New York and the Mayor of the
City of New York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year in the
5-year period following the credit period an amount equal
to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project expenditure amount for such
calendar year, reduced by
``(ii) the aggregate amount allocated under this
subparagraph for all preceding calendar years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it
under subsection (b)(3) within the time prescribed by the
Governor of the State of New York and the Mayor of the City
of New York, New York, then such amount shall after such time
be treated for purposes of subsection (b)(3) in the same
manner as if it had never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
12-year period beginning on January 1, 2008.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State or City.
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for
the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having
paid to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit
allowed to such entity under subsection (a) with respect to
such wages, but only if such governmental unit deducts and
withholds wages for such payroll period under section 3401
(relating to wage withholding).
``(e) Reporting.--The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly
submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for the
calendar year, and
``(B) the amount allocated to each New York Liberty Zone
governmental unit under subsection (b)(3) for the calendar
year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance
as may be necessary or appropriate to ensure compliance with
the purposes of this section.''.
[[Page H14412]]
(b) Termination of Special Allowance and Expensing.--
Subparagraph (A) of section 1400K(b)(2), as redesignated by
subsection (a), is amended by striking the parenthetical
therein and inserting ``(in the case of nonresidential real
property and residential rental property, the date of the
enactment of the Clean Renewable Energy and Conservation Tax
Act of 2007 or, if acquired pursuant to a binding contract in
effect on such enactment date, December 31, 2009)''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``section
1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by redesignating the item relating to
section 1400L as an item relating to section 1400K and by
inserting after such item the following new item:
``Sec. 1400L. New York Liberty Zone tax credits.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 1531. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO
BICYCLE COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) of the
Internal Revenue Code of 1986 (relating to general rule for
qualified transportation fringe) is amended by adding at the
end the following:
``(D) Any qualified bicycle commuting reimbursement.''.
(b) Limitation on Exclusion.--Paragraph (2) of section
132(f) of such Code is amended by striking ``and'' at the end
of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(C) the applicable annual limitation in the case of any
qualified bicycle commuting reimbursement.''.
(c) Definitions.--Paragraph (5) of section 132(f) of such
Code (relating to definitions) is amended by adding at the
end the following:
``(F) Definitions related to bicycle commuting
reimbursement.--
``(i) Qualified bicycle commuting reimbursement.--The term
`qualified bicycle commuting reimbursement' means, with
respect to any calendar year, any employer reimbursement
during the 15-month period beginning with the first day of
such calendar year for reasonable expenses incurred by the
employee during such calendar year for the purchase of a
bicycle and bicycle improvements, repair, and storage, if
such bicycle is regularly used for travel between the
employee's residence and place of employment.
``(ii) Applicable annual limitation.--The term `applicable
annual limitation' means, with respect to any employee for
any calendar year, the product of $20 multiplied by the
number of qualified bicycle commuting months during such
year.
``(iii) Qualified bicycle commuting month.--The term
`qualified bicycle commuting month' means, with respect to
any employee, any month during which such employee--
``(I) regularly uses the bicycle for a substantial portion
of the travel between the employee's residence and place of
employment, and
``(II) does not receive any benefit described in
subparagraph (A), (B), or (C) of paragraph (1).''.
(d) Constructive Receipt of Benefit.--Paragraph (4) of
section 132(f) is amended by inserting ``(other than a
qualified bicycle commuting reimbursement)'' after
``qualified transportation fringe''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
Subtitle C--Energy Conservation and Efficiency
PART I--CONSERVATION TAX CREDIT BONDS
SEC. 1541. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1, as added by this title, is amended by adding at
the end the following new section:
``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of
this subchapter, the term `qualified energy conservation
bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for one or more qualified conservation
purposes,
``(2) the bond is issued by a State or local government,
and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The
maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not
exceed the limitation amount allocated to such issuer under
subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond
limitation of $3,000,000,000.
``(d) Allocations.--
``(1) In general.--The limitation applicable under
subsection (c) shall be allocated by the Secretary among the
States in proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in which there
is a large local government, each such local government shall
be allocated a portion of such State's allocation which bears
the same ratio to the State's allocation (determined without
regard to this subparagraph) as the population of such large
local government bears to the population of such State.
``(B) Allocation of unused limitation to state.--The amount
allocated under this subsection to a large local government
may be reallocated by such local government to the State in
which such local government is located.
``(C) Large local government.--For purposes of this
section, the term `large local government' means any
municipality or county if such municipality or county has a
population of 100,000 or more.
``(3) Allocation to issuers; restriction on private
activity bonds.--Any allocation under this subsection to a
State or large local government shall be allocated by such
State or large local government to issuers within the State
in a manner that results in not less than 70 percent of the
allocation to such State or large local government being used
to designate bonds which are not private activity bonds.
``(e) Qualified Conservation Purpose.--For purposes of this
section--
``(1) In general.--The term `qualified conservation
purpose' means any of the following:
``(A) Capital expenditures incurred for purposes of--
``(i) reducing energy consumption in publicly-owned
buildings by at least 20 percent,
``(ii) implementing green community programs, or
``(iii) rural development involving the production of
electricity from renewable energy resources.
``(B) Expenditures with respect to research facilities, and
research grants, to support research in--
``(i) development of cellulosic ethanol or other nonfossil
fuels,
``(ii) technologies for the capture and sequestration of
carbon dioxide produced through the use of fossil fuels,
``(iii) increasing the efficiency of existing technologies
for producing nonfossil fuels,
``(iv) automobile battery technologies and other
technologies to reduce fossil fuel consumption in
transportation, or
``(v) technologies to reduce energy use in buildings.
``(C) Mass commuting facilities and related facilities that
reduce the consumption of energy, including expenditures to
reduce pollution from vehicles used for mass commuting.
``(D) Demonstration projects designed to promote the
commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural waste for use in the
production of fuel or otherwise,
``(iii) advanced battery manufacturing technologies,
``(iv) technologies to reduce peak use of electricity, or
``(v) technologies for the capture and sequestration of
carbon dioxide emitted from combusting fossil fuels in order
to produce electricity.
``(E) Public education campaigns to promote energy
efficiency.
``(2) Special rules for private activity bonds.--For
purposes of this section, in the case of any private activity
bond, the term `qualified conservation purposes' shall not
include any expenditure which is not a capital expenditure.
``(f) Population.--
``(1) In general.--The population of any State or local
government shall be determined for purposes of this section
as provided in section 146(j) for the calendar year which
includes the date of the enactment of this section.
``(2) Special rule for counties.--In determining the
population of any county for purposes of this section, any
population of such county which is taken into account in
determining the population of any municipality which is a
large local government shall not be taken into account in
determining the population of such county.
``(g) Application to Indian Tribal Governments.--An Indian
tribal government shall be treated for purposes of this
section in the same manner as a large local government,
except that--
``(1) an Indian tribal government shall be treated for
purposes of subsection (d) as located within a State to the
extent of so much of the population of such government as
resides within such State, and
``(2) any bond issued by an Indian tribal government shall
be treated as a qualified energy conservation bond only if
issued as part of an issue the available project proceeds of
which are used for purposes for which such Indian tribal
government could issue bonds to which section 103(a)
applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by this
title, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a new clean renewable energy bond, or
``(B) a qualified energy conservation bond,
which is part of an issue that meets requirements of
paragraphs (2), (3), (4), and (5).''.
(2) Subparagraph (C) of section 54A(d)(2), as added by this
title, is amended to read as follows:
[[Page H14413]]
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means--
``(i) in the case of a new clean renewable energy bond, a
purpose specified in section 54B(a)(1), and
``(ii) in the case of a qualified energy conservation bond,
a purpose specified in section 54C(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by this title, is
amended by adding at the end the following new item:
``Sec. 54C. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 1542. QUALIFIED FORESTRY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1, as added by this title, is amended by adding at
the end the following new section:
``SEC. 54D. QUALIFIED FORESTRY CONSERVATION BONDS.
``(a) Qualified Forestry Conservation Bond.--For purposes
of this subchapter, the term `qualified forestry conservation
bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available proceeds of such issue
are to be used for one or more qualified forestry
conservation projects,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The
maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not
exceed the limitation amount allocated to such issuer under
subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified forestry conservation bond
limitation of $500,000,000.
``(d) Allocations.--
``(1) In general.--The Secretary shall make allocations of
the amount of the national qualified forestry conservation
bond limitation described in subsection (c) among qualified
forestry conservation projects in such manner as the
Secretary determines appropriate so as to ensure that all of
such limitation is allocated before the date which is 24
months after the date of the enactment of this section.
``(2) Solicitation of applications.--The Secretary shall
solicit applications for allocations of the national
qualified forestry conservation bond limitation described in
subsection (c) not later than 90 days after the date of the
enactment of this section.
``(e) Qualified Forestry Conservation Project.--For
purposes of this section, the term `qualified forestry
conservation project' means the acquisition by a State or
501(c)(3) organization (as defined in section 150(a)(4)) from
an unrelated person of forest and forest land that meets the
following qualifications:
``(1) Some portion of the land acquired must be adjacent to
United States Forest Service Land.
``(2) At least half of the land acquired must be
transferred to the United States Forest Service at no net
cost to the United States and not more than half of the land
acquired may either remain with or be donated to a State.
``(3) All of the land must be subject to a native fish
habitat conservation plan approved by the United States Fish
and Wildlife Service.
``(4) The amount of acreage acquired must be at least
40,000 acres.
``(f) Qualified Issuer.--For purposes of this section, the
term `qualified issuer' means a State or 501(c)(3)
organization (as defined in section 150(a)(4)).
``(g) Special Arbitrage Rule.--In the case of any qualified
forestry conservation bond issued as part of an issue,
section 54A(d)(4)(C) shall be applied to such issue without
regard to clause (i).''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by this
title, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a new clean renewable energy bond,
``(B) a qualified energy conservation bond, or
``(C) a qualified forestry conservation bond,
which is part of an issue that meets requirements of
paragraphs (2), (3), (4), and (5).''.
(2) Subparagraph (C) of section 54A(d)(2), as added by this
title, is amended to read as follows:
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means--
``(i) in the case of a new clean renewable energy bond, a
purpose specified in section 54B(a)(1),
``(ii) in the case of a qualified energy conservation bond,
a purpose specified in section 54C(a)(1), and
``(iii) in the case of a qualified forestry conservation
bond, a purpose specified in section 54D(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by this title, is
amended by adding at the end the following new item:
``Sec. 54C. Qualified forestry conservation bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
PART II--EFFICIENCY
SEC. 1543. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT
EXISTING HOMES CREDIT.
(a) Extension of Credit.--Section 25C(g) (relating to
termination) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2008''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph (D),
(B) by striking the period at the end of subparagraph (E)
and inserting ``, and'', and
(C) by adding at the end the following new subparagraph:
``(F) a stove which uses the burning of biomass fuel to
heat a dwelling unit located in the United States and used as
a residence by the taxpayer, or to heat water for use in such
a dwelling unit, and which has a thermal efficiency rating of
at least 75 percent.''.
(2) Biomass fuel.--Section 25C(d) (relating to residential
energy property expenditures) is amended by adding at the end
the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any
plant-derived fuel available on a renewable or recurring
basis, including agricultural crops and trees, wood and wood
waste and residues (including wood pellets), plants
(including aquatic plants), grasses, residues, and fibers.''.
(c) Effective Date.--The amendments made this section shall
apply to expenditures made after December 31, 2007.
SEC. 1544. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT
COMMERCIAL BUILDINGS DEDUCTION.
Subsection (h) of section 179D (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2013''.
SEC. 1545. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT
FOR APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M (relating to
applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is manufactured
in calendar year 2008 or 2009 and which uses no more than 324
kilowatt hours per year and 5.8 gallons per cycle, and
``(B) $75 in the case of a dishwasher which is manufactured
in calendar year 2008, 2009, or 2010 and which uses no more
than 307 kilowatt hours per year and 5.0 gallons per cycle
(5.5 gallons per cycle for dishwashers designed for greater
than 12 place settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 which meets or
exceeds a 1.72 modified energy factor and does not exceed a
8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 or 2009 which meets
or exceeds a 1.8 modified energy factor and does not exceed a
7.5 water consumption factor,
``(C) $150 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009 or
2010 which meets or exceeds 2.0 modified energy factor and
does not exceed a 6.0 water consumption factor, and
``(D) $250 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009, or
2010 which meets or exceeds 2.2 modified energy factor and
does not exceed a 4.5 water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at least 20
percent but not more than 22.9 percent less kilowatt hours
per year than the 2001 energy conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and consumes at
least 23 percent but no more than 24.9 percent less kilowatt
hours per year than the 2001 energy conservation standards,
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009, or 2010, and
consumes at least 25 percent but not more than 29.9 percent
less kilowatt hours per year than the 2001 energy
conservation standards, and
``(D) $200 in the case of a refrigerator manufactured in
calendar year 2008, 2009, or 2010 and which consumes at least
30 percent less energy than the 2001 energy conservation
standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M (relating to eligible production) is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that follows
through ``the eligible'' and inserting ``The eligible'', and
(C) by moving the text of such subsection in line with the
subsection heading and redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively.
[[Page H14414]]
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1) of this section, is
amended by striking ``3-calendar year'' and inserting ``2-
calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d)
of section 45M (defining types of energy efficient
appliances) is amended to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of
this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e)
(relating to aggregate credit amount allowed) is amended to
read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to
a taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior
taxable years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read
as follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not
be taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection (b)(1),
``(B) any clothes washer described in subsection (b)(2),
and
``(C) any refrigerator described in subsection (b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) (defining clothes
washer) is amended by inserting ``commercial'' before
``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M (relating to definitions) is amended by redesignating
paragraphs (4), (5), (6), and (7) as paragraphs (5), (6),
(7), and (8), respectively, and by inserting after paragraph
(3) the following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer which has the clothes
container compartment access located on the top of the
machine and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(7), as
redesignated by paragraph (3), is amended to read as follows:
``(7) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section
45M(f) (relating to definitions) is amended by adding at the
end the following:
``(9) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of
a dishwasher.
``(10) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water
consumption divided by the cubic foot (or liter) capacity of
the clothes washer.''.
(f) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2007.
SEC. 1546. SEVEN-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT
DEVICES.
(a) In General.--Section 168(e)(3)(C) (relating to 7-year
property), as amended by this Act, is amended by striking
``and'' at the end of clause (v), by redesignating clause
(vi) as clause (vii), and by inserting after clause (v) the
following new clause:
``(vi) any qualified energy management device, and''.
(b) Definition of Qualified Energy Management Device.--
Section 168(i) (relating to definitions and special rules) is
amended by inserting at the end the following new paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy management
device' means any energy management device which is installed
on real property of a customer of the taxpayer and is placed
in service by a taxpayer who--
``(i) is a supplier of electric energy or a provider of
electric energy services, and
``(ii) provides all commercial and residential customers of
such supplier or provider with net metering upon the request
of such customer.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device' means
any time-based meter and related communication equipment
which is capable of being used by the taxpayer as part of a
system that--
``(i) measures and records electricity usage data on a
time-differentiated basis in at least 24 separate time
segments per day,
``(ii) provides for the exchange of information between
supplier or provider and the customer's energy management
device in support of time-based rates or other forms of
demand response, and
``(iii) provides data to such supplier or provider so that
the supplier or provider can provide energy usage information
to customers electronically.
``(C) Net metering.--For purposes of subparagraph (A), the
term `net metering' means allowing customers a credit for
providing electricity to the supplier or provider.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2007.
Subtitle D--Other Provisions
PART I--FORESTRY PROVISIONS
SEC. 1551. DEDUCTION FOR QUALIFIED TIMBER GAIN.
(a) In General.--Part I of subchapter P of chapter 1 is
amended by adding at the end the following new section:
``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.
``(a) In General.--In the case of a taxpayer which elects
the application of this section for a taxable year, there
shall be allowed a deduction against gross income in an
amount equal to 60 percent of the lesser of--
``(1) the taxpayer's qualified timber gain for such year,
or
``(2) the taxpayer's net capital gain for such year.
``(b) Qualified Timber Gain.--For purposes of this section,
the term `qualified timber gain' means, with respect to any
taxpayer for any taxable year, the excess (if any) of--
``(1) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(2) the sum of the taxpayer's losses described in such
subsections for such year.
``(c) Special Rules for Pass-Thru Entities.--
``(1) In the case of any qualified timber gain of a pass-
thru entity (as defined in section 1(h)(10)) other than a
real estate investment trust, the election under this section
shall be made separately by each taxpayer subject to tax on
such gain.
``(2) In the case of any qualified timber gain of a real
estate investment trust, the election under this section
shall be made by the real estate investment trust.
``(d) Election.--An election under this section may be made
only with respect to the first taxable year beginning after
the date of the enactment of this section.''.
(b) Coordination With Maximum Capital Gains Rates.--
(1) Taxpayers other than corporations.--Paragraph (2) of
section 1(h) is amended to read as follows:
``(2) Reduction of net capital gain.--For purposes of this
subsection, the net capital gain for any taxable year shall
be reduced (but not below zero) by the sum of--
``(A) the amount which the taxpayer takes into account as
investment income under section 163(d)(4)(B)(iii), and
``(B) in the case of a taxable year with respect to which
an election is in effect under section 1203, the taxpayer's
qualified timber gain (as defined in section 1203(b)).''.
(2) Corporations.--Section 1201 is amended by redesignating
subsection (b) as subsection (c) and inserting after
subsection (a) the following new subsection:
``(b) Qualified Timber Gain Not Taken Into Account.--For
purposes of this section, in the case of a corporation with
respect to which an election is in effect under section 1203,
the net capital gain for any taxable year shall be reduced
(but not below zero) by the corporation's qualified timber
gain (as defined in section 1203(b)).''.
(c) Deduction Allowed Whether or Not Individual Itemizes
Other Deductions.--Subsection (a) of section 62 is amended by
inserting before the last sentence the following new
paragraph:
``(22) Qualified timber gains.--The deduction allowed by
section 1203.''.
(d) Deduction Allowed in Computing Adjusted Current
Earnings.--Subparagraph (C) of section 56(g)(4) is amended by
adding at the end the following new clause:
``(vii) Deduction for qualified timber gain.--Clause (i)
shall not apply to any deduction allowed under section
1203.''.
(e) Deduction Allowed in Computing Taxable Income of
Electing Small Business Trusts.--Subparagraph (C) of section
641(c)(2) is amended by inserting after clause (iv) the
following new clause:
``(v) The deduction allowed under section 1203.''.
(f) Treatment of Qualified Timber Gain of Real Estate
Investment Trusts.--Paragraph (3) of section 857(b) is
amended by inserting after subparagraph (F) the following new
subparagraph:
``(G) Treatment of qualified timber gain.--For purposes of
this part, in the case of a real estate investment trust with
respect to which an election is in effect under section
1203--
``(i) Reduction of net capital gain.--The net capital gain
of the real estate investment trust for any taxable year
shall be reduced (but not below zero) by the real estate
investment trust's qualified timber gain (as defined in
section 1203(b)).
[[Page H14415]]
``(ii) Adjustment to shareholder's basis attributable to
deduction for qualified timber gains.--
``(I) In general.--The adjusted basis of shares in the
hands of the shareholder shall be increased by the amount of
the deduction allowable under section 1203(a) as provided in
subclauses (II) and (III).
``(II) Allocation of basis increase for distributions made
during taxable year.--For any taxable year of a real estate
investment trust for which an election is in effect under
section 1203, in the case of a distribution made with respect
to shares during such taxable year of amounts attributable to
the deduction allowable under section 1203(a), the adjusted
basis of such shares shall be increased by the amount of such
distributions.
``(III) Allocation of excess.--If the deduction allowable
under section 1203(a) for a taxable year exceeds the amount
of distributions described in subclause (II), the excess
shall be allocated to every shareholder of the real estate
investment trust at the close of the trust's taxable year in
the same manner as if a distribution of such excess were made
with respect to such shares.
``(IV) Designations.--To the extent provided in
regulations, a real estate investment trust shall designate
the amounts described in subclauses (II) and (III) in a
manner similar to the designations provided with respect to
capital gains described in subparagraphs (C) and (D).
