[Congressional Record (Bound Edition), Volume 153 (2007), Part 12]
[Senate]
[Pages 17365-17412]
[From the U.S. Government Publishing Office, www.gpo.gov]




   CREATING LONG-TERM ENERGY ALTERNATIVES FOR THE NATION ACT OF 2007

  On Thursday, June 21, 2007, the Senate passed H.R. 6, as amended, as 
follows:

                                 H.R. 6

       Resolved, That the bill from the House of Representatives 
     (H.R. 6) entitled ``An Act 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.'', do pass 
     with the following 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.
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.

[[Page 17366]]

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 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''.

[[Page 17367]]



     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 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--

[[Page 17368]]

       (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

[[Page 17369]]

       (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
       (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

[[Page 17370]]

     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.--
       (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.

[[Page 17371]]



     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.

     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;

[[Page 17372]]

       (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 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

[[Page 17373]]

     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--
       (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 supersedes or otherwise affects any Federal or 
     State requirement under any other provision of law that is 
     more stringent than any requirement of this title.''.

[[Page 17374]]



                 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
       ``(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

[[Page 17375]]

     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 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

[[Page 17376]]

       (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.
       ``(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--

[[Page 17377]]

       ``(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), 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

[[Page 17378]]

     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        Design
          Boiler Type           Utilization Efficiency    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) 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
       (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

[[Page 17379]]

       ``(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;
       (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

[[Page 17380]]

     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 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;

[[Page 17381]]

       (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
       (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.--

[[Page 17382]]

       (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--
       (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

[[Page 17383]]

     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.--
       (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--

[[Page 17384]]

       (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
       (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

[[Page 17385]]

     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 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

[[Page 17386]]

     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--
       (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 

[[Page 17387]]

  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, 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

[[Page 17388]]

     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
       ``(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

[[Page 17389]]

     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'').
       (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

[[Page 17390]]

     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;
       ``(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

[[Page 17391]]

     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--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c), the following:

[[Page 17392]]

       ``(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;

[[Page 17393]]

       ``(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.

       ``(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--

[[Page 17394]]

       ``(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 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;

[[Page 17395]]

       ``(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 
     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

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       (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 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

[[Page 17397]]

       (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
       (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

[[Page 17398]]

       (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 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;

[[Page 17399]]

       (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
       (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

[[Page 17400]]

     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
       (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).

[[Page 17401]]



     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;
       (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

[[Page 17402]]

       (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:
       ``(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.

[[Page 17403]]

       ``(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 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--

[[Page 17404]]

       ``(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 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

[[Page 17405]]

     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--
       ``(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;

[[Page 17406]]

       (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
       (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--

[[Page 17407]]

       (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''.

     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,

[[Page 17408]]

     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 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

[[Page 17409]]

     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 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;

[[Page 17410]]

       (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 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

[[Page 17411]]

     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.

       (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.

[[Page 17412]]

       (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.''.

                          ____________________