``(V) Definitions.--As used in this subparagraph, the terms
`share' and `shareholder' shall include beneficial interests
and holders of beneficial interests, respectively.
``(iii) Earnings and profits deduction for qualified timber
gains.--The deduction allowable under section 1203(a) for a
taxable year shall be allowed as a deduction in computing the
earnings and profits of the real estate investment trust for
such taxable year. The earnings and profits of any such
shareholder which is a corporation shall be appropriately
adjusted in accordance with regulations prescribed by the
Secretary.''.
(g) Loss Attributable to Basis Adjustment for Deduction for
Qualified Timber Gain of Real Estate Investment Trusts.--
(1) Section 857(b)(8) is amended by redesignating
subparagraphs (B) and (C) as subparagraphs (C) and (D),
respectively, and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Loss attributable to basis adjustment for deduction
for qualified timber gain.--If--
``(i) a shareholder of a real estate investment trust
receives a basis adjustment provided under subsection
(b)(3)(G)(ii), and
``(ii) the taxpayer has held such share or interest for 6
months or less,
then any loss on the sale or exchange of such share or
interest shall, to the extent of the amount described in
clause (i), be disallowed.''.
(2) Subparagraph (D) of section 857(b)(8), as redesignated
by paragraph (1), is amended by striking ``subparagraph (A)''
and inserting ``subparagraphs (A) and (B)''.
(h) Conforming Amendments.--
(1) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
``(B) the exclusion under section 1202, and the deduction
under section 1203, shall not be allowed.''.
(2) Paragraph (4) of section 642(c) is amended by striking
the first sentence and inserting ``To the extent that the
amount otherwise allowable as a deduction under this
subsection consists of gain described in section 1202(a) or
qualified timber gain (as defined in section 1203(b)), proper
adjustment shall be made for any exclusion allowable to the
estate or trust under section 1202 and for any deduction
allowable to the estate or trust under section 1203.''
(3) Paragraph (3) of section 643(a) is amended by striking
the last sentence and inserting ``The exclusion under section
1202 and the deduction under section 1203 shall not be taken
into account.''.
(4) Subparagraph (C) of section 643(a)(6) is amended to
read as follows:
``(C) Paragraph (3) shall not apply to a foreign trust. In
the case of such a trust--
``(i) there shall be included gains from the sale or
exchange of capital assets, reduced by losses from such sales
or exchanges to the extent such losses do not exceed gains
from such sales or exchanges, and
``(ii) the deduction under section 1203 shall not be taken
into account.''.
(5) Paragraph (4) of section 691(c) is amended by inserting
``1203,'' after ``1202,''.
(6) Paragraph (2) of section 871(a) is amended by inserting
``or 1203,'' after ``1202,''.
(7) The table of sections for part I of subchapter P of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 1203. Deduction for qualified timber gain.''.
(i) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1552. EXCISE TAX NOT APPLICABLE TO SECTION 1203
DEDUCTION OF REAL ESTATE INVESTMENT TRUSTS.
(a) In General.--
(1) Ordinary income.--Subparagraph (B) of section
4981(e)(1) is amended to read as follows:
``(B) by not taking into account--
``(i) any gain or loss from the sale or exchange of capital
assets (determined without regard to any reduction that would
be applied for purposes of section 857(b)(3)(G)(i)), and
``(ii) any deduction allowable under section 1203, and''.
(2) Capital gain net income.--Section 4981(e)(2) is amended
by adding at the end the following new subparagraph:
``(D) Qualified timber gain.--The amount determined under
subparagraph (A) shall be determined without regard to any
reduction that would be applied for purposes of section
857(b)(3)(G)(i) but shall be reduced for any deduction
allowable under section 1203 for such calendar year.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1553. TIMBER REIT MODERNIZATION.
(a) In General.--Section 856(c)(5) is amended by adding
after subparagraph (G) the following new subparagraph:
``(H) Treatment of timber gains.--
``(i) In general.--Gain from the sale of real property
described in paragraph (2)(D) and (3)(C) shall include gain
which is--
``(I) recognized by an election under section 631(a) from
timber owned by the real estate investment trust, the cutting
of which is provided by a taxable REIT subsidiary of the real
estate investment trust;
``(II) recognized under section 631(b); or
``(III) income which would constitute gain under subclause
(I) or (II) but for the failure to meet the 1-year holding
period requirement.
``(ii) Special rules.--
``(I) For purposes of this subtitle, cut timber, the gain
of which is recognized by a real estate investment trust
pursuant to an election under section 631(a) described in
clause (i)(I) or so much of clause (i)(III) as relates to
clause (i)(I), shall be deemed to be sold to the taxable REIT
subsidiary of the real estate investment trust on the first
day of the taxable year.
``(II) For purposes of this subtitle, income described in
this subparagraph shall not be treated as gain from the sale
of property described in section 1221(a)(1).
``(iii) Termination.--This subparagraph shall not apply to
dispositions after the termination date.''.
(b) Termination Date.--Subsection (c) of section 856 is
amended by adding at the end the following new paragraph:
``(8) Termination date.--For purposes of this subsection,
the term `termination date' means the last day of the first
taxable year beginning after the date of the enactment of
this paragraph.''.
(c) Effective Date.--The amendments made by subsection (a)
shall apply to dispositions in taxable years beginning after
the date of the enactment of this Act.
SEC. 1554. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR
TIMBER REITS.
(a) In General.--Section 856(c)(2) is amended by striking
``and'' at the end of subparagraph (G), by inserting ``and''
at the end of subparagraph (H), and by adding after
subparagraph (H) the following new subparagraph:
``(I) mineral royalty income earned in the first taxable
year beginning after the date of the enactment of this
subparagraph from real property owned by a timber real estate
investment trust held, or once held, in connection with the
trade or business of producing timber by such real estate
investment trust;''.
(b) Timber Real Estate Investment Trust.--Section
856(c)(5), as amended by this Act, is amended by adding after
subparagraph (H) the following new subparagraph:
``(I) Timber real estate investment trust.--The term
`timber real estate investment trust' means a real estate
investment trust in which more than 50 percent in value of
its total assets consists of real property held in connection
with the trade or business of producing timber.''.
(c) Effective Date.--The amendments by this section shall
apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1555. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST
FOR TIMBER REITS.
(a) In General.--Section 856(c)(4)(B)(ii) is amended by
inserting ``(in the case of a quarter which closes on or
before the termination date, 25 percent in the case of a
timber real estate investment trust)'' after ``not more than
20 percent of the value of its total assets is represented by
securities of one or more taxable REIT subsidiaries''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1556. SAFE HARBOR FOR TIMBER PROPERTY.
(a) In General.--Section 857(b)(6) (relating to income from
prohibited transactions) is amended by adding at the end the
following new subparagraph:
``(G) Special rules for sales to qualified organizations.--
``(i) In general.--In the case of sale of a real estate
asset (as defined in section 856(c)(5)(B)) to a qualified
organization (as defined in section 170(h)(3)) exclusively
for conservation purposes (within the meaning of section
170(h)(1)(C)), subparagraph (D) shall be applied--
``(I) by substituting `2 years' for `4 years' in clause
(i), and
``(II) by substituting `2-year period' for `4-year period'
in clauses (ii) and (iii).
``(ii) Termination.--This subparagraph shall not apply to
sales after the termination date.''.
[[Page H14416]]
(b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is
amended by inserting ``or, in the case of a sale on or before
the termination date, a taxable REIT subsidiary'' after
``independent contractor (as defined in section 856(d)(3))
from whom the trust itself does not derive or receive any
income''.
(c) Sales That Are Not Prohibited Transactions.--Section
857(b)(6), as amended by subsection (a), is amended by adding
at the end the following new subparagraph:
``(H) Sales of property that are not a prohibited
transaction.--In the case of a sale on or before the
termination date, the sale of property which is not a
prohibited transaction through application of subparagraph
(D) shall be considered property held for investment or for
use in a trade or business and not property described in
section 1221(a)(1) for all purposes of this subtitle.''.
(d) Termination Date.--Section 857(b)(6), as amended by
subsections (a) and (c), is amended by adding at the end the
following new subparagraph:
``(I) Termination date.--For purposes of this paragraph,
the term `termination date' means the last day of the first
taxable year beginning after the date of the enactment of
this subparagraph.''.
(e) Effective Date.--The amendments made by this section
shall apply to dispositions in taxable years beginning after
the date of the enactment of this Act.
PART II--EXXON VALDEZ
SEC. 1557. INCOME AVERAGING FOR AMOUNTS RECEIVED IN
CONNECTION WITH THE EXXON VALDEZ LITIGATION.
(a) Income Averaging of Amounts Received From the Exxon
Valdez Litigation.--For purposes of section 1301 of the
Internal Revenue Code of 1986--
(1) any qualified taxpayer who receives any qualified
settlement income in any taxable year shall be treated as
engaged in a fishing business (determined without regard to
the commercial nature of the business), and
(2) such qualified settlement income shall be treated as
income attributable to such a fishing business for such
taxable year.
(b) Contributions of Amounts Received to Retirement
Accounts.--
(1) In general.--Any qualified taxpayer who receives
qualified settlement income during the taxable year may, at
any time before the end of the taxable year in which such
income was received, make one or more contributions to an
eligible retirement plan of which such qualified taxpayer is
a beneficiary in an aggregate amount not to exceed the lesser
of--
(A) $100,000 (reduced by the amount of qualified settlement
income contributed to an eligible retirement plan in prior
taxable years pursuant to this subsection), or
(B) the amount of qualified settlement income received by
the individual during the taxable year.
(2) Time when contributions deemed made.--For purposes of
paragraph (1), a qualified taxpayer shall be deemed to have
made a contribution to an eligible retirement plan on the
last day of the taxable year in which such income is received
if the contribution is made on account of such taxable year
and is made not later than the time prescribed by law for
filing the return for such taxable year (not including
extensions thereof).
(3) Treatment of contributions to eligible retirement
plans.--For purposes of the Internal Revenue Code of 1986, if
a contribution is made pursuant to paragraph (1) with respect
to qualified settlement income, then--
(A) except as provided in paragraph (4)--
(i) to the extent of such contribution, the qualified
settlement income shall not be included in taxable income,
and
(ii) for purposes of section 72 of such Code, such
contribution shall not be considered to be investment in the
contract,
(B) the qualified taxpayer shall, to the extent of the
amount of the contribution, be treated--
(i) as having received the qualified settlement income--
(I) in the case of a contribution to an individual
retirement plan (as defined under section 7701(a)(37) of such
Code), in a distribution described in section 408(d)(3) of
such Code, and
(II) in the case of any other eligible retirement plan, in
an eligible rollover distribution (as defined under section
402(f)(2) of such Code), and
(ii) as having transferred the amount to the eligible
retirement plan in a direct trustee to trustee transfer
within 60 days of the distribution,
(C) section 408(d)(3)(B) of the Internal Revenue Code of
1986 shall not apply with respect to amounts treated as a
rollover under this paragraph, and
(D) section 408A(c)(3)(B) of the Internal Revenue Code of
1986 shall not apply with respect to amounts contributed to a
Roth IRA (as defined under section 408A(b) of such Code) or a
designated Roth contribution to an applicable retirement plan
(within the meaning of section 402A of such Code) under this
paragraph.
(4) Special rule for roth iras and roth 401(k)s.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to paragraph (1) with respect
to qualified settlement income to a Roth IRA (as defined
under section 408A(b) of such Code) or as a designated Roth
contribution to an applicable retirement plan (within the
meaning of section 402A of such Code), then--
(A) the qualified settlement income shall be includible in
taxable income, and
(B) for purposes of section 72 of such Code, such
contribution shall be considered to be investment in the
contract.
(5) Eligible retirement plan.--For purpose of this
subsection, the term ``eligible retirement plan'' has the
meaning given such term under section 402(c)(8)(B) of the
Internal Revenue Code of 1986.
(c) Treatment of Qualified Settlement Income Under
Employment Taxes.--
(1) SECA.--For purposes of chapter 2 of the Internal
Revenue Code of 1986 and section 211 of the Social Security
Act, no portion of qualified settlement income received by a
qualified taxpayer shall be treated as self-employment
income.
(2) FICA.--For purposes of chapter 21 of the Internal
Revenue Code of 1986 and section 209 of the Social Security
Act, no portion of qualified settlement income received by a
qualified taxpayer shall be treated as wages.
(d) Qualified Taxpayer.--For purposes of this section, the
term ``qualified taxpayer'' means--
(1) any individual who is a plaintiff in the civil action
In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D.
Alaska); or
(2) any individual who is a beneficiary of the estate of
such a plaintiff who--
(A) acquired the right to receive qualified settlement
income from that plaintiff; and
(B) was the spouse or an immediate relative of that
plaintiff.
(e) Qualified Settlement Income.--For purposes of this
section, the term ``qualified settlement income'' means any
interest and punitive damage awards which are--
(1) otherwise includible in taxable income, and
(2) received (whether as lump sums or periodic payments) in
connection with the civil action In re Exxon Valdez, No. 89-
095-CV (HRH) (Consolidated) (D. Alaska) (whether pre- or
post-judgment and whether related to a settlement or
judgment).
Subtitle E--Revenue Provisions
SEC. 1561. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION OF OIL, GAS, OR A PRIMARY
PRODUCTS THEREOF.
(a) Denial of Deduction for Major Integrated Oil Companies
for Income Attributable to Domestic Production of Oil, Gas,
or Primary Products Thereof.--
(1) In general.--Subparagraph (B) of section 199(c)(4)
(relating to exceptions) is amended by striking ``or'' at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, or'', and by inserting after
clause (iii) the following new clause:
``(iv) in the case of any major integrated oil company (as
defined in section 167(h)(5)(B)), the production, refining,
processing, transportation, or distribution of oil, gas, or
any primary product thereof during any taxable year described
in section 167(h)(5)(B).''.
(2) Primary product.--Section 199(c)(4)(B) is amended by
adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary product' has
the same meaning as when used in section 927(a)(2)(C), as in
effect before its repeal.''.
(b) Limitation on Oil Related Qualified Production
Activities Income for Taxpayers Other Than Major Integrated
Oil Companies.--
(1) In general.--Section 199(d) is amended by redesignating
paragraph (9) as paragraph (10) and by inserting after
paragraph (8) the following new paragraph:
``(9) Special rule for taxpayers with oil related qualified
production activities income.--
``(A) In general.--If a taxpayer (other than a major
integrated oil company (as defined in section 167(h)(5)(B)))
has oil related qualified production activities income for
any taxable year beginning after 2009, the amount of the
deduction under subsection (a) shall be reduced by 3 percent
of the least of--
``(i) the oil related qualified production activities
income of the taxpayer for the taxable year,
``(ii) the qualified production activities income of the
taxpayer for the taxable year, or
``(iii) taxable income (determined without regard to this
section).
``(B) Oil related qualified production activities income.--
The term `oil related qualified production activities income'
means for any taxable year the qualified production
activities income which is attributable to the production,
refining, processing, transportation, or distribution of oil,
gas, or any primary product thereof during such taxable
year.''.
(2) Conforming amendment.--Section 199(d)(2) (relating to
application to individuals) is amended by striking
``subsection (a)(1)(B)'' and inserting ``subsections
(a)(1)(B) and (d)(9)(A)(iii)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 1562. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN
OIL AND GAS EXTRACTION INCOME AND FOREIGN OIL
RELATED INCOME FOR PURPOSES OF THE FOREIGN TAX
CREDIT.
(a) In General.--Subsections (a) and (b) of section 907
(relating to special rules in case of foreign oil and gas
income) are amended to read as follows:
``(a) Reduction in Amount Allowed as Foreign Tax Under
Section 901.--In applying section 901, the amount of any
foreign oil and gas taxes paid or accrued (or deemed to
[[Page H14417]]
have been paid) during the taxable year which would (but for
this subsection) be taken into account for purposes of
section 901 shall be reduced by the amount (if any) by which
the amount of such taxes exceeds the product of--
``(1) the amount of the combined foreign oil and gas income
for the taxable year,
``(2) multiplied by--
``(A) in the case of a corporation, the percentage which is
equal to the highest rate of tax specified under section
11(b), or
``(B) in the case of an individual, a fraction the
numerator of which is the tax against which the credit under
section 901(a) is taken and the denominator of which is the
taxpayer's entire taxable income.
``(b) Combined Foreign Oil and Gas Income; Foreign Oil and
Gas Taxes.--For purposes of this section--
``(1) Combined foreign oil and gas income.--The term
`combined foreign oil and gas income' means, with respect to
any taxable year, the sum of--
``(A) foreign oil and gas extraction income, and
``(B) foreign oil related income.
``(2) Foreign oil and gas taxes.--The term `foreign oil and
gas taxes' means, with respect to any taxable year, the sum
of--
``(A) oil and gas extraction taxes, and
``(B) any income, war profits, and excess profits taxes
paid or accrued (or deemed to have been paid or accrued under
section 902 or 960) during the taxable year with respect to
foreign oil related income (determined without regard to
subsection (c)(4)) or loss which would be taken into account
for purposes of section 901 without regard to this
section.''.
(b) Recapture of Foreign Oil and Gas Losses.--Paragraph (4)
of section 907(c) (relating to recapture of foreign oil and
gas extraction losses by recharacterizing later extraction
income) is amended to read as follows:
``(4) Recapture of foreign oil and gas losses by
recharacterizing later combined foreign oil and gas income.--
``(A) In general.--The combined foreign oil and gas income
of a taxpayer for a taxable year (determined without regard
to this paragraph) shall be reduced--
``(i) first by the amount determined under subparagraph
(B), and
``(ii) then by the amount determined under subparagraph
(C).
The aggregate amount of such reductions shall be treated as
income (from sources without the United States) which is not
combined foreign oil and gas income.
``(B) Reduction for pre-2008 foreign oil extraction
losses.--The reduction under this paragraph shall be equal to
the lesser of--
``(i) the foreign oil and gas extraction income of the
taxpayer for the taxable year (determined without regard to
this paragraph), or
``(ii) the excess of--
``(I) the aggregate amount of foreign oil extraction losses
for preceding taxable years beginning after December 31,
1982, and before January 1, 2008, over
``(II) so much of such aggregate amount as was
recharacterized under this paragraph (as in effect before and
after the date of the enactment of the Clean Renewable Energy
and Conservation Tax Act of 2007) for preceding taxable years
beginning after December 31, 1982.
``(C) Reduction for post-2007 foreign oil and gas losses.--
The reduction under this paragraph shall be equal to the
lesser of--
``(i) the combined foreign oil and gas income of the
taxpayer for the taxable year (determined without regard to
this paragraph), reduced by an amount equal to the reduction
under subparagraph (A) for the taxable year, or
``(ii) the excess of--
``(I) the aggregate amount of foreign oil and gas losses
for preceding taxable years beginning after December 31,
2007, over
``(II) so much of such aggregate amount as was
recharacterized under this paragraph for preceding taxable
years beginning after December 31, 2007.
``(D) Foreign oil and gas loss defined.--
``(i) In general.--For purposes of this paragraph, the term
`foreign oil and gas loss' means the amount by which--
``(I) the gross income for the taxable year from sources
without the United States and its possessions (whether or not
the taxpayer chooses the benefits of this subpart for such
taxable year) taken into account in determining the combined
foreign oil and gas income for such year, is exceeded by
``(II) the sum of the deductions properly apportioned or
allocated thereto.
``(ii) Net operating loss deduction not taken into
account.--For purposes of clause (i), the net operating loss
deduction allowable for the taxable year under section 172(a)
shall not be taken into account.
``(iii) Expropriation and casualty losses not taken into
account.--For purposes of clause (i), there shall not be
taken into account--
``(I) any foreign expropriation loss (as defined in section
172(h) (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990)) for the
taxable year, or
``(II) any loss for the taxable year which arises from
fire, storm, shipwreck, or other casualty, or from theft,
to the extent such loss is not compensated for by insurance
or otherwise.
``(iv) Foreign oil extraction loss.--For purposes of
subparagraph (B)(ii)(I), foreign oil extraction losses shall
be determined under this paragraph as in effect on the day
before the date of the enactment of the Clean Renewable
Energy and Conservation Tax Act of 2007.''.
(c) Carryback and Carryover of Disallowed Credits.--Section
907(f) (relating to carryback and carryover of disallowed
credits) is amended--
(1) by striking ``oil and gas extraction taxes'' each place
it appears and inserting ``foreign oil and gas taxes'', and
(2) by adding at the end the following new paragraph:
``(4) Transition rules for pre-2008 and 2008 disallowed
credits.--
``(A) Pre-2008 credits.--In the case of any unused credit
year beginning before January 1, 2008, this subsection shall
be applied to any unused oil and gas extraction taxes carried
from such unused credit year to a year beginning after
December 31, 2007--
``(i) by substituting `oil and gas extraction taxes' for
`foreign oil and gas taxes' each place it appears in
paragraphs (1), (2), and (3), and
``(ii) by computing, for purposes of paragraph (2)(A), the
limitation under subparagraph (A) for the year to which such
taxes are carried by substituting `foreign oil and gas
extraction income' for `foreign oil and gas income' in
subsection (a).
``(B) 2008 credits.--In the case of any unused credit year
beginning in 2008, the amendments made to this subsection by
the Clean Renewable Energy and Conservation Tax Act of 2007
shall be treated as being in effect for any preceding year
beginning before January 1, 2008, solely for purposes of
determining how much of the unused foreign oil and gas taxes
for such unused credit year may be deemed paid or accrued in
such preceding year.''.
(d) Conforming Amendment.--Section 6501(i) is amended by
striking ``oil and gas extraction taxes'' and inserting
``foreign oil and gas taxes''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 1563. SEVEN-YEAR AMORTIZATION OF GEOLOGICAL AND
GEOPHYSICAL EXPENDITURES FOR CERTAIN MAJOR
INTEGRATED OIL COMPANIES.
(a) In General.--Subparagraph (A) of section 167(h)(5)
(relating to special rule for major integrated oil companies)
is amended by striking ``5-year'' and inserting ``7-year''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
SEC. 1564. BROKER REPORTING OF CUSTOMER'S BASIS IN SECURITIES
TRANSACTIONS.
(a) In General.--
(1) Broker reporting for securities transactions.--Section
6045 (relating to returns of brokers) is amended by adding at
the end the following new subsection:
``(g) Additional Information Required in the Case of
Securities Transactions.--
``(1) In general.--If a broker is otherwise required to
make a return under subsection (a) with respect to the gross
proceeds of the sale of a covered security, the broker shall
include in such return the information described in paragraph
(2).
``(2) Additional information required.--
``(A) In general.--The information required under paragraph
(1) to be shown on a return with respect to a covered
security of a customer shall include the customer's adjusted
basis in such security and whether any gain or loss with
respect to such security is long-term or short-term (within
the meaning of section 1222).
``(B) Determination of adjusted basis.--For purposes of
subparagraph (A)--
``(i) In general.--The customer's adjusted basis shall be
determined--
``(I) in the case of any stock (other than any stock in an
open-end fund), in accordance with the first-in first-out
method unless the customer notifies the broker by means of
making an adequate identification of the stock sold or
transferred,
``(II) in the case of any stock in an open-end fund
acquired before January 1, 2011, in accordance with any
acceptable method under section 1012 with respect to the
account in which such interest is held,
``(III) in the case of any stock in an open-end fund
acquired after December 31, 2010, in accordance with the
broker's default method unless the customer notifies the
broker that he elects another acceptable method under section
1012 with respect to the account in which such interest is
held, and
``(IV) in any other case, under the method for making such
determination under section 1012.
``(ii) Exception for wash sales.--Except as otherwise
provided by the Secretary, the customer's adjusted basis
shall be determined without regard to section 1091 (relating
to loss from wash sales of stock or securities) unless the
transactions occur in the same account with respect to
identical securities.
``(3) Covered security.--For purposes of this subsection--
``(A) In general.--The term `covered security' means any
specified security acquired on or after the applicable date
if such security--
``(i) was acquired through a transaction in the account in
which such security is held, or
``(ii) was transferred to such account from an account in
which such security was a covered security, but only if the
broker received
[[Page H14418]]
a statement under section 6045A with respect to the transfer.
``(B) Specified security.--The term `specified security'
means--
``(i) any share of stock in a corporation,
``(ii) any note, bond, debenture, or other evidence of
indebtedness,
``(iii) any commodity, or contract or derivative with
respect to such commodity, if the Secretary determines that
adjusted basis reporting is appropriate for purposes of this
subsection, and
``(iv) any other financial instrument with respect to which
the Secretary determines that adjusted basis reporting is
appropriate for purposes of this subsection.
``(C) Applicable date.--The term `applicable date' means--
``(i) January 1, 2009, in the case of any specified
security which is stock in a corporation, and
``(ii) January 1, 2011, or such later date determined by
the Secretary in the case of any other specified security.
``(4) Open-end fund.--For purposes of this subsection, the
term `open-end fund' means a regulated investment company (as
defined in section 851) which is offering for sale or has
outstanding any redeemable security of which it is the issuer
and the shares of which are not traded on an established
securities exchange.
``(5) Treatment of s corporations.--In the case of the sale
of a covered security acquired by an S corporation (other
than a financial institution) after December 31, 2010, such S
corporation shall be treated in the same manner as a
partnership for purposes of this section.
``(6) Special rules for short sales.--
``(A) In general.--Notwithstanding subsection (a), in the
case of a short sale under section 1233, reporting under this
section shall be made for the year in which such sale is
closed.
``(B) Exception for constructive sales.--Subparagraph (A)
shall not apply to any short sale which results in a
constructive sale under section 1259 with respect to property
held in the account in which the short sale is entered
into.''.
(2) Broker information required with respect to options.--
Section 6045, as amended by subsection (a), is amended by
adding at the end the following new subsection:
``(h) Application to Options on Securities.--
``(1) Exercise of option.--For purposes of this section, in
the case of any exercise of an option on a covered security
where the option was granted or acquired in the same account
as the covered security, the amount received or paid with
respect to such exercise shall be treated as an adjustment to
gross proceeds or as an adjustment to basis, as the case may
be.
``(2) Lapse or closing transaction.--For purposes of this
section, in the case of the lapse (or closing transaction (as
defined in section 1234(b)(2)(A))) of an option on a
specified security where the taxpayer is the grantor of the
option, this section shall apply as if the premium received
for such option were gross proceeds received on the date of
the lapse or closing transaction, and the cost (if any) of
the closing transaction shall be taken into account as
adjusted basis. In the case of an option on a specified
security where the taxpayer is the grantee of such option,
this section shall apply as if the grantee received gross
proceeds of zero on the date of the lapse.
``(3) Prospective application.--Paragraphs (1) and (2)
shall not apply to any option which is granted or acquired
before January 1, 2011.
``(4) Definitions.--For purposes of this subsection, the
terms `covered security' and `specified security' shall have
the meanings given such terms in subsection (g)(3).''.
(3) Extension of period for statements sent to customers.--
(A) In general.--Subsection (b) of section 6045 is amended
by striking ``January 31'' and inserting ``February 15
(January 31 in the case of returns for calendar years before
2010)''.
(B) Statements related to substitute payments.--Subsection
(d) of section 6045 is amended--
(i) by striking ``at such time and'', and
(ii) by inserting after ``other item.'' the following new
sentence: ``In the case of a payment made during any calendar
year after 2009, the written statement required under the
preceding sentence shall be furnished on or before February
15 of the year following the calendar year in which the
payment was made.''.
(C) Other statements.--Subsection (b) of section 6045 is
amended by adding at the end the following: ``In the case of
a consolidated reporting statement (as defined in
regulations) with respect to any account which includes the
statement required by this subsection, any statement which
would otherwise be required to be furnished on or before
January 31 of a calendar year after 2010 under section
6042(c), 6049(c)(2)(A), or 6050N(b) with respect to any item
in such account shall instead be required to be furnished on
or before February 15 of such calendar year if furnished as
part of such consolidated reporting statement.''.
(b) Determination of Basis of Certain Securities on Account
by Account Method.--Section 1012 (relating to basis of
property-cost) is amended--
(1) by striking ``The basis of property'' and inserting the
following:
``(a) In General.--The basis of property'',
(2) by striking ``The cost of real property'' and inserting
the following:
``(b) Special Rule for Apportioned Real Estate Taxes.--The
cost of real property'', and
(3) by adding at the end the following new subsection:
``(c) Determinations by Account.--
``(1) In general.--In the case of the sale, exchange, or
other disposition of a specified security on or after the
applicable date, the conventions prescribed by regulations
under this section shall be applied on an account by account
basis.
``(2) Application to open-end funds.--
``(A) In general.--Except as provided in subparagraph (B),
any stock in an open-end fund acquired before January 1,
2009, shall be treated as a separate account from any such
stock acquired on or after such date.
``(B) Election by open-end fund for treatment as single
account.--If an open-end fund elects (at such time and in
such form and manner as the Secretary may prescribe) to have
this subparagraph apply with respect to one or more of its
stockholders--
``(i) subparagraph (A) shall not apply with respect to any
stock in such fund held by such stockholders, and
``(ii) all stock in such fund which is held by such
stockholders shall be treated as covered securities described
in section 6045(g)(3) without regard to the date of the
acquisition of such stock.
A rule similar to the rule of the preceding sentence shall
apply with respect to a broker holding stock in an open-end
fund as a nominee.
``(3) Definitions.--For purposes of this section, the terms
`specified security', `applicable date', and `open-end fund'
shall have the meaning given such terms in section
6045(g).''.
(c) Information by Transferors To Aid Brokers.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6045 the
following new section:
``SEC. 6045A. INFORMATION REQUIRED IN CONNECTION WITH
TRANSFERS OF COVERED SECURITIES TO BROKERS.
``(a) Furnishing of Information.--Every applicable person
which transfers to a broker (as defined in section
6045(c)(1)) a security which is a covered security (as
defined in section 6045(g)(3)) in the hands of such
applicable person shall furnish to such broker a written
statement in such manner and setting forth such information
as the Secretary may by regulations prescribe for purposes of
enabling such broker to meet the requirements of section
6045(g).
``(b) Applicable Person.--For purposes of subsection (a),
the term `applicable person' means--
``(1) any broker (as defined in section 6045(c)(1)), and
``(2) any other person as provided by the Secretary in
regulations.
``(c) Time for Furnishing Statement.--Any statement
required by subsection (a) shall be furnished not later than
the earlier of--
``(1) 45 days after the date of the transfer described in
subsection (a), or
``(2) January 15 of the year following the calendar year
during which such transfer occurred.''.
(2) Assessable penalties.--Paragraph (2) of section 6724(d)
(defining payee statement) is amended by redesignating
subparagraphs (I) through (CC) as subparagraphs (J) through
(DD), respectively, and by inserting after subparagraph (H)
the following new subparagraph:
``(I) section 6045A (relating to information required in
connection with transfers of covered securities to
brokers).''.
(3) Clerical amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 is amended by
inserting after the item relating to section 6045 the
following new item:
``Sec. 6045A. Information required in connection with transfers of
covered securities to brokers.''.
(d) Additional Issuer Information to Aid Brokers.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986, as amended
by subsection (b), is amended by inserting after section
6045A the following new section:
``SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING BASIS OF
SPECIFIED SECURITIES.
``(a) In General.--According to the forms or regulations
prescribed by the Secretary, any issuer of a specified
security shall make a return setting forth--
``(1) a description of any organizational action which
affects the basis of such specified security of such issuer,
``(2) the quantitative effect on the basis of such
specified security resulting from such action, and
``(3) such other information as the Secretary may
prescribe.
``(b) Time for Filing Return.--Any return required by
subsection (a) shall be filed not later than the earlier of--
``(1) 45 days after the date of the action described in
subsection (a), or
``(2) January 15 of the year following the calendar year
during which such action occurred.
``(c) Statements To Be Furnished to Holders of Specified
Securities or Their Nominees.--According to the forms or
regulations prescribed by the Secretary, every
[[Page H14419]]
person required to make a return under subsection (a) with
respect to a specified security shall furnish to the nominee
with respect to the specified security (or certificate holder
if there is no nominee) a written statement showing--
``(1) the name, address, and phone number of the
information contact of the person required to make such
return,
``(2) the information required to be shown on such return
with respect to such security, and
``(3) such other information as the Secretary may
prescribe.
The written statement required under the preceding sentence
shall be furnished to the holder on or before January 15 of
the year following the calendar year during which the action
described in subsection (a) occurred.
``(d) Specified Security.--For purposes of this section,
the term `specified security' has the meaning given such term
by section 6045(g)(3)(B). No return shall be required under
this section with respect to actions described in subsection
(a) with respect to a specified security which occur before
the applicable date (as defined in section 6045(g)(3)(C))
with respect to such security.
``(e) Public Reporting in Lieu of Return.--The Secretary
may waive the requirements under subsections (a) and (c) with
respect to a specified security, if the person required to
make the return under subsection (a) makes publicly
available, in such form and manner as the Secretary
determines necessary to carry out the purposes of this
section--
``(1) the name, address, phone number, and email address of
the information contact of such person, and
``(2) the information described in paragraphs (1), (2), and
(3) of subsection (a).''.
(2) Assessable penalties.--
(A) Subparagraph (B) of section 6724(d)(1) of such Code
(defining information return) is amended by redesignating
clauses (iv) through (xix) as clauses (v) through (xx),
respectively, and by inserting after clause (iii) the
following new clause:
``(iv) section 6045B(a) (relating to returns relating to
actions affecting basis of specified securities),''.
(B) Paragraph (2) of section 6724(d) of such Code (defining
payee statement), as amended by subsection (c)(2), is amended
by redesignating subparagraphs (J) through (DD) as
subparagraphs (K) through (EE), respectively, and by
inserting after subparagraph (I) the following new
subparagraph:
``(J) subsections (c) and (e) of section 6045B (relating to
returns relating to actions affecting basis of specified
securities).''.
(3) Clerical amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 of such Code, as
amended by subsection (b)(3), is amended by inserting after
the item relating to section 6045A the following new item:
``Sec. 6045B. Returns relating to actions affecting basis of specified
securities.''.
(e) Effective Date.--The amendments made by this section
shall take effect on January 1, 2009.
(f) Study Regarding Information Returns.--
(1) In general.--The Secretary of the Treasury shall study
the effect and feasibility of delaying the date for
furnishing statements under sections 6042(c), 6045,
6049(c)(2)(A), and 6050N(b) of the Internal Revenue Code of
1986 until February 15 following the year to which such
statements relate.
(2) Report.--Not later than 6 months after the date of the
enactment of this Act, the Secretary of the Treasury shall
report to Congress on the results of the study conducted
under paragraph (1). Such report shall include the
Secretary's findings regarding--
(A) the effect on tax administration of such delay, and
(B) other administrative or legislative options to improve
compliance and ease burdens on taxpayers and brokers with
respect to such statements.
SEC. 1565. EXTENSION OF ADDITIONAL 0.2 PERCENT FUTA SURTAX.
(a) In General.--Section 3301 (relating to rate of tax) is
amended--
(1) by striking ``2007'' in paragraph (1) and inserting
``2008'', and
(2) by striking ``2008'' in paragraph (2) and inserting
``2009''.
(b) Effective Date.--The amendments made by this section
shall apply to wages paid after December 31, 2007.
SEC. 1566. TERMINATION OF TREATMENT OF NATURAL GAS
DISTRIBUTION LINES AS 15-YEAR PROPERTY.
(a) In General.--Section 168(e)(3)(E)(viii) of the Internal
Revenue Code of 1986 is amended by striking ``January 1,
2011'' and inserting ``December 4, 2007''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to property placed in service after December 3, 2007.
(2) Exception.--The amendments made by this section shall
not apply to any property with respect to which the taxpayer
or a related party has entered into a binding contract for
the construction thereof on or before December 3, 2007, or,
in the case of self-constructed property, has started
construction on or before such date.
SEC. 1567. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under subparagraph (B) of section 401(1) of
the Tax Increase Prevention and Reconciliation Act of 2005 in
effect on the date of the enactment of this Act is increased
by 6.25 percentage points.
SEC. 1568. MODIFICATION OF PENALTY FOR FAILURE TO FILE
PARTNERSHIP RETURNS.
(a) Extension of Time Limitation.--Section 6698(a)
(relating to failure to file partnership returns) is amended
by striking ``5 months'' and inserting ``12 months''.
(b) Increase in Penalty Amount.--Paragraph (1) of section
6698(b) is amended by striking ``$50'' and inserting ``$80''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed after the date of
the enactment of this Act.
Subtitle F--Secure Rural Schools
SEC. 1571. SECURE RURAL SCHOOLS AND COMMUNITY SELF-
DETERMINATION PROGRAM.
(a) Reauthorization of the Secure Rural Schools and
Community Self-Determination Act of 2000.--The Secure Rural
Schools and Community Self-Determination Act of 2000 (16
U.S.C. 500 note; Public Law 106-393) is amended by striking
sections 1 through 403 and inserting the following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Secure Rural Schools and
Community Self-Determination Act of 2000'.
``SEC. 2. PURPOSES.
``The purposes of this Act are--
``(1) to stabilize and transition payments to counties to
provide funding for schools and roads that supplements other
available funds;
``(2) to make additional investments in, and create
additional employment opportunities through, projects that--
``(A)(i) improve the maintenance of existing
infrastructure;
``(ii) implement stewardship objectives that enhance forest
ecosystems; and
``(iii) restore and improve land health and water quality;
``(B) enjoy broad-based support; and
``(C) have objectives that may include--
``(i) road, trail, and infrastructure maintenance or
obliteration;
``(ii) soil productivity improvement;
``(iii) improvements in forest ecosystem health;
``(iv) watershed restoration and maintenance;
``(v) the restoration, maintenance, and improvement of
wildlife and fish habitat;
``(vi) the control of noxious and exotic weeds; and
``(vii) the reestablishment of native species; and
``(3) to improve cooperative relationships among--
``(A) the people that use and care for Federal land; and
``(B) the agencies that manage the Federal land.
``SEC. 3. DEFINITIONS.
``In this Act:
``(1) Adjusted share.--The term `adjusted share' means the
number equal to the quotient obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (8)(A) for all eligible
counties.
``(2) Base share.--The term `base share' means the number
equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(A) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 25-
percent payments and safety net payments made to each
eligible State for each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of the amounts
calculated under clause (i) and paragraph (9)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(3) County payment.--The term `county payment' means the
payment for an eligible county calculated under section
101(b).
``(4) Eligible county.--The term `eligible county' means
any county that--
``(A) contains Federal land (as defined in paragraph (7));
and
``(B) elects to receive a share of the State payment or the
county payment under section 102(b).
``(5) Eligibility period.--The term `eligibility period'
means fiscal year 1986 through fiscal year 1999.
``(6) Eligible state.--The term `eligible State' means a
State or territory of the United States that received a 25-
percent payment for 1 or more fiscal years of the eligibility
period.
``(7) Federal land.--The term `Federal land' means--
``(A) land within the National Forest System, as defined in
section 11(a) of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1609(a)) exclusive of the
National Grasslands and land utilization projects designated
as National Grasslands administered pursuant to the Act of
July 22, 1937 (7 U.S.C. 1010-1012); and
``(B) such portions of the revested Oregon and California
Railroad and reconveyed Coos
[[Page H14420]]
Bay Wagon Road grant land as are or may hereafter come under
the jurisdiction of the Department of the Interior, which
have heretofore or may hereafter be classified as
timberlands, and power-site land valuable for timber, that
shall be managed, except as provided in the former section 3
of the Act of August 28, 1937 (50 Stat. 875; 43 U.S.C.
1181c), for permanent forest production.
``(8) 50-Percent adjusted share.--The term `50-percent
adjusted share' means the number equal to the quotient
obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the 50-percent base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (1)(A) for all eligible
counties.
``(9) 50-Percent base share.--The term `50-percent base
share' means the number equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(B) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 50-
percent payments made to each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of the amounts
calculated under clause (i) and paragraph (2)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(10) 50-percent payment.--The term `50-percent payment'
means the payment that is the sum of the 50-percent share
otherwise paid to a county pursuant to title II of the Act of
August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f),
and the payment made to a county pursuant to the Act of May
24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et
seq.).
``(11) Full funding amount.--The term `full funding amount'
means--
``(A) $500,000,000 for fiscal year 2008; and
``(B) for fiscal year 2009 and each fiscal year thereafter,
the amount that is equal to 85 percent of the full funding
amount for the preceding fiscal year.
``(12) Income adjustment.--The term `income adjustment'
means the square of the quotient obtained by dividing--
``(A) the per capita personal income for each eligible
county; by
``(B) the median per capita personal income of all eligible
counties.
``(13) Per capita personal income.--The term `per capita
personal income' means the most recent per capita personal
income data, as determined by the Bureau of Economic
Analysis.
``(14) Safety net payments.--The term `safety net payments'
means the special payment amounts paid to States and counties
required by section 13982 or 13983 of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500
note; 43 U.S.C. 1181f note).
``(15) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of Agriculture or the designee of the
Secretary of Agriculture with respect to the Federal land
described in paragraph (7)(A); and
``(B) the Secretary of the Interior or the designee of the
Secretary of the Interior with respect to the Federal land
described in paragraph (7)(B).
``(16) State payment.--The term `State payment' means the
payment for an eligible State calculated under section
101(a).
``(17) 25-Percent payment.--The term `25-percent payment'
means the payment to States required by the sixth paragraph
under the heading of `FOREST SERVICE' in the Act of May 23,
1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act
of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL
LAND
``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL
LAND.
``(a) State Payment.--For each of fiscal years 2008 through
2011, the Secretary of Agriculture shall calculate for each
eligible State an amount equal to the sum of the products
obtained by multiplying--
``(1) the adjusted share for each eligible county within
the eligible State; by
``(2) the full funding amount for the fiscal year.
``(b) County Payment.--For each of fiscal years 2008
through 2011, the Secretary of the Interior shall calculate
for each eligible county that received a 50-percent payment
during the eligibility period an amount equal to the product
obtained by multiplying--
``(1) the 50-percent adjusted share for the eligible
county; by
``(2) the full funding amount for the fiscal year.
``SEC. 102. PAYMENTS TO STATES AND COUNTIES.
``(a) Payment Amounts.--Except as provided in section 103,
the Secretary of the Treasury shall pay to--
``(1) a State or territory of the United States an amount
equal to the sum of the amounts elected under subsection (b)
by each county within the State or territory for--
``(A) if the county is eligible for the 25-percent payment,
the share of the 25-percent payment; or
``(B) the share of the State payment of the eligible
county; and
``(2) a county an amount equal to the amount elected under
subsection (b) by each county for--
``(A) if the county is eligible for the 50-percent payment,
the 50-percent payment; or
``(B) the county payment for the eligible county.
``(b) Election To Receive Payment Amount.--
``(1) Election; submission of results.--
``(A) In general.--The election to receive a share of the
State payment, the county payment, a share of the State
payment and the county payment, a share of the 25-percent
payment, the 50-percent payment, or a share of the 25-percent
payment and the 50-percent payment, as applicable, shall be
made at the discretion of each affected county by August 1,
2008, and August 1 of each second fiscal year thereafter, in
accordance with paragraph (2), and transmitted to the
Secretary concerned by the Governor of each eligible State.
``(B) Failure to transmit.--If an election for an affected
county is not transmitted to the Secretary concerned by the
date specified under subparagraph (A), the affected county
shall be considered to have elected to receive a share of the
State payment, the county payment, or a share of the State
payment and the county payment, as applicable.
``(2) Duration of election.--
``(A) In general.--A county election to receive a share of
the 25-percent payment or 50-percent payment, as applicable,
shall be effective for 2 fiscal years.
``(B) Full funding amount.--If a county elects to receive a
share of the State payment or the county payment, the
election shall be effective for all subsequent fiscal years
through fiscal year 2011.
``(3) Source of payment amounts.--The payment to an
eligible State or eligible county under this section for a
fiscal year shall be derived from--
``(A) any revenues, fees, penalties, or miscellaneous
receipts, exclusive of deposits to any relevant trust fund,
special account, or permanent operating funds, received by
the Federal Government from activities by the Bureau of Land
Management or the Forest Service on the applicable Federal
land; and
``(B) to the extent of any shortfall, out of any amounts in
the Treasury of the United States not otherwise appropriated.
``(c) Distribution and Expenditure of Payments.--
``(1) Distribution method.--A State that receives a payment
under subsection (a) for Federal land described in section
3(7)(A) shall distribute the appropriate payment amount among
the appropriate counties in the State in accordance with--
``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
``(B) section 13 of the Act of March 1, 1911 (36 Stat. 963;
16 U.S.C. 500).
``(2) Expenditure purposes.--Subject to subsection (d),
payments received by a State under subsection (a) and
distributed to counties in accordance with paragraph (1)
shall be expended as required by the laws referred to in
paragraph (1).
``(d) Expenditure Rules for Eligible Counties.--
``(1) Allocations.--
``(A) Use of portion in same manner as 25-percent payment
or 50-percent payment, as applicable.--Except as provided in
paragraph (3)(B), if an eligible county elects to receive its
share of the State payment or the county payment, not less
than 80 percent, but not more than 85 percent, of the funds
shall be expended in the same manner in which the 25-percent
payments or 50-percent payment, as applicable, are required
to be expended.
``(B) Election as to use of balance.--Except as provided in
subparagraph (C), an eligible county shall elect to do 1 or
more of the following with the balance of any funds not
expended pursuant to subparagraph (A):
``(i) Reserve any portion of the balance for projects in
accordance with title II.
``(ii) Reserve not more than 7 percent of the total share
for the eligible county of the State payment or the county
payment for projects in accordance with title III.
``(iii) Return the portion of the balance not reserved
under clauses (i) and (ii) to the Treasury of the United
States.
``(C) Counties with modest distributions.--In the case of
each eligible county to which more than $100,000, but less
than $350,000, is distributed for any fiscal year pursuant to
either or both of paragraphs (1)(B) and (2)(B) of subsection
(a), the eligible county, with respect to the balance of any
funds not expended pursuant to subparagraph (A) for that
fiscal year, shall--
``(i) reserve any portion of the balance for--
``(I) carrying out projects under title II;
``(II) carrying out projects under title III; or
``(III) a combination of the purposes described in
subclauses (I) and (II); or
``(ii) return the portion of the balance not reserved under
clause (i) to the Treasury of the United States.
``(2) Distribution of funds.--
``(A) In general.--Funds reserved by an eligible county
under subparagraph (B)(i) or (C)(i) of paragraph (1) for
carrying out projects under title II shall be deposited in a
special account in the Treasury of the United States.
[[Page H14421]]
``(B) Availability.--Amounts deposited under subparagraph
(A) shall--
``(i) be available for expenditure by the Secretary
concerned, without further appropriation; and
``(ii) remain available until expended in accordance with
title II.
``(3) Election.--
``(A) Notification.--
``(i) In general.--An eligible county shall notify the
Secretary concerned of an election by the eligible county
under this subsection not later than September 30 of each
fiscal year.
``(ii) Failure to elect.--Except as provided in
subparagraph (B), if the eligible county fails to make an
election by the date specified in clause (i), the eligible
county shall--
``(I) be considered to have elected to expend 85 percent of
the funds in accordance with paragraph (1)(A); and
``(II) return the balance to the Treasury of the United
States.
``(B) Counties with minor distributions.--In the case of
each eligible county to which less than $100,000 is
distributed for any fiscal year pursuant to either or both of
paragraphs (1)(B) and (2)(B) of subsection (a), the eligible
county may elect to expend all the funds in the same manner
in which the 25-percent payments or 50-percent payments, as
applicable, are required to be expended.
``(e) Time for Payment.--The payments required under this
section for a fiscal year shall be made as soon as
practicable after the end of that fiscal year.
``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA,
OREGON, AND WASHINGTON.
``(a) Definitions.--In this section:
``(1) Adjusted amount.--The term `adjusted amount' means,
with respect to a covered State--
``(A) for fiscal year 2008, 90 percent of--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2008; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2008;
``(B) for fiscal year 2009, 76 percent of--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2009; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2009; and
``(C) for fiscal year 2010, 65 percent of--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2010; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2010.
``(2) Covered state.--The term `covered State' means each
of the States of California, Oregon, and Washington.
``(b) Transition Payments.--For each of fiscal years 2008
through 2010, in lieu of the payment amounts that otherwise
would have been made under paragraphs (1)(B) and (2)(B) of
section 102(a), the Secretary of the Treasury shall pay the
adjusted amount to each covered State and the eligible
counties within the covered State, as applicable.
``(c) Distribution of Adjusted Amount in Oregon and
Washington.--It is the intent of Congress that the method of
distributing the payments under subsection (b) among the
counties in the States of Oregon and Washington for each of
fiscal years 2008 through 2010 be in the same proportion that
the payments were distributed to the eligible counties in
fiscal year 2006.
``(d) Distribution of Payments in California.--The
following payments shall be distributed among the eligible
counties in the State of California in the same proportion
that payments under section 102(a)(2) (as in effect on
September 29, 2006) were distributed to the eligible counties
for fiscal year 2006:
``(1) Payments to the State of California under subsection
(b).
``(2) The shares of the eligible counties of the State
payment for California under section 102 for fiscal year
2011.
``(e) Treatment of Payments.--For purposes of this Act, any
payment made under subsection (b) shall be considered to be a
payment made under section 102(a).
``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND
``SEC. 201. DEFINITIONS.
``In this title:
``(1) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.
``(2) Project funds.--The term `project funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(3) Resource advisory committee.--The term `resource
advisory committee' means--
``(A) an advisory committee established by the Secretary
concerned under section 205; or
``(B) an advisory committee determined by the Secretary
concerned to meet the requirements of section 205.
``(4) Resource management plan.--The term `resource
management plan' means--
``(A) a land use plan prepared by the Bureau of Land
Management for units of the Federal land described in section
3(7)(B) pursuant to section 202 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1712); or
``(B) a land and resource management plan prepared by the
Forest Service for units of the National Forest System
pursuant to section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974l (16 U.S.C. 1604).
``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.
``(a) Limitation.--Project funds shall be expended solely
on projects that meet the requirements of this title.
``(b) Authorized Uses.--Project funds may be used by the
Secretary concerned for the purpose of entering into and
implementing cooperative agreements with willing Federal
agencies, State and local governments, private and nonprofit
entities, and landowners for protection, restoration, and
enhancement of fish and wildlife habitat, and other resource
objectives consistent with the purposes of this Act on
Federal land and on non-Federal land where projects would
benefit the resources on Federal land.
``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.
``(a) Submission of Project Proposals to Secretary
Concerned.--
``(1) Projects funded using project funds.--Not later than
September 30 for fiscal year 2008, and each September 30
thereafter for each succeeding fiscal year through fiscal
year 2011, each resource advisory committee shall submit to
the Secretary concerned a description of any projects that
the resource advisory committee proposes the Secretary
undertake using any project funds reserved by eligible
counties in the area in which the resource advisory committee
has geographic jurisdiction.
``(2) Projects funded using other funds.--A resource
advisory committee may submit to the Secretary concerned a
description of any projects that the committee proposes the
Secretary undertake using funds from State or local
governments, or from the private sector, other than project
funds and funds appropriated and otherwise available to do
similar work.
``(3) Joint projects.--Participating counties or other
persons may propose to pool project funds or other funds,
described in paragraph (2), and jointly propose a project or
group of projects to a resource advisory committee
established under section 205.
``(b) Required Description of Projects.--In submitting
proposed projects to the Secretary concerned under subsection
(a), a resource advisory committee shall include in the
description of each proposed project the following
information:
``(1) The purpose of the project and a description of how
the project will meet the purposes of this title.
``(2) The anticipated duration of the project.
``(3) The anticipated cost of the project.
``(4) The proposed source of funding for the project,
whether project funds or other funds.
``(5)(A) Expected outcomes, including how the project will
meet or exceed desired ecological conditions, maintenance
objectives, or stewardship objectives.
``(B) An estimate of the amount of any timber, forage, and
other commodities and other economic activity, including jobs
generated, if any, anticipated as part of the project.
``(6) A detailed monitoring plan, including funding needs
and sources, that--
``(A) tracks and identifies the positive or negative
impacts of the project, implementation, and provides for
validation monitoring; and
``(B) includes an assessment of the following:
``(i) Whether or not the project met or exceeded desired
ecological conditions; created local employment or training
opportunities, including summer youth jobs programs such as
the Youth Conservation Corps where appropriate.
``(ii) Whether the project improved the use of, or added
value to, any products removed from land consistent with the
purposes of this title.
``(7) An assessment that the project is to be in the public
interest.
``(c) Authorized Projects.--Projects proposed under
subsection (a) shall be consistent with section 2.
``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY
CONCERNED.
``(a) Conditions for Approval of Proposed Project.--The
Secretary concerned may make a decision to approve a project
submitted by a resource advisory committee under section 203
only if the proposed project satisfies each of the following
conditions:
``(1) The project complies with all applicable Federal laws
(including regulations).
``(2) The project is consistent with the applicable
resource management plan and with any watershed or subsequent
plan developed
[[Page H14422]]
pursuant to the resource management plan and approved by the
Secretary concerned.
``(3) The project has been approved by the resource
advisory committee in accordance with section 205, including
the procedures issued under subsection (e) of that section.
``(4) A project description has been submitted by the
resource advisory committee to the Secretary concerned in
accordance with section 203.
``(5) The project will improve the maintenance of existing
infrastructure, implement stewardship objectives that enhance
forest ecosystems, and restore and improve land health and
water quality.
``(b) Environmental Reviews.--
``(1) Request for payment by county.--The Secretary
concerned may request the resource advisory committee
submitting a proposed project to agree to the use of project
funds to pay for any environmental review, consultation, or
compliance with applicable environmental laws required in
connection with the project.
``(2) Conduct of environmental review.--If a payment is
requested under paragraph (1) and the resource advisory
committee agrees to the expenditure of funds for this
purpose, the Secretary concerned shall conduct environmental
review, consultation, or other compliance responsibilities in
accordance with Federal laws (including regulations).
``(3) Effect of refusal to pay.--
``(A) In general.--If a resource advisory committee does
not agree to the expenditure of funds under paragraph (1),
the project shall be deemed withdrawn from further
consideration by the Secretary concerned pursuant to this
title.
``(B) Effect of withdrawal.--A withdrawal under
subparagraph (A) shall be deemed to be a rejection of the
project for purposes of section 207(c).
``(c) Decisions of Secretary Concerned.--
``(1) Rejection of projects.--
``(A) In general.--A decision by the Secretary concerned to
reject a proposed project shall be at the sole discretion of
the Secretary concerned.
``(B) No administrative appeal or judicial review.--
Notwithstanding any other provision of law, a decision by the
Secretary concerned to reject a proposed project shall not be
subject to administrative appeal or judicial review.
``(C) Notice of rejection.--Not later than 30 days after
the date on which the Secretary concerned makes the rejection
decision, the Secretary concerned shall notify in writing the
resource advisory committee that submitted the proposed
project of the rejection and the reasons for rejection.
``(2) Notice of project approval.--The Secretary concerned
shall publish in the Federal Register notice of each project
approved under subsection (a) if the notice would be required
had the project originated with the Secretary.
``(d) Source and Conduct of Project.--Once the Secretary
concerned accepts a project for review under section 203, the
acceptance shall be deemed a Federal action for all purposes.
``(e) Implementation of Approved Projects.--
``(1) Cooperation.--Notwithstanding chapter 63 of title 31,
United States Code, using project funds the Secretary
concerned may enter into contracts, grants, and cooperative
agreements with States and local governments, private and
nonprofit entities, and landowners and other persons to
assist the Secretary in carrying out an approved project.
``(2) Best value contracting.--
``(A) In general.--For any project involving a contract
authorized by paragraph (1) the Secretary concerned may elect
a source for performance of the contract on a best value
basis.
``(B) Factors.--The Secretary concerned shall determine
best value based on such factors as--
``(i) the technical demands and complexity of the work to
be done;
``(ii)(I) the ecological objectives of the project; and
``(II) the sensitivity of the resources being treated;
``(iii) the past experience by the contractor with the type
of work being done, using the type of equipment proposed for
the project, and meeting or exceeding desired ecological
conditions; and
``(iv) the commitment of the contractor to hiring highly
qualified workers and local residents.
``(3) Merchantable timber contracting pilot program.--
``(A) Establishment.--The Secretary concerned shall
establish a pilot program to implement a certain percentage
of approved projects involving the sale of merchantable
timber using separate contracts for--
``(i) the harvesting or collection of merchantable timber;
and
``(ii) the sale of the timber.
``(B) Annual percentages.--Under the pilot program, the
Secretary concerned shall ensure that, on a nationwide basis,
not less than the following percentage of all approved
projects involving the sale of merchantable timber are
implemented using separate contracts:
``(i) For fiscal year 2008, 35 percent.
``(ii) For fiscal year 2009, 45 percent.
``(iii) For each of fiscal years 2010 and 2011, 50 percent.
``(C) Inclusion in pilot program.--The decision whether to
use separate contracts to implement a project involving the
sale of merchantable timber shall be made by the Secretary
concerned after the approval of the project under this title.
``(D) Assistance.--
``(i) In general.--The Secretary concerned may use funds
from any appropriated account available to the Secretary for
the Federal land to assist in the administration of projects
conducted under the pilot program.
``(ii) Maximum amount of assistance.--The total amount
obligated under this subparagraph may not exceed $1,000,000
for any fiscal year during which the pilot program is in
effect.
``(E) Review and report.--
``(i) Initial report.--Not later than September 30, 2010,
the Comptroller General shall submit to the Committees on
Agriculture, Nutrition, and Forestry and Energy and Natural
Resources of the Senate and the Committees on Agriculture and
Natural Resources of the House of Representatives a report
assessing the pilot program.
``(ii) Annual report.--The Secretary concerned shall submit
to the Committees on Agriculture, Nutrition, and Forestry and
Energy and Natural Resources of the Senate and the Committees
on Agriculture and Natural Resources of the House of
Representatives an annual report describing the results of
the pilot program.
``(f) Requirements for Project Funds.--The Secretary shall
ensure that at least 50 percent of all project funds be used
for projects that are primarily dedicated--
``(1) to road maintenance, decommissioning, or
obliteration; or
``(2) to restoration of streams and watersheds.
``SEC. 205. RESOURCE ADVISORY COMMITTEES.
``(a) Establishment and Purpose of Resource Advisory
Committees.--
``(1) Establishment.--The Secretary concerned shall
establish and maintain resource advisory committees to
perform the duties in subsection (b), except as provided in
paragraph (4).
``(2) Purpose.--The purpose of a resource advisory
committee shall be--
``(A) to improve collaborative relationships; and
``(B) to provide advice and recommendations to the land
management agencies consistent with the purposes of this
title.
``(3) Access to resource advisory committees.--To ensure
that each unit of Federal land has access to a resource
advisory committee, and that there is sufficient interest in
participation on a committee to ensure that membership can be
balanced in terms of the points of view represented and the
functions to be performed, the Secretary concerned may,
establish resource advisory committees for part of, or 1 or
more, units of Federal land.
``(4) Existing advisory committees.--
``(A) In general.--An advisory committee that meets the
requirements of this section, a resource advisory committee
established before September 29, 2006, or an advisory
committee determined by the Secretary concerned before
September 29, 2006, to meet the requirements of this section
may be deemed by the Secretary concerned to be a resource
advisory committee for the purposes of this title.
``(B) Charter.--A charter for a committee described in
subparagraph (A) that was filed on or before September 29,
2006, shall be considered to be filed for purposes of this
Act.
``(C) Bureau of land management advisory committees.--The
Secretary of the Interior may deem a resource advisory
committee meeting the requirements of subpart 1784 of part
1780 of title 43, Code of Federal Regulations, as a resource
advisory committee for the purposes of this title.
``(b) Duties.--A resource advisory committee shall--
``(1) review projects proposed under this title by
participating counties and other persons;
``(2) propose projects and funding to the Secretary
concerned under section 203;
``(3) provide early and continuous coordination with
appropriate land management agency officials in recommending
projects consistent with purposes of this Act under this
title;
``(4) provide frequent opportunities for citizens,
organizations, tribes, land management agencies, and other
interested parties to participate openly and meaningfully,
beginning at the early stages of the project development
process under this title;
``(5)(A) monitor projects that have been approved under
section 204; and
``(B) advise the designated Federal official on the
progress of the monitoring efforts under subparagraph (A);
and
``(6) make recommendations to the Secretary concerned for
any appropriate changes or adjustments to the projects being
monitored by the resource advisory committee.
``(c) Appointment by the Secretary.--
``(1) Appointment and term.--
``(A) In general.--The Secretary concerned, shall appoint
the members of resource advisory committees for a term of 4
years beginning on the date of appointment.
``(B) Reappointment.--The Secretary concerned may reappoint
members to subsequent 4-year terms.
``(2) Basic requirements.--The Secretary concerned shall
ensure that each resource advisory committee established
meets the requirements of subsection (d).
``(3) Initial appointment.--Not later than 180 days after
the date of the enactment of this Act, the Secretary
concerned shall make
[[Page H14423]]
initial appointments to the resource advisory committees.
``(4) Vacancies.--The Secretary concerned shall make
appointments to fill vacancies on any resource advisory
committee as soon as practicable after the vacancy has
occurred.
``(5) Compensation.--Members of the resource advisory
committees shall not receive any compensation.
``(d) Composition of Advisory Committee.--
``(1) Number.--Each resource advisory committee shall be
comprised of 15 members.
``(2) Community interests represented.--Committee members
shall be representative of the interests of the following 3
categories:
``(A) 5 persons that--
``(i) represent organized labor or non-timber forest
product harvester groups;
``(ii) represent developed outdoor recreation, off highway
vehicle users, or commercial recreation activities;
``(iii) represent--
``(I) energy and mineral development interests; or
``(II) commercial or recreational fishing interests;
``(iv) represent the commercial timber industry; or
``(v) hold Federal grazing or other land use permits, or
represent nonindustrial private forest land owners, within
the area for which the committee is organized.
``(B) 5 persons that represent--
``(i) nationally recognized environmental organizations;
``(ii) regionally or locally recognized environmental
organizations;
``(iii) dispersed recreational activities;
``(iv) archaeological and historical interests; or
``(v) nationally or regionally recognized wild horse and
burro interest groups, wildlife or hunting organizations, or
watershed associations.
``(C) 5 persons that--
``(i) hold State elected office (or a designee);
``(ii) hold county or local elected office;
``(iii) represent American Indian tribes within or adjacent
to the area for which the committee is organized;
``(iv) are school officials or teachers; or
``(v) represent the affected public at large.
``(3) Balanced representation.--In appointing committee
members from the 3 categories in paragraph (2), the Secretary
concerned shall provide for balanced and broad representation
from within each category.
``(4) Geographic distribution.--The members of a resource
advisory committee shall reside within the State in which the
committee has jurisdiction and, to extent practicable, the
Secretary concerned shall ensure local representation in each
category in paragraph (2).
``(5) Chairperson.--A majority on each resource advisory
committee shall select the chairperson of the committee.
``(e) Approval Procedures.--
``(1) In general.--Subject to paragraph (3), each resource
advisory committee shall establish procedures for proposing
projects to the Secretary concerned under this title.
``(2) Quorum.--A quorum must be present to constitute an
official meeting of the committee.
``(3) Approval by majority of members.--A project may be
proposed by a resource advisory committee to the Secretary
concerned under section 203(a), if the project has been
approved by a majority of members of the committee from each
of the 3 categories in subsection (d)(2).
``(f) Other Committee Authorities and Requirements.--
``(1) Staff assistance.--A resource advisory committee may
submit to the Secretary concerned a request for periodic
staff assistance from Federal employees under the
jurisdiction of the Secretary.
``(2) Meetings.--All meetings of a resource advisory
committee shall be announced at least 1 week in advance in a
local newspaper of record and shall be open to the public.
``(3) Records.--A resource advisory committee shall
maintain records of the meetings of the committee and make
the records available for public inspection.
``SEC. 206. USE OF PROJECT FUNDS.
``(a) Agreement Regarding Schedule and Cost of Project.--
``(1) Agreement between parties.--The Secretary concerned
may carry out a project submitted by a resource advisory
committee under section 203(a) using project funds or other
funds described in section 203(a)(2), if, as soon as
practicable after the issuance of a decision document for the
project and the exhaustion of all administrative appeals and
judicial review of the project decision, the Secretary
concerned and the resource advisory committee enter into an
agreement addressing, at a minimum, the following:
``(A) The schedule for completing the project.
``(B) The total cost of the project, including the level of
agency overhead to be assessed against the project.
``(C) For a multiyear project, the estimated cost of the
project for each of the fiscal years in which it will be
carried out.
``(D) The remedies for failure of the Secretary concerned
to comply with the terms of the agreement consistent with
current Federal law.
``(2) Limited use of federal funds.--The Secretary
concerned may decide, at the sole discretion of the Secretary
concerned, to cover the costs of a portion of an approved
project using Federal funds appropriated or otherwise
available to the Secretary for the same purposes as the
project.
``(b) Transfer of Project Funds.--
``(1) Initial transfer required.--As soon as practicable
after the agreement is reached under subsection (a) with
regard to a project to be funded in whole or in part using
project funds, or other funds described in section 203(a)(2),
the Secretary concerned shall transfer to the applicable unit
of National Forest System land or Bureau of Land Management
District an amount of project funds equal to--
``(A) in the case of a project to be completed in a single
fiscal year, the total amount specified in the agreement to
be paid using project funds, or other funds described in
section 203(a)(2); or
``(B) in the case of a multiyear project, the amount
specified in the agreement to be paid using project funds, or
other funds described in section 203(a)(2) for the first
fiscal year.
``(2) Condition on project commencement.--The unit of
National Forest System land or Bureau of Land Management
District concerned, shall not commence a project until the
project funds, or other funds described in section 203(a)(2)
required to be transferred under paragraph (1) for the
project, have been made available by the Secretary concerned.
``(3) Subsequent transfers for multiyear projects.--
``(A) In general.--For the second and subsequent fiscal
years of a multiyear project to be funded in whole or in part
using project funds, the unit of National Forest System land
or Bureau of Land Management District concerned shall use the
amount of project funds required to continue the project in
that fiscal year according to the agreement entered into
under subsection (a).
``(B) Suspension of work.--The Secretary concerned shall
suspend work on the project if the project funds required by
the agreement in the second and subsequent fiscal years are
not available.
``SEC. 207. AVAILABILITY OF PROJECT FUNDS.
``(a) Submission of Proposed Projects to Obligate Funds.--
By September 30 of each fiscal year through fiscal year 2011,
a resource advisory committee shall submit to the Secretary
concerned pursuant to section 203(a)(1) a sufficient number
of project proposals that, if approved, would result in the
obligation of at least the full amount of the project funds
reserved by the participating county in the preceding fiscal
year.
``(b) Use or Transfer of Unobligated Funds.--Subject to
section 208, if a resource advisory committee fails to comply
with subsection (a) for a fiscal year, any project funds
reserved by the participating county in the preceding fiscal
year and remaining unobligated shall be available for use as
part of the project submissions in the next fiscal year.
``(c) Effect of Rejection of Projects.--Subject to section
208, any project funds reserved by a participating county in
the preceding fiscal year that are unobligated at the end of
a fiscal year because the Secretary concerned has rejected
one or more proposed projects shall be available for use as
part of the project submissions in the next fiscal year.
``(d) Effect of Court Orders.--
``(1) In general.--If an approved project under this Act is
enjoined or prohibited by a Federal court, the Secretary
concerned shall return the unobligated project funds related
to the project to the participating county or counties that
reserved the funds.
``(2) Expenditure of funds.--The returned funds shall be
available for the county to expend in the same manner as the
funds reserved by the county under subparagraph (B) or (C)(i)
of section 102(d)(1).
``SEC. 208. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title shall terminate on September 30, 2011.
``(b) Deposits in Treasury.--Any project funds not
obligated by September 30, 2012, shall be deposited in the
Treasury of the United States.
``TITLE III--COUNTY FUNDS
``SEC. 301. DEFINITIONS.
``In this title:
``(1) County funds.--The term `county funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(2) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.
``SEC. 302. USE.
``(a) Authorized Uses.--A participating county, including
any applicable agencies of the participating county, shall
use county funds, in accordance with this title, only--
``(1) to carry out activities under the Firewise
Communities program to provide to homeowners in fire-
sensitive ecosystems education on, and assistance with
implementing, techniques in home siting, home construction,
and home landscaping that can increase the protection of
people and property from wildfires;
``(2) to reimburse the participating county for search and
rescue and other emergency services, including firefighting,
that are--
``(A) performed on Federal land after the date on which the
use was approved under subsection (b);
``(B) paid for by the participating county; and
[[Page H14424]]
``(3) to develop community wildfire protection plans in
coordination with the appropriate Secretary concerned.
``(b) Proposals.--A participating county shall use county
funds for a use described in subsection (a) only after a 45-
day public comment period, at the beginning of which the
participating county shall--
``(1) publish in any publications of local record a
proposal that describes the proposed use of the county funds;
and
``(2) submit the proposal to any resource advisory
committee established under section 205 for the participating
county.
``SEC. 303. CERTIFICATION.
``(a) In General.--Not later than February 1 of the year
after the year in which any county funds were expended by a
participating county, the appropriate official of the
participating county shall submit to the Secretary concerned
a certification that the county funds expended in the
applicable year have been used for the uses authorized under
section 302(a), including a description of the amounts
expended and the uses for which the amounts were expended.
``(b) Review.--The Secretary concerned shall review the
certifications submitted under subsection (a) as the
Secretary concerned determines to be appropriate.
``SEC. 304. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title terminates on September 30, 2011.
``(b) Availability.--Any county funds not obligated by
September 30, 2012, shall be returned to the Treasury of the
United States.
``TITLE IV--MISCELLANEOUS PROVISIONS
``SEC. 401. REGULATIONS.
``The Secretary of Agriculture and the Secretary of the
Interior shall issue regulations to carry out the purposes of
this Act.
``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this Act for each of fiscal years 2008
through 2011.
``SEC. 403. TREATMENT OF FUNDS AND REVENUES.
``(a) Relation to Other Appropriations.--Funds made
available under section 402 and funds made available to a
Secretary concerned under section 206 shall be in addition to
any other annual appropriations for the Forest Service and
the Bureau of Land Management.
``(b) Deposit of Revenues and Other Funds.--All revenues
generated from projects pursuant to title II, including any
interest accrued from the revenues, shall be deposited in the
Treasury of the United States.''.
(b) Forest Receipt Payments to Eligible States and
Counties.--
(1) Act of may 23, 1908.--The sixth paragraph under the
heading ``FOREST SERVICE'' in the Act of May 23, 1908 (16
U.S.C. 500) is amended in the first sentence by striking
``twenty-five percentum'' and all that follows through
``shall be paid'' and inserting the following: ``an amount
equal to the annual average of 25 percent of all amounts
received for the applicable fiscal year and each of the
preceding 6 fiscal years from each national forest shall be
paid''.
(2) Weeks law.--Section 13 of the Act of March 1, 1911
(commonly known as the ``Weeks Law'') (16 U.S.C. 500) is
amended in the first sentence by striking ``twenty-five
percentum'' and all that follows through ``shall be paid''
and inserting the following: ``an amount equal to the annual
average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal
years from each national forest shall be paid''.
(c) Payments in Lieu of Taxes.--
(1) In general.--Section 6906 of title 31, United States
Code, is amended to read as follows:
``Sec. 6906. Funding
``For fiscal year 2009--
``(1) each county or other eligible unit of local
government shall be entitled to payment under this chapter;
and
``(2) sums shall be made available to the Secretary of the
Interior for obligation or expenditure in accordance with
this chapter.''.
(2) Conforming amendment.--The table of sections for
chapter 69 of title 31, United States Code, is amended by
striking the item relating to section 6906 and inserting the
following:
``6906. Funding.''.
(3) Budget scorekeeping.--
(A) In general.--Notwithstanding the Budget Scorekeeping
Guidelines and the accompanying list of programs and accounts
set forth in the joint explanatory statement of the committee
of conference accompanying Conference Report 105-217, the
amendment made by paragraph (1) shall be treated in the
baseline for purposes of section 257 of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907) (as
in effect before September 30, 2002), by the Chairpersons of
the Committee on the Budget of the House of Representatives
and the Committee on the Budget of the Senate, as
appropriate, for purposes of budget enforcement in the House
of Representatives and the Senate, and under the
Congressional Budget Act of 1974 (2 U.S.C. 601 et seq.) as if
Payment in Lieu of Taxes (14-1114-0-1-806) were an account
designated as Appropriated Entitlements and Mandatories for
Fiscal Year 1997 in the joint explanatory statement of the
committee of conference accompanying Conference Report 105-
217.
(B) Effective date.--This paragraph shall--
(i) be effective beginning on the date of enactment of this
Act; and
(ii) remain in effect for any fiscal year for which the
entitlement in section 6906 of title 31, United States Code
(as amended by paragraph (1)), applies.
In lieu of the matter proposed to be inserted for the title
of the bill, H.R. 6, insert the following: ``An Act to move
the United States toward greater energy independence and
security, to increase the production of clean renewable
fuels, to protect consumers, to increase the efficiency of
products, buildings, and vehicles, to promote research on and
deploy greenhouse gas capture and storage options, and to
improve the energy performance of the Federal Government, and
for other purposes.''.
The SPEAKER pro tempore. Pursuant to House Resolution 846, the
gentleman from Michigan (Mr. Dingell) and the gentleman from Texas (Mr.
Barton) each will control 30 minutes.
The Chair recognizes the gentleman from Michigan.
General Leave
Mr. DINGELL. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and to insert extraneous materials on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. DINGELL. Mr. Speaker, at this time I yield 1 minute to my
distinguished friend and colleague, the majority leader of the House,
the Honorable Mr. Hoyer, a great Member of Congress and a great friend
of mine.
Mr. HOYER. Mr. Speaker, I thank my distinguished friend, the dean of
the House, John Dingell of the State of Michigan, for yielding. I also
thank him for his extraordinary leadership for over half a century, his
father in an extended period before that, a distinguished career of
service to this country and focus on the strength and growth of this
country, on the health of our people, and of the opportunities for our
workers. John Dingell is a giant with whom we serve. John Dingell is a
giant of a leader in the Congress of the United States.
Mr. Speaker, tomorrow we will remember one of the most solemn
occasions in our Nation's history, the 66th anniversary of a ``date
which will live in infamy,'' the day in which our Nation was attacked
by an enemy that we now count as an ally. Let us hope, and I believe
that many years from now, this day, December 6, 2007, will be
remembered by future generations as the date upon which the New
Direction 110th Congress took a historic step in moving our Nation
toward real energy independence and casting off the bonds of dependence
that threaten America's national, economic, and environmental security.
The bipartisan compromise legislation before us, the Energy
Independence and Security Act, is nothing less, Mr. Speaker, than our
generation's declaration of independence from foreign sources of
petroleum. In particular, I want to thank Speaker Pelosi, Chairman
Dingell, Chairman Rangel, Chairman Gordon, and so many other Chairs of
committees for the extraordinary work and effort that has made this day
possible, which they put forward.
I am pleased that this legislation incorporates some of the ideas in
the Progress Act, legislation that I have worked on with Chairman
Dingell and many of our other committee Chairs. This legislation of
course, like all legislation, is not perfect. However, when we pass
this bill, we will be voting to strengthen our national security, lower
energy costs, grow our economy, and create new jobs and, as well, begin
to reduce global warming.
Among other things, this legislation takes groundbreaking steps, Mr.
Speaker, to increase the efficiency of our vehicles, raising fuel
economy standards to 35 miles per gallon by 2020 for new cars and
trucks, the first increase in fuel economy standards since 1975. This
important step would not have been possible without the leadership of
Speaker Pelosi and the leadership of John Dingell. I thank them both
for their efforts.
This provision alone will save American families an estimated $700 to
$1,000 per year at the pump and reduce oil consumption by 1.1 million
gallons per day in 2020. This single step will reduce
[[Page H14425]]
by one-half what we currently import from the Persian Gulf. This
legislation also makes a historic commitment to American-grown
biofuels, including incentives to boost the production of biofuels and
the number of flex fuel and other alternative vehicles, and
establishing a tax credit for plug-in hybrid vehicles.
In addition, Mr. Speaker, it requires that 15 percent of our
electricity come from renewable sources; strengthens energy efficiency
for a wide range of products, appliances, lighting and buildings, to
reduce energy costs to consumers; and repeals tax breaks for oil
companies and invests that money in clean renewable energy and American
technologies.
The oil companies of course are making extraordinary profits to give
them incentive to continue to provide us with the incentive that we
need. But they do not need additional subsidies from this Congress. It
is telling that this legislation is supported by a broad coalition of
environmental, business, labor, and farm groups, as well as State and
local officials.
For example, my friend and our former colleague, Dave McCurdy,
president and CEO of the Alliance of Automobile Manufacturers, stated:
``We believe this tough, national fuel economy bill will be good for
both consumers and energy security.'' I want to thank Congressman
McCurdy for his work on this bill, and I want to thank John Dingell,
again, without whom this compromise could not have been reached. Paul
Bledsoe of the National Commission on Energy Policy said: ``If it
becomes law, this deal will mark the most important step toward
improving U.S. oil security in a generation.''
Mr. Speaker, our national character was challenged by an unprovoked
attack at Pearl Harbor 66 years ago. We rose to the occasion then; and
through our citizens' will, intelligence and ingenuity, we prevailed,
and we were strengthened.
Today, Mr. Speaker, we face a daunting but far different challenge, a
challenge that compels us to confront and conquer our Nation's
addiction to petroleum. This legislation will help to do so. I urge my
colleagues on both sides of the aisle, not for partisan objectives or
partisan reasons, but for the independence of our Nation, for the
national security of our people, for the economy of our workers, and
for the environment of our children, I urge my colleagues to vote for
this very historic and important bill. Vote to cast off the chains of
dependency that hold us back today which threaten our economic and
environmental security. Vote, my colleagues, to put America on a path
to achieve energy independence.
Before I close, Mr. Speaker, let me once again say that no one in
this body with whom I have ever served has focused on an issue so
tenaciously, so effectively, so energetically as the Speaker of this
House. When we pass this bill, it will be a testimony to her leadership
and to her commitment.
I urge my colleagues, step with history for tomorrow and our
children. Vote for this bill.
Mr. BARTON of Texas. Mr. Speaker, I yield myself 1 minute.
I respectfully disagree with our distinguished majority leader. The
bill before us is a change. It may be historic, but it is not positive.
We are moving from a market-based energy policy, which has served this
country well for over 150 years, to a government-mandated energy
policy.
{time} 1315
We are mandating 36 billion gallons of biofuels which don't exist and
probably won't exist. We are mandating that 15 percent of all investor-
owned utilities be generated by renewable means, where in some States
that is physically impossible. We are mandating that we improve
automobile fuel economy to 35 miles per gallon by a date certain,
which, if that is technically feasible, it is going to be very
expensive and probably raise the average price of an automobile several
thousands of dollars.
We are mandating all of these things in the interests of energy
security, which is a noble goal. I think we would be better off
developing the domestic resources of our great land, just like it says
up there in the quote from Daniel Webster, instead of engaging in
government mandates which will raise costs and probably not increase
supplies.
Mr. DINGELL. Mr. Speaker, I yield myself 3 minutes.
Mr. Speaker, it is not unknown that I have had some reservations
about the bill and about the procedure that has brought us to the
floor. I note to you, Mr. Speaker, that this is, however, a good bill
and one which I support. Indeed, this is legislation which the Nation
has to have, and, for that reason, I urge my colleagues to vote for it.
I begin with proper commendations to our Speaker, to Mr. Hoyer, to
Mr. Rangel, Mr. Gordon, Mr. Peterson of Minnesota, Mr. Oberstar, Mr.
Rahall, and Mr. George Miller of California, the Chairs of our
colleagues' committees, for their good work and leadership on this
matter, and I do salute you, Madam Speaker, for your leadership here.
I would note that the perfection of this matter or how it was handled
is not a question before us, but, rather, it is what we should do about
a major problem which this Nation confronts. In my extension of
remarks, I will talk about the costs of failure to act at this time.
This is not a bill that the Committee on Energy and Commerce and my
colleagues and I would have written if it had followed the regular
order, nor, indeed, is it achieved under the order which we would have
followed. Indeed, it is a process which is brought about in good part
because of the lack of interest by the White House and, very frankly,
the incompetence and the indifference and the arrogance of the other
body.
I will be voting for this legislation because it contains a number of
significant landmark achievements. It will raise fuel economy standards
by 40 percent, to 35 miles per gallon, and it will do it in a way which
achieves and protects American jobs and it gives manufacturers proper
flexibility in achieving our goals.
It also closes what has been misleadingly, and I think dishonestly,
called the SUV loophole. It expands incentives for the production of
cars and trucks that run on renewable fuels, and it will help American
factories to retool to build the cars and trucks of tomorrow.
I want to, at this time, pay particular compliment and
congratulations to two of our very able colleagues and those who have
joined them in their efforts to protect this legislation; Mr. Hill of
Indiana, an extremely valuable Member of this body, and Mr. Terry,
another very valuable Member of this body. These two Members from
Indiana and Nebraska have provided extraordinary leadership in this
matter in the Hill-Terry bill, and they deserve the thanks and the
congratulations of this Congress.
This legislation includes efficiency standards for buildings and
appliances that will remove more than 10 billion tons of carbon dioxide
from the atmosphere, an amount equal to five times the annual emissions
of all cars on the road today in the United States.
For those who are concerned about portions of the bill dealing with
renewable fuels and renewable electricity generation, I would simply
say that this is far from the final work, and the committee will carry
forward its oversight on these matters vigorously.
I reserve the balance of my time and at this time, Mr. Speaker, I ask
unanimous consent to yield the remainder of my time to the
distinguished gentleman from Virginia (Mr. Boucher), the chairman of
the Subcommittee on Energy and Air Quality, and I ask that he be
permitted to control the time.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. BARTON of Texas. Mr. Speaker, I yield 1\1/2\ minutes to the
distinguished ranking member of the Education and Workforce Committee,
the gentleman from California (Mr. McKeon).
Mr. McKEON. Mr. Speaker, I thank the gentleman for yielding.
I rise in opposition to H.R. 6, the Democrat no energy plan. As
senior Republican on the Education and Labor Committee, I oppose not
only the bill's remarkable lack of any new energy, but also its
inclusion of bureaucratic mandates that will kill American jobs and
complicate job-training.
Just yesterday, a letter was sent to the National Economic Council
Director Allan Hubbard claiming that the bill, and I quote, ``Will not
significantly expand the application of Davis-
[[Page H14426]]
Bacon prevailing wage requirements.'' Now, I don't know how the
majority defines the words ``significantly expand,'' but by my count,
this bill contains at least seven separate instances in which the
Davis-Bacon wage mandates are imposed.
Simply put, this bill furthers the majority's aggressive application
of Davis-Bacon wage mandates. Davis-Bacon wages can inflate project
costs by as much as 15 percent, costs that get passed on to taxpayers.
They also force private companies to do hundreds of millions of dollars
of excessive administrative work each year, squandering resources that
would be better spent creating jobs and spurring innovation.
As if the job killing Davis-Bacon requirements weren't bad enough,
this bill also complicates our job training system by creating a
redundant and unnecessary program to expand the energy efficient and
renewable energy workforce. If this no energy package becomes law, it
will mean more red tape, more bureaucracy and more hurdles for job
seekers. We are talking about energy efficiency. Why not talk about job
training efficiency as well?
For these and other reasons, Mr. Speaker, I cannot support the
Democrat no energy bill, and I urge my colleagues to join me in voting
``no.''
Mr. BOUCHER. Mr. Speaker, I yield myself 1 minute
(Mr. BOUCHER asked and was given permission to revise and extend his
remarks.)
Mr. BOUCHER. Mr. Speaker, while I do not favor the renewable
electricity mandate, because some areas of the country simply do not
have the resources available to meet its requirements, the bill before
us makes a substantial and important contribution to national energy
policy and I rise in support of the measure.
Its 40 separate energy efficiency provisions will reduce future
greenhouse gas emissions by 10 billion tons by the year 2030. In the
year 2030 alone, the reduction will equal the annual CO2
emissions of all of the vehicles on America's highways at the present
time. The agreement on vehicle fuel efficiency is truly a landmark
achievement.
The renewable fuels mandate will substantially lessen our reliance
upon imported oil, and the bill advances the introduction of
electrically powered vehicles and much needed CO2 separation
and storage technologies.
I urge the passage of this measure.
Mr. Speaker, I reserve the balance of my time.
Mr. BARTON of Texas. Mr. Speaker, I yield 2 minutes to the
distinguished Member from New Mexico (Mr. Pearce).
Mr. PEARCE. Mr. Speaker, we heard a comparison today between December
7 and what we are passing today. December 7 began World War II in the
Pacific, and if we read the history books, actually the war was lost by
Japan and Germany because they ran out of oil. Japan was trying to keep
us from interrupting their oil supplies and they ran out of oil. And we
are absolutely disarming ourselves, taking away our own oil for the
future here with this bill. I fail to see the connection that was being
made earlier.
We have been told right now in this debate that we should consider
what we are going to do about the problem before us. Now, the problem
before us that I saw yesterday was that Dow Chemical began to ship its
jobs overseas. Previously this summer they had announced $22 billion
worth of investment in Saudi Arabia because the price of natural gas
here is above $7, and it is below $1 there. They are simply choosing
the economic choices that lie before them.
Mr. Speaker, when this bill first passed the House of
Representatives, The Washington Post referred to it saying it would be
legislation that is welcomed in Russia and Bolivia and other countries.
The version before us today would still prompt the same comment, I am
sure.
We should be working to expand our manufacturing. We should be
working to encourage American energy companies to expand their
operations by building U.S. jobs. But this bill, today's bill, hurts
our domestic manufacturers by adding $21 billion in new taxes on
Americans, but no new taxes on those other foreign oil companies. We
are choosing foreign over domestic producers.
We should be working to help America's forest communities biomass
plants. Instead, the majority's bill prohibits this. We are stopped
dead in our tracks from taking biomass out of Federal lands, out of our
national forests. The mandate is let them burn; we don't want to take
biomass out of them.
We should be working to expand our domestic energy supply, but
instead we are restricting future supplies of energy.
China has made its choices. They are building one new coal plant each
week for the next 10 years. We are choosing to not have new energy. It
is the wrong bill. I would recommend a ``no'' vote.
Mr. BOUCHER. Mr. Speaker, at this time I recognize the gentlelady
from Nevada (Ms. Berkley) for a unanimous consent request.
(Ms. BERKLEY asked and was given permission to revise and extend her
remarks.)
Ms. BERKLEY. I thank the gentleman for yielding.
Mr. Speaker, I rise today in support of this important legislation.
For too long, our Nation has depended on the old way of doing things,
on corrupt dictators, on non-renewable and polluting sources of energy.
With this bill today, We stand at a crossroads: we can either
continue down the old, failed road, or we can move ahead with new ideas
that wean us off foreign oil, clean our skies, and ensure that our
children inherit a cleaner, safer world.
In my home State of Nevada, our legislature has required that by
2015, 20 percent of power sold to Nevadans is derived from renewables.
Already, energy providers have built or planned half a dozen major
solar power projects in order to meet the requirements. Nevadans are
looking to the future and so are our fellow Americans.
This bill is a great first step toward securing our energy
independence. It provides the right incentives to energy providers to
move to cleaner, renewable sources of energy. It sets realistic
standards for utilities to provide renewable energy sources. It sets
higher fuel efficiency standards so we can stop relying on corrupt
dictators for our energy needs.
We are far from being energy independent, but today's bill is a good
place to start, and I urge my colleagues to look to the future rather
than the past. Let's break from our old ways and support this bill.
Mr. BOUCHER. Mr. Speaker, at this time I recognize, for 3\1/2\
minutes, the chairman of the House Ways and Means Committee, the
gentleman from New York (Mr. Rangel).
Mr. RANGEL. Mr. Speaker, let me thank my friend and colleague for
yielding and giving me the opportunity to rise in support of this bill.
I am confident that this Congress will be noted for the initiative
that we are voting on today and that the American people will not be as
concerned with the process and the procedure as they would be as to
what did the Congress do in terms of dealing with the issue of global
warming as well as relieving us of the dependency on foreign oil.
These are the crucial issues that Americans have looked to us to deal
with. And I don't think it can be challenged that although there are
those who have objections that it is not all that they would want it to
be, it is a step that all of us in Congress should be proud that we
moved forward.
The Clean Renewable Energy and Conservation Tax Act of 2007, as
included in H.R. 6, presents a step in the right direction to present
solutions to the problems that our great Nation and, indeed, the world
are facing.
What did we do? To accelerate the use of clean, domestic, renewable
energy sources and alternative fuels; to promote the use of energy-
efficient products and practices and conservation; and to increase
research and development in the deployment of clean, renewable energy
and efficiency technologies.
The tax title of H.R. 6 makes good on this promise. The compromise
package includes robust incentives for renewable energy production,
increased efficiency, plug-in electric drive vehicles, and incentives
for carbon capture, as well as the sequestration of coal demonstration
projects.
The package facilitates and advances the development of advanced
electricity infrastructure, it contains incentives to mitigate carbon
remissions, it promotes the production of renewable energy and security
of our domestic fuel supply, and it encourages energy savings and
efficiency.
This package cost is fully offset by including certain provisions
that were
[[Page H14427]]
loopholes that were undeserved of being given to oil and gas giveaways,
not to the smaller suppliers of oil, but to the very largest that have
had obscene profits without the benefits of the technology necessary to
remove the dependency.
Specifically, the package will repeal the domestic manufacturing
incentive for the top five integrated producers while freezing
reductions at 6 percent for all others in the oil and gas sector. The
package tightens foreign tax credit rules for foreign oil and gas
extraction income and foreign oil-related income.
{time} 1330
I want to take this particular time to thank Steny Hoyer, Nancy
Pelosi, and, more particularly, John Dingell for bringing together the
interests and concerns of the standing committees and having us come
forward as a body to fulfill the commitment that we made earlier on
that we were going to respond to the needs of the people of our great
Nation and certainly to the people of the world.
I do hope that while there has been a lot of partisanship in terms of
lack of cooperation on the other side, that at the end of the day when
people at town hall meetings or our children and grandchildren would
ask the questions, what did we do, we can say we supported this great
historic piece of legislation.
Mr. BARTON of Texas. I yield 1\1/2\ minutes to a member of the Energy
and Commerce Committee, Mr. Upton, from the great State of Michigan.
Mr. UPTON. Mr. Speaker, I was driving in this morning listening to
the radio and I heard an ad. The ad said, vote for the bipartisan
energy bill when it comes up today, and it told you to call your local
Congressperson. Who are you going to call? Not even Ghost Busters can
find a Republican to make this a bipartisan bill.
Our energy needs in this country are going to grow by about 50
percent by the year 2030, and there is no question that we need to do a
better job on conservation, looking for alternative fuels; but this
bill doesn't do that. This bill is not the bipartisan piece of
legislation that we want. There is no bipartisan bill on the House
floor. There is no Republican substitute. There were no Republican
amendments. There was not even a conference named to try and iron out
differences between the House and the Senate. Virtually, there was no
Republican involvement or input on this legislation at all. And so,
therefore, as a consequence, there are no Republicans at least on this
side of the aisle that can make the bill bipartisan.
In 2005, we passed an important energy bill, and it was bipartisan.
Chairman Barton did a terrific job in the hearings and the conference
that we had, and it enjoyed the support then of Ranking Member Dingell
to make sure that in fact it was bipartisan. But raising taxes, which
this bill does, on energy producers is the last thing that our Nation
needs as our consumers try and grapple with higher energy costs,
whether that be heating or gasoline.
Yesterday, in an important hearing, my good friend from Michigan (Mr.
Dingell) offered advice to the panel that was there when he took over
the chairmanship of our important committee, Energy and Commerce. And
he said this. He said: ``The Parliamentarian told me that the process
needed to be fair and there needed to be a perception of fairness.''
Mr. Speaker, I lament that this bill is neither. It is not fair nor is
the perception there.
I urge my colleagues on both sides to vote ``no.''
Mr. BOUCHER. Mr. Speaker, at this time I am pleased to yield 2
minutes to the gentleman from Tennessee (Mr. Gordon), chairman of the
House Committee on Science and Technology.
Mr. GORDON of Tennessee. Mr. Speaker, for too long we have depended
on a handful of finite energy resources to power our economy. So as
energy prices inevitably rise, we can continue to hand our money over
to foreign interests, or we can invest that in our own country's energy
independence.
This week, the U.S. and world leaders are meeting to define the steps
needed to address the challenge of climate change. This energy package
will help give our country the technological bump needed to address
CO2 emissions and our dependency on foreign energy. This
bill will invest in a wide range of energy technologies that use clean
natural resources from the sun, the oceans, and our Earth. It will
boost the energy efficiency of our vehicles, buildings, and heavy
industries. And this bill provides significant increased investment in
technologies to capture and store carbon dioxide from coal-fired
plants.
I am pleased that, over the last year, the Science and Technology
Committee has worked hard to clear 14 bipartisan consensus-driven
energy and environment research bills, nine of which are included in
the House package. So I want to take this opportunity to thank those
Democrat and Republican members of our committee, and the minority and
majority staff, for their hard and good work.
And finally, Mr. Speaker, let me just respond to my friend who says
if you vote for this bill, the price of energy is going to go up. The
fact of the matter is we all know, whether you vote for or against this
bill, the price of energy is going to go up. The question is, are we
going the write the check to foreign energy cartels, or are we going to
invest that money here in America in clean alternative energy?
Mr. Speaker, I am voting for America. I am voting for this bill.
Mr. BARTON of Texas. Mr. Speaker, I yield 5 minutes to the
distinguished ranking member of the Science Committee, Mr. Hall of
Rockwall, Texas.
Mr. HALL of Texas. Mr. Speaker, I have just heard Mr. Dingell mention
World War II and Pearl Harbor and I heard Mr. Pearce answer him; and
they are both correct in what they said, that that was an energy war.
I remember like yesterday, I was 17 years old standing on the banks
of the Tombigbee River in Alabama, and a guy ran down and said the
Japanese are bombing Pearl Harbor. I didn't know where Pearl Harbor
was. I said, we had better hitchhike back to Dallas; those Japanese
will go straight to Washington. I thought Pearl Harbor was down around
Mobile somewhere. That is how ignorant I was about the Nation at that
time, but I am a little smarter now. And I remember well that Cordell
Hull and Henry Stimson cut the energy off from Japan. They had 13
months' national existence. They had to break out and go somewhere, and
we had to know they were going to. That was an energy war. So I am a
little disappointed in the majority.
During the campaign, they blamed the Republicans for high energy
prices. Here, before us today, is a bill that the Democrats are touting
as the end to high energy prices. There is one big obvious problem with
the bill: there is nothing in this bill that will bring any relief to
the citizens of our great country or that will lower the cost of a tank
of gasoline or the monthly electricity bills. It will likely in fact
have the opposite effect.
The bill authorizes billions and billions of dollars in new
government spending programs, and mandates electric companies to use
more expensive ways for electricity generation, whether they are able
to or whether they are not able to. If you don't think that is going to
make your electricity bill go up even more, then you are not really
being realistic. Electric companies are a business just like any other
business; and if their costs go up, they are going to pass them along.
We don't need to mandate Federal renewable electricity standards.
Twenty-eight States and the District of Columbia already have a
renewable portfolio standard in place. These standards were made on the
State level based on what renewable sources are available in each
State, and it is wrong for the Federal Government to enforce a one-
size-fits-all standard. My home State of Texas has a very successful
RPS. Since its inception in 1999, Texas has become the Nation's leader
in wind energy. In June of this year, a Texan put forward plans to
build the Nation's largest wind farm in the panhandle of the State.
This would be four times larger than the current wind farm.
Anyone, anyone who is serious about lowering the cost of gasoline,
then, along with research and development and renewable sources of
energy, they would be providing incentives to the oil and gas industry
to explore more areas of our country for oil and gas. They would be
providing incentives to develop our domestic sources of oil and gas.
They would be providing incentives to build more refineries. These
[[Page H14428]]
things are not only important to address today's high cost, but also
for our national security.
We cannot forget that we import a huge amount of oil from OPEC
countries that are willing to take our American dollars, but many are
not really our friends. We are shamefully dependent on foreign sources
of oil. We can't continue to compromise our national security.
Another opportunity the Democrats completely ignore in this bill is a
chance to promote the use of clean coal for much-needed new power
plants and as a source of transportation fuel. It has been said before
that the United States is the Saudi Arabia of coal. So why are we not
encouraging the environmentally friendly use of this abundant and
inexpensive domestic resource? These facilities would have the best
technologies to capture emissions in order to produce clean electricity
and the clean fuel that can be used immediately in our Nation's
pipelines, filling stations, and in our automobiles.
My constituents are doing their part to help the environment, but
they need to be able to afford to put gas in their cars so they can get
to work to provide food for their families and clothes for their
children. A lot of my constituents don't have transportation options.
There is no bus system or rail system. They live 45 miles from work, so
they certainly can't take a bike. They need their cars. They need the
fuel that they put into them to be affordable. I don't see a glimmer of
hope for them in this bill.
Mr. Speaker, I do feel very strongly that we should be looking to
efficiency, conservation, and renewable alternatives of energy to
become part of our portfolio. And I support the provisions in this bill
that do that; however, there are so many harmful things in this bill
that I think the bad, ugly highly outweighs the good.
I supported and voted for the bipartisan R&D provisions as they
existed coming out of the Science and Technology Committee and
generally remain supportive. However, I am concerned with some changes
and additions made in this amendment, changes that came about without
the opportunity for vetting or Member involvement. Participation by all
Members leads to a better product, and we know that.
For example, the Energy Policy Act of 2005 garnered the support of 38
Democrats who are still in the House when initially passed by the
House. When brought to the floor later that year for final passage, it
garnered the support of almost 70 Democrats who are still in this
House.
Mr. Speaker, I can't stress how important energy is to our country.
We have urged drilling in the Outer Shelf. Yes, China drills just off
the coast of Key West today. And we have urged drilling in ANWR. I urge
our colleagues not to play politics with our energy future.
Mr. BARTON of Texas. Mr. Speaker, I ask unanimous consent that Mr.
McCrery be allowed to control the time on the minority side.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. BOUCHER. Mr. Speaker, I am pleased to yield 2 minutes to the
gentleman from California (Mr. George Miller), the chairman of the
Committee on Education and Labor.
Mr. GEORGE MILLER of California. I thank the gentleman for yielding,
and I thank him for his leadership on this legislation. I want to thank
the leadership of Speaker Pelosi and Majority Leader Steny Hoyer, and
the skill and experience and the knowledge of Congressman John Dingell
for all of this help on this legislation.
This is a remarkable day for the United States House of
Representatives and, hopefully, for the people of this country as we
break the chokehold of those Middle Eastern countries that have us tied
to them because of oil.
The energy independence that we talk about in this legislation is the
ability, through the savings, through fuel-efficient automobiles,
through fuel-efficient appliances, through fuel-efficient houses and
businesses and buildings that the savings that we will be able to have
with respect to the use of energy and oil in this country will allow
America to make decisions based upon the American interests and not the
interests of other countries because we are tied to them because we do
not have energy efficiency in this country.
This is a remarkable piece of legislation for the benefits that it
will provide for American consumers at the gas pump, at the department
store when they buy new appliances, when they buy new homes, when they
go to work in new buildings, when they start businesses in more energy-
efficient buildings.
These are the kinds of benefits that we can have because we have
renewable energy, we have fuel standards, and we have a new CAFE
standard that is a 40 percent increase in the efficiency of automobiles
that Americans will buy into the future that will break that tether to
that high price, $3.50 gasoline as it is in California. They will be
able to go further on each one of those gallons of gasoline. That is
what we need.
This bill also creates over 3 million jobs in the green industry that
are supported by this legislation that encourages that investment in
wind and biofuels and solar energy. Those 3 million jobs, we are 8
years late coming to those jobs, but they are in this legislation; and
those jobs will be created in almost every sector of the economy no
matter what geographical area people live in. But we need to develop
those skills. And I want to thank John Tierney and Hilda Solis for
their efforts on that.
This is what the people who are betting their money on the future of
the high-tech companies, people who are betting their money in terms of
venture capitalists, that this is where they told us to go to generate
the next generation of innovation, of technology, was in energy. And
that is what we are going to do, and America is going to have a much
better energy future as a result of this legislation.
Mr. McCRERY. Mr. Speaker, I yield 3 minutes to the distinguished
gentleman from Texas, a member of the Energy and Commerce Committee,
Mr. Gene Green.
(Mr. GENE GREEN of Texas asked and was given permission to revise and
extend his remarks.)
Mr. GENE GREEN of Texas. Mr. Speaker, I would like to thank my friend
from Louisiana for allowing me to speak.
Mr. Speaker, there is no question this is a historic day. This bill
will substantially increase fuel economy standards for the first time
in over 20 years, increase energy efficiency requirements, and promote
research and development of alternative sources. These are all worthy
accomplishments, and the efforts of Chairman Dingell should be
commended.
{time} 1345
The only opportunity this Congress missed was to create a balanced
energy policy that invests in our energy future without ignoring
America's energy needs today. I believe as Democrats, we could have
crafted a sensible energy policy that actually enhances our energy
security, but that would require bringing all Democrats to the table,
including those of us who represent districts that produce energy
needed to heat our homes, fuel our vehicles, and generate our economic
prosperity.
While some improvements from the previous bill, H.R. 3221, have been
made, new additions that have not been thoroughly debated have been
included and could have a negative impact on the cost of energy in our
area.
For that reason, I must vote against the legislation and hope that we
can instead vote on an energy bill that is focused on provisions we can
agree on, such as a bill to increase CAFE standards, energy efficiency
standards, and that would actually increase energy security in the
United States.
I am particularly disappointed in the lack of discussion on the
renewable fuel standard, RFS, which was not included in our House bill
and was not moved through any regular process in the House of
Representatives. It is premature to consider expanding the RFS until
our current one is fully implemented, and we run the risk of negative
environmental impacts, questionable greenhouse gas emissions, and
increased food and energy prices with a focus on corn-based ethanol.
A sensible approach would have been to require RFS to include, prior
to taking effect, a clear mechanism to reduce the mandate in case the
environmental challenges, technological, or feasibility
[[Page H14429]]
of supply issues, or projected food price increases were impacted.
This bill includes tax provisions outside of those carefully
negotiated earlier in H.R. 6 that actually tilt the competitive playing
field for global energy resources against U.S.-based oil and gas
companies and discourage the expansion of natural gas distribution
systems.
There has been an effort to moderate some of the tax provisions
passed early in August, particularly by retaining current deduction
levels under section 199 for our Nation's independent producers. I am
glad that happened, but I am concerned with the impact on my
constituents and their electricity bills with a Federal renewable
electricity standard, the RES. Under a one-size-fits-all mandate, Texas
utilities may be forced to make payments to the Federal Government to
meet a 20 percent target or a 15 percent target, or 11 percent, now we
hear it is 11 percent, ultimately driving up costs for the utility, the
electricity users.
I wish Congress would capitalize on this historic moment and actually
make it to where we could pass an energy bill that would be bipartisan.
We could instead have a more sensible bill that focused on the
provisions we all agree on, increase CAFE standards and energy
standards, and that would meet with Senate and Presidential approval.
Mr. Speaker, there is no question this is a truly historic day for
Congress. This bill will substantially increase fuel economy standards
for the first time in over 20 years, increase energy efficiency
requirements, and promote research and development of alternative
sources of energy. These are all worthy accomplishments and the efforts
of the Chairman should be commended.
The only opportunity this Congress missed, Mr. Speaker, was to create
a balanced energy policy that invests in our energy future without
ignoring America's energy needs today. I believe as Democrats we can
craft sensible-energy policy that actually enhances our energy
security, but that would require bringing all Democrats to the table,
including those of us who represent Districts that produce the energy
needed to heat our homes, fuel our vehicles, and generate our economic
prosperity.
I believe that day will come, but after reviewing some of the
proposals contained in this legislation, it is clear we have a long way
to go. While some improvements from H.R. 3221 have been made, new
additions that have not been thoroughly debated by this House and that
could have a negative impact on the cost of energy have been included.
For that reason, I must regrettably vote against this legislation and
hope that we instead vote on an energy bill that is focused on the
provisions we can all agree on--such as a bill to increase CAFE and
energy efficiency standards--and that will actually increase the energy
security of the United States.
Renewable Fuel Standard
I am particularly disappointed in the lack of discussion and debate
with various stakeholders when crafting the expanded Renewable-Fuel
Standard, RFS, which was not included in the House-passed bill, was not
considered by the Energy and Commerce Committee, and was not moved
through the regular process of the House of Representatives.
It's premature to consider expanding the RFS before our current one
is even fully-implemented, and we run the risk of ultimately shifting
the nation's dependency on petroleum to another fuel that's costly,
less efficient, and many unintended consequences.
There is no shortage of literature detailing the negative
environmental impacts of corn- based ethanol, including soil erosion,
herbicide and insecticide pollution, aquifer depletion, and loss and
degradation of wildlife habitat.
Its effect on greenhouse gas emissions are questionable, and many
studies find that the amount of energy needed to produce ethanol is
roughly equal to the amount of energy obtained from its combustion.
The biggest loser in the blind push for ethanol is the American
consumer. I come from a low-income area in Texas where families
struggle to make ends meet. When you account for the increased cost of
transporting ethanol, its reduced fuel efficiency, and higher food
prices due to increased corn demand, all our constituents will take a
substantial hit to their pocketbooks.
Even with this, I had hoped to sit down with different RFS
stakeholders to find a reasonable solution to address these concerns. A
sensible approach would have been to require the RFS to include--prior
to taking effect--a clear mechanism to reduce the mandate in the case
of environmental challenges, infrastructure bottlenecks, technological,
feasibility or supply issues, projected food price increases, adverse
weather conditions, harm to livestock producers, or other adverse
consequences. Such evaluations could be repeated on a periodic basis to
ensure these conditions do not materialize. Unfortunately, this idea
did not have the opportunity for an open discussion and debate.
If this Congress supports this expansion, I hope we at least
understand the energy requirements we'll need to meet the mandate. Most
of the energy used to produce ethanol comes from natural gas or
electricity. A Congressional Research Service report concluded that an
increase in corn ethanol to 15 billion gallons would require an
increase in natural gas consumption, ultimately substituting energy
demand from one fossil fuel to another.
I have always believed clean-burning natural gas will play a critical
role in addressing our nation's energy needs; I just hope we remember
the important role natural gas will play in this RFS mandate as we
debate future proposals affecting domestic natural gas supply.
Tax Repeals
Next, I believe we cannot keep taxing American's energy industry and
expect to have adequate supplies of energy. This bill includes tax
provisions outside of those carefully negotiated in H.R. 6 that could
actually tilt the competitive playing field for global energy resources
against U.S. based oil and gas companies and discourage the expansion
of natural gas distribution systems.
This increase in new taxes targeted at the U.S. energy industry could
reduce our Nation's energy security by discouraging new domestic oil
and gas production and new investments in refinery capacity.
I am pleased, however, by the effort made to moderate some of the tax
provisions from H.R. 3221, particularly by retaining the current
deduction levels under Section 199 for our Nation's independent
producers. While it is fundamentally unfair to treat energy companies
differently than other companies under the manufacturers tax credit, at
least this provision does not also punish independent producers which
develop 90 percent of domestic oil and natural gas wells.
Renewable Electricity Standard
Finally, I am concerned with the impact on my constituents'
electricity bills with a federal Renewable Electricity Standard, or
RES.
I am proud to come from a State that has an impressive RES that meets
the needs of our region. Unlike most state RES plans, which are based
on a specific percentage of sales, the Texas RES plan has a fixed
statewide renewable capacity requirement of 5,880 megawatts, MW, by
2015, which would represent about 5 percent of the State's energy
capacity.
This isn't a question of whether or not we should encourage states to
produce more electricity from renewable sources--we should. The
question is whether a one-size-fits-all Federal mandate, as contained
in this legislation, is the best way to accomplish this goal.
In order to meet a 15 percent Federal RES by 2020, Texas utilities
may be forced to make payments to the Federal Government to meet this
mandate, ultimately driving up energy costs for all electricity users.
Closing
In closing, I wish that Congress would capitalize on this historic
moment and move forward with an energy bill that unites all sides of
the Caucus. We could have instead moved a more sensible bill that
focused on the provisions we all agree on--like increased CAFE and
energy efficiency standards--which would meet Senate approval and be
signed by the President. I hope this opportunity to move consensus-
based legislation is not squandered for the sake of a simple sound bite
or press release.
As we move forward in this Congress, I hope the House of
Representatives will actually address America's need to produce
additional domestic energy, both conventional and renewable, to ensure
the reliability and affordability of our nation's critical energy
supplies.
Mr. BOUCHER. Mr. Speaker, I am pleased to yield 2 minutes to the
gentleman from California (Mr. Waxman), the chairman of the Committee
on Oversight of the House.
Mr. WAXMAN. Mr. Speaker, I thank the gentleman for yielding time to
me to support the Energy Independence and Security Act. With this bill,
we will turn from the past to the future. We have begun the process of
adopting energy policies that recognize the science of global warming
and the threat to our Nation's energy security.
This legislation will finally give Americans the fuel-efficient
automobiles they want, saving families $700 to $1,000 a year. That is
money we won't be sending to dangerous regimes in the Middle East.
This legislation will finally give Americans more power from clean,
affordable, renewable energy sources, using wind, solar and biomass. We
can produce energy here and at home and fight global warming.
The legislation will give Americans more efficient appliances and
consumer
[[Page H14430]]
goods, saving us hundreds of billions of dollars on electricity bills
over the next few decades.
And there are some things this legislation will not do. It won't
diminish the EPA's authority to address global warming, which the
Supreme Court has recognized. It won't seize authority from the States
to act on global warming.
President Bush has threatened to veto this bill because it takes away
taxpayer subsidies to oil companies and supports new renewable energy
technologies. It is time for the President to do what the American
people want, not what the oil companies want.
Many of us have been fighting this fight since 2001. With the
leadership of Speaker Nancy Pelosi and other key Members, including
Chairman Dingell, we are now finally in a position to enact essential
energy reforms. I urge my colleagues to support this legislation.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this is the third time this year that I have stood
before this body to debate a tax bill dealing with energy. Like the
debates before, the bill before us today has more to do with politics
than policy. It is indeed Orwellian logic to say that gas prices are
too high; therefore, we ought to raise taxes on the oil and gas
industry. Hmm.
The majority claims that American manufacturing jobs are important,
but it is pursuing tax policies that will drive good-paying jobs in the
oil and gas industry overseas.
The majority claims to be adhering to PAYGO; yet by clever sleight of
hand, they have included an additional $900 million in tax relief for
New York that falls just outside the budget window, thereby evading
PAYGO.
And the majority, despite its stated concerns about tax earmarks,
seems to have a massive one in here of a $500 million tax credit bond
program that appears to benefit one single landowner. A rifle shot.
The bill, as has been discussed in the past, creates tax credit bonds
that State and local governments can use with little accountability and
without any assurances that funded projects will reduce fossil fuel
consumption or greenhouse gas emissions.
On top of that, those tax credit bonds would be tradable, setting up
a market for tax credits very similar to something that Congress tried
back in 1981 and repealed the very next year because of the outcry of
the public.
Mr. Speaker, I don't expect this bill to make it through the process.
I don't think it will get through the Senate. If it were to, the
President would most certainly veto this bill, but maybe then we can go
back to the drawing board on a bipartisan basis to craft an energy bill
that actually produces energy and reduces costs and protects American
jobs. Until then, I urge my colleagues to defeat what is an ill-
conceived bill. We have wasted more energy today debating it than its
passage would possibly create.
Mr. Speaker, I ask unanimous consent that Mr. Barton be allowed to
resume allocation of time for the minority.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Louisiana?
There was no objection.
Mr. BOUCHER. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman
from Minnesota (Mr. Oberstar), the chairman of the Transportation
Committee.
Mr. OBERSTAR. I am here to address the contribution of the
Transportation and Infrastructure Committee to H.R. 6, the Energy
Independence and Security Act.
We begin with the Department of Energy, itself, by providing funding
to build a photovoltaic solar wall on the south wall of the Department
of Energy. It was built without windows or doors to accommodate a solar
application, but the funding was never provided over the last 12 years.
The project will pay for itself in less than 18 years and then begin
sending excess energy into the local power grid.
We continue with the U.S. Capitol. We require the Architect of the
Capitol to undertake feasibility studies on installing photovoltaic
roofs on two buildings, Rayburn and Hart, and also a feasibility study
to capture, store and use carbon dioxide from the Capitol power plant.
We spread these efforts further across the Nation by requiring the
General Services Administration to install energy-efficient and
renewable energy systems, including compact fluorescent bulbs and
photovoltaic systems on Federal office buildings and U.S. courthouses
across the country. We also prohibit the Coast Guard from using
incandescent light bulbs unless they determine they are necessary for
their mission.
The bill also establishes critical targets for GSA and other Federal
civilian agencies to cut energy use by 30 percent and fossil fuel use
65 percent within a decade. Within 25 years under provisions in this
bill, all fossil fuel use in Federal buildings will be eliminated.
Transportation. We authorize in law a Center for Climate Change and
Environment under the Department of Transportation, which has existed
by administrative action but has not been effective. It will be under
this legislation.
We increase the Federal share for congestion mitigation and air
quality improvement highway funds to 100 percent for incentives for
States to use funds to finance alternatives for people driving alone.
We authorize $40 million for short line and regional railroads to buy
green locomotives, $200 million for track improvements to encourage
movement of goods by rail, and a new short sea shipping program to move
goods by more efficient means. Short sea shipping is short-haul
movement of goods by water to avoid congestion areas. Widely used in
Europe, they have a vast network of short sea transportation routes.
The bill will promote use of such shipping opportunities on the Great
Lakes and on the saltwater coast of the United States, using the
Capital Construction Fund, building ships in the United States,
including in the State of Wisconsin, to build short sea shipping
vessels to avoid congestion in places like Chicago. We make a real,
solid contribution.
Mr. BARTON of Texas. I yield 1 minute to a distinguished member of
the Energy and Commerce Committee, Mr. Murphy of Pennsylvania.
Mr. TIM MURPHY of Pennsylvania. Mr. Speaker, over the next 40 years,
electricity demand in the United States will double. We have to
conserve. We have to make strides in efficiency and renewable energy,
but we can't depend on renewable power alone. It would take 3,000 huge
windmills or 11 square miles of solar collectors to equal the power
output of one modern coal plant.
Even if we quadrupled the share of renewable power by 2050, we will
still need coal for half of our electricity. To meet America's future
energy needs, we will probably need to build 800 new coal plants over
the next 40 years: 400 to replace the old, inefficient plants and 400
to meet the growth and demand. This translates to one coal plant every
2 to 3 weeks, even if we start in 2010.
Solving the problem will require clean coal technologies with zero
emissions, including greenhouse gases. Let's solve American's energy
problems by cleaning up America's abundant energy resources. This bill,
however, will tax America's abundant supplies of coal, and that just
doesn't make sense.
Mr. BOUCHER. Mr. Speaker, I recognize myself for 2 minutes.
Mr. Speaker, I just want to comment further on some of the very
positive things this legislation does in order to move forward national
energy policy.
This is truly a landmark achievement. The legislation that we have
before the House opens the door to an entirely new era in which we will
tap new forms of domestic energy resources and lessen this country's
reliance on energy imports.
The measure broadly incents the creation of new alternatives to
today's traditional energy resources: from consumer appliance
standards, which will be improved across a range of home appliances
through this measure, to energy-sensitive building codes; to the
capture of waste heat from industry that could produce the energy
necessary to generate fully 60 gigawatts of electricity with no
additional emissions of greenhouse gases; to the creation of a smart
electricity grid that will lead to the day when consumers of
electricity in their home can save money by consuming more electricity
[[Page H14431]]
during times of low demand when prices are lower; to a major increase
in automobile fuel efficiency, for which I want to commend the
gentleman from Michigan (Mr. Dingell) for the hard work that he and his
staff have put forth in coordination with the Speaker of the House in
order to achieve that landmark advance; to the evolution from gasoline-
powered to biofuel-powered cars, and to the day when our electrically
powered cars will predominate in the transportation fleet of this
country.
{time} 1400
In all of these ways, this bill makes a major advance in national
energy policy. It will make America more energy efficient and energy
independent.
With this bill, we also make an important down payment in addressing
the challenge of greenhouse gas emissions. And next year, beginning
with work in our House Energy and Commerce Committee, we will take
another landmark step in that direction as, in consultation with
external stakeholders, and on a bipartisan basis with our Republican
colleagues on the committee and in the House, we will structure a
mandatory approach to controlling greenhouse gas emissions in the
United States, an economy-wide program that will enjoy bipartisan
support and spread the burden of greenhouse gas emissions equally
across this economy. That approach begins in the year to come and will
make a further enormous contribution to controlling emissions.
Mr. Speaker, I reserve the balance of our time.
Mr. BARTON of Texas. Mr. Speaker, I want to yield 2 minutes to a
member of the Ways and Means Committee, Mr. Ryan of Wisconsin.
Mr. RYAN of Wisconsin. Mr. Speaker, I want to talk about one
particular provision in this bill which really puzzles me, and that is
the tax earmark that's in this bill. This bill creates forestry
conservation tax credit bonds. Sounds pretty innocent on its face. But
reading through the language, the provision has little to do with
forestry, and didn't appear to require the protection of a single tree.
Rather, it's nominally about protecting fish.
Specifically, to qualify for the tax credit bond program, the parcel
of land to be purchased must be adjacent to the Forest Service land;
have a portion of that land turned over to the U.S. Forest Service;
include at least 40,000 total acres, and must be subject to a ``native
fish habitat conservation plan approved by the United States Fish and
Wildlife Service.''
Well, according to the Fish and Wildlife Service, there is only one
piece of land in America that meets this description. It's a piece of
land in Montana owned by a timber giant, Plum Creek. And according to
press reports, they intend to sell it to the Nature Conservancy, which
can get the $500 million in bonds, who could give that $500 million,
buy it from Plum Creek, turn around and sell it to landowners, for all
we know. If this isn't a tax earmark, I don't know what is.
But the point is, this is a tax earmark. And why is it possible to
add this provision which is a tax earmark?
Well, the anti-earmark rules that we have here in the House only
apply to conference reports and bills.
What are we considering today? Technically, it's an amendment to the
Senate bill which was an amendment to the original House-passed bill.
So the earmark rules we have are thrown out the window. No earmark
rules apply here. That's how you can sneak this provision in, a $500
million tax earmark provision to go to one private landowner.
Again, we can't be exactly sure what the deal here is because the
bill just got released. We don't know who asked for this provision or
exactly how it will be used, but at the very least, serious questions
ought to be raised about such an expensive provision dropped into this
bill to benefit one particular landowner.
In addition to that, this bill may not technically violate PAYGO, but
it sure does violate the spirit of PAYGO. It uses timing shifts and
other budget gimmicks to violate PAYGO. For this and many other
reasons, I urge a ``no'' vote on this bill.
Mr. BOUCHER. Mr. Speaker, at this time I'm pleased to recognize for 2
minutes the distinguished chairwoman of the House Committee on Small
Business, the gentlelady from New York (Ms. Velazquez).
Ms. VELAZQUEZ. Mr. Speaker, I rise today to support this historical
energy legislation now before us. This legislation moves us toward
energy independence and meets the needs of this Nation's entrepreneurs.
Small businesses are not just the most impacted by high energy costs,
but small businesses are also leaders in domestic protection of energy.
They make up 80 percent of all renewable fuels producers in this
country. This legislation makes them part of the solution. It does this
by developing innovative new technologies, reduces carbon emission,
increases clean renewable energy production, and modernizes our energy
infrastructure. Much of this was accomplished under the leadership of
Congressman Heath Shuler, whose legislation, the Small Business Energy
Efficiency Act, is contained in this bill. It's initiatives provide
entrepreneurs with increased access to financing and technical
assistance to improve their energy efficiency. It also establishes the
Renewable Fuels Capital Investment Company Program that will provide
capital for small businesses involved in the production of renewable
energy.
Mr. Speaker, as Chair of the Small Business Committee, we held over
50 hearings. We have been in every part of this country. And when small
businesses talk to us, before they even talk to health care, and not
even taxes, they tell us that we've got to do something about energy
costs.
This bill is good for consumers, good for the environment; it's good
for the small businesses; and, most of all, it's good for our economy.
Vote ``yes'' on this bill.
Mr. BARTON of Texas. Mr. Speaker, I want to yield 1\1/2\ minutes to
the distinguished member of the committee from the great State of
Illinois (Mr. Shimkus).
(Mr. SHIMKUS asked and was given permission to revise and extend his
remarks.)
Mr. SHIMKUS. Mr. Speaker, I'm sorry that we're on the floor here
today. This year I've yelled on this floor. I've cried on this floor.
I've stormed off this floor. So today I decided to be the still, small
voice in support of coal, in support of the internal combustion engine,
and in support of national security.
Illinois alone is the Saudi Arabia of coal. If you want to decrease
our reliance on imported crude oil, coal has to be in an energy bill.
It just has to. And to deny that is a failure on public policy
ramifications.
I here hold in my hand an internal combustion engine, much maligned
on the floor and in the world today. It's 1.5 horsepower. It's lighter
and it's easier to carry than 1\1/2\ horses. And we have to imagine the
benefits to this world that the internal combustion engine has caused,
how it's uplifted the poor and the downtrodden. But this bill attacks
the internal combustion engine.
And on national security, coal-to-liquid fuel and natural gas, the
evidence is clear: the Department of Defense wants to relieve itself of
reliance on imported crude oil. They are seeking support of coal-to-
liquid applications for jet fuel. The United States Air Force is the
number one consumer of aviation fuel. Our coal fields to our
refineries, to our pipelines, to our jet planes is the way in which we
can decrease our reliance on imported crude oil and protect our
national security interests. This bill does nothing in that respect.
Vote ``no.''
Mr. BOUCHER. Mr. Speaker, I recognize myself for 1 minute.
I can't let pass the suggestion that there is nothing in this
legislation that advances the interests of the domestic coal industry
in the United States. In fact, there are two very important provisions
that address the future needs for coal. The first of these will
stimulate the development of carbon dioxide pipelines that will enable
carbon dioxide to be transported across long distances from the place
where carbon dioxide is separated out of the coal combustion process to
the place where it's injected for permanent storage.
And, secondly, there is an investment tax credit totaling $1.5
billion that is available for companies that will take the step to
develop those carbon separation and sequestration technologies. And
carbon separation and sequestration truly is the future of coal. In a
[[Page H14432]]
carbon constrained environment, it's critically important that coal-
fired utilities be able to continue to use that fuel and to do so
consistently with whatever the limits on carbon dioxide emissions are.
The ability to separate carbon dioxide out of the combustion process
and transport it to permanent storage in the ground is the answer that
we'll be relying on in future years. This bill helps to make that
possible.
Mr. BARTON of Texas. Mr. Speaker, I would like to recognize for 1
minute the gentlelady from the Mountain State of West Virginia (Mrs.
Capito).
Mrs. CAPITO. Mr. Speaker, I rise today in strong opposition to this
no-energy energy bill. We're all for innovation and research for future
energy resources, including renewables; but the standard in this bill
is a one-size-fits-all mandate that ignores available energy resources
and economic needs of individual States.
A mandatory renewable energy standard, such as in this bill, picks
winners and losers. It excludes nuclear, hydroelectric and clean coal.
Technology is giving us ways to use coal more cleanly and efficiently.
We just heard coal sequestration mentioned, but where is coal
liquification? It is a proven viable fuel for the decades to come.
Despite tremendous promise of this and other technologies, this no-
energy bill excludes our most abundant domestic resource, coal, from
our future energy strategy.
A federally mandated renewable electric standard will raise electric
prices for all consumers. Think of that senior citizen on a fixed
income trying to bear the burden of the new rising energy costs
contained in this bill.
The cost of energy impacts every job, every family in West Virginia.
The rising cost of gasoline is consuming a greater portion of our
family budget. This bill is not the answer.
Mr. BOUCHER. Mr. Speaker, at this time I am pleased to yield 2
minutes to the distinguished gentleman from Illinois (Mr. Emanuel).
Mr. EMANUEL. Mr. Speaker, in less than 12 months this Congress will
do what previous Congresses have failed to do for 32 years. Today,
after 32 years of failure, we can take America's energy policy in a new
direction. And that failure was through Democratic Congresses and
Republican Congresses alike.
Today this House has the opportunity to pass modern energy
legislation that will accomplish a hat trick. It will make our vehicles
more fuel efficient, help limit our dependence on foreign oil, and
protect our environment, all in one act.
The new fuel efficiency standards will save the American family up to
$1,000 a year for gas at the pump.
More importantly, this bill offers us an opportunity to look to the
future and prepare for it. Make change an ally, rather than an
adversary.
Each and every one of us knows, Democrat and Republican alike, that
our Nation consumes too much energy. We know that we are dangerously
dependent on an unstable region of the world and we know that this
isn't news to anybody here, and we have recognized these facts for
years. But when faced with this problem, we, as a country, have turned
our back on that problem, hoping it will go away. This legislation
allows us to face those challenges head on and prepare for America's
future.
Mr. Speaker, the problem will not go a way, and today we have a
chance to confront it when faced with the facts and vote to make our
Nation more secure, reduce oil consumption, and finally plan for a more
energy-independent future.
We can bury our heads in the sand and hope the problem disappears, or
we can take action today and prepare for the future and make the
challenges of America's future an opportunity for industry, for new
jobs, for new businesses and, most importantly, for foreign policy and
national security policy that is less dependent on an unstable part of
the world.
I am proud that today we are taking action that for 32 years past
Congresses failed to meet and challenge. By finally having the fuel
efficiency standards that are modern and look to the future, America is
taking a step that's important for its security. We will do in 12
months what has failed to have been done for 32 years.
Mr. BARTON of Texas. Mr. Speaker, I would like to yield 1 minute to a
member of the Energy and Commerce Committee, Mr. Radanovich of
California.
Mr. RADANOVICH. Mr. Speaker, we could spend all day talking about the
shortcomings and faults of this legislation, not to mention the process
under which it came to the floor. However, the most glaring and ironic
dominance from this energy bill is the lack of production of energy.
What we need to be discussing is a sound and realistic energy policy
that is going to help America become energy independent. This means
increasing domestic energy production by expanding oil and gas
exploration on the Outer Continental Shelf at Alaska, not taxing oil
companies $20 billion simply because they're in business. We need to
increase research and provide incentives for oil, shale, and coal-to-
liquid technologies. Coal is one of the country's most abundant natural
resources, and recent estimates of oil shale in Colorado, Wyoming, and
Utah could provide us with over 800 billion barrels of recoverable oil.
What about refining capacities? We have not built a refinery in this
country in over 30 years, and our current refineries are operating near
maximum capacity.
The bottom line is this legislation falls short of what the American
people expect of our leaders in Washington. This Congress has a
responsibility to do better. I urge a ``no'' vote.
Mr. BOUCHER. Mr. Speaker, at this time, I am pleased to yield 2
minutes to the distinguished gentleman from Maryland (Mr. Van Hollen).
{time} 1415
Mr. VAN HOLLEN. Mr. Speaker, this bill charts an ambitious, necessary
and long-overdue new direction for energy policy in the United States.
After more than three decades, we increase fuel economy standards for
cars and trucks, a commonsense step that will save $1,000 for American
families at the pump, that will reduce greenhouse gas emissions by the
equivalent of taking 28 million cars off the road, and by reducing our
oil consumption by half, half, of what we import from the Persian Gulf.
We have made in this bill an historical commitment to homegrown
biofuels by boosting the renewable energy standards. We are enlisting
America's families and farmers to build a sustainable clean energy
future and have done so in a way that also protects our environment,
like the Chesapeake Bay watershed.
To unleash the economic environmental benefits of our rapidly growing
renewable energy industries, we include a strong renewable electricity
portfolio standard that will reduce greenhouse gases and save consumers
money.
We also include a fully paid-for $21 billion incentive package that
redirects $13 billion in antiquated subsidies to our already profitable
oil industry toward clean, green technologies.
To those who are thinking about voting against this bill, I would ask
what kind of signal does that send to America? That the Congress thinks
it's more important to continue yesterday's billion dollars of
subsidies and giveaways to the oil and gas industry rather than invest
in clean technologies? That we should wait another 30 years before
making commonsense improvements in our fuel economy standards? That we
should sit idly by while our national security is increasingly
undermined by our addiction to foreign oil? Is that the message you
want to send to America?
Refusing to act now would be irresponsible. Moreover, failing to see
the opportunities that this bill brings and the challenges we face is
contrary to the can-do American spirit that has propelled our Nation
from the beginning.
Let's build a better tomorrow. Let's start with this bill and a new
energy policy.
Mr. BARTON of Texas. Mr. Speaker, I yield myself 2\1/2\ minutes.
Mr. Speaker, we have before us a bill that has not gone through the
regular process in the House of Representatives. That almost goes
without saying. This is not a conference report. It is the result of
some negotiations primarily between select Members of the majority here
in the House and the majority in the Senate. It does put this Nation on
a different path. It puts us
[[Page H14433]]
on a path of moving away from market-based, free capital energy
production to government mandates. Now, that may be what the majority
of the House of Representatives wants to do, but I don't think it is
what the American people want to do.
We have a 36 billion biofuels mandate with submandates for separate
categories of biofuels that under current technology simply doesn't
exist, can't be met. We already have an ethanol mandate from the Energy
Policy Act of 2005 that has exceeded its wildest expectation in terms
of spurring incentives for ethanol. In fact, it's been so successful,
the price of corn has doubled and cattle producers and chicken
producers, hog farmers are having trouble buying feed for their animals
because of the increase in the price of corn.
We have a mandate in this bill for Federal energy efficiency building
code standards with the goal by a date certain of having most buildings
in the United States on a net basis not using any energy at all. There
doesn't appear to be a cost-effective benefit analysis requirement in
that particular mandate.
As I have already said, we have the mandate to increase fuel
efficiency for our cars and trucks to 35 miles a gallon by the year
2020. It does maintain a separate standard for trucks and cars. We need
to thank Chairman Dingell for making that happen in negotiations with
the Senate. But this mandate is technically possible to meet. Keep in
mind that under current regulations there are only eight cars and
trucks in the United States that meet 35 miles to the gallon. We are
certainly going to raise the price of cars and trucks and probably
reduce the amount of jobs in this country that are effective in the
automobile assembly and manufacture and their vendor components
industry. We have appliance standards.
I could go on and on, Mr. Speaker. Suffice it to say I don't think
the country wants the government controlling energy, and that's what
this bill leads us to. I hope we would vote against it.
Mr. BOUCHER. Mr. Speaker, at this time I am pleased to yield 2
minutes to the gentleman from New York (Mr. Hinchey).
Mr. HINCHEY. Mr. Speaker, first of all, I would like to express my
deep appreciation and gratitude to the Speaker of the House of
Representatives, Nancy Pelosi; and to Chairman John Dingell for
bringing to the floor of this House of Representatives the most
productive and forward-looking piece of energy legislation that we have
seen in this Congress now in 30 years.
We are increasingly dependent upon energy from outside of America. In
our country, we possess less than 3 percent of the known oil reserves
around the world; yet on a daily basis, day after day, year after year,
we are using 25 percent of that which is used, and that number is
increasing. As a consequence of all of that, the price of energy has
gone up to heat American homes, making it more and more difficult for
the economic circumstances of families all across America and for
transportation.
Over the course of the last 7 years, the price of gasoline has
increased by more than four times. It has more than quadrupled over the
course of the last 4 years. And a lot of that has to do with the energy
legislation that has been produced by the minority party over the
course of that time in connection with the White House.
This legislation begins to alter all of that. It begins to move us to
a point where we can begin to be more energy independent by focusing
our attention and our resources on renewable, alternative forms of
energy, particularly solar energy.
It's interesting that Thomas Edison, one of the first energy
producers in our country, made the observation that solar energy is the
most productive, the most sustainable, and the one that we are going to
have to depend on. And he said that an awfully long time ago. It ought
to be clear to us now--he was right then, he is more right now.
And that's what this legislation does. It moves us toward energy
independence. It allows people and corporations to produce energy
through alternative means, particularly solar. That, in and of itself,
is going to mean a huge economic improvement for our country and the
production of hundreds of thousands of jobs.
Let's all pass this legislation. It is very much needed.
Mr. BARTON of Texas. Mr. Speaker, I believe I have 4 minutes
remaining, 1 of which will be used by the minority leader to close. My
other speaker, Mr. Blunt, is not on the floor, so I would reserve the
balance of my time.
Mr. BOUCHER. Mr. Speaker, I would say to the gentleman from Texas
that on our side, we only have one speaker remaining and then a speaker
who will close. And so hopefully your speaker before your closer will
appear.
Mr. BARTON of Texas. Mr. Speaker, in the interest of comity, the
Republican whip is not on the floor, so I yield myself 3 minutes.
Mr. Speaker, I want to talk about the renewable portfolio standard
that is in the bill. This would require investor-owned utilities in the
country to generate 15 percent of their electricity by renewable means
by a date certain. And there was a phase-in so that beginning, I
believe, in 2010 or 2011 there is a cascade stair step that each year
they have to meet a higher percentage. Information that we have
received from the Department of Energy indicates that of the 50 States,
there are only seven that currently meet that requirement. Those are
Alaska, Maine, Montana, Nebraska, Oregon, Tennessee, Washington,
Vermont, and California. There is another handful of States that come
close: North Dakota, New Hampshire, Wyoming, New Mexico, Idaho, South
Dakota, Alabama, and Iowa all meet within 10 percent to 8 percent. The
rest of the States, which is approximately 40 States, don't even come
close, and some of them, like Delaware and Missouri, are at 0 percent.
So you would think that a 15 percent requirement might be doable. The
problem is definitional, what is defined as ``renewable.'' New hydro is
not defined as renewable. New nuclear is not defined as renewable. New
clean coal technology is not defined as a renewable. So it has to be
from geothermal, wind power, solar power, or biomass or hydro
refitting. Now, when you look at it in that regard, this 15 percent
requirement in certain parts of the country is almost impossible to
meet.
To compound the problem, the legislation before us says that States
that don't meet the requirement can't go out; they can only buy credits
to offset that requirement. I believe it says up to 27 percent of their
amount that they have to meet. So you are going to put a State like
Florida, a State like Georgia, some of the States that are at the lower
end of the curve, Arizona, Indiana, Ohio, West Virginia, Illinois,
Utah, Maryland, New Jersey, Kentucky, Pennsylvania, Rhode Island, these
States are all somewhere between 0 to 2 percent. They're simply not
going to be able to do it. They are not going to be able to do it.
So while a renewable portfolio standard for electricity generation
might seem like it's a wise idea in principle, when you put it into
actuality, it is going to be almost an impossible idea to meet. And
this bill says ``tough.'' So I would hope that we vote ``no'' on the
bill.
Since January the process for energy legislation has been a disgrace.
H.R. 6 was never considered by any Committees, no hearings no mark-ups.
H.R. 3221, a second try at an energy bill, was also bad. Only hours
notice of the bill before mark-up; limited floor amendments; many bad
provisions never considered in hearings; final passage on a Saturday
with many members absent.
The process since then has been far worse. I am aware of no Member
discussions since August 4. If they have taken place no Member on my
side of the aisle was invited or informed. The result: the terrible
legislation before us today.
The Pelosi ``energy bill'' consciously raises consumer costs for
fuel, vehicles, and electricity while reducing consumer choices. It
favors a few special interest investors at the expense of ordinary
Americans and the U.S. economy.
On CAFE: The bill raises fuel efficiency standards so high that
consumers will face only three possible consequences: far smaller cars
and trucks, far more expensive cars and trucks, or--more likely--both.
I'm told that all but 8 out of some 350 models currently available in
American showrooms would be banned from the market as the new fuel
standards fully phase in. Moderate income consumers will be hardest
hit. They don't buy hybrids today because the multi-thousand dollar
premium for electric hybrid technology cannot pay for itself in fuel
savings, even at today's sky-high fuel costs.
Because consumers will prefer their older vehicles that match their
needs better than the
[[Page H14434]]
new car inventory, they will postpone trading in as long as possible.
New car sales will plummet; manufacturing companies and their employees
will suffer. The ones who won't agree are simply in denial.
On renewable fuel mandates: The levels of corn-based and other
biofuels required to be part of the U.S. fuel mix will drive up all
fuel costs dramatically, even over today's high prices. Diverting corn
from food and feed use to fuel has already cost consumers plenty in
rising chicken, turkey, beef, and soft drink prices. This bill will
only make that problem worse.
It also mandates advanced biofuels that exist today only in
laboratories and which may never be commercially available. It's like
passing a law mandating that a horse not even born yet grow up to win
the Kentucky Derby. The only way to do that is to bar other horses from
the competition, as this bill does.
On the Renewable Electricity Mandate: The bill would require electric
companies across the United States (except in Hawaii and Alaska--they
have special carve-outs) to generate 15 percent of their power from
``renewable energy.''
States that have the natural renewable resource base needed to meet
such mandates already have them under state law. Remaining States that
cannot meet the standard will have to buy their way out at consumer
expense, as the bill provides.
While the bill has some non-controversial energy efficiency
provisions some sections are particularly harmful to consumers and
small businesses.
A section on regional standards for HVAC equipment would authorize
DOE to create a program that could lead to penalties and lawsuits aimed
at the small businesses in every Congressional district that install
and repair our air conditioners and heat pumps.
The punishment would likely kick in if the repairman installs, the
wrong air conditioner, e.g., a Georgia-rated air conditioner on the
wrong side of the Florida state line. It would dictate efficiency
levels by state or region without regard to price, size, or even energy
savings payback.
Another provision gives DOE authority to dictate energy efficiency
standards for manufactured housing. HUD already has a successful
program that is improving efficiency while keeping manufactured housing
affordable.
DOE's ``price-is-no-object'' track record on energy efficiency could
mean that manufactured housing will no longer be affordable for the
moderate income Americans who rely on it today. And jobs will be lost.
Bad as the bill was that passed the House on August 4, this one is
far worse. Vote ``no'', do not be tempted.
Mr. BOUCHER. Mr. Speaker, I yield myself 1 minute.
On the subject of the renewable portfolio standard, the gentleman
from Texas and I are actually in bipartisan agreement. And while I
strongly support the legislation before us and have urged and will urge
the House to pass this bill because of the many improvements that it
makes in national energy policy, I share the gentleman from Texas's
concern about the renewable portfolio requirement.
The fact is that there are places in the United States where the
renewable resources are simply not found in sufficient quantity to meet
that requirement. In the southeastern U.S., for example, there is a
deficiency of both wind and solar potential, and these are the two
renewable resources that are most prominently used across the United
States.
The requirement that is before the House in this bill, frankly, is
not broad enough in terms of the list of fuels that it makes eligible
to meet the mandate. And there are States such as Pennsylvania that
have made eligible a far broader range of fuels.
So this provision really does need more work, and it would be my
preference that it's not here. But notwithstanding its presence, this
is good legislation and the House should approve it.
Mr. Speaker, I reserve the balance of my time.
____________